Exhibit 99.2
AmREIT
Supplemental Financial Information
June 30, 2008
(Unaudited)
Table of Contents | Page # |
Corporate Profile | 1 |
Consolidated Balance Sheets | 2 |
Consolidated Statements of Operations | 3 |
Consolidated Statements of Operations - Segments | 4 - 7 |
| |
Summary of Operating Results | |
Funds From Operations | 8 |
Dividends – All Classes of Common Shares | 8 |
Rental and Earned Income | 9 |
Real Estate Operating Revenue | 9 |
Discontinued Operations | 10 |
Interest Expense | 10 |
| |
Summary Balance Sheet Information | |
Common Share Data | 11 |
Capitalization | 11 |
| |
Debt Information | |
Outstanding Balances and Terms | 12 |
Fixed vs. Variable Rate Debt | 13 |
| |
Property & Tenant Information | |
Property Table | 14 |
Tenant Concentration | 15 |
Leasing Activity Report | 15 |
Lease Expiration Schedule | 16 |
This Supplemental Financial Information package contains historical information of the Company and is intended to supplement the Company’s Quarterly Report on Form 10-Q for the six months ended June 30, 2008. All financial information in this Supplemental Financial Information package is shown in thousands, except for per share data and share information.
Certain information contained in this Supplemental Financial Information package includes certain forward-looking statements reflecting AmREIT’s expectations in the near term that involve a number of risks and uncertainties; however, many factors may materially affect the actual results, including demand for our properties, changes in rental and occupancy rates, changes in property operating costs, interest rate fluctuations, and changes in local and general economic conditions. Accordingly, there is no assurance that AmREIT’s expectations will be realized.
Corporate Profile:
AmREIT (AMEX: AMY) is a full service real estate company dedicated to providing the highest standard of service and value to its clients, partners and investors. For 24 years, AmREIT has delivered on its vision to become the Irreplaceable Corners TM company through investments, acquisitions, value add developments and management of high quality retail and mixed-use properties. AMREIT has more than 1.4 million square feet in various stages of development, re-development or in the pipeline for its advisory funds. AmREIT is headquartered in Houston, Texas and has an office in Dallas, Texas.
Corporate Office:
8 Greenway Plaza, Suite 1000
Houston, Texas 77046
(800) 888-4400
(713) 850-0498 (fax)
www.amreit.com
Stock Exchange:
American Stock Exchange – AMY
1
Consolidated Balance Sheets:
| | | | | June 30, | | December 31, |
| | | | | | 2008 | | | | 2007 | |
ASSETS | | (unaudited) | |
Real estate investments at cost: | | | | |
| Land | | | $ | 127,551 | | | $ | 130,563 | |
| Buildings | | | 135,124 | | | | 141,045 | |
| Tenant improvements | | | 9,543 | | | | 10,105 | |
| | | | | | 272,218 | | | | 281,713 | |
| Less accumulated depreciation and amortization | | | (17,369 | ) | | | (15,626 | ) |
| | | | | | 254,849 | | | | 266,087 | |
| Real estate held for sale | | | | |
| | and investment in direct financing leases held for sale, net | | | 32,871 | | | | 22,438 | |
| Net investment in direct financing leases held for investment | | | 2,063 | | | | 2,058 | |
| Intangible lease cost, net | | | 11,226 | | | | 13,096 | |
| Investment in merchant development funds and other affiliates | | 6,789 | | | | 10,514 | |
| | Net real estate investments | | | 307,798 | | | | 314,193 | |
| | | | | | | |
Cash and cash equivalents | | | 205 | | | | 1,221 | |
Tenant receivables, net | | | 4,132 | | | | 4,398 | |
Accounts receivable, net | | | 2,570 | | | | 1,251 | |
Accounts receivable - related party | | | 3,944 | | | | 5,386 | |
Notes receivable - related party | | | 9,393 | | | | 10,442 | |
Deferred costs | | | 2,284 | | | | 2,472 | |
Other assets | | | 5,189 | | | | 4,394 | |
TOTAL ASSETS | | $ | 335,515 | | | $ | 343,757 | |
| | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
Liabilities: | | | | |
| Notes payable | | $ | 175,556 | | | $ | 168,560 | |
| Notes payable, held for sale | | | 12,570 | | | | 12,811 | |
| Accounts payable, related party | | | 376 | | | | - | |
| Accounts payable and other liabilities | | | 5,460 | | | | 7,699 | |
| Below market leases, net | | | 2,378 | | | | 3,401 | |
| Security deposits | | | 705 | | | | 674 | |
| | TOTAL LIABILITIES | | | 197,045 | | | | 193,145 | |
| | | | | | | |
Minority interest | | | 1,220 | | | | 1,179 | |
| | | | | | | |
Shareholders' equity: | | | | |
