AmREIT COMPANY LOGO
- ------------------------------------------------------------------------------
Supplemental Financial Information
June 30, 2007
(Unaudited)
Table of Contents Page #
----------------- ------
Corporate Profile 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Consolidated Statements of Operations - Segments 4 - 7
Summary of Operating Results
Funds From Operations 8
Dividends - All Classes of Common Shares 8
Rental and Earned Income 9
Real Estate Operating Revenue 9
Discontinued Operations 10
Interest Expense 10
Summary Balance Sheet Information
Common Share Data 11
Capitalization 11
Portfolio Net Asset Value 11
Debt Information
Outstanding Balances and Terms 12 - 13
Fixed vs. Variable Rate Debt 13
Property & Tenant Information
Property Table 14 - 15
Tenant Concentration 16
Leasing Activity Report 16
Lease Expiration Schedule 17
This Supplemental Financial Information package contains historical information
of the Company and is intended to supplement the Company's Quarterly Report on
Form 10-Q for the three and six months ended June 30, 2007. All financial
information in this Supplemental Financial Information package is shown in
thousands, except for per share data and share information.
Certain information contained in this Supplemental Financial Information package
includes certain forward-looking statements reflecting AmREIT's expectations in
the near term that involve a number of risks and uncertainties; however, many
factors may materially affect the actual results, including demand for our
properties, changes in rental and occupancy rates, changes in property operating
costs, interest rate fluctuations, and changes in local and general economic
conditions. Accordingly, there is no assurance that AmREIT's expectations will
be realized.
Corporate Profile:
AmREIT (AMEX: AMY) is a growing real estate company focused on the development,
acquisition, construction, disposition, brokerage, leasing and management of
shopping centers in major metropolitan markets throughout the Southwest and
Southeast. The company deploys its broad range of real estate development and
operating expertise to grow two distinct businesses within AmREIT. The first is
a 1.1 million square foot portfolio of "Irreplaceable Corners TM" - Premier
retail properties in high traffic, densely populated areas. The second is an
advisory and sponsorship business that had a total of $280 million in assets
under management as of June 30, 2007. Founded in 1985, AmREIT is a fully
integrated equity real estate investment trust that has been public since 2002.
Corporate Office:
8 Greenway Plaza, Suite 1000
Houston, Texas 77046
(800) 888-4400 (713) 850-0498 (fax) www.amreit.com
Stock Exchange:
American Stock Exchange - AMY
Consolidated Balance Sheets:
June 30, December 31,
2007 2006
------------ ------------
ASSETS (unaudited)
Real estate investments at cost:
Land $ 133,249 $ 124,751
Buildings 139,378 140,487
Tenant improvements 9,729 9,296
------------ ------------
282,356 274,534
Less accumulated depreciation and amortization (13,124) (10,628)
------------ ------------
269,232 263,906
Real estate held for sale, net 1,763 --
Net investment in direct financing leases held for investment 19,181 19,204
Intangible lease cost, net 14,548 16,016
Investment in merchant development funds and other affiliates 3,253 2,651
------------ ------------
Net real estate investments 307,977 301,777
Cash and cash equivalents 4,356 3,415
Tenant receivables, net 3,974 4,330
Accounts receivable, net 1,447 1,772
Accounts receivable - related party 1,787 1,665
Notes receivable - related party 6,776 10,104
Deferred costs 2,303 2,045
Other assets 4,372 3,322
------------ ------------
TOTAL ASSETS $ 332,992 $ 328,430
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 157,545 $ 144,453
