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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K/A
AMENDMENT TO CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
May 10, 2005
COMMISSION FILE NUMBER
0-28378
AmREIT
TEXAS (State or Other Jurisdiction of Incorporation or Organization) | 76-0410050 (I.R.S. Employer Identification No.) |
8 GREENWAY PLAZA, SUITE 1000 HOUSTON, TX (Address of Principal Executive Offices) | 77046 (Zip Code) |
713-850-1400
(Registrant’s telephone number, including area code)
[N/A]
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.01. Completion of Acquisition or Disposition of Assets
Item 9.01. Financial Statements and Exhibits
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ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
Purchase of Uptown Park Shopping Center
We previously filed a Form 8-K on May 13 dated May 10, 2005, with regard to the acquisition of Uptown Park Shopping Center located in Houston, Texas, without the requisite financial information. Accordingly, we are filing this Form 8-K/A to include that financial information. Due to the non-related party nature of this transaction, only audited statements for the year ended December 31, 2004 are required. We are not aware of any material factors relating to the acquisitions that would cause the reported financial information not to be necessarily indicative of future operating results.
On June 1, 2005, we acquired Uptown Park Shopping Center (the “Property”), a 169,000-square-foot lifestyle retail center located in Houston, Texas on the northwest corner of Post Oak Boulevard and IH-610. Material factors considered by us in the acquisition include historical and prospective financial performance of the center, credit quality of the tenancy, local and regional demographics, location and competition, ad valorem tax rates, condition of the Property and the related anticipated level of capital expenditures required. The Property was purchased for approximately $70 million and was financed with $49 million of long term fixed rate debt, $17.7 million in net cash proceeds from a secondary offering of our Class A common shares with the remainder of the purchase price being paid with borrowings under our credit facility. The debt has a ten year term, a 5.37 percent interest rate, and requires that interest-only payments be made monthly during the entire term of the loan. The weighted average remaining lease term for the Property is 5.4 years. The shopping center is 92 percent occupied. The audited financial statement for the Property is submitted in ITEM 9.01 below. Unaudited pro forma condensed consolidated financial information of AmREIT and Subsidiaries and the Property is also submitted in ITEM 9.01 below.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
The following financial statements, pro forma financial statements and exhibits are filed as part of this report:
(a) Financial statements of Uptown Park Shopping Center:
1. Independent Auditors’ Report
2. Historical Summary of Gross Income and Direct Operating Expenses for the year ended December 31, 2004
3. Notes to Historical Summary of Gross Income and Direct Operating Expenses
(b) Pro Forma Condensed Consolidated Financial Statements (unaudited) of AmREIT and Subsidiaries
1. Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2005
2. Pro Forma Condensed Consolidated Statement of Operations for the Three Months Ended March 31, 2005
3. Pro Forma Condensed Consolidated Statement of Operations for the Year Ended December 31, 2004
(c) Exhibits:
None
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KPMG LLP |
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Three Months | ||||||||||
Year Ended | Ended | |||||||||
December 31, | March 31, | |||||||||
