AmREIT
- --------------------------------------------------------------------------------
Supplemental Financial Information
December 31, 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
Debt Information
Outstanding Balances and Terms 12
Fixed vs. Variable Rate Debt 13
Property & Tenant Information
Property Table 14
Tenant Concentration 15
Leasing Activity Report 15
Lease Expiration Schedule 16
This Supplemental Financial Information package contains historical information
of the Company and is intended to supplement the Company's Annual Report on Form
10-K for the twelve months ended December 31, 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 full service real estate company dedicated to providing
the highest standard of service and value to its clients, partners and
investors. For 24 years, AmREIT has delivered on its vision to become the
Irreplaceable Corners TM company through investments, acquisitions, value add
developments and management of high quality retail and mixed-use properties.
AMREIT has more than 1.3 million square feet in various stages of development,
re-development or in the pipeline for its advisory funds. AmREIT is
headquartered in Houston, Texas and has an office in Dallas, Texas.
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:
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AmREIT AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2007 and December 31, 2006
(in thousands, except share data)
December 31, December 31,
2007 2006
-------------- -------------
ASSETS
Real estate investments at cost:
Land $ 130,563 $ 124,751
Buildings 141,045 140,487
Tenant improvements 10,105 9,296
-----------------------------
281,713 274,534
Less accumulated depreciation and amortization (15,626) (10,628)
-------------- -------------
266,087 263,906
Real estate held for sale and
Investment in direct financing leases held for sale, net 22,438 -
Net investment in direct financing leases held for investment 2,058 19,204
Intangible lease cost, net 13,096 16,016
Investment in merchant development funds and other affiliates 10,514 2,651
-------------- -------------
Net real estate investments 314,193 301,777
Cash and cash equivalents 1,221 3,415
Tenant receivables, net 4,398 4,330
Accounts receivable, net 1,251 1,772
Accounts receivable - related party 5,386 1,665
Notes receivable - related party 10,442 10,104
Deferred costs 2,472 2,045
Other assets 4,394 3,322
-------------- -------------
TOTAL ASSETS $ 343,757 $ 328,430
============== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 168,560 $ 144,453
Notes payable, held for sale 12,811 -
Accounts payable and other liabilities 7,699 9,162
Below market leases, net 3,401 3,960
Security deposits 674 668
-------------- -------------
TOTAL LIABILITIES 193,145 158,243
-------------- -------------
Minority interest 1,179 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,
6,626,559 and 6,549,950 shares issued, respectively 66 65
Class B Common shares, $.01 par value, 3,000,000 shares authorized,
0 and 1,080,180 shares issued and outstanding, respectively - 11
Class C Common shares, $.01 par value, 4,400,000 shares authorized,
2
Consolidated Statements of
Operations:
Quarter ended Year to date ended
December 31, December 31,
2007 2006 2007 2006
--------- --------- ---------- ----------
Revenues:
Rental income from operating
leases $ 8,022 $ 7,353 $ 30,381 $ 27,999
Earned income from direct
financing leases 60 60 239 238
Real estate fee income 224 556 1,196 1,334
Real estate fee income - related
party 1,209 4,409 4,046 6,983
Construction revenues 653 1,380 1,745 3,025
Construction revenues - related
party 3,130 3,749 5,900 10,435
Securities commission income -
related party 1,395 2,382 4,805 6,554
Asset management fee income -
related party 359 267 1,289 823
--------- --------- ---------- ----------
Total revenues 15,052 20,156 49,601 57,391
--------- --------- ---------- ----------
Expenses:
General and administrative 3,207 3,254 9,570 9,488
Property expense 1,898 1,722 7,601 6,911
Construction costs 3,385 4,782 6,906 12,290
Legal and professional 557 604 1,745 1,546
Real estate commissions 11 502 459 1,042
Securities commissions 1,127 2,038 3,989 5,732
Depreciation and amortization 1,894 2,115 7,808 8,735
--------- --------- ---------- ----------
Total expenses 12,079 15,017 38,078 45,744
