Exhibit 99.2
AmREIT
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Supplemental Financial Information
September 30, 2007
(Unaudited)
Table of Contents Page #
----------------- ------
Corporate Profile 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Consolidated Statements of Operations - Segments 4 - 7
Summary of Operating Results
Funds From Operations 8
Dividends - All Classes of Common Shares 8
Rental and Earned Income 9
Real Estate Operating Revenue 9
Discontinued Operations 10
Interest Expense 10
Summary Balance Sheet Information
Common Share Data 11
Capitalization 11
Portfolio Net Asset Value 11
Debt Information
Outstanding Balances and Terms 12
Fixed vs. Variable Rate Debt 13
Property & Tenant Information
Property Table 14 - 15
Tenant Concentration 16
Leasing Activity Report 16
Lease Expiration Schedule 17
This Supplemental Financial Information package contains historical information
of the Company and is intended to supplement the Company's Quarterly Report on
Form 10-Q for the three and nine months ended September 30, 2007. All financial
information in this Supplemental Financial Information package is shown in
thousands, except for per share data and share information.
Certain information contained in this Supplemental Financial Information package
includes certain forward-looking statements reflecting AmREIT's expectations in
the near term that involve a number of risks and uncertainties; however, many
factors may materially affect the actual results, including demand for our
properties, changes in rental and occupancy rates, changes in property operating
costs, interest rate fluctuations, and changes in local and general economic
conditions. Accordingly, there is no assurance that AmREIT's expectations will
be realized.
Corporate Profile:
AmREIT (AMEX: AMY) is a growing real estate company focused on the development,
acquisition, construction, disposition, brokerage, leasing and management of
shopping centers in major metropolitan markets throughout the Southwest and
Southeast. The company deploys its broad range of real estate development and
operating expertise to grow two distinct businesses within AmREIT. The first is
a 1.2 million square foot portfolio of "Irreplaceable Corners TM" - Premier
retail properties in high traffic, densely populated areas. The second is an
advisory and sponsorship business that had a total of $336 million in assets
under management as of September 30, 2007. Founded in 1985, AmREIT is a fully
integrated equity real estate investment trust that has been public since 2002.
Corporate Office:
8 Greenway Plaza, Suite 1000
Houston, Texas 77046
(800) 888-4400
(713) 850-0498 (fax)
www.amreit.com
Stock Exchange:
American Stock Exchange - AMY
1
Consolidated Balance Sheets:
CONSOLIDATED BALANCE SHEETS
September 30, 2007 and December 31, 2006
(in thousands, except share data)
September 30, December 31,
2007 2006
------------------ -------------------
ASSETS (unaudited)
Real estate investments at cost:
Land $ 129,497 $ 124,751
Buildings 140,277 140,487
Tenant improvements 9,971 9,296
--------------------------------------
279,745 274,534
Less accumulated depreciation and amortization (14,361) (10,628)
------------------ -------------------
265,384 263,906
Real estate held for sale, net 22,505 -
Net investment in direct financing leases held for investment 2,055 19,204
Intangible lease cost, net 13,764 16,016
Investment in merchant development funds and other affiliates 6,912 2,651
------------------ -------------------
Net real estate investments
310,620 301,777
Cash and cash equivalents 6,785 3,415
Tenant receivables, net 4,034 4,330
Accounts receivable, net 1,259 1,772
Accounts receivable - related party 5,593 1,665
Notes receivable - related party 7,216 10,104
Deferred costs 2,285 2,045
Other assets 3,740 3,322
------------------ -------------------
TOTAL ASSETS $ 341,532 $ 328,430
================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 154,386 $ 144,453
Notes payable, held for sale 12,928 -
Accounts payable and other liabilities 6,361 9,162
