Exhibit 99.2
AmeriVest
Properties Inc.
Supplemental Operating and Financial Information
Fourth Quarter 2003
For the three months and year ended December 31, 2003.
All dollar amounts shown in this report are unaudited except for the
Consolidated Balance Sheet and Consolidated Statement of Operations
as of and for the year ended December 31, 2002.
This Supplemental Operating and Financial Data is not an offer to
sell or solicitation to buy any securities of AmeriVest Properties.
Any offers to sell or solicitations to buy any securities of AmeriVest
Properties shall be made by means of a prospectus.
Table of Contents
Corporate Information 1
Financial Information
Selected Financial Data 3
Consolidated Statements of Operations 4
Geographic Operating Information - 2003 5
Geographic Operating Information - 2002 6
Non-GAAP Financial Measures 7
Consolidated Balance Sheets 8
Debt Summary 9
Portfolio Information
Property Summary 10
Lease Expiration Information 11
Other Property Information 13
AmeriVest
Properties Inc.
Corporate Information
Company Overview
AmeriVest Properties Inc. is a real estate investment trust (REIT)
which owns and operates commercial office buildings in select markets
catering to small and medium size businesses. At December 31, 2003,
AmeriVest owned 30 properties totaling 2,222,079 square feet located
in Colorado, Texas, Arizona and Indiana. The Company's core portfolio
(which excludes assets it owns less than 100% and smaller office
buildings primarily leased to the State of Texas and Bank of America)
included 12 properties totaling 1,879,881 square feet located in
metropolitan Denver, Phoenix, Dallas and Indianapolis.
Strategy
We believe that office space for small to medium size businesses
is a large and underserved market. According to data compiled by the
Office of Advocacy of the U.S. Small Business Administration in 2002,
89% of all U.S. businesses employed fewer than 20 employees. As a
result, we believe that many businesses have office space requirements
of no more than 4,000 square feet.
Small to medium size businesses often have specific needs and
limitations that are different from larger businesses. For example,
small and medium size businesses cannot usually afford large corporate
staffs to manage office leasing. These businesses have needs similar
to larger firms, such as access to cutting edge technology, conference
facilities, high quality telecommunications equipment and other
amenities, but usually do not have a comparable budget to those firms.
Our strategy is to focus on providing an office product targeted to
this large market and its unmet needs in a cost effective manner. The
key elements of our strategy include:
- -- Provide a superior, consistent product - We seek to provide a
level of amenities to the small and medium size tenant in our
office properties that usually only larger companies would be able
to obtain, such as keyless entry card systems, use of conference
rooms with the latest telecommunication and presentation
equipment, and the ability to access high speed voice and data
service from multiple providers.
- -- Simplify the leasing process - Our leasing process is designed to
meet the unique needs of a small to medium size tenant base with
limited staffing through our "no hassle" leasing philosophy which
reduces the per lease cost for us and the tenant.
- -- Provide a high level of service - With our deliberate focus on
small and medium size tenants, we have developed a positive,
service-oriented approach specifically tailored for our customer
base.
- -- Target select cities - We target cities that meet specific
criteria where we hope to build meaningful multi-property
portfolios over the near term.
As a result of our focused strategy, we believe that our
properties provide office space that is particularly attractive for
small and medium size tenants. By executing on our strategy, we
believe we have been able to maintain high occupancy rates while still
maintaining strong rent per square foot trends in our core markets as
compared to the general office market.
1
AmeriVest
Properties Inc.
Directors and Executive Officers
Initial Date
Name Position as Director
---- -------- ------------
William T. Atkins Chief Executive Officer, Director and
Chairman of the Board 1999
Charles K. Knight President, Chief Operating Officer and
Director 1999
Kathryn L. Hale Chief Financial Officer and Secretary -
John B. Greenman Chief Investment Officer and Vice President -
Patrice Derrington Outside Director 2003
James F. Etter Outside Director 1995
Harry P. Gelles Outside Director 2000
Robert W. Holman, Jr. Outside Director 2001
John A. Labate Outside Director 1995
Jerry J. Tepper Outside Director 2000
Corporate Headquarters Investor Relations
1780 South Bellaire Street Kim P. Boswood
Suite 100 (303) 297-1800 x118
Denver, Colorado 80222 kim@amvproperties.com
(303) 297-1800
Stock Exchange Ticker
American Stock Exchange AMV
2
AmeriVest
Properties Inc.
