MERIDIAN INDUSTRIAL TRUST
SUPPLEMENTAL INFORMATION
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
[LOGO] MERIDIAN INDUSTRIAL TRUST
455 Market Street, 17th Floor, San Francisco, California 94105
(415) 281-3900
http.//www.MIT-REIT.com
MERIDIAN INDUSTRIAL TRUST
TABLE OF CONTENTS
Page
Financial Highlights 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Funds From Operations 4
Portfolio Summary 5
Leasing Activity and Lease Expirations 6
Fifteen Largest Tenants 7
Investment Summary 8
Property Acquisitions and Divestitures 9
Completed Developments 10
Land Inventory 11
Properties Under Development 12
Capital Structure 13
Debt Summary 14
This Supplemental Information report contains statements which constitute
forward looking information regarding the (i) potential acquisitions and
property developments by the Company; (ii) trends affecting the Company's
financial condition or results of operations; and (iii) the Company's growth
strategy, operating strategy and financing strategy. The Company's actual
results may differ significantly from the results discussed in the forward
looking statements. Certain factors that might cause such a difference are
disclosed in the Company's filings with the Securities and Exchange
Commission.
MERIDIAN INDUSTRIAL TRUST
Financial Highlights
For the Three and Twelve Months Ended December 31, 1998 and 1997
Unaudited
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED DECEMBER 31, TWELVE MONTHS ENDED DECEMBER 31,
--------------------------------- ----------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
Revenues $ 36,546 $ 26,248 $ 126,286 $ 66,150
Net Income Allocable to Common 8,723 9,426 29,409 19,870
Funds From Operations Allocable to Common (1) 18,088 14,590 66,350 35,067
Dividends per Common Share $ 0.33 $ 0.29 $ 1.32 $ 1.16
RATIOS:
Interest Coverage Ratio (2) 3.4 4.5 3.8 4.2
Funds From Operations Payout Ratio (1) 61.2% 63.6% 66.5% 67.3%
AS OF DEC. 31, AS OF DEC. 31,
1998 1997
------------------- -------------------
ASSETS:
Investments in Real Estate Assets Before Accumulated Depreciation $ 1,183,251 $ 844,739
Total Assets 1,255,417 863,512
CAPITALIZATION (3):
Mortgage Loans $ 118,190 $ 76,597
Unsecured Debt 461,800 180,609
------------------- -------------------
Total Debt $ 579,990 $ 257,206
------------------- -------------------
Total Shares Outstanding 33,803,954 32,438,389
Common Share Market Price $ 23.50 $ 25.50
Equity Value $ 844,393 $ 827,179
Total Market Capitalization $ 1,424,383 $ 1,084,385
------------------- -------------------
------------------- -------------------
Debt/Total Market Capitalization 40.7% 23.7%
(1) See Funds From Operations schedule on page 4.
(2) Funds From Operations plus interest expense divided by interest expense.
Interest expense excludes amortization of deferred loan fees.
(3) Includes 2,000,000 shares of Series D Redeemable Preferred Stock valued at
$50,000 and 483,087 limited partnership units which are convertible to
Common Stock as of December 31, 1998. See summary of capital structure
on page 13.