Below market leases, net 3,537 3,960
Security deposits 676 668
------------------ -------------------
TOTAL LIABILITIES 177,888 158,243
------------------ -------------------
Minority interest 1,166 1,137
Shareholders' equity:
Preferred shares, $.01 par value, 10,000,000 shares authorized, none
issued - -
Class A Common shares, $.01 par value, 50,000,000 shares authorized,
6,599,033 and 6,549,950 shares issued, respectively 66 65
Class B Common shares, $.01 par value, 3,000,000 shares authorized,
1,031,097 and 1,080,180 shares issued and outstanding,
respectively 10 11
Class C Common shares, $.01 par value, 4,400,000 shares authorized,
4,141,140 and 4,145,531 shares issued and outstanding,
respectively 41 41
Class D Common shares, $.01 par value, 17,000,000 shares authorized,
11,044,413 and 11,039,803 shares issued and outstanding,
respectively 110 110
Capital in excess of par value 194,230 194,696
Accumulated distributions in excess of earnings (30,124) (23,749)
Cost of treasury shares, 244,353 and 292,238 Class A shares,
respectively (1,855) (2,124)
------------------ -------------------
TOTAL SHAREHOLDERS' EQUITY 162,478 169,050
------------------ -------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 341,532 $ 328,430
================== ===================
2
Consolidated Statements of Operations:
Quarter ended September 30, Year to date ended September 30,
2007 2006 2007 2006
---------------- ---------------- ------------------ ---------------------
Revenues:
Rental income from operating
leases $ 7,600 $ 7,241 $ 22,359 $ 20,646
Earned income from direct
financing leases 59 59 179 178
Real estate fee income 118 27 972 778
Real estate fee income - related
party 1,775 897 2,837 2,574
Construction revenues 300 705 1,092 1,645
Construction revenues - related
party 1,675 2,890 2,770 6,686
Securities commission income -
related party 933 1,554 3,410 4,172
Asset management fee income -
related party 334 212 930 556
---------------- ---------------- ------------------ ---------------------
Total revenues 12,794 13,585 34,549 37,235
---------------- ---------------- ------------------ ---------------------
Expenses:
General and administrative 2,249 2,115 6,363 6,234
Property expense 1,937 2,008 5,703 5,189
Construction costs 1,792 3,224 3,521 7,508
Legal and professional 425 356 1,188 942
Real estate commissions 1 - 448 540
Securities commissions 788 1,348 2,862 3,694
Depreciation and amortization 2,016 2,046 5,914 6,620
---------------- ---------------- ------------------ ---------------------
Total expenses 9,208 11,097 25,999 30,727
---------------- ---------------- ------------------ ---------------------
Operating income 3,586 2,488 8,550 6,508
Other income (expense):
Interest and other income -
related party 361 403 861 870
Income from merchant
development funds and other
affiliates 462 213 435 519
Federal income tax (expense)
benefit for taxable REIT
subsidiary (259) 91 242 360
Interest expense (2,309) (1,814) (6,485) (5,095)
Minority interest in income of
consolidated joint ventures 14 20 51 58
---------------- ---------------- ------------------ ---------------------
Income before discontinued
operations 1,855 1,401 3,654 3,220
Income from discontinued
operations, net of taxes 150 156 454 670
Gain on sales of real estate
acquired for resale, net of
taxes - - - 12
---------------- ---------------- ------------------ ---------------------
Income from discontinued
operations 150 156 454 682
---------------- ---------------- ------------------ ---------------------
Net income 2,005 1,557 4,108 3,902
Distributions paid to class B, C
and D shareholders (2,693) (2,909) (8,109) (8,729)
---------------- ---------------- ------------------ ---------------------
Net loss available to class A
shareholders $ (688) $ (1,352) $ (4,001) $ (4,827)
================ ================ ================== =====================
Net loss per class A common share
- basic and diluted
Loss before discontinued
operations $ (0.13) $ (0.24) $ (0.70) $ (0.87)
Income from discontinued
operations 0.02 0.02 0.07 0.11