Financial Information
Selected Financial Data
As of and for the three months ended-
-----------------------------------------------------------------
12/31/2003 9/30/2003 6/30/2003 3/31/2003 12/31/2002
-----------------------------------------------------------------
(Amounts in thousands, except share, per share and property data)
Operating Data-
Real estate operating revenue $8,939 $7,164 $6,948 $6,815 $5,448
General and administrative expenses 1,171 777 743 837 685
G&A as a percentage of revenue 13.1% 10.9% 10.7% 12.3% 12.6%
Earnings Per Share-
Net income/(loss) $(1,251) $(24) $(1,110) $405 $(1,084)
Earnings/(loss) per share - basic (0.07) 0.00 (0.09) 0.04 (0.10)
Earnings/(loss) per share - diluted (0.07) 0.00 (0.09) 0.04 (0.10)
Funds From Operations (FFO)(1)-
FFO $1,317 $1,667 $358 $1,786 $136
FFO per share - basic 0.08 0.10 0.03 0.16 0.01
FFO per share - diluted 0.07 0.10 0.03 0.16 0.01
Balance Sheet Data-
Net investment in real estate $223,893 $200,899 $160,920 $162,095 $144,985
Total assets 240,500 216,245 181,218 175,764 157,184
Total liabilities 170,396 142,834 105,729 130,527 113,288
Total stockholders' equity 70,104 73,411 75,489 45,237 43,896
Common Stock Data-
Common shares outstanding 17,401,309 17,375,467 17,348,052 11,542,713 11,060,260
Weighted average shares - basic 17,383,652 17,356,751 12,806,389 11,100,292 10,990,919
Weighted average shares - diluted 17,633,834 17,459,294 12,906,283 11,203,104 11,146,351
Closing share price $7.18 $6.50 $6.26 $6.29 $6.20
Share price range for period (high - low) 6.50 - 7.21 6.75 - 6.11 6.65 - 5.85 6.55 - 5.66 6.29 - 5.00
Dividends declared per share 0.13 0.13 0.13 0.13 0.13
Annualized dividend yield 7.2% 8.0% 8.3% 8.3% 8.4%
Market value of common equity $124,941 $112,941 $108,599 $72,604 $68,574
Total liabilities 170,396 142,834 105,729 130,527 113,288
-----------------------------------------------------------------
Total market capitalization $295,337 $255,775 $214,328 $203,131 $181,862
=================================================================
Cash Flow Data-
Net cash flow from operating activities $3,265 $2,812 $2,590 $1,984 $1,868
Net cash flow from investing activities (18,859) (16,536) (2,199) (18,468) (41,014)
Net cash flow from financing activities 15,899 6,441 5,306 16,925 27,082
-----------------------------------------------------------------
Net change in cash and cash equivalents $305 $(7,283) $5,697 $441 $(12,064)
=================================================================
Property Data-
Properties owned 30 28 27 27 26
Rentable square feet 2,222,079 1,891,352 1,563,063 1,564,090 1,416,350
Occupancy 84.2% 86.8% 89.0% 88.5% 88.0%
(1) See page 7 for a reconciliation of FFO from net income/(loss) and a comparison of FFO per share to
earnings/(loss) per share, the most directly comparable GAAP measures.
3
AmeriVest
Properties Inc.
Consolidated Statements of Operations
For the three
months ended For year ended
December 31, December 31,
--------------------------------------------------------
2003 2002 2003 2002
--------------------------------------------------------
Real Estate Operating Revenue
Rental revenue $8,939,101 $5,448,123 $29,865,670 $16,385,965
Real Estate Operating Expenses
Property operating expenses-
Operating expenses 2,669,274 1,209,843 8,117,055 3,935,774
Real estate taxes 1,313,889 622,105 3,721,266 1,628,455
Management fees 27,420 76,067 141,150 173,011
General and administrative expenses 1,170,315 685,013 3,527,747 1,755,104
Advisory fee - 1,115,470 - 1,367,380
Interest expense 2,459,527 1,370,148 7,867,534 4,144,231
Depreciation and amortization expense 2,546,322 1,200,928 7,023,923 3,362,508
Impairment of investment in real estate - 275,000 1,465,932 275,000
--------------------------------------------------------
Total operating expenses 10,186,747 6,554,574 31,864,607 16,641,463
--------------------------------------------------------
Other Income/(Loss)
Interest income 12,283 28,558 73,470 164,519
Equity in loss of unconsolidated affiliate (16,502) (6,098) (54,953) (66,295)
--------------------------------------------------------
Total other income (4,219) 22,460 18,517 98,224
--------------------------------------------------------
Net Loss $(1,251,865) $(1,083,991) $(1,980,420) $(157,274)
========================================================
Loss Per Share
Basic $(0.07) $(0.10) $(0.13) $(0.02)
========================================================
Diluted $(0.07) $(0.10) $(0.13) $(0.02)
========================================================
Weighted Average Common Shares
Outstanding
Basic 17,383,652 10,990,919 14,686,369 9,341,608
========================================================
Diluted 17,383,652 10,990,919 14,686,369 9,341,608
========================================================
4
AmeriVest
Properties Inc.
