Exhibit 99.2
[LOGO OF AMREIT]
- --------------------------------------------------------------------------------
SUPPLEMENTAL FINANCIAL INFORMATION
DECEMBER 31, 2005
(Unaudited)
TABLE OF CONTENTS
-----------------
Page #
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Corporate Profile 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3 - 4
Consolidated Statements of Operations - Segments 5 - 6
SUMMARY OF OPERATING RESULTS
Funds From Operations 7
Dividends - All Classes of Common Shares 7
Rental Income 8
Real Estate Revenue Allocation 8
Discontinued Operations 9
Interest Expense 9
SUMMARY BALANCE SHEET INFORMATION
Common Share Data 10
Capitalization 10
DEBT INFORMATION
Outstanding Balances and Terms 11 - 12
Fixed vs. Variable Rate Debt 12
PROPERTY & Tenant Information
Property Table 13 - 14
Tenant Diversification 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 year ended December 31, 2005. 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 an established real estate company that, at its core, is a
value creator which has delivered results to our investors for 21 years. Our
mission is to build a real estate business that can realize consistent growth
year over year regardless of market cycles. We have developed three distinct
businesses that provide earnings power from multiple sources: a real estate
development and operating business, an asset advisory business and our premium
portfolio of Irreplaceable Corners(TM).
As a real estate development and operating company, we provide value through
offering an array of services to our tenants and properties, to our asset
advisory group's portfolios and to third parties. As of December 31, 2005, the
Company has over 1.5 million square feet of retail centers in various stages of
development or in the pipeline for both our advisory group and for third
parties.
Our asset advisory group broadens the Company's avenues to capital and raises
private equity for a series of merchant development funds. Through these funds,
we combine the skills of our asset advisory team with those of our real estate
development team to actively manage a blend of value-added acquisition,
redevelopment and development projects, which generate both transactional fees
and recurring management fees.
AmREIT's institutional-grade portfolio of Irreplaceable Corners, our most
recognized business, provides a foundation to our FFO growth through a steady
stream of rental income. We focus on the acquisition and development of premier
retail properties in high-traffic, densely populated high-income areas to hold
for long-term value. These properties are primarily high-end grocery anchored
and lifestyle shopping centers leased to well-known national and regional
tenants.
Since AmREIT listed its class A shares on the AMEX in July 2002, our total
assets have grown from a book value of $32 million to $315 million and equity
within our asset advisory group has grown from $15 million to $61 million.
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:
DECEMBER 31, DECEMBER 31,
2005 2004
------------ ------------
ASSETS
Real estate investments at cost
Land $ 112,784 $ 68,138
Building 127,094 88,211
Tenant improvements 7,366 4,243
------------ ------------
247,244 160,592
Less accumulated depreciation and amortization (5,493) (3,561)
------------ ------------
241,301 157,031
Real estate held for sale, net 3,569 6,326
Net investment in direct financing leases held for
investment 19,212 19,219
Intangible lease cost, net 17,761 10,628
Investment in retail partnerships and other
affiliates 2,311 1,979
------------ ------------
Net real estate investments 284,154 195,183
Cash and cash equivalents 5,915 2,960
Tenant receivables, net 3,132 1,338
Accounts receivable, net 1,807 37
Accounts receivable - related party 4,158 910
Notes receivable - related party 11,232 -
Deferred costs 1,487 1,040
Other assets 3,086 1,683
------------ ------------
TOTAL ASSETS $ 314,971 $ 203,151
