UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
In February of 2005, two REITs focused primarily on the restaurant
industry, CNL Restaurant Properties, Inc. ("CNLRP") and U.S. Restaurant
Properties, Inc. ("USRP") merged and simultaneously acquired 18 limited
partnerships which owned primarily triple-net leased restaurant properties ("the
Merger and Related Financing Transactions"). CNLRP was treated as the acquirer
for accounting purposes. Trustreet Properties, Inc. ("Trustreet") was the name
adopted upon the merger. The following unaudited pro forma condensed
consolidated balance sheet gives effect to an additional financing transaction
that occurred in April of 2005.
The unaudited pro forma condensed consolidated statement of operations
data for the quarter ended March 31, 2005 and the year ended December 31, 2004
gives effect to the Merger and Related Financing Transactions as if they had
occurred on January 1, 2004. The operating results for Trustreet for the quarter
ended March 31, 2005 consist of the operating results of CNLRP from January 1,
2005 through February 24, 2005 and of the merged companies from February 25,
2005 through March 31, 2005. The pro forma adjustments are based upon available
information and certain assumptions that we consider reasonable. The pro forma
data is not necessarily indicative of the results of operations that would have
been achieved had the Transactions reflected herein been consummated on the
dates indicated or that will be achieved in the future.
The presentation of pro forma operating results does not reflect cost
savings or synergies that may result from the mergers and there can be no
assurances that such savings or synergies will occur. Examples of anticipated
savings include the elimination of separate regulatory filings, as well as
reductions in the cost of investor relations and administrative costs and
executive compensation.
The unaudited pro forma condensed consolidated financial data assumes
that Trustreet will continue to be taxed as a REIT under the Internal Revenue
Code. As a REIT, Trustreet generally will not be subject to corporate level
federal income tax on net income it distributes to its stockholders.
All income and expenses relating to properties held for sale and the
ultimate gain or loss realized upon disposition are treated as discontinued
operations for all periods presented. In addition, depreciation on these
properties is not recorded. Therefore, revenues from the operation of any such
properties, or gains from the sale of any properties sold, are not reflected in
the "Revenues" line item in the summary pro forma data presented herein. As a
result, the unaudited pro forma condensed consolidated financial data does not
include income from discontinued operations, net of income taxes of
approximately $5.0 million and $51.3 million for the quarter ended March 31,
2005 and the year ended December 31, 2004, respectively, which represents
activities related to the sale of certain real estate properties including those
purchased with the intent to sell. In addition, only operating and
administrative expenses that are directly attributable to acquiring or selling
properties that are classified as held for sale or were sold during the period
are allocated to the "Income from discontinued operations" line item, and all
other general operating and administrative expenses are allocated to "Income
from continuing operations."
Trustreet Properties, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of March 31, 2005
(in thousands)
<s> <c>
Pro Forma
Trustreet Adjustments(2) Pro Forma
---------- -------------- -----------
Assets
Real estate investment properties.... $1,897,980 $ 1,897,980
Mortgage, equipment and other notes
receivable........................ 300,151 300,151
Cash and cash equivalents............ 28,661 $ 3,264 31,925
Restricted cash...................... 13,732 13,732
Receivables, less allowance for
doubtful accounts................. 9,595 9,595
Accrued rental income................ 29,837 29,837
Goodwill............................. 183,711 183,711
Other assets......................... 136,852 4,526 141,378
---------- ------------- -----------
Total assets...................... $2,600,519 $ 7,790 $ 2,608,309
========== ============= ===========
Liabilities
Revolving credit facilities.......... $ 189,000 $ (109,000) $ 80,000
Notes payable........................ 411,697 175,000 586,697
Warehouse credit facilities.......... 67,712 67,712
Secured subordinated note............ 21,875 (21,875) --
Bonds payable........................ 803,617 803,617
Due to related parties............... 36,735 (36,335) 400
Other payables....................... 95,313 95,313
---------- ------------- -----------
Total liabilities................. 1,625,949 7,790 1,633,739
Minority interests................... 4,551 4,551
Stockholders' Equity
Preferred stock - Series A........... 8 8
Preferred stock - Series C........... 7 7
Common stock......................... 58 58
Capital in excess of par value....... 1,358,931 1,358,931
Accumulated other comprehensive loss. (5,733) (5,733)
Accumulated distributions in excess of
net earnings...................... (383,252) (383,252)
---------- ------------ -----------
Total stockholders' equity........ 970,019 -- 970,019
---------- ------------ -----------