Accounts payable and other liabilities 5,220 9,162
Security deposits 679 668
------------ ------------
TOTAL LIABILITIES 167,120 158,243
------------ ------------
Minority interest 1,162 1,137
Shareholders' equity:
Preferred shares, $.01 par value, 10,000,000 shares authorized, none issued -- --
Class A Common shares, $.01 par value, 50,000,000 shares authorized,
6,591,259 and 6,549,950 shares issued, respectively 66 65
Class B Common shares, $.01 par value, 3,000,000 shares authorized,
1,038,871 and 1,080,180 shares issued, respectively 10 11
Class C Common shares, $.01 par value, 4,400,000 shares authorized,
4,150,471 and 4,145,531 shares issued, respectively 42 41
Class D Common shares, $.01 par value, 17,000,000 shares authorized,
11,060,390 and 11,039,803 shares issued, respectively 111 110
Capital in excess of par value 194,337 194,696
Accumulated distributions in excess of earnings (28,643) (23,749)
Cost of treasury shares, 166,694 and 292,238 Class A shares, respectively (1,213) (2,124)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 164,710 169,050
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 332,992 $ 328,430
============ ============
2
Consolidated Statements of Operations:
Quarter ended June 30, Year to date June 30,
------------------------- -------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Revenues:
Rental income from operating leases $ 7,733 $ 7,487 $ 14,815 $ 13,460
Earned income from direct financing leases 508 508 1,015 1,015
Real estate fee income 160 -- 854 751
Real estate fee income - related party 349 910 1,062 1,677
Construction revenues 695 319 792 940
Construction revenues - related party 219 2,623 1,095 3,796
Securities commission income - related party 1,484 1,227 2,477 2,618
Asset management fee income - related party 312 186 596 344
----------- ----------- ----------- -----------
Total revenues 11,460 13,260 22,706 24,601
----------- ----------- ----------- -----------
Expenses:
General and administrative 1,911 2,254 4,120 4,136
Property expense 2,037 2,162 3,767 3,184
Construction costs 868 2,609 1,729 4,284
Legal and professional 479 288 774 597
Real estate commissions 26 -- 447 540
Securities commissions 1,245 1,089 2,074 2,346
Depreciation and amortization 1,958 2,391 3,898 4,573
----------- ----------- ----------- -----------
Total expenses 8,524 10,793 16,809 19,660
----------- ----------- ----------- -----------
Operating income 2,936 2,467 5,897 4,941
Other income (expense):
Interest and other income - related party 256 232 500 467
(Loss) income from merchant development funds and other affiliates (15) 208 (27) 306
Federal income tax benefit for taxable REIT subsidiary 302 184 501 269
Interest expense (2,351) (2,090) (4,708) (3,833)
Minority interest in income of consolidated joint ventures (27) (27) (63) (58)
----------- ----------- ----------- -----------
Income before discontinued operations 1,101 974 2,100 2,092
Income from discontinued operations, net of taxes -- 272 4 241
Gain on sales of real estate acquired for resale, net of taxes -- 7 -- 12
----------- ----------- ----------- -----------
Income from discontinued operations -- 279 4 253
----------- ----------- ----------- -----------
Net income 1,101 1,253 2,104 2,345
Distributions paid to class B, C and D shareholders (2,711) (2,914) (5,416) (5,820)
----------- ----------- ----------- -----------
Net loss available to class A shareholders $ (1,610) $ (1,661) $ (3,312) $ (3,475)
=========== =========== =========== ===========
Net loss per class A common share - basic and diluted
Loss before discontinued operations $ (0.25) $ (0.31) $ (0.52) $ (0.59)
Income from discontinued operations -- 0.04 -- 0.04
----------- ----------- ----------- -----------
Net loss $ (0.25) $ (0.26) $ (0.52) $ (0.54)
=========== =========== =========== ===========
