EXHIBIT 99.2
Supplemental Operating and Financial Information
Second Quarter 2004
As of and for the three and six months ended June 30, 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 June 30, 2004, AmeriVest owned 28
properties totaling 2,480,232 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 14 properties totaling 2,198,129 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 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
Harry P. Gelles Outside Director 2000
Alexander S. Hewitt Director and Vice Chairman 2004
Robert W. Holman, Jr. 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-
-------------------------------------
6/30/2004 3/31/2004 12/31/2003 9/30/2003 6/30/2003
--------- --------- ---------- --------- ---------
(Amounts in thousands, except share, per share and property data)
Operating Data-
Real estate operating revenue(1) $11,403 $9,594 $8,669 $6,895 $6,681
General and administrative expenses 984 933 1,171 777 743
G&A as a percentage of revenue 8.6% 9.7% 13.5% 11.3% 11.1%
Loss Per Share-
Net loss $(548) $(375) $(1,251) $(24) $(1,110)
Loss per share - basic (0.02) (0.02) (0.07) 0.00 (0.09)
Loss per share - diluted (0.02) (0.02) (0.07) 0.00 (0.09)
Funds From Operations (FFO)(2)-
FFO $2,796 $1,878 $1,317 $1,667 $358
FFO per share - basic 0.12 0.11 0.08 0.10 0.03
FFO per share - diluted 0.12 0.11 0.07 0.10 0.03
Balance Sheet Data-
Net investment in real estate(3) $277,569 $259,921 $220,698 $197,671 $157,661
Total assets 294,876 275,911 240,500 216,245 181,218
Total liabilities 188,824 166,477 170,396 142,834 105,729
Minority interest 1,775 1,836 - - -
Total stockholders' equity 104,278 107,598 70,104 73,411 75,489
Common Stock Data-
Common shares outstanding 23,928,849 23,859,639 17,401,309 17,375,467 17,348,052
Weighted average shares - basic 23,898,957 17,567,414 17,383,652 17,356,751 12,806,389
Weighted average shares - diluted 24,011,520 17,721,219 17,633,834 17,459,294 12,906,283
Closing share price $5.89 $6.75 $7.18 $6.50 $6.26
Share price range for period (high
- low) 6.93 - 5.48 7.64 - 6.40 6.50 - 7.21 6.75 - 6.11 6.65 - 5.85
Dividends declared per share 0.13 0.13 0.13 0.13 0.13
Annualized dividend yield 8.8% 7.7% 7.2% 8.0% 8.3%
Market value of common equity $140,941 $161,053 $124,941 $112,941 $108,599
Total liabilities 188,535 166,477 170,396 142,834 105,729
------------------------------------------------------------
Total market capitalization $329,476 $327,530 $295,337 $255,775 $214,328
============================================================
Cash Flow Data-
Net cash flow from operating
activities $2,369 $1,719 $3,265 $2,812 $2,590
Net cash flow from investing
activities (8,992) (33,931) (18,859) (16,536) (2,199)
Net cash flow from financing
activities 7,425 32,761 15,899 6,441 5,306
------------------------------------------------------------
Net change in cash and cash
equivalents $802 $549 $305 $(7,283) $5,697
============================================================
Property Data-
Properties owned 28 27 30 28 27
Rentable square feet 2,480,232 2,365,640 2,222,079 1,891,352 1,563,063
Occupancy 85.1% 84.5% 84.2% 86.8% 89.0%
(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 and a comparison
of FFO per share to loss per share, the most directly comparable GAAP
measures. FFO is not intended to be a measure of cash flow or
liquidity.
