Exhibit (c)(1)
RONALD WHITMAN WEISS
737 PARK AVENUE
NEW YORK, NEW YORK 10021
(212) 535-2077
March 8, 2001
Board of Directors
Vinings Investment Properties Trust
2839 Paces Ferry Road
Atlanta, GA 30339-5704
Gentlemen:
We have been asked to up-date our evaluations of the value of Vinings'
share price, as of the year ending December 31, 2000. The best measure of share
market value for any public company, is the currently traded price per share on
the open market. Even when the trading market is thin, as in this instance, it
is still indicative of the value that these shares would command if liquidation
took place. The market price of Vinings' stock had shown wide fluctuations
during the past twelve-month period, and during the latter part of December,
VIPIS shares traded at their lowest point, below $2.00 per share. Therefore, we
concluded that a fair market price valuation would be in a range between $2.00
and $2.25 per share.
Although, Book Value or Net Asset Value, is not always a good measure for a
public company, it is more appropriate for a real estate investment trust, than
most other publicly owned companies. In this instance, after an allowance for
accumulated depreciation, the net share value can still be approximated at
$3.25.
Earnings per share and price earnings ratios, are not viable methods for
estimating a share value for a real estate owning company, for the reasons
stated. Cash flow and/or Adjusted Funds from Operations, is a much truer
approximation. An analysis of comparable AFFO multiples, from other real estate
investment trusts in Vinings' peer group, indicates that an appropriate fair
market value based upon AFFO Multiples, would still be in a range between $2.90
and $3.25 per share.
Finally, an estimate based upon net value of the underlying real estate
owned by Vinings, is another excellent indication for the fair per share market
value for the Vinings stock. In lieu of appraisals for each of the individual
properties, we previously used a capitalized net operating income model, based
upon the gross income for the latest verified twelve month period, which we had
prior to year end December 31, 2000. The actual year end rent and expense
numbers, reported to us at this time by the company, showed that gross possible
rents and net operating income, had both been over-stated in our original
evaluation, and reduced by the year end.
Therefore, as indicated in the attached valuation, including the joint
venture equity, a capitalization of the actual year-end net operating income
would indicate a lower revised approximate per share value of $2.66.
All of these factors indicate that we should revise our estimate of per
share value to a lower range than our original December 15, 2000, opinion of
$3.25, to a range between $2.66 and $3.25 per share. This produces an average
per share value of approximately $3.00 per share, as of the year-end, December
31, 2000.
We hereby consent to the inclusion of the fairness opinion and its
description and the report to the Board of Trustees in all required filings with
the Securities and Exchange Commission, including without limitation a Proxy
Statement and Schedule 13E-3 relating to the transaction.
Very truly yours,
/s/ Ronald Whitman Weiss
------------------------
Ronald Whitman Weiss
<page>
VININGS INVESTMENT PROPERTIES TRUST
VALUATION ANALYSIS
REVISED AS OF DECEMBER 31, 2000
----------------------------------
(EXCLUDING PBC)
ACTUALS
DECEMBER 31,
2000
--------------
GROSS POSSIBLE 11,610,408
VACANCY 784,061
CONCESSION 151,861
MODEL/OFFICE 8,458
WRITE OFFS 146,166
--------------
NET RENTAL INCOME 10,519,863
OTHER INCOME 551,837
--------------
TOTAL INCOME 11,071,700
SALARIES 1,053,166
LEASING/ADVERTISING 77,119
ADMINISTRATIVE 269,574
CORPORATE UNIT 51,228
UTILITIES 757,932
MAINTENANCE 754,522
MANAGEMENT FEES 388,736
R. E. TAX & PERS. PROP. TAXES 893,736
INSURANCE 94,386
--------------
TOTAL OPERATING EXPENSE 4,340,398
--------------
NET OPERATING INCOME 6,731,302
REPLACEMENT RESERVE 250 377,500
--------------
NOI AFTER CAPITAL 6,353,802
--------------
Portfolio Value 9.50% 66,882,122
Plus estimated PBC Value 3,000,000
--------------
69,882,122
Cost of Sale 1% 698,821
Mortgage Debt 56,742,209
--------------
REMAINING EQUITY 12,441,092
Joint Venture Equity (443,575)
--------------
Subtotal 11,997,516
Less Preferred Payoff 8,867,529
--------------
Total Remaining Equity 3,129,987
==============
Outstanding Common Shares/Units
(excludes options) 1,343,034
==============
Value per Share 2.33
==============
Value per Share (Without negative JV Equity) 2.66
==============
TRADE LINE GRAPH for VIPIS
US Equity
--------------------------
Range: 9/8/00 - 12/28/00 Period: DAILY Base Currency: USD
--------------------------------
Comp/Close/Trade/USD
--------------------------------
Last 1.9375
High 09/11/00 2.6250
Ave 2.2679
Low 12/27/00 1.9375
--------------------------------
Reflects the daily trading price for VIPIS for the period 9/8/00 through
12/28/00. Graph obtained from Bloomberg Professional on-line services. The graph
was not accompanied by a tabular representation of the data.