Weighted average class A common shares used to
compute net loss per share, basic and diluted 6,411 6,348 6,366 6,339
=========== =========== =========== ===========
3
Segmented Statements of Operations:
Asset Advisory
--------------------------
Merchant
For the three months Real Estate Development
ended June 30, 2007 Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 8,241 $ -- $ -- $ -- $ 8,241
Securities commission income -- -- 1,484 -- 1,484
Real estate fee income -- 509 -- -- 509
Construction revenues -- 914 -- -- 914
Asset management fee income -- -- -- 312 312
----------- ----------- ----------- ----------- -----------
Total revenue 8,241 1,423 1,484 312 11,460
General and administrative 283 1,236 366 26 1,911
Property expense 2,001 36 -- -- 2,037
Construction costs -- 868 -- -- 868
Legal and professional 346 83 50 -- 479
Real estate commissions -- 26 -- -- 26
Securities commissions -- -- 1,245 -- 1,245
Depreciation and amortization 1,958 -- -- -- 1,958
----------- ----------- ----------- ----------- -----------
Total expenses 4,588 2,249 1,661 26 8,524
Interest expense (2,203) (139) (9) -- (2,351)
Other income/ (expense) 63 473 (17) (3) 516
Income from discontinued operations (5) 5 -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 1,508 $ (487) $ (203) $ 283 $ 1,101
----------- ----------- ----------- ----------- -----------
4
Asset Advisory
--------------------------
Merchant
For the three months Real Estate Development
ended June 30, 2006 Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 7,995 $ -- $ -- $ -- $ 7,995
Securities commission income -- -- 1,227 -- 1,227
Real estate fee income -- 910 -- -- 910
Construction revenues -- 2,942 -- -- 2,942
Asset management fee income -- -- -- 186 186
----------- ----------- ----------- ----------- -----------
Total revenue 7,995 3,852 1,227 186 13,260
General and administrative 215 1,365 612 62 2,254
Property expense 2,141 21 -- -- 2,162
Construction costs -- 2,609 -- -- 2,609
Legal and professional 235 39 14 -- 288
Real estate commissions -- -- -- -- --
Securities commissions -- -- 1,089 -- 1,089
Depreciation and amortization 2,391 -- -- -- 2,391
----------- ----------- ----------- ----------- -----------
Total expenses 4,982 4,034 1,715 62 10,793
Interest expense (1,815) (250) (25) -- (2,090)
Other income/ (expense) 198 89 145 165 597
Income from discontinued operations 299 (20) -- -- 279
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 1,695 $ (363) $ (368) $ 289 $ 1,253
----------- ----------- ----------- ----------- -----------
5
Asset Advisory
--------------------------
Merchant
For the six months Real Estate Development
ended June 30, 2007 Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 15,830 $ -- $ -- $ -- $ 15,830
Securities commission income -- -- 2,477 -- 2,477
Real estate fee income -- 1,916 -- -- 1,916
Construction revenues -- 1,887 -- -- 1,887
Asset management fee income -- -- -- 596 596
----------- ----------- ----------- ----------- -----------
Total revenue 15,830 3,803 2,477 596 22,706
General and administrative 710 2,467 851 92 4,120
Property expense 3,694 73 -- -- 3,767
Construction costs -- 1,729 -- -- 1,729
Legal and professional 582 130 62 -- 774
Real estate commissions -- 447 -- -- 447
Securities commissions -- -- 2,074 -- 2,074
Depreciation and amortization 3,898 -- -- -- 3,898
----------- ----------- ----------- ----------- -----------
Total expenses 8,884 4,846 2,987 92 16,809
Interest expense (4,433) (264) (11) -- (4,708)
Other income/ (expense) 286 630 96 (101) 911
Income from discontinued operations (5) 9 -- -- 4
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 2,794 $ (668) $ (425) $ 403 $ 2,104
----------- ----------- ----------- ----------- -----------
6
Asset Advisory
--------------------------
Merchant
For the six months Real Estate Development