Total Liabilities & Stockholders' Equity $2,600,519 $ 7,790 $ 2,608,309
========== ============ ===========
Trustreet Properties, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Three Months Ended March 31, 2005
(in thousands, except for share and per share data)
<s> <c>
(*)
(*) Historical
Historical Historical Income Pro Forma
Trustreet USRP Funds Adjustments(3) Pro Forma
----------- ---------- ----------- -------------- -------------
Revenues:
Rental and earned income from operating and
direct financing leases................ $ 26,236 $ 10,711 $ 7,848 $ 709 a $ 45,504
Interest income from mortgage, equipment and
other notes receivable................. 6,827 277 -- -- 7,104
Other income............................. 1,061 25 18 (191)b 913
----------- ---------- ----------- ------------- ------------
Total revenues..................... 34,124 11,013 7,866 518 53,521
Expenses:
General operating and administrative..... 12,160 6,231 4,893 (191)c 23,093
Interest expense......................... 16,891 3,299 -- 6,242 d 26,432
Depreciation and amortization............ 5,230 3,667 1,136 1,457 e 11,490
Impairments and provisions on assets..... -- 198 -- -- 198
----------- ---------- ----------- ------------- ------------
Total expenses....................... 34,281 13,395 6,029 7,508 61,213
Income (loss) from continuing operations before
gain on sale of assets, minority interest in
income of consolidated joint ventures and
equity in earnings (loss) of unconsolidated
joint ventures........................... (157) (2,382) 1,837 (6,990) (7,692)
Other Items:
Gain on sale of assets................... -- 751 -- -- 751
Minority interest in income of
consolidated joint ventures and
equity in earnings (loss) of
unconsolidated joint ventures........ (785) 14 (7) -- (778)
----------- ---------- ----------- ------------- ------------
Income (loss) from continuing operations.... (942) (1,617) 1,830 (6,990) (7,719)
Dividends on preferred stock............. (2,923) (2,322) -- (1,930)f (7,175)
----------- ---------- ----------- ------------- ------------
Income (loss) from continuing operations
allocable to common stockholders......... $ (3,865) $ (3,939) $ 1,830 $ (8,920) $ (14,894)
=========== ========== =========== ============= ============
Basic and diluted loss per share from
continuing operations allocable to common
stockholders............................. $ (0.09) n/a n/a n/a $ (0.26)
----------- ---------- ----------- ------------- ------------
Basic and diluted weighted average shares
outstanding (g).......................... 43,858 n/a n/a n/a 57,668
----------- ---------- ----------- ------------- ------------
(*) Operating results are for the period from January 1, 2005 through
February 24, 2005.
Trustreet Properties, Inc.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year Ended December 31, 2004
(in thousands, except for share and per share data)
<s> <c>
Historical
Historical Historical Income Pro Forma
CNLRP USRP Funds Adjustments (4) Pro Forma
----------- ---------- ----------- ------------- ------------
Revenues:
Rental and earned income from operating and
direct financing leases................ $67,949 $61,776 $ 46,945 $ 3,632a $ 180,302
Interest income from mortgage, equipment and
other notes receivable................. 30,164 1,863 -- -- 32,027
Retail operations........................ -- 55,813 -- (55,813)g --
Other income............................. 7,107 3,678 534 (1,136)b 10,183
----------- ---------- ----------- ------------- ------------
Total revenues..................... 105,220 123,130 47,479 (53,317) 222,512
Expenses:
General operating and administrative..... 27,995 22,674 8,389 (1,136)c
(8,832)g 49,090
Interest expense......................... 47,999 18,683 -- 30,349 d 97,031
Retail cost of sales..................... -- 46,981 -- (46,981)g --
Depreciation and amortization............ 11,775 21,947 6,864 10,506 e 51,092
Impairments and provisions on assets..... 5,491 521 1,439 -- 7,451
----------- ---------- ----------- ------------- ------------
Total expenses....................... 93,260 110,806 16,692 (16,094) 204,664
Income (loss) from continuing operations before
gain on sale of assets, minority interest
in income of consolidated joint ventures
and equity in earnings(loss) of
unconsolidated joint ventures........... 11,960 12,324 30,787 (37,223) 17,848
Other Items:
Gain on sale of assets................... 135 -- 167 -- 302
Minority interest in income of
consolidated joint ventures and
equity in earnings (loss) of
unconsolidated joint ventures........ (3,613) (38) (39) -- (3,690)
----------- ---------- ----------- ------------- ------------
Income (loss) from continuing operations.... 8,482 12,286 30,915 (37,223) 14,460
Dividends on preferred stock............. -- (9,965) -- (18,738)f (28,703)
----------- ---------- ----------- ------------- ------------
Income (loss) from continuing operations
allocable to common stockholders......... $ 8,482 $ 2,321 $ 30,915 $ (55,961) $(14,243)
=========== ========== =========== ============= ===========
Income (loss) per share from continuing operations allocable to common
stockholders:
Basic................................. $ 0.19 $ 0.11 n/a n/a $ (0.26)
----------- ---------- ----------- ------------- ------------
Diluted............................... 0.19 $ 0.10 n/a n/a $ (0.26)