---------------- ---------------- ------------------ ---------------------
Net loss $ (0.11) $ (0.22) $ (0.63) $ (0.76)
================ ================ ================== =====================
Weighted average class A common
shares used to
compute net loss per share,
basic and diluted 6,385 6,285 6,373 6,321
================ ================ ================== =====================
3
Segmented Statements of Operations:
Asset Advisory
----------------------------
For the three months ended September 30, Portfolio Real Estate Securities Merchant Total
2007 ($ in 000's) Operations Development
Funds
------------- -------------------------- -------------------------------
Rental income $ 7,659 $ - $ - $ - $ 7,659
Real estate fee income - 1,893 - - 1,893
Construction revenues - 1,975 - - 1,975
Securities commission income - - 933 - 933
Asset management fee income - - - 334 334
------------- ------------- ------------ --------------- ---------------
Total revenue 7,659 3,868 933 334 12,794
General and administrative 413 1,407 479 (50) 2,249
Property expense 1,912 25 - - 1,937
Construction costs - 1,792 - - 1,792
Legal and professional 338 32 50 5 425
Real estate commissions - 1 - - 1
Securities commissions - - 788 - 788
Depreciation and amortization 2,016 - - - 2,016
------------- ------------- ------------ --------------- ---------------
Total expenses 4,679 3,257 1,317 (45) 9,208
Interest expense (2,140) (151) (18) - (2,309)
Other income/ (expense) 431 (181) 157 171 578
Income (loss) from
discontinued operations 151 (1) - - 150
------------- ------------- ------------ --------------- ---------------
Net income
(loss) $ 1,422 $ 278 $ (245) $ 550 $ 2,005
------------- ------------- ------------ --------------- ---------------
4
Asset Advisory
--------------------------
For the three months ended September 30, 2006 Portfolio Real Estate Securities Merchant Total
($ in 000's) Operations Development
Funds
------------- -------------------------- -----------------------------
Rental income $ 7,300 $ - $ - $ - $ 7,300
Real estate fee income - 924 - - 924
Construction revenues - 3,595 - - 3,595
Securities commission income - - 1,554 - 1,554
Asset management fee income - - - 212 212
------------- ------------- ------------ ------------- ---------------
Total revenue 7,300 4,519 1,554 212 13,585
General and administrative 229 1,302 532 52 2,115
Property expense 1,961 47 - - 2,008
Construction costs - 3,224 - - 3,224
Legal and professional 236 87 33 - 356
Real estate commissions - - - - -
Securities commissions - - 1,348 - 1,348
Depreciation and amortization 2,046 - - - 2,046
------------- ------------- ------------ ------------- ---------------
Total
expenses 4,472 4,660 1,913 52 11,097
Interest expense (1,712) (92) (10) - (1,814)
Other income/ (expense) 592 (7) (10) 152 727
Income (loss) from discontinued
operations 159 (3) - - 156
------------- ------------- ------------ ------------- ---------------
Net income
(loss) $ 1,867 $ (243) $ (379) $ 312 $ 1,557
------------- ------------- ------------ ------------- ---------------
5
Asset Advisory
---------------------------
For the nine months ended September 30, Portfolio Real Estate Securities Merchant Total
2007 ($ in 000's) Operations Development
Funds
--------------- -------------------------- ----------------------------
Rental income $ 22,538 $ - $ - $ - $ 22,538
Real estate fee income - 3,809 - - 3,809
Construction revenues - 3,862 - - 3,862
Securities commission
income - - 3,410 - 3,410
Asset management fee income - - - 930 930
--------------- ------------- ------------ -------------- -------------
Total revenue 22,538 7,671 3,410 930 34,549
General and administrative 1,118 3,874 1,330 41 6,363
Property expense 5,606 93 4 - 5,703
Construction costs - 3,521 - - 3,521
Legal and professional 909 162 112 5 1,188
Real estate commissions - 448 - - 448
Securities commissions - - 2,862 - 2,862
Depreciation and
amortization 5,914 - - - 5,914
--------------- ------------- ------------ -------------- -------------
Total expenses 13,547 8,098 4,308 46 25,999
