VININGS INVESTMENT PROPERTIES TRUST
AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
The unaudited consolidated statements of operations are presented as if the
Trust acquired The Thicket Apartments as of the beginning of each period
presented. In management's opinion, all adjustments necessary to present fairly
the effects of the acquisition of The Thicket Apartments have been made.
The unaudited pro forma statements of operations are not necessarily indicative
of what the actual results of operations of the Company would have been assuming
the Trust had acquired the apartment community as of the beginning of each
period presented, nor do they purport to represent the results of operations for
future periods.
The assets and liabilities associated with the acquisition of The Thicket
Apartments, on June 28, 1996, are incorporated in the financial statements on
Form 10-Q for the period ended June 30, 1996 as filed with the Securities and
Exchange Commission. Therefore, a pro forma balance sheet is not presented.
VININGS INVESTMENT PROPERTIES TRUST
AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
THE ADDITIONAL
COMPANY THICKET PRO FORMA COMPANY
HISTORICAL APARTMENTS ADJUSTMENTS PRO FORMA
---------- ---------- ----------- ---------
REVENUES
Rental revenue $329,622 $852,397 (A) $1,182,019
Other property revenues 0 24,213 (A) 24,213
-------------- --------------- --------------
Total property revenues 329,622 876,610 1,206,232
Miscellaneous income 141,229 141,229
Interest income 91,903 91,903
-------------- --------------- --------------
233,132 233,132
-------------- --------------- --------------
Total revenues 562,754 876,610 1,439,364
-------------- --------------- --------------
EXPENSES
Investment advisor's fees 333,461 333,461
Trustees' fees and expenses 43,294 43,294
Professional fees 378,690 378,690
Other operating expenses 165,656 165,656
Property operating and maintenance 108,973 400,304 (A) 509,277
Depreciation and amortization 40,900 181,059 (B) 221,959
Interest expense 0 398,347 (C) 398,347
-------------- --------------- ---------------- --------------
Total expenses 1,070,974 400,304 579,406 2,050,684
-------------- --------------- ---------------- --------------
Income (loss) before loss on sale
of real estate investments (508,220) 476,306 (579,406) (611,320)
Loss on sale of real estate investments (26,800) (26,800)
-------------- --------------
Net income (loss) ($535,020) $476,306 ($579,406) ($638,120)
============== =============== ================ ==============
Weighted average number of
shares outstanding 8,645,000 8,645,000
============== ==============
PER SHARE INFORMATION:
Net loss ($0.06) ($0.07)
============== ==============
<FN>
The accompanying notes are an integral part of these statements.
</FN>
VININGS INVESTMENT PROPERTIES TRUST
AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995 (Unaudited)
THE ADDITIONAL
COMPANY THICKET PRO FORMA COMPANY
HISTORICAL APARTMENTS ADJUSTMENTS PRO FORMA
---------- ---------- ----------- ---------
REVENUES
Rental revenue $600,454 $1,621,037 (A) $2,221,491
Other property revenues 0 53,201 (A) 53,201
-------------- ---------------- --------------
Total property revenues 600,454 1,674,238 2,274,692
-------------- ---------------- --------------
Loan commitment fees 22,447 22,447
Interest Income 891,499 891,499
Income from partnership 1,730,508 1,730,508
-------------- ---------------- --------------
2,644,454 2,644,454
-------------- ---------------- --------------
Total revenues 3,244,908 1,674,238 4,919,146
-------------- ---------------- --------------
EXPENSES
Investment advisor's fees 361,568 361,568
Trustees fees and expenses 70,246 70,246
Professional fees 428,166 428,166
Other operating expenses 267,934 267,934
Property operating and maintenance 290,548 768,905 (A) 1,059,453
Depreciation and amortization 361,013 362,117 (B) 723,130
Interest expense 0 795,567 (C) 795,567
-------------- ---------------- ---------------- --------------
Total expenses 1,779,475 768,905 1,157,684 3,706,064
-------------- ---------------- ---------------- --------------
Income before gain (loss) on sale
of real estate investments 1,465,433 905,333 (1,157,684) 1,213,082
-------------- ---------------- ---------------- --------------
GAIN (LOSS) ON REAL ESTATE INVESTMENTS
Gain on sale of real estate investments 1,853,148 1,853,148
Loss on sale of real estate investments (198,035) (198,035)
Allowance to reduce mortgage receivable
to fair value (2,542,000) (2,542,000)
-------------- --------------
(886,887) (886,887)
-------------- --------------
Net income (loss) $578,546 $905,333 ($1,157,684) $326,195
============== ================ ================ ==============
Weighted average number of
shares outstanding 8,645,000 8,645,000
============== ==============
PER SHARE INFORMATION:
Income before gain (loss) on real
estate investments $0.17 $0.14
Gain (loss) on sale of real estate
investments (0.10) (0.10)
-------------- --------------
Net income $0.07 $0.04
============== ==============
<FN>
The accompanying notes are an integral part of these statements.
</FN>
VININGS INVESTMENT PROPERTIES TRUST
AND SUBSIDIARIES
NOTES AND ASSUMPTIONS TO UNAUDITED PRO FORMA
CONSOLIDATED STATEMENTS OF OPERATIONS
(A) Represents the pro forma adjustments necessary to reflect a full period
of rental revenues, other property revenues and property operating and
maintenance expenses for The Thicket Apartments for the six and twelve month
periods ended June 30, 1996 and December 31, 1995, respectively.
(B) Represents the pro forma adjustments necessary to reflect a full period
of depreciation expense for the six and twelve month periods ended June 30,
1996, and December 31, 1995, respectively, based on the costs associated with
the acquisition of The Thicket Apartments. Additionally, represents adjustments
to reflect a full period of amortization of loan costs associated with the
acquisition of the property and are reflected for the six and twelve month
periods ended June 30, 1996, and December 31, 1995, respectively.
(C) Reflects increased interest expense associated with borrowings utilized
to acquire The Thicket Apartments. Borrowings include $7.3 million of mortgage
debt at a fixed rate of 9.04% and additional borrowings under the Trust's line
of credit of approximately $1.5 million at a weighted average interest rate of
8.25%. If interest rates under the line of credit fluctuated .125%, interest
costs on the pro forma line of credit debt would increase or decrease by
approximately $1,976 on an annualized basis.