(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 For the six
months ended months ended
June 30, June 30,
-------- --------
2004 2003 2004 2003
---- ---- ---- ----
Real Estate Operating Revenue
Rental revenue $11,402,649 $6,680,723 $20,996,544 $13,229,350
Real Estate Operating Expenses
Property operating expenses-
Operating expenses 3,105,339 1,660,895 5,911,233 3,209,600
Real estate taxes 1,477,758 762,939 2,715,622 1,514,777
Management fees 17,428 33,297 34,750 67,174
General and administrative expenses 984,265 742,773 1,916,814 1,579,853
Ground rent expense 160,542 - 321,683 -
Interest expense 2,831,282 1,781,535 5,553,349 3,506,970
Depreciation and amortization expense 3,445,634 1,414,553 6,222,725 2,742,519
Impairment of investment in real
estate - 1,465,932 - 1,465,932
------------------------------------------------
Total operating expenses 12,022,248 7,861,924 22,676,176 14,086,825
------------------------------------------------
Loss From Continuing Operations (619,599) (1,181,201) (1,679,632) (857,475)
Other Income/(Loss)
Interest income 10,893 11,936 26,256 17,753
Equity in loss of affiliate - (13,312) (18,076) (23,914)
Minority interest(1) 61,118 - 61,118 -
------------------------------------------------
Total other income/(loss) 72,011 (1,376) 69,298 (6,161)
------------------------------------------------
Loss Before Discontinued Operations (547,588) (1,182,577) (1,610,334) (863,636)
Discontinued Operations - 72,526 687,735 158,549
------------------------------------------------
Net Loss $(547,588)$(1,110,051) $(922,599) $(705,087)
================================================
Loss Per Share
Basic $(0.02) $(0.09) $(0.04) $(0.06)
================================================
Diluted $(0.02) $(0.09) $(0.04) $(0.06)
================================================
Weighted Average Common Shares
Outstanding
Basic 23,898,957 12,806,389 20,733,185 11,958,053
================================================
Diluted 23,898,957 12,806,389 20,733,185 11,958,053
================================================
(1) As a result of adopting FIN 46R, "Consolidation of Variable Interest
Entities (VIE)", the Company consolidated the operations of an entity
management identified as a VIE. The Company recognizes minority
interest equal to third party voting interests.
4
Geographic Operating Information - 2004
As of and for the three months ended June 30, 2004-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
------ ------ ------- ------------ -------- --------- ------------
Real estate operating revenue $2,395,182 $3,574,653 $4,369,539 $441,227 $622,048 $- $11,402,649
Real estate operating expenses 1,067,314 1,288,735 1,709,236 178,752 356,488 - 4,600,525
----------- ---------- ---------- -------- -------- -- -----------
Net operating income 1,327,868 2,285,918 2,660,303 262,475 265,560 - 6,802,124
----------- ---------- ---------- -------- -------- -- -----------
Percent of total 19.5% 33.6% 39.1% 3.9% 3.9% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (984,265)
Ground rent expense (160,542)
Interest expense (2,831,282)
Depreciation and amortization
expense (3,445,634)
Interest income 10,893
Minority interest 61,118
-------------
Total adjustments (7,349,712)
-------------
Net loss $(547,588)
=============
As of and for the six months ended June 30, 2004-
Real estate operating revenue $4,790,442 $6,704,046 $7,604,968 $875,701 $1,021,387 $- $20,996,544
Real estate operating expenses 2,167,707 2,543,461 3,039,148 346,715 564,574 - 8,661,605
----------- ---------- ---------- -------- -------- -- -----------
Net operating income 2,622,735 4,160,585 4,565,820 528,986 456,813 - 12,334,939
----------- ---------- ---------- -------- -------- -- -----------
Percent of total 21.3% 33.7% 37.0% 4.3% 3.7% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (1,916,814)
Ground rent expense (321,683)
Interest expense (5,553,349)
Depreciation and amortization
expense (6,222,725)
Interest income 26,256
Equity in loss of affiliate (18,076)
Minority interest 61,118
Discontinued operations(2) 687,735
-------------
Total adjustments (13,257,538)
-------------
Net loss $(922,599)
=============
Net investment in real estate $70,873,918 $70,652,862 $112,380,004 $10,245,393 $13,311,644 $105,170 $277,568,991