----------- ---------- ----------- ------------- ------------
Basic and diluted weighted average shares
outstanding (h): 45,249 22,557 n/a n/a 55,589
----------- ---------- ----------- ------------- ------------
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
1. Basis of Presentation and Accounting Treatment
On February 25, 2005, Trustreet was the name adopted upon the merger of
CNLRP and the 18 Income Funds with and into USRP. CNLRP was treated as the
acquiror for accounting purposes.
2. Adjustments to Unaudited Pro Forma Condensed Consolidated Balance Sheet
In connection with the Transactions, in April of 2005 we entered into a
term loan and repaid certain indebtedness of Trustreet. The following is a
summary of the use of proceeds:
<s> <c>
New term loan B due 2010............................................ $ 175,000
Repayment of bridge financing....................................... (109,000)
Repayment of secured subordinated note due 2008..................... (21,875)
Repayment of loan due to related party.............................. (36,335)
----------
Cash proceeds before loan costs................................... 7,790
Loan costs.......................................................... (4,526)
----------
Net cash proceeds................................................. $ 3,264
==========
3. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Three Months Ended March 31, 2005
The following describes the pro forma adjustments to the unaudited pro
forma condensed consolidated statement of operations for the three months ended
March 31, 2005, as if the Merger and Related Financing Transactions were
consummated as of January 1, 2004.
(a) Represents rental income adjustments resulting from the
straight-lining of scheduled rent increases as if the real
estate had been acquired on January 1, 2004 and the
amortization of the intangible assets relating to above market
leases of $47,638 and liabilities relating to below market
leases of $32,501 on a straight-line basis over the remaining
lease terms which range from 4 to 12 years:
<s> <c>
Accrued rental income............................................... $ 480
Net amortization of above/below market leases....................... 229
---------
$ 709
=========
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
3. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Three Months Ended March 31, 2005 -- Continued
(b) Represents the elimination of the following intercompany fees
between CNLRP and the Income Funds.
<s> <c>
Other income:
Reimbursement of administrative cost............................ $ (143)
Management fees................................................. (48)
--------
$ (191)
========
(c) Represents the elimination of intercompany expenses between the
Income Funds and CNLRP. No pro forma adjustments were made for
anticipated savings from operating as one company such as the
elimination of separate regulatory filings or for reductions in the
cost of investor relations, administrative costs or executive
compensation.
<s> <c>
General and administrative:
Reimbursement of administrative cost............................ $ (143)
Management fees................................................. (48)
---------
$ (191)
=========
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
3. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Three Months Ended March 31, 2005 -- Continued
(d) Reflects the adjustments to interest expense and loan cost
amortization based on the Merger and Related Financings and the
additional April 2005 financing described in Note 2:
<s> <c>
Pro Forma
Adjustment to
Estimated Interest
Blended Expense/Loan
Balance Rate Cost Amortization
---------- --------- -----------------
Estimated interest on New Net Lease Securitization due
2012...................................................... $ 275,000 5.06% $ 3,479
Estimated interest on new term loan B due 2010................ 175,000 4.86% 2,126
Estimated interest on senior notes due 2015................... 250,000 7.50% 4,688
Elimination of interest expense on USRP term loan due
2008...................................................... (35,000) -- (341)
Elimination of interest expense on CNLRP secured
subordinated note due 2008................................ (21,875) -- (383)
Elimination of interest expense on CNLRP loan due to
related parties........................................... (33,860) -- (543)
Elimination of interest expense on USRP senior notes
due 2005.................................................. (111,000) -- (1,323)
Elimination of interest expense on USRP Hawaii facility
due 2011.................................................. (11,364) -- (89)
Unused commitment fee on new revolving credit facility
due 2008.................................................. -- -- 59
Estimated loan cost amortization.............................. -- -- 1,092
Reversal of historical interest expense on bridge
financing for New Net Lease Securitization due 2012....... -- -- (961)
Reversal of historical interest expense on bridge
financing on new term loan B due 2010..................... -- -- (472)
Reversal of historical interest on bridge financing on
senior notes due 2015..................................... -- -- (469)
Reversal of historical loan cost amortization ................
