Exhibit 99.2
AmeriVest Properties Inc.
Supplemental Operating and Financial Information
First Quarter 2004
As of and for the three months ended March 31, 2004.
All dollar amounts shown in this report are unaudited.
This Supplemental Operating and Financial Information is not an offer to sell or
solicitation to buy any securities of AmeriVest Properties Inc. Any offers to
sell or solicitations to buy any securities of AmeriVest Properties Inc. 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 - 2004 5
Geographic Operating Information - 2003 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 14
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 March 31, 2004, AmeriVest owned 27
properties totaling 2,365,640 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)
included 13 properties totaling 2,083,537 square feet located in metropolitan
Denver, Dallas, Phoenix 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 2001, 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 small and medium size businesses 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 customer base with limited
staffing through our "no hassle" leasing philosophy which reduces the
per lease cost for us and the customer.
-- Provide a high level of service - With our deliberate focus on small
and medium size businesses, 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
businesses. 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
Directors and Executive Officers
Initial Date
Name Position as Director
---- -------- -----------
William T. Atkins Chief Executive Officer, Director and Chairman of 1999
the Board
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
Alexander S. Hewitt Director and Vice Chairman 2004
Robert W. Holman, Jr. Outside Director and Lead 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
Financial Information
Selected Financial Data
As of and for the three months ended-
----------------------------------------------------------------
3/31/04 12/31/2003 9/30/2003 6/30/2003 3/31/2003
------------ ------------ ------------ ------------ ------------
(Amounts in thousands, except share, per share and property data)
Operating Data-
Real estate operating revenue(1) $9,594 $8,669 $6,895 $6,681 $6,549
General and administrative expenses 933 1,171 777 743 837
G&A as a percentage of revenue 9.7% 13.5% 11.3% 11.1% 12.8%
Earnings Per Share-
Net (loss)/income $(375) $(1,251) $(24) $(1,110) $405
(Loss)/earnings per share - basic (0.02) (0.07) 0.00 (0.09) 0.04
(Loss)/earnings per share - diluted (0.02) (0.07) 0.00 (0.09) 0.04
Funds From Operations (FFO)(2)-
FFO $1,878 $1,317 $1,667 $358 $1,786
FFO per share - basic 0.11 0.08 0.10 0.03 0.16
FFO per share - diluted 0.11 0.07 0.10 0.03 0.16
Balance Sheet Data-
Net investment in real estate(3) $259,921 $220,698 $197,671 $157,661 $158,802
Total assets 275,911 240,500 216,245 181,218 175,764
Total liabilities 166,477 170,396 142,834 105,729 130,527
Minority interest 1,836 - - - -
Total stockholders' equity 107,598 70,104 73,411 75,489 45,237
Common Stock Data-
Common shares outstanding 23,859,639 17,401,309 17,375,467 17,348,052 11,542,713
Weighted average shares - basic 17,567,414 17,383,652 17,356,751 12,806,389 11,100,292
Weighted average shares - diluted 17,721,219 17,633,834 17,459,294 12,906,283 11,203,104
Closing share price $6.75 $7.18 $6.50 $6.26 $6.29
Share price range for period (high
- low) 7.64 - 6.40 6.50 - 7.21 6.75 - 6.11 6.65 - 5.85 6.55 - 5.66
Dividends declared per share 0.13 0.13 0.13 0.13 0.13
Annualized dividend yield 7.7% 7.2% 8.0% 8.3% 8.3%
Market value of common equity $161,053 $124,941 $112,941 $108,599 $72,604
Total liabilities 166,477 170,396 142,834 105,729 130,527
------------ ------------ ------------ ------------ ------------
Total market capitalization $327,530 $295,337 $255,775 $214,328 $203,131
============ ============ ============ ============ ============
Cash Flow Data-
Net cash flow from operating
activities $1,719 $3,265 $2,812 $2,590 $1,984
Net cash flow from investing
activities (31,231) (18,859) (16,536) (2,199) (18,468)
Net cash flow from financing
activities 30,061 15,899 6,441 5,306 16,925
------------ ------------ ------------ ------------ ------------
Net change in cash and cash
equivalents $549 $305 $(7,283) $5,697 $441
============ ============ ============ ============ ============
Property Data-
Properties owned 27 30 28 27 27
Rentable square feet 2,365,640 2,222,079 1,891,352 1,563,063 1,564,090
Occupancy 84.5% 84.2% 86.8% 89.0% 88.5%
(1) Excludes the revenues of assets classified as held for sale (Texas Bank
Buildings - sold March 16, 2004).
