Exhibit 99.2
AmREIT
- --------------------------------------------------------------------------------
Supplemental Financial Information
March 31, 2008
(Unaudited)
Table of Contents Page #
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Corporate Profile 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Consolidated Statements of Operations - Segments 4 - 5
Summary of Operating Results
Funds From Operations 6
Dividends - All Classes of Common Shares 6
Rental and Earned Income 7
Real Estate Operating Revenue 7
Discontinued Operations 8
Interest Expense 8
Summary Balance Sheet Information
Common Share Data 9
Capitalization 9
Debt Information
Outstanding Balances and Terms 10
Fixed vs. Variable Rate Debt 11
Property & Tenant Information
Property Table 12
Tenant Concentration 13
Leasing Activity Report 13
Lease Expiration Schedule 14
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 months ended March 31, 2008. 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:
March 31, December 31,
2008 2007
-------------- --------------
ASSETS
Real estate investments at cost:
Land $ 130,598 $ 130,563
Buildings 141,413 141,045
Tenant improvements 10,072 10,105
-------------- --------------
282,083 281,713
Less accumulated depreciation and amortization (16,858) (15,626)
-------------- --------------
265,225 266,087
Real estate held for sale and
Investment in direct financing leases held for
sale, net 22,385 22,438
Net investment in direct financing leases held for
investment 2,060 2,058
Intangible lease cost, net 12,407 13,096
Investment in merchant development funds and other
affiliates 15,305 10,514
-------------- --------------
Net real estate investments 317,382 314,193
Cash and cash equivalents 468 1,221
Tenant receivables, net 4,782 4,398
Accounts receivable, net 1,485 1,251
Accounts receivable - related party 4,391 5,386
Notes receivable - related party 8,819 10,442
Deferred costs 2,390 2,472
Other assets 4,383 4,394
-------------- --------------
TOTAL ASSETS $ 344,100 $ 343,757
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 173,905 $ 168,560
Notes payable, held for sale 12,692 12,811
Accounts payable and other liabilities 6,145 7,699
Below market leases, net 3,266 3,401
Security deposits 680 674
-------------- --------------
TOTAL LIABILITIES 196,688 193,145
-------------- --------------
Minority interest 1,185 1,179
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, 6,634,489 and 6,626,559 shares
issued, respectively 66 66
Class C common shares, $.01 par value, 4,400,000
shares authorized, 4,154,691 and 4,143,971 shares
issued and outstanding, respectively 42 41
Class D common shares, $.01 par value, 17,000,000
shares authorized, 11,039,914 and 11,045,763 shares
issued and outstanding, respectively 110 110
Capital in excess of par value 185,534 185,165
Accumulated distributions in excess of earnings (35,639) (33,365)
Cost of treasury shares, 337,308 and 292,238 Class A
shares, respectively (3,886) (2,584)
-------------- --------------
TOTAL SHAREHOLDERS' EQUITY 146,227 149,433
-------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 344,100 $ 343,757
============== ==============
2
Consolidated Statements of Operations:
Three months ended March 31,
2008 2007
------------ ------------
Revenues:
Rental income from operating leases $ 7,673 $ 7,054
Earned income from direct financing leases 60 59
Real estate fee income 170 694
Real estate fee income - related party 1,432 713
Construction revenues 432 97
Construction revenues - related party 904 876
Securities commission income - related party 525 993
Asset management fee income - related party 376 284
------------ ------------
Total revenues 11,572 10,770
------------ ------------
Expenses:
General and administrative 2,423 2,153
Property expense 1,995 1,728
Construction costs 1,121 861
Legal and professional 443 292
Real estate commissions 37 421
Securities commissions 485 829
Depreciation and amortization 1,931 1,941
------------ ------------
Total expenses 8,435 8,225
------------ ------------
Operating income 3,137 2,545
Other income (expense):
Interest and other income - related party 274 244
Income from merchant development funds and other
affiliates (143) (12)
Federal income tax (expense) benefit for taxable
REIT subsidiary 71 148
Interest expense (2,431) (2,090)
Minority interest in income of consolidated joint
ventures 17 8
