EX-99.2 3 exh_992.txt EXHIBIT 99.2 ------------ AMLI RESIDENTIAL ------------------------------------------------------------ THIRD QUARTER 2005 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI Memorial Heights - Houston, Texas Acquired Third Quarter 2005" ] 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, 2004. 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 Third Quarter 2005 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPANY DESCRIPTION INVESTOR INFORMATION AMLI Residential (or AMLI) is an integrated, self-managed real estate operating company that was formed in February 1994 to continue and expand the multifamily property business previously conducted by AMLI Realty Co., our predecessor company, which has been in business since 1980. AMLI is structured as an UPREIT, or umbrella partnership real estate investment trust, and we own interests in properties and conduct our business through AMLI Residential Properties, L.P., (the Operating Partnership or OP). The sole general partner of the OP is AMLI Residential Properties Trust, the public company whose shares of beneficial interest are traded on the NYSE under the symbol "AML." Our business is the development, acquisition and management of upscale apartment communities in the Southeast, Southwest, Midwest and Mountain regions of the United States. We also serve as an institutional advisor and asset manager for domestic and international, tax-exempt and taxable investors in connection with our joint venture co-investment business. A summary schedule of our investment communities is included in this Supplement. We operate all of our communities under the AMLI [registered trademark] brand name, representing our commitment to high quality, exceptional service and superior value. We have corporate offices in Atlanta, Dallas, Indianapolis and Kansas City, in addition to our main office in Chicago. We employ approximately 850 people who are dedicated to our mission ... To Provide an Outstanding Living Environment For Our Residents. For additional information on AMLI, please visit our website at www.amli.com. The following information is presented as a supplement to our other public reporting, including our Form 10-Q and Form 10-K, both of which can be found on our website or through the SEC's EDGAR database. We hope that the information contained herein is helpful to you. We encourage your feedback and any suggestions, which you believe will help us provide better disclosure to you. Please contact either of: Robert Chapman Executive Vice President & CFO 312.984.6845 rchapman@amli.com Sue Bersh Vice President - Corporate Communications 312.984.2607 sbersh@amli.com Thank you for your interest in AMLI Residential. AML LISTED NYSE Third Quarter 2005 Page 1 Supplemental Information AMLI Residential Properties Trust AMLI 125 South Wacker Drive RESIDENTIAL Chicago, Illinois 60606 Phone: 312.443.1477 Fax: 312.443.0909 www.amli.com PRESS RELEASE FOR IMMEDIATE RELEASE --------------------- October 25, 2005 For More Information, Contact: Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES THIRD QUARTER OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the third quarter ended September 30, 2005. EARNINGS -------- Net income for the quarter and nine months ended September 30, 2005 was $44,136,000 and $75,757,000, respectively, as compared to $12,234,000 and $61,257,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended September 30, 2005 was $1.48 compared to $0.41 for the same period a year earlier, an increase of 261%. For the nine months ended September 30, 2005, EPS was $2.52 compared to $2.13 for the comparable period of 2004. The difference in net income between the current quarter and the third quarter last year and net income for the nine months ended September 30, 2005 versus the comparable period in 2004 is primarily attributable to the differences in the amount of aggregate gains recognized from a combination of sales of rental properties, net of minority interest, sales of partnership interests in existing wholly-owned communities and AMLI's share of gains on sales of partnership properties. Such amounts were $41,900,000 and $73,934,000 for the three and nine months ended September 30, 2005, respectively, and $11,318,000 and $51,282,000 for the three and nine months ended September 30, 2004, respectively. FUNDS FROM OPERATIONS ("FFO") for the third quarter 2005 were $16,042,000, or $0.51 per common share, compared to $13,576,000, or $0.44 per common share, for the third quarter 2004 (a per share increase of 15.9%). Actual results for the third quarter were consistent with both the mid-point of AMLI's most current guidance and First Call's most recent estimate. "The results of the quarter were significantly better than a year ago, reflecting continuing improvement in community operations, full investment of the proceeds of our common share offering in March 2004 and positive contributions from transactional activity," stated Robert J. Chapman, AMLI Chief Financial Officer. "Same community total revenues continue to increase year over year and sequentially over the prior quarter. The increase in third quarter community operating expenses compared to last year is not representative of a full year run rate, and we still expect community revenue, operating expenses and NOI for the full year 2005 to be within the range of our guidance." THIRD QUARTER ACTIVITIES ------------------------ During the third quarter, AMLI purchased AMLI Memorial Heights (380 apartments) in Houston, Texas and sold AMLI at Poplar Creek (196 apartments) in Schaumburg, Illinois. AMLI also completed the initial lease- up and stabilization of AMLI Downtown (220 apartments, retail and parking) in Austin, Texas and closed on a $25 million first mortgage permanent loan secured only by the residential portion. AMLI owns a 30% interest in AMLI Downtown. Third Quarter 2005 Page 2 Supplemental Information AMLI Residential Properties Trust Additionally AMLI entered into three joint ventures during the quarter. In two transactions AMLI sold a 60% partnership interest in AMLI at Riverbend (996 apartments) in Indianapolis, Indiana and an 80% partnership interest in AMLI at Oakhurst North (464 apartments) in Aurora (Chicago), Illinois, both stabilized, previously wholly-owned apartment communities, to a client of The Tuckerman Group LLC. In addition to retaining an ownership in both communities, AMLI was paid certain fees upon closing of the joint ventures. In the third transaction, AMLI entered into a joint venture with The Northwestern Mutual Life Insurance Company ("Northwestern Mutual") to develop and own AMLI Perimeter Gardens (245 apartments) in the Dunwoody neighborhood of northeast Atlanta, Georgia. The joint venture is structured such that cash flow and sales proceeds will be shared 75% to Northwestern Mutual and 25% to AMLI Residential until certain benchmarks are achieved, at which point AMLI will receive an increased portion of the cash flow and residual interest. Early in the quarter, AMLI modified the terms of the Company's three unsecured bank credit facilities, including its two revolving lines of credit and its $110 million term loan. The commitment amounts under the primary and secondary lines of credit were increased to $250 million and $20 million, respectively, and the maturity dates were reset to three years from closing. The pricing and certain covenants under all three facilities were also amended. SAME COMMUNITY RESULTS ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%), for the quarter ended September 30, 2005 versus the prior year's comparable quarter, total community revenue increased 1.6% (reflecting an increase in weighted average occupancy to 94.9% from 93.9% and an increase in weighted average collected revenue per occupied unit of 0.5%), operating expenses increased by 4.6% (partially reflecting quarterly timing differences), and net operating income ("NOI") decreased by 0.5%. Comparing the third quarter of 2005 to the preceding quarter, total community revenue increased by 1.9% (reflecting an increase in weighted average occupancy of 1.3% and an increase in weighted average collected revenue per occupied unit of 0.4%), operating expenses increased 5.3% (reflecting some seasonality), and NOI decreased 0.6%. SUBSEQUENT EVENTS ----------------- Yesterday, AMLI and Morgan Stanley Real Estate's Prime Property Fund (PRIME) announced that PRIME entered into a definitive agreement to acquire AMLI in an all-cash transaction totaling approximately $2.1 billion. Under the terms of the agreement PRIME will acquire all of AMLI's common shares for $37.75 per share in cash. Holders of limited partnership units in AMLI's operating partnership will also receive $37.75 per unit in cash. AMLI will continue to pay regular quarterly distributions at an annualized rate of $1.92 per share and per unit through the closing of the transaction. Completion of the transaction, which is expected to occur during the first quarter of 2006, is subject to approval by AMLI's common shareholders and certain other customary closing conditions. OUTLOOK ------- AMLI's current expectation for FFO for the fourth quarter and full year 2005 is now plus or minus $0.02 from the midpoints of $0.69 per share and $2.15 per share, reflecting an approximately $0.20 per share contribution from the potential disposition of a community built for sale by one of the Company's subsidiaries that had previously been assumed to occur in 2006. Third Quarter 2005 Page 3 Supplemental Information AMLI Residential Properties Trust The following chart reconciles AMLI's current FFO per share guidance to EPS: Actual Actual Actual Full Q1 Q2 Q3 Q4 Year ------- ------- ------- ------- ------- EPS per Common Share $ 0.76 $ 0.28 $ 1.48 $ 0.34 $ 2.85 Gains on Sales ($ 0.85) ($ 0.35) ($ 1.47) ($ 0.30) ($ 2.96) Depreciation $ 0.45 $ 0.45 $ 0.43 $ 0.40 $ 1.73 Adjustment for Preferred Shares $ 0.07 $ 0.14 $ 0.07 $ 0.25 $ 0.53 FFO per Share $ 0.43 $ 0.52 $ 0.51 $ 0.69 $ 2.15 DIVIDEND -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on November 15, 2005 to all common shareholders of record as of November 4, 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, October 26, 2005 at 3:30 p.m. Eastern Time. The toll-free number for the call is (800) 946-0706 - Passcode: 994697, and should be accessed approximately 5 minutes prior to conference time. A live webcast of the conference call will also be available in the 'Company Info' section on AMLI's website (www.amli.com/comp/) and at www.streetevents.com, a password-protected event management site. Additionally, an on-line replay of the webcast will be available for 60 days following the call. SUPPLEMENTAL INFORMATION ------------------------ AMLI produces Quarterly Supplemental Information that provides detailed information regarding the Company's activities during the quarter. The Third Quarter Supplemental Information is available in the 'Company Info' section on our website (www.amli.com/comp/) under 'Shareholder Reports.' DEFINITIONS ----------- This press release and the Quarterly Supplemental Information described above contain certain non-GAAP ("Generally Accepted Accounting Principles") information that is generally provided by most publicly-traded residential REITs. AMLI uses this information internally to measure its performance and/or liquidity and to compare its performance to other REITs in its peer group, and believes that this information may be of interest and use to the investment community for the same reason. Except where indicated, community revenue, community expenses, net operating income ("NOI") and earnings before interest, taxes, depreciation and amortization ("EBITDA") are