ended June 30, 2006 Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 14,475 $ -- $ -- $ -- $ 14,475
Securities commission income -- -- 2,618 -- 2,618
Real estate fee income -- 2,428 -- -- 2,428
Construction revenues -- 4,736 -- -- 4,736
Asset management fee income -- -- -- 344 344
----------- ----------- ----------- ----------- -----------
Total revenue 14,475 7,164 2,618 344 24,601
General and administrative 588 2,366 1,102 80 4,136
Property expense 3,147 37 -- -- 3,184
Construction costs -- 4,284 -- -- 4,284
Legal and professional 478 95 24 -- 597
Real estate commissions -- 540 -- -- 540
Securities commissions -- -- 2,346 -- 2,346
Depreciation and amortization 4,573 -- -- -- 4,573
----------- ----------- ----------- ----------- -----------
Total expenses 8,786 7,322 3,472 80 19,660
Interest expense (3,558) (250) (25) -- (3,833)
Other income/ (expense) 508 152 137 187 984
Income from discontinued operations 273 (20) -- -- 253
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 2,912 $ (276) $ (742) $ 451 $ 2,345
----------- ----------- ----------- ----------- -----------
7
AmREIT
Summary of Operating Results
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------------
Funds From Operations: 2007 2006 2007 2006
---------- ------------------------ ----------
Income - before discontinued operations $ 1,101 $ 974 $ 2,100 $ 2,092
Income - from discontinued operations -- 279 4 253
Plus depreciation of real estate assets - from operations 1,961 2,425 3,900 4,589
Plus depreciation of real estate assets - from
discontinued operations 10 6 14 16
Adjustments for nonconsolidated affiliates 19 39 36 69
Less gain on sale of real estate acquired for investment -- (293) -- (286)
Less class B, C & D distributions (2,711) (2,914) (5,416) (5,820)
---------- ------------------------ ----------
Total Funds From Operations available to class A
shareholders $ 380 $ 516 $ 638 $ 913
========== ======================== ==========
Weighted Average Class A Shares Outstanding 6,411 6,348 6,366 6,733
========== ======================== ==========
Funds from Operations per Class A Share $ 0.06 $ 0.08 $ 0.10 $ 0.14
Dividends:
Class A Common share dividends per share $ 0.12 $ 0.12 $ 0.24 $ 0.24
Class B Common share dividends per share (1) $ 0.19 $ 0.19 $ 0.38 $ 0.38
Class C Common share dividends per share (2) $ 0.17 $ 0.17 $ 0.34 $ 0.34
Class D Common share dividends per share (3) $ 0.16 $ 0.16 $ 0.32 $ 0.32
(1) The class B common shares receive a cumulative preferred dividend, fixed
at 8%, payable quarterly. The shares are currently convertible on a
one-for-one basis into our class A common shares, and are callable by the
Company on a one for one basis, or $10.18 in cash at the holders option.
(2) The class C common shares receive a preferred dividend, fixed at 7%,
payable monthly. The shares are convertible into our class A common shares
based on 110% of invested capital (i.e. $1,000 in class C common shares
will convert into $1,100 in class A common shares) after the seventh
anniversary of issuance (beginning in 2010). We have the right to force
conversion of the class C common shares into Class A common shares on a
one-for-one basis or to redeem the shares at a cash redemption price of
$11.00 per share at the holder's option.
(3) The class D common shares receive a fixed 6.5% annual dividend, payable
monthly. The shares are convertible into our class A common shares based
on 107.7% of invested capital (i.e. $1,000 in class C common shares will
convert into $1,077 in class A common shares) after the seventh
anniversary of issuance (beginning in 2011). The class D common shares
became callable by the Company beginning in July 2005, based on the same
conversion formula, prorated for the time the shares were outstanding
(107.7% of invested capital).
