Attached files
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| EX-99.1 - PRESS RELEASE DATED AUGUST 8, 2012 - AmREIT, Inc. | amreit123243_ex99-1.htm |
| 8-K - FORM 8-K DATED AUGUST 8, 2012 - AmREIT, Inc. | amreit123243_8k.htm |
Exhibit 99.2
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Supplemental Financial Information |
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June 30, 2012 |
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(Unaudited) |
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Table of Contents |
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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 six months ended June 30, 2012. 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, Inc’s (AmREIT) 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.
We are a full service, vertically integrated and self-administered REIT that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. We seek to own properties in major cities in the United States that contain submarkets with characteristics comparable to our existing markets. Our shopping centers are often anchored by strong national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. Our remaining tenants consist primarily of specialty retailers and local restaurants. We have elected to be taxed as a REIT for federal income tax purposes.
Our investment focus is predominantly concentrated in the affluent, high-growth submarkets of Houston, Dallas, San Antonio, Austin and Atlanta (collectively our Core Markets), which represent five of the top population and job growth markets in the United States. We believe these metropolitan areas are compelling real estate markets given their favorable demographics, robust job growth and large and diverse economies. The primary economic drivers in these markets are transport and utilities (including energy), government (including defense), education and healthcare, professional and business services, and leisure and hospitality. We intend to continue to acquire additional properties within these Core Markets. Our targeted properties will include premier retail frontage locations in high-traffic, highly populated, affluent areas with high barriers to entry.
As of June 30, 2012, our portfolio consisted of 29 wholly-owned properties with approximately 1.2 million square feet of GLA, which were 95.8% leased with a weighted average remaining lease term of 5.1 years. Our neighborhood and community shopping centers accounted for 90.7% of our annualized base rent as of June 30, 2012, with our single-tenant retail properties accounting for the remaining 9.3% of our annualized base rent. In addition to our portfolio, we control and manage an additional 18 properties with approximately 2.2 million square feet through our Advised Funds with an undepreciated book value of over $454 million as of June 30, 2012
Corporate Office:
8 Greenway Plaza, Suite 1000
Houston, Texas 77046
(800) 888-4400
(713) 850-0498 (fax)
www.amreit.com
1
AMREIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except
share data)
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June 30, |
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December 31, |
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(unaudited) |
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ASSETS |
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Real estate investments at cost: |
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Land |
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$ |
138,404 |
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$ |
138,404 |
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Buildings |
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172,581 |
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172,146 |
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Tenant improvements |
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16,078 |
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14,483 |
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327,063 |
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325,033 |
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Less accumulated depreciation and amortization |
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(36,702 |
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(33,865 |
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290,361 |
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291,168 |
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Acquired lease intangibles, net |
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9,025 |
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10,139 |
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Investments in Advised Funds |
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8,162 |
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8,322 |
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Net real estate investments |
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307,548 |
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309,629 |
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Cash and cash equivalents |
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1,104 |
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1,050 |
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Tenant and accounts receivable, net |
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3,988 |
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4,340 |
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Accounts receivable - related party, net |
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1,223 |
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645 |
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Notes receivable, net |
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2,614 |
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3,412 |
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Notes receivable - related party, net |
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8,276 |
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6,513 |
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Deferred costs, net |
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3,017 |
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2,887 |
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Other assets |
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3,187 |
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2,134 |
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TOTAL ASSETS |
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$ |
330,957 |
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$ |
330,610 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities: |
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Notes payable |
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$ |
204,953 |
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$ |
201,658 |
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Accounts payable and other liabilities |
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6,926 |
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8,007 |
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Acquired below-market lease intangibles, net |
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1,871 |
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2,021 |
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TOTAL LIABILITIES |
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213,750 |
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211,686 |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued |
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- |
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- |
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Class A common stock, $0.01 par value, 1,000,000,000 shares authorized, 11,653,140 and 11,598,959 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively |
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117 |
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116 |
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Capital in excess of par value |
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192,246 |
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192,005 |
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Accumulated distributions in excess of earnings |
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(75,156 |
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(73,197 |
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TOTAL STOCKHOLDERS’ EQUITY |
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117,207 |
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118,924 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
330,957 |
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$ |
330,610 |
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See Notes to Consolidated Financial Statements.