computed based on various line items included in our consolidated statements of income prepared in accordance with GAAP. Where indicated, this information is presented on a basis that includes AMLI's proportionate share of the non-GAAP financial measures of its co-investment partnerships. Reconciliations of all non-GAAP financial measures to GAAP financial measures are included in the Company's Quarterly Supplemental Financial information, primarily pages 18 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 administration expense. Third Quarter 2005 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 (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." Additional definitions can be found in the Quarterly Supplemental Information. ABOUT AMLI ---------- The AMLI portfolio currently includes 75 apartment communities containing 28,356 apartment homes, with an additional 827 apartment homes under development or in lease-up in three locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain regions of the U.S. AMLI Residential also serves as institutional advisor and asset manager for large pension funds, tax-exempt foundations and other financial institutions through AMLI's co-investment business. AMLI employs approximately 850 people who are dedicated to achieving AMLI's mission -- Provide An Outstanding Living Environment For Our Residents. More information on AMLI is available at www.amli.com. FORWARD-LOOKING STATEMENTS -------------------------- Certain matters discussed in this press release are forward-looking statements within the meaning of Federal Securities Law. Although the Company believes expectations reflected in such forward looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking statements can be identified by the Company's use of the words "project," "believe," "expect," "anticipate," "intend," "estimate," "assume," and other similar expressions that predict or indicate future events, achievements or trends or that do not relate to historical matters. The Company does not assure the future results or outcome of the matters described in forward-looking statements; rather, these statements merely reflect the Company's current expectations of the approximate outcomes of the matters discussed. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control. The reader is cautioned to make his/her own judgment with regard to the statements discussed in this press release and the assumption noted by the Company herein. The Company is making forward-looking statements because it believes investors, analysts and others, many of whom prepare models and projections of the Company's performance, are interested in the Company's current estimates of its future activities. The Company advises such parties to make their own determination of any relevant or material assumption used by them. Many factors may cause the Company's actual performance in any period or periods to differ materially from the anticipated future performance expressed or implied by these forward-looking statements. Certain of the factors that could cause the Company's actual performance to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, general economic conditions, local real estate conditions, the timely development and lease-up of communities, other risks detailed from time to time in the Company's SEC reports, including the annual report on form 10-K for the year ended December 31, 2004. # # # # Third Quarter 2005 Page 5 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION QUARTER ENDED Unaudited (Dollars in thousands, except for share data)
2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EARNINGS AND CASH FLOWS ----------------------- EBITDA (a) . . . . . .$ 87,895 30,251 31,340 26,304 109,978 27,360 25,472 30,092 27,054 FFO. . . . . . . . . . 45,506 16,042 16,186 13,278 60,646 14,295 13,576 17,097 15,678 AFFO . . . . . . . . . 40,853 14,382 14,447 12,024 54,343 12,234 11,853 15,670 14,586 Net income . . . . . . 75,757 44,136 9,210 22,411 62,425 1,168 12,234 42,304 6,719 Dividends (b). . . . . 44,792 14,939 14,927 14,926 57,747 14,909 14,880 14,846 13,112 PER SHARE DATA - DILUTED ---------------- FFO. . . . . . . . . .$ 1.46 $ 0.51 $ 0.52 $ 0.43 $ 2.01 $ 0.46 $ 0.44 $ 0.55 $ 0.56 AFFO . . . . . . . . .$ 1.31 $ 0.46 $ 0.46 $ 0.39 $ 1.80 $ 0.39 $ 0.38 $ 0.51 $ 0.52 Net income allocable to common shares . .$ 2.52 $ 1.48 $ 0.28 $ 0.76 $ 2.08 $ (0.03) $ 0.41 $ 1.45 $ 0.21 Common dividends . . .$ 1.44 $ 0.48 $ 0.48 $ 0.48 $ 1.92 $ 0.48 $ 0.48 $ 0.48 $ 0.48 FFO payout ratio (based on per share amounts) . . . . . . 99% 94% 93% 113% 96% 105% 110% 87% 85% AFFO payout ratio (based on per share amounts) . . . . . . 110% 105% 104% 125% 107% 123% 126% 95% 92% Third Quarter 2005 Page 6 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NUMBER OF APARTMENT HOMES --------------- STABILIZED COMMUNITIES ---------------------- Wholly-owned . . . . . 14,824 14,824 16,100 16,316 15,990 15,990 15,276 15,068 15,240 Partnerships . . . . . 13,532 13,532 11,852 11,604 11,604 11,604 12,052 12,052 12,052 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 28,356 28,356 27,952 27,920 27,594 27,594 27,328 27,120 27,292 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES UNDER DEVELOPMENT AND/OR IN LEASE-UP ------------------- Wholly-owned . . . . . 288 288 533 360 820 820 820 820 782 Partnerships . . . . . 539 539 514 1,034 1,034 1,034 1,034 1,034 1,034 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 827 827 1,047 1,394 1,854 1,854 1,854 1,854 1,816 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . . 29,183 29,183 28,999 29,314 29,448 29,448 29,182 28,974 29,108 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== See notes on page 13. Third Quarter 2005 Page 7 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION QUARTER ENDED Unaudited (Dollars in thousands, except for share data)
2005 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- CAPITALIZATION -------------- TOTAL ASSETS BEFORE DEPRECIATION Consolidated (c) . . . . . . . . . . . . . . $ 1,478,247 1,478,247 1,510,319 1,511,238 DEBT Consolidated . . . . . . . . . . . . . . . . 614,838 614,838 682,618 688,235 SHARE INFORMATION Common shares outstanding. . . . . . . . . . 25,686,114 25,686,114 25,661,523 25,615,956 Preferred shares outstanding (d) . . . . . . 3,925,000 3,925,000 3,925,000 3,925,000 Operating partnership units outstanding (e) . . . . . . . . . . . . . . 1,633,415 1,633,415 1,637,465 1,638,295 ----------- ----------- ----------- ----------- ----------- Total shares and units outstanding . . . 31,244,529 31,244,529 31,223,988 31,179,251 ----------- ----------- ----------- ----------- ----------- Average Common Shares. . . . . . . . . . . . 25,442,312 25,460,400 25,440,759 25,425,391 Average Common and Preferred Shares and OP Units. . . . . . . . . . . . . . . . 31,004,930 31,021,971 31,002,676 30,989,790 ----------- ----------- ----------- ----------- ----------- Share price, end of period . . . . . . . . . $ 32.07 $ 32.07 $ 31.26 $ 27.39 EQUITY MARKET CAPITALIZATION . . . . . . . . 1,002,012 1,002,012 976,062 854,000 TOTAL MARKET CAPITALIZATION Consolidated . . . . . . . . . . . . . . . . 1,616,850 1,616,850 1,658,680 1,542,234 Third Quarter 2005 Page 8 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 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 1,285,142 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 Third Quarter 2005 Page 9 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2005 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (f) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . $ 28,378 9,846 9,621 8,911 CAPITALIZED INTEREST Consolidated . . . . . . . . . . . . . . . . 1,358 534 422 402 SCHEDULED PRINCIPAL PAYMENTS (NORMAL AMORTIZATION) Consolidated . . . . . . . . . . . . . . . . 5,391 1,934 1,812 1,645 Third Quarter 2005 Page 10 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2004 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (f) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . 32,546 8,713 7,701 8,875 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 See notes on page 13. Third Quarter 2005 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)
2005 2004 ------------------------------------------ ------------------------------------------ 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 . . . . . . 7.5% 7.6% 6.8% 6.6% 6.6% 8.7% 7.9% INTEREST COVERAGE Consolidated . . . . . . 3.2 3.4 3.1 3.3 3.4 4.1 3.9 FIXED CHARGE COVERAGE (g) Consolidated . . . . . . 2.3 2.4 2.2 2.3 2.3 2.9 2.7 FINANCIAL RATIOS ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated . . . . . . 38.0% 41.2% 44.6% 39.7% 37.1% 34.4% 36.2% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated . . . . . . 41.6% 45.2% 45.5% 44.4% 41.4% 37.1% 38.6% Third Quarter 2005 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 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. (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. Third Quarter 2005 Page 13 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL FUNDS FROM OPERATIONS QUARTER ENDED Unaudited (Dollars in thousands, except for share data)
2005 2004 -------------------------------------------- -------------------------------------------- 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). . . . . .$ 87,356 29,652 29,458 28,246 108,727 28,990 25,729 25,842 28,166 Share of Service Companies' EBITDA/ FFO (b). . . . . . . 2,926 114 3,254 (442) (202) 217 (96) (210) (113) Other income . . . . . 728 96 431 201 1,680 263 224 429 764 Co-investment fee income (c). . . . . . 1,829 1,227 342 260 1,824 331 636 424 433 General and administrative. . . . (6,074) (2,118) (1,995) (1,961) (7,301) (2,441) (871) (1,793) (2,196) Discontinued opera- tions - gain on sale of bond financing . . 1,280 1,280 -- -- 5,400 -- -- 5,400 -- Non-cash impairment loss. . . . . . . . . (150) -- (150) -- (150) -- (150) -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA). . . . . . . 87,895 30,251 31,340 26,304 109,978 27,360 25,472 30,092 27,054 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt. . . . (28,378) (9,846) (9,621) (8,911) (31,425) (8,713) (7,701) (7,754) (7,257) Prepayment penalty and write-off of unamortized deferred financing costs . . . -- -- -- -- (1,121) -- -- (1,121) -- Share of partnership communities . . . . . (12,010) (4,106) (3,976) (3,928) (15,338) (3,906) (3,859) (3,797) (3,776) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (40,388) (13,952) (13,597) (12,839) (47,884) (12,619) (11,560) (12,672) (11,033) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 14 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL FUNDS FROM OPERATIONS - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2005 2004 -------------------------------------------- -------------------------------------------- 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. . . . . . . . 504 514 (665) 655 1,782 246 520 522 494 Depreciation and amortization. . . . (2,505) (771) (892) (842) (3,230) (692) (856) (845) (837) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (2,001) (257) (1,557) (187) (1,448) (446) (336) (323) (343) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- FUNDS FROM OPERATIONS (FF0). . . 45,506 16,042 16,186 13,278 60,646 14,295 13,576 17,097 15,678 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CAPITAL EXPENDITURES PAID FROM FFO (e) Wholly-owned communities . . . . . (3,831) (1,390) (1,462) (979) (5,346) (1,821) (1,453) (1,168) (904) Share of partnership communities . . . . . (822) (270) (277) (275) (957) (240) (270) (259) (188) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (4,653) (1,660) (1,739) (1,254) (6,303) (2,061) (1,723) (1,427) (1,092) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . .$ 40,853 14,382 14,447 12,024 54,343 12,234 11,853 15,670 14,586 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) See pages 40 and 43. (b) See footnote (e) on page 47. (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. Third Quarter 2005 Page 15 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS QUARTER ENDED Unaudited (Dollars in thousands, except for share data)