Geographic Operating Information - 2003
For the three months ended December 31, 2003-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
-------------------------------------------------------------------------------------
Real estate operating revenue $2,303,768 $2,184,295 $3,345,276 $429,531 $676,231 $- $8,939,101
Real estate operating expenses 1,141,751 1,072,872 1,264,701 168,052 363,207 - 4,010,583
-------------------------------------------------------------------------------------
Net operating income 1,162,017 1,111,423 2,080,575 261,479 313,024 - 4,928,518
-------------------------------------------------------------------------------------
Percent of total 23.6% 22.5% 42.2% 5.3% 6.4% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (1,170,315)
Interest expense (2,459,527)
Depreciation and amortization expense (2,546,322)
Interest income 12,283
Equity in loss of unconsolidated affiliate (16,502)
-------------
Total adjustments (6,180,383)
-------------
Net loss $(1,251,865)
=============
As of and for the year ended December 31, 2003-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
-------------------------------------------------------------------------------------
Real estate operating revenue $9,826,929 $7,977,271 $7,668,558 $1,700,688 $2,692,224 $- $29,865,670
Real estate operating expenses 4,117,176 3,153,566 2,595,979 643,315 1,469,435 - 11,979,471
-------------------------------------------------------------------------------------
Net operating income 5,709,753 4,823,705 5,072,579 1,057,373 1,222,789 - 17,886,199
-------------------------------------------------------------------------------------
Percent of total 31.9% 27.0% 28.4% 5.9% 6.8% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (3,527,747)
Interest expense (7,867,534)
Depreciation and amortization expense (7,023,923)
Impairment of investment in real estate (1,465,932)
Interest income 73,470
Equity in loss of unconsolidated affiliate (54,953)
-------------
Total adjustments (19,866,619)
-------------
Net loss $(1,980,420)
=============
Net investment in real estate $69,263,737 $53,635,337 $80,694,052 $10,301,735 $9,901,296 $96,439 $223,892,596
=====================================================================================
Total assets $70,829,970 $55,369,359 $81,954,953 $10,257,685 $16,083,660 $6,004,835 $240,500,462
=====================================================================================
Properties owned 4 3 4 1 18 - 30
Rentable square feet 556,839 575,179 633,803 114,060 342,198 - 2,222,079
Occupancy 81.9% 88.6% 83.5% 86.4% 81.1% - 84.2%
(1) Includes the State of Texas Buildings, Bank of America Buildings and Panorama Falls.
5
AmeriVest
Properties Inc.