MERIDIAN INDUSTRIAL TRUST
PAGE 1 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Consolidated Balance Sheets
As of December 31, 1998 and 1997
(Unaudited)
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
1998 1997
------------ -----------
ASSETS
- ------
INVESTMENT IN REAL ESTATE ASSETS:
Rental Properties Held for Investment $ 1,161,342 $ 813,389
Less: Accumulated Depreciation (35,827) (14,374)
Rental Properties Held for Divestiture -- 9,492
----------- -----------
1,125,515 808,507
Investment in Unconsolidated Joint Venture 21,909 21,500
----------- -----------
TOTAL INVESTMENT IN REAL ESTATE ASSETS 1,147,424 830,007
OTHER ASSETS:
Investments in and Advances to Unconsolidated Subsidiaries 45,773 --
Cash and Cash Equivalents 6,530 7,855
Cash Held in Consolidated Limited Partnerships 2,604 992
Restricted Cash and Cash Held in Escrow 8,360 11,267
Note Receivable 8,000 --
Accounts Receivable, Net 7,434 3,460
Capitalized Loan Fees, Lease Commissions and Other Assets, Net 29,292 9,931
----------- -----------
TOTAL ASSETS $ 1,255,417 $ 863,512
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
LIABILITIES:
Unsecured Notes, Net $ 160,100 $ 160,109
Mortgage Loans, Net 103,190 76,597
Unsecured Credit Facility 301,700 20,500
Short-Term Loan Payable 15,000 --
Accrued Dividends Payable 11,731 9,473
Accounts Payable, Prepaid Rent, Tenant Deposits and Other Liabilities 21,463 21,562
----------- -----------
TOTAL LIABILITIES 613,184 288,241
----------- -----------
MINORITY INTEREST IN CONSOLIDATED LIMITED PARTNERSHIPS 16,190 5,132
----------- -----------
STOCKHOLDERS' EQUITY:
Series B Preferred Stock at $0.001 par value 2 2
Series D Preferred Stock at $0.001 par value 2 --
Common Stock at $0.001 par value 31 30
Additional Paid-in Capital 642,395 574,848
Distributions in Excess of Income (16,387) (4,741)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 626,043 570,139
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,255,417 $ 863,512
----------- -----------
----------- -----------
MERIDIAN INDUSTRIAL TRUST
PAGE 2 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 1998 and 1997
Unaudited
(IN THOUSANDS)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
1998 1997 1998 1997
--------- --------- --------- ---------
REVENUES:
Rentals from Real Estate Investments (1) $ 33,262 $ 24,220 $ 118,988 $ 63,491
Income From Unconsolidated Joint Venture 750 645 2,236 645
Income From Unconsolidated Subsidiaries 938 -- 2,472 --
Interest and Other Income 1,596 1,383 2,590 2,014
--------- --------- --------- ---------
TOTAL REVENUES 36,546 26,248 126,286 66,150
--------- --------- --------- ---------
EXPENSES:
Interest (2) 8,239 4,154 25,583 11,022
Loss on Interest Rate Protection Agreement (3) -- -- 12,633 --
Property Taxes 4,989 2,896 15,889 8,194
Property Operating 2,398 2,252 8,976 5,540
General and Administrative 2,317 2,298 8,333 6,212
Merger Related Costs 825 -- 825 --
Depreciation and Amortization 7,214 4,493 23,943 11,194
--------- --------- --------- ---------
TOTAL EXPENSES 25,982 16,093 96,182 42,162
--------- --------- --------- ---------
Income Before Minority Interest, Gain (Loss) on
Divestiture of Properties and Extraordinary Item 10,564 10,155 30,104 23,988
Minority Interest in Net (Income) (151) (30) (574) (30)
Gain (Loss) on Divestiture of Properties, Net (61) 4 4,436 (462)
Extraordinary Item-Expenses Incurred in Connection with
Debt Restructuring and Retirements -- -- -- (808)
--------- --------- --------- ---------
NET INCOME $ 10,352 $ 10,129 $ 33,966 $ 22,688
Less Preferred Stock Dividends Declared:
Series B Preferred Stock (535) (703) (2,358) (2,818)
Series D Preferred Stock (1,094) -- (2,199) --
--------- --------- --------- ---------
NET INCOME ALLOCABLE TO COMMON $ 8,723 $ 9,426 $ 29,409 $ 19,870
--------- --------- --------- ---------
--------- --------- --------- ---------
(1) Includes $1,498 and $566 for straight-line rents for the three months ended
December 31, 1998 and 1997, respectively, and $4,777 and $2,067 for the
twelve months ended December 31, 1998 and 1997, respectively.
(2) Includes $334 and $82 of amortization of loan fees for the three months
ended December 31, 1998 and 1997, respectively and $638 and $302 for the
twelve months ended December 31, 1998 and 1997, respectively.
(3) Represents the cost incurred in terminating an interest rate protection
agreement that the Company entered into in May 1998 in anticipation of a
public debt offering, which as the result of unfavorable market
conditions, did not materialize.