2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- RENTAL OPERATIONS Revenue: Rental. . . . . . . .$107,257 37,973 35,722 33,562 113,462 31,912 29,067 27,417 25,066 Other . . . . . . . . 8,806 3,270 3,114 2,422 9,064 2,349 2,442 2,296 1,977 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 116,063 41,243 38,836 35,984 122,526 34,261 31,509 29,713 27,043 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Expenses: Rental. . . . . . . . 51,763 18,914 17,344 15,505 53,456 14,600 14,727 13,115 11,014 Depreciation. . . . . 33,091 11,104 11,006 10,981 35,325 9,998 9,257 8,502 7,568 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 84,854 30,018 28,350 26,486 88,781 24,598 23,984 21,617 18,582 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 31,209 11,225 10,486 9,498 33,745 9,663 7,525 8,096 8,461 Income from partnerships (b) . . 1,721 559 784 378 3,435 886 616 430 1,503 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from rental operations. . . . . . 32,930 11,784 11,270 9,876 37,180 10,549 8,141 8,526 9,964 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OTHER INCOME AND EXPENSES Fee income from unconsolidated partnerships . . . . 1,829 1,227 342 260 1,824 331 636 424 433 Other income. . . . . 728 96 431 201 1,378 263 207 429 479 Interest and amorti- zation of deferred financing costs. . . (28,166) (9,844) (9,507) (8,815) (30,042) (8,580) (7,638) (6,976) (6,848) Prepayment penalty and write-off of unamortized deferred financing costs. . . -- -- -- -- (1,121) -- -- (1,121) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (25,609) (8,521) (8,734) (8,354) (27,961) (7,986) (6,795) (7,244) (5,936) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 16 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SERVICE COMPANIES' OPERATIONS (c) Total revenue . . . . 11,485 3,612 2,504 5,369 45,738 9,052 11,585 11,867 13,234 Total expenses. . . . (13,309) (4,045) (3,168) (6,096) (47,636) (9,404) (12,123) (12,393) (13,716) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,824) (433) (664) (727) (1,898) (352) (538) (526) (482) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- General and administrative. . . . (6,074) (2,118) (1,995) (1,961) (7,301) (2,441) (871) (1,793) (2,196) Provision for loss on land held for development or sale . (150) -- (150) -- (150) -- (150) -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE GAINS ON SALES OF PROPERTIES . . . . (727) 712 (273) (1,166) (130) (230) (213) (1,037) 1,350 Gain on extinguish- ment of debt of a community trans- ferred to a part- nership . . . . . . . 383 383 -- -- -- -- -- -- -- Share of gains on sales of communities . . . . . 35,208 32,117 3,091 -- 2,648 -- -- -- 2,648 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE MINORITY INTEREST . . 34,864 33,212 2,818 (1,166) 2,518 (230) (213) (1,037) 3,998 Minority interest. . . 1,755 1,889 54 (188) (305) (133) (134) (188) 150 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS. . . . . . 33,109 31,323 2,764 (978) 2,823 (97) (79) (849) 3,848 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 17 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands, except for share data) 2005 2004 -------------------------------------------- -------------------------------------------- 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. . . . . . . 953 248 254 451 6,330 1,216 995 1,248 2,871 Gain on sale of rental communities, net of minority interest. . . . . . . 40,852 11,722 6,192 22,938 48,849 49 11,318 37,482 -- Gain on sale of bond financing for a community sold, net of minority interest. . . . . . . 843 843 -- -- 4,423 -- -- 4,423 -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 42,648 12,813 6,446 23,389 59,602 1,265 12,313 43,153 2,871 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . . 75,757 44,136 9,210 22,411 62,425 1,168 12,234 42,304 6,719 Net income attribu- table to preferred shares. . . . . . . . 10,908 5,937 1,933 3,038 11,542 1,933 1,933 5,744 1,932 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME ATTRIBU- TABLE TO COMMON SHARES. . . . . . . .$ 64,849 38,199 7,277 19,373 50,883 (765) 10,301 36,560 4,787 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) Includes other items of partnership operations such as interest income on invested funds, legal, audit and other costs of partnership administration including asset management fees paid to the Company, compensation received in the form of cash flow preference and share of income in excess of the Company's ownership percentage. (c) See footnote (e) on page 47. Third Quarter 2005 Page 18 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS (Unaudited, dollars in thousands)
2005 2004 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ASSETS Rental apartments Land. . . . . . . . . . $ 171,977 176,193 177,871 164,422 161,838 143,793 133,298 Depreciable property. . 1,065,226 1,101,536 1,111,791 1,031,546 1,017,150 910,267 840,363 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,237,203 1,277,729 1,289,662 1,195,968 1,178,988 1,054,060 973,661 Less: Accumulated depreciation. . . . . . (147,123) (154,666) (147,471) (136,168) (139,925) (130,897) (125,470) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,090,080 1,123,063 1,142,191 1,059,800 1,039,063 923,163 848,191 Rental apartments held for sale, net of accumulated depreciation (b). . . . 34,490 44,039 10,551 60,161 -- 14,138 61,893 Rental apartments under development . . . 5,012 9,357 17,699 10,331 16,242 13,030 8,396 Land and predevelopment costs . . . . . . . . . 29,382 23,537 35,382 33,228 26,480 27,539 27,813 Investments in partnerships (c). . . . 116,112 115,175 121,927 124,354 132,787 133,641 140,546 Cash and cash equivalents. . . . 9,657 4,971 4,124 5,118 4,038 3,717 6,961 Service Companies' other assets. . . . . . 8,230 8,613 8,826 9,374 9,384 9,808 10,216 Other assets and deferred costs, net (d) . . . . . . . . 38,160 24,078 23,066 21,057 25,107 25,169 31,348 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS . . . . $1,331,123 1,352,833 1,363,766 1,323,423 1,253,101 1,150,205 1,135,364 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2005 Page 19 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2005 2004 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES Debt . . . . . . . . . . $ 614,838 682,618 688,235 653,901 576,477 476,449 496,583 Distributions in excess of investments in and earnings from partnerships. . . . . . 10,934 6,574 6,482 6,368 6,243 6,126 6,022 Accrued expenses and other liabilities . . . 42,731 37,450 35,358 42,758 37,970 32,841 30,755 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . 668,503 726,642 730,075 703,027 620,690 515,416 533,360 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . 96,933 96,933 96,933 96,933 96,933 96,933 93,247 Minority interest. . . . 34,921 32,156 32,667 31,939 33,650 34,286 32,308 Total shareholders' equity. . . . . . . . . 530,766 497,102 504,091 491,524 501,828 503,570 476,449 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . . $1,331,123 1,352,833 1,363,766 1,323,423 1,253,101 1,150,205 1,135,364 ========== ========== ========== ========== ========== ========== ========== ========== Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. Third Quarter 2005 Page 20 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands)
2005 2004 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (b) Includes interest and other costs capitalized in consolidation and net of accumulated depreciation of: . . -- -- 2,820 -- 14,360 -- 4,041 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 . . . . $ 3,722 3,134 3,223 3,385 3,161 2,989 5,463 Deferred development costs. . . . . . . 866 2,059 1,139 750 801 718 3,556 Operating receiva- bles and prepaid expenses . . . . . 3,638 4,260 3,761 3,839 5,785 8,093 9,591 Deposits and restricted cash. . 15,310 4,631 2,184 2,545 3,311 2,546 2,938 Notes receivable. . 2,521 2,535 3,238 3,238 3,515 2,766 2,766 Advances to affiliates . . . . 355 7 31 186 827 291 301 Other . . . . . . . 11,748 7,452 9,490 7,114 7,707 7,766 6,733 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- -- $ 38,160 $ 24,078 23,066 21,057 25,107 25,169 31,348 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2005 Page 21 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY September 30, 2005 (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. . . . . . $397,538 64.6% 6.0% 5.1 397,538 -- 397,538 -- Construction financing. . . . . . -- -- -- -- -- -- -- -- Tax-exempt debt. . . . -- 0.0% -- -- -- -- -- -- Credit facilities (e). 210,000 34.2% 4.6% 1.9 -- 210,000 160,000 50,000 Other (f). . . . . . . 7,300 1.2% 3.3% 0.0 -- 7,300 -- 7,300 -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $614,838 100.0% 5.5% 3.9 397,538 217,300 557,538 57,300 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 64.7% 35.3% 90.7% 9.3% ======= ======= ======= ======= 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. . . . . . $667,863 94.4% 6.8% 5.2 667,863 -- 667,863 -- Construction financing. . . . . . 39,683 5.6% 7.0% 6.9 39,683 -- 35,635 4,048 -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $707,546 100.0% 6.8% 5.2 707,546 -- 703,498 4,048 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 100.0% 0.0% 99.4% 0.6% ======= ======= ======= ======= See notes on the following page. Third Quarter 2005 Page 22 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY September 30, 2005 (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. Third Quarter 2005 Page 23 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED September 30, 2005 (Unaudited, dollars in thousands) (d) 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 26. (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. The Series B and D issues are callable in February 2007 and October 2006, respectively. (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. Third Quarter 2005 Page 24 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT MATURITIES September 30, 2005 (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 $ 1,856 7,300 9,156 1.5% 3.3% 2006 6,821 52,767 59,588 9.7% 7.1% 2007 5,167 75,035 80,202 13.0% 5.5% 2008 4,845 221,301(b) 226,146 36.8% 4.7% 2009 5,129 -- 5,129 0.8% 0.0% 2010 4,995 19,851 24,846 4.0% 5.0% 2011 2,725 150,958 153,683 25.0% 6.2% 2012 1,234 -- 1,234 0.2% 0.0% 2013 1,114 17,074 18,188 3.0% 4.9% 2014 526 27,202 27,728 4.5% 5.4% Thereafter 8,882 56(c) 8,938 1.5% 5.7% -------- ------- ------- ------ ----- Total $ 43,294 571,544 614,838 100.0% 5.5% ======== ======= ======= ====== ===== Percent to Total 7.0% 93.0% 100.0% ======== ======= ======= Third Quarter 2005 Page 25 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED September 30, 2005 (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 $ 1,717 -- 1,717 0.2% 0.0% 2006 7,368 63,224 70,592 10.0% 7.2% 2007 7,397 66,953 74,350 10.5% 7.9% 2008 6,218 82,133 88,351 12.5% 7.0% 2009 5,196 134,799 139,995 19.8% 6.7% 2010 4,331 29,849 34,180 4.8% 8.3% 2011 2,788 78,479 81,267 11.5% 7.1% 2012 2,268 82,880 85,148 12.0% 5.4% 2013 1,612 101,962 103,574 14.7% 5.9% 2014 277 18,968 19,245 2.7% 5.1% Thereafter 8,881 247 9,128 1.3% 6.8% -------- ------- ------- ------ ----- Total $ 48,053 659,494 707,547 100.0% 6.7% ======== ======= ======= ====== ===== Percent to Total 6.8% 93.2% 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. The commitment amount was