2
AMREIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data)
(unaudited)
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Three months ended June 30, |
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Six months ended June 30, |
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2012 |
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2011 |
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2012 |
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2011 |
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Revenues: |
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Rental income from operating leases |
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$ |
8,976 |
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$ |
7,846 |
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$ |
17,905 |
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$ |
15,296 |
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Advisory services income - related party |
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885 |
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1,112 |
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2,016 |
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2,113 |
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Lease termination fee income |
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- |
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109 |
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- |
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109 |
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Total revenues |
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9,861 |
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9,067 |
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19,921 |
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17,518 |
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Expenses: |
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General and administrative |
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1,558 |
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1,426 |
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3,042 |
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2,710 |
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Property expense |
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2,199 |
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1,950 |
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4,412 |
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3,677 |
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Legal and professional |
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229 |
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267 |
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450 |
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522 |
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Real estate commissions |
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53 |
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157 |
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139 |
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186 |
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Acquisition costs |
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- |
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75 |
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- |
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115 |
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Depreciation and amortization |
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2,120 |
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2,308 |
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4,347 |
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3,948 |
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Impairment recovery - notes receivable |
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(229 |
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- |
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(229 |
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- |
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Total expenses |
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5,930 |
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6,183 |
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12,161 |
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11,158 |
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Operating income |
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3,931 |
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2,884 |
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7,760 |
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6,360 |
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Other income (expense): |
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Interest and other income |
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135 |
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129 |
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237 |
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257 |
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Interest and other income - related party |
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85 |
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31 |
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157 |
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61 |
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Loss from Advised Funds |
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(66 |
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(146 |
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(102 |
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(250 |
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Income tax expense |
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(44 |
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(3 |
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(120 |
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(54 |
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Interest expense |
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(2,595 |
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(2,415 |
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(5,229 |
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(4,618 |
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Income from continuing operations |
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1,446 |
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480 |
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2,703 |
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1,756 |
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Income from discontinued operations, net of taxes |
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- |
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86 |
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- |
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146 |
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Net income |
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$ |
1,446 |
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$ |
566 |
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$ |
2,703 |
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$ |
1,902 |
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Net income per share of common stock - basic and diluted |
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Income before discontinued operations |
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$ |
0.12 |
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$ |
0.04 |
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$ |
0.23 |
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$ |
0.15 |
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Income from discontinued operations |
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$ |
- |
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$ |
0.01 |
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$ |
- |
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$ |
0.01 |
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Net income |
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$ |
0.12 |
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$ |
0.05 |
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$ |
0.23 |
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$ |
0.16 |
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Weighted average shares of common stock used to compute net income per share, basic and diluted |
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11,420 |
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11,386 |
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11,406 |
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11,375 |
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Dividends per share of common stock |
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$ |
0.20 |
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$ |
0.20 |
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$ |
0.40 |
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$ |
0.40 |
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See Notes to Consolidated Financial Statements.