------------ ------------
Income before discontinued operations 925 843
Income from discontinued operations, net of taxes 72 160
Gain on sales of real estate acquired for resale, net
of taxes - -
------------ ------------
Income from discontinued operations 72 160
------------ ------------
Net income 997 1,003
Distributions paid to class B, C and D shareholders (2,498) (2,705)
------------ ------------
Net loss available to class A shareholders $ (1,501) $ (1,702)
============ ============
Net loss per class A common share - basic and diluted
Loss before discontinued operations $ (0.25) $ (0.29)
Income from discontinued operations $ 0.01 $ 0.03
------------ ------------
Net loss $ (0.24) $ (0.27)
============ ============
Weighted average class A common shares used to
compute net loss per share, basic and diluted 6,216 6,320
============ ============
3
Segmented Statements of Operations:
Asset Advisory
------------------------
For the three months Merchant
ended March 31, 2008 Real Estate Development
($ in 000's) Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 7,733 $ - $ - $ - $ 7,733
Real estate fee income 58 1,473 71 - 1,602
Construction revenues - 1,336 - - 1,336
Securities commission income - - 525 - 525
Asset management fee income - - - 376 376
----------- ----------- ----------- ----------- -----------
Total revenue 7,791 2,809 596 376 11,572
General and administrative 312 1,565 506 40 2,423
Property expense 1,975 20 - 1,995
Construction costs - 1,121 - - 1,121
Legal and professional 320 37 86 443
Real estate commissions - 37 - - 37
Securities commissions - - 485 - 485
Depreciation and amortization 1,930 1 - - 1,931
----------- ----------- ----------- ----------- -----------
Total expenses 4,537 2,781 1,077 40 8,435
Interest expense (2,153) (28) (144) (106) (2,431)
Other income/(expense) 164 3 72 (20) 219
Income from discontinued operations 65 7 - - 72
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 1,330 $ 10 $ (553) $ 210 $ 997
----------- ----------- ----------- ----------- -----------
4
Asset Advisory
------------------------
For the three months Merchant
ended March 31, 2007 Real Estate Development
($ in 000's) Portfolio Operations Securities Funds Total
----------- ----------- ----------- ----------- -----------
Rental income $ 7,113 $ - $ - $ - $ 7,113
Real estate fee income - 1,407 - - 1,407
Construction revenues - 973 - - 973
Securities commission income - - 993 - 993
Asset management fee income - - - 284 284
----------- ----------- ----------- ----------- -----------
Total revenue 7,113 2,380 993 284 10,770
General and administrative 388 1,215 488 62 2,153
Property expense 1,693 35 - 1,728
Construction costs - 861 - - 861
Legal and professional 234 47 11 - 292
Real estate commissions - 421 - - 421
Securities commissions - - 829 - 829
Depreciation and amortization 1,941 - - - 1,941
----------- ----------- ----------- ----------- -----------
Total expenses 4,256 2,579 1,328 62 8,225
Interest expense (1,962) (125) (3) - (2,090)
Other income/ (expense) 232 135 118 (97) 388
Income (loss) from discontinued
operations 151 9 - - 160
----------- ----------- ----------- ----------- -----------
Net income (loss) $ 1,278 $ (180) $ (220) $ 125 $ 1,003
----------- ----------- ----------- ----------- -----------
5
AmREIT
Summary of Operating Results
Three Months Ended
March 31,
----------------------
Funds From Operations: 2008 2007
---------- ----------
Income - before discontinued operations 925 843
Income - from discontinued operations 72 160
Plus depreciation of real estate assets - from
operations 1,931 1,941
Plus depreciation of real estate assets - from
discontinued operations - 3
Adjustments for nonconsolidated affiliates 294 17
Less gain on sale of real estate acquired for
investment -
Less class B, C & D distributions (2,498) (2,705)
---------- ----------
Total Funds From Operations available to class A
shareholders 724 259
========== ==========
Weighted average Class A shares outstanding 6,216 6,320
========== ==========
Funds from operations per Class A share $ 0.12 $ 0.04
Dividends:
Class A Common share dividends per share $ 0.12 $ 0.12
Class B Common share dividends per share (1) $ - $ 0.19
Class C Common share dividends per share (2) $ 0.17 $ 0.17
Class D Common share dividends per share (3) $ 0.16 $ 0.16
(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).