--------- --------- ---------- ----------
Operating income 2,973 5,140 11,523 11,648
Other income (expense):
Interest and other income -
related party 281 624 1,142 1,494
Income from merchant development
funds and other affiliates (282) 448 153 967
Federal income tax (expense)
benefit for taxable REIT
subsidiary 339 (1,235) 581 (875)
Interest expense (2,209) (1,859) (8,694) (6,954)
Minority interest in income of
consolidated joint ventures (7) 4 44 62
--------- --------- ---------- ----------
Income before discontinued
operations 1,095 3,122 4,749 6,342
Income from discontinued
operations, net of taxes 48 246 502 916
Gain on sales of real estate
acquired for resale, net of taxes - 293 - 305
--------- --------- ---------- ----------
Income from discontinued
operations 48 539 502 1,221
--------- --------- ---------- ==========
Net income 1,143 3,661 5,251 7,563
Distributions paid to class B, C
and D shareholders (3,601) (2,713) (11,709) (11,442)
--------- --------- ---------- ----------
Net loss available to class A
shareholders $ (2,457) $ 948 $ (6,458) $ (3,879)
========= ========= ========== ==========
Net loss per class A common share -
basic and diluted
Loss before discontinued
operations $ (0.40) $ 0.07 $ (1.09) $ (0.81)
Income from discontinued
operations $ 0.01 $ 0.09 $ 0.08 $ 0.19
--------- --------- ---------- ----------
Net loss $ (0.39) $ 0.15 $ (1.01) $ (0.62)
========= ========= ========== ==========
Weighted average class A common
shares used to
compute net loss per share, basic
and diluted 6,316 6,238 6,358 6,300
========= ========= ========== ==========
3
Segmented Statements of Operations:
Asset Advisory Group
-------------------------
Real Estate
Development & Merchant
For the Year Ended Operating Securities Development
December 31, 2007 ($ in 000's) Portfolio Company Operations Funds Total
- ----------------------------------- --------- -------------- -----------------------------------
Rental income 30,620 - - - 30,620
Securities commission income - - 4,805 - 4,805
Real estate fee income - 5,242 - - 5,242
Construction revenues - 7,645 - - 7,645
Asset management fee income - - - 1,289 1,289
------------------------- ----------------------- ----------
Total revenue 30,620 12,887 4,805 1,289 49,601
General and administrative 1,686 5,758 2,018 108 9,570
Property expense 7,503 97 1 - 7,601
Construction costs - 6,906 - - 6,906
Legal and professional 1,369 196 149 31 1,745
Real estate commissions - 459 - - 459
Securities commissions - - 3,989 - 3,989
Depreciation and amortization 7,808 - - - 7,808
------------------------- ----------------------- ----------
Total expenses 18,366 13,416 6,157 139 38,078
Interest
expense (7,965) (680) (49) - (8,694)
Other income/ (expense) 892 709 120 199 1,920
Income from discontinued operations 485 18 - - 502
--------- ------------ --------- ------------ ----------
Net income (loss) 5,667 (482) (1,281) 1,349 5,251
========= ============ ========= ============ ==========
4
Asset Advisory Group
----------------------------
Real Estate
Development & Merchant
For the Year Ended Operating Securities Development
December 31, 2006 ($ in 000's) Portfolio Company Operations Funds Total
- -------------------------------------------------------- -------------- --------------- -------------- -------------
Rental income 28,237 - - - 28,237
Securities commission income - - 6,554 - 6,554
Real estate fee income - 8,317 - - 8,317
Construction revenues - 13,460 - - 13,460
Asset management fee income - - - 823 823
---------- ----------- ------------- ------------ -------------
Total revenue 28,237 21,777 6,554 823 57,391
General and administrative 1,802 5,235 2,284 167 9,488
Property expense 6,911 - - - 6,911
Construction costs - 12,290 - - 12,290
Legal and professional 1,235 241 70 - 1,546
Real estate commissions - 1,042 - - 1,042
Securities commissions - - 5,732 - 5,732
Depreciation and amortization 8,735 - - - 8,735
---------- ----------- ------------- ------------ -------------
Total expenses 18,682 18,808 8,086 167 45,744
Interest expense (6,426) (295) (234) - (6,954)
Other income/ (expense) 1,294 (400) 602 152 1,648
Income from discontinued
operations 873 348 - - 1,221
---------- ----------- ------------- ------------ -------------
Net income (loss) 5,296 2,623 (1,164) 808 7,563
========== =========== ============= ============ =============