increased to $250,000 and the maturity was extended to July 15, 2008. (c) Includes Bonds of $9,500 which were repaid on July 1, 2005 upon sale of the underlying community. Third Quarter 2005 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- ---------------- 2005 2004 ment Last Last --------------------------------- --------------------------------- Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 5,837 1.5% 1.1% 94.4% 93.3% 92.5% 93.0% 92.9% 91.2% 92.3% Atlanta 4,282 0.2% 0.8% 95.2% 94.4% 95.1% 95.1% 95.0% 94.1% 93.8% Austin 1,877 2.0% 2.2% 95.9% 93.7% 93.1% 94.1% 93.9% 91.9% 91.2% Houston 1,433 1.9% 2.4% 95.6% 93.2% 93.3% 94.9% 93.7% 92.4% 94.1% Indianapolis 2,428 0.4% 0.6% 93.9% 93.3% 93.0% 92.8% 93.5% 92.6% 91.8% Kansas City 2,600 0.4% 1.2% 94.8% 93.6% 90.4% 91.9% 94.4% 93.0% 92.4% Chicago 2,775 0.5% 1.3% 95.8% 94.5% 93.4% 93.9% 95.3% 94.6% 93.0% Denver 1,260 2.6% 2.8% 94.6% 91.8% 90.2% 92.8% 92.0% 92.6% 90.5% ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,492 1.0% 1.3% 94.9% 93.6% 92.9% 93.6% 93.9% 92.7% 92.6% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2005 Page 27 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (Unaudited, dollars in thousands) WEIGHTED AVERAGE COLLECTED TOTAL REVENUES PER OCCUPIED UNIT (c) ---------------------------------------------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2005 2004 ment Last Last --------------------------------- --------------------------------- Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 5,837 -0.3% 0.8% $ 855 848 839 840 857 849 842 Atlanta 4,282 1.3% 0.7% 898 892 877 877 887 880 871 Austin 1,877 0.8% -0.4% 811 814 788 791 805 798 798 Houston 1,433 0.3% 0.5% 1,007 1,003 976 987 1,004 995 989 Indianapolis 2,428 1.0% -0.5% 807 811 789 793 799 795 794 Kansas City 2,600 0.1% -0.1% 823 824 816 814 822 819 814 Chicago 2,775 2.0% 0.9% 1,083 1,073 1,052 1,053 1,062 1,064 1,059 Denver 1,260 -2.8% 0.5% 931 926 936 936 958 938 951 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 22,492 0.5% 0.4% $ 893 889 874 876 888 882 878 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== WEIGHTED AVERAGE COLLECTED RENT PER OCCUPIED UNIT (c) ----------------------------------------------------- Percent Change - Current Quarter Compared to Apart- ---------------- 2005 2004 ment Last Last --------------------------------- --------------------------------- Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 5,837 -0.3% 0.2% $ 787 785 782 782 789 786 782 Atlanta 4,282 1.9% 1.5% 825 813 813 810 810 807 804 Austin 1,877 0.9% 0.1% 742 742 734 735 736 732 739 Houston 1,433 0.5% 0.7% 930 924 919 922 926 924 925 Indianapolis 2,428 0.4% -0.2% 740 742 737 736 738 737 736 Kansas City 2,600 -0.1% -0.3% 748 750 748 749 749 748 747 Chicago 2,775 1.9% 0.8% 998 989 984 978 979 980 983 Denver 1,260 -3.2% 0.5% 839 834 846 849 867 858 866 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,492 0.5% 0.5% $ 819 815 812 812 815 813 812 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2005 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. Third Quarter 2005 Page 29 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED (unaudited, dollars in thousands) TOTAL REVENUES (b) ------------------
Percent Change- Current Quarter Compared to Apart- --------------- 2005 2004 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 5,837 1.4% 2.0% $ 41,597 14,134 13,861 13,602 54,826 13,687 13,938 13,579 13,622 Atlanta 4,282 1.5% 1.6% 32,508 10,982 10,812 10,714 42,661 10,705 10,824 10,638 10,494 Austin 1,877 2.9% 2.1% 12,801 4,382 4,291 4,128 16,681 4,195 4,260 4,128 4,098 Houston 1,433 2.4% 3.2% 12,083 4,145 4,018 3,920 16,035 4,031 4,048 3,952 4,004 Indiana- polis 2,428 1.8% 0.5% 16,389 5,540 5,510 5,339 21,439 5,366 5,440 5,350 5,283 Kansas City 2,600 0.6% 1.1% 17,852 6,083 6,018 5,751 23,690 5,838 6,049 5,938 5,865 Chicago 2,775 2.6% 2.4% 25,273 8,649 8,443 8,181 33,243 8,237 8,430 8,378 8,198 Denver 1,260 -0.1% 3.6% 9,732 3,328 3,214 3,190 13,151 3,285 3,332 3,282 3,252 ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 22,492 1.6% 1.9% $168,235 57,243 56,167 54,825 221,726 55,344 56,321 55,245 54,816 ====== ====== ====== ======== ====== ====== ====== ====== ======= ====== ====== ====== ====== Third Quarter 2005 Page 30 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (unaudited, dollars in thousands) EXPENSES (b) ------------ Percent Change- Current Quarter Compared to Apart- --------------- 2005 2004 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 5,837 4.1% 6.7% $ 19,581 6,891 6,459 6,231 24,965 6,245 6,619 6,461 5,640 Atlanta 4,282 2.5% -0.7% 12,715 4,301 4,329 4,085 16,711 4,017 4,196 4,490 4,008 Austin 1,877 16.6% 8.5% 6,353 2,178 2,007 2,168 7,730 1,867 1,868 2,116 1,879 Houston 1,433 -4.6% 10.8% 5,274 1,865 1,683 1,726 7,133 1,647 1,956 1,801 1,729 Indiana- polis 2,428 -5.7% -5.4% 7,182 2,438 2,577 2,167 8,565 2,005 2,585 1,768 2,207 Kansas City 2,600 28.4% 13.6% 6,808 2,553 2,247 2,008 8,532 2,238 1,988 2,277 2,029 Chicago 2,775 1.9% 7.6% 10,041 3,531 3,282 3,228 13,327 3,248 3,465 3,375 3,239 Denver 1,260 1.2% 6.9% 3,545 1,300 1,218 1,027 4,688 1,140 1,284 1,254 1,010 ------ ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 22,492 4.6% 5.3% $ 71,499 25,057 23,802 22,640 91,651 22,407 23,961 23,542 21,741 ====== ====== ====== ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2005 Page 31 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (unaudited, dollars in thousands) NET OPERATING INCOME (b) ------------------------ Percent Change- Current Quarter Compared to Apart- --------------- 2005 2004 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 5,837 -1.0% -2.1% $ 22,016 7,243 7,402 7,371 29,861 7,442 7,319 7,118 7,982 Atlanta 4,282 0.8% 3.1% 19,793 6,681 6,483 6,629 25,950 6,688 6,628 6,148 6,486 Austin 1,877 -7.9% -3.5% 6,448 2,204 2,284 1,960 8,951 2,328 2,392 2,012 2,219 Houston 1,433 9.0% -2.4% 6,809 2,280 2,335 2,194 8,902 2,384 2,092 2,151 2,275 Indiana- polis 2,428 8.6% 5.8% 9,207 3,102 2,933 3,172 12,874 3,361 2,855 3,582 3,076 Kansas City 2,600 -13.1% -6.4% 11,044 3,530 3,771 3,743 15,158 3,600 4,061 3,661 3,836 Chicago 2,775 3.1% -0.8% 15,232 5,118 5,161 4,953 19,916 4,989 4,965 5,003 4,959 Denver 1,260 -1.0% 1.5% 6,187 2,028 1,996 2,163 8,463 2,145 2,048 2,028 2,242 ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 22,492 -0.5% -0.6% $ 96,736 32,186 32,365 32,185 130,075 32,937 32,360 31,703 33,075 ====== ====== ====== ======== ====== ====== ====== ====== ======= ====== ====== ====== ====== Notes: (a) Information shown is Combined, including share of partnership communities at 100%. (b) See pages 39, 40, 42 and 43 for components of same store community revenue, expenses, net operating income and EBITDA. Third Quarter 2005 Page 32 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED (Unaudited, dollars in thousands except per apartment home) OPERATING EXPENSES ------------------
Percent Change- Current Quarter Compared to --------------- 2005 2004 Last Last --------------------------------------- --------------------------------------- Expense Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------- ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------- ------- Personnel 0.9% 3.4% $ 17,568 6,080 5,880 5,608 22,821 5,713 6,027 5,674 5,407 Advertising and promotion -6.4% 0.9% 3,311 1,169 1,159 983 4,444 1,145 1,249 1,113 937 Utilities 22.5% 47.9% 5,191 2,197 1,485 1,509 6,541 1,741 1,794 1,514 1,492 Building repairs and maintenance -0.2% 20.8% 9,453 3,589 2,970 2,894 11,795 2,589 3,596 3,475 2,135 Landscaping and grounds maintenance 3.6% -16.5% 3,393 1,164 1,394 835 4,052 804 1,123 1,328 797 Real estate taxes 10.9% 4.1% 22,040 7,548 7,254 7,238 27,699 6,661 6,804 6,831 7,403 Insurance -9.7% -32.8% 2,387 617 919 851 3,892 1,060 683 1,073 1,076 Property management fees 1.6% 4.4% 5,974 2,049 1,963 1,962 7,922 1,983 2,018 1,934 1,987 Other -3.5% -17.3% 2,182 644 778 760 2,485 711 667 600 507 ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ 4.6% 5.3% $ 71,499 25,057 23,802 22,640 91,651 22,407 23,961 23,542 21,741 ====== ======= ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2005 Page 33 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (Unaudited, dollars in thousands except per apartment home) CAPITAL EXPENDITURES (b) ------------------------
Percent Change- Current Quarter Compared to --------------- 2005 2004 Last Last --------------------------------------- --------------------------------------- Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total -2.8% -5.3% $ 5,255 1,835 1,938 1,482 6,818 2,199 1,888 1,594 1,137 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 234 82 86 66 304 98 84 71 51 ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== TOTAL OPERATING COST (c) ------------------------ Percent Change- Current Quarter Compared to --------------- 2005 2004 Last Last --------------------------------------- --------------------------------------- Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 4.0% 4.5% $ 76,754 26,892 25,740 24,121 98,469 24,606 25,849 25,136 22,878 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 3,412 1,196 1,144 1,072 4,378 1,094 1,149 1,118 1,017 ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Notes: (a) Information shown is Combined, including share of partnership communities at 100%. (b) See details in the Company's Form 10-K or Form 10-Q filed with the SEC. (c) Total operating cost equals the sum of the operating expenses and capital expenditures. Third Quarter 2005 Page 34 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES TOTAL REVENUE The following graphs present same store community monthly total revenue for the first nine months of 2005 in black, compared to monthly total revenue for the twelve months of 2004 in gray. Commentary and financial data relate to "Combined" operations, including partnership communities at 100%. Note that occupancy changes are disclosed in absolute terms, and economic data is as of August 2005. ALL COMMUNITIES --------------- Third quarter same community total revenue was up 1.6%, with expenses growing 4.6%, producing a net operating income (NOI) decrease of 0.5% compared to third quarter 2004. The 1.6% increase in total revenues resulted from a 1.7% increase in rental income and a 1.4% increase in other income. The increase in rental income was the result of a 0.5% increase of in-place rental rates (as measured by collected rent per occupied unit) and a 1.0% increase in occupancy to 94.9%. Collected rent per occupied unit was up in five markets, virtually unchanged in one market, and down in two markets. Occupancies were up in all markets, compared to the third quarter of 2004. The 1.4% increase in other income was attributable to increases in multiple fee income categories. The 4.6% increase in operating expenses is due partly to increases in real estate taxes and utilities and quarterly timing of repairs and maintenance, among other differences. Sequentially, total revenue was up 1.9% and operating expenses increased 5.3%, resulting in NOI decreasing 0.6% from second quarter. The increase in sequential total revenue was caused by a 2.0% increase in rental income and a 1.3% increase in other income. Rental income increased as a result of an increase in occupancy in all markets and increases in collected rent per occupied unit in six markets. The increase in other income was due primarily to an increase in various fee income categories. Overall employment in all of AMLI's markets increased during the twelve months ended August 2005. DALLAS/FT. WORTH ---------------- DALLAS/FT. WORTH same community total revenue, operating expenses and NOI for the third quarter increased 1.4%, increased 4.1%, and decreased 1.0%, respectively, compared