Geographic Operating Information - 2002
For the three months ended December 31, 2002-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
-----------------------------------------------------------------------------------------
Real estate operating revenue $2,335,628 $1,324,253 $597,600 $412,521 $778,021 $100 $5,448,123
Real estate operating expenses 832,127 428,027 157,606 137,504 322,056 30,695 1,908,015
-----------------------------------------------------------------------------------------
Net operating income/(loss) 1,503,501 896,226 439,994 275,017 455,965 (30,595) 3,540,108
-----------------------------------------------------------------------------------------
Percent of total 42.5% 25.3% 12.4% 7.8% 12.9% (0.9)% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (685,013)
Advisory fee (1,115,470)
Interest expense (1,370,148)
Depreciation and amortization expense (1,200,928)
Impairment of investment in real estate (275,000)
Interest income 28,558
Equity in loss of unconsolidated affiliate (6,098)
----------------
Total adjustments (4,624,099)
----------------
Net loss $(1,083,991)
================
As of and for the year ended December 31, 2002-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
-----------------------------------------------------------------------------------------
Real estate operating revenue $8,093,737 $1,532,476 $2,126,544 $1,698,597 $2,934,136 $475 $16,385,965
Real estate operating expenses 2,718,846 478,899 588,868 581,948 1,324,172 44,507 5,737,240
-----------------------------------------------------------------------------------------
Net operating income/(loss) 5,374,891 1,053,577 1,537,676 1,116,649 1,609,964 (44,032) 10,648,725
-----------------------------------------------------------------------------------------
Percent of total 50.5% 9.9% 14.4% 10.5% 15.1% (0.4)% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (1,755,104)
Advisory fee (1,367,380)
Interest expense (4,144,231)
Depreciation and amortization expense (3,362,508)
Impairment of investment in real estate (275,000)
Interest income 164,519
Equity in loss of unconsolidated affiliate (66,295)
----------------
Total adjustments (10,805,999)
----------------
Net loss $(157,274)
================
Net investment in real estate $66,960,215 $43,969,357 $13,303,237 $8,963,184 $11,710,924 $78,411 $144,985,328
=========================================================================================
Total assets $68,183,643 $44,549,995 $13,419,895 $9,068,596 $17,530,246 $4,431,212 $157,183,587
=========================================================================================
Properties owned 4 2 1 1 18 - 26
Rentable square feet 557,774 323,323 96,092 96,520 342,641 - 1,416,350
Occupancy 83.7% 97.7% 100.0% 97.1% 80.0% - 88.0%
(1) Includes the State of Texas Buildings, Bank of America Buildings and Panorama Falls.
6
AmeriVest
Properties Inc.
Non-GAAP Financial Measures
Funds From Operations (FFO) is a non-GAAP financial measure. We believe
FFO, as defined by the Board of Governors of the National Association of Real
Estate Investment Trusts (NAREIT), to be an appropriate measure of performance
for an equity REIT, for reasons, and subject to the qualifications, specified in
the paragraph entitled "Non-GAAP Financial Measures" below. The following table
reflects the reconciliation of FFO from net income/(loss) and a comparison of
FFO per share to earnings/(loss) per share, the most directly comparable GAAP
measures:
As of and for the three months ended-
------------------------------------------------------------
12/31/2003 9/30/2003 6/30/2003 3/31/2003 12/31/2002
------------------------------------------------------------
(Amounts in thousands except share and per share data)
Funds From Operations (FFO)-
Net income/(loss) $(1,251) $(24) $(1,110) $405 $(1,084)
Depreciation and amortization 2,546 1,669 1,448 1,361 1,201
Share of depreciation and amortization
of unconsolidated affiliate 22 22 20 20 19
------------------------------------------------------------
FFO $1,317 $1,667 $358 $1,786 $136
============================================================
Earnings/(loss) per share - diluted $(0.07) $0.00 $(0.09) $0.04 $(0.10)
============================================================
FFO per share - diluted $0.07 $0.10 $0.03 $0.16 $0.01
============================================================
Common Stock Data-
Weighted average shares - diluted 17,633,834 17,459,294 12,906,283 11,203,104 11,146,351
Non-GAAP Financial Measures: Funds From Operations (FFO) is a non-GAAP
financial measure. FFO is defined as net income/(loss), computed in accordance
with generally accepted accounting principles (GAAP), excluding gains/(loss)
from the sales of properties, plus real estate related depreciation and
amortization and after adjustments for unconsolidated partnerships and joint
ventures. We believe that FFO is helpful to investors as a measure of
performance of an equity REIT because, along with cash flow from operating
activities, investing activities and financing activities, it provides investors
with an indication of the ability of a company to incur and service debt, to
make capital expenditures and to fund other cash needs. We compute FFO in
accordance with standards established by the Board of Governors of the National
Association of Real Estate Investment Trusts (NAREIT), which may not be
comparable to FFO reported by other REITs that do not define the term in
accordance with the current NAREIT definition or that interpret the current
NAREIT definition differently than we do.
7
AmeriVest
Properties Inc.