Copyright 2000 BLOOMBERG L.P.
PRICE TABLE
VININGS INVESTMENT PROPERTIES TRUST (VIPIS US) USD
12/28/00 TO 10/30/00
- --------------------------------------------------------------------------------
DATE PRICE DATE PRICE DATE PRICE
- --------------------------------------------------------------------------------
F F 12/8 F 11/17
T 12/28 1 15/16 T 12/7 T 11/16
W 12/27 1 15/16 W 12/6 W 11/15
T 12/26 T 12/5 2 1/16 T 11/14
M 12/25 M 12/4 M 11/13
F 12/22 F 12/1 F 11/10
T 12/21 T 11/30 T 11/9
W 12/20 W 11/29 W 11/8
T 12/19 T 11/28 T 11/7
M 12/18 M 11/27 M 11/6 2 3/16
F 12/15 F 11/24 F 11/3
T 12/14 T 11/23 T 11/2
W 12/13 W 11/22 W 11/1
T 12/12 2 T 11/21 T 10/31
M 12/11 2 M 11/20 M 10/30
Copyright 2000 BLOOMBERG L.P.
HISTORICAL PRICE TRADED CURRENCY
VININGS INVESTMENT PROPERTIES TRUST (VIPIS US)
Range: 9/8/00 to 12/28/00 Market: Trade Period: Daily
DATE PRICE CURRENCY DATE PRICE CURRENCY DATE PRICE CURRENCY
- ---------------------------------------------------------------------------------------------------------
12/28/00 1 15/16 USD 12/1/00 11/6/00 2 3/16 USD
12/27/00 1 15/16 USD 11/30/00 11/3/00
12/26/00 11/29/00 11/2/00
12/25/00 11/28/00 11/1/00
12/22/00 11/27/00 10/31/00
12/21/00 11/24/00 10/30/00
12/20/00 11/23/00 10/27/00 2 3/8 USD
12/19/00 11/22/00 10/26/00
12/18/00 11/21/00 10/25/00
12/15/00 11/20/00 10/24/00
12/14/00 11/17/00 10/23/00 2 3/8 USD
12/13/00 11/16/00 10/20/00
12/12/00 2 USD 11/15/00 10/19/00
12/11/00 2 USD 11/14/00 10/18/00 2 3/8 USD
12/8/00 11/13/00 10/17/00
12/7/00 11/10/00 10/16/00
12/6/00 11/9/00 10/13/00
12/5/00 2 1/16 USD 11/8/00 10/12/00 2 1/2 USD
12/4/00 11/7/00 10/11/00
- ---------------------------------------------------------------------------------------------------------
Copyright 2000 BLOOMBERG L.P.
CORPORATE ACTION PRICE GRAPH for VIPIS US
---------------------------------------
Range: 9/13/00 - 12/28/00 Period: DAILY Line Chart USD E
--------------------------------
Comp/Trade/USD
--------------------------------
Last 1.9375 on 12/28/00
High 2.5 on 10/12/00
Ave 2.224
Low 1.9375 on 12/28/00
--------------------------------
Reflects the market's reaction to corporate actions and how they may impact the
price of the company's stock for the period 9/13/00 through 12/28/00. Graph
obtained from Bloomberg Professional on-line services. The graph was not
accompanied by a tabular representation of the data.
Copyright 2000 BLOOMBERG L.P.
COMPARATIVE RETURNS
-------------------
Range: 1/3/00 - 12/28/00 Period: DAILY 360 Day Period
Securites Currency Prc Appr Total Return Difference Annual Eq
- --------------------------------------------------------------------------------
VIPIS US Equity USD -51.56% -51.56% -13.59% -52.05%
CCMP Index USD -38.09% -37.98% -38.39%
(* = No dividends or coupons)
Compares the daily returns of VIPIS to the daily returns of the NASDAQ Composite
Index for the period 1/3/00 through 12/28/00. Graph obtained from Bloomberg
Professional on-line services. The graph was not accompanied by a tabular
representation of the data.
Copyright 2000 BLOOMBERG L.P.