| Preferred shares, $.01 par value, 10,000,000 shares authorized, none issued | | - | | | | - | |
| Class A common shares, $.01 par value, 50,000,000 shares authorized, | | |
| | 6,634,489 and 6,626,559 shares issued, respectively | | | 66 | | | | 66 | |
| Class C common shares, $.01 par value, 4,400,000 shares authorized, | | |
| | 4,149,094 and 4,143,971 shares issued and outstanding, respectively | | 42 | | | | 41 | |
| Class D common shares, $.01 par value, 17,000,000 shares authorized, | | |
| | 11,036,170 and 11,045,763 shares issued and outstanding, respectively | | 110 | | | | 110 | |
| Capital in excess of par value | | | 185,572 | | | | 185,165 | |
| Accumulated distributions in excess of earnings | | | (39,482 | ) | | | (33,365 | ) |
| Cost of treasury shares, 1,229,253 and 337,308 Class A common shares, respectively | | (9,058 | ) | | | (2,584 | ) |
| | TOTAL SHAREHOLDERS' EQUITY | | | 137,250 | | | | 149,433 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 335,515 | | | $ | 343,757 | |
2
Consolidated Statements of Operations:
| | | | Three months ended June 30, | Six Months Ended June 30, |
| | | | | 2008 | | | 2007 | | 2008 | | | | 2007 | |
| | | | | | | | | | |
Revenues: | | | | | | | | |
| Rental income from operating leases | $ | 8,142 | | | $ | 7,504 | | | $ | 15,628 | | | $ | 14,396 | |
| Earned income from direct financing leases | | 60 | | | | 61 | | | | 120 | | | | 120 | |
| Real estate fee income | | 115 | | | | 160 | | | | 285 | | | | 854 | |
| Real estate fee income - related party | | 1,311 | | | | 349 | | | | 2,743 | | | | 1,062 | |
| Construction revenues | | 698 | | | | 695 | | | | 1,130 | | | | 792 | |
| Construction revenues - related party | | 1,650 | | | | 219 | | | | 2,554 | | | | 1,095 | |
| Securities commission income - related party | | 424 | | | | 1,484 | | | | 949 | | | | 2,477 | |
| Asset management fee income - related party | | 377 | | | | 312 | | | | 753 | | | | 596 | |
| | Total revenues | | | 12,777 | | | | 10,784 | | | | 24,162 | | | | 21,392 | |
| | | | | | | | | | |
Expenses: | | | | | | | | |
| General and administrative | | 2,288 | | | | 1,818 | | | | 4,706 | | | | 3,976 | |
| Property expense | | | 2,456 | | | | 2,006 | | | | 4,425 | | | | 3,731 | |
| Construction costs | | | 2,221 | | | | 868 | | | | 3,342 | | | | 1,729 | |
| Legal and professional | | 432 | | | | 470 | | | | 876 | | | | 763 | |
| Real estate commissions | | 5 | | | | 26 | | | | 42 | | | | 447 | |
| Securities commissions | | 355 | | | | 1,245 | | | | 840 | | | | 2,074 | |
| Depreciation and amortization | | 2,606 | | | | 1,925 | | | | 4,505 | | | | 3,834 | |
| | Total expenses | | | 10,363 | | | | 8,358 | | | | 18,736 | | | | 16,554 | |
| | | | | | | | | | |
Operating income | | | 2,414 | | | | 2,426 | | | | 5,426 | | | | 4,838 | |
| | | | | | | | | | |
Other income (expense): | | | | | | | |
| Interest and other income - related party | | 229 | | | | 250 | | | | 503 | | | | 500 | |
| Loss from merchant development funds and other affiliates | | (178 | ) | | | (15 | ) | | | (321 | ) | | | (27 | ) |
| Income tax benefit for taxable REIT subsidiary | | 176 | | | | 224 | | | | 252 | | | | 374 | |
| Interest expense | | | (2,371 | ) | | | (2,086 | ) | | | (4,802 | ) | | | (4,176 | ) |
| Minority interest in income of consolidated joint ventures | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | |
Income before discontinued operations | | 270 | | | | 799 | | | | 1,058 | | | | 1,509 | |
| | | | | | | | | | |
Income (loss) from discontinued operations, net of taxes | | (891 | ) | | | 302 | | | | (682 | ) | | | 595 | |
| | | | | | | | | | |
Net income | | | (621 | ) | | | 1,101 | | | | 376 | | | | 2,104 | |
| | | | | | | | | | |
Distributions paid to class B, C and D shareholders | | (2,504 | ) | | | (2,711 | ) | | | (5,002 | ) | | | (5,416 | ) |
| | | | | | | | | | |
Net loss available to class A shareholders | $ | (3,125 | ) | | $ | (1,610 | ) | | $ | (4,626 | ) | | $ | (3,312 | ) |
| | | | | | | | | | |
Net loss per class A common share - basic and diluted |
| Loss before discontinued operations | $ | (0.39 | ) | | $ | (0.30 | ) | | $ | (0.66 | ) | | $ | (0.61 | ) |
| Income (loss) from discontinued operations | $ | (0.15 | ) | | $ | 0.05 | | | $ | (0.11 | ) | | $ | 0.09 | |
| Net loss | | $ | (0.54 | ) | | $ | (0.25 | ) | | $ | (0.77 | ) | | $ | (0.52 | ) |
| | | | | | | | | | |
Weighted average class A common shares used to | |
| compute net loss per share, basic and diluted | | 5,775 | | | | 6,411 | | | | 5,995 | | | | 6,366 | |
3