2004 | 2005 | |||||||||
(Unaudited) | ||||||||||
Gross income: | ||||||||||
Rental income | $ | 3,706,131 | $ | 961,907 | ||||||
Tenant expense recoveries | 1,268,015 | 347,768 | ||||||||
Other income | 78,402 | 2,428 | ||||||||
5,052,548 | 1,312,103 | |||||||||
Direct operating expenses: | ||||||||||
Operating expenses | 1,010,955 | 292,853 | ||||||||
Real estate taxes | 737,143 | 192,240 | ||||||||
Insurance | 61,589 | 15,126 | ||||||||
Total direct operating expenses | 1,809,687 | 500,219 | ||||||||
Excess of gross income over direct operating expenses | $ | 3,242,861 | $ | 811,884 | ||||||
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(1) | Business |
(2) | Basis of Presentation and Combination |
(3) | Gross Income |
2005 | $ | 3,714,123 | |||
2006 | 3,753,356 | ||||
2007 | 3,597,784 | ||||
2008 | 3,090,247 | ||||
2009 | 2,655,629 | ||||
Thereafter | 5,553,970 | ||||
Total | $ | 22,365,109 | |||
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(4) | Direct Operating Expenses |
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AmREIT | Common A | Uptown | ||||||||||||||||
Historical(1) | Offering(2) | Park(3) | Pro Forma | |||||||||||||||
ASSETS | ||||||||||||||||||
Property: | ||||||||||||||||||
Land | $ | 67,168,248 | $ | — | $ | 53,900,000 | $ | 121,068,248 | ||||||||||
Buildings | 85,960,806 | ��� | 6,814,901 | 92,775,707 | ||||||||||||||
Tenant improvements | 4,248,070 | — | 2,489,708 | 6,737,778 | ||||||||||||||
157,377,124 | — | 63,204,609 | 220,581,733 | |||||||||||||||
Less accumulated depreciation and amortization | (3,989,839 | ) | — | — | (3,989,839 | ) | ||||||||||||
Net real estate held for investment | 153,387,285 | — | 63,204,609 | 216,591,894 | ||||||||||||||
Real estate held for sale, net | 9,925,108 | — | — | 9,925,108 | ||||||||||||||
Net investment in direct financing leases held for investment | 19,217,083 | — | — | 19,217,083 | ||||||||||||||
Investment in retail partnerships and other affiliates | 1,876,889 | — | — | 1,876,889 | ||||||||||||||
Net real estate investments | 184,406,365 | — | 63,204,609 | 247,610,974 | ||||||||||||||
Intangible lease cost, net | 10,238,353 | — | 8,377,975 | 18,616,328 | ||||||||||||||
Other assets | 10,830,067 | 17,734,645 | (17,734,645 | ) | 10,830,067 | |||||||||||||
TOTAL ASSETS | $ | 205,474,785 | $ | 17,734,645 | $ | 53,847,939 | $ | 277,057,369 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
Liabilities: | ||||||||||||||||||
Notes payable | $ | 92,751,900 | $ | — | $ | 52,208,355 | (4) | $ | 144,960,255 | |||||||||
Other liabilities | 6,621,818 | — | 1,639,584 | 8,261,402 | ||||||||||||||
TOTAL LIABILITIES | 99,373,718 | — | 53,847,939 | 153,221,657 | ||||||||||||||
Minority interest | 1,104,596 | — | — | 1,104,596 | ||||||||||||||
Shareholders’ equity | 104,996,471 | 17,734,645 | — | 122,731,116 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 205,474,785 | $ | 17,734,645 | $ | 53,847,939 | $ | 277,057,369 | ||||||||||
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AmREIT | Uptown | Pro Forma | |||||||||||||||
Historical(1) | Park(2) | Adjustments | Pro Forma | ||||||||||||||
Revenues | |||||||||||||||||
Rental income and earned income | $ | 4,820,593 | $ | 1,309,675 | $ | 66,680 | (3) | $ | 6,196,948 | ||||||||
Other income | 3,421,750 | 2,428 | — | 3,424,178 | |||||||||||||
Total Revenues | 8,242,343 | 1,312,103 | 66,680 | 9,621,126 | |||||||||||||
Expenses | |||||||||||||||||
General operating and administrative | 1,651,651 | — | — | 1,651,651 | |||||||||||||
Property expense | 729,120 | 500,219 | — | 1,229,339 | |||||||||||||
Depreciation and amortization | 1,097,532 | — | 507,089 | (3) | 1,604,621 | ||||||||||||
Other expenses | 2,211,751 | — | — | 2,211,751 | |||||||||||||