5
Asset Advisory Group
--------------------------------
Real Estate
Development & Merchant
For the Quarter Ended Operating Securities Development
December 31, 2007 ($ in 000's) Portfolio Company Operations Funds Total
- ----------------------------------- ------------ -------------- --------------- --------------- --------------
Rental income 8,082 - - - 8,082
Securities commission income - - 1,395 - 1,395
Real estate fee income - 1,433 - - 1,433
Construction revenues - 3,783 - - 3,783
Asset management fee income - - - 359 359
------------ -------------- -------------- --------------- --------------
Total revenue 8,082 5,216 1,395 359 15,052
General and administrative 567 1,884 689 67 3,207
Property expense 1,894 4 - - 1,898
Construction costs - 3,385 - - 3,385
Legal and professional 460 33 37 26 557
Real estate commissions (1) 12 - - 11
Securities commissions - - 1,127 - 1,127
Depreciation and amortization 1,894 - - - 1,894
------------ -------------- -------------- --------------- --------------
Total expenses 4,815 5,318 1,853 93 12,079
Interest expense (1,924) (265) (20) - (2,209)
Other income/ (expense) 2 315 (215) 229 331
Income from discontinued operations 32 16 - - 48
------------ -------------- -------------- --------------- --------------
Net income (loss) 1,377 (36) (693) 495 1,143
============ ============== ============== =============== ==============
6
Asset Advisory Group
-----------------------------
Real Estate
Development Merchant
For the Quarter Ended & Operating Securities Development
December 31, 2006 ($ in 000's) Portfolio Company Operations Funds Total
- -------------------------------------------------------- -------------- ------------- --------------- ------------
Rental income 7,413 - - - 7,413
Securities commission
income - - 2,382 - 2,382
Real estate fee income - 4,965 - - 4,965
Construction revenues - 5,129 - - 5,129
Asset management fee income - - - 267 267
----------- ------------ ------------ -------------- ------------
Total revenue 7,413 10,094 2,382 267 20,156
General and administrative 998 1,570 650 35 3,254
Property expense 1,821 (103) 3 - 1,722
Construction costs - 4,782 - - 4,782
Legal and professional 536 55 13 - 604
Real estate commissions - 502 - - 502
Securities commissions - - 2,038 - 2,038
Depreciation and
amortization 2,115 - - - 2,115
----------- ------------ ------------ -------------- ------------
Total expenses 5,471 6,807 2,704 35 15,017
Interest expense (1,707) 47 (198) - (1,859)
Other income/ (expense) 95 (541) 476 (189) (159)
Income from discontinued
operations 172 367 - - 539
----------- ------------ ------------ -------------- ------------
Net income (loss) 501 3,160 (44) 43 3,661
=========== ============ ============ ============== ============
7
AmREIT
Summary of Operating Results
Three Months Ended Year Ended
December 31, December 31,
-----------------------------------------------------
Funds From Operations: 2007 2006 2007 2006
----------- ---------- ----------- ------------
Income - before discontinued operations 1,095 3,122 $ 4,749 $ 6,342
Income - from discontinued operations 48 539 502 1,221
Plus depreciation of real estate assets - from operations 1,926 2,136 7,848 8,760
Plus depreciation of real estate assets - from
discontinued operations 8 5 30 22
Adjustments for nonconsolidated affiliates 374 22 476 133
Less gain on sale of real estate acquired for investment - - - (285)
Less class B, C & D distributions (3,601) (2,713) (11,709) (11,442)
Total Funds From Operations available to class A
----------- ---------- ----------- ------------
shareholders (150) $ 3,112 $ 1,896 $ 4,751
=========== ========== =========== ============
Weighted average Class A shares outstanding 6,316 6,238 6,358 6,300
=========== ========== =========== ============
Funds from operations per Class A share $ (0.02) $ 0.50 $ 0.30 $ 0.75
Dividends:
Class A Common share dividends per share $ 0.12 $ 0.12 $ 0.50 $ 0.50
Class B Common share dividends per share (1) $ 0.19 $ 0.19 $ 0.76 $ 0.76
Class C Common share dividends per share (2) $ 0.17 $ 0.17 $ 0.68 $ 0.68
Class D Common share dividends per share (3) $ 0.16 $ 0.16 $ 0.64 $ 0.64
(1) The class B common shares received a cumulative preferred dividend,
fixed at 8%, payable quarterly. On December 20, 2007, we redeemed our
remaining class B common shares at $10.18 per share.