MERIDIAN INDUSTRIAL TRUST
PAGE 3 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Funds From Operations
For the Three and Twelve Months Ended December 31, 1998 and 1997
Unaudited
(IN THOUSANDS, EXCEPT SHARE DATA)
THREE MONTHS ENDED DECEMBER 31, TWELVE MONTHS ENDED DECEMBER 31,
------------------------------ -------------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
NET INCOME $ 10,352 $ 10,129 $ 33,966 $ 22,688
ADD (SUBTRACT):
Real Estate Depreciation and Amortization 7,793 4,465 25,033 11,109
(Gain) Loss on Divestiture of Properties 61 (4) (4,436) 462
Minority Interest in Net Income 151 -- 528 --
Interest on Hedge Contract -- -- 12,633 --
Merger Costs Expensed 825 -- 825 --
Extraordinary Item -- -- -- 808
------------ ------------ ------------ ------------
FUNDS FROM OPERATIONS 19,182 14,590 68,549 35,067
Series D Preferred Stock Dividends (1,094) -- (2,199) --
------------ ------------ ------------ ------------
FUNDS FROM OPERATIONS ALLOCABLE TO COMMON (1) $ 18,088 $ 14,590 $ 66,350 $ 35,067
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Dividends per Common Share $ 0.33 $ 0.29 $ 1.32 $ 1.16
Funds From Operations Payout Ratio (2) 61.2% 63.6% 66.5% 67.3%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 31,692,848 29,263,346 30,892,467 17,791,304
Diluted (3) 34,230,043 32,063,247 33,646,774 20,537,186
(1) The Company calculates funds from operations (FFO) in accordance with the
white paper published by the National Association of Real Estate
Investment Trusts, Inc. FFO means net income (loss), (computed in
accordance with generally accepted accounting principles), excluding
gains (or losses) from debt restructuring, divestiture or property and
significant non-recurring items that materially distort the comparative
measurement of the Company over time, plus depreciation and
amortization of real property, and after adjustments for unconsolidated
subsidiaries, partnerships and joint ventures. Meridian believes that
funds from operations is helpful to a reader as a measure of the
performance of an equity real estate investment trust because, along
with cash flows from operating, investing and financing activities, it
provides a reader with an indication of the ability of Meridian to
incur and service debt, to make capital expenditures and to fund other
cash needs. The funds from operations measure presented will not be
comparable to similarly titled measures of other real estate investment
trusts which do not compute funds from operations in a manner
consistent with Meridian. Funds from operations is not intended to
represent cash made available to shareholders. Funds from operations
should not be considered as an alternative to net earnings or any other
generally accepted accounting principles measurement of performance as
an indicator of Meridian's operating performance, or as an alternative
to cash flows from operating, investing or financing activities as a
measure of liquidity.
(2) Includes quarterly dividends paid to Series B Preferred Stockholders of
$0.33 per share and $0.31 per share in 1998 and 1997, respectively. Also,
reflects cash refunded in connection with three property for stock
transactions completed in 1997 representing dividends for the period
prior to closing, which were accounted for as a purchase price
adjustment.
(3) The diluted weighted average common shares outstanding was calculated as if
the outstanding shares of Series B Convertible Preferred Stock, stock
options, warrants and limited partnership units had been converted into
shares of Common Stock. The number of weighted average options, warrants
and limited partnership units outstanding were 2,537,195 and 2,799,902
for the three months ended December 31, 1998 and 1997, respectively, and
2,754,307 and 2,745,881 for the twelve months ended December 31, 1998
respectively.