to the same period in 2004. The increase in total revenue was primarily due to a 1.4% increase in rental income driven by a 1.5% increase in occupancy over a year ago. On a sequential basis compared to the prior quarter, total revenue increased 2.0%. The increase in revenue was primarily due to an increase in rental income of 1.4%, driven by increases in occupancy and rental rates of 1.1% and 0.2%, respectively. Operating expenses increased 6.7% resulting in a decrease in NOI of 2.1% compared to last quarter. Job growth has remained steady over the past year in the region as the DF/W metroplex added 26,900 jobs in the trailing 12 months ended August 2005. In addition, permit activity has decreased over the past year as 9,897 permits, down from 12,353 from the previous period, have been issued (1.8% of existing stock) for the year ending August 2005. Third Quarter 2005 Page 35 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED TOTAL REVENUE ATLANTA ------- ATLANTA same community total revenue, operating expenses, and NOI increased 1.5%, 2.5%, and 0.8%, respectively, compared to the same quarter a year ago. The positive performance in total revenue was the result of a 2.1% increase in rental income, while other income decreased by 4.7%. The rise in rental income is the result of increases in collected rent per occupied unit and occupancy of 1.9% and 0.2%, respectively. Sequentially, total revenue, operating expenses, and NOI increased 1.6%, decreased 0.7%, and increased 3.1%, respectively. The increase in total revenue was the result of a 2.4% increase in rental income, as other income fell by 6.5%. The increase in rental income was the result of increases in collected rent per occupied unit and occupancy of 1.5% and 0.8%, respectively. The challenge in Atlanta continues to be absorption of new supply, with 14,332 units permitted for the year ended August 2005, which represents an 8.7% increase from the same period of a year ago, and a 3.7% increase to the existing apartment stock. A slowly improving employment outlook provides optimism that demand will be able to keep up with the new supply. For the year ended August 2005, employment posted a gain of 14,800 jobs, or a modest 0.6% growth rate, compared to net job loss over the previous few years. CHICAGO ------- CHICAGO same community quarterly NOI versus a year ago increased 3.1% on an increase in total revenue of 2.6% and a 1.9% increase in operating expenses. The revenue increase was the result of a 2.5% increase in rental income and a 3.7% increase in other income. The increase in rental income was driven by a 1.9% increase in collected rent per occupied unit and an increase in occupancy of 0.5%. Sequentially, total revenues were up 2.4% compared to the second quarter. Rental income was up 2.4%, while other income was up 3.4%. The change in rental income was due to a 1.3% increase in occupancy and a 0.8% increase in collected rent per occupied unit. Operating expenses increased 7.6%, resulting in a decrease in sequential NOI of 0.8%. The employment picture continues to improve in Chicago as the metro added 28,400 jobs for the year ended August 2005, which represents a 0.8% growth rate. On the supply side, the Chicago metro issued permits for 11,325 new multifamily units, representing a 19.6% increase from the same period of a year ago and 1.7% of existing apartment stock for the year ended August 2005. It should again be noted that in Chicago a significant portion of permits issued are for 'for-sale' housing and will not directly compete with 'for-rent' product. Our market research shows approximately 1,700 institutional grade apartment units currently under construction in the Chicago metropolitan area, a very small number of new units for a market the size of Chicago. AUSTIN ------ AUSTIN same community total revenue, operating expenses and NOI increased 2.9%, increased 16.6%, and decreased 7.9%, respectively, compared to the same period in 2004. The increase in total revenue was primarily the result of a 3.0% increase in rental income, due to a 2.0% and 0.9% increase in occupancy and collected rent per occupied unit, respectively. The increase in operating expenses is primarily due to an increase in real estate taxes. On a sequential basis, total revenue increased by 2.1%. This was due to a 2.6% increase in rental income, with other income decreasing 2.4%. The increase in rental income was due to a 0.1% increase in collected rent per Third Quarter 2005 Page 36 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED TOTAL REVENUE occupied unit and a 2.2% increase in occupancy. Operating expenses increased by 8.5%, primarily due to real estate taxes, resulting in a decrease in NOI of 3.5% from last quarter. Supply and demand fundamentals continue to improve in the region as job growth continues to gain momentum. Approximately 12,900 jobs were added in the previous 12 months ended August 2005, representing a 1.9% growth rate, which is above the national average of 1.7%. Permit activity remains relatively stable, although an increase in permitting activity has been seen recently, as 3,546 permits (an increase of 33% from the previous period and 2.3% of existing stock) were issued for the same period. KANSAS CITY ----------- KANSAS CITY same community total revenue, operating expenses, and NOI increased 0.6%, increased 28.4%, and decreased 13.1%, respectively, compared to third quarter 2004. Rental income for the quarter increased 0.4% versus the same period of a year ago due to an increase in occupancy of 0.4%. Collected rent per occupied unit fell by 0.1%. Other income increased by 2.1% for the period. The increase in expenses was primarily due to an increase in real estate taxes. On a sequential basis, total revenue increased 1.1%, but operating expenses also increased by 13.6%, leading to an NOI decrease of 6.4%. Rental income increased 1.0%, resulting from a 1.2% occupancy gain during the quarter, while collected rent per occupied unit decreased by 0.3%. Other income increased 2.1% from last quarter. Demand fundamentals in Kansas are continuing to strengthen, and supply has remained in check. For the year ended August 2005, the Kansas City metro area gained 11,100 jobs, a positive 1.2% growth rate. In addition, multifamily permits have remained stable for the past year. For the year ended August 2005, authorized permits totaled 2,021 units, which represents a 1.6% increase to the existing apartment stock. INDIANAPOLIS ------------ INDIANAPOLIS same community total revenue increased 1.8%, expenses decreased 5.7%, and NOI increased 8.6% for the third quarter of 2005 versus the same period of a year ago. Rental income on a year over year basis was up 1.2%, as both occupancy and collected rent per occupied unit gained 0.4% over the same period in 2004. Other income experienced an increase of 9.6%. Sequentially, total revenue increased 0.5%, expenses decreased 5.4%, and NOI increased 5.8% from the second quarter. The revenue increase was due to a 0.8% increase in rental income, as a result of a 0.6% increase in occupancy and a 0.2% decrease in collected rent per occupied unit. Other income decreased 2.7% over last quarter. Demand fundamentals in Indianapolis, after showing strength at the beginning of the year, appear to have slowed, but positive job growth has returned to the metro. The BLS reported job growth of 6,500 for the year ended August 2005, a 0.7% growth rate. On the supply side 2,090 multifamily permits have been authorized over the past year, which is a 28% increase from the same period of a year ago, and represents a 1.7% increase to the existing apartment stock. Third Quarter 2005 Page 37 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED TOTAL REVENUE HOUSTON ------- HOUSTON same community total revenue, operating expenses and NOI increased 2.4%, decreased 4.6%, and increased 9.0%, respectively, compared to the same period in 2004. Rental income for the third quarter increased 2.5% due to an increase in occupancy and collected rent per occupied unit of 1.9% and 0.5%, respectively. Other income increased by 0.6% over the same period last year. On a sequential basis, total revenue increased 3.2% from the previous quarter, due primarily to an increase in rental income of 3.3% which was the result of an increase in occupancy of 2.4% and collected rent per occupied unit of 0.7%. Operating expenses increased 10.8%, due primarily to timing of major R&M projects, leading to a NOI decrease of 2.4%. Houston continues to face challenging supply fundamentals as permit activity remains high with 10,559 permits (2.3% of existing stock) issued for the year ended August 2005. Although permit activity remains significant, the trend has been downward over the past two years. On the demand side, Houston is beginning to show signs of a solid rebound as the economy improves. The market registered an increase of approximately 30,600 jobs for the twelve months ended August 2005. DENVER ------ DENVER same community total revenue, expenses, and NOI decreased 0.1%, increased 1.2%, and decreased 1.0% for the quarter, respectively, compared to third quarter, 2004. Rental income on a year over year basis fell 0.5% due to collected rent per occupied unit being down 3.2%. Occupancy rose 2.6% to 94.6%, on a year over year basis. Other income limited the decline in total revenue by growing 3.6% for the quarter. On a sequential basis, total revenue, expenses, and NOI increased 3.6%, 6.9%, and 1.5%, respectively, from the second quarter. Rental income increased 3.6% from the second quarter, as collected rent per occupied unit rose 0.5% in tandem with an increase in occupancy of 2.8%. Other income also increased by 3.0% over last quarter. The Denver metro is beginning to see strengthening supply/demand fundamentals as job growth has turned positive and the authorization of multifamily permits has slowed dramatically. For the year ended August 2005, the metro area experienced a gain of 19,800 jobs, a positive 1.7% growth rate, which is in sharp contrast to the net losses over the previous few years. Additional positive news in Denver has been the decline in multifamily permitting over the past thirty-six months. For the year ended August 2005, authorized permits totaled 2,730 units (representing a 1.1% increase to the existing apartment stock); a 50% and 65% decrease over the same period of two and three years ago, respectively. Third Quarter 2005 Page 38 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI QUARTER ENDED SEPTEMBER 30 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined at 100% at 100% ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2005 2004 Change 2005 2004 Change 2005 2004 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (b) . . . . 27,719 26,211 5.8% 57,243 56,321 1.6% 29,524 30,111 -1.9% New communities (c). . . 860 843 2.0% 4,773 3,796 25.7% 3,913 2,953 32.5% Communities under development and lease-up. . . . . . . . 0 0 0.0% 850 17 4835.1% 850 17 4835.1% Acquisition communities (d) . . . . 11,790 3,687 219.8% 11,790 3,688 219.7% 0 0 0.0% Communities under rehab (e) . . . . . . . 875 768 13.9% 875 768 13.9% 0 0 0.0% Communities sold (f) . . 59 4,387 -98.6% 60 5,180 -98.8% 1 793 -99.8% -------- -------- -------- -------- -------- -------- -------- -------- -------- 41,303 35,896 15.1% 75,591 69,770 8.3% 34,288 33,874 1.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b) . . . . 12,699 11,658 8.9% 25,057 23,961 4.6% 12,358 12,304 0.4% New communities (c). . . 344 640 -46.3% 1,873 2,099 -10.7% 1,529 1,459 4.9% Communities under development and lease-up. . . . . . . . 0 0 0.0% 406 105 287.0% 406 105 287.0% Acquisition communities (d) . . . . 