Segmented Statements of Operations:
| | | | | | Asset Advisory | | |
For the three months ended June 30, 2008 (in thousands) | Portfolio | | Real Estate Operations | | Securities | | Merchant Development Funds | | Total |
Rental income | $ | 8,202 | | | $ | - | | | $ | - | | | $ | - | | | $ | 8,202 | |
Real estate fee income | | | | 1,395 | | | | 31 | | | | - | | | | 1,426 | |
Construction revenues | | - | | | | 2,348 | | | | - | | | | - | | | | 2,348 | |
Securities commission income | | - | | | | - | | | | 424 | | | | - | | | | 424 | |
Asset management fee income | | - | | | | - | | | | - | | | | 377 | | | | 377 | |
| Total revenue | | 8,202 | | | | 3,743 | | | | 455 | | | | 377 | | | | 12,777 | |
| | | | | | | | | | |
General and administrative | | 452 | | | | 1,387 | | | | 420 | | | | 28 | | | | 2,287 | |
Property expense | | 2,465 | | | | (8 | ) | | | | | - | | | | 2,457 | |
Construction costs | | - | | | | 2,221 | | | | - | | | | - | | | | 2,221 | |
Legal and professional | | 342 | | | | 50 | | | | 40 | | | | | | 432 | |
Real estate commissions | | - | | | | 5 | | | | - | | | | - | | | | 5 | |
Securities commissions | | - | | | | 21 | | | | 334 | | | | - | | | | 355 | |
Depreciation and amortization | | 2,606 | | | | - | | | | - | | | | - | | | | 2,606 | |
| Total expenses | | 5,865 | | | | 3,676 | | | | 794 | | | | 28 | | | | 10,363 | |
| | | | | | | | | | |
Interest expense | | (2,144 | ) | | | 54 | | | | (95 | ) | | | (186 | ) | | | (2,371 | ) |
Other income/ (expense) | | 13 | | | | 82 | | | | 183 | | | | (51 | ) | | | 227 | |
| | | | | | | | | | |
Income (loss) from discontinued operations | | 135 | | | | (1,026 | ) | | | - | | | | - | | | | (891 | ) |
| | | | | | | | | | |
| Net income (loss) | $ | 341 | | | $ | (823 | ) | | $ | (251 | ) | | $ | 112 | | | $ | (621 | ) |
4
| | | | | | Asset Advisory | | |
For the three months ended June 30, 2007 (in thousands) | Portfolio | | Real Estate Operations | Securities | | Merchant Development Funds | | Total |
Rental income | $ | 7,565 | | | $ | - | | | $ | - | | | $ | - | | | $ | 7,565 | |
Real estate fee income | | - | | | | 509 | | | | - | | | | - | | | | 509 | |
Construction revenues | | - | | | | 914 | | | | - | | | | - | | | | 914 | |
Securities commission income | | - | | | | - | | | | 1,484 | | | | - | | | | 1,484 | |
Asset management fee income | | - | | | | - | | | | - | | | | 312 | | | | 312 | |
| Total revenue | | 7,565 | | | | 1,423 | | | | 1,484 | | | | 312 | | | | 10,784 | |
| | | | | | | | | | |
General and administrative | | 197 | | | | 1,235 | | | | 361 | | | | 25 | | | | 1,818 | |
Property expense | | 1,970 | | | | 36 | | | | | | - | | | | 2,006 | |
Construction costs | | - | | | | 868 | | | | - | | | | - | | | | 868 | |
Legal and professional | | 337 | | | | 83 | | | | 50 | | | | - | | | | 470 | |
Real estate commissions | | - | | | | 26 | | | | - | | | | - | | | | 26 | |
Securities commissions | | - | | | | - | | | | 1,245 | | | | - | | | | 1,245 | |
Depreciation and amortization | | 1,925 | | | | - | | | | - | | | | - | | | | 1,925 | |
| Total expenses | | 4,429 | | | | 2,248 | | | | 1,656 | | | | 25 | | | | 8,358 | |
| | | | | | | | | | |
Interest expense | | (1,939 | ) | | | (139 | ) | | | (8 | ) | | | | | (2,086 | ) |
Other income/ (expense) | | 20 | | | | 463 | | | | (21 | ) | | | (3 | ) | | | 459 | |
| | | | | | | | | | |
Income (loss) from discontinued operations | | 291 | | | | 11 | | | | - | | | | - | | | | 302 | |
| | | | | | | | | | |
| Net income (loss) | $ | 1,508 | | | $ | (490 | ) | | $ | (201 | ) | | $ | 284 | | | $ | 1,101 | |
5
| | | | | | Asset Advisory | | |
For the six months ended June 30, 2008 (in thousands) | Portfolio | | Real Estate Operations | | Securities | | Merchant Development Funds | | Total |
Rental income | $ | 15,748 | | | $ | - | | | $ | - | | | $ | - | | | $ | 15,748 | |
Real estate fee income | | | | 2,928 | | | | 100 | | | | - | | | | 3,028 | |
Construction revenues | | - | | | | 3,684 | | | | - | | | | - | | | | 3,684 | |
Securities commission income | | - | | | | - | | | | 949 | | | | - | | | | 949 | |
Asset management fee income | | - | | | | - | | | | - | | | | 753 | | | | 753 | |
| Total revenue | | 15,748 | | | | 6,612 | | | | 1,049 | | | | 753 | | | | 24,162 | |
| | | | | | | | | | |
General and administrative | | 760 | | | | 2,952 | | | | 926 | | | | 67 | | | | 4,705 | |
Property expense | | 4,415 | | | | 11 | | | | | | - | | | | 4,426 | |
Construction costs | | - | | | | 3,342 | | | | - | | | | - | | | | 3,342 | |