MERIDIAN INDUSTRIAL TRUST
PAGE 4 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Portfolio Summary (1)
As of December 31, 1998
Unaudited
NO. OF OCCUPANCY RENTABLE % OF TOTAL ANNUALIZED % OF TOTAL
MARKET PROPERTIES RATE SQUARE FEET SQUARE FEET BASE RENT BASE RENT
- ------------------------- ------------- --------------- ---------------- ---------------- ------------------- ---------------
Atlanta 6 100% 759,036 2.5% $ 3,347,840 2.9%
Boston 1 100% 106,964 0.3% 481,338 0.4%
Charlotte 1 100% 558,900 1.8% 2,308,524 2.0%
Chicago 24 99% 2,839,176 9.2% 11,208,883 9.6%
Columbus 10 100% 3,066,911 9.9% 9,492,441 8.1%
Dallas/Ft Worth 48 96% 5,358,940 17.4% 17,806,782 15.3%
Detroit 13 82% 654,338 2.1% 2,825,294 2.4%
Houston 10 98% 1,134,445 3.7% 3,878,308 3.3%
Indianapolis 3 100% 682,717 2.2% 2,035,257 1.7%
LA Basin 54 100% 6,953,404 22.5% 28,251,269 24.2%
Las Vegas 3 100% 612,495 2.0% 3,070,902 2.6%
Little Rock 2 79% 235,250 0.8% 437,138 0.4%
Memphis 14 97% 2,229,353 7.2% 6,434,121 5.5%
Miami 3 91% 219,379 0.7% 1,090,192 0.9%
Minneapolis 1 100% 100,000 0.3% 409,165 0.4%
New Jersey/I-95 12 100% 1,372,937 4.5% 6,199,556 5.3%
Orlando 3 100% 492,160 1.6% 2,151,492 1.8%
Phoenix 5 100% 587,105 1.9% 2,265,792 1.9%
Richmond 2 92% 145,966 0.5% 1,399,013 1.2%
San Diego 1 100% 186,157 0.6% 1,582,155 1.4%
Seattle 1 90% 237,281 0.8% 1,232,748 1.1%
SF Bay Area 9 99% 2,185,393 7.1% 8,178,065 7.0%
St. Louis 1 100% 126,642 0.4% 499,992 0.6%
-------------- -------------- --------------- --------------- ------------------ --------------
Total 227 98% 30,844,949 100.0% $116,586,267 100.0%
-------------- -------------- --------------- --------------- ------------------ --------------
-------------- -------------- --------------- --------------- ------------------ --------------
(1) Does not include properties under development and refrigerated distribution
services.
MERIDIAN INDUSTRIAL TRUST
PAGE 5 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Leasing Activity (1)
For the Three and Twelve Months Ended December 31, 1998
Unaudited
THREE MONTHS TWELVE MONTHS
ENDED DECEMBER 31, 1998 ENDED DECEMBER 31, 1998
------------------------- -------------------------
No. of Leases 41 179
Square Feet of Leases 1,468,114 5,154,762
Base Rent % Change (2) 17.07% 13.60%
Average TI's & LC's per SF $1.48 $1.18
Tenant Retention 84% 79%
Average Remaining Lease Term N/A 5.13 Years
Lease Expirations (3)
As of December 31, 1998
% OF TOTAL % OF TOTAL
RENTABLE SQUARE SQUARE FEET ANNUAL BASE ANNUAL BASE
YEAR OF FEET SUBJECT TO REPRESENTED BY RENTS UNDER RENTS REPRESENTED BY
LEASE EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES
-------------------- -------------------- -------------------------- -------------------- -----------------------
1999 4,211,623 14% 18,853,883 16%
2000 3,654,094 12% 13,318,993 11%
2001 3,800,256 13% 15,699,293 14%
2002 3,069,236 10% 11,236,168 10%
2003 2,589,341 9% 10,372,048 9%
2004 877,797 3% 3,587,106 3%
2005 2,531,056 8% 8,556,079 7%
2006 2,020,572 7% 7,395,393 6%
2007 1,187,134 4% 5,024,516 4%
2008 2,907,349 10% 9,407,119 8%
Thereafter 3,285,773 10% 12,635,668 12%
-------------------- -------------------------- -------------------- -----------------------
Total $ 30,134,231 100% $ 116,086,266 100%
-------------------- -------------------------- -------------------- -----------------------
-------------------- -------------------------- -------------------- -----------------------
(1) Includes new and renewed leases for second generation space signed during
the period. Excludes a retail property in Atlanta consisting of 79,320
square feet.
(2) Base rent includes straight line rent adjustments in accordance with GAAP.
(3) Excludes a retail property in Atlanta consisting of 79,320 square feet,
which was 100% occupied as of December 31, 1998. Month-to-month tenants
are included as 1998 expirations.