3
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Three months ended June 30, |
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Six months ended June 30, |
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2012 |
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2011(1) |
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2012 |
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2011(1) |
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Net income(2) |
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$ |
1,446 |
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$ |
566 |
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$ |
2,703 |
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$ |
1,902 |
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Add: |
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Depreciation of real estate assets - from operations |
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2,106 |
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2,289 |
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4,319 |
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3,904 |
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Depreciation of real estate assets - from discontinued operations |
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- |
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7 |
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- |
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14 |
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Depreciation of real estate assets for nonconsolidated affiliates |
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156 |
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154 |
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313 |
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306 |
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Total FFO available to stockholders |
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$ |
3,708 |
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$ |
3,016 |
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$ |
7,335 |
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$ |
6,126 |
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Weighted average shares of common stock outstanding(3) |
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11,653 |
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11,594 |
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11,630 |
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11,582 |
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Total FFO per share |
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$ |
0.32 |
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$ |
0.26 |
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$ |
0.63 |
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$ |
0.53 |
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Summary of capital expenditures |
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Non-maintenance capital expenditures |
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Tenant improvements |
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$ |
1,175 |
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$ |
506 |
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$ |
1,799 |
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$ |
752 |
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Leasing commissions |
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211 |
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101 |
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352 |
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234 |
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Building improvements |
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43 |
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68 |
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405 |
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114 |
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Maintenance capital expenditures |
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30 |
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- |
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30 |
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- |
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Total capital expenditures |
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$ |
1,459 |
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$ |
675 |
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$ |
2,586 |
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$ |
1,100 |
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Dividends and payout ratios |
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Regular dividends declared |
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$ |