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 114,687 $ 105,964
Accounts payable and other liabilities 8,232 4,830
Below market leases, net 2,940 2,504
Security deposits 651 368
------------ ------------
TOTAL LIABILITIES 126,510 113,666
------------ ------------
Minority Interest 1,176 1,115
Shareholders' Equity
Preferred Shares, $.01 par value, 10,000,000 shares
authorized, note issued - -
Class A Common shares, $.01 par value, 50,000,000
shares authorized, 6,479,278 and 3,462,767 shares
issued, respectively 65 35
Class B Common shares, $.01 par value, 3,000,000
shares authorized, 2,148,649 and 2,246,283 shares
issued, respectively 22 22
Class C Common shares, $.01 par value, 4,400,000
shares authorized, 4,119,923 and 4,079,174 shares
issued, respectively 41 41
Class D Common shares, $.01 par value, 17,000,000
shares authorized, 11,035,482 and 2,090,765 shares
issued, respectively 110 21
Capital in excess of par value 205,859 104,114
Accumulated distributions in excess of earnings (16,736) (15,038)
Deferred compensation (1,528) (770)
Cost of treasury shares, 77,741 and 9,116 Class A
shares, respectively (548) (55)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 187,285 88,370
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 314,971 $ 203,151
============ ============
2
CONSOLIDATED STATEMENTS OF OPERATIONS:
THREE MONTHS THREE MONTHS
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2005 2004
------------ ------------
Revenue:
Rental income from operating leases $ 6,816 $ 3,104
Earned income from direct financing leases 508 507
Real estate fee income 133 353
Real estate fee income - related party 1,219 135
Construction revenues 1,636 -
Construction revenues - related party 1,361 -
Securities commission income - related party 644 688
Asset management fee income - related party 128 116
Interest and other income 191 35
------------ ------------
Total revenues 12,636 4,938
------------ ------------
Expenses:
General and administrative 2,553 1,193
Property expense 2,101 630
Construction costs 2,784 -
Legal and professional 431 686
Securities commissions 476 530
Depreciation and amortization 1,879 763
------------ ------------
Total expenses 10,224 3,802
------------ ------------
Operating income 2,412 1,136
Other income (expense):
Income from merchant development funds and affiliates (27) 881
Federal income tax benefit (expense) for TRS 111 (225)
Interest expense (1,691) (1,164)
Minority interest in income of consolidated
joint ventures (20) (54)
------------ ------------
Income before discontinued operations 785 574
Income (loss) from discontinued operations 1,863 (906)
Gain on sales of real estate acquired for resale 2,351 68
------------ ------------
Income (loss) from discontinued operations 4,214 (838)
------------ ------------
Net income (loss) 4,999 (264)
Distributions paid to class B,C, and D shareholders (2,897) (1,366)
------------ ------------
Net income (loss) available to class A shareholders $ 2,102 $ (1,630)
============ ============
Net (loss) income per class A common share - basic
and diluted
Loss before discontinued operations $ (0.33) $ (0.23)
Income (loss) from discontinued operations 0.65 (0.24)
------------ ------------
Net income (loss) $ 0.32 $ (0.47)
============ ============
Weighted average class A common shares used to compute
net income (loss) per share, basic and diluted 6,446 3,431
============ ============
3
CONSOLIDATED STATEMENTS OF OPERATIONS, CONT.:
TWELVE TWELVE TWELVE
MONTHS MONTHS MONTHS
ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER
31, 2005 31, 2004 31, 2004
------------ ------------ ------------
Revenue:
Rental income from operating leases $ 20,484 $ 8,200 $ 2,609
Earned income from direct financing leases 2,030 2,029 2,016
Real estate fee income 485 409 576
Real estate fee income - related party 4,588 1,443 455
Construction revenues 2,302 - -
Construction revenues - related party 2,434 - -