MERIDIAN INDUSTRIAL TRUST
PAGE 6 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Fifteen Largest Tenants
As of December 31, 1998
Unaudited
NUMBER OF SQUARE FEET % OF TOTAL ANNUALIZED % OF TOTAL
TENANT LEASES LEASED PORTFOLIO BASE RENT (1) PORTFOLIO
- ----------------------------------- ------------- ----------------- --------------- ---------------- ---------------
Kraft Foods, Inc. 4 1,655,866 5.4% $7,016,420 6.0%
Sears Roebuck & Co. 3 1,814,592 5.9% 4,966,448 4.3%
Freeman Decorating Co. 3 642,238 2.1% 2,552,712 2.2%
Leiner Health Products, Inc. 1 558,900 1.8% 2,308,524 2.0%
GATX Logistics, Inc. 4 625,192 2.0% 2,247,129 1.9%
General Tire, Inc. 2 632,790 2.1% 2,120,916 1.8%
S.C. Johnson & Sons, Inc. 2 502,500 1.6% 1,660,765 1.4%
Calpaco Papers, Inc. 1 606,925 2.0% 1,631,139 1.4%
Kirk Paper Corp. 1 315,705 1.0% 1,596,456 1.4%
Conopco, Inc. 1 500,004 1.6% 1,475,012 1.3%
Allegiance Healthcare Corp. 1 361,690 1.2% 1,294,127 1.1%
IMI Cornelius, Inc. 2 311,444 1.0% 1,276,920 1.1%
Chrysler Corporation 1 317,952 1.0% 1,150,477 1.0%
Technicolor Videocassette, Inc. 1 310,736 1.0% 1,132,585 1.0%
L.D. Brinkman & Co., Inc. 1 367,744 1.2% 1,055,676 0.9%
------------- ----------------- --------------- ---------------- ---------------
Total 28 9,524,278 30.9% $33,485,306 28.8%
------------- ----------------- --------------- ---------------- ---------------
------------- ----------------- --------------- ---------------- ---------------
(1) Represents annualized base rent from leases in effect as of December 31,
1998.
MERIDIAN INDUSTRIAL TRUST
PAGE 7 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Investment Summary
For the Twelve Months Ended December 31, 1998
Unaudited
THREE MONTHS ENDED
------------ ----------------- ------------------ ------------- --------------
YEAR-TO-DATE DECEMBER 31, 1998 SEPTEMBER 30, 1998 JUNE 30, 1998 MARCH 31, 1998
------------ ----------------- ------------------ ------------- --------------
PROPERTY ACQUISITIONS:
Rentable Square Feet 4,548,043 965,058 1,261,240 1,585,215 736,530
Total Investment Cost (1) $172,301,595 $ 32,298,125 $ 41,867,693 $ 56,606,846 $ 41,528,931
Number of Property Acquisitions 31 4 7 14 6
COMPLETED DEVELOPMENTS:
Rentable Square Feet 3,272,718 1,135,595 1,334,308 802,815 --
Total Investment Cost (1) $138,318,120 $ 45,942,854 $ 60,612,694 $ 31,762,572 $ --
Number of Completed Developments 8 2 3 3 --
LAND ACQUISITIONS:
Acres 245 -- 73 116 56
Total Investment Cost (1) $ 28,056,459 $ -- $ 6,010,088 $ 10,962,275 $ 11,084,096
Number of Land Acquisitions 12 -- 3 4 5
PROPERTY DIVESTITURES:
Rentable Square Feet 1,063,817 -- 310,849 571,904 181,064
Sales Price $ 40,425,297 $ -- $ 21,785,000 $ 16,760,297 $ 1,880,000
Number of Property Divestitures 7 -- 2 4 1
PROPERTIES UNDER DEVELOPMENT (AS OF THE END
OF THE QUARTER):
Rentable Square Feet N/A 2,953,040 3,210,046 4,544,354 3,879,019
Estimated Development Cost (2) N/A 106,256,000 $123,760,000 $178,309,000 $136,381,000
Number of Properties Under Development N/A 11 11 14 13
MERIDIAN REFRIGERATED, INC.
Acquisitions $ 50,816,000 $ -- $ -- $ 29,741,000 $ 21,075,000
Cubic Feet 16,400,000 -- -- 9,200,000 7,200,000
Square Feet 631,924 -- -- 332,924 299,000
(1) Total investment cost includes all costs incurred to date for the property
acquisitions, completed developments and land acquisitions.
(2) Estimated development cost includes all estimated costs to complete
development.