Legal and professional | | 662 | | | | 86 | | | | 128 | | | | | | 876 | |
Real estate commissions | | - | | | | 42 | | | | - | | | | - | | | | 42 | |
Securities commissions | | - | | | | 23 | | | | 817 | | | | - | | | | 840 | |
Depreciation and amortization | | 4,505 | | | | - | | | | - | | | | - | | | | 4,505 | |
| Total expenses | | 10,342 | | | | 6,456 | | | | 1,871 | | | | 67 | | | | 18,736 | |
| | | | | | | | | | |
Interest expense | | (4,297 | ) | | | 27 | | | | (240 | ) | | | (292 | ) | | | (4,802 | ) |
Other income/ (expense) | | 233 | | | | 26 | | | | 354 | | | | (179 | ) | | | 434 | |
| | | | | | | | | | |
Income (loss) from discontinued operations | | 325 | | | | (1,007 | ) | | | - | | | | - | | | | (682 | ) |
| | | | | | | | | | |
| Net income (loss) | $ | 1,667 | | | $ | (798 | ) | | $ | (708 | ) | | $ | 215 | | | $ | 376 | |
6
| | | | | | Asset Advisory | | |
For the six months ended June 30, 2007 (in thousands) | Portfolio | | Real Estate Operations | Securities | | Merchant Development Funds | | Total |
Rental income | $ | 14,516 | | | $ | - | | | $ | - | | | $ | - | | | $ | 14,516 | |
Real estate fee income | | - | | | | 1,916 | | | | - | | | | - | | | | 1,916 | |
Construction revenues | | - | | | | 1,887 | | | | - | | | | - | | | | 1,887 | |
Securities commission income | | - | | | | - | | | | 2,477 | | | | - | | | | 2,477 | |
Asset management fee income | | - | | | | - | | | | - | | | | 596 | | | | 596 | |
| Total revenue | | 14,516 | | | | 3,803 | | | | 2,477 | | | | 596 | | | | 21,392 | |
| | | | | | | | | | |
General and administrative | | 590 | | | | 2,449 | | | | 850 | | | | 87 | | | | 3,976 | |
Property expense | | 3,658 | | | | 73 | | | | | | - | | | | 3,731 | |
Construction costs | | - | | | | 1,729 | | | | - | | | | - | | | | 1,729 | |
Legal and professional | | 571 | | | | 130 | | | | 62 | | | | - | | | | 763 | |
Real estate commissions | | - | | | | 447 | | | | - | | | | - | | | | 447 | |
Securities commissions | | - | | | | - | | | | 2,074 | | | | - | | | | 2,074 | |
Depreciation and amortization | | 3,834 | | | | - | | | | - | | | | - | | | | 3,834 | |
| Total expenses | | 8,653 | | | | 4,828 | | | | 2,986 | | | | 87 | | | | 16,554 | |
| | | | | | | | | | |
Interest expense | | (3,901 | ) | | | (264 | ) | | | (11 | ) | | | | | (4,176 | ) |
Other income/ (expense) | | 271 | | | | 585 | | | | 96 | | | | (105 | ) | | | 847 | |
| | | | | | | | | | |
Income (loss) from discontinued operations | | 583 | | | | 12 | | | | - | | | | - | | | | 595 | |
| | | | | | | | | | |
| Net income (loss) | $ | 2,816 | | | $ | (692 | ) | | $ | (424 | ) | | $ | 404 | | | $ | 2,104 | |
7
AmREIT
Summary of Operating Results
| | Three Months | | Six Months |
| | Ended June 30, | | Ended June 30, |
Funds From Operations: | | 2008 | | 2007 | | 2008 | | 2007 |
Income – before discontinued operations | | $ | 270 | | $ | 799 | | $ | 1.058 | | $ | 1,509 |
Income – from discontinued operations | | | (891) | | | 302 | | | (682) | | | 595 |
Plus depreciation of real estate assets – from operations | | | 2,618 | | | 1,928 | | | 4,531 | | | 3,836 |
Plus depreciation of real estate assets – from | | | 35 | | | 43 | | | 67 | | | 78 |
discontinued operations | | | | | | | | | | | | |
Adjustments for nonconsolidated affiliates | | | 228 | | | 19 | | | 522 | | | 36 |
Less class B, C & D distributions | | | (2,504) | | | (2,711) | | | (5,002) | | | (5,416) |
Total Funds From Operations available to class A | | | | | | | | | | | | |
shareholders | | $ | (244) | | $ | 380 | | $ | 494 | | $ | 638 |
| | | | | | | | | | | | |
Weighted average Class A shares outstanding | | | 5,775 | | | 6,411 | | | 5,995 | | | 6,366 |
| | | | | | | | | | | | |
Funds from operations per Class A share | | $ | (0.04) | | | 0.06 | | | 0.08 | | | 0.10 |
| | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | |
Class A Common share dividends per share | | $ | 0.12 | | $ | 0.12 | | $ | 0.50 | | $ | 0.50 |
| | | | | | | | | | | | |
Class B Common share dividends per share (1) | | $ | - | | $ | 0.19 | | $ | - | | $ | 0.76 |
| | | | | | | | | | | | |
Class C Common share dividends per share (2) | | $ | 0.17 | | $ | 0.17 | | $ | 0.68 | | $ | 0.68 |
| | | | | | | | | | | | |
Class D Common share dividends per share (3) | | $ | 0.16 | | $ | 0.16 | | $ | 0.64 | | $ | 0.64 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
(1) The class B common shares received a cumulative preferred dividend, fixed at 8%, payable quarterly. On December 20, 2007, we redeemed our remaining class B common shares at $10.18 per share.