Securities commission income - related party 1,163 2,742 1,497
Asset management fee income - related party 495 361 240
Interest and other income 705 82 9
------------ ------------ ------------
Total revenues 34,686 15,266 7,402
------------ ------------ ------------
Expenses:
General and administrative 6,356 4,661 3,117
Property expense 4,860 1,418 388
Construction costs 4,283 - -
Legal and professional 1,859 1,646 871
Securities commissions 864 2,081 1,130
Depreciation and amortization 6,046 1,817 522
Deferred merger costs - 1,682 915
------------ ------------ ------------
Total expenses 24,268 13,305 6,943
------------ ------------ ------------
Operating income 10,418 1,961 459
Other income (expense):
Income from merchant development funds and
other affiliates 161 1,121 312
Federal income tax (expense) benefit for TRS (379) (16) 254
Interest expense (6,412) (3,290) (2,080)
Minority interest in income of consolidated
joint ventures (241) (186) (158)
------------ ------------ ------------
Income (loss) before discontinued operations 3,547 (410) (1,213)
Income (loss) from discontinued operations 3,356 (829) 2,425
Gain on sales of real estate acquired for resale 3,223 1,827 787
------------ ------------ ------------
Income from discontinued operations 6,579 998 3,212
------------ ------------ ------------
Net income 10,126 588 1,999
Distributions paid to class B,C, and D shareholders (9,245) (4,454) (1,943)
------------ ------------ ------------
Net income (loss) available to class A shareholders $ 881 $ (3,866) $ 56
============ ============ ============
Net income (loss) per class A common share - basic
and diluted
Loss before discontinued operations $ (1.09) $ (1.50) $ (1.13)
Income from discontinued operations 1.26 0.31 1.15
------------ ------------ ------------
Net loss $ 0.17 $ (1.19) $ 0.02
============ ============ ============
Weighted average class A common shares used to compute
net income (loss) per share, basic and diluted 5,205 3,251 2,792
============ ============ ============
4
SEGMENTED STATEMENTS OF OPERATIONS:
ASSET ADVISORY
----------------------------
THREE MONTHS ENDED REAL ESTATE RETAIL
DECEMBER 31, 2005 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Rental income $ 7,324 $ - $ - $ - $ 7,324
Securities commissions - - 644 - 644
Construction revenues - 2,997 - - 2,997
Real estate fee income - 1,352 - 1,352
Other income 159 32 - 128 319
------------ ------------ ------------ ------------ ------------
Total revenue 7,483 4,381 644 128 12,636
Securities commission
expense - - 476 - 476
Professional fees 290 46 27 - 363
Depreciation and amortization 1,879 - - - 1,879
Property expense 2,051 50 - - 2,101
Construction expense - 2,784 - - 2,784
Real estate commissions - 68 - - 68
General and administrative 1,137 901 494 21 2,553
------------ ------------ ------------ ------------ ------------
Total expenses 5,357 3,849 997 21 10,224
Interest expense (1,514) (172) (5) - (1,691)
Other (expense) income (54) 174 (77) 21 64
Income from discontinued
operations 2,738 1,476 - - 4,214
------------ ------------ ------------ ------------ ------------
Net income $ 3,295 $ 2,011 $ (435) $ 128 $ 4,999
ASSET ADVISORY
----------------------------
THREE MONTHS ENDED REAL ESTATE RETAIL
DECEMBER 31, 2004 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Rental income $ 3,611 $ - $ - $ - $ 3,611
Securities commissions - - 688 - 688
Real estate fee income - 488 - - 488
Other income - 35 - 116 151
------------ ------------ ------------ ------------ ------------
Total revenue 3,611 523 688 116 4,938
Securities commission
expense - - 530 - 530
Professional fees 302 76 - - 378
Depreciation and amortization
763 - - - 763
Property expense 627 3 - - 630
Real estate commissions - 308 - - 308
General and administrative 158 636 364 35 1,193
------------ ------------ ------------ ------------ ------------
Total expenses 1,850 1,023 894 35 3,802
Interest expense (1,108) (56) - - (1,164)