MERIDIAN INDUSTRIAL TRUST
PAGE 8 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Property Acquisitions and Divestitures
For the Three Months Ended December 31, 1998
Unaudited
RENTABLE ACQUISITION INVESTMENT
PROPERTY NAME MARKET SQUARE FEET DATE COST (1)
- ------------------------------------- ------------- ------------------ ----------------- ----------------
PROPERTY ACQUISITIONS:
2000 Park Oaks Avenue Orlando 130,000 10/30/98 $ 6,287,161
7111 Trade Port Drive Louisville 331,088 10/30/98 9,518,443
8170 Dove Parkway Columbus 241,334 10/30/98 8,426,896
2701 Charter Street Columbus 262,636 10/30/98 8,065,625
------------------ ----------------
4-PROPERTY ACQUISITIONS 965,058 $ 32,298,125
------------------ ----------------
------------------ ----------------
RENTABLE
PROPERTY NAME MARKET SQUARE FEET DIVESTITURE DATE SALES PRICE
- ------------------------------------- ------------- ------------------ ----------------- ----------------
PROPERTY DIVESTITURES:
------------------ ----------------
0-PROPERTY DIVESTITURES -- $ --
------------------ ----------------
------------------ ----------------
(1) Investment cost includes all costs incurred to date for the property
acquisition.
MERIDIAN INDUSTRIAL TRUST
PAGE 9 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Completed Developments
For the Three Months Ended December 31, 1998
Unaudited
RENTABLE DATE OF
PROPERTY NAME MARKET SQUARE FEET STABILIZATION INVESTMENT COST (1)
- ------------------------------------------ -------------------------- --------------- --------------- ---------------------
2600 Broadhead Road New Jersey/I-95 528,670 10/98 $ 26,032,364
Meridian Distribution Center LA Basin 606,925 12/98 19,910,490
-------------- ---------------------
2- COMPLETED DEVELOPMENTS 1,135,595 $ 45,942,854
-------------- ---------------------
-------------- ---------------------
(1) Investment cost includes all costs incurred to date for the completed
development.
MERIDIAN INDUSTRIAL TRUST
PAGE 10 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Land Inventory
As of December 31, 1998
Unaudited
APPROX. RENTABLE
MARKET ACRES SQUARE FEET
----------------- -------------------- -----------------
Chicago 47.0 614,000
Dallas 17.7 219,000
Detroit (2) 102.1 1,250,000
Indianapolis 58.4 752,000
LA Basin (3) 122.6 2,405,000
Orlando 71.9 1,043,000
-------------------- ----------------
Total 419.7 6,283,000
-------------------- ----------------
-------------------- ----------------
(1) Investment cost includes all costs incurred to date for the land
acquisitions.
(2) A Purchase and Sale Agreement for this land parcel has been executed.
(3) Includes 77.3 acres which have been acquired and a purchase option
for 45.3 acres.
MERIDIAN INDUSTRIAL TRUST
PAGE 11 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Properties Under Development
As of December 31, 1998
Unaudited
ESTIMATED ESTIMATED ESTIMATED REMAINING
RENTABLE DATE OF DATE OF DEVELOPMENT FUNDING
PROPERTY NAME MARKET SQUARE FEET COMPLETION STABILIZATION(1) COST (2) OBLIGATION
- ---------------------------------- ------------ ----------- ---------- ---------------- ----------- ------------
2100 Consulate Drive (3) Orlando 75,000 1/98 1/99 $ 3,916,000 $ 707,000
Avenida de las Banderas LA Basin 16,713 1/98 1/99 1,300,000 35,000
Avenida Empresa LA Basin 21,354 1/98 1/99 1,600,000 37,000
Kraft Foods, Inc. Columbus 163,270 1/99 1/99 12,640,000 12,640,000
Lever Atlanta Atlanta 600,798 1/99 1/99 22,040,000 6,441,000
Lebanon Pike Circle (3) Nashville 178,630 7/98 5/99 7,282,000 46,000
7050 Alan Schwartzwalder II Columbus 78,417 5/99 5/99 2,254,000 1,648,000
Frankford Trade Center Dallas 709,920 7/98 7/99 19,315,000 4,596,000
2225 Cedars Road Atlanta 249,600 9/98 9/99 6,872,000 977,000
Windrow Drive LA Basin 59,338 9/98 9/99 4,000,000 92,000
White Oak Technology (3) Richmond 800,000 7/99 7/99 25,037,000 2,344,000
--------- ------------ ------------
11-PROPERTIES UNDER DEVELOPMENT 2,953,040 $106,256,000 $ 29,563,000
--------- ------------ ------------
--------- ------------ ------------
(1) Represents the Company's estimate of the date that the property will reach
stabilization. Properties are considered stabilized for financial
reporting purposes upon the earlier of substantial lease-up or one year
from shell completion. However, there can be no assurance that these
properties will reach stabilization by the date shown.