(2) The class C common shares receive a preferred dividend, fixed at 7%, payable monthly. The shares are convertible into our class A common shares based on 110% of invested capital (i.e. $1,000 in class C common shares will convert into $1,100 in class A common shares) after the seventh anniversary of issuance (beginning in August 2010). We have the right to force conversion of the class C common shares into Class A common shares on a one-for-one basis or to redeem the shares at a cash redemption price of $11.00 per share at the holder’s option.
(3) The class D common shares receive a fixed 6.5% annual dividend, payable monthly. The shares are convertible into our class A common shares based on 107.7% of invested capital (i.e. $1,000 in class D common shares will convert into $1,077 in class A common shares) after the seventh anniversary of issuance (beginning in August 2011). The class D common shares became callable by the Company beginning in July 2005, based on the same conversion formula, prorated for the time the shares were outstanding (107.7% of invested capital).
8
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
Rental and Earned Income: | | | 2008 | | | | 2007 | | | 2008 | | | | 2007 |
Base minimum rent | | $ | 5,488 | | | $ | 5,161 | | $ | 10,856 | | | $ | 10,198 |
Earned income from direct financing leases | | | 60 | | | | 61 | | | 120 | | | | 120 |
Straight line rent | | | (54 | ) | | | 164 | | | 11 | | | | 314 |
Over/Under market rent | | | 801 | | | | 50 | | | 848 | | | | 81 |
Percentage rent | | | (20 | ) | | | 38 | | | (20 | ) | | | 25 |
Tenant reimbursements | | | 1,927 | | | | 1,938 | | | 3,933 | | | | 3,625 |
Lease termination fees | | | - | | | | 153 | | | - | | | | 153 |
| | | | | | | | |
Total Rental and Earned Income | | $ | 8,202 | | | $ | 7,565 | | $ | 15,748 | | | $ | 14,516 |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
Real Estate Operating Revenue: | | 2008 | | 2007 | | 2008 | | 2007 |
| | | | | | | | |
Development and construction management fees | | | | | | | | |
Merchant development funds and affiliates | | $ | 173 | | | $ | 45 | | | $ | 215 | | | $ | 453 | |
Unrelated third parties | | | 78 | | | | 92 | | | | 142 | | | | 158 | |
Leasing and brokerage commissions | | | | | | | | |
Merchant development funds and affiliates | | | 867 | | | | 95 | | | | 1,967 | | | | 193 | |
Unrelated third parties | | | 37 | | | | 68 | | | | 143 | | | | 696 | |
Property management fees | | | | | | | | |
Merchant development funds and affiliates | | | 271 | | | | 209 | | | | 561 | | | | 416 | |
Unrelated third parties | | | - | | | | - | | | | | | - | |
Total Real Estate Operating Revenue | | $ | 1,426 | | | $ | 509 | | | $ | 3,028 | | | $ | 1,916 | |
| | | | | | | | |
Percent attributable to merchant development funds and affiliates | | 92 | % | | | 69 | % | | | 91 | % | | | 55 | % |
Percent attributable to unrelated third parties | | 8 | % | | | 31 | % | | | 9 | % | | | 45 | % |
9
| | Three months ended | Six months ended |
| | June 30 | | June 30 |
| | | 2008 | | | | 2007 | | | 2008 | | | | 2007 |
Rental revenue | $ | 428 | | | $ | 273 | | $ | 686 | | | $ | 487 |
Earned income from direct financing leases | | 443 | | | | 447 | | | 887 | | | | 895 |
| Total revenues | | 871 | | | | 720 | | | 1,573 | | | | 1,382 |
| | | | | | | | |
Property expense | | 29 | | | | 33 | | | 125 | | | | 30 |
Other general and administrative | | (6 | ) | | | 13 | | | (1 | ) | | | 14 |
Federal income tax expense | | (171 | ) | | | 9 | | | (157 | ) | | | 19 |
Legal and professional | | 18 | | | | 12 | | | 44 | | | | 16 |
Depreciation and amortization | | 35 | | | | 43 | | | 67 | | | | 78 |
Minority interest | | 198 | | | | 34 | | | 229 | | | | 75 |
Impairment Charge | | 1,332 | | | | - | | | 1,332 | | | | - |
Interest expense | | 327 | | | | 274 | | | 616 | | | | 555 |
| Total expenses | | 1,762 | | | | 418 | | | 2,255 | | | | 787 |