6
Three Months Ended
March 31,
-----------------------
Rental and Earned Income: 2008 2007
---------- ----------
Base minimum rent $ 5,556 $ 5,201
Earned income from direct financing lease 60 59
Straight line rent 62 148
Over/Under market rent 47 31
Percentage rent 1 (12)
Tenant reimbursements 2,007 1,687
Lease termination fees 0 -
---------- ----------
Total Rental and Earned Income $ 7,733 $ 7,113
========== ==========
Three Months Ended
March 31,
-----------------------
Real Estate Operating Revenue: 2008 2007
---------- ----------
Development and construction management fees
Merchant development funds and affiliates $ 41 $ 408
Unrelated third parties 65 66
Leasing and brokerage commissions
Merchant development funds and affiliates 1,100 98
Unrelated third parties 106 628
Property management fees
Merchant development funds and affiliates 290 207
Unrelated third parties - -
---------- ----------
Total Real Estate Operating Revenue $ 1,602 $ 1,407
========== ==========
Percent attributable to merchant development
funds and affiliates 89% 51%
Percent attributable to unrelated third
parties 11% 49%
7
Three Months Ended
-----------------------
Discontinued Operations March 31,
-----------------------
2008 2007
---- ----
Rental revenue $ 71 $ 52
Earned income from DFL 444 448
Gain on sale of real estate held for investment - -
Gain on sale of real estate held for resale - -
---------- ----------
Total revenues 515 500
---------- ----------
Property expense 71 (6)
Other general and administrative - -
Federal income tax expense (benefit) 8 8
Legal and professional 27 5
Depreciation and amortization - 3
Minority interest 48 49
Interest expense 289 281
---------- ----------
Total expenses 443 340
---------- ----------
Income from discontinued operations 72 160
Basic and diluted income from discontinued
operations per class A common share $ 0.01 $ 0.03
Three Months Ended
March 31,
-----------------------
Interest Expense: 2008 2007
---- ----
Interest paid - floating rate $ 416 $ 357
Interest paid - fixed rate 1,991 1,725
Loan cost amortization 83 67
Out-of-market debt amortization (59) (59)
---------- ----------
Total Interest Expense $ 2,431 $ 2,090
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8
AmREIT
Summary Balance Sheet Information
March 31, December 31,
2008 2007
------------ ------------
Class A Common Share Data:
Closing market price $ 7.15 $ 7.16
Dividend yield 6.99% 6.98%
90-day average trading volume 11,364 9,866
Total Capitalization:
Debt $ 186,597 * $ 181,371
Class A common shares at market 45,025 45,354
Class C common shares as converted 45,702 45,584
Class D common shares as converted 118,900 118,963
------------ ------------
Total Capitalization $ 396,223 $ 391,272
============ ============
Debt to Total Capitalization 47.1% 46.4%
* Includes debt associated with assets held for sale in the amount of $12,692 as
of March 31,2008
9
AmREIT
Debt Information
Amount Amount
Outstanding Outstanding Annual Debt
Description 3-31-2008 12-31-2007 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 $ 36,054 $ 30,439 3.92% $ 1,413 10/30/2009
-------------------------
2009 Maturities 36,054 30,439
Sugarland IHOP $ 1,099 $ 1,110 8.25% $ 138 3/1/2011
Sugar Land Plaza 2,250 2,258 7.60% 203 11/1/2011
-------------------------
2011 Maturities $ 3,349 $ 3,368
AAA CTL Notes (3) $ 12,692 $ 12,811 7.72% - 7.89% $ 1,110 04/2012-08/2012
5115 Buffalo Spdwy. 2,690 2,699 7.58% 241 5/11/2012
-------------------------
2012 Maturities $ 15,382 $ 15,510
Cinco Ranch $ 8,122 $ 8,158 5.60% $ 601 7/10/2013
Plaza in the Park 17,166 17,243 5.60% 1,270 7/10/2013
-------------------------
2013 Maturities $ 25,288 $ 25,401
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 $ 3,634 $ 3,704 8.00% $ 571 2/10/2017
Uptown Plaza Dallas $ 19,900 $ 19,900 5.64% $ 783 4/1/2017
-------------------------
2017 Maturities $ 23,534 $ 23,604
-------------------------
Total Maturities (2) $ 186,017 $ 180,732
=========================
(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 March 31, 2008 remain constant through maturity.
(2) Total maturities above are $580 thousand and $639 thousand less than total
debt as reported in our consolidated financial statements as of March 31, 2008
and December 31, 2007, 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 March 31, 2008 and December
31, 2007.