=========== ========== ============ =========== =========== ======== ============
Properties owned 4 4 5 1 14 - 28
Rentable square feet 556,491 689,777 837,107 114,754 282,103 - 2,480,232
Occupancy 84.9% 88.0% 87.3% 81.5% 73.6% - 85.1%
(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 are consolidated with
those of AmeriVest. Prior to April 1, 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
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 June 30, 2003-
Denver Dallas Phoenix Indianapolis Non-core(1) Corporate Consolidated
------ ------ ------- ------------ -------- --------- ------------
Real estate operating revenue $2,488,928 $1,924,767 $1,453,659 $409,666 $403,703 - $6,680,723
Real estate operating expenses 962,174 687,282 433,668 137,028 236,979 - 2,457,131
----------- ---------- ---------- -------- -------- -- -----------
Net operating income 1,526,754 1,237,485 1,019,991 272,638 166,724 - 4,223,592
----------- ---------- ---------- -------- -------- -- -----------
Percent of total 36.1% 29.3% 24.2% 6.5% 3.9% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (742,773)
Interest expense (1,781,535)
Depreciation and amortization
expense (1,414,553)
Impairment of investment in real
estate (1,465,932)
Interest income 11,936
Equity in loss of affiliate (13,312)
Discontinued operations(2) 72,526
-------------
Total adjustments (5,333,643)
-------------
Net loss $(1,110,051)
=============
As of and for the six months ended June 30, 2003-
Real estate operating revenue $5,103,399 $3,918,141 $2,529,269 $869,656 $808,885 $- $13,229,350
Real estate operating expenses 1,946,375 1,332,200 749,490 296,567 466,919 - 4,791,551
----------- ---------- ---------- -------- -------- -- -----------
Net operating income 3,157,024 2,585,941 1,779,779 573,089 341,966 - 8,437,799
----------- ---------- ---------- -------- -------- -- -----------
Percent of total 37.4% 30.6% 21.1% 6.8% 4.1% 0.0% 100.0%
Adjustments to arrive at net loss-
General and administrative expenses (1,579,853)
Interest expense (3,506,970)
Depreciation and amortization
expense (2,742,519)
Impairment of investment in real
estate (1,465,932)
Interest income 17,753
Equity in loss of affiliate (23,914)
Discontinued operations(2) 158,549
-------------
Total adjustments (9,142,886)
-------------
Net loss $(705,087)
=============
Net investment in real estate $67,469,147 $43,440,170 $30,130,314 $9,652,742 $6,868,430 $99,795 $157,660,598
=========== ========== ============ =========== =========== ======== ============
Properties owned 4 2 2 1 18 - 27
Rentable square feet 556,885 323,224 243,752 96,561 342,641 - 1,563,063
Occupancy 84.1% 96.2% 99.5% 92.0% 81.7% - 89.0%
(1) Includes the Texas State Buildings and Panorama Falls.
(2) Includes the net operations, including gain on sale, of the Texas Bank
Buildings which were sold March 16, 2004.
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 and a comparison of FFO per
share to loss per share, the most directly comparable GAAP measures:
As of and for the three months ended-
-------------------------------------
6/30/2004 3/31/2004 12/31/2003 9/30/2003 6/30/2003
--------- --------- ---------- --------- ---------
(Amounts in thousands except share and per share data)
Funds From Operations (FFO)-
Net loss $(548) $(375) $(1,251) $(24) $(1,110)
Depreciation and amortization
expense 3,319 2,805 2,546 1,669 1,448
Share of depreciation and
amortization
expense of unconsolidated
affiliate 25 22 22 22 20
Gain on sale - (574) - - -
--------------------------------------------------------
FFO $2,796 $1,878 $1,317 $1,667 $358
========================================================
Loss per share - diluted $(0.02) $(0.02) $(0.07) $0.00 $(0.09)
========================================================
FFO per share - diluted $0.12 $0.11 $0.07 $0.10 $0.03
========================================================
Common Stock Data-
Weighted average shares - diluted 24,011,520 17,721,219 17,633,834 17,459,294 12,906,283
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
June 30, December 31,
2004 2003
-------- ------------
Assets
Investment in real estate-
Land 37,607,272 $28,838,214
Buildings and improvements 226,587,118 184,519,890
Furniture, fixtures and equipment 1,144,438 799,730
Tenant improvements 11,161,115 6,144,440
Tenant leasing commissions 2,097,777 1,061,160