(2) See page 7 for a reconciliation of FFO from net (loss)/income and a
comparison of FFO per share to (loss)/earnings per share, the most directly
comparable GAAP measures.
(3) Excludes the real estate assets of properties classified as held for sale
(Texas Bank Buildings - sold March 16, 2004).
3
Consolidated Statements of Operations
For the three
months ended
March 31,
--------------------------
2004 2003
------------- ------------
Real Estate Operating Revenue
Rental revenue $9,593,895 $6,548,627
Real Estate Operating Expenses
Property operating expenses-
Operating expenses 2,805,894 1,548,705
Real estate taxes 1,237,864 751,838
Management fees 17,322 33,877
General and administrative expenses 932,549 837,080
Ground rent expense 161,141 -
Interest expense 2,722,067 1,725,435
Depreciation and amortization expense 2,777,091 1,327,966
------------- ------------
Total operating expenses 10,653,928 6,224,901
------------- ------------
Other Income/(Loss)
Interest income 15,363 5,817
Equity in loss of unconsolidated
affiliate (18,076) (10,602)
------------- ------------
Total other income/(loss) (2,713) (4,785)
------------- ------------
(Loss)/Income from Continuing Operations (1,062,746) 318,941
Discontinued Operations 687,735 86,023
------------- ------------
Net (Loss)/Income $(375,011) $404,964
============= ============
(Loss)/Earnings Per Share
Basic $(0.02) $0.04
============= ============
Diluted $(0.02) $0.04
============= ============
Weighted Average Common Shares Outstanding
Basic 17,567,414 11,100,292
============= ============
Diluted 17,567,414 11,203,104
============= ============
Geographic Operating Information - 2004
As of and for the three months ended March 31, 2004-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
------------ ------------ ------------- ------------ ------------ --------- -------------
Real estate operating revenue $2,395,260 $3,129,393 $3,235,429 $434,474 $399,339 $ - $9,593,895
Real estate operating expenses 1,100,393 1,254,726 1,329,912 167,963 208,086 - 4,061,080
------------ ------------ ------------- ------------ ------------ --------- -------------
Net operating income 1,294,867 1,874,667 1,905,517 266,511 191,253 - 5,532,815
------------ ------------ ------------- ------------ ------------ --------- -------------
Percent of total 23.4% 33.9% 34.4% 4.8% 3.5% 0.0% 100.0%
Adjustments to arrive at net
loss-
General and administrative
expenses (932,549)
Ground rent expense (161,141)
Interest expense (2,722,067)
Depreciation and amortization
expense (2,777,091)
Interest income 15,363
Equity in loss of
unconsolidated affiliate (18,076)
Discontinued operations(2) 687,735
-------------
Total adjustments (5,907,826)
-------------
Net loss $(375,011)
=============
Net investment in real estate $70,218,380 $53,687,207 $112,234,408 $10,194,853 $13,486,581 $99,368 $259,920,797
============ ============ ============= ============ ============ ========= =============
Properties owned 4 3 5 1 14 - 27
Rentable square feet 557,044 575,179 837,109 114,205 282,103 - 2,365,640
Occupancy 85.3% 86.5% 85.3% 84.9% 76.3% - 84.5%
(1) Includes the Texas State Buildings and Panorama Falls. Due to the adoption
of FASB Interpretation No. 46R, the assets and liabilities of Panorama Falls are
consolidated with those of AmeriVest effective March 31, 2004 and the real
estate assets are reflected in the `net investment in real estate' balance in
the `non-core' column. Beginning April 1, 2004, the operations of Panorama Falls
will also be consolidated with those of AmeriVest. For the three months ended
March 31, 2004, the investment in Panorama Falls was accounted for under the
equity method and AmeriVest's share of the net loss of the entity is reflected
above as `equity in loss of unconsolidated affiliate'.
(2) Includes the net operations, including gain on sale, of the Texas Bank
Buildings which were sold March 16, 2004.
