September 30, 2000 Selected Financial Information
Information for the nine and three months ended September 30, 2000 and
1999 are unaudited and may not be indicative of results that may be expected for
future interim periods or for the full year.
Cautionary Disclosure Relating to Forward Looking Statements
Statements made in this document include forward looking statements under the
federal securities laws. Statements that are not historical in nature, including
the words "anticipate," "estimate," "should," "expect," "believe," "intend," and
similar expressions are intended to identify forward looking statements. While
these statements reflect the Company's good faith beliefs based on current
expectations, estimates and projections about (among other things) the industry
and the markets in which the Company operates, they are not guarantees of future
performance, involve known and unknown risks and uncertainties that could cause
actual results to differ materially from those in the forward looking
statements, and should not be relied upon as predictions of future events.
Factors which could impact future results include (among other things) general
economic conditions, local real estate conditions, oversupply of available
space, financial condition of tenants, timely ability to lease or re-lease space
upon favorable economic terms, agreements with anchor tenants, interest rates,
availability of financing, competitive factors, and similar considerations. The
Company disclaims any obligation to publicly update or revise any forward
looking statement, whether as a result of new information, future events or
otherwise. For a discussion of risks and uncertainties that could cause actual
results to differ materially from those contained in the forward looking
statements, see "Risk Factors" filed as Exhibit 99.1 to the Company's Form 10-K.
3
MID-ATLANTIC REALTY TRUST AND SUBSIDIARIES
Detailed Consolidated Statements of Operations
(UNAUDITED)
Nine months ended September 30, Three months ended September 30,
2000 1999 2000 1999
.............................................................................................................................
REVENUES:
Minimum Rent $34,578,605 32,082,822 $ 11,602,255 10,718,408
Percentage Rent 936,730 978,357 337,604 280,818
Tenant recoveries 6,754,995 6,008,055 2,159,001 2,013,983
Other 328,211 419,297 106,545 221,180
---------------------------------- ----------------------------------
42,598,541 39,488,531 14,205,405 13,234,389
---------------------------------- ----------------------------------
EXPENSES:
Interest 12,058,836 10,342,289 4,136,263 3,625,139
Depreciation and amortization
of property and improvements 7,773,624 7,108,936 2,687,094 2,441,213
Operating 8,873,285 8,275,323 2,876,564 2,732,166
General and administrative 2,131,485 1,981,152 658,473 643,050
---------------------------------- ----------------------------------
30,837,230 27,707,700 10,358,394 9,441,568
---------------------------------- ----------------------------------
EARNINGS FROM OPERATIONS
BEFORE MINORITY INTEREST 11,761,311 11,780,831 3,847,011 3,792,821
Minority Interest (2,635,646) (2,474,827) (876,821) (886,879)
---------------------------------- ----------------------------------
EARNINGS BEFORE EXTRAORDINARY GAIN 9,125,665 9,306,004 2,970,190 2,905,942
---------------------------------- ----------------------------------
Extraordinary gain from early extinguishment of debt 255,268 - 91,345 -
---------------------------------- ----------------------------------
NET EARNINGS $ 9,380,933 9,306,004 $ 3,061,535 2,905,942
---------------------------------- -----------------------------------
NET EARNINGS PER SHARE - basic and diluted:
Earnings before extraordinary gain $ 0.66 0.65 $ 0.22 0.20
Extraordinary gain from early extinguishment of debt 0.02 - 0.01 -
---------------------------------- ----------------------------------
Net earnings $ 0.68 0.65 $ 0.23 0.20
================================== ==================================
See accompanying notes to consolidated financial statements.