2,328 |
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$ |
2,319 |
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$ |
4,662 |
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$ |
4,638 |
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Dividend payout ratio as a percentage of FFO |
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63 |
% |
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77 |
% |
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64 |
% |
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76 |
% |
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(1) |
FFO is a supplemental measure of real estate companies’ operating performances. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and impairment charges on properties held for investment, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. NAREIT recommends that extraordinary items not be considered in arriving at FFO. In October 2011, NAREIT clarified its definition of FFO to exclude impairment charges on real estate held for investment when the SEC stated it would no longer prohibit their exclusion. NAREIT developed FFO as a relative measure of performance and liquidity of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. However, FFO does not represent cash flows from operating activities in accordance with GAAP (which, unlike FFO, generally reflects all cash effects of transactions and other events in the determination of net income); should not be considered an alternative to net income as an indication of our performance; and is not necessarily indicative of cash flow as a measure of liquidity or ability to pay dividends. We consider FFO a meaningful, additional measure of operating performance primarily because it excludes the assumption that the value of real estate assets diminishes predictably over time, and because industry analysts have accepted it as a performance measure. Comparison of our presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs. |
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(2) |
Net income for the three and six months ended June 30, 2011, includes acquisition costs of $75 and $115, respectively, incurred in connection with the acquisition of operating properties. |
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(3) |
Weighted average shares of common stock outstanding reflects the weighted average of all shares of common stock during the period including our non-vested shares. Weighted average shares of common stock outstanding as computed under GAAP pursuant to the “two class method” includes only vested shares of common stock. |
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4
Comparison of the three months ended June 30, 2012, to the three months ended June 30, 2011
Below are the results of operations for the three months ended June 30, 2012 and 2011 (in thousands, except for per share amounts, percentages and number of properties). In the comparative tables presented below, increases in revenues/income or decreases in expenses (favorable variances) are shown without parentheses while decreases in revenues/income or increases in expenses (unfavorable variances) are shown with parentheses. For purposes of comparing our results of operations for the periods presented below, all of our properties in the “same store” reporting group were owned since April 1, 2011.
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Three months ended June 30, |
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2012 |
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2011 |
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Change $ |
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Change % |
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Same store properties (27 properties) |
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Rental income (1) |
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$ |
6,193 |
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$ |
5,987 |
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$ |
206 |
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|
3.4 |
% |
|
Recovery income (1) |
|
|
2,027 |
|
|
|
2,000 |
|
|
|
27 |
|
|
|
1.4 |
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses |
|
|
2,027 |
|
|
2,084 |
|
|
57 |
|
|
2.7 |
% |
|||
|
Same store net operating income |
|
|
6,193 |
|
|
5,903 |
|
|
290 |
|
|
4.9 |
% |
|||
|
|
||||||||||||||||
|
Non-same store properties (2 properties) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income (1) |
|
|
509 |
|
|
|
101 |
|
|
|
408 |
|
|
|
* |
|
|
Recovery income (1) |
|
|
159 |
|
|
|
27 |
|
|
|
132 |
|
|
|
* |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses |
|
|
195 |
|
|
27 |
|
|
(168 |
) |
|
* |
|
|||
|
Non-same store net operating income |
|
|
473 |
|
|
101 |
|
|
372 |
|
|
* |
|
|||
|
Total net operating income |
