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EXHIBIT 99.2
FIRST UNION REAL ESTATE INVESTMENTS
PROFORMA COMBINED STATEMENTS OF OPERATIONS
For the Twelve months Ended December 31, 1998
(in thousands)
1998
REVENUES 1998 Adjustments Proforma
--------- ----------- --------
Rents $ 320,592 $ 48,972 (a) $ 271,620
Interest - Mortgage loans 1,211 -- 1,211
- Short-term investments 1,337 -- 1,337
- Investments 302 -- 302
Joint venture income and fees 501 -- 501
Other 583 -- 583
--------- -------- ---------
324,526 48,972 275,554
--------- -------- ---------
EXPENSES
Property operating 223,667 17,133 (a) 206,534
Real estate taxes 12,453 4,888 (a) 7,565
Depreciation and amortization 33,389 10,025 (a) 23,364
Interest-mortgages 29,032 4,037 (b) 24,995
Senior notes 5,856 3,256 (b) 2,600
Bank loans 12,214 7,753 (b) 4,461
Notes payable 3,757 2,511 (b) 1,246
General and administrative 37,577 150 (c) 37,427
Litigation and Proxy expenses 4,848 -- 4,848
Foreign currency loss 2,198 -- 2,198
Unrealized loss on carrying value of assets identified --
for disposition and impaired assets 51,000 -- 51,000
--------- -------- ---------
415,991 49,753 366,238
--------- -------- ---------
NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS $ (91,465) $ 781 $ (90,684)
--------- -------- ---------
Preferred Dividend (2,999) (2,999)
--------- ---------
Net loss before extraordinary loss and capital gains $ (94,464) $ (93,683)
========= =========
Per share data
NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS,
BASIC AND DILUTED $ (3.07) $ (3.04)
========= =========
Adjusted shares of beneficial interest, basic 30,772 30,772
Adjusted shares of beneficial interest, diluted 31,015 31,015
(a) To reflect the registrant's sales of 2 office buildings and a shopping mall
and contracts to sell one additional office building, nine shopping malls,
and eight apartment complexes.
(b) To reflect the use of proceeds from the sale of the properties, net of
mortgage debt on the properties. For purposes of the proforma combined
statements of operations, $60.3 million of Senior Notes are assumed to be
repaid as the Notes payable were used to repay $88.5 million of Senior
Notes in August 1988.
(c) To reflect the reduction of general and administrative expenses resulting
from the sale of the registrant's apartment division.