5
Geographic Operating Information - 2003
As of and for the three months ended March 31, 2003-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
------------ ------------ ------------ ------------ ----------- --------- -------------
Real estate operating revenue $2,614,471 $1,993,374 $1,075,610 $459,990 $405,182 $ - $6,548,627
Real estate operating expenses 984,201 644,918 315,822 159,539 229,940 - 2,334,420
------------ ------------ ------------ ------------ ----------- --------- -------------
Net operating income 1,630,270 1,348,456 759,788 300,451 175,242 - 4,214,207
------------ ------------ ------------ ------------ ----------- --------- -------------
Percent of total 38.7% 32.0% 18.0% 7.1% 4.2% 0.0% 100.0%
Adjustments to arrive at net
income-
General and administrative
expenses (837,080)
Interest expense (1,725,435)
Depreciation and amortization
expense (1,327,966)
Interest income 5,817
Equity in loss of unconsolidated
affiliate (10,602)
Discontinued operations(2) 86,023
-------------
Total adjustments (3,809,243)
-------------
Net income $404,964
=============
Net investment in real estate $66,975,428 $43,693,948 $30,246,165 $9,417,795 $8,369,239 $99,405 $158,801,980
============ ============ ============ ============ =========== ========= =============
Properties owned 4 2 2 1 18 - 27
Rentable square feet 557,854 323,323 243,752 96,520 342,641 - 1,564,090
Occupancy 83.3% 96.7% 98.4% 95.8% 80.0% - 88.5%
(1) Includes the Texas State Buildings and Panorama Falls.
(2) Includes the net operations of the Texas Bank Buildings which were sold
March 16, 2004. The Texas Bank Buildings real estate assets are no longer
reflected in the `net investment in real estate' amount under the `non-core'
column as they have been reclassified to `assets - held for sale'. The property
information (i.e. `properties owned', `rentable square feet' and `occupancy') as
of March 31, 2003 still reflects these properties.
6
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 (loss)/income and a comparison of
FFO per share to (loss)/earnings per share, the most directly comparable GAAP
measures:
As of and for the three months ended-
------------------------------------------------------------
3/31/2004 12/31/2003 9/30/2003 6/30/2003 3/31/2003
----------- ----------- ----------- ----------- ------------
(Amounts in thousands except share and per share data)
Funds From Operations (FFO)-
Net (loss)/income $(375) $(1,251) $(24) $(1,110) $405
Depreciation and amortization
expense 2,805 2,546 1,669 1,448 1,361
Share of depreciation and
amortization expense of
unconsolidated affiliate 22 22 22 20 20
Gain on sale (574) - - - -
----------- ----------- ----------- ----------- ------------
FFO $1,878 $1,317 $1,667 $358 $1,786
=========== =========== =========== =========== ============
(Loss)/earnings per share - diluted $(0.02) $(0.07) $0.00 $(0.09) $0.04
=========== =========== =========== =========== ============
FFO per share - diluted $0.11 $0.07 $0.10 $0.03 $0.16
=========== =========== =========== =========== ============
Common Stock Data-
Weighted average shares - diluted 17,721,219 17,633,834 17,459,294 12,906,283 11,203,104
Non-GAAP Financial Measures: Funds From Operations (FFO) is a non-GAAP
financial measure. FFO is defined as net income or (loss), computed in
accordance with generally accepted accounting principles (GAAP), excluding gains
or (losses) from 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 the
performance of an equity REIT because, it facilitates an understanding of the
operating performance of its properties without giving effect to real estate
depreciation and amortization, which assumes that the value of real estate
assets diminishes predictably over time. Since real estate values have
historically risen or fallen with market conditions, we believe that FFO
provides a more meaningful and accurate indication of our performance. 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. FFO does not represent cash generated
from operating activities determined by GAAP and should not be considered as an
alternative to net income or (loss) (determined in accordance with GAAP) as an
indication of our financial performance or to cash flows from operating
activities (determined in accordance with GAAP) as a measure of our liquidity,
nor is it indicative of funds available to fund our cash needs, including our
ability to make cash distributions. FFO may include funds that may not be
available for our management's discretionary use due to requirements to conserve
funds for capital expenditures, debt repayments, property acquisitions and other
commitments and uncertainties.