Other (expense) income (51) 133 (54) 574 602
Income from discontinued
operations (968) 130 - - (838)
------------ ------------ ------------ ------------ ------------
Net (loss) income $ (366) $ (293) $ (260) $ 655 $ (264)
5
ASSET ADVISORY
----------------------------
TWELVE MONTHS ENDED REAL ESTATE RETAIL
DECEMBER 31, 2005 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Rental income $ 22,514 $ - $ - $ - $ 22,514
Securities commissions - - 1,163 - 1,163
Real estate fee income - 5,073 - - 5,073
Construction revenues - 4,736 - - 4,736
Other income 465 240 - 495 1,200
------------ ------------ ------------ ------------ ------------
Total revenue 22,979 10,049 1,163 495 34,686
Securities commission
expense - - 864 - 864
Depreciation and amortization 6,046 - - - 6,046
Property expense 4,803 57 - - 4,860
Construction costs - 4,283 - - 4,283
Professional fees 1,214 266 112 1 1,593
Real estate commissions - 266 - - 266
General and administrative 1,657 3,595 844 260 6,356
------------ ------------ ------------ ------------ ------------
Total expenses 13,720 8,467 1,820 261 24,268
Interest expense (5,816) (572) (24) - (6,412)
Other (expense) income (196) (259) (60) 56 (459)
Income from discontinued
operations 4,584 1,995 - - 6,579
------------ ------------ ------------ ------------ ------------
Net income (loss) $ 7,831 $ 2,746 $ (741) $ 290 $ 10,126
ASSET ADVISORY
----------------------------
TWELVE MONTHS ENDED REAL ESTATE RETAIL
DECEMBER 31, 2004 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL
- ----------------------------------- ------------ ------------ ------------ ------------ ------------
Rental income $ 10,229 $ - $ - $ - $ 10,229
Securities commissions - - 2,742 - 2,742
Real estate fee income - 1,852 - - 1,852
Other income 46 36 - 361 443
------------ ------------ ------------ ------------ ------------
Total revenue 10,275 1,888 2,742 361 15,266
Deferred merger expense 1,682 - - - 1,682
Securities commission
expense - - 2,081 - 2,081
Depreciation and amortization 1,817 - - - 1,817
Property expense 1,413 5 - - 1,418
Professional expense 917 105 80 - 1,102
Real estate commissions - 544 - - 544
General and administrative 929 1,951 1,680 101 4,661
------------ ------------ ------------ ------------ ------------
Total Expenses 6,758 2,605 3,841 101 13,305
Interest expense (3,233) (57) - - (3,290)
Other (expense) income (187) 594 (79) 591 919
Income from discontinued
operations (203) 1,201 - - 998
------------ ------------ ------------ ------------ ------------
Net income (loss) $ (106) $ 1,021 $ (1,178) $ 851 $ 588
6
AMREIT
SUMMARY OF OPERATING RESULTS
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
FUNDS FROM OPERATIONS:
Income (loss) before discontinued operations $ 785 $ 574 $ 3,547 $ (410)
Income from discontinued operations 4,214 (838) 6,579 998
Depreciation of real estate assets - operations 2,210 648 5,952 1,674
Depreciation of real estate assets - discontinued
operations 177 60 111 297
Adjustments for non consolidated affiliates 35 9 100 29
Gain on sale of real estate acquired for investment (2,805) (52) (3,400) (137)
Class B, C, and D common share distributions (2,897) (1,366) (9,245) (4,454)
---------- ---------- ---------- ----------
Total Funds from Operations available to
Class A Shareholders $ 1,791 $ (965) $ 3,644 $ (2,003)
========== ========== ========== ==========
Weighted average class A shares outstanding 6,446 3,431 5,205 3,251
Funds from operations per class A share $ 0.27 $ (0.28) $ 0.70 $ (0.62)
DIVIDENDS:
Class A Common share dividends per share $ 0.12 $ 0.12 $ 0.50 $ 0.48
Class B Common share dividends per share (1) $ 0.19 $ 0.19 $ 0.74 $ 0.74
Class C Common share dividends per share (2) $ 0.18 $ 0.18 $ 0.70 $ 0.70
Class D Common share dividends per share (3) $ 0.16 $ 0.16 $ 0.65 $ 0.65
(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
beginning in July 2005 on a one for one basis, or $10.18 in cash at the
holders option.
