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Exhibit 99.2
FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
PRO FORMA COMBINED BALANCE SHEET
SEPTEMBER 30, 2000
(IN THOUSANDS)
Pro Forma Adjustments
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Sale of Sale of
North Valley Huntington Properties
Historical Financing (5) Garage (1) to Radiant (2) Pro Forma
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ASSETS
Investments in real estate
Land $ 47,292 $ $ (1,600) $ (39,607) $ 6,085
Buildings and improvements 249,583 (6,602) (179,383) 63,598
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296,875 (8,202) (218,990) 69,683
Less - Accumulated depreciation (69,172) 3,457 57,997 (7,718)
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Total investments in real estate 227,703 (4,745) (160,993) 61,965(3)
Mortgage loans and notes receivable 1,483 5,517 7,000(2)
Other assets
Cash and cash equivalents - unrestricted 21,441 5,439 12,684 44,768 84,332
- restricted 4,512 789 (2,943) 2,358(4)
Accounts receivable and prepayments,
net of allowances 3,550 (20) (23) 3,507
Investments 209,914 209,914
Inventory 5,438 5,438
Unamortized debt issue costs 1,844 272 (94) (1,601) 421
Other 1,006 (641) 365
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Total assets $ 476,891 $ 6,500 $ 7,825 $(115,916) $ 375,300
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage loans $ 166,764 $ 6,500 $ (7,692) $(123,169) $ 42,403
Notes payable 150,113 150,113
Senior notes 12,538 12,538
Accounts payable and accrued liabilities 13,243 (300) 12,943
Deferred items 3,040 (3,040) --
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Total liabilities 345,698 6,500 (7,692) (126,509) 217,997
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Shareholders' equity
Preferred shares of beneficial interest 23,171 23,171
Shares of beneficial interest 41,046 41,046
Additional paid in capital 216,269 216,269
Undistributed loss from operations (149,293) 15,517 10,593 (123,183)
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Total shareholders' equity 131,193 15,517 10,593 157,303
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Total liabilities and shareholders' equity $ 476,891 $ 6,500 $ 7,825 $(115,916) $ 375,300
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1) Received approximately $12.7 million from the sale, after assumption of debt
of approximately $7.6 million and expenses related to the sale.
2) Received approximately $44.8 million in cash from the sale, after assumption
and repayment of debt of approximately $123 million and expenses and adjustments
related to the sale. In addition, First Union provided $7 million in short term
financing to the purchaser. Approximately $3.3 million of additional capital
expenditures required to be paid by First Union after September 30, 2000 have
been reflected as paid.
3) The balance consists primarily of investments in real estate at Circle Tower
of approximately $2.2 million and Park Plaza of approximately $59.8 million.
4) The balance of restricted cash consists of a severance escrow of
approximately $1.2 million and Park Plaza escrow balances of approximately $1.2
million.
5) In February 2001, in accordance with the Radiant sales agreement, First Union
amended the mortgage loan on the North Valley Tech Center property to provide
for an additional $6.5 million of financing.