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Exhibit 99.3
FIRST UNION REAL ESTATE INVESTMENTS
PROFORMA COMBINED STATEMENT OF OPERATIONS
For the Twelve months Ended December 31, 1998
(in thousands)
1998
REVENUES 1998 Adjustments Proforma
--------- --------- ---------
Rents $ 320,592 $ 31,178 $ 289,414
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 31,178 293,348
--------- --------- ---------
EXPENSES
Property operating 223,667 11,464 212,203
Real estate taxes 12,453 2,146 10,307
Depreciation and amortization 33,389 5,424 27,965
Interest- Mortgages 29,032 3,719 25,313
Senior notes 5,856 2,156 3,700
Bank loans 12,214 5,389 6,825
Notes payable 3,757 1,070 2,687
General and administrative 37,577 150 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 31,518 384,473
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NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS $ (91,465) $ 340 $ (91,125)
--------- --------- ---------
Preferred Dividend (2,999) (2,999)
--------- --------- ---------
Net loss before extraordinary loss and capital gains $ (94,464) $ 340 $ (94,124)
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Per share data
NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS,
BASIC AND DILUTED $ (3.07) $ (3.06)
========= =========
Adjusted shares of benificial interest, basic 30,772 30,772
Adjusted shares of benificial interest, diluted 31,015 31,015
The accompanying notes are an integral part of these statements.