|
|
6,666 |
|
|
|
6,004 |
|
|
|
662 |
|
|
|
11.0 |
% |
|
|
||||||||||||||||
|
Other revenues (see further detail below): |
|
|
1,193 |
|
|
|
1,112 |
|
|
|
81 |
|
|
|
7.3 |
% |
|
|
||||||||||||||||
|
Less other expenses (see further detail below): |
|
|
6,413 |
|
|
6,636 |
|
|
223 |
|
|
3.4 |
% |
|||
|
|
||||||||||||||||
|
Income (loss) from continuing operations |
|
|
1,446 |
|
|
|
480 |
|
|
|
966 |
|
|
|
201.3 |
% |
|
Income from discontinued operations |
|
|
- |
|
|
86 |
|
|
(86 |
) |
|
(100.0 |
)% |
|||
|
Net income |
|
$ |
1,446 |
|
$ |
566 |
|
$ |
880 |
|
|
155.5 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations |
|
$ |
3,708 |
|
|
$ |
3,016 |
|
|
$ |
692 |
|
|
|
22.9 |
% |
|
Number of properties at end of period |
|
|
29 |
|
|
|
30 |
|
|
|
n/a |
|
|
|
* |
|
|
Percent leased at end of period(2) |
|
|
95.8 |
% |
|
|
92.9 |
% |
|
|
n/a |
|
|
|
3.1 |
% |
|
Distributions per share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
(1) |
Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the three months ended June 30, 2012 and 2011, rental income from operating leases was $8,976 and $7,846, respectively. |
|
|
|
|
|
|
(2) |
Percent leased is calculated as (i) GLA under commenced leases as of March 31, 2012, divided by (ii) total GLA, expressed as a percentage. |
|
|
|
|
|
|
* |
Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful. |
|
5
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2012 |
|
|
2011 |
|
|
Change $ |
|
|
Change % |
|
||||
|
Amortization of straight-line rents and above/below |
|
$ |
88 |
|
|
$ |
(269 |
) |
|
$ |
357 |
|
|
|
132.7 |
% |
|
Advisory services income - related party: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate fee income - related party |
|
|
675 |
|
|
|
825 |
|
|
|
(150 |
) |
|
|
(18.2 |
)% |
|
Asset management fee income - related party |
|
|
155 |
|
|
|
231 |
|
|
|
(76 |
) |
|
|
(32.9 |
)% |
|
Construction management fee income - related party |
|
|
55 |
|
|
|
56 |
|
|
|
(1 |
) |
|
|
(1.8 |
)% |
|
Total advisory services income - related party |
|
|
885 |
|
|
|
1,112 |
|
|
|
(227 |
) |
|
|
(20.4 |
)% |
|
Lease termination fee income |
|
|
— |
|
|
|
109 |
|
|
|
(109 |
) |
|
|
(100.0 |
)% |
|
Interest and other income |
|
|
136 |
|
|
|
129 |
|
|
|
7 |
|
|
|
5.4 |
% |
|
Interest and other income - related party |
|
|
84 |
|
|
|
31 |
|
|
|
53 |
|
|
|
171.0 |
% |
|
Total other revenues |
|
$ |
1,193 |
|
|
$ |
1,112 |
|
|
$ |
81 |
|
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
(1) |
Included in rental income from operating leases as presented on our consolidated statements of operations. |
|
Other Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2012 |
|
|
2011 |
|
|
Change $ |
|
|
|
Change % |
|
|||
|
Straight-line bad debt recoveries(1) |
|
$ |
(23 |
) |
|
$ |
(161 |
) |
|
$ |
(138 |
) |
|
|
(85.7 |
)% |
|
General and administrative |
|
|
1,558 |
|
|
|
1,426 |
|
|
|
(132 |
) |
|
|
(9.3 |
)% |
|
Legal and professional |
|
|
229 |
|
|
|
267 |
|
|
|
38 |
|
|
|
14.2 |
% |
|
Real estate commissions |
|
|
53 |
|
|
|
157 |
|
|
|
104 |
|
|
|
66.2 |
% |
|
Acquisition costs |
|
|
- |
|
|
|
75 |
|
|
|
75 |
|
|
|
100.0 |
% |
|
Depreciation and amortization |
|
|
2,120 |
|
|
|
2,308 |
|
|
|
188 |
|
|
|
8.1 |
% |
|
Impairment recovery - notes receivable |
|
|
(229 |
) |
|
|
- |
|
|
|
229 |
|
|
|
* |
|
|
Loss from Advised Funds |
|
|
66 |
|
|
|
146 |
|
|
|
80 |
|
|
|
54.8 |
% |
|
Income tax expense |
|
|
44 |
|
|
|
3 |
|
|
|
(41 |
) |
|
|
* |
|
|
Interest expense |
|
|
2,595 |
|
|
|
2,415 |
|
|
|
(180 |
) |
|
|
(7.5 |
)% |
|
Total other expenses |
|
$ |
6,413 |
|
|
$ |
6,636 |
|
|
$ |
223 |
|
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
(1) |
Included in property expense on our consolidated statements of operations. |
|
|
|
|
|
|
* |
Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful. |
|
6
Comparison of the six months ended June 30, 2012, to the six months ended June 30, 2011
Below are the results of operations for the six months ended June 30, 2012 and 2011 (in thousands, except for per share amounts, percentages and number of properties). In the comparative tables presented below, increases in revenues/income or decreases in expenses (favorable variances) are shown without parentheses while decreases in revenues/income or increases in expenses (unfavorable variances) are shown with parentheses. For purposes of comparing our results of operations for the periods presented below, all of our properties in the “same store” reporting group were owned since January 1, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2012 |
|
|
2011 |
|
|
Change $ |
|
|
Change % |
|
||||
|
Same store properties (26 properties) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income (1) |
|
$ |
11,574 |
|
|
$ |
11,177 |
|
|
$ |
397 |
|
|
|
3.6 |
% |
|
Recovery income (1) |
|
|
3,803 |
|
|
|
3,456 |
|
|
|
347 |
|
|
|
10.0 |
% |
|