Total Expenses | 5,690,054 | 500,219 | 507,089 | 6,697,362 | |||||||||||||
Operating income | 2,552,289 | 811,884 | (440,409 | ) | 2,923,764 | ||||||||||||
Interest expense | (1,517,085 | ) | — | (699,774 | )(4) | (2,216,859 | ) | ||||||||||
Other (expense) income | (18,026 | ) | — | — | (18,026 | ) | |||||||||||
Income (loss) before discontinued operations | 1,017,178 | 811,884 | (1,140,183 | ) | 688,879 | ||||||||||||
Income from discontinued operations | 340,682 | — | — | 340,682 | |||||||||||||
Pro forma net income | $ | 1,357,860 | $ | 811,884 | $ | (1,140,183 | ) | $ | 1,029,561 | ||||||||
Distributions paid to class B, C and D shareholders | (1,631,931 | ) | — | — | (1,631,931 | ) | |||||||||||
Net income (loss) available to class A shareholders | $ | (274,071 | ) | $ | 811,884 | $ | (1,140,183 | ) | $ | (602,370 | ) | ||||||
Net income per common share — basic and diluted | |||||||||||||||||
Loss before discontinued operations | $ | (0.18 | ) | $ | (0.16 | ) | |||||||||||
Income from discontinued operations | 0.10 | 0.06 | |||||||||||||||
Net income (loss) | $ | (0.08 | ) | $ | (0.10 | ) | |||||||||||
Weighted average common shares used to compute net income per share, basic and diluted | 3,471,028 | 5,871,028 | |||||||||||||||
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AmREIT | Uptown | 2004 | Pro Forma | ||||||||||||||||||
Historical(1) | Park(2) | Acquisitions(3) | Adjustments | Pro Forma | |||||||||||||||||
Revenues | |||||||||||||||||||||
Rental income and earned income | $ | 11,807,532 | $ | 4,974,146 | $ | 7,225,098 | $ | 266,721 | (4) | $ | 24,273,497 | ||||||||||
Other income | 9,951,248 | 78,402 | — | — | 10,029,650 | ||||||||||||||||
Total Revenues | 21,758,780 | 5,052,548 | 7,225,098 | 266,721 | 34,303,147 | ||||||||||||||||
Expenses | |||||||||||||||||||||
General operating and administrative | 5,719,301 | — | — | — | 5,719,301 | ||||||||||||||||
Property expense | 1,560,790 | 1,809,687 | 2,422,995 | — | 5,793,472 | ||||||||||||||||
Depreciation and amortization | 2,040,053 | — | 2,525,833 | 2,028,358 | (4) | 6,594,244 | |||||||||||||||
Other expenses | 9,270,858 | — | — | — | 9,270,858 | ||||||||||||||||
Total Expenses | 18,591,002 | 1,809,687 | 4,948,828 | 2,028,358 | 27,377,875 | ||||||||||||||||
Operating income | 3,167,778 | 3,242,861 | 2,276,270 | (1,761,637 | ) | 6,925,272 | |||||||||||||||
Interest expense | (3,375,499 | ) | — | (3,214,254 | ) | (2,799,097 | )(5) | (9,388,850 | ) | ||||||||||||
Other income (expense) | 918,228 | — | — | — | 918,228 | ||||||||||||||||
Income (loss) before discontinued operations | 710,507 | 3,242,861 | (937,984 | ) | (4,560,734 | ) | (1,545,350 | ) | |||||||||||||
Loss from discontinued operations | (122,520 | ) | — | — | — | (122,520 | ) | ||||||||||||||
Pro forma net income | $ | 587,987 | $ | 3,242,861 | $ | (937,984 | ) | $ | (4,560,734 | ) | $ | (1,667,870 | ) | ||||||||
Distributions paid to class B, C and D shareholders | (4,453,562 | ) | — | — | — | (4,453,562 | ) | ||||||||||||||
Net income (loss) available to class A shareholders | $ | (3,865,575 | ) | $ | 3,242,861 | $ | (937,984 | ) | $ | (4,560,734 | ) | $ | (6,121,432 | ) | |||||||
Net income per common share — basic and diluted Loss before discontinued operations | $ | (1.15 | ) | $ | (1.06 | ) | |||||||||||||||
Loss from discontinued operations | (0.04 | ) | (0.02 | ) | |||||||||||||||||
Net income (loss) | $ | (1.19 | ) | $ | (1.08 | ) | |||||||||||||||
Weighted average common shares used to compute net income per share, basic and diluted | 3,251,285 | 5,651,285 | |||||||||||||||||||
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
AmREIT | ||||
By: | /s/ Chad C. Braun | |||
Chad C. Braun, Chief Financial Officer | ||||
Dated: June 7, 2005
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