7
Consolidated Balance Sheets
March 31, December 31,
2004 2003
--------------- ---------------
Assets
Investment in real estate-
Land $35,758,606 $28,838,214
Buildings and improvements 212,271,792 184,519,890
Furniture, fixtures and equipment 981,909 799,730
Tenant improvements 9,155,780 6,144,440
Tenant leasing commissions 1,535,091 1,061,160
Intangible assets 15,853,841 11,468,120
Less: accumulated depreciation and amortization (15,636,222) (12,134,025)
--------------- ---------------
Net investment in real estate 259,920,797 220,697,529
Cash and cash equivalents 2,026,534 1,477,585
Escrow deposits 8,604,459 5,778,427
Assets - held for sale - 3,196,877
Investment in unconsolidated affiliate - 1,364,032
Due from related party - 3,371,526
Due from unconsolidated affiliate - 262,347
Accounts receivable 902,943 296,377
Deferred rents receivable 1,506,143 1,401,455
Deferred financing costs, net 2,289,316 2,301,043
Prepaid expenses and other assets 660,741 353,264
--------------- ---------------
Total assets $275,910,933 $240,500,462
=============== ===============
Liabilities
Mortgage loans and notes payable $154,739,860 $158,237,661
Liabilities - held for sale - 1,296,049
Accounts payable and accrued expenses 3,308,924 2,736,657
Accrued real estate taxes 3,070,667 3,169,183
Prepaid rents, deferred revenue and security deposits 3,079,427 2,694,335
Dividends payable 2,278,197 2,262,170
--------------- ---------------
Total liabilities 166,477,075 170,396,055
--------------- ---------------
Minority interest 1,836,304 -
--------------- ---------------
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 - 23,859,639 and
17,401,309 shares, respectively 23,860 17,401
Capital in excess of par value 131,846,267 91,706,371
Distributions in excess of accumulated earnings (24,272,573) (21,619,365)
--------------- ---------------
Total stockholders' equity 107,597,554 70,104,407
--------------- ---------------
Total liabilities and stockholders' equity $275,910,933 $240,500,462
=============== ===============
8
Debt Summary
March 31, 2004 December 31, 2003
---------------------- ----------------------
Maturity Principal Interest Principal Interest
Lender Mortgaged Property Date Balance Rate(1) Balance Rate(1)
- --------------------------- ------------------ ----------- ------------- -------- ------------- --------
Fixed rate-
Teachers Insurance and AmeriVest Plaza at 1/10/2006 $14,533,930 7.90% $14,572,888 7.90%
Annuity Association of Inverness
America
Greenwich Capital Parkway Centre II 10/1/2008 38,687,371 5.13% 38,876,849 5.13%
Financial Products Centerra
Southwest Gas
Building
Allstate Life Insurance Financial Plaza 10/5/2010 24,548,078 5.25% 24,669,760 5.25%
Company
Southern Farm Bureau Life Scottsdale Norte 4/1/2011 6,611,661 7.90% 6,625,460 7.90%
Insurance Company
Teachers Insurance and Sheridan Center 1/1/2013 29,198,575 7.40% 29,309,686 7.40%
Annuity Association Arrowhead
of America Fountains
Kellogg Building
Security Life of Denver Keystone Office 5/1/2022 4,308,486 8.00% 4,334,828 8.00%
Insurance Park - 1st
Company
Security Life of Denver Keystone Office 5/1/2022 482,889 8.63% 485,638 8.63%
Insurance Company Park - 2nd
Transatlantic Capital Texas State 8/1/2028 5,640,873 7.66% 5,660,436 7.66%
Company, LLC Buildings ------------- -------- ------------- --------
Subtotal $124,011,863 6.39% $124,535,545 6.39%
------------- -------- ------------- --------
Variable rate-
Fleet National Bank - Chateau Plaza 11/12/2005 $30,650,000 3.85% $18,470,020 3.90%
Senior Secured Line of Greenhill Park
Credit Camelback Lakes
Fleet National Bank - Unsecured 11/12/2005 - - 15,149,725 5.17%
Unsecured Line of Credit ------------- -------- ------------- --------
Subtotal $30,650,000 3.85% $33,619,745 4.47%
------------- -------- ------------- --------
Other notes payable-
Lease Capital Corporation Phone system 10/31/2007 $77,997 11.11% $82,371 11.11%
------------- -------- ------------- --------
Subtotal $77,997 11.11% $82,371 11.11%
------------- -------- ------------- --------
Total mortgage loans and notes payable $154,739,860 5.89% $158,237,661 5.98%
============= ======== ============= ========
Liabilities - held for sale
Jefferson Pilot Texas Bank
Buildings 5/1/2013 $ - - $1,292,749 9.00%
------------- -------- ------------- --------
Total including mortgage loan included in
'liabilities - held for sale' $154,739,860 5.89% $159,530,410 6.01%
============= ======== ============= ========
Scheduled maturities (for the years ended December 31,)-
2004 $1,623,505
2005 32,946,055
2006 16,495,075
2007 2,394,890
2008 37,136,849
Thereafter 64,143,486
-------------
Total $154,739,860
=============
Cash flow information (for the three months ended
March 31, 2004)-
Additions $36,017,462
Repayments (40,264,964)
Scheduled principal
repayments (543,048)
-------------
Total $(4,790,550)
=============
(1) Interest only, does not include amortization of deferred financing costs or
unused facility fees.