Consolidated Balance Sheets - At December 31, 2003 and 2002
2003 2002
------------------------------
Assets
Investment in real estate-
Land $29,647,423 $20,730,999
Buildings and improvements 187,560,948 124,597,852
Furniture, fixtures and equipment 799,730 467,188
Tenant improvements 6,159,440 2,969,044
Tenant leasing commissions 1,063,204 450,647
Intangible assets 11,468,120 2,153,229
Less: accumulated depreciation and amortization (12,806,269) (6,383,631)
------------------------------
Net investment in real estate 223,892,596 144,985,328
Cash and cash equivalents 1,478,285 2,318,566
Escrow deposits 5,778,427 2,335,519
Investment in unconsolidated affiliate 1,364,032 1,390,560
Due from related party 3,371,526 3,257,826
Due from unconsolidated affiliate 262,347 217,578
Accounts receivable 296,377 286,691
Deferred rents receivable 1,401,455 671,737
Deferred financing costs, net of accumulated amortization
of $519,399 and $130,773, respectively 2,301,043 1,243,907
Prepaid expenses and other assets 354,374 475,875
------------------------------
Total assets $240,500,462 $157,183,587
==============================
Liabilities
Mortgage loans and notes payable $159,530,410 $106,094,232
Accounts payable and accrued expenses 2,736,657 2,384,620
Accrued real estate taxes 3,169,183 1,714,594
Prepaid rents, deferred revenue and security deposits 2,697,635 1,656,507
Dividends payable 2,262,170 1,437,834
------------------------------
Total liabilities 170,396,055 113,287,787
------------------------------
Stockholders' Equity
Preferred stock, $.001 par value
Authorized - 5,000,000 shares
Issued and outstanding - none - -
Common stock, $.001 par value
Authorized - 75,000,000 shares
Issued and outstanding - 17,401,309 and 11,060,260 shares,
respectively 17,401 11,060
Capital in excess of par value 91,706,371 55,247,483
Distributions in excess of accumulated earnings (21,619,365) (11,362,743)
------------------------------
Total stockholders' equity 70,104,407 43,895,800
------------------------------
Total liabilities and stockholders' equity $240,500,462 $157,183,587
==============================
8
AmeriVest
Properties Inc.
Debt Summary - At December 31, 2003 and 2002
2003 2002
---------------------------------------------
Maturity Principal Interest Principal Interest
Lender Mortgaged Property Date Balance Rate(1) Balance Rate(1)
- ---------------------------------------------------------------------------------------------------------------------------
Fixed Rate-
Teachers Insurance and AmeriVest Plaza at
Annuity Association of America Inverness 1/10/2006 $14,572,888 7.90% $14,721,273 7.90%
Greenwich Capital Financial Parkway Centre II
Products Centerra
Southwest Gas Building 10/1/2008 38,876,849 5.13% - -
Allstate Life Insurance Company Financial Plaza 10/5/2010 24,669,760 5.25% - -
Southern Farm Bureau Life Insurance Company Scottsdale Norte 4/1/2011 6,625,460 7.90% - -
Teachers Insurance and Annuity Sheridan Center
Association of America Arrowhead Fountains
Kellogg Building 1/1/2013 29,309,686 7.40% 29,700,000 7.40%
Jefferson Pilot Bank of America
Buildings 5/1/2013 1,292,749 9.00% 1,377,372 9.00%
Security Life of Denver Insurance Keystone Office Park -
Company 1st 5/1/2022 4,334,828 8.00% 4,435,814 8.00%
Security Life of Denver Insurance Keystone Office Park -
Company 2nd 5/1/2022 485,638 8.63% 496,064 8.63%
Transatlantic Capital Company, LLC State of Texas
Buildings 8/1/2028 5,660,436 7.66% 5,735,061 7.66%
---------------------------------------------
Subtotal $125,828,294 6.41% $56,465,584 7.65%
---------------------------------------------
Variable Rate-
Fleet National Bank - Chateau Plaza
Senior Secured Line of Credit Greenhill Park 11/12/2005 $18,470,020 3.90% $28,457,660 4.17%
Fleet National Bank - Unsecured
Unsecured Line of Credit 11/12/2005 15,149,725 5.17% - -
J.P. Morgan Chase Parkway Centre II - - - 17,000,000 3.39%
KeyBank National Association Panorama Falls - - - 4,072,283 3.91%
---------------------------------------------
Subtotal $33,619,745 4.47% $49,529,943 3.88%
---------------------------------------------
Other Notes Payable-
Lease Capital Corporation Phone system 10/31/2007 $82,371 11.11% $98,705 11.11%
---------------------------------------------
Subtotal $82,371 11.11% $98,705 11.11%
---------------------------------------------
Total $159,530,410 6.01% $106,094,232 5.89%
=============================================
Scheduled Maturities-
2004 $2,244,174
2005 36,017,028
2006 16,605,800
2007 2,516,001
2008 37,269,255
Thereafter 64,878,152
-------------
Total $159,530,410
=============
(1) Interest only, does not include amortization of deferred financing costs or
unused facility fees.