-- -- (621)
----------------
$ 6,242
================
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
3. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Three Months Ended March 31, 2005 -- Continued
In the event the interest rate changes by one-eighth of one percent,
the pro forma adjustment for interest expense would change as follows:
<s> <c>
Interest Impact on
Rate Interest
Balance Increase Expense
----------- --------- -----------
New term loan B due 2010...................................... $ 175,000 0.125% $ 55
(e) The following summarizes the estimated adjustments to depreciation
of real estate assets and amortization of identifiable intangibles
using the straight-line method relating to the mergers:
<s> <c>
Increase in basis: Total
----------
Buildings......................................................... $ 146,354
Leases in place................................................... 15,675
Tenant relationships.............................................. 9,539
----------
$ 171,568
==========
Estimated Increase in Depreciation and Amortization Expense:
Buildings (30 years).......................................... $ 813
Leases in place and tenant relationships (1).................. 644
----------
Estimated adjustment.............................................. $ 1,457
==========
(1) Amortized over the life of each individual lease. The
acquired leases have remaining lives ranging from two
months to 20 years.
(f) Represents additional dividends relating to Series C preferred
stock issued in connection with the mergers and the reversal of the
dividends relating to the redemption of all of the USRP Series B
Cumulative Convertible Preferred Stock. No proforma adjustment was
made for the Preferred Stock (Series A) because the historical
numbers reflect the dividends for the quarter.
<s> <c>
Preferred stock (Series C):
7,244 shares at $1.875 per share............................... $ 2,263
Preferred stock (Series B).......................................... (333)
-----------
$ 1,930
===========
(g) Reflects conversion of historical basic and diluted weighted
average shares outstanding to pro forma basic and diluted weighted
average shares outstanding as follows:
<s> <c>
Trustreet historical shares..................................... 22,636
CNLRP shares at converted rate.................................. 35,032
--------
Pro forma shares....................................... 57,668
========
The impact of any common stock equivalents was anti-dilutive.
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
4. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Year Ended December 31, 2004
The following describes the pro forma adjustments to the unaudited pro
forma condensed consolidated statement of operations for the year ended December
31, 2004, as if the Transactions were consummated as of January 1, 2004.
(a) Represents rental income adjustments resulting from the
straight-lining of scheduled rent increases as if the real estate
had been acquired on January 1, 2004 and the amortization of the
intangible assets relating to above market leases of 47,638 and
liabilities relating to below market leases of 32,501 on a
straight-line basis over the remaining lease terms which range from
4 to 12 years:
<s> <c>
Accrued rental income............................................... $ 2,879
Net amortization of above/below market leases....................... 753
--------
$ 3,632
========
(b) Represents the elimination of the following intercompany fees
between CNLRP and the Income Funds.
Other income:
Reimbursement of administrative cost............................ $ (861)
Management fees................................................. (275)
---------
$ (1,136)
=========
(c) Represents the elimination of intercompany expenses between the
Income Funds and CNLRP. No pro forma adjustments were made for
anticipated savings from operating as one company such as the
elimination of separate regulatory filings or for reductions in the
cost of investor relations, administrative costs or executive
compensation.