(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 Twelve Months Ended
December 31, December 31,
------------------ -------------------
Rental and Earned Income: 2007 2006 2007 2006
--------- -------- --------- ---------
Base minimum rent $ 5,504 $ 5,003 $ 21,576 $ 19,584
Earned income from direct financing
leases 60 60 239 238
Straight line rent 21 404 437 754
Over/Under market rent 47 32 177 82
Percentage rent 504 469 669 760
Tenant reimbursements 1,857 745 7,254 6,119
Lease termination fees 87 700 266 700
--------- -------- --------- ---------
Total Rental and Earned Income $ 8,082 $ 7,413 $ 30,620 $ 28,237
========= ======== ========= =========
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
Real Estate Operating Revenue: 2007 2006 2007 2006
--------- ---------- --------- ---------
Development and construction management fees
Merchant development funds and
affiliates $ 365 $ 603 $ 943 $ 970
Unrelated third parties 63 140 339 170
Leasing and brokerage commissions
Merchant development funds and
affiliates 615 3,676 2,214 5,608
Unrelated third parties 161 416 857 1,164
Property management fees
Merchant development funds and
affiliates 229 130 889 405
Unrelated third parties - - - -
--------- ---------- --------- ---------
Total Real Estate Operating Revenue $ 1,433 $ 4,965 $ 5,242 $ 8,317
========= ========== ========= =========
Percent attributable to merchant
development funds and affiliates
84% 89% 77% 84%
Percent attributable to unrelated
third parties
16% 11% 23% 16%
9
Three Months Ended Year Ended
----------------------- --------------------------
Discontinued Operations December 31, December 31,
----------------------- --------------------------
2007 2006 2007 2006
---------- ----------- ---------- ------------
Rental revenue $ 78 $ 60 $ 266 $ 211
Earned income from DFL 445 448 1,787 1,792
Gain on sale of real estate held for
investment - 96 305
Gain on sale of real estate held for resale - 281 293
---------- ----------- ---------- ------------
Total revenues 523 885 2,053 2,601
---------- ----------- ---------- ------------
Property expense 9 5 - 44
Other general and administrative 1 - 17 18
Federal income tax expense (benefit) 8 3 9 (12)
Legal and professional 27 20 47 51
Depreciation and amortization 8 5 30 22
Minority interest 31 22 185 120
Interest expense 391 291 1,263 1,136
---------- ----------- ---------- ------------
Total expenses 475 346 1,551 1,380
---------- ----------- ---------- ------------
Income from discontinued operations 48 539 502 1,221
Basic and diluted income from discontinued
operations
per class A common share $ 0.01 $ 0.09 $ 0.08 $ 0.19
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ------------------------------
Interest Expense: 2007 2006 2007 2006
------------- ------------- -------------- --------------
Interest paid - floating rate $ 253 $ 114 $ 863 $ 467
Interest paid - fixed rate 1,936 1,737 7,777 6,466
Loan cost amortization 80 67 290 253
Out-of-market debt amortization (59) (59) (235) (232)
------------- ------------- -------------- --------------
Total Interest Expense $ 2,210 $ 1,859 $ 8,695 $ 6,954
------------- ------------- -------------- --------------
10
AmREIT
Summary Balance Sheet Information
December December
31, 2007 31, 2006
------------------ ------------------
Class A Common Share Data:
Closing market price $ 7.16 $ 8.33
Dividend yield 6.98% 6.00%
90-day average trading volume 9,866 16,474
Total Capitalization:
Debt $ 181,371 * $ 144,453
Class A common shares at market 47,446 52,127
Class B common shares at market - 8,998
Class C common shares as converted 45,584 45,601
Class D common shares as converted 118,963 118,899
----------------- ------------------
Total Capitalization $ 393,364 $ 370,078
================= ==================
Debt to Total Capitalization 46.1% 39.0%
* Includes debt associated with assets held for sale in the amount of $12,811 as of December 31, 2007
11
AmREIT
Debt Information
Amount Amount
Outstanding Outstanding Annual Debt
Description 12-31-2007 12-31-2006 Interest Rate Service Maturity Date
- --------------------------------------------------------------------------------------------------------------------
MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008
--------------------------
2008 Maturities $ 13,410 $ 13,410
Credit Facility $ 30,439 $ 11,929 6.14% $ 1,869 10/30/2009
--------------------------
2009 Maturities 30,439 11,929
Sugarland IHOP $ 1,110 $ 1,155 8.25% $ 138 3/1/2011
Sugar Land Plaza 2,258 2,286 7.60% 203 11/1/2011
--------------------------
2011 Maturities $ 3,368 $ 3,441
AAA CTL Notes (3) $ 12,811 $ 13,265 7.72% - 7.89% $ 1,110 04/2012-08/2012
5115 Buffalo Spdwy. 2,699 2,731 7.58% 241 5/11/2012
--------------------------
2012 Maturities $ 15,510 $ 15,996
Cinco Ranch $ 8,158 $ 8,298 5.60% $ 601 7/10/2013
Plaza in the Park 17,243 17,538 5.60% 1,270 7/10/2013
--------------------------
2013 Maturities $ 25,401 $ 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 $ 3,704 $ 3,967 8.00% $ 571 2/10/2017
Uptown Plaza Dallas $ 19,900 $ - 5.64% $ 783 4/1/2017
--------------------------
2017 Maturities $ 23,604 $ 3,967
Total Maturities (2) $ 180,732 $ 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 December 31, 2007 remain constant through maturity.