Interest expense (6,041) (415) (29) - (6,485)
Other income (expense) 890 392 336 (29) 1,589
Income from
discontinued operations 451 3 - - 454
--------------- ------------- ------------ -------------- -------------
Net income
(loss) $ 4,291 $ (447) $ (591) $ 855 $ 4,108
--------------- ------------- ------------ -------------- -------------
6
Asset Advisory
-----------------------------
For the nine months ended September 30, Portfolio Real Estate Securities Merchant Total
2006 ($ in 000's) Operations Development
Funds
--------------- ---------------------------- -----------------------------
Rental income $ 20,824 $ - $ - $ - $ 20,824
Real estate fee income - 3,352 - - 3,352
Construction revenues - 8,331 - - 8,331
Securities commission income - - 4,172 - 4,172
Asset management fee income - - - 556 556
--------------- -------------- ------------- --------------- -------------
Total revenue 20,824 11,683 4,172 556 37,235
General and administrative 802 3,664 1,635 133 6,234
Property expense 5,083 86 20 - 5,189
Construction costs - 7,508 - - 7,508
Legal and professional 699 186 57 - 942
Real estate commissions - 540 - - 540
Securities commissions - - 3,694 - 3,694
Depreciation and amortization 6,620 - - - 6,620
--------------- -------------- ------------- --------------- -------------
Total
expenses 13,204 11,984 5,406 133 30,727
Interest expense (4,718) (341) (36) - (5,095)
Other income/ (expense) 1,200 141 126 340 1,807
Income (loss) from
discontinued operations 701 (19) - - 682
--------------- -------------- ------------- --------------- -------------
Net income
(loss) $ 4,803 $ (520) $ (1,144) $ 763 $ 3,902
--------------- -------------- ------------- --------------- -------------
7
AmREIT
Summary of Operating Results
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------------------------
Funds From Operations: 2007 2006 2007 2006
-------------- ------------- --------------- ----------------
Income - before discontinued operations $ 1,855 $ 1,402 $ 3,654 $ 3,219
Income - from discontinued operations 150 156 454 670
Plus depreciation of real estate assets - from
operations 2,022 2,034 5,922 6,624
Plus depreciation of real estate assets - from
discontinued operations 8 2 22 17
Adjustments for nonconsolidated affiliates 66 42 102 111
Less gain on sale of real estate acquired for
investment - - - (286)
Less class B, C & D distributions (2,693) (2,909) (8,109) (8,729)
-------------- ------------- --------------- ----------------
Total Funds From Operations available to class A
shareholders $ 1,408 $ 727 $ 2,045 $ 1,626
============== ============= =============== ================
Weighted Average Class A Shares Outstanding 6,385 6,285 6,373 6,321
============== ============= =============== ================
Funds from Operations per Class A Share $ 0.22 $ 0.12 $ 0.32 $ 0.26
Dividends:
Class A Common share dividends per share $ 0.12 $ 0.12 $ 0.36 $ 0.36
Class B Common share dividends per share (1) $ 0.19 $ 0.19 $ 0.57 $ 0.57
Class C Common share dividends per share (2) $ 0.17 $ 0.17 $ 0.51 $ 0.51
Class D Common share dividends per share (3) $ 0.16 $ 0.16 $ 0.48 $ 0.48
(1) The class B common shares receive a cumulative preferred dividend,
fixed at 8%, payable quarterly. The shares are currently convertible on
a one-for-one basis into our class A common shares, and are callable by
the Company on a one for one basis, or $10.18 in cash at the holders
option. As announced on November 1, 2007, we have elected to redeem our
remaining class C common shares and will do so on December 20, 2007.
(2) The class C common shares receive a preferred dividend, fixed at 7%,
payable monthly. The shares are convertible into our class A common
shares based on 110% of invested capital (i.e. $1,000 in class C common
shares will convert into $1,100 in class A common shares) after the
seventh anniversary of issuance (beginning in 2010). We have the right
to force conversion of the class C common shares into Class A common
shares on a one-for-one basis or to redeem the shares at a cash
redemption price of $11.00 per share at the holder's option.