5,346 2,035 162.7% 5,346 2,035 162.7% 0 0 0.0% Communities under rehab (e) . . . . . . . 525 395 32.8% 525 395 32.8% 0 0 0.0% Communities sold (f) . . 26 2,585 -99.0% 28 2,949 -99.0% 2 364 -99.4% -------- -------- -------- -------- -------- -------- -------- -------- -------- 18,940 17,313 9.4% 33,235 31,544 5.4% 14,295 14,232 0.4% ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 39 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER ENDED SEPTEMBER 30 (Dollars in thousands) Wholly-Owned Communities (a) Combined at 100% Combined at AMLI's Share ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2005 2004 Change 2005 2004 Change 2005 2004 Change -------- -------- -------- ------- ------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (b) . . . . 15,020 14,553 3.2% 32,186 32,360 -0.5% 17,166 17,807 -3.6% New communities (c). . . 516 203 154.7% 2,900 1,697 70.9% 2,384 1,494 59.5% Communities under development and lease-up. . . . . . . . 0 0 0.0% 444 -88 -607.2% 444 -88 -607.2% Acquisition communities (d) . . . . 6,444 1,652 290.0% 6,444 1,653 289.9% 0 0 0.0% Communities under rehab (e) . . . . . . . 350 373 -6.1% 350 373 -6.1% 0 0 0.0% Communities sold (f) . . 33 1,802 -98.2% 32 2,231 -98.6% -1 429 -100.2% -------- -------- --------------- ------------------------------- -------- -------- 22,363 18,583 20.3% 42,356 38,226 10.8% 19,993 19,642 1.8% ======== ======== ======== ======== ======== ======== ======== Less Co-investment partners' share . . . . -13,045 -12,847 ------- ------- COMPANY'S SHARE OF NOI (g) . . . . . . . . 29,311 25,379 Cash flow preference and operating promote (h) . . . . . . . . . . 554 546 ------- ------- 29,865 25,925 Company's share of other, net (i) . . . . -213 -196 ------- ------- COMPANY'S SHARE OF COMMUNITIES' EBITDA. . 29,652 25,729 ======= ======= COMPANY'S PERCENTAGE OF COMBINED NOI: Before cash flow preferences . . . . . . 69.2% 66.4% Including cash flow preferences and other . 70.5% 67.8% ======= ======= Third Quarter 2005 Page 40 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER ENDED SEPTEMBER 30 (Dollars in thousands) Notes: (a) Includes communities that were sold and reported as Discontinued Operations in the Company's Statements of Operations. (b) Same store communities are communities that have had stabilized operations and were owned by the Company as of January 1, 2004. (c) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2004. (d) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2004. (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. Third Quarter 2005 Page 41 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMPONENTS OF NOI NINE MONTHS ENDED SEPTEMBER 30 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined at 100% at 100% ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2005 2004 Change 2005 2004 Change 2005 2004 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (b) . . . . 81,746 77,393 5.6% 168,235 166,382 1.1% 86,489 88,990 -2.8% New communities (c). . . 2,525 2,395 5.4% 13,398 10,215 31.2% 10,874 7,820 39.1% Communities under development and lease-up. . . . . . . . 0 0 0.0% 1,556 17 8936.0% 1,556 17 8936.0% Acquisition communities (d) . . . . 29,511 6,090 384.6% 29,511 6,090 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 2,282 2,387 -4.4% 2,282 2,387 -4.4% 0 0 0.0% Communities sold (f) . . 3,818 17,344 -78.0% 5,115 20,062 -74.5% 1,296 2,718 -52.3% -------- -------- -------- -------- -------- -------- -------- -------- -------- 119,882 105,609 13.5% 220,097 205,153 7.3% 100,215 99,545 0.7% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b) . . . . 36,215 33,312 8.7% 71,499 69,244 3.3% 35,284 35,932 -1.8% New communities (c). . . 1,014 1,297 -21.8% 5,951 5,436 9.5% 4,938 4,139 19.3% Communities under development and lease-up. . . . . . . . 0 0 0.0% 1,059 112 844.7% 1,059 112 844.7% Acquisition communities (d) . . . . 13,228 3,106 325.9% 13,228 3,106 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 1,306 1,142 14.4% 1,306 1,142 14.4% 0 0 0.0% Communities sold (f) . . 2,386 8,866 -73.1% 2,933 10,190 -71.2% 546 1,323 -58.7% -------- -------- -------- -------- -------- -------- -------- -------- -------- 54,149 47,723 13.5% 95,976 89,230 7.6% 41,827 41,506 0.8% ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 42 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED NINE MONTHS ENDED SEPTEMBER 30 (Dollars in thousands) Wholly-Owned Communities (a) Combined at 100% Combined at AMLI's Share ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2005 2004 Change 2005 2004 Change 2005 2004 Change -------- -------- -------- ------- ------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (b) . . . . 45,531 44,081 3.3% 96,736 97,138 -0.4% 51,205 53,058 -3.5% New communities (c). . . 1,511 1,098 37.6% 7,447 4,779 55.8% 5,936 3,681 61.3% Communities under development and lease-up. . . . . . . . 0 0 0.0% 497 -95 -624.0% 497 -95 -624.0% Acquisition communities (d) . . . . 16,283 2,984 445.7% 16,283 2,984 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 976 1,245 -21.6% 976 1,245 -21.6% 0 0 0.0% Communities sold (f) . . 1,432 8,478 -83.1% 2,182 9,872 -77.9% 750 1,395 -46.2% -------- -------- --------------- ------------------------------- -------- -------- 65,733 57,886 13.6% 124,121 115,923 7.1% 58,388 58,039 0.6% ======== ======== ======== ======== ======== ======== ======== Less Co-investment partners' share . . . . -38,086 -37,817 ------- ------- COMPANY'S SHARE OF NOI (g) . . . . . . . . 86,035 78,106 Cash flow preference and operating promote (h) . . . . . . . . . . 1,783 2,074 ------- ------- 87,818 80,180 Company's share of other, net (i) . . . . -462 -443 ------- ------- COMPANY'S SHARE OF COMMUNITIES' EBITDA. . 87,356 79,737 ======= ======= COMPANY'S PERCENTAGE OF COMBINED NOI: Before cash flow preferences . . . . . . 69.3% 67.4% Including cash flow preferences and other . 70.8% 69.2% ======= ======= Third Quarter 2005 Page 43 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED NINE MONTHS ENDED SEPTEMBER 30 (Dollars in thousands) Notes: (a) Includes communities that were sold and reported as Discontinued Operations in the Company's Statements of Operations. (b) Same store communities are communities that have had stabilized operations and were owned by the Company as of January 1, 2004. (c) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2004. (d) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2004. (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. Third Quarter 2005 Page 44 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION QUARTER ENDED (Dollars in thousands)
2005 2004 -------------------------------------------- -------------------------------------------- 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). . . . . . . 493 165 164 164 654 164 162 162 166 Disposition fees (c) . 136 -- 136 -- -- -- -- -- -- Debt/equity placement fees (d). . . . . . . 300 300 -- -- -- -- -- -- -- Joint Venture struc- turing fee (e). . . . 627 627 -- -- -- -- -- -- -- Development fees (a) . 273 135 42 96 1,170 167 474 262 267 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,829 1,227 342 260 1,824 331 636 424 433 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF CASH FLOW (d) Promoted interest from sale proceeds. . -- -- -- -- -- -- -- -- -- Promoted interest from operating cash flow . . . . . . 707 241 214 252 829 261 107 207 254 Cash flow pre- ferences (e). . . . . 1,076 313 340 423 1,809 303 440 254 812 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,783 554 554 675 2,638 564 547 461 1,066 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL. . . . . . .$ 3,612 1,781 896 935 4,462 895 1,183 885 1,499 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== 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 pages 40 and 43 is reduced by its share of this fee. (c) Disposition fees are shown at 100% as reported gains on sale have been reduced for this cost. (d) See pages 40 and 43. (e) The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. Third Quarter 2005 Page 45 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION QUARTER ENDED Unaudited (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS -------------------------------------------
2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUE Property management fees (a). . . . . . .$ 8,851 3,040 2,910 2,901 10,150 2,603 2,646 2,419 2,482 General contractor revenues, net (b) . . 411 18 172 221 755 189 253 169 144 Corporate homes, gross profit (c). . . 1,015 529 219 267 864 139 212 264 249 Rental operations, net income (d). . . . 757 494 130 133 182 166 29 (64) 51 Other income . . . . . 183 99 41 43 1,363 561 276 292 234 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 11,217 4,180 3,472 3,565 13,314 3,658 3,416 3,080 3,160 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OPERATING EXPENSES Property management. . 9,624 3,156 3,184 3,284 10,478 2,796 2,397 2,638 2,647 General contractor . . 1,663 541 583 539 2,283 367 1,051 440 425 Corporate homes. . . . 825 261 267 297 1,101 296 305 255 245 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 12,112 3,958 4,034 4,120 13,862 3,459 3,753 3,333 3,317 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Provision for loss on land parcels held for sale. . . . -- -- -- -- -- -- -- -- -- Gain (loss) on sale of land, net. . . . . -- -- -- -- 193 46 147 -- -- Share of gain on sale of a residential community built for sale. . . . . . . 3,572 -- 3,572 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EBITDA . . . . . . . . 2,677 222 3,010 (555) (355) 245 (190) (253) (157) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 46 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED QUARTER ENDED Unaudited (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS ------------------------------------------- 2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Interest expense . . . (1,822) (1,126) (368) (328) (1,311) (309) (322) (272) (408) Depreciation and amortization. . . . . (2,505) (771) (892) (842) (3,230) (692) (856) (845) (837) Taxes. . . . . . . . . 504 514 (665) 655 1,782 246 520 522 494 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME (LOSS). . . (1,146) (1,161) 1,085 (1,070) (3,114) (510) (848) (848) (908) Eliminations, interest and other . . . . . . . . 1,976 960 575 441 1,464 281 416 315 452 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (e)(f). . .$ 830 (201) 1,660 (629) (1,650) (229) (432) (533) (456) ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Includes property management fees, income earned by AMLI Management Company's Ancillary Services division and other revenues incidental to the property management business. (b) Reflects general contractor revenues, net of subcontractor costs (cost of sales), and other revenues incidental to the operations of the general contractor business. (c) Reflects gross revenues of AMLI Corporate Homes, net of payments to communities and cost of sales. (d) Reflects net operating income from wholly-owned communities developed for sale and income (loss) from investments in partnerships. (e) Includes discontinued operations. The Service Companies' operations on page 17 exclude discontinued operations. (f) Includes depreciation of rental property. The Service Companies' FFO on page 15 excludes rental property depreciation. Third Quarter 2005 Page 47 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED FINANCIAL POSITION -------------------------------------