<s> <c>
General and administrative:
Reimbursement of administrative cost............................ $ (861)
Management fees................................................. (275)
---------
$ (1,136)
=========
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
4. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Year Ended December 31, 2004--Continued
(d) Reflects the adjustments to interest expense and loan cost
amortization based on the Merger and Related Financings and the
additional April 2005 financing described in Note 2:
<s> <c>
Pro Forma
Adjustment to
Estimated Interest
Blended Expense/Loan
Balance Rate Cost Amortization
---------- ---------- ------------------
Estimated interest on New Net Lease Securitization due
2012...................................................... $ 275,000 5.06% $ 13,915
Estimated interest on new term loan B due 2010................ 175,000 4.86% 8,505
Estimated interest on senior notes due 2015................... 250,000 7.50% 18,750
Elimination of interest expense on USRP term loan due
2008...................................................... (35,000) -- (2,048)
Elimination of interest expense on CNLRP secured
subordinated note due 2008................................ (21,875) -- (2,168)
Elimination of interest expense on CNLRP loan due to
related parties........................................... (33,860) -- (1,465)
Elimination of interest expense on USRP senior notes
due 2005.................................................. (111,000) -- (7,937)
Elimination of interest expense on USRP Hawaii facility
due 2011.................................................. (11,364) -- (534)
Unused commitment fee on new revolving credit facility
due 2008.................................................. -- -- 238
Estimated loan cost amortization.............................. -- -- 5,575
Reversal of historical loan cost amortization ................ -- -- (2,482)
----------------
$ 30,349
================
In the event the interest rate changes by one-eighth of one percent,
the pro forma adjustment for interest expense would change as follows:
<s> <c>
Interest Impact on
Rate Interest
Balance Increase Expense
---------- -------- ---------
New term loan B due 2010...................................... $ 175,000 0.125% $ 219
Trustreet Properties, Inc.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
(in thousands except per share data)
4. Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of
Operations for the Year Ended December 31, 2004 -- Continued
(e) The following summarizes the estimated adjustments to depreciation
of real estate assets and amortization of identifiable intangibles
using the straight-line method relating to the mergers:
<s> <c>
Increase in basis: Total
---------
Buildings......................................................... $ 146,356
Leases in place................................................... 15,675
Tenant relationships.............................................. 9,539
---------
$ 171,570
=========
Estimated Increase in Depreciation and Amortization Expense:
Buildings (30 years).......................................... $ 4,878
Leases in place and tenant relationships (1).................. 5,628
--------
Estimated adjustment........................................... $ 10,506
========
(1) Amortized over the life of each individual lease. The
acquired leases have remaining lives ranging from two
months to 20 years.
(f) Represents additional dividends relating to Series A and Series C
preferred stock issued in connection with the mergers and the
reversal of the dividends relating to the redemption of all the
USRP Series B Cumulative Convertible Preferred Stock.
<s> <c>
Preferred stock (Series A):
3,750 shares at $1.93 per share................................ $ 7,237
Preferred stock (Series C):
7,244 shares at $1.875 per share............................... 13,583
Preferred stock (Series B).......................................... (2,082)
--------
$ 18,738
========
(g) Reflects the reclassification of the results of the USRP retail
operations to discontinued operations as a result of entering into
a contract in February 2005 to sell these operations.
(h) Reflects conversion of historical basic and diluted weighted
average shares outstanding to pro forma basic and diluted weighted
average shares outstanding as follows:
<s> <c>
USRP historical shares.......................................... 20,557
Pro forma common shares issued to CNLRP......................... 35,032
------
Pro forma shares....................................... 55,589
======
The impact of any common stock equivalents was anti-dilutive.
SELECTED FINANCIAL DATA OF TRUSTREET PROPERTIES, INC.
The following table sets forth selected consolidated financial data of
Trustreet.