(3) The class D common shares receive a fixed 6.5% annual dividend, payable
monthly. The shares are convertible into our class A common shares
based on 107.7% of invested capital (i.e. $1,000 in class D common
shares will convert into $1,077 in class A common shares) after the
seventh anniversary of issuance (beginning in 2011). The class D common
shares became callable by the Company beginning in July 2005, based on
the same conversion formula, prorated for the time the shares were
outstanding (107.7% of invested capital).
8
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------------
Rental and Earned Income: 2007 2006 2007 2006
--------- --------- ------------ ------------
Base minimum rent $ 5,497 $ 4,903 $ 16,072 $ 14,581
Earned income from direct financing
leases 59 59 179 178
Straight line rent 106 218 416 350
Over/Under market rent 49 16 130 50
Percentage rent 140 118 165 291
Tenant reimbursements 1,782 1,986 5,397 5,374
Lease termination fees 26 - 179 -
--------- --------- ------------ ------------
Total Rental and Earned Income $ 7,659 $ 7,300 $ 22,538 $ 20,824
========= ========= ============ ============
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ----------------------
Real Estate Operating Revenue: 2007 2006 2007 2006
--------- ----------- ----------- ----------
Development and construction management fees
Merchant development funds and
affiliates $ 125 $ 94 $ 578 $ 367
Unrelated third parties 118 27 276 30
Leasing and brokerage commissions
Merchant development funds and
affiliates 1,406 709 1,599 1,932
Unrelated third parties - - 696 748
Property management fees
Merchant development funds and
affiliates 244 94 660 275
Unrelated third parties - - - -
--------- ----------- ----------- ----------
Total Real Estate Operating Revenue $ 1,893 $ 924 $ 3,809 $ 3,352
========= =========== =========== ==========
Percent attributable to merchant
development funds and affiliates 94% 97% 74% 77%
Percent attributable to unrelated
third
parties 6% 3% 26% 23%
9
Three Months Ended Nine Months Ended
----------------------------- ----------------------------
Discontinued Operations September 30, September 30,
----------------------------- ----------------------------
2007 2006 2007 2006
------------- --------------- -------------- -------------
Rental revenue $ 76 $ 44 $ 188 $ 151
Earned income from DFL 447 448 1,342 1,344
Gain on sale of real estate held for
investment - - 5 286
Gain on sale of real estate held for resale - - - 12
------------- --------------- -------------- -------------
Total revenues 523 492 1,535 1,793
------------- --------------- -------------- -------------
Property expense (1) 3 4 (116)
Other general and administrative (4) (3) (16) (19)
Federal income tax expense 3 2 (1) 15
Legal and professional (4) (7) (20) (31)
Depreciation and amortization (8) (2) (22) (17)
Minority interest (42) (43) (154) (98)
Interest expense (317) (286) (873) (845)
------------- --------------- -------------- -------------
Total expenses (373) (336) (1,082) (1,111)
------------- --------------- -------------- -------------
Income from discontinued operations 150 156 454 682
Basic and diluted income from discontinued
operations
per class A common share $ 0.02 $ 0.02 $ 0.07 $ 0.11
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- -------------------------
Interest Expense: 2007 2006 2007 2006
------------- ------------- ------------- -----------
Interest paid - floating rate $ 181 $ 66 $ 610 $ 353
Interest paid - fixed rate 2,114 1,739 5,841 4,729
Loan cost amortization 73 67 210 186
Out-of-market debt amortization (59) (58) (176) (173)
------------- ------------- ------------- -----------
Total Interest Expense $ 2,309 $ 1,814 $ 6,485 $ 5,095
------------- ------------- ------------- -----------
10
AmREIT
Summary Balance Sheet Information
September 30, December 31,
2007 2006
-----------------------------
Class A Common Share
Data:
Closing market price $ 7.91 $ 8.33
Dividend yield 6.32% 6.00%
90-day average trading volume 8,016 16,474
Total Capitalization:
Debt $ 154,386 $ 144,453
Class A common shares at
market 50,266 52,127
Class B common shares as
redeemed 10,497 8,998
Class C common shares as
converted 45,553 45,601
Class D common shares as
converted 118,948 118,899
-------------- --------------
Total
Capitalization $ 379,650 $ 370,078
============== ==============
Debt to Total Capitalization 40.7% 39.0%
Annual Property NOI $ 24,686
Average Property Cap Rate (1) 6.35% 6.75%
Property Gross Value 388,750 365,713
Notes Receivable 7,216 7,216
Cash, Receivables, Other 28,457 28,457
----------------------------------
Total Asset Value 424,423 401,386
Notes Payable (163,335) (163,335)
Security Deposits & A/P (7,037) (7,037)
----------------------------------
Total Liabilities (170,372) (170,372)
Minority Interest (2) (3,271) (3,271)
Total Net Asset Value (NAV) 250,780 227,743
NAV - Non Traded Shares (3) 170,138 170,138
NAV - class A common shares (3) 80,642 57,605
NAV - Per Class A common (3) $ 12.69 $ 9.07
(1) We have raised our Average Property Cap Rates as a result of continued
volatile market conditions.