2005 2004 ----------------------------------------- ----------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- ASSETS Receivables (a). . . . . $ 1,682 2,168 1,940 2,058 3,040 5,506 6,557 Land held for sale (b). . . . . . . . 10,830 12,293 12,303 13,697 12,247 12,433 12,404 Rental communities under development and held for sale (c) . . . 35,388 33,346 10,376 10,360 10,361 9,676 8,396 Retail rental property . 4,206 4,020 3,476 -- -- -- -- Building and leasehold improve- ments, net (d). . . . . 2,008 2,053 2,075 2,080 2,124 2,208 2,257 Information technology costs, net. . . . . . . 6,222 6,560 6,751 7,294 7,260 7,600 7,959 Other (e). . . . . . . . 7,007 5,957 6,515 5,827 6,620 6,066 5,646 -------- -------- -------- -------- -------- -------- -------- -------- Total Assets . . . . $ 67,343 66,397 43,436 41,316 41,652 43,489 43,219 ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Primarily costs and fees due from affiliates, which are included in other assets in the consolidated balance sheets (page 19). (b) Represents land included in land and predevelopment costs in the consolidated balance sheets (page 19) as follows: Prairie Lakes (120 acres in Indiana) . . . . . $ 5,579 7,046 7,027 7,006 7,027 7,219 7,192 Fossil Creek (34 acres in Texas) . . . . . . 5,251 5,247 5,276 5,220 5,220 5,214 5,212 Downtown Austin Retail . . . . . . -- -- -- 1,471 -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- $ 10,830 12,293 12,303 13,697 12,247 12,433 12,404 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 48 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED (Dollars in thousands) 2005 2004 ----------------------------------------- ----------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- (c) Included in rental apartments held for sale in the con- solidated balance sheets (page 19). (d) Corporate office building, net of depreciation, which is included in the Service Companies' assets in the consolidated balance sheets (page 19). (e) Represented by: Investments in partnerships . . . $ 236 8 (86) (45) (48) 43 215 Investments in real estate. . . . 616 626 737 737 1,718 1,448 1,448 Deferred income tax. . . . . . . . 4,491 3,977 4,654 3,999 3,762 3,240 2,721 Unamortized goodwill . . . . . 668 668 668 668 668 668 668 Other . . . . . . . 996 678 542 468 520 667 594 -------- -------- -------- -------- -------- -------- -------- -------- $ 7,007 5,957 6,515 5,827 6,620 6,066 5,646 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 49 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL STABILIZED COMMUNITIES SEPTEMBER 30, 2005
AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- DALLAS/ FT. WORTH, TX ------------- AMLI: at Bishop's Gate 100% Plano, TX 1997 1997 266 94.7% 1,045 Same Store at Breckinridge Point 45% Richardson, TX 2000 1999 440 97.3% 919 Same Store at Bryan Place 48% Dallas, TX 2002 1999 420 93.8% 960 Same Store at Cityplace 100% Dallas, TX 2005 2000 244 95.9% 1,134 Acquisition at Deerfield 25% Plano, TX Developed 2000 240 95.8% 914 Same Store on the Fairway 100% Coppell, TX 2004 2002 322 94.7% 899 Acquisition on Frankford 45% Dallas, TX 2000 1998 582 96.6% 893 Same Store on the Green 100% Ft. Worth, TX 1994 1990/93 424 95.3% 739 Same Store Knox-Henderson 100% Dallas, TX 2003 1994 180 96.1% 1,076 Same Store of North Dallas 100% Dallas, TX 1989/90 1985/86 1,032 94.3% 676 Same Store at Oak Bend 100% Dallas, TX 1999 1997 426 96.0% 803 Same Store on the Parkway 25% Dallas, TX Developed 1999 240 93.3% 859 Same Store at Prestonwood Hills 45% Dallas, TX 1999 1997 272 96.0% 889 Same Store 7th Street Station 100% Ft. Worth, TX 2002 2000 189 97.4% 1,049 Same Store at Shadow Ridge 100% Flower Mound, TX 2001 2000 222 93.7% 994 Same Store at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 94.0% 792 Same Store Upper West Side 100% Ft. Worth, TX 2002 2001 194 96.4% 1,005 Same Store at Valley Ranch 100% Irving, TX 1990 1985 460 95.7% 776 Same Store ------ ------ ------ ------ 6,403 22.6% 95.3% 867 ------ ------ ------ ------ Third Quarter 2005 Page 50 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2005 AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- ATLANTA, GA ------------ AMLI: at Barrett Lakes 35% Kennesaw, GA Developed 1997 446 98.0% 894 Same Store at Barrett Walk 25% Kennesaw, GA Developed 2002 290 97.6% 871 Same Store at Clairmont 100% Atlanta, GA 1988 1988 288 97.6% 832 Same Store at Kedron Village 20% Fayette County, GA Developed 2002 216 95.4% 1,062 Same Store at Killian Creek 100% Snellville, GA Developed 1999 256 97.7% 875 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 95.7% 785 Same Store at McGinnis Ferry 100% Gwinnett 1999/ County, GA 2005 2002 696 95.4% 924 Acquisition at Mill Creek 25% Gwinnett County, GA Developed 2001 400 92.0% 871 Same Store at Milton Park 25% Alpharetta, GA Developed 2003 461 96.3% 977 New at Northwinds 35% Alpharetta, GA Developed 1999 800 95.5% 947 Same Store at Park Creek 100% Gainesville, GA Developed 1998 200 94.0% 834 Same Store at Peachtree City 20% Fayette County, GA Developed 1998 312 93.9% 903 Same Store at River Park 40% Norcross, GA Developed 1997 222 94.1% 915 Same Store at Vinings 100% Smyrna, GA 1992/97 1985 360 92.8% 843 Same Store at West Paces 100% Atlanta, GA 1993 1992 337 97.0% 962 Rehab at Windward Park 45% Alpharetta, GA 1999 1999 328 94.2% 951 Same Store ------ ------ ------ ------ 5,776 20.4% 95.5% 911 ------ ------ ------ ------ Third Quarter 2005 Page 51 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2005 AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- CHICAGO, IL ----------- AMLI: at Canterfield 100% West Dundee, IL 2004 2001 352 95.7% 1,378 Acquisition at Chevy Chase 33% Buffalo Grove, IL 1996 1988 592 93.6% 1,086 Same Store at Danada Farms 100% Wheaton, IL 1997 1989/91 600 94.7% 1,045 Same Store at Kirkland Crossing 100% Aurora, IL 2004 2004 266 91.7% 1,214 Acquisition at Oakhurst North 100% Aurora, IL Developed 2000 464 95.5% 1,058 Same Store at Osprey Lake 69% Gurnee, IL 2001 1997/99 483 94.0% 1,055 Same Store at River Run 100% Naperville, IL 2004 2003 206 94.2% 1,335 Acquisition at St. Charles 25% St. Charles, IL Developed 2000 400 94.5% 1,152 Same Store at Seven Bridges 20% Woodridge, IL Developed 2004 520 92.5% 1,120 New at Windbrooke 15% Buffalo Grove, IL 1995 1987 236 93.2% 1,159 Same Store ------ ------ ------ ------ 4,119 14.6% 94.0% 1,134 ------ ------ ------ ------ AUSTIN, TX ---------- AMLI: Downtown Austin 30% Austin, TX Developed 2005 220 97.7% 1,600 New at Lantana Hills 100% Austin, TX 2005 2002 264 94.7% 982 Acquisition at Lantana Ridge 100% Austin, TX 1997 1997 354 96.9% 832 Same Store at Monterery Oaks 25% Austin, TX Developed 2000 430 96.5% 866 Same Store at Scofield Ridge 45% Austin, TX 2000 2000 487 97.9% 796 Same Store at StoneHollow 100% Austin, TX 2000 1997 606 95.2% 773 Same Store ------ ------ ------ ------ 2,361 8.3% 96.4% 904 ------ ------ ------ ------ Third Quarter 2005 Page 52 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2005 AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- KANSAS CITY, KS --------------- AMLI: at Cambridge Square 30% Overland Park, KS Developed 2002 408 95.3% 891 Same Store Creekside 100% Overland Park, KS Developed 2000 224 95.1% 791 Same Store at Lexington Farms 100% Overland Park, KS 1998 1998 404 95.5% 787 Same Store at Regents Center 100% Overland Park, KS 1994 1991/95 /97 424 96.2% 775 Same Store at Regents Crest 100% Overland Park, KS 1997 1997/ 2000 476 96.6% 776 Same Store at Summit Ridge 25% Lees Summit, KS Developed 2001 432 91.4% 864 Same Store at Wynnewood Farms 100% Overland Park, KS Developed 2000 232 94.8% 905 Same Store (b) ------ ------ ------ ------ 2,600 9.2% 95.0% 823 ------ ------ ------ ------ Third Quarter 2005 Page 53 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2005 AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- INDIANAPOLIS, IN ---------------- AMLI: Carmel Center 100% Carmel, IN Developed 2004 322 90.4% 937 New at Castle Creek 100% Indianapolis, IN Developed 2000 276 92.4% 929 Same Store at Conner Farms 100% Fishers, IN 1997 1993 300 91.0% 859 Same Store at Eagle Creek 100% Indianapolis, IN 1998 1998 240 94.6% 844 Same Store at Lake Clear- 100% Indianapolis, water IN Developed 1999 216 92.1% 954 Same Store (b) at Riverbend 100% Indianapolis, IN 1992/93 1983/85 996 93.8% 684 Same Store on Spring Mill 100% Carmel, IN 1999 1999 400 90.8% 889 Same Store ------ ------ ------ ------ 2,750 9.7% 92.5% 822 ------ ------ ------ ------ HOUSTON, TX ----------- AMLI: on Eldridge Parkway 100% Houston, TX 2004 1998/99 668 97.3% 799 Acquisition at Kings Harbor 25% Houston, TX Developed 2001 300 95.0% 888 Same Store at the Medical Center 100% Houston, TX 2001 2000 334 98.2% 955 Same Store Memorial Heights 100% Houston, TX 2005 2002 380 96.8% 1,201 Same Store Midtown 45% Houston, TX 2000 1998 419 99.0% 1,080 Same Store Towne Square 45% Houston, TX 2000 1999 380 98.2% 1,067 Same Store ------ ------ ------ ------ 2,481 8.7% 97.5% 981 ------ ------ ------ ------ Third Quarter 2005 Page 54 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2005 AMLI's Number Percent Ave. Owner- of of Physical Collected ship Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2005 2005 of NOI ---------------- ------- -------- --------- --------- ------ ------- --------- --------- ---------- DENVER, CO ---------- AMLI: at Gateway Park 100% Denver, CO 2000 2000 328 96.3% 841 Same Store at Lowry Estates 50% Denver, CO 2000 2000 414 95.4% 964 Same Store at Park Meadows 25% Littleton, CO 2002 2001 518 93.8% 960 Same Store at Westcliff 100% Westminster, CO 2004 2003 372 95.2% 949 Acquisition ------ ------ ------ ------ 1,632 5.7% 95.0% 935 ------ ------ ------ ------ SOUTHEAST FLORIDA --------- AMLI at Ibis 100% West Palm Beach, FL 2004 2001 234 0.8% 95.3% 1,163 Acquisition ------ ------ ------ ------ TOTAL 28,356 100% 95.1% $ 926 ====== ====== ====== ====== 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 through 34 and 39 through 44. Third Quarter 2005 Page 55 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY SEPTEMBER 30, 2005 (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 ATLANTA, GA ----------- AMLI at Perimeter Gardens Dunwoody, GA 100% 245 2Q/05 2Q/06 4Q/06 3Q/07 0 24% 0% KANSAS CITY, KS --------------- AMLI Clear Creek I Overland Park, KS 100% 288 2Q/05 3Q/06 4Q/06 4Q/07 0 20% 0% ---- ---- Total 533 0 ==== ==== Third Quarter 2005 Page 56 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED SEPTEMBER 30, 2005 (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 SUBSTANTIALLY COMPLETED AND IN LEASE-UP CHICAGO, IL ----------- AMLI at Museum Gardens Vernon Hills, IL 25% 294 2Q/03 4Q/04 2Q/05 2Q/06 294 96% 76% === ==== COMMUNITIES BUILT FOR SALE BY AMRESCON DALLAS, TX ---------- AMLI at La Villita Irving, TX 100% 360 2Q/04 2Q/05 4Q/05 4Q/05 324 97% 96% === ==== 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. Third Quarter 2005 Page 57 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY SEPTEMBER 30, 2005 (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 ATLANTA, GA ----------- AMLI at Perimeter Gardens (c) 25% $ 27,700 6,663 21,037 6,925 1,666 5,259 2,050 465 KANSAS CITY, KS --------------- AMLI Clear Creek I 100% 24,700 5,012 19,688 24,700 5,012 19,688 24,700 19,688 -------- -------- -------- -------- -------- -------- -------- -------- 52,400 11,675 40,725 31,625 6,678 24,947 26,750 20,153 -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES SUBSTANTIALLY COMPLETED AND IN LEASE-UP CHICAGO, IL ----------- AMLI at Museum Gardens (c) 25% 61,700 59,006 2,400 15,425 14,752 600 6,360 269 -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 58 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED SEPTEMBER 30, 2005 (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 BUILT FOR SALE BY AMRESCON DALLAS, TX ---------- AMLI at La Villita 100% 24,800 23,776 600 24,800 23,776 600 24,800 600 -------- -------- -------- -------- -------- -------- -------- -------- $138,900 94,457 43,725 71,850 45,205 26,147 57,910 21,022 ======== ======== ======== ======== ======== ======== ======== ======== 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. Third Quarter 2005 Page 59 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE SEPTEMBER 30, 2005 Number of Apartment Market/Community Submarket Homes ---------------- --------- --------- ATLANTA, GA ----------- AMLI at: Barrett Lakes III Northwest Atlanta 180 AUSTIN, TX ---------- AMLI at: Anderson Mill Northwest Austin 396 FORT WORTH, TX -------------- AMLI at: Fossil Creek (owned by the Service Companies) North Forth Worth 288 Fossil Creek II (16 acres held for sale by the Service Companies) North Forth Worth n/a HOUSTON, TX ----------- AMLI at: Champions II (14 acres held for sale) Northwest Houston n/a KANSAS CITY, KS --------------- AMLI at: Longview Farms Western Lee's Summit 206 Clear Creek II Overland Park 104 DENVER, CO ---------- AMLI at: Inverness Southeast Denver 309 INDIANAPOLIS, IN ---------------- AMLI at: Prairie Lakes (120 acres held for sale by the Service Companies) Noblesville n/a ------ Total 1,483 ====== Third Quarter 2005 Page 60 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY NINE MONTHS ENDED SEPTEMBER 30, 2005 AND YEAR ENDED DECEMBER 2004 (Dollars in thousands)