(2) Total maturities above are $639 thousand and $874 thousand less than total debt as reported in our consolidated
financial statements as of December 31, 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 December 31, 2007.
12
Fixed vs. Variable Rate Debt:
December 31, % of December 31, % of
2007 Total 2006 Total
--------------------------------------------------
Variable rate $ 30,439 16.8% $ 11,929 8.3%
Fixed rate* 150,932 83.2% 132,524 91.7%
--------------------------------------------------
$ 181,371 100.0% $ 144,453 100.0%
* Includes debt of $12,811 associated with assets held for sale as of December 31, 2007.
13
AmREIT
Property & Tenant Information
Grocery Anchored Shopping Centers City State GLA ABR % Leased
- --------------------------------------------------------------------------------------------------------------------------
1 AmREIT C-Ranch LP Houston TX 97,297 $ 1,207,720 98%
2 MacArthur Park Irving TX 237,381 3,827,651 97%
3 Plaza in the Park Houston TX 144,062 2,678,998 97%
==========================================================================================================================
3 Grocery Anchored Shopping Centers Total 478,740 $ 7,714,369
Neighborhood Lifestyle & Community Shopping Center City State GLA ABR % Leased
- --------------------------------------------------------------------------------------------------------------------------
1 Bakery Square Houston TX 34,614 $ 851,914 100%
2 Courtyard on Post Oak Houston TX 13,597 477,361 100%
3 Sugarland Plaza Sugarland TX 16,750 349,612 100%
4 Terrace Shops Houston TX 16,395 482,278 100%
5 Uptown Plaza (including CVS) Houston TX 28,000 1,237,769 100%
6 Uptown Park Houston TX 169,112 5,179,689 99%
7 Woodlands Plaza The Woodlands TX 20,018 373,317 100%
8 Southbank - Riverwalk San Antonio TX 46,673 1,534,386 100%
9 584 N. Germantown Parkway Memphis TN 15,000 193,903 75%
10 Uptown Plaza - Dallas Dallas TX 33,840 1,619,906 100%
==========================================================================================================================
10 Community Shopping Centers Total 393,999 $ 12,300,134
Single Tenant (Ground Leases) - Land City State GLA ABR % Leased
- --------------------------------------------------------------------------------------------------------------------------
1 410-Blanco (Citibank) San Antonio TX 4,439 $ 159,979 100%
2 Carlson Restaurants Hanover MD 6,802 141,674 100%
3 Darden Peachtree City GA 6,867 79,366 100%
4 CVS Corporation (Eckerds at Yorktown) Houston TX 13,824 327,167 100%
5 Fontana Tract - (land) Dallas TX 0 0 100%
6 Washington Mutual Houston TX 3,685 98,155 100%
7 Washington Mutual The Woodlands TX 3,685 63,996 100%
8 Woodlands Ring Road - Ground Leases The Woodlands TX 66,349 667,641 100%
==========================================================================================================================
8 Single Tenant (Ground Leases) Total 105,651 $ 1,537,978
Single Tenant (Fee Simple) City State GLA ABR % Leased
- --------------------------------------------------------------------------------------------------------------------------
1 AFC, Inc. Atlanta GA 2,583 $ 119,279 100%
2 Advance Auto Aurora IL 7,000 Note (1) (2) (3) (4) 0%
3 Advance Auto St. Louis MO 7,000 Note (1) (2) (3) (4) 0%
4 Advance Auto (land) Washington MO 0 Note (1) (2) (3) (4) 0%
5 McAlister's Deli Champaign IL 7,000 175,392 100%