8
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
Rental and Earned Income: 2007 2006 2007 2006
---------- ---------- ---------- ----------
Base minimum rent $ 5,397 $ 5,439 $ 10,631 $ 9,685
Earned income from direct financing leases 508 508 1,015 1,015
Straight line rent 163 91 310 115
Over/Under market rent 50 33 81 35
Percentage rent 38 38 25 174
Tenant reimbursements 1,932 1,886 3,615 2,850
Lease termination fees 153 -- 153 601
---------- ---------- ---------- ----------
Total Rental and Earned Income $ 8,241 $ 7,995 $ 15,830 $ 14,475
========== ========== ========== ==========
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
Real Estate Operating Revenue: 2007 2006 2007 2006
----------- ----------- ----------- -----------
Development and construction management fees
Merchant development funds and affiliates $ 45 $ 112 $ 453 $ 276
Unrelated third parties 92 -- 158 --
Leasing and brokerage commissions
Merchant development funds and affiliates 95 718 193 1,219
Unrelated third parties 68 -- 696 751
Property management fees
Merchant development funds and affiliates 209 80 416 182
Unrelated third parties -- -- -- --
----------- ----------- ----------- -----------
Total Real Estate Operating Revenue $ 509 $ 910 $ 1,916 $ 2,428
=========== =========== =========== ===========
Percent attributable to merchant 69% 100% 55% 69%
development funds and affiliates
Percent attributable to unrelated third 31% 0% 45% 31%
parties
9
Discontinued Operations: Quarter YTD
-------------------------- --------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Rental revenue and earned income from DFL $ 44 $ 24 $ 68 $ 52
Gain on sale of real estate held for investment -- 293 -- 286
Gain on sale of real estate held for resale -- 7 -- 12
----------- ----------- ----------- -----------
Total revenues 44 324 68 350
----------- ----------- ----------- -----------
Property expense (7) (112) -- (114)
Other general and administrative (6) 16 (6) 1
Federal income tax expense (2) 15 (4) 13
Legal and professional (3) (2) (5) (13)
Depreciation and amortization (11) (6) (14) (16)
Minority interest (6) 44 (12) 39
Interest expense (9) -- (23) (7)
----------- ----------- ----------- -----------
Total expenses (44) (45) (64) (97)
----------- ----------- ----------- -----------
Income (loss) from discontinued operations -- 279 4 253
Basic and diluted income from discontinued operations
per class A common share $ -- $ 0.04 $ -- $ 0.04
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
Interest Expense: 2007 2006 2007 2006
----------- ----------- ----------- -----------
Interest paid - floating rate $ 72 $ 249 $ 429 $ 287
Interest paid - fixed rate 2,267 1,838 4,258 3,542
Loan cost amortization 71 61 138 119
Out-of-market debt amortization (59) (58) (117) (115)
----------- ----------- ----------- -----------
Total Interest Expense $ 2,351 $ 2,090 $ 4,708 $ 3,833
----------- ----------- ----------- -----------
10
AmREIT
Summary Balance Sheet Information
June 30, 2007 December 31, 2006
----------------- -----------------
Class A Common Share Data:
Closing market price $ 8.75 $ 8.33
Dividend yield 5.71% 6.00%
90-day average trading volume 12,719 16,474
Total Capitalization:
Debt $ 157,545 $ 144,453
Class A common shares at market 56,215 52,127
Class B common shares as converted 9,090 8,998
Class C common shares as converted 45,655 45,601
Class D common shares as converted 119,120 118,899
----------------- -----------------
Total Capitalization $ 387,626 $ 370,078
================= =================
Debt to Total Capitalization 40.6% 39.0%
Portfolio Net Asset Value:
Annual Property NOI $ 24,060 ~
Average Property Cap Rate (1) 6.25% 6.65%
Property Gross Value 384,960 361,804
Notes Receivable 6,776 6,776
Cash, Receivables, Other 20,410 20,410
-----------------------
Total Asset Value 412,146 388,990
Notes Payable (153,479) (153,479)
Security Deposits & A/P (5,899) (5,899)
-----------------------
Total Liabilities (159,378) (159,378)
Minority Interest (2) (2,992) (2,992)
Total Net Asset Value (NAV) 249,776 226,620
NAV - Non Traded Shares (3) 170,497 170,497
NAV - class A common shares (3) 79,279 56,123
NAV - Per Class A common (3) $ 12.34 $ 8.74
(1) We have widened the upper end of our Average Property Cap Rate range from
6.50% to 6.65% as a result of the current volatile market conditions.
(2) Includes the portion of the net asset value that is owned by third parties
or management, such as management's ownership interest in AAA CTL.
(3) NAV and NAV per share represent only the portfolio value and other liquid
assets. We have not valued the asset advisory business or any of our general
partner back end interests in the above analysis.