10
Fixed vs. Variable Rate Debt:
March 31, % of December 31, % of
2008 Total 2007 Total
---------------------------------------------
Variable rate $ 36,053 19.3% $ 30,439 6.1%
Fixed rate * 150,544 80.7% 150,932 93.9%
----------- ------ ----------- ------
$ 186,597 100.0% $ 181,371 100.0%
* Includes debt of $12,692 associated with assets held for sale as of March 31,
2008
11
AmREIT
Property & Tenant Information
Grocery Anchored Shopping Centers City State GLA ABR % Leased
- ----------------------------------------------------------------------------------------------------------------
1 AmREIT C-Ranch LP Houston TX 97,297 $ 1,237,728 99%
2 MacArthur Park Irving TX 237,381 3,840,879 97%
3 Plaza in the Park Houston TX 144,062 2,678,124 97%
================================================================================================================
3 Grocery Anchored Shopping Centers Total 478,740 $ 7,756,731
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 16,395 432,070 89%
5 Uptown Plaza (including CVS) Houston TX 28,000 1,237,769 100%
6 Uptown Park Houston TX 169,112 5,216,036 100%
7 Woodlands Plaza The Woodlands TX 20,018 373,317 100%
8 Southbank - Riverwalk San Antonio TX 46,673 1,536,786 100%
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 $ 12,288,673
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 8,500 215,000 100%
9 Golden Corral Houston TX 12,000 210,450 100%
10 Golden Corral Humble TX 12,000 181,688 100%
11 IHOP Corporation #1483 Sugarland TX 4,020 190,116 100%
12 IHOP Corporation #1737 (5) Centerville UT 4,020 163,812 100%
13 IHOP Corporation #4462 (5) Memphis TN 4,020 179,436 100%
14 IHOP Corporation #5318 Topeka KS 4,020 159,336 100%
================================================================================================================
14 Single Tenant (Fee Simple) Total 75,589 $ 1,746,000
Single Tenant (Leasehold) City State GLA ABR % Leased
- ----------------------------------------------------------------------------------------------------------------
15 Single Tenant (Leasehold) Total (5) Various Various 60,300 $ 1,541,172 100%
Company Total Sq. Ft. 1,114,279 $ 24,870,554
12
(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 three months ended March 31, 2008:
Three months ended
March 31,
----------------------------------
Tenant 2008 2007
- ------ ---- ----
Kroger $ 529 $ 585
IHOP Corporation* 499 562
CVS 264 242
Landry's 176 261
Linens N things 171 120
Hard Rock Cafe 170 178
Champps Americana 143 138
Paesanos 119 154
TGI Fridays 111 99
Golden Corral 98 91
------------ ------------
$ 2,280 $ 2,430
============ ============
* $472 of the IHOP Corporation revenues are related to assets which are held for
sale as of March 31, 2008.
Leasing Activity for the quarter ended March 31, 2008:
Rent per sq.ft.
--------------------------
# of leases Total sq.ft. New Rent Old Rent % Change
------------ ------------ -------------------------- ------------
New leases 2 2,800 $24.00 N/A
Activity on existing leases:
Lease renewals 2 2,841 $35.38 $32.51 8.84%
Non-renewals 2 3,078 N/A $37.46 N/A
Cancelled leases 1 1,395 N/A $24.00 N/A
13
Lease Expirations by Year:
Number of
Expiration Leases Square Percent
Year Expiring Footage of Total
--------------------------------------------------------------
2008 9 19,876 1.88%
2009 30 79,805 7.54%
2010 35 135,979 12.84%
2011 50 188,135 17.77%
2012 21 66,168 6.25%
2013 17 70,720 6.68%
2014 9 36,370 3.44%
2015 2 7,251 0.68%
2016 12 56,768 5.36%
2017 7 47,090 4.45%
2018 2 2,737 0.26%
2019 1 4,020 0.38%
2020 4 75,991 7.18%
2021 4 89,676 8.47%
2022 1 4,020 0.38%
2023 1 63,373 5.99%
2024 3 21,864 2.07%
2025 7 45,597 4.31%
2026 4 16,080 1.52%
2027 3 12,060 1.14%
2056 1 15,120 1.43%
------------------------------------------------------------
223 1,058,700
14