Intangible assets 17,657,776 11,468,120
Less: accumulated depreciation and amortization (18,686,505) (12,134,025)
--------------- -------------
Net investment in real estate 277,568,991 220,697,529
Cash and cash equivalents 2,828,615 1,477,585
Escrow deposits 8,579,577 5,778,427
Assets - held for sale - 3,196,877
Investment in affiliate - 1,364,032
Due from related party - 3,371,526
Due from affiliate - 262,347
Accounts receivable 798,768 296,377
Deferred rents receivable 2,084,806 1,401,455
Deferred financing costs, net 2,186,199 2,301,043
Prepaid expenses and other assets 829,542 353,264
--------------- -------------
Total assets $294,876,498 $240,500,462
=============== =============
Liabilities
Mortgage loans and notes payable $176,637,287 $158,237,661
Liabilities - held for sale - 1,296,049
Accounts payable and accrued expenses 2,796,019 2,736,657
Accrued real estate taxes 3,034,605 3,169,183
Prepaid rents, deferred revenue and security deposits 3,244,960 2,694,335
Dividends payable 3,110,750 2,262,170
--------------- -------------
Total liabilities 188,823,621 170,396,055
--------------- -------------
Minority Interest 1,775,186 -
--------------- -------------
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 - 23,928,849 and 17,401,309 shares,
respectively 23,929 17,401
Capital in excess of par value 132,184,673 91,706,371
Distributions in excess of accumulated earnings (27,930,911) (21,619,365)
--------------- -------------
Total stockholders' equity 104,277,691 70,104,407
--------------- -------------
Total liabilities and stockholders' equity $294,876,498 $240,500,462
=============== =============
8
Debt Summary
June 30, 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
Annuity Association Inverness
of America 1/10/2006 $14,494,197 7.90% $14,572,888 7.90%
Greenwich Capital Parkway Centre II
Financial Products Centerra
Southwest Gas
Building 10/1/2008 38,500,889 5.13% 38,876,849 5.13%
Allstate Life Insurance Financial Plaza
Company 10/5/2010 24,383,337 5.25% 24,669,760 5.25%
Southern Farm Bureau Life Scottsdale Norte
Insurance Company 4/1/2011 6,592,835 7.90% 6,625,460 7.90%
J. P. Morgan Chase Hackberry View -
1st 9/1/2012 11,488,487 6.57% - -
J. P. Morgan Chase Hackberry View -
2nd(2) 9/1/2012 986,279 8.00% - -
Teachers Insurance and Sheridan Center
Annuity Association Arrowhead
of America Fountains
Kellogg Building 1/1/2013 29,085,396 7.40% 29,309,686 7.40%
Security Life of Denver Keystone Office
Insurance Company Park - 1st
5/1/2022 4,281,614 8.00% 4,334,828 8.00%
Security Life of Denver Keystone Office
Insurance Company Park - 2nd
5/1/2022 480,079 8.63% 485,638 8.63%
Transatlantic Capital Texas State
Company, LLC Buildings 8/1/2028 5,620,932 7.66% 5,660,436 7.66%
------------ ----- --------- -----
Subtotal $135,913,787 6.42%$124,535,545 6.39%
------------ ----- --------- -----
Variable rate-
Fleet National Bank - Chateau Plaza
Senior Secured Line of Greenhill Park
Credit Camelback Lakes 11/12/2005 $40,650,000 3.91% $18,470,020 3.90%
Fleet National Bank - Unsecured 11/12/2005 - - 15,149,725 5.17%
Unsecured Line of Credit
------------ ----- --------- -----
Subtotal $40,650,000 3.91% $33,619,745 4.47%
------------ ----- --------- -----
Other notes payable-
Lease Capital Corporation Phone system 10/31/2007 $73,500 11.11% $82,371 11.11%
------------ ------ ------- ------
Subtotal $73,500 11.11% $82,371 11.11%
------------ ------ ------- ------
Total mortgage loans and notes payable $176,637,287 5.84% $158,237,661 5.98%
============ ===== ============ =====
Liabilities - held for sale
Jefferson Pilot Texas Bank
Buildings $- - $1,292,749 9.00%
------------ ------ ---------- -----
Total including mortgage loan included in
'liabilities - held for sale' $176,637,287 5.84% $159,530,410 6.01%
============ ===== ============ =====
Scheduled maturities (for the years ended December 31,)-
2004 $1,119,300
2005 43,113,577
2006 16,674,529
2007 2,587,128
2008 37,348,319
Thereafter 75,794,434
-------------
Total $176,637,287
=============
Cash flow information (for the three months ended June
30, 2004)-
Additions $58,224,715
Repayments (40,264,964)
Scheduled principal
repayments (1,141,306)
-------------
Total $16,818,445
=============
(1) Interest only, does not include amortization of deferred financing
costs or unused facility fees.
