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SCHEDULE 14A
(RULE 14a)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934
(AMENDMENT NO. )
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[ ] Definitive Proxy Statement
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[X] Soliciting Material Pursuant to sec.240.14a-11(c) or sec.240.14a-12
FIRST UNION REAL ESTATE
EQUITY and MORTGAGE INVESTMENTS
(NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
(NAME OF PERSON(S) FILING PROXY STATEMENT, IF OTHER THAN THE REGISTRANT)
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[FIRST UNION LOGO]
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[FIRST UNION LOGO]
REAL ESTATE INVESTMENTS
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[FIRST UNION LOGO]
since
1961
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[FIRST UNION LOGO]
A
Diversified
REIT
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[FIRST UNION LOGO]
FUR
Listed
NYSE
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[FIRST UNION LOGO] WHO ARE WE?
Assets - $1 billion
Market Cap - $400 million
People - 4,500
Portfolio - Diversified
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[FIRST UNION LOGO] WHAT WE OWN
[MAP OF U.S.]
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[FIRST UNION LOGO] WHAT WE'VE DONE
1961-1993
Evolved into $400 million trust
Sustained three downturns
128 quarterly dividends
Survived real estate recession of 80's/90's
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[FIRST UNION LOGO] WHAT WE'VE DONE
1993-1997
Turned around a fledging
real estate portfolio
Initiated an aggressive growth plan -
- Acquisitions of $450 million
- Raised $200 million of equity
- Shares outstanding have doubled
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[FIRST UNION LOGO] FOCUS: 1998 & 1999
Maximize total return
to shareholders
(target 20% total return)
Build and train people
Increase market penetration
Capitalize on all opportunities
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[FIRST UNION LOGO] FOCUS: PARKING
1997 Parking $100,000,000
1998 Parking 250,000,000
1999 Parking 350,000,000
------------
$700,000,000
------------
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[FIRST UNION LOGO] WHY PARKING?
Fragmented ownership
Economies of scale
Strong management team
We can provide equipment and/or services
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[FIRST UNION LOGO] Chicago, IL
[PICTURE]
201 West Madison
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[FIRST UNION LOGO] WHY RETAIL?
We own a substantial base with solid ROI
Retail has management-related opportunities
- Security
- Maintenance
- Vending services
- Parking-related services
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[FIRST UNION LOGO] Little Rock, AR
[PICTURE]
Park Plaza
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[FIRST UNION LOGO] Monroe, LA
[PICTURE]
Pecanland Mall
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[FIRST UNION LOGO] Shawnee, OK
[PICTURE]
Shawnee Mall
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[FIRST UNION LOGO] Santa Fe, NM
[PICTURE]
Villa Linda Mall
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[FIRST UNION LOGO] WHY DIVERSIFICATION?
Maximizes shareholder return
Minimizes single product risk
Real estate has complementary synergies
Growth dominance
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[FIRST UNION LOGO] WHAT'S OUR RECORD?
Capital Expenditures
(millions)
1991
1992
1993
1994
1995
1996
1997
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[FIRST UNION LOGO] Reading, PA Before
[PICTURE]
Fairgrounds Square
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[FIRST UNION LOGO] Reading, PA After
[PICTURE]
Fairgrounds Square
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[FIRST UNION LOGO] Reading, PA Before
[PICTURE]
Fairgrounds Square
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[FIRST UNION LOGO] Reading, PA After
[PICTURE]
Fairgrounds Square
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[FIRST UNION LOGO] St. Cloud, MN Before
[PICTURE]
Crossroads Mall
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[FIRST UNION LOGO] St. Cloud, MN After
[PICTURE]
Crossroads Mall
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[FIRST UNION LOGO] St. Cloud, MN Before
[PICTURE]
Crossroads Mall
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[FIRST UNION LOGO] St. Cloud, MN After
[PICTURE]
Crossroads Mall
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[FIRST UNION LOGO] Denver, CO Before
[PICTURE]
North Valley Tech Center
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[FIRST UNION LOGO] Denver, CO After
[PICTURE]
North Valley Tech Center
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[FIRST UNION LOGO] Denver, CO After
[PICTURE]
North Valley Tech Center
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[FIRST UNION LOGO] Denver, CO After
[PICTURE]
North Valley Tech Center
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[FIRST UNION LOGO] WHAT'S OUR RECORD?
Revenues
(millions)
1991
1992
1993
1994
1995
1996
1997
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[FIRST UNION LOGO] WHAT'S OUR RECORD?
Property NOI
(millions)
1990
1991
1992
1993
1994
1995
1996
1997
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[FIRST UNION LOGO] WHAT'S OUR RECORD?
FFO
(millions)
1995
1996
1997
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[FIRST UNION LOGO] WHAT'S OUR RECORD?
Total Return
1996 - 87%
1997 - 35%
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[FIRST UNION LOGO] DOWNSIDE PROTECTION
Parking historically recession proof
Retail tenant mix
Payout ratio less than 50%
Strength through growth
Remaining nimble and quick
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[FIRST UNION LOGO] HOW WE'LL GET THERE
Our people
Our focus
Our plan
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[FIRST UNION LOGO] SHARED VALUES
Excellence in everything we do
Commitment to our customers
Maximization of profitability for shareholders
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[FIRST UNION LOGO] SHARED VALUES
The importance of each employee
An environment of teamwork and trust
Integrity in the conduct of our business
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[FIRST UNION LOGO]
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Copyright and Credits
(c) 1998 First Union Real Estate Investments
55 Public Square, Suite 1900
Cleveland, Ohio 44113-1937
Phone: 216.781-4030
Fax: 216.781-7467
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Copyright and Credits
Reproduction of any or all parts of the
information or images contained in this
presentation in whole or in part, including
electronic transmission, for use other than
the original intent, without the express
written permission of First Union Real Estate
Investments is prohibited.
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Copyright and Credits
Photography:
(c) 1998 Tony Armour
(c) 1998 Jerry Butts
(c) 1998 Dan Francis
(c) 1998 Karen Melvin
(c) 1998 Peter Renerts
(c) 1998 Don Snyder
(c) 1998 David Steinbrunner
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Copyright and Credits
Design:
(c) 1998 Karen Skunta & Company
[KAREN SKUNTA & COMPANY LOGO]
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[MACROMEDIA(R) LOGO]