(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). The class C common shares are
callable by the Company beginning in 2006, based on the same conversion
formula (110% of invested capital).
(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 C 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 are callable by
the Company beginning in 2005, based on the same conversion formula,
prorated for the time the shares were outstanding (107.7% of invested
capital).
7
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
RENTAL AND EARNED INCOME: 2005 2004 2005 2004
- ------------------------------------------------------------ ---------- ---------- ---------- ----------
Base minimum rent $ 4,425 $ 2,348 $ 14,825 $ 6,638
Earned Income from direct financing leases 508 507 2,030 2,029
Straight line rent 93 43 319 139
Over/Under market rent 31 24 218 44
Percentage rent 71 - 154 65
Tenant reimbursements 2,196 689 4,968 1,314
---------- ---------- ---------- ----------
Total Rental and Earned Income $ 7,324 $ 3,611 $ 22,514 $ 10,229
========== ========== ========== ==========
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
REAL ESTATE OPERATING REVENUE: 2005 2004 2005 2004
- ------------------------------------------------------------ ---------- ---------- ---------- ----------
Development and construction management fees
Merchant development funds and affiliates $ 183 $ 38 $ 1,243 $ 998
Unrelated third parties 40 - 70 8
Leasing and brokerage commissions
Merchant development funds and affiliates 919 171 3,145 378
Unrelated third parties 93 353 415 401
Property management fees
Merchant development funds and affiliates 117 (74) 200 67
Unrelated third parties - - - -
---------- ---------- ---------- ----------
Total Real Estate Operating Revenue $ 1,352 $ 488 $ 5,073 $ 1,852
========== ========== ========== ==========
Percent attributable to retail partnerships
and affiliates 90% 28% 90% 78%
Percent attributable to unrelated third parties 10% 72% 10% 22%
8
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
DISCONTINUED OPERATIONS: 2005 2004 2005 2004
- ------------------------------------------------------------ ---------- ---------- ---------- ----------
Rental revenue and earned income from DFL $ 398 $ 474 $ 1,805 $ 2,095
Gain on sale of real estate held for investment 2,805 52 3,400 137
Interest and other income - - 146 936
Gain on sale of real estate held for resale - - 3,223 1,827
---------- ---------- ---------- ----------
Total revenues 3,203 526 8,574 4,995
Property expense (192) (109) (382) (355)
General and administrative (266) (4) (272) (76)
Federal income tax expense (237) 113 (340) (521)
Legal and professional (4) - (2) (2)
Depreciation and amortization (177) (60) (111) (297)
Minority interest (328) (16) (597) (182)
Interest expense (27) (56) (182) (161)
Debt prepayment penalty (109) (109) -
Impairment charge - (1,300) - (2,403)
---------- ---------- ---------- ----------
Total expenses (1,340) (1,432) (1,995) (3,997)
Income (loss) from discontinued operations $ 1,863 $ (906) $ 6,579 $ 998
========== ========== ========== ==========
Basic and diluted income (loss) from discontinued
operations per class A common share $ 0.29 $ (0.26) $ 1.26 $ 0.31
========== ========== ========== ==========
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
INTEREST EXPENSE: 2005 2004 2005 2004
- ------------------------------------------------------------ ---------- ---------- ---------- ----------