9
Portfolio Information
Property Summary
March 31, 2004 December 31, 2003
-------------------------- ---------------------------
Building/ Year Rentable Occupancy Average Occupancy Average
Location Acquired Area(1) Rate(2) Rent Per Rate(2) Rent Per SF(3)
SF(3)
- ----------------------------------- ---------- ------------ ------------- ------------ --------------
Same Store-
Southwest Gas Building
Phoenix, AZ 2003 147,660 82.7% $ 22.21 80.4% $ 22.10
Chateau Plaza
Dallas, TX 2002 171,294 97.4% 23.08 100.0% 22.70
Centerra
Denver, CO 2002 186,582 82.1% 18.26 72.9% 19.89
Parkway Centre II
Plano, TX 2002 151,968 91.8% 20.50 95.4% 20.61
Kellogg Building
Littleton, CO 2001 111,580 92.2% 20.78 85.8% 21.04
Arrowhead Fountains
Peoria, AZ 2001 96,092 100.0% 22.71 100.0% 21.85
AmeriVest Plaza at
Inverness
Englewood, CO 2001 118,720 90.9% 23.12 91.3% 23.10
Sheridan Center
Denver, CO 2000 140,162 79.4% 16.52 82.7% 16.36
---------- ------------ ------------- ------------ --------------
Subtotal 1,124,058 88.9% $20.88 87.8% $20.99
---------- ------------ ------------- ------------ --------------
2003 Acquisitions and Developments-
Greenhill Park
Addison, TX 2003 251,917 76.0% $ 18.74 76.7% $ 18.84
Scottsdale Norte
Scottsdale, AZ 2003 79,233 71.1% 22.95 80.9% 23.16
Financial Plaza
Mesa, AZ 2003 310,830 82.3% 23.05 80.5% 23.02
Keystone Office Park
Indianapolis, IN 1999/2003 114,205 84.9% 17.77 86.4% 17.71
---------- ------------ ------------- ------------ --------------
Subtotal 756,185 79.4% $20.82 80.2% $20.84
---------- ------------ ------------- ------------ --------------
2004 Acquisitions-
Camelback Lakes
Phoenix, AZ 2004 203,294 90.2% $ 21.14 N/A N/A
---------- ------------ ------------- ------------ --------------
Subtotal 203,294 90.2% $21.14 N/A N/A
---------- ------------ ------------- ------------ --------------
Joint Ventures-
Panorama Falls(4)
Englewood, CO 2000 59,561 74.1% $ 19.37 78.0% $ 19.01
---------- ------------ ------------- ------------ --------------
Subtotal 59,561 74.1% $19.37 78.0% $19.01
---------- ------------ ------------- ------------ --------------
Non-Core-
Texas Bank Buildings(5)
Texas 1998 N/A N/A N/A 100.0% $ 15.88
Texas State Buildings(6)
Texas 1997/1998 222,542 76.8% $ 9.00 76.8% 9.00
---------- ------------ ------------- ------------ --------------
Subtotal 222,542 76.8% $9.00 81.7% $10.79
---------- ------------ ------------- ------------ --------------
Total 2,365,640 84.5% $19.83 84.2% $19.63
========== ============ ============= ============ ==============
(1) Includes office space but excludes storage, telecommunications and garage
space.
(2) Includes space leased but not yet occupied.
(3) Annualized cash basis revenue divided by leased area.
(4) 20% of the property is owned by AmeriVest and 80% of the property is owned
by The John M. and Florence Bryan Trust as tenants in common.
(5) These buildings were sold March 16, 2004.