- --------------------------------------------------------------------------------
11
AmREIT
Debt Information
Description Amount Amount
Outstanding Outstanding Interest Annual Debt Maturity
06-30-2007 12-31-2006 Rate Service Date
- -------------------------------------------------------------------------------------------
Credit Facility (1) $ 5,856 $ 11,929 7.19% $ 421 11/4/2007
-------------------------
2007 Maturities $ 5,856 $ 11,929
MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008
-------------------------
2008 Maturities $ 13,410 $ 13,410
Sugarland IHOP $ 1,133 $ 1,155 8.25% $ 138 3/1/2011
Sugar Land Plaza 2,272 2,286 7.60% 203 11/1/2011
-------------------------
2011 Maturities $ 3,405 $ 3,441
Albuquerque IHOP $ 659 $ 670 7.82% $ 75 4/24/2012
Baton Rouge IHOP 1,088 1,107 7.82% 124 4/24/2012
Beaverton IHOP 772 785 7.82% 88 4/16/2012
Charlottesville IHOP 548 558 7.82% 62 4/24/2012
El Paso #1934 IHOP 662 673 7.82% 75 4/16/2012
Rochester IHOP 828 842 7.82% 94 4/16/2012
Shawnee IHOP 653 665 7.82% 74 4/18/2012
5115 Buffalo Spdwy 2,715 2,731 7.58% 241 5/11/2012
Salem IHOP 542 551 7.82% 61 5/17/2012
Springfield IHOP 899 915 7.82% 102 6/21/2012
Roanoke IHOP 624 635 7.89% 71 7/26/2012
Centerville IHOP 1,091 1,110 7.89% 124 7/26/2012
Memphis #4462 IHOP 1,180 1,199 7.89% 134 7/19/2012
Alexandria IHOP 630 640 7.89% 71 7/19/2012
El Paso #1938 IHOP 788 802 7.89% 89 8/23/2012
La Verne IHOP 657 668 7.89% 74 8/23/2012
Memphis #4482 IHOP 685 696 7.89% 77 8/23/2012
Parker IHOP 737 749 7.89% 83 8/23/2012
-------------------------
2012 Maturities $ 15,758 $ 15,996
Cinco Ranch $ 8,229 $ 8,298 5.60% $ 601 7/10/2013
Plaza in the Park 17,392 17,538 5.60% 1,270 7/10/2013
-------------------------
2013 Maturities $ 25,621 $ 25,836
12
Description Amount Amount
Outstanding Outstanding Interest Annual Debt Maturity
06-30-2007 12-31-2006 Rate Service Date
- ---------------------------------------------------------------------------------------------
Uptown Park $ 49,000 $ 49,000 5.37% $ 2,631 6/1/2015
----------- -----------
2015 Maturities $ 49,000 $ 49,000
Southbank - Riverwalk $ 20,000 $ -- 5.91% $ 1,182 6/1/2016
----------- -----------
2016 Maturities $ 20,000 $ --
Bakery Square $ 3,838 $ 3,967 8.00% $ 571 2/10/2017
Uptown Plaza Dallas $ 19,900 $ -- 5.64% $ 783 4/1/2017
----------- -----------
2017 Maturities $ 23,738 $ 3,967
----------- -----------
Total Maturities (2) $ 156,788 $ 143,579
=========================
(1) Our revolving credit facility is a variable-rate debt instrument, and its
outstanding balance fluctuates throughout the year based on our liquidity needs.
Annual Debt Service on this debt instrument assumes that the amount outstanding
and the interest rate as of June 30, 2007 remain constant through maturity.
(2) Total maturities above are $757 thousand and $874 thousand less than total
debt as reported in our consolidated financial statements as of June 30, 2007
and December 31, 2006, respectively, due to the premium recorded on above-market
debt assumed in conjunction with certain of our property acquisitions.