Interest paid - floating rate $ 8 $ 237 $ 626 $ 716
Interest paid - fixed rate 1,692 906 5,792 2,457
Loan cost amortization 50 45 221 165
Out-of-market debt amortization (59) (24) (227) (48)
---------- ---------- ---------- ----------
Total Interest Expense $ 1,691 $ 1,164 $ 6,412 $ 3,290
---------- ---------- ---------- ----------
9
AMREIT
SUMMARY BALANCE SHEET INFORMATION
DECEMBER 31, DECEMBER 31,
2005 2004
------------ ------------
CLASS A COMMON SHARE DATA:
Closing market price $ 6.90 $ 8.05
Dividend yield 7.24% 5.96%
90-Day average trading volume 25,095 2,659
TOTAL CAPITALIZATION:
Debt $ 114,687 $ 105,964
Class A common shares at market 44,171 27,802
Class B common shares as converted 14,826 18,083
Class C common shares as converted 45,319 44,871
Class D common shares as converted 118,852 22,518
------------ ------------
Total Capitalization $ 337,855 $ 219,238
============ ============
Debt to Total Capitalization 33.9% 48.3%
10
AMREIT
DEBT INFORMATION
AMOUNT AMOUNT
OUTSTANDING OUTSTANDING INTEREST ANNUAL DEBT MATURITY
DESCRIPTION 12-31-2005 12-31-2004 RATE SERVICE DATE
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Credit Facility (1) $ - $ 38,014 5.61% $ - 11/4/2005
------------ ------------
2005 Maturities $ - $ 38,014
MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008
------------ ------------
2008 Maturities $ 13,410 $ 13,410
Merger Notes (2) $ 760 $ 760 5.47% $ 43 7/23/2010
------------ ------------
2010 Maturities $ 760 $ 760
Sugarland IHOP $ 1,196 $ 1,233 8.25% $ 138 3/1/2011
Sugar Land Plaza 2,313 2,336 7.60% 203 11/1/2011
------------ ------------
2011 Maturities $ 3,509 $ 3,569
Albuquerque IHOP $ 692 $ 712 7.82% $ 75 4/24/2012
Baton Rouge IHOP 1,143 1,176 7.82% 124 4/24/2012
Beaverton IHOP 811 834 7.82% 88 4/16/2012
Charlottesville IHOP 576 593 7.82% 62 4/24/2012
El Paso #1934 IHOP 695 715 7.82% 75 4/16/2012
Rochester IHOP 870 894 7.82% 94 4/16/2012
Shawnee IHOP 686 706 7.82% 74 4/18/2012
5115 Buffalo Spdwy 2,761 2,789 7.58% 241 5/11/2012
Salem IHOP 567 585 7.82% 61 5/17/2012
Springfield IHOP 944 971 7.82% 102 6/21/2012
Roanoke IHOP 654 673 7.89% 71 7/26/2012
Centerville IHOP 1,145 1,176 7.89% 124 7/26/2012
Memphis #4462 IHOP 1,237 1,271 7.89% 134 7/19/2012
Alexandria IHOP 660 679 7.89% 71 7/19/2012
El Paso #1938 IHOP 826 849 7.89% 89 8/23/2012
La Verne IHOP 688 707 7.89% 74 8/23/2012
Memphis #4482 IHOP 717 737 7.89% 77 8/23/2012
Parker IHOP 772 793 7.89% 83 8/23/2012
------------ ------------
2012 Maturities $ 16,444 $ 16,861
11
AMOUNT AMOUNT
OUTSTANDING OUTSTANDING INTEREST ANNUAL DEBT MATURITY
DESCRIPTION 12-31-2005 12-31-2004 RATE SERVICE DATE
- ------------------------------ ------------ ------------ ------------ ------------ ------------
Cinco Ranch $ 8,430 $ 8,555 5.60% $ 601 7/10/2013
Plaza in the Park 17,817 18,081 5.60% 1,270 7/10/2013
------------ ------------
2013 Maturities $ 26,247 $ 26,635
Uptown Park $ 49,000 $ - 5.37% $ 2,631 6/1/2015
------------ ------------
2015 Maturities $ 49,000 $ -
Bakery Square $ 4,211 $ 4,435 8.00% $ 571 2/10/2017
------------ ------------
2017 Maturities $ 4,211 $ 4,435
------------ ------------
Total Maturities (3) $ 113,581 $ 104,631
============ ============
- ----------
(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 ($0 as of December 31, 2005) remains constant through maturity.
(2) The Merger Notes were paid off subsequent to December 31, 2005.