Percen- tage of Ownership Date Number of Purchase Acquired Acquired Apartment or Sale Community Market or Sold or Sold Homes Price -------------------- -------------------- ---------- ---------- --------- --------- COMMUNITIES ACQUIRED -------------------- AMLI: at Lantana Hills Austin, TX 100% 1/21/2005 264 $ 24,150 at McGinnis Ferry Gwinnett County, GA 100% 2/24/2005 696 64,736 at City Place Dallas, TX 100% 5/10/2005 244 25,000 Memorial Heights Houston, TX 100% 7/6/2005 380 52,000 -------- -------- Total 2005 (a) 1,584 165,886 -------- -------- AMLI: on Timberglen Dallas, TX 60% 1/5/2004 260 6,263 at Ibis West Palm Beach, FL 100% 4/15/2004 234 24,675 on Eldridge Parkway Houston, TX 100% 4/15/2004 668 48,000 on the Fairway Dallas, TX 100% 4/30/2004 322 23,405 at Westcliff Westminster, CO 100% 8/18/2004 372 43,500 at Canterfield West Dundee, IL 100% 9/14/2004 352 55,350 at River Run Naperville, IL 100% 9/14/2004 206 31,500 at Kirkland Crossing Aurora, IL 100% 10/20/2004 266 39,100 at Wynnewood Farms Overland Park, KS 75% 11/15/2004 232 16,699 at Lake Clearwater Indianapolis, IN 75% 11/15/2004 216 14,700 -------- -------- Total 2004 3,128 303,192 -------- -------- 4,712 $469,078 ======== ======== Third Quarter 2005 Page 61 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY - CONTINUED NINE MONTHS ENDED SEPTEMBER 30, 2005 AND YEAR ENDED DECEMBER 31, 2004 (Dollars in thousands) Percen- tage of Ownership Date Number of Purchase Acquired Acquired Apartment or Sale Community Market or Sold or Sold Homes Price -------------------- -------------------- ---------- ---------- --------- --------- COMMUNITIES SOLD ---------------- AMLI: at Chase Oaks Plano, TX 100% 1/12/2005 250 $ 15,300 at Bent Tree Dallas, TX 100% 2/3/2005 500 39,215 at Great Hills Austin, TX 100% 2/3/2005 344 20,500 at Fox Valley Aurora, IL 25% 5/25/2005 272 8,485 at Walnut Creek Austin, TX 100% 6/28/2005 460 36,600 at Poplar Creek Schaumburg, IL 100% 7/1/2005 196 24,950 at Oakhurst North Wheaton, IL 80% 9/30/2005 464 48,325 at Riverbend Indianapolis, IN 60% 9/30/2005 996 39,026 -------- -------- Total 2005 (b) 3,482 232,401 -------- -------- AMLI: at Wells Branch Austin, TX 25% 1/21/2004 576 38,400 at Spring Creek Atlanta, GA 100% 4/14/2004 1,180 80,820 at Verandah Dallas, TX 100% 5/17/2004 538 28,300 at Timberglen Dallas, TX 100% 8/17/2004 260 12,285 at Nantucket Dallas, TX 100% 8/17/2004 312 13,365 at Towne Creek Gainsville, GA 100% 9/13/2004 150 7,900 -------- -------- Total 2004 3,016 181,070 -------- -------- 6,498 $413,471 ======== ======== Notes: (a) The aggregate amount of NOI included from these communities for the nine months ended September 30, 2005 at AMLI's share is $4,549. (b) The aggregate amount of NOI included from these communities for the nine months ended September 30, 2005 at AMLI's share is $5,590. Third Quarter 2005 Page 62 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES SEPTEMBER 30, 2005 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. Third Quarter 2005 Page 63 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED SEPTEMBER 30, 2005 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 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; and 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. Third Quarter 2005 Page 64 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES QUARTER ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND FFO AND AFFO --------------------------------------------------
2005 ---------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . . $ 75,757 44,136 9,210 22,411 Income from discontinued operations, net of minority interest. . . . . . . . . . . . . (953) (248) (254) (451) Gains on sales of rental communities, net of minority interest. . . . . . . . . . . . . (40,852) (11,722) (6,192) (22,938) Gain on sale of bond financing for a community sold, net of minority interest. . . . . . . . . . (843) (843) -- -- Minority interest. . . . . . . . . . . . . . . . . 1,755 1,889 54 (188) ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . . 34,864 -- 33,212 2,818 (1,166) Income from discontinued operations before minority interest . . . . . . . . . . . . . . . . 1,013 263 270 480 Discontinued operations - gain on sale of bond financing. . . . . . . . . . . . . . . . . . 1,280 1,280 -- -- Discontinued operations - Service Companies' gain on sale. . . . . . . . . . . . . . . . . . . 2,215 -- 2,215 -- Gain on extinguishment of debt for a community sold to a partnership . . . . . . . . . (383) (383) -- -- Depreciation (a) . . . . . . . . . . . . . . . . . 33,738 11,104 11,330 11,304 Depreciation - Service Companies . . . . . . . . . 96 59 37 -- Share of co-investment partnerships' depreciation. 7,891 2,624 2,607 2,660 Share of gains on sales of operating communities . (35,208) (32,117) (3,091) -- ---------- ---------- ---------- ---------- ---------- FFO. . . . . . . . . . . . . . . . . . . . . . . . 45,506 -- 16,042 16,186 13,278 Capital expenditures paid from FFO . . . . . . . . (3,831) (1,390) (1,462) (979) Share of co-investment partnerships' capital expenditures. . . . . . . . . . . . . . . (822) (270) (277) (275) ---------- ---------- ---------- ---------- ---------- AFFO . . . . . . . . . . . . . . . . . . . . . . . $ 40,853 -- 14,382 14,447 12,024 ========== ========== ========== ========== ========== Weighted average shares and units including dilutive shares . . . . . . . . . . . . 31,253,407 31,345,120 31,199,018 31,201,655 ========== ========== ========== ========== ========== (a) Includes amounts included in discontinued operations. . . . . . . . . . . . $ 647 -- 324 323 ========== ========== ========== ========== ========== Third Quarter 2005 Page 65 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER 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. . . . . . . . . . . . . (6,330) (1,216) (995) (1,248) (2,871) 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. . . . . . . . . . . . . . . . . (305) (133) (134) (188) 150 ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . . 2,518 (230) (213) (1,037) 3,998 Income from discontinued operations before minority interest. . . . . . . . . . . . . 6,787 1,295 1,061 1,334 3,097 Discontinued operations - gain on sale of bond financing . . . . . . . . . . . . . . . . 4,723 -- -- 4,723 -- Discontinued operations - Service Companies' gain on sale. . . . . . . . . . . . . . . . . . . -- -- -- -- -- Gain on extinguishment of debt for a community sold to a partnership . . . . . . . . . -- -- -- -- -- Depreciation (a) . . . . . . . . . . . . . . . . . 38,768 10,602 10,057 9,468 8,641 Depreciation - Service Companies . . . . . . . . . -- -- -- -- -- 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. . . . . . . . . . . . 3,443 604 801 966 1,073 ========== ========== ========== ========== ========== Third Quarter 2005 Page 66 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES QUARTER ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI ------------------------------------------------------
2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . .$ 75,757 44,136 9,210 22,411 62,425 1,168 12,234 42,304 6,719 Minority interest. . . 1,755 1,889 54 (188) (305) (133) (134) (188) 150 Income from discon- tinued operations, net of minority interest. . . . . . . (953) (248) (254) (451) (6,330) (1,216) (995) (1,248) (2,871) Gains on sales of rental communities, net of minority interest. . . . . . . (40,852) (11,722) (6,192) (22,938) (48,849) (49) (11,318) (37,482) -- Gain on sale of bond financing for a community sold, net of minority interest. . . . . . . (843) (843) -- -- (4,423) -- -- (4,423) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE MINORITY INTEREST . . 34,864 -- 33,212 2,818 (1,166) 2,518 (230) (213) (1,037) 3,998 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2005 Page 67 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI ------------------------------------------------------ 2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from partnerships. . . . . (1,721) (559) (784) (378) (3,435) (886) (616) (430) (1,503) Interest and amortiza- tion of deferred financing costs . . . 28,166 9,844 9,507 8,815 30,042 8,580 7,638 6,976 6,848 Prepayment penalty and write-off of unamortized deferred financing costs . . . -- -- -- -- 1,121 -- -- 1,121 -- Depreciation . . . . . 33,091 11,104 11,006 10,981 35,325 9,998 9,257 8,502 7,568 Fee income from unconsolidated partnerships. . . . . (1,829) (1,227) (342) (260) (1,824) (331) (636) (424) (433) Other income . . . . . (728) (96) (431) (201) (1,378) (263) (207) (429) (479) Service Companies' operations. . . . . . 1,824 433 664 727 1,898 352 538 526 482 General and administrative. . . . 6,074 2,118 1,995 1,961 7,301 2,441 871 1,793 2,196 Provision for loss on land held for development or sale . 150 -- 150 -- 150 -- 150 -- -- Share of gains on sales of partnerships' properties. . . . . . (35,208) (32,117) (3,091) -- (2,648) -- -- -- (2,648) Gain on extinguish- ment of debt for a community sold to a partnership . . . . (383) (383) -- -- -- -- -- -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NOI FROM CONTINUING OPERATIONS. . . . . . 64,300 22,329 21,492 20,479 69,071 19,661 16,783 16,598 16,029 NOI FROM DISCONTINUED OPERATIONS. . . . . . 1,433 34 599 800 10,385 1,909 1,800 2,408 4,268 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CONSOLIDATED NOI . . .$ 65,733 -- 22,363 22,091 21,279 79,456 21,570 18,583 19,006 20,297 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 68 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI ------------------------------------------------------ 2005 2004 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMPONENTS OF NOI Same store communities . . . . . 37,799 12,441 12,704 12,654 50,857 12,703 12,679 12,318 13,157 Acquired from/ contributed to partnerships. . . . . 7,731 2,578 2,564 2,589 8,306 2,380 1,874 2,078 1,974 New communities. . . . 1,511 516 538 457 1,697 597 203 466 431 Development and/ or lease-up communities . . . . . -- -- -- -- -- -- -- -- Acquisition communities . . . . . 16,283 6,444 5,396 4,443 6,621 3,637 1,653 1,331 -- Communities under rehab . . . . . . . . 976 350 289 336 1,590 344 373 406 467 Communities sold . . . 1,433 34 599 800 10,385 1,909 1,801 2,407 4,268 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . .$ 65,733 -- 22,363 22,091 21,279 79,456 21,570 18,583 19,006 20,297 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2005 Page 69 Supplemental Information AMLI Residential Properties Trust