9
AmeriVest
Properties Inc.
Portfolio Information
Property Summary - At December 31, 2003 and 2002
2003 2002
--------------------------------------------------------
Average
Building/ Year Rentable Occupancy Average Occupancy Rent Per
Location Acquired Area(1) Rate(2) Rent Per SF(3) Rate(2) SF(3)
- -----------------------------------------------------------------------------------------------------------------------
Same Store-
Chateau Plaza
Dallas, TX 2002 171,294 100.0% $ 22.70 97.6% $ 22.79
Centerra
Denver, CO 2002 186,377 72.9% 19.89 68.1% 20.78
Parkway Centre II
Dallas, TX 2002 151,968 95.4% 20.61 97.9% 20.84
Kellogg Building
Littleton, CO 2001 111,580 85.8% 21.04 98.6% 21.92
Arrowhead Fountains
Peoria, AZ 2001 96,092 100.0% 21.85 100.0% 21.41
AmeriVest Plaza at Inverness
Englewood, CO
2001 118,720 91.3% 23.10 99.2% 23.57
Sheridan Center
Denver, CO 2000 140,162 82.7% 16.36 79.5% 15.83
----------------------------------------------------------------------
Subtotal 976,193 88.9% $20.84 89.9% $21.13
----------------------------------------------------------------------
2003 Acquisitions and Developments-
Greenhill Park
Dallas, TX 2003 251,917 76.7% $ 18.84 N/A N/A
Scottsdale Norte
Scottsdale, AZ 2003 79,223 80.9% 23.16 N/A N/A
Financial Plaza
Mesa, AZ 2003 310,828 80.5% 23.02 N/A N/A
Keystone Office Park(4)
Indianapolis, IN 1999/2003 114,060 86.4% 17.71 97.1% $17.33
Southwest Gas Building
Phoenix, AZ 2003 147,660 80.4% 22.10 N/A N/A
----------------------------------------------------------------------
Subtotal 903,688 80.2% $21.05 N/A N/A
----------------------------------------------------------------------
Joint Ventures-
Panorama Falls(5)
Englewood, CO 2000 59,561 78.0% $ 19.01 70.8% $ 19.15
----------------------------------------------------------------------
Subtotal 59,561 78.0% $19.01 70.8% $19.15
----------------------------------------------------------------------
Non-Core-
Texas Bank Buildings(6)
Texas 1998 60,095 100.0% $ 15.88 97.4% $ 16.00
Texas State Buildings(7)
Texas 1997-98 222,542 76.8% 9.00 77.7% 9.05
----------------------------------------------------------------------
Subtotal 282,637 81.7% $10.79 81.9% $10.81
----------------------------------------------------------------------
Total 2,222,079 84.2% $19.63 88.0% $18.86
======================================================================
(1) Includes office space but excludes storage, telecommunications and garage space.
(2) Includes space leased but not yet occupied.
(3) Annualized base rent divided by leased rentable area.
(4) A fourth building was constructed during 2003, as such 2002 is not comparable.
(5) 20% of the property is owned by AmeriVest and 80% of the property is owned by Freemark Abbey Panorama, LLC as
tenants in common.
(6) Buildings leased approximately 63% to Bank of America, with the remainder leased to a number of small and medium
size tenants.
(7) 11 of 13 buildings are leased primarily to various agencies of the State of Texas. The Clint and Paris, Texas
buildings are currently vacant.
10
AmeriVest
Properties Inc.