(2) Includes the portion of the net asset value that is owned by third parties
or management, such as management's ownership interest in AAA CTL. We have
elected to hold these assets for sale.
(3) NAV and NAV per share represent only the portfolio value and other liquid
assets. We have not valued the asset advisory business or any of our
general partner back end interests in the above analysis.
- --------------------------------------------------------------------------------
11
Description Amount Amount Interest Rate Annual Maturity Date
Outstanding Outstanding Debt
09-30-2007 12-31-2006 Service
- ---------------------------------------------------------------------------------------------------
Credit Facility (1) $ 16,000 $ 11,929 7.53% $ 1,204 11/4/2007
----------------------------------
2007 Maturities $ 16,000 $ 11,929
MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008
----------------------------------
2008 Maturities $ 13,410 $ 13,410
Sugarland IHOP $ 1,122 $ 1,155 8.25% $ 138 3/1/2011
Sugar Land Plaza 2,265 2,286 7.60% 203 11/1/2011
----------------------------------
2011 Maturities $ 3,387 $ 3,441
AAA CTL Notes (3) $ 12,928 $ 13,265 7.72% - 7.89% $ 1,47804/2012-08/2012
5115 Buffalo Spdwy. 2,707 2,731 7.58% 241 5/11/2012
----------------------------------
2012 Maturities $ 15,635 $ 15,996
Cinco Ranch $ 8,194 $ 8,298 5.60% $ 601 7/10/2013
Plaza in the Park 17,318 17,538 5.60% 1,270 7/10/2013
----------------------------------
2013 Maturities $ 25,512 $ 25,836
Uptown Park $ 49,000 $ 49,000 5.37% $ 2,631 6/1/2015
----------------------------------
2015 Maturities $ 49,000 $ 49,000
Southbank - Riverwalk $ 20,000 $ 20,000 5.91% $ 1,182 6/1/2016
----------------------------------
2016 Maturities $ 20,000 $ 20,000
Bakery Square $ 3,772 $ 3,967 8.00% $ 571 2/10/2017
Uptown Plaza Dallas $ 19,900 $ - 5.64% $ 783 4/1/2017
----------------------------------
2017 Maturities $ 23,672 $ 3,967
----------------------------------
Total Maturities (2) $ 166,616 $ 143,579
==================================
(1) Our revolving credit facility is a variable-rate debt instrument, and its
outstanding balance fluctuates throughout the year based on our liquidity
needs. Annual Debt Service on this debt instrument assumes that the amount
outstanding and the interest rate as of September 30, 2007 remain constant
through maturity.
(2) Total maturities above are $698 thousand and $874 thousand less than total
debt as reported in our consolidated financial statements as of September
30, 2007 and December 31, 2006, respectively, due to the premium recorded
on above-market debt assumed in conjunction with certain of our property
acquisitions.