Fixed vs. Variable Rate Debt:
June 30, % of December 31, % of
2007 Total 2006 Total
------------------------------------------------------------
Variable rate $ 5,856 3.7% $ 11,929 8.3%
Fixed rate 151,689 96.3% 132,524 91.7%
------------ ------------ ------------ ------------
$ 157,545 100.0% $ 144,453 100.0%
13
AmREIT
Property & Tenant Information
Multi-Tenant Shopping Centers Major Tenants City
- -----------------------------------------------------------------------------------------
Uptown Park - Phase I and II Ann Taylor, McCormick & Schmick's Houston
Southbank - Riverwalk Hard Rock Cafe San Antonio
MacArthur Park and Pad Sites Kroger Irving
Plaza in the Park Kroger Houston
Cinco Ranch Kroger Houston
Bakery Square Walgreens & Bank of America Houston
Uptown Plaza CVS/pharmacy Houston
Woodlands Plaza FedEx/Kinkos & Rug Gallery The Woodlands
Sugarland Plaza Mattress Giant Sugarland
Terrace Shops Starbucks Houston
584 N. Germantown Pkwy
(Baptist Memorial Medical Plaza) Auto Zone & Baptist Memorial Memphis
Courtyard on Post Oak Verizon Wireless Houston
Uptown Plaza - Dallas Grotto, Century Bank, Pei Wei Dallas
Multi-Tenant Shopping Centers Total
Annualized
Based Rent as
Date of June 30, %
Multi-Tenant Shopping Centers State Acquired GLA 2007 Leased
- ------------------------------------------------------------------------------------------------
Uptown Park - Phase I and II TX 6/1/2005 169,110 $4,946,926 98%
Southbank - Riverwalk TX 9/30/2005 46,673 1,511,552 100%
MacArthur Park and Pad Sites TX 12/04 &12/05 237,381 3,827,651 95%
Plaza in the Park TX 7/1/2004 144,062 2,596,122 98%
Cinco Ranch TX 7/1/2004 97,297 1,228,515 99%
Bakery Square TX 7/21/2004 34,614 852,138 100%
Uptown Plaza TX 12/10/2003 28,000 1,236,646 100%
Woodlands Plaza TX 6/3/1998 20,018 373,317 100%
Sugarland Plaza TX 7/1/1998 16,750 349,612 100%
Terrace Shops TX 12/15/2003 16,395 440,628 100%
584 N. Germantown Pkwy
(Baptist Memorial Medical Plaza) TN 7/23/2002 15,000 194,026 75%
Courtyard on Post Oak TX 6/15/2004 13,597 477,361 100%
Uptown Plaza - Dallas TX 3/30/2006 33,840 1,619,902 100%
----------------------
Multi-Tenant Shopping Centers Total 872,737 19,654,396
Annualized
Base Rent as
Single Tenant Date of June 30, %
(Ground Leases) City State Acquired GLA 2007 Leased
- -------------------------------------------------------------------------------------------------------------
CVS Corporation Houston TX 1/10/2003 13,824 $ 327,167 100%
Darden Restaurants Peachtree City GA 12/18/1998 6,867 79,366 100%
Carlson Restaurants Hanover MD 9/16/2003 6,802 141,674 100%
Citibank San Antonio TX 12/17/2004 4,439 159,979 100%
Washington Mutual Houston TX 12/11/1996 3,685 98,155 100%
Washington Mutual The Woodlands TX 9/23/1996 3,685 63,996 100%
Woodlands Ring Road - Ground Leases The Woodlands TX 2/1/2007 66,349 667,341 100%
------------------------
Single Tenant (Ground Leases) Total 105,651 1,537,678
14
Annualized
Base Rent as
Date of June 30, %
Single Tenant (Fee Simple) City State Acquired GLA 2007 Leased
- ---------------------------------------------------------------------------------------------------------------
Golden Corral Houston TX 7/23/2002 12,000 182,994 100%
Golden Corral Humble TX 7/23/2002 12,000 181,688 100%
Carlson Restaurants Houston TX 7/23/2005 8,500 200,000 100%
#1483 IHOP Corporation Sugarland TX 9/22/1999 4,020 189,660 100%
#1737 IHOP Corporation (5) Centerville UT 7/25/2002 4,020 163,380 100%
#4462 IHOP Corporation (5) Memphis TN 8/23/2002 4,020 179,376 100%
#5318 IHOP Corporation Topeka KS 9/30/1999 4,020 158,892 100%
AFC, Inc. Atlanta GA 7/23/2002 2,583 119,279 100%
Sunbelt Rental (1) Champaign IL 5/23/2007 -- Note (1) Note (1)
Advance Auto (1)(2)(3)(4) Various Various Various 14,000 Note (1) Note (1)
------------------------
Single Tenant (Fee Simple) Total 65,163 1,375,269
Annualized
Base Rent as
Date of June 30, %
Single Tenant (Leasehold) City State Acquired GLA 2007 Leased
- ---------------------------------------------------------------------------------------------------------------
IHOP Corporation (5) Various Various Various 60,300 $ 1,555,800 100%
----------------------------
Company Total GLA % Leased 1,103,851 $ 24,123,143 98%
(1) Under Development (GLA represents proposed leaseable square footage).