(2) The amount recorded reflects a net present value calculation based on a
fair market value rate of 8%. The actual loan balance assumed was
$697,847 at an interest rate of 15%.
9
(3) Portfolio Information
Property Summary
June 30, 2004 December 31, 2003
------------- -----------------
Building/ Year Rentable Occupancy Average Occupancy Average
Location Acquired Area(1) Rate(2) Rent Per SF(3) Rate(2) Rent Per SF(3)
--------- -------- -------- --------- ----------- --------- -----------
Same Store-
Southwest Gas Building
Phoenix, AZ 2003 147,660 86.0% $ 22.20 80.4% $ 22.10
Chateau Plaza
Dallas, TX 2002 171,294 97.4% 23.03 100.0% 22.70
Centerra
Denver, CO 2002 186,582 82.1% 18.11 72.9% 19.89
Parkway Centre II
Plano, TX 2002 151,968 93.3% 20.11 95.4% 20.61
Kellogg Building
Littleton, CO 2001 111,580 91.2% 20.80 85.8% 21.04
Arrowhead Fountains
Peoria, AZ 2001 96,090 00.0% 21.89 100.0% 21.85
AmeriVest Plaza at
Inverness
Englewood, CO 2001 118,720 90.6% 22.37 91.3% 23.10
Sheridan Center
Denver, CO 2000 139,609 78.6% 16.52 82.7% 16.36
--------- ----- ------ ----- ------
Subtotal 1,123,503 89.4% $20.65 87.8% $20.99
--------- ----- ------ ----- ------
2003 Acquisitions and Developments-
Greenhill Park
Addison, TX 2003 251,917 73.0% $ 18.59 76.7% $ 18.84
Scottsdale Norte
Scottsdale, AZ 2003 79,233 79.2% 22.86 80.9% 23.16
Financial Plaza
Mesa, AZ 2003 310,830 84.2% 23.17 80.5% 23.02
Keystone Office Park
Indianapolis, IN 1999/2003 114,754 81.5% 17.58 86.4% 17.71
--------- ----- ------ ----- ------
Subtotal 756,734 79.5% $20.87 80.2% $20.84
--------- ----- ------ ----- ------
2004 Acquisitions-
Hackberry View
Irving, TX 2004 114,598 100.0% $ 20.81 N/A N/A
Camelback Lakes
Phoenix, AZ 2004 203,294 90.2% 21.21 N/A N/A
--------- ----- ------ ----- ------
Subtotal 317,892 93.7% $21.05 N/A N/A
--------- ----- ------ ----- ------
Joint Ventures-
Panorama Falls(4)
Englewood, CO 2000 59,561 60.4% $ 19.37 78.0% $ 19.01
--------- ----- ------ ----- ------
Subtotal 59,561 60.4% $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 77.1% $ 9.05 76.8% 9.00
------- ----- ------ ----- ------
Subtotal 222,542 77.1% $9.05 81.7% $10.79
------- ----- ------ ----- ------
Total 2,480,232 85.1% $19.80 84.2% $19.63
--------- ----- ------ ----- ------
(1) Includes office space but excludes storage, telecommunications and
garage space.
(2) Includes approximately 67,000 square feet (2.7% of total rentable area)
that has been leased but is not yet occupied and approximately 28,000
square feet (1.1% of total rentable area) that is leased but has been
vacated. Excludes approximately 29,000 square feet (1.2% of total
rentable area) that expired on or about June 30, 2004.
(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 one other investor as tenants in common. Beginning March 31,
2004, the balance sheet and results of operations for this joint
venture are included in the Company's consolidated financial
statements.