Income (loss) from discontinued operations | | (891 | ) | | | 302 | | | (682 | ) | | | 595 |
Basic and diluted income from discontinued operations | | | | | | | |
| per class A common share | $ | (0.15 | ) | | $ | 0.05 | | $ | (0.11 | ) | | $ | 0.09 |
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
Interest Expense: | | | 2008 | | | | 2007 | | | | 2008 | | | | 2007 | |
Interest paid – floating rate | | $ | 369 | | | $ | 72 | | | $ | 785 | | | $ | 429 | |
Interest paid – fixed rate | | | 1,980 | | | | 2,001 | | | | 3,970 | | | | 3,726 | |
Loan cost amortization | | | 82 | | | | 71 | | | | 166 | | | | 138 | |
Out-of-market debt amortization | | | (60 | ) | | | (58 | ) | | | (119 | ) | | | (117 | ) |
Total Interest Expense | | $ | 2,371 | | | $ | 2,086 | | | $ | 4,802 | | | $ | 4,176 | |
10
AmREIT
Summary Balance Sheet Information
| | | June 30, 2008 | | | December 31, 2007 |
Class A Common Share Data: | | | | |
| Closing market price | | $ | 7.15 | | | | $ | 7.16 | |
| | | | | | |
| Dividend yield | | | 6.99 | % | | | | 6.98 | % |
| | | | | | |
| 90-day average trading volume | | 16,503 | | | | | 9,866 | |
| | | | | | |
| | | | | | |
Total Capitalization: | | | | | |
| | | | | | |
| Debt | | $ | 188,126 | | * | | $ | 181,371 | |
| Class A common shares at market | | 41,155 | | | | | 45,354 | |
| Class C common shares as converted | | 45,640 | | | | | 45,584 | |
| Class D common shares as converted | | 118,860 | | | | | 118,963 | |
| | Total Capitalization | $ | 393,781 | | | | $ | 391,272 | |
| | | | | | |
| Debt to Total Capitalization | | 47.8 | % | | | | 46.4 | % |
| | | | | | |
* Includes debt associated with assets held for sale in the amount of $12,570 as of June 30,2008 | |
11
AmREIT
Debt Information
Description | Amount Outstanding 6-30-2008 | Amount Outstanding 12-31-2007 | Interest Rate | Annual Debt Service | Maturity Date |
MacArthur Park | $ 13,410 | $ 13,410 | 6.17% | $ 827 | 12/1/2008 |
2008 Maturities | $ 13,410 | $ 13,410 | | | |
| | | | | |
Credit Facility | $ 37,976 | $ 30,439 | 3.56% | $ 1,352 | 10/30/2009 |
2009 Maturities | 37,976 | 30,439 | | | |
| | | | | |
Sugarland IHOP | $ 1,087 | $ 1,110 | 8.25% | $ 138 | 3/1/2011 |
Sugar Land Plaza | 2,243 | 2,258 | 7.60% | 203 | 11/1/2011 |
2011 Maturities | $ 3,330 | $ 3,368 | | | |
| | | | | |
AAA CTL Notes (3) | $ 12,570 | $ 12,811 | 7.72% - 7.89% | $ 1,110 | 04/2012-08/2012 |
5115 Buffalo Spdwy. | 2,682 | 2,699 | 7.58% | 241 | 5/11/2012 |
2012 Maturities | $ 15,252 | $ 15,510 | | | |
| | | | | |
Cinco Ranch | $ 8,086 | $ 8,158 | 5.60% | $ 601 | 7/10/2013 |
Plaza in the Park | 17,089 | 17,243 | 5.60% | 1,270 | 7/10/2013 |
2013 Maturities | $ 25,175 | $ 25,401 | | | |
| | | | | |
Uptown Park | $ 49,000 | $ 49,000 | 5.37% | $ 2,631 | 6/1/2015 |
2015 Maturities | $ 49,000 | $ 49,000 | | | |
| | | | | |
Southbank - Riverwalk | $ 20,000 | $ 20,000 | 5.91% | $ 1,182 | 6/1/2016 |
2016 Maturities | $ 20,000 | $ 20,000 | | | |
| | | | | |
Bakery Square | $ 3,564 | $ 3,704 | 8.00% | $ 571 | 2/10/2017 |
Uptown Plaza Dallas | $ 19,900 | $ 19,900 | 5.64% | $ 783 | 4/1/2017 |
2017 Maturities | $ 23,464 | $ 23,604 | | | |
| | | | | |
Total Maturities (2) | $ 187,607 | $ 180,732 | | | |
| | | | | |
(1) Our revolving credit facility is a variable-rate debt instrument, and its outstanding balance fluctuates throughout the year based on our liquidity needs. Annual Debt Service on this debt instrument assumes that the amount outstanding and the interest rate as of June 30, 2008 remain constant through maturity. |
| | | | | |
(2) Total maturities above are $519 thousand and $639 thousand less than total debt as reported in our consolidated financial statements as of June 30, 2008 and December 31, 2007, respectively, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions. |
| | | | | |
(3) The associated assets are held for sale as of June 30, 2008 and December 31, 2007. |