(2) Estimated development cost includes all estimated costs to complete
development.
(3) Represents the Company's share of remaining funding obligations.
MERIDIAN INDUSTRIAL TRUST
PAGE 12 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Capital Structure
As of December 31, 1998
Unaudited
AGGREGATE PRINCIPAL
OUTSTANDING AT
DECEMBER 31, 1998
---------------------
DEBT
Unsecured Notes 7.25% due November 20, 2007 $ 135,000,000
Unsecured Notes 7.30% due November 20, 2009 25,000,000
---------------------
Total Unsecured Notes 160,000,000
Add: Unamortized Debt Premium 100,276
---------------------
Total Unsecured Notes Including Debt Premium 160,100,276
Mortgage Loans 103,189,780
Unsecured Credit Facility 301,700,000
Short-Term Loan Payable 15,000,000
---------------------
Total Debt $ 579,990,056
---------------------
---------------------
SHARES CONVERSION COMMON STOCK MARKET VALUE
EQUITY OUTSTANDING (1) RATIO EQUIVALENTS EQUIVALENTS
- ------------------------------------------ ---------------------- ----------------- ----------------- ----------------------
Series B Convertible Preferred Stock (2) 1,623,376 1 : 1 1,623,376 $ 38,149,336
Series D Redeemable Preferred Stock (3) 2,000,000 N/A N/A 50,000,000
Limited Partnership Units (2) 483,087 1 : 1 483,087 11,352,545
Common Stock (2) 31,697,491 N/A 31,697,491 744,891,039
---------------------- ---------------------
Total Shares and Equity Capitalization 35,803,954 $ 844,392,920
---------------------- ---------------------
---------------------- ---------------------
Total Market Capitalization $1,424,382,976
---------------------
---------------------
(1) The number of common shares outstanding was calculated as if the
outstanding shares of Series B Convertible Preferred Stock and limited
partnership units had been converted to Common Stock, which is
consistent with the methodology used in prior periods.
(2) Market Value Equivalents based on the December 31, 1998 Common Stock
closing price of $23.50.
(3) Based on the liquidation value of $25.00 per share.
MERIDIAN INDUSTRIAL TRUST
PAGE 13 OF 14 SUPPLEMENTAL INFORMATION
MERIDIAN INDUSTRIAL TRUST
Debt Summary
As of December 31, 1998
Unaudited
PRINCIPAL MATURITIES
OF UNSECURED NOTES
DEBT MATURITY SCHEDULE AND MORTGAGE LOANS UNSECURED CREDIT FACILITY (1)
---------------------- --------------------- -----------------------------
1999 15,546,591 Facility Capacity $ 350,000,000
2000 588,599 Outstanding Balance @ 12/31/98 301,700,000
2001 633,871 -------------------
2002 682,637 Remaining Capacity $ 48,300,000
2003 735,192 -------------------
2004 791,826 -------------------
2005 66,947,104
2006 7,092,687
2007 135,760,725
2008 14,437,574
2009 30,608,348
Thereafter 4,364,626
----------------------
Total $ 278,189,780
----------------------
----------------------
% OF TOTAL WEIGHTED WEIGHTED
DEBT ANALYSIS DEBT AVERAGE RATE AVERAGE MATURITY
- ------------- ---------------------- ------------------------------ ------------------------
Unsecured - Fixed Rate 27.6% 7.26% 9.2 Yrs
Unsecured - Variable Rate (1) 52.0% 6.87% 2.8 Yrs
Secured - Fixed Rate 17.8% 8.16% 7.8 Yrs
Secured - Short-Term 2.6% 6.76% 0.4 Yrs
(1) Reflects the Unsecured Credit Facility as amended on October 8, 1998. The
facility amendment included an increase in the facility capacity to
$350,000,000 and an extension of the maturity date to October 8, 2001.
MERIDIAN INDUSTRIAL TRUST
PAGE 14 OF 14 SUPPLEMENTAL INFORMATION