(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 June 30, 2004 in total and by geographic region:
Consolidated
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 54 181,339 $3,232,230 8.0%
2005 105 481,648 10,093,232 25.0%
2006 93 301,168 5,676,298 14.1%
2007 85 375,443 7,565,694 18.8%
2008 42 174,303 3,443,155 8.5%
2009 38 231,573 4,832,726 12.0%
2010 10 194,611 3,592,488 8.9%
2011 6 40,142 745,560 1.9%
2012 2 32,910 749,794 1.9%
2013 - - - -
2014 1 19,798 235,200 0.6%
2015 2 6,120 116,280 0.3%
--- --------- ----------- ------
Total 438 2,039,055 $40,282,657 100.0%
=== ========= =========== ======
Denver
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 29 43,997 $881,687 10.3%
2005 62 141,943 3,052,771 35.6%
2006 41 59,825 1,092,546 12.8%
2007 34 67,481 1,251,054 14.6%
2008 21 69,741 1,314,127 15.3%
2009 13 28,118 508,739 5.9%
2010 - - - -
2011 2 6,744 115,454 1.4%
2012 - - - -
2013 - - - -
2014 1 19,798 235,200 2.7%
2015 2 6,120 116,280 1.4%
--- --------- ----------- ------
Total 205 443,767 $8,567,858 100.0%
=== ========= =========== ======
11
Lease Expiration Information - continued
Phoenix
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 11 29,445 $694,273 4.3%
2005 19 110,111 2,442,907 15.1%
2006 29 117,713 2,671,661 16.5%
2007 31 153,280 3,407,635 21.1%
2008 8 32,266 745,639 4.6%
2009 17 154,844 3,386,427 20.9%
2010 4 89,696 1,889,829 11.7%
2011 1 16,879 388,217 2.4%
2012 1 24,444 546,610 3.4%
2013 - - - -
2014 - - - -
2015 - - - -
--- --------- ----------- ------
Total 121 728,678 $16,173,198 100.0%
=== ========= =========== ======
Dallas
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 7 47,944 $966,278 7.8%
2005 15 184,829 4,120,539 33.4%
2006 10 43,298 902,290 7.3%
2007 16 146,313 2,759,432 22.4%
2008 11 68,916 1,326,283 10.8%
2009 5 39,899 782,451 6.4%
2010 3 53,987 1,125,292 9.1%
2011 1 7,729 139,122 1.1%
2012 1 8,466 203,184 1.7%
2013 - - - -
2014 - - - -
2015 - - - -
--- --------- ----------- ------
Total 69 601,381 $12,324,871 100.0%
=== ========= =========== ======
12
Lease Expiration Information - continued
Indianapolis
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 5 21,924 $380,928 22.9%
2005 7 11,910 211,868 12.7%
2006 9 31,534 576,802 34.7%
2007 4 8,369 147,573 8.9%
2008 2 3,380 57,106 3.4%
2009 3 8,712 155,109 9.3%
2010 1 5,343 93,503 5.6%
2011 1 2,400 40,800 2.5%
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
--- --------- ----------- ------
Total 32 93,572 $1,663,689 100.0%
=== ========= =========== ======
Non-core
Number of Square Annual Percentage of Total
Year Leases Footage Revenue Annual Revenue
---- --------- ------- ------- -------------------
2004 2 38,029 $309,064 19.9%
2005 2 32,855 265,147 17.1%
2006 4 48,798 432,999 27.9%
2007 - - - -
2008 - - - -
2009 - - - -
2010 2 45,585 483,864 31.1%
2011 1 6,390 61,967 4.0%
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
--- --------- ----------- ------
Total 11 171,657 $1,553,041 100.0%
=== ========= =========== ======
(1) Excludes Kellogg Executive Suite and month-to-month tenants.
(2) Does not include Panorama Falls.
13
Other Property Information
The following chart illustrates the geographic distribution of our
100%-owned core properties(1) by square footage at June 30, 2004:
[GRAPHIC OMITTED - DATA ONLY]
The following table categorizes the leased area of our 100%-owned core
properties(1) by our tenant's industry at June 30, 2004:
Percentage
Industry of Area
-------- ----------
Wholesale trade and manufacturing 13.1%
Consulting and business services 11.1%
Healthcare 9.6%
Real estate 9.5%
Financial services - advisement and brokerage 8.4%
Financial services - insurance 6.9%
Legal 6.8%
Financial services - mortgage 6.0%
Energy 5.7%
Computer systems and software 4.6%
Travel, entertainment and food service 4.6%
Telecommunications 3.8%
Other 3.3%
Financial services - banking 3.2%
Accounting 2.7%
Engineering 0.4%
Advertising and marketing 0.3%
(1) Does not include the Texas State Buildings or Panorama Falls.