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