12
Fixed vs. Variable Rate Debt: | | | | | | |
| | | June 30, | | % of | | | December 31, | | % of |
| | | 2008 | | Total | | | 2007 | | Total |
| | | | | | | | | | |
Variable Rate | | $ | 37,976 | | 20.2% | | $ | 30,439 | | 6.1% |
Fixed Rate* | | | 150,150 | | 79.8% | | | 150,932 | | 93.9% |
| | $ | 188,126 | | 100.0% | | $ | 181,371 | | 100.0% |
| | | | | | | | | | |
| | | | | | | | | | |
*Includes debt of $12,570 associated with assets held for sale as of June 30, 2008 |
13
AmREIT
Property & Tenant Information
Grocery Anchored Shopping Centers | | City | | State | | GLA | | ABR | | % Leased |
1 | | AmREIT C-Ranch LP | | Houston | | TX | | 97,297 | | $ 1,259,937 | | 100% |
2 | | MacArthur Park | | Irving | | TX | | 237,381 | | 3,923,084 | | 97% |
3 | | Plaza in the Park | | Houston | | TX | | 144,062 | | 2,659,456 | | 98% |
3 | | Grocery Anchored Shopping Centers Total | | | | | | 478,740 | | $ 7,842,477 | | |
| | | | | | | | | | | | |
Neighborhood Lifestyle & Community Shopping Center | | City | | State | | GLA | | ABR | | % Leased |
1 | | Bakery Square | | Houston | | TX | | 34,614 | | $ 855,186 | | 100% |
2 | | Courtyard on Post Oak | | Houston | | TX | | 13,597 | | 477,361 | | 100% |
3 | | Sugarland Plaza | | Sugarland | | TX | | 16,750 | | 349,612 | | 100% |
4 | | Terrace Shops | | Houston | | TX | | 16,395 | | 443,752 | | 100% |
5 | | Uptown Plaza (including CVS) | | Houston | | TX | | 28,000 | | 1,242,311 | | 100% |
6 | | Uptown Park | | Houston | | TX | | 169,112 | | 5,341,019 | | 99% |
7 | | Woodlands Plaza | | The Woodlands | | TX | | 20,018 | | 299,199 | | 100% |
8 | | Southbank - Riverwalk | | San Antonio | | TX | | 46,673 | | 1,536,786 | | 100% |
9 | | 584 N. Germantown Parkway (2) | | Memphis | | TN | | 15,000 | | 193,903 | | 75% |
10 | | Uptown Plaza - Dallas | | Dallas | | TX | | 33,840 | | 1,186,363 | | 71% |
10 | | Community Shopping Centers Total | | | | | | 393,999 | | $ 11,925,492 | | |
| | | | | | | | | | | | |
Single Tenant (Ground Leases) - Land | | City | | State | | GLA | | ABR | | % Leased |
1 | | 410-Blanco (Citibank) | | San Antonio | | TX | | 4,439 | | $ 159,979 | | 100% |
2 | | Carlson Restaurants | | Hanover | | MD | | 6,802 | | 141,674 | | 100% |
3 | | Darden (2) | | Peachtree City | | GA | | 6,867 | | 79,366 | | 100% |
4 | | CVS Corporation (Eckerds at Yorktown) | | Houston | | TX | | 13,824 | | 327,167 | | 100% |
5 | | Fontana Tract - (land) (2) | | Dallas | | TX | | 0 | | 0 | | 100% |
6 | | Commerce & Zarzamora (land) | | San Antonio | | TX | | 0 | | 0 | | 100% |
7 | | Washington Mutual (2) | | Houston | | TX | | 3,685 | | 98,155 | | 100% |
8 | | Washington Mutual (2) | | The Woodlands | | TX | | 3,685 | | 63,996 | | 100% |
9 | | Woodlands Ring Road - Ground Leases | | The Woodlands | | TX | | 66,349 | | 669,759 | | 100% |
9 | | Single Tenant (Ground Leases) Total | | | | | | 105,651 | | $ 1,540,096 | | |
| | | | | | | | | | | | |
Single Tenant (Fee Simple) | | City | | State | | GLA | | ABR | | % Leased |
1 | | AFC, Inc. | | Atlanta | | GA | | 2,583 | | $ 119,279 | | 100% |
2 | | Advance Auto | | Aurora | | IL | | 7,000 | | Note (1) (2) (3) (4) | | 0% |
3 | | Advance Auto | | St. Louis | | MO | | 7,000 | | Note (1) (2) (3) (4) | | 0% |
4 | | Advance Auto (land) | | Washington | | MO | | 0 | | Note (1) (2) (3) (4) | | 0% |
5 | | McAlister's Deli | | Champaign | | IL | | 7,000 | | 175,392 | | 100% |
6 | | McAlister's Deli | | Peoria | | IL | | 3,426 | | 153,000 | | 100% |
7 | | Sunbelt Rental (2 acres of land) | | Champaign | | IL | | 0 | | Note (1) (2) (3) | | 0% |
8 | | Carlson Restaurants | | Houston | | TX | | 8,500 | | 215,000 | | 100% |
9 | | Golden Corral | | Houston | | TX | | 12,000 | | 210,450 | | 100% |
10 | | Golden Corral (2) | | Humble | | TX | | 12,000 | | 208,941 | | 100% |
11 | | IHOP Corporation #1483 | | Sugarland | | TX | | 4,020 | | 190,284 | | 100% |