4
SUMMARY OF BALANCE SHEET INFORMATION
(UNAUDITED)
Nine months ended September 30,
2000 1999
------------------------------------------
Closing Market Price $ 11.8125 10.4375
Current Annual Dividend 1.08 1.05
Dividend Yield ( based on current annualized dividend ) 9.1% 10.1%
Common Shares Outstanding 13,744,634 14,228,725
Operating Partnership Units 3,407,240 3,373,463
Convertible Debentures 1,252,482 1,294,862
----------------------------------------------
Diluted Shares 18,404,356 18,897,050
==============================================
Fixed Rate Debt $ 176,997,970 159,298,844
Variable Rate Debt 45,740,555 25,000,000
==============================================
Total Debt $ 222,738,525 184,298,844
==============================================
% Fixed Rate Debt 79.5% 86.4%
% Variable Rate Debt 20.5% 13.6%
Weighted Average Interest Rate - Fixed Rate Debt 8.3% 8.5%
Weighted Average Interest Rate - Variable Rate Debt 7.9% 6.7%
==================================================================================================================
DEBT MATURITY SCHEDULE
2000 $ 552,203
2001 13,222,790
2002 51,543,445
2003 48,529,624
2004 2,463,367
Thereafter 106,427,096
-------------------------
TOTAL DEBT $ 222,738,525
=========================
5
SUMMARY OF OPERATING INFORMATION
(UNAUDITED)
Nine months ended Three months ended
September 30, September 30,
2000 1999 2000 1999
------------------------------------------------------------------------------
FFO-Diluted $ 19,995,807 19,388,047 $ 6,677,440 6,337,581
FFO Per Share 1.10 1.04 0.37 0.34
Dividends Per Share $ 0.81 0.78 $ 0.27 0.26
Dividend/FFO Payout Ratio 73.8% 75.2% 73.5% 76.7%
WEIGHTED AVERAGE SHARES
Basic 13,550,361 14,054,578 13,481,714 13,990,074
Diluted 18,218,505 18,679,832 18,172,968 18,707,397
UNVESTED RESTRICTED SHARES 257,244 290,021 257,244 290,021
INTEREST COVERAGE
Earnings Before Interest,
Depreciation and
Extraordinary Items $ 28,958,125 26,757,229 $ 9,793,547 8,972,294
Interest Expense $ 12,058,836 10,342,289 $ 4,136,263 3,625,139
Interest Coverage 2.40 2.59 2.37 2.48
FFO DILUTED RECONCILIATION
Operating results:
Earnings from operations $ 9,125,665 9,306,004 $ 2,970,190 2,905,942
Depreciation and amortization of
property and improvements 7,773,624 7,108,936 2,687,094 2,441,213
------------------------------------------------------------------------------
FFO Basic 16,899,289 16,414,940 5,657,284 5,347,155
Debenture interest and amortization 807,152 843,561 268,900 279,961
OP Unit minority interest 2,289,366 2,129,546 751,256 710,465
FFO DILUTED $ 19,995,807 19,388,047 $ 6,677,440 6,337,581
==============================================================================
6
EXPANSION AND DEVELOPMENT/RE-DEVELOPMENT PROJECTS
(UNAUDITED)
Development Projects
Total Costs Projected Percentage
Property Location (as of 9/30/00) Opening of Completion
- ---------------------------------------------------------------------------------------------------------------------------
Security Square Shopping Center Baltimore County, MD $ 7,241,706 February 2001 75%
Waverly Woods Shopping Center Baltimore County, MD 5,537,837 March 2001 65%
Expansion/Re-Development Projects
Total Costs Projected Percentage
Property Location (as of 9/30/00) Completion of Completion
- ------------------------------------------------------------------------------------------------------------------------------------
Burke Town Plaza Shopping Center Burke, VA $ 1,132,372 December 2000 90%
Colonie Plaza Shopping Center Colonie, NY 30,000 Late 2001 0%
Glen Burnie Village Shopping Center Baltimore Co., MD 818,509 July 2000 100%
Lutherville Station Shopping Center Baltimore Co., MD 50,000 Summer 2001 0%
Rosedale Plaza Shopping Center Baltimore Co., MD 4,591,359 August 2000 100%
Shrewsbury Shopping Center Shrewsbury, PA 153,624 Late 2002 0%
7
LEASE EXPIRATIONS
As of September 30, 2000
(UNAUDITED)
Lease Number of Approximate Expiring Leases Average
Year Expiring Expiring Annualized Minium Rent
Expiration Leases GLA Minimum Rent Per Square Foot
- ------------------------------------------------------------------------------------------------------
Month-to-Month 4 24,378 95,400 3.91
2000 24 50,484 728,213 14.42
2001 100 245,649 3,086,070 12.56
2002 86 276,306 3,518,905 12.62
2003 94 503,545 4,139,288 8.22*
2004 98 386,489 4,752,278 12.30
2005 78 468,219 4,024,645 8.60*
2006 32 174,773 2,444,765 13.99
2007 25 262,746 2,539,907 9.67
2008 19 125,602 1,970,522 15.69
2009 16 149,423 1,527,527 10.22
2010 31 265,331 3,222,834 12.15
2011 9 108,167 1,604,720 14.84
Thereafter 29 983,476 11,166,102 11.35
---------------------------------------------------------------------------------
645 4,024,588 44,821,175 11.14
=================================================================================
* Includes pad sites.
8