<s> <c>
Three Months Ended
March 31, Year Ended December 31,
---------------------- ------------------------------------------------------
2005 2004 (3) 2004 (3) 2003 (3) 2002 (3) 2001 (3) 2000 (3)
------- -------- -------- -------- -------- -------- --------
(dollars in thousands)
Statement of Operations Data:
Revenues:
Sale of real estate......... $ -- $ -- $ -- $ -- $ 209,498 $ 128,480 $ --
Rental income from
operating leases.......... 23,474 14,427 57,728 60,161 66,440 72,759 60,141
Earned income from
direct financing
leases ................... 2,762 2,575 10,221 10,687 11,629 12,078 12,847
Interest income
from mortgage,
equipment and
other notes
receivables............... 6,281 6,653 26,394 29,807 34,552 40,831 21,438
Investment and
interest income .......... 546 1,191 3,770 4,586 5,347 5,845 8,240
Net decrease in
value of mortgage
loans held for
sale, net of
related hedge ............ -- -- -- (1,853) (5,368) (5,070) (6,855)
Gain on sale of
mortgage loans ........... -- -- -- -- -- 4,120 --
Other income................ 1,061 1,356 7,107 9,610 12,308 13,256 8,908
------- --------- --------- -------- -------- -------- -------
Total revenues........... 34,124 26,202 105,220 112,998 334,406 272,299 104,719
Expenses:
Cost of real estate
sold .................... -- -- -- -- 193,179 118,372 --
General operating
and administrative ...... 10,963 6,299 27,346 25,208 28,433 29,592 26,083
Interest expense .......... 16,891 11,829 47,999 50,576 58,401 67,892 46,806
Property expenses.......... 1,014 27 312 746 3,036 1,892 4,306
State and other
taxes ................... 183 108 337 212 88 931 1,184
Depreciation and
amortization ............ 5,230 2,784 11,775 12,228 12,784 17,379 14,741
Transaction costs ..... ... -- -- -- -- -- -- 10,315
Loss on termination
of cash flow
hedges .................. -- 355 940 502 -- 8,060 5,348
Impairments and
provisions on
assets .................. -- 547 4,551 12,864 9,510 39,848 2,476
------ -------- ------- ------- -------- ------- -------
Total expenses........... 34,281 21,949 93,260 102,336 305,431 283,966 111,259
Income (loss) from
continuing
operations before
minority interest
in income of
consolidated joint
ventures, equity in
earnings of
unconsolidated
joint ventures and
gain/(loss) on sale
of assets ................. (157) 4,253 11,960 10,662 28,975 (11,667) (6,540)
Minority interest in
income of
consolidated joint
ventures................... (815) (662) (3,718) (1,913) (2,409) (1,250) 1,024
Equity in earnings of
unconsolidated
joint ventures............. 30 34 105 108 101 98 98
Gain (loss) on sale of
assets .................... -- 6 135 (157) (347) (1,138) (790)
------ ------ ------- ------- -------- -------- ------
Income (loss) from
continuing
operations ............... (942) 3,631 8,482 8,700 26,320 (13,957) (6,208)
SELECTED FINANCIAL DATA OF TRUSTREET PROPERTIES, INC. - CONTINUED
The following table sets forth selected consolidated financial data of
Trustreet.
<s> <c>
Three Months Ended
March 31, Year Ended December 31,
---------------------- ------------------------------------------------------
2005 2004 (3) 2004 (3) 2003 (3) 2002 (3) 2001 (3) 2000 (3)
------- -------- -------- -------- -------- -------- --------
(dollars in thousands)
Income (loss) from
discontinued
operations, net of
income taxes............... 4,391 7,217 33,536 33,740 9,270 (6,654) 9,135
Cumulative effect of accounting
change..................... -- -- -- -- -- (3,841) --
--------- -------- ------- ------- ------- ------- ------
Net income (loss)....... 3,449 10,848 42,018 42,440 35,590 (24,452) 2,927
Dividends on preferred stock.... (2,923) -- -- -- -- -- --
--------- -------- ------- ------- ------- ------- ------
Net income (loss) allocable
to common stockholders.. $ 526 $ 10,848 $42,018 $42,440 $35,590 $(24,452) $2,927
========= ======== ======= ======= ======= ======== ======
Balance Sheet Data (at
period end):
Cash and cash
equivalents (1) .......... $ 28,661 $22,323 $ 22,744 $ 36,955 $ 16,579 $ 21,924 $ 24,382
Total assets .................. 2,600,519 1,295,086 1,243,649 1,298,116 1,383,450 1,560,117 1,605,944
Total debt (2) ................ 1,493,901 754,069 712,500 751,834 831,223 973,715 941,866
Total stockholders' equity .... 970,019 470,762 453,422 479,886 494,151 526,182 607,738
Other Financial Data:
Dividends declared on
common stock ............. $ 21,701 $ 17,251 $ 69,002 $ 69,002 $ 67,991 $ 66,466 $ 66,329
(1) Only includes unrestricted cash. Please see "Capitalization" for the
definition of restricted cash.
(2) Total debt does not include principal and accrued interest balances of $35.8
million, $23.5 million and $4.25 million outstanding at December 31, 2004,
2003 and 2002, respectively, due to CNL Financial Group, Inc., an affiliate.
No such amounts were outstanding at December 31, 2001 and 2000.
(3) These are the historical operating results of CNLRP, who was treated as the
acquirer for accounting purposes.