12 | | IHOP Corporation #1737 (5) | | Centerville | | UT | | 4,020 | | 163,836 | | 100% |
13 | | IHOP Corporation #4462 (5) | | Memphis | | TN | | 4,020 | | 179,460 | | 100% |
14 | | IHOP Corporation #5318 | | Topeka | | KS | | 4,020 | | 159,504 | | 100% |
14 | | Single Tenant (Fee Simple) Total | | | | | | 75,589 | | $ 1,775,146 | | |
| | | | | | | | | | | | |
Single Tenant (Leasehold) | | City | | State | | GLA | | ABR | | % Leased |
15 | | Single Tenant (Leasehold) Total (5) | | Various | | Various | | 60,300 | | $ 1,535,712 | | 100% |
| | | | | | | | | | | | |
| | Company Total Sq. Ft. | | | | | | 1,114,279 | | $ 24,618,923 | | |
14
(1) | | Under Development (GLA represents proposed leasable square footage) |
(2) | | Held for Sale |
(3) | | Held in joint venture of which we are the managing 50% owner. |
(4) | | Advance Auto properties are located in MO and IL. Each of the properties has a proposed GLA of 7,000 square feet. |
(5) | | IHOP properties are located in NM, LA, TX, CA, TN, CO, VA, NY, OR, KS, and MO. Each of the properties has a GLA of 4,020 square feet. These properties are held by a consolidated subsidiary, 75.0% of which is owned by us, 19.6% of which is owned by AmREIT Income & Growth Corporation, one of our merchant development funds, and the remainder of which is owned by unaffiliated third parties. We have assigned to management approximately 50% of our back-end participation interest in this entity as part of our long-term incentive compensation program. Accordingly, approximately half of the future net cash flows from such participation interest are owned by management. |
Top Tenants by revenue concentration for the six months ended June 30, 2008:
| | Three months ended | | Six months ended |
| | June 30, | | June 30, |
Tenant | | | 2008 | | | 2007 | | | 2008 | | | 2007 |
IHOP Corporation | | $ | 618 | | $ | 562 | | $ | 1,117 | | $ | 1,124 |
Kroger | | | 573 | | | 1,111 | | | 1,102 | | | 1,696 |
CVS | | | 264 | | | 298 | | | 527 | | | 562 |
Grotto | | | 289 | | | 263 | | | 465 | | | 524 |
Hard Rock Cafe | | | 182 | | | 162 | | | 352 | | | 340 |
Linens 'N Things | | | 171 | | | 318 | | | 342 | | | 437 |
Champps Americana | | | 143 | | | 139 | | | 286 | | | 277 |
TGI Fridays | | | 106 | | | 105 | | | 217 | | | 204 |
Paesanos | | | 119 | | | 142 | | | 238 | | | 296 |
Golden Corral | | | 105 | | | 91 | | | 203 | | | 182 |
| | $ | 2,570 | | $ | 3,191 | | $ | 4,850 | | $ | 5,642 |
Leasing Activity for the quarter ended June 30, 2008:
| | | | | | Rent per sq. ft. | | |
| | # of leases | | Total sq. ft. | | New Rent | | Old Rent | | % Change |
New leases | | 7 | | 12,414 | | $26.10 | | N/A | | |
| | | | | | | | | | |
Activity on existing leases: | | | | | | | | | | |
Lease renewals | | 2 | | 3,882 | | $33.06 | | $29.02 | | 13.91% |
Non-renewals | | 2 | | 9,159 | | N/A | | $41.60 | | N/A |
Cancelled leases | | 1 | | 1,053 | | N/A | | $29.00 | | N/A |
15
Lease Expirations by Year: | | |
| | | | | | | |
| | | | | | | |
| | | Number of | | | | |
| Expiration | | Leases | | Square | | Percent |
| Year | | Expiring | | Footage | | of Total |
| 2008 | | 9 | | 22,109 | | 2.07% |
| 2009 | | 29 | | 78,605 | | 7.36% |
| 2010 | | 31 | | 130,778 | | 12.24% |
| 2011 | | 49 | | 186,967 | | 17.50% |
| 2012 | | 21 | | 66,168 | | 6.19% |
| 2013 | | 27 | | 93,961 | | 8.80% |
| 2014 | | 9 | | 36,370 | | 3.41% |
| 2015 | | 2 | | 7,251 | | 0.68% |
| 2016 | | 11 | | 48,268 | | 4.52% |
| 2017 | | 7 | | 47,090 | | 4.41% |
| 2018 | | 2 | | 2,737 | | 0.26% |
| 2019 | | 1 | | 4,020 | | 0.38% |
| 2020 | | 4 | | 75,991 | | 7.11% |
| 2021 | | 4 | | 89,676 | | 8.40% |
| 2022 | | 2 | | 4,020 | | 0.38% |
| 2023 | | 1 | | 63,373 | | 5.93% |
| 2024 | | 3 | | 21,864 | | 2.05% |
| 2025 | | 7 | | 45,597 | | 4.27% |
| 2026 | | 4 | | 16,080 | | 1.51% |
| 2027 | | 3 | | 12,060 | | 1.13% |
| 2056 | | 1 | | 15,120 | | 1.42% |
| | | 227 | | 1,068,105 | | |
16