(3) The associated assets are held for sale as of September 30, 2007.
12
Fixed vs. Variable Rate Debt:
September 30, % of December 31, % of
2007 Total 2006 Total
---------------------------------------------------
Variable rate $ 16,000 10.4% $ 11,929 8.3%
Fixed rate 138,386 89.6% 132,524 91.7%
------------------------ --------------------------
$ 154,386 100.0% $ 144,453 100.0%
13
AmREIT
Property & Tenant Information
Annualized
Base Rent
as of
Multi-Tenant Shopping September
Centers Major Tenants City State Date Acquired GLA 30, 2007 % Leased
- -------------------------------------------------------------------------------------------------------
Uptown Park - Phase I Ann Taylor, Houston TX
and II McCormick &
Schmick's 6/1/2005 169,110 $5,215,960 99%
Southbank - Riverwalk Hard Rock Cafe San Antonio TX 9/30/2005 46,673 1,511,552 100%
MacArthur Park and Pad Kroger Irving TX 12/04 &12/05
Sites 237,381 3,827,651 97%
Plaza in the Park Kroger Houston TX 7/1/2004 144,062 2,649,984 98%
Cinco Ranch Kroger Houston TX 7/1/2004 97,297 1,228,515 99%
Bakery Square Walgreens & Bank Houston TX
of America 7/21/2004 34,614 851,914 100%
Uptown Plaza CVS/pharmacy Houston TX 12/10/2003 28,000 1,237,769 100%
Woodlands Plaza FedEx/Kinkos & The TX
Rug Gallery Woodlands 6/3/1998 20,018 373,317 100%
Sugarland Plaza Mattress Giant Sugarland TX 7/1/1998 16,750 349,612 100%
Terrace Shops Starbucks Houston TX 12/15/2003 16,395 483,067 100%
584 N. Germantown Pkwy. Auto Zone & Memphis TN
(Baptist Memorial Baptist
Medical Plaza) Memorial 7/23/2002 15,000 193,903 75%
Courtyard on Post Oak Verizon Wireless Houston TX 6/15/2004 13,597 477,361 100%
Uptown Plaza - Dallas Grotto, Century Dallas TX
Bank, Pei Wei 3/30/2006 33,840 1,619,906 100%
----------------------
Multi-Tenant Shopping Centers Total 872,737 20,020,511
Annualized
Base Rent
as of
Single Tenant September
(Ground Leases) City State Date Acquired GLA 30, 2007 % Leased
- -------------------------------------------------------------------------------------------------------
CVS Corporation Houston TX 1/10/2003 13,824 $327,167 100%
Darden Restaurants Peachtree GA
City 12/18/1998 6,867 79,366 100%
Carlson Restaurants Hanover MD 9/16/2003 6,802 141,674 100%
Citibank San Antonio TX 12/17/2004 4,439 159,979 100%
Washington Mutual Houston TX 12/11/1996 3,685 98,155 100%
Washington Mutual The TX
Woodlands 9/23/1996 3,685 63,996 100%
Woodlands Ring Road - Ground Leases The TX
Woodlands 2/1/2007 66,349 667,641 100%
----------------------
Single Tenant (Ground Leases) Total 105,651 1,537,978
14
Annualized Base
Rent as of
September 30,
Single Tenant (Fee Simple) City State Date Acquired GLA 2007 % Leased
-----------------------------------------------------------------------------------------------------------
Golden Corral Houston TX 7/23/2002 12,000 182,994 100%
Golden Corral Humble TX 7/23/2002 12,000 181,688 100%
Carlson Restaurants Houston TX 7/23/2005 8,500 200,000 100%
#1483 IHOP Corporation Sugarland TX 9/22/1999 4,020 189,660 100%
#1737 IHOP Corporation Centerville UT
(5)(2) 7/25/2002 4,020 163,380 100%
#4462 IHOP Corporation Memphis TN
(5)(2) 8/23/2002 4,020 179,376 100%
#5318 IHOP Corporation Topeka KS 9/30/1999 4,020 158,892 100%
AFC, Inc. Atlanta GA 7/23/2002 2,583 119,279 100%
Sunbelt Rental (1) Champaign IL 5/23/2007 - Note (1) Note (1)
Advance Auto (1)(2)(3)(4) Various Various Various 21,000 Note (1) Note (1)
----------------------------
Single Tenant (Fee Simple)
Total 72,163 1,375,269
Annualized Base
Rent as of
September 30,
Single Tenant (Leasehold) City State Date Acquired GLA 2007 % Leased
-----------------------------------------------------------------------------------------------------------
IHOP Corporation (5)(2) Various Various Various 60,300 $1,554,147 100%
--------------------------------------
Company Total GLA % Leased 1,110,851 $24,487,905 98%
-----------------------------------------------------------------------------------------------------------
Under Development (GLA represents proposed leaseable
(1) square footage).