(6) 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
Lease Expiration Information
The following schedules detail the tenant(1) lease expirations for our
100%-owned properties(2) at March 31, 2004 in total and by geographic region:
Consolidated
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 76 234,364 $4,392,387 11.6%
2005 101 480,969 10,105,809 26.7%
2006 92 286,531 5,343,585 14.1%
2007 68 339,587 6,821,565 18.0%
2008 41 167,520 3,305,130 8.7%
2009 29 186,579 3,903,111 10.3%
2010 7 135,003 2,325,566 6.2%
2011 4 30,489 576,185 1.5%
2012 2 32,910 749,794 2.0%
2013 - - - -
2014 1 19,798 235,200 0.6%
2015 2 6,120 116,280 0.3%
--------------------------------------------------------------
Total 423 1,919,870 $37,874,612 100.0%
==============================================================
Denver
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 45 66,792 $1,376,780 15.9%
2005 60 140,966 3,038,695 35.1%
2006 41 59,825 1,088,540 12.6%
2007 27 58,460 1,080,549 12.5%
2008 21 69,741 1,310,175 15.1%
2009 8 18,855 323,763 3.7%
2010 - - - -
2011 1 5,460 92,984 1.1%
2012 - - - -
2013 - - - -
2014 1 19,798 235,200 2.7%
2015 2 6,120 116,280 1.3%
--------------------------------------------------------------
Total 206 446,017 $8,662,966 100.0%
==============================================================
11
Lease Expiration Information - continued
Phoenix
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 14 51,867 $1,207,656 7.7%
2005 17 102,985 2,294,158 14.5%
2006 29 117,713 2,651,452 16.8%
2007 26 136,283 3,021,338 19.1%
2008 8 32,266 745,639 4.7%
2009 14 147,683 3,223,919 20.4%
2010 3 81,463 1,704,587 10.8%
2011 1 16,879 388,217 2.5%
2012 1 24,444 546,610 3.5%
2013 - - - -
2014 - - - -
2015 - - - -
--------------------------------------------------------------
Total 113 711,583 $15,783,576 100.0%
==============================================================
Dallas
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 7 51,175 $1,038,224 10.2%
2005 15 192,253 4,298,812 42.3%
2006 9 28,661 594,913 5.8%
2007 12 137,686 2,592,389 25.5%
2008 10 62,133 1,192,210 11.7%
2009 4 11,329 200,320 2.0%
2010 1 2,612 47,016 0.5%
2011 - - - -
2012 1 8,466 203,184 2.0%
2013 - - - -
2014 - - - -
2015 - - - -
--------------------------------------------------------------
Total 59 494,315 $10,167,068 100.0%
==============================================================
12
Lease Expiration Information - continued
Indianapolis
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 8 26,501 $461,637 26.8%
2005 7 11,910 208,997 12.2%
2006 9 31,534 576,802 33.5%
2007 3 7,158 127,289 7.4%
2008 2 3,380 57,106 3.3%
2009 3 8,712 155,109 9.0%
2010 1 5,343 93,503 5.4%
2011 1 2,400 40,800 2.4%
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
--------------------------------------------------------------
Total 34 96,938 $1,721,243 100.0%
==============================================================
Non-core
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
- ----------------------------------------------------------------------------
2004 2 38,029 $308,090 20.0%
2005 2 32,855 265,147 17.2%
2006 4 48,798 431,878 28.1%
2007 - - - -
2008 - - - -
2009 - - - -
2010 2 45,585 480,460 31.2%
2011 1 5,750 54,184 3.5%
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
--------------------------------------------------------------
Total 11 171,017 $1,539,759 100.0%
==============================================================
(1) Excludes Kellogg Executive Suite and month-to-month tenants.
(2) Does not include Panorama Falls.
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Other Property Information
The following chart illustrates the geographic distribution of our
100%-owned core properties(1) by square footage at March 31, 2004:
[CHART OMITTED]
Denver 27%
Dallas 28%
Phoenix 40%
Indianapolis 5%
The following table categorizes the leased area of our 100%-owned core
properties(1) by our tenant's industry at March 31, 2004:
Percentage
Industry of Area
-------- ----------
Wholesale trade and manufacturing 13.6%
Healthcare 10.0%
Real estate 9.8%
Financial services - advisement and brokerage 9.1%
Consulting and business services 8.7%
Financial services - insurance 7.3%
Financial services - mortgage 6.3%
Legal 6.2%
Energy 5.6%
Travel, entertainment and food service 5.3%
Computer systems and software 4.8%
Telecommunications 3.4%
Financial services - banking 3.4%
Other 2.9%
Accounting 2.8%
Engineering 0.5%
Advertising and marketing 0.3%
(1) Does not include the Texas State Buildings or Panorama Falls.
14