(3) Total maturities above are $1.1 million and $1.2 million less than total
debt as reported in our consolidated financial statements as of December
31, 2005 and 2004, respectively, due to the premium recorded on
above-market debt assumed in conjunction with certain of our property
acquisitions.
FIXED VS. VARIABLE DECEMBER 31, % OF DECEMBER 31, % OF
RATE DEBT: 2005 TOTAL 2004 TOTAL
------------ -------- ------------ --------
Variable rate $ - -% $ 38,014 35.9%
Fixed rate 114,687 100.0% 67,950 64.1%
------------ ------------
$ 114,687 $ 105,964
------------ ------------
12
AMREIT
PROPERTY & Tenant Information
ANNUALIZED
BASE RENT AS
MULTI-TENANT DATE OF DECEMBER %
SHOPPING CENTERS MAJOR TENANTS CITY STATE ACQUIRED GLA 31, 2005 LEASED
- --------------------- ----------------------- ------------- ----- ------------- -------- ------------ ------
Uptown Park Ann Taylor, McCormick & Houston TX 06/01/05 169,110 $ 4,067,373 85%
Schmick's
Southbank - Riverwalk Hard Rock Cafe San Antonio TX 09/30/05 46,673 $ 1,351,495 96%
MacArthur Park Kroger Dallas TX 12/04 & 12/05 237,381 3,982,955 98%
Plaza in the Park Kroger Houston TX 07/01/04 139,971 2,529,012 97%
Cinco Ranch Kroger Houston TX 07/01/04 97,297 1,245,833 100%
Bakery Square Walgreens & Houston TX 07/21/04 34,614 849,460 100%
Bank of America
Uptown Plaza CVS/pharmacy Houston TX 12/10/03 28,000 1,236,646 100%
Woodlands Plaza FedEx/Kinkos & The Woodlands TX 06/03/98 20,018 373,317 100%
Rug Gallery
Sugarland Plaza Mattress Giant Sugarland TX 07/01/98 16,750 349,545 100%
Terrace Shops Starbucks Houston TX 12/15/03 16,395 385,342 100%
Baptist Memorial Baptist Memorial & Auto Memphis TN 07/23/02 15,000 222,643 100%
Medical Plaza Zone
Courtyard at Post Oak Verizon Wireless Houston TX 06/15/04 13,597 477,361 100%
San Felipe and
Winrock (1) (2) (1) (2) Houston TX 11/17/03 8,400 (1) (1)
-------- ------------ ------
Multi-Tenant
Shopping Centers
Total 843,211 17,070,982 97%
ANNUALIZED
BASE RENT AS
DATE OF DECEMBER %
SINGLE TENANT (GROUND LEASES) CITY STATE ACQUIRED GLA 31, 2005 LEASED
- ----------------------------- -------------- ----- ------------- -------- ------------ ------
CVS Corporation Houston TX 01/10/03 13,824 $ 327,167 100%
Darden Restaurants Peachtree City GA 12/18/98 6,867 79,366 100%
Carlson Restaurants Hanover MD 09/16/03 6,802 150,421 100%
Citibank (1) San Antonio TX 12/17/04 4,439 (6) 100%
Comerica Bank (1) Houston TX 04/30/04 4,277 (6) 100%
Washington Mutual Houston TX 12/11/96 3,685 98,160 100%
Washington Mutual The Woodlands TX 09/23/96 3,685 61,060 100%
-------- ------------ ------
Single Tenant (Ground Leases) Total 43,579 716,174 100%
13
ANNUALIZED
BASE RENT AS
DATE OF DECEMBER %
SINGLE TENANT (FEE SIMPLE) CITY STATE ACQUIRED GLA 31, 2005 LEASED
- ----------------------------- -------------- ------- ------------- -------- ------------ ------
Energy Wellness Sugarland TX 07/23/02 15,000 187,857 100%
Golden Corral Houston TX 07/23/02 12,000 182,994 100%
Golden Corral Humble TX 07/23/02 12,000 181,688 100%
Carlson Restaurants Houston TX 07/23/02 8,500 200,000 100%