(2) Held for Sale Held in joint venture of which we are the
(3) managing 50% owner. Advance Auto properties are located in MO and IL. Each
of the properties has a proposed GLA of
(4) 7,000 square feet. IHOP properties are located in NM, LA, OR, VA, TX, CA,
TN, CO, VA, NY, OR, KS, UT and MO. Each of the properties has a GLA of
4,020 square feet. These properties are held by a consolidated subsidiary,
79.0% of which is owned by AmREIT,19.6% of which is owned by AmREIT Income
& Growth Fund, one of our affiliated merchant development funds, and 1.4%
of which is owned by unaffiliated third parties. We have assigned to
management approximately 50% of our back-end participation interest in this
entity as part of our long- term incentive compensation program.
Accordingly, approximately half of the future net cash flows from such
participation interest are owned by management. We have elected to hold
these properties for sale as
(5) of September 30, 2007.
15
Top Tenants by revenue concentration for the nine months ended September 30,
2007:
% of Total
--------------------
Operating
--------------------
Tenant Rental Income Revenue
- ---------------------------- --------------- --------------------
Kroger $ 2,556 7.56%
IHOP Corporation * 1,686 4.98%
CVS/Pharmacy 845 2.50%
Landry's 790 2.34%
Linens 'N Things 661 1.95%
Hard Rock Cafe International 513 1.52%
Cosniac Restaurant Group 445 1.32%
Champps Entertainment, Inc 417 1.23%
Starbucks 376 1.11%
McCormick & Schmicks 342 1.01%
--------------- --------------------
$ 8,631 25.52%
=============== ====================
* $1,342 of the IHOP Corporation revenues are related to assets
which we have elected to hold for sale as of September 30, 2007.
Leasing Activity for the quarter ended September
30, 2007:
Rent per sq. ft.
---------------------
# of Total sq. New Rent Old Rent
leases ft. % Change
--------------------- --------------------- ----------
New leases 5 13,335 $ 27.32 N/A N/A
Activity on Existing Leases:
Lease renewals 5 18,309 $ 20.16 $17.24 16.95%
Non-renewals - - N/A - N/A
Expired/Cancelled
leases 1 1,941 N/A 26.00 N/A
16
Lease Expirations by Year:
Number of
Expiration Leases Square Percent
Year Expiring Footage of Total
------------------------------------------------------------
2007 6 19,796 1.86%
2008 20 61,174 5.75%
2009 31 86,750 8.15%
2010 34 133,702 12.56%
2011 52 192,483 18.08%
2012 18 51,656 4.85%
2013 7 32,941 3.09%
2014 7 27,220 2.56%
2015 2 7,251 0.68%
2016 12 56,768 5.33%
2017 6 47,090 4.42%
2019 1 4,020 0.38%
2020 4 75,991 7.14%
2021 3 89,676 8.42%
2022 1 4,020 0.38%
2023 1 63,373 5.95%
2024 3 21,864 2.05%
2025 7 45,597 4.28%
2026 4 16,080 1.51%
2027 3 12,060 1.13%
2056 1 15,120 1.42%
------------------------------------------------------------
223 1,064,632
17