6 McAlister's Deli Peoria IL 3,426 151,491 100%
7 Sunbelt Rental (2 acres of land) Champaign IL 0 Note (1) (2) (3) 0%
8 Carlson Restaurants Houston TX 8,500 200,000 100%
9 Golden Corral Houston TX 12,000 182,994 100%
10 Golden Corral Humble TX 12,000 181,688 100%
11 IHOP Corporation #1483 Sugarland TX 4,020 189,660 100%
12 IHOP Corporation #1737 (5) Centerville UT 4,020 163,380 100%
13 IHOP Corporation #4462 (5) Memphis TN 4,020 179,376 100%
14 IHOP Corporation #5318 Topeka KS 4,020 158,892 100%
==========================================================================================================================
14 Single Tenant (Fee Simple) Total 75,589 $ 1,702,152
Single Tenant (Leasehold) City State GLA ABR % Leased
- --------------------------------------------------------------------------------------------------------------------------
15 Single Tenant (Leasehold) Total (5) Various Various 60,300 $ 1,554,147 100%
Company Total Sq. Ft. 1,114,279 $ 24,808,780
14
(1) Under Development (GLA represents proposed leasable square footage)
(2) Held for Sale
(3) Held in joint venture of which we are the managing 50% owner.
(4) Advance Auto properties are located in MO and IL. Each of the properties
has a proposed GLA of 7,000 square feet.
(5) IHOP properties are located in NM, LA, TX, CA, TN, CO, VA, NY, OR, KS, and
MO. Each of the properties has a GLA of 4,020 square feet. These properties
are held by a consolidated subsidiary, 75.0% of which is owned by us, 19.6%
of which is owned by AmREIT Income & Growth Corporation, one of our
merchant development funds, and the remainder 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.
Top Tenants by revenue concentration for the twelve months ended December 31,
2007:
Rental % Rental
Tenant Income Income
- ----------------------------------------------------------- ------------------ ------------------
Kroger $ 3,512 10.70%
IHOP Corporation* 2,246 6.86%
CVS 1,143 3.49%
Grotto 1,077 3.28%
Linens N things 919 2.80%
Hard Rock Cafe 704 2.14%
Paesanos 611 1.86%
Champps Americana 567 1.73%
Starbucks 516 1.57%
McCormick & Schmicks 465 1.42%
------------------ ------------------
$ 11,760 35.85%
================== ==================
* $1,897 of the IHOP Corporation revenues are related to assets which are held for sale as of December 31, 2007.
Leasing Activity for the quarter ended December 31, 2007:
Rent per sq. ft.
--------------------
# of leases Total sq. ft. New Rent Old Rent % Change
----------- ----------------- -------------------- ---------
New leases 3 5,633 $ 33.93 N/A N/A
Activity on existing leases:
Lease renewals 3 6,158 $ 30.99 $27.81 11.44%
Non-renewals 3 4,471 N/A $25.33 N/A
Cancelled leases 1 1,853 N/A $ 43 N/A
15
Lease Expirations by Year:
Number of
Expiration Leases Square Percent
Year Expiring Footage of Total
------------------------------------------------------------
2008 17 51,044 4.70%
2009 30 79,805 7.34%
2010 35 135,979 12.51%
2011 50 188,135 17.31%
2012 21 66,168 6.09%
2013 15 67,467 6.21%
2014 9 36,370 3.35%
2015 2 7,251 0.67%
2016 12 56,768 5.22%
2017 6 47,090 4.33%
2018 2 2,737 0.25%
2019 1 4,020 0.37%
2020 4 75,991 6.99%
2021 4 89,676 8.25%
2022 1 4,020 0.37%
2023 1 63,373 5.83%
2024 3 21,864 2.01%
2025 7 45,597 4.20%
2026 4 16,080 1.48%
2027 3 12,060 1.11%
2056 1 15,120 1.39%
------------------------------------------------------------
228 1,086,615
16