Lease Expiration Information
The following schedules detail the tenant(1) lease expirations for our
100%-owned properties(2) at December 31, 2003 in total and by geographic region:
Consolidated
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- -----------------------------------------------------------------------
2004 109 311,746 $5,892,566 17.0%
2005 102 483,812 10,062,586 28.9%
2006 93 249,916 4,488,091 12.9%
2007 50 301,149 6,030,583 17.3%
2008 39 169,641 3,232,124 9.3%
2009 14 99,592 2,181,460 6.3%
2010 6 77,652 1,175,004 3.4%
2011 3 13,490 186,072 0.5%
2012 6 70,805 1,517,168 4.4%
----------------------------------------------------------------
Total 422 1,777,803 $34,765,654 100.0%
================================================================
Denver
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- --------------------------------------------------------------------------
2004 56 92,591 $1,942,817 22.9%
2005 57 134,543 2,911,613 34.3%
2006 41 61,007 1,094,515 12.9%
2007 19 46,157 883,477 10.4%
2008 20 66,564 1,251,179 14.7%
2009 7 18,202 313,968 3.7%
2010 - - - -
2011 1 5,460 92,984 1.1%
2012 - - - -
-------------------------------------------------------------------
Total 201 424,524 $8,490,553 100.0%
===================================================================
Phoenix
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- --------------------------------------------------------------------------
2004 20 75,666 $1,778,692 15.2%
2005 17 103,731 2,255,929 19.2%
2006 27 72,297 1,660,702 14.2%
2007 18 116,718 2,567,417 21.9%
2008 7 30,408 697,058 5.9%
2009 3 75,330 1,663,975 14.2%
2010 2 24,112 554,025 4.7%
2011 - - - -
2012 1 24,444 546,610 4.7%
-------------------------------------------------------------------
Total 95 522,706 $11,724,408 100.0%
===================================================================
11
AmeriVest
Properties Inc.
Lease Expiration Information - continued
Dallas
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- --------------------------------------------------------------------------
2004 9 56,687 $1,158,847 11.2%
2005 16 201,142 4,453,928 43.2%
2006 10 33,180 694,331 6.7%
2007 10 131,116 2,454,002 23.8%
2008 10 65,207 1,252,153 12.1%
2009 1 2,689 48,402 0.5%
2010 1 2,612 47,016 0.5%
2011 - - - -
2012 1 8,466 203,184 2.0%
-------------------------------------------------------------------
Total 58 501,099 $10,311,863 100.0%
===================================================================
Indianapolis
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- --------------------------------------------------------------------------
2004 11 30,486 $531,764 30.5%
2005 6 11,410 198,169 11.3%
2006 9 31,534 574,565 32.9%
2007 3 7,158 125,687 7.2%
2008 1 6,780 27,234 1.6%
2009 3 3,371 155,115 8.9%
2010 1 5,343 93,503 5.3%
2011 1 2,400 40,200 2.3%
2012 - - - -
-------------------------------------------------------------------
Total 35 98,482 $1,746,237 100.0%
===================================================================
Non-core
Number of Expiring Expiring Annual Percentage of Total
Year Expiring Leases Square Footage Revenue Annual Revenue
- --------------------------------------------------------------------------
2004 13 56,316 $480,446 19.3%
2005 6 32,986 242,947 9.7%
2006 6 51,898 463,978 18.6%
2007 - - - -
2008 1 682 4,500 0.2%
2009 - - - -
2010 2 45,585 480,460 19.3%
2011 1 5,630 52,888 2.1%
2012 4 37,895 767,374 30.8%
-------------------------------------------------------------------
Total 33 230,992 $2,492,593 100.0%
===================================================================
(1) Excludes Kellogg Executive Suite and month-to-month tenants.
(2) Does not include Panorama Falls.
12
AmeriVest
Properties Inc.
Other Property Information
The following chart illustrates the geographic distribution of our
100%-owned core properties(1) by square footage at December 31, 2003:
[OBJECT OMITTED]
Colorado: 30%
Texas: 30%
Arizona: 34%
Indiana: 6%
The following table categorizes the leased area of our 100%-owned core
properties(1) by our tenant's industry at December 31, 2003:
Percentage
Industry of Area
- ----------------------------------------------------------------------
Wholesale trade and manufacturing 15.5%
Consulting and business services 10.6%
Health care 9.2%
Financial services - advisement and brokerage 9.2%
Real estate 8.4%
Financial services - insurance 8.0%
Legal 7.2%
Financial services - mortgage 6.4%
Energy 6.3%
Computer systems and software 5.3%
Telecommunications 3.3%
Other 3.1%
Accounting 3.0%
Financial services - banking 2.2%
Travel, entertainment and food service 1.4%
Engineering 0.6%
Advertising and marketing 0.3%
(1) Does not include the State of Texas Buildings, Bank of America Buildings or
Panorama Falls.
13