IHOP Corporation Sugarland TX 09/22/99 4,020 188,664 100%
IHOP Corporation(5) Centerville UT 07/25/02 4,020 161,707 100%
IHOP Corporation (5) Memphis TN 08/23/02 4,020 177,780 100%
IHOP Corporation Topeka KS 09/30/99 4,020 157,892 100%
AFC, Inc. Atlanta GA 07/23/02 2,583 119,279 100%
Advance Auto (1)(2)(3)(4) Various Various Various 21,000 107,414 (1)
-------- ------------ ------
Single Tenant (Fee Simple) Total 87,163 1,665,275 100%
ANNUALIZED
BASE RENT AS
DATE OF DECEMBER %
SINGLE TENANT (LEASEHOLD) CITY STATE ACQUIRED GLA 31, 2005 LEASED
- ----------------------------- -------------- ------- ------------- --------- ------------ ------
IHOP Corporation (5) Various Various Various 60,300 $ 1,562,922 100%
--------- ------------ ------
Company Total GLA/% Leased 1,034,253 $ 21,015,353 96%
- ----------
(1) Under Development (GLA represents proposed leaseable 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, 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 Corporation,
one of our affiliated retail partnerships, and 1.4% of which is owned by
unaffiliated third parties.
(6) These properties are 100% leased; however, rent does not commence until
first quarter of 2006.
14
Top 10 Tenants by revenue concentration for the twelve months ended December 31,
2005:
% OF TOTAL
RENTAL OPERATING
TENANT INCOME REVENUE
- ----------------------------- ------------ ------------
Kroger $ 2,899 8.36%
IHOP 2,249 6.48%
CVS/pharmacy 1,060 3.06%
Linens 'N Things 716 2.06%
Barnes & Noble 466 1.34%
Landry's 445 1.28%
Golden Corral Corporation 432 1.25%
Hallmark 428 1.23%
Carlson Restaurants Worldwide 350 1.01%
Champps Americana 333 0.96%
------------ ------------
Total $ 9,378 27.04%
LEASING ACTIVITY FOR THE QUARTER ENDED DECEMBER 31, 2005:
RENT PER SQ. FT.
# OF TOTAL -----------------------
LEASES SQ. FT. NEW RENT OLD RENT % CHANGE
---------- ---------- ---------- ---------- ----------
New leases 2 4,126 28.97 N/A N/A
Expired/ cancelled leases:
Lease renewals 1 1,720 18.50 18.00 2.78%
Non-renewals 1 4,512 N/A 22.00 N/A
Cancelled leases 2 4,418 N/A 27.72 N/A
15
LEASE EXPIRATIONS BY YEAR:
NUMBER
OF LEASES SQUARE PERCENT
EXPIRATION YEAR EXPIRING FOOTAGE OF TOTAL
- -------------------- ------------ ------------ ------------
2006 ............... 13 30,747 3.26%
2007 ............... 18 49,769 5.27%
2008 ............... 23 67,199 7.12%
2009 ............... 33 94,467 10.01%
2010 ............... 34 129,419 13.71%
2011 ............... 38 166,337 17.62%
2012 ............... 6 21,851 2.31%
2013 ............... 6 25,373 2.69%
2014 ............... 8 28,504 3.02%
2015 ............... - - -
2016 ............... 1 5,969 0.63%
2017 ............... - - -
2018 ............... - - -
2019 ............... 1 4,020 0.43%
2020 ............... 4 75,991 8.05%
2021 ............... 3 79,806 8.45%
2022 ............... 1 4,020 0.43%
2023 ............... 1 63,373 6.71%
2024 ............... 3 21,864 2.32%
2025 ............... 6 32,100 3.40%
2026 ............... 4 16,080 1.70%
2027 ............... 3 12,060 1.28%
2056 ............... 1 15,120 1.60%
------------ ------------ ------------
Totals 207 944,069 100.00%
16