(2) Held for Sale
(3) Held in joint venture of which we are the managing 50% owner.
(4) Advance Auto properties are located in MO and IL. Each of the properties
has a proposed GLA of 7,000 square feet.
(5) IHOP properties are located in NM, LA, OR, VA, TX, CA, TN, CO, VA, NY, OR,
KS, UT and MO. Each of the properties has a GLA of 4,020 square feet.
These properties are held by a consolidated subsidiary, 79.0% of which is
owned by AmREIT,19.6% of which is owned by AmREIT Income & Growth Fund,
one of our affiliated merchant development funds, and 1.4% of which is
owned by unaffiliated third parties. We have assigned to management
approximately 50% of our back-end participation interest in this entity as
part of our long-term incentive compensation program. Accordingly,
approximately half of the future net cash flows from such participation
interest are owned by management
15
Top Tenants by revenue concentration for the six months ended June 30, 2007:
% of Total
Operating
Tenant Rental Income Revenue
-------------- --------------
Kroger $ 1,696 7.47%
IHOP Corporation 1,124 4.95%
CVS/Pharmacy 562 2.48%
Landry's 524 2.31%
Linens `N Things 437 1.92%
Hard Rock Cafe International 340 1.50%
Cosniac Restaurant Group 296 1.30%
Champps Entertainment, Inc. 277 1.22%
Barnes & Noble 267 1.18%
Starbucks 250 1.10%
-------------- --------------
Total $ 5,773 25.42%
============== ==============
Leasing Activity for the quarter ended June 30, 2007:
Rent per sq. ft.
-------------------------------
# of leases Total sq. ft. New Rent Old Rent % Change
-------------- -------------- -------------- -------------- --------------
New leases 6 12,035 $ 33.23 N/A N/A
Activity on Existing Leases:
Lease renewals 5 19,928 $ 22.70 $ 20.19 12.43%
Non-renewals 0 -- N/A -- N/A
Expired/Cancelled leases 1 1,633 N/A $ 30.00 N/A
16
Lease Expirations by Year:
Number of
Expiration Leases Square Percent
Year Expiring Footage Of Total
- --------------------------------------------------------------------------------
2007 6 7,865 0.63%
2008 22 67,553 5.44%
2009 34 94,717 7.63%
2010 33 130,074 24.55%
2011 51 191,675 15.44%
2012 17 59,118 4.76%
2013 8 34,363 2.77%
2014 7 27,220 2.19%
2015 2 7,251 0.58%
2016 11 53,168 4.28%
2017 6 45,873 3.70%
2019 1 4,020 0.32%
2020 4 75,991 6.12%
2021 3 89,676 7.22%
2022 1 4,020 0.32%
2023 1 63,373 5.11%
2024 3 21,864 1.76%
2025 7 45,597 3.67%
2026 4 16,080 1.30%
2027 3 12,060 0.97%
2056 1 15,120 1.22%
- --------------------------------------------------------------------------------
Totals 225 1,066,678 100.00%
17