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EXHIBIT 20
FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS
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Combined Balance Sheets
Unaudited (In thousands, except shares) March 31, December 31,
1997 1996
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ASSETS
Investments in real estate
Land $ 51,723 $ 52,891
Buildings and improvements 398,203 406,672
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449,926 459,563
Less - Accumulated depreciation (110,692) (112,614)
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Total investments in real estate 339,234 346,949
Investment in joint venture 31,191 30,776
Mortgage loans receivable 26,999 42,266
Other assets
Cash and cash equivalents 39,613 2,951
Accounts receivable and prepayments 8,323 8,440
Deferred charges and other, net 5,328 5,225
Unamortized debt issue costs 3,770 3,923
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$ 454,458 $ 440,530
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage loans and note payable $ 120,199 $ 129,068
Senior notes 100,000 100,000
Bank loans 25,800
Accounts payable and accrued liabilities 17,978 14,549
Deferred obligations 10,821 10,825
Deferred capital gains and other deferred income 7,718 7,735
Shareholders' equity, including shares of
beneficial interest, $1 par, unlimited
authorization, outstanding 1997--21,625,503;
1996--17,621,799 197,742 152,553
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$ 454,458 $ 440,530
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FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS
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Combined Statements of Income
Unaudited (In thousands, except per share data) Three Months Ended
March 31,
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1997 1996
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Revenues
Rents $ 19,003 $ 18,463
Interest - Mortgage loans 931 1,205
- Short-term investments 348 7
Equity in income from joint venture 337
Management fees 767
Other 736 222
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22,122 19,897
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Expenses
Property operating 6,914 7,166
Real estate taxes 2,339 2,020
Depreciation and amortization 3,230 3,753
Interest - Mortgage loans 2,426 1,825
- Senior notes 2,219 2,326
- Bank loans and other 611 1,568
General and administrative 2,205 2,116
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19,944 20,774
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Net income (loss) before preferred dividend 2,178 (877)
Preferred dividend (1,208)
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Net income (loss) applicable to shares of
beneficial interest $ 970 $ (877)
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Per share
Net income (loss) applicable to shares of
beneficial interest $ .05 $ (.05)
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Adjusted shares of beneficial interest 20,511 17,262
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FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS
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Combined Statements of Changes in Cash
Unaudited (In thousands) Three Months
Ended March 31,
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1997 1996
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Cash provided by (used for) operations
Net income (loss) before preferred dividend $ 2,178 $ (877)
Adjustments to reconcile net income (loss) to net
cash provided by operations --
Depreciation and amortization 3,230 3,753
Increase in deferred charges, net (313) (329)
Increase in deferred interest on
mortgage investments, net (65) (96)
(Decrease) increase in deferred obligations (4) 40
Net changes in other assets and liabilities 2,096 2,586
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Net cash provided by operations 7,122 5,077
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Cash provided by (used for) investing
Repayment of mortgage investment 16,200
Principal received from mortgage investments 47 42
Proceeds from sale of properties 8,988 1,825
Investment in capital and tenant improvements (4,143) (8,662)
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Net cash provided by (used for) investing 21,092 (6,795)
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Cash provided by (used for) financing
Increase in mortgage loans 12,500
(Decrease) increase in short-term loans (25,800) 100
Repayment of mortgage loans - Normal payments (722) (720)
- Balloon payments (8,301)
Dividends paid to shares of beneficial interest (1,923) (2,028)
Dividends paid to preferred shares of beneficial interest (1,248)
Debt issue costs paid (23) (611)
Purchase of First Union shares (7,125)
Sale of First Union shares 46,465 79
Sale of interest rate protection agreement 1,025
Other 2
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Net cash provided by financing 8,448 3,222
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Increase in cash and cash equivalents 36,662 1,504
Cash and cash equivalents at beginning of period 2,951 3,402
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Cash and cash equivalents at end of period $ 39,613 $ 4,906
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Notes to Combined Financial Statements
1. Income per share of beneficial interest has been computed on weighted
average shares and share equivalents outstanding for the applicable
periods.
2. In January 1997, the Trust sold a shopping center in Wilkesboro, North
Carolina for $9 million in cash resulting in a loss of $4.9 million. In
February 1996, the Trust sold two office buildings in Cleveland, Ohio for
$1.8 million in cash and a $7 million mortgage note, which was subsequently
repaid, resulting in a loss of $5.6 million. Both losses had been
previously recognized during the fourth quarter of 1995 as part of a $14
million unrealized loss on carrying value of assets identified for
disposition.