Percentage rent (1) |
|
|
32 |
|
|
|
10 |
|
|
|
22 |
|
|
|
* |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses |
|
|
3,989 |
|
|
|
3,648 |
|
|
|
(341 |
) |
|
|
(9.3 |
)% |
|
Same store net operating income |
|
|
11,420 |
|
|
|
10,995 |
|
|
|
425 |
|
|
|
3.9 |
% |
|
Non-same store properties (3 properties) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income (1) |
|
|
1,801 |
|
|
|
643 |
|
|
|
1,158 |
|
|
|
180.1 |
% |
|
Recovery income (1) |
|
|
518 |
|
|
|
207 |
|
|
|
311 |
|
|
|
150.2 |
% |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses |
|
|
520 |
|
|
|
196 |
|
|
|
(324 |
) |
|
|
(165.3 |
)% |
|
Non-same store net operating income |
|
|
1,799 |
|
|
|
654 |
|
|
|
1,145 |
|
|
|
175.1 |
% |
|
Total net operating income |
|
|
13,219 |
|
|
|
11,649 |
|
|
|
1,570 |
|
|
|
13.5 |
% |
|
Other revenues (see further detail below): |
|
|
2,587 |
|
|
|
2,343 |
|
|
|
244 |
|
|
|
10.4 |
% |
|
Less other expenses (see further detail below): |
|
|
13,103 |
|
|
|
12,236 |
|
|
|
(867 |
) |
|
|
(7.1 |
)% |
|
Income (loss) from continuing operations |
|
|
2,703 |
|
|
|
1,756 |
|
|
|
947 |
|
|
|
53.9 |
% |
|
Income from discontinued operations |
|
|
- |
|
|
|
146 |
|
|
|
(146 |
) |
|
|
(100.0 |
)% |
|
Net income |
|
$ |
2,703 |
|
|
$ |
1,902 |
|
|
$ |
801 |
|
|
|
42.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations |
|
$ |
7,335 |
|
|
$ |
6,126 |
|
|
$ |
1,209 |
|
|
|
19.7 |
% |
|
Number of properties at end of period |
|
|
29 |
|
|
|
30 |
|
|
|
n/a |
|
|
|
* |
|
|
Percent leased at end of period(2) |
|
|
95.8 |
% |
|
|
92.9 |
% |
|
|
n/a |
|
|
|
3.1 |
% |
|
Distributions per share |
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
(1) |
Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the six months ended June 30, 2012 and 2011, rental income from operating leases was $17,905 and $15,296, respectively. |
|
|
|
|
|
|
(2) |
Percent leased is calculated as (i) GLA under commenced leases as of March 31, 2012, divided by (ii) total GLA, expressed as a percentage. |
|
|
|
|
|
|
* |
Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful. |
|
7
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2012 |
|
|
2011 |
|
|
Change $ |
|
|
Change % |
|
||||
|
Amortization of straight-line rents and above/below |
|
$ |
177 |
|
|
$ |
(197 |
) |
|
$ |
374 |
|
|
|
189.8 |
% |
|
Advisory services income - related party: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate fee income - related party |
|
|
1,592 |
|
|
|
1,384 |
|
|
|
208 |
|
|
|
15.0 |
% |
|
Asset management fee income - related party |
|
|
311 |
|
|
|
601 |
|
|
|
(290 |
) |
|
|
(48.3 |
)% |
|
Construction management fee income - related party |
|
|
113 |
|
|
|
128 |
|
|
|
(15 |
) |
|
|
(11.7 |
)% |
|
Total advisory services income - related party |
|
|
2,016 |
|
|
|
2,113 |
|
|
|
(97 |
) |
|
|
(4.6 |
)% |
|
Lease termination fee income |
|
|
- |
|
|
|
109 |
|
|
|
(109 |
) |
|
|
(100.0 |
)% |
|
Interest and other income |
|
|
237 |
|
|
|
257 |
|
|
|
(20 |
) |
|
|
(7.8 |
)% |
|
Interest and other income - related party |
|
|
157 |
|
|
|
61 |
|
|
|
96 |
|
|
|
157.4 |
% |
|
Total other revenues |
|
$ |
2,587 |
|
|
$ |
2,343 |
|
|
$ |
244 |
|
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
(1) |
Included in rental income from operating leases as presented on our consolidated statements of operations. |
|
Other Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
|
|||||||
|
|
|
2012 |
|
|
2011 |
|
|
Change $ |
|
|
Change % |
|
||||
|
Straight-line bad debt recoveries(1) |
|
$ |
(97 |
) |
|
$ |
(167 |
) |
|
$ |
(70 |
) |
|
|
(41.9 |
)% |
|
General and administrative |
|
|
3,042 |
|
|
|
2,710 |
|
|
|
(332 |
) |
|
|
(12.3 |
)% |
|
Legal and professional |
|
|
450 |
|
|
|
522 |
|
|
|
72 |
|
|
|
13.8 |
% |
|
Real estate commissions |
|
|
139 |
|
|
|
186 |
|
|
|
47 |
|
|
|
25.3 |
% |
|
Acquisition costs |
|
|
- |
|
|
|
115 |
|
|
|
115 |
|
|
|
100.0 |
% |
|
Depreciation and amortization |
|
|
4,347 |
|
|
|
3,948 |
|
|
|
(399 |
) |
|
|
(10.1 |
)% |
|
Impairment recovery - notes receivable |
|
|
(229 |
) |
|
|
- |
|
|
|
229 |
|
|
|
* |
|
|
Loss from Advised Funds |
|
|
102 |
|
|
|
250 |
|
|
|
148 |
|
|
|
59.2 |
% |
|
Income tax expense |
|
|
120 |
|
|
|
54 |
|
|
|
(66 |
) |
|
|
(122.2 |
)% |
|
Interest expense |
|
|
5,229 |
|
|
|
4,618 |
|
|
|
(611 |
) |
|
|
(13.2 |
)% |
|
Total other expenses |
|
$ |
13,103 |
|
|
$ |
12,236 |
|
|
$ |
(867 |
) |
|
|
(7.1 |
)% |
|
|
|
|
|
|
|
|
|
(1) |
Included in property expense on our consolidated statements of operations. |
|
|
|
|
|
|
* |
Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful. |
|
8
Real Estate Fee Income – Related Party:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
||||||||||
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
||||
|
Real estate fee income |
|
$ |
674 |
|
|
$ |
825 |
|
|
$ |
1,592 |
|
|
$ |
1,384 |
|
|
Asset management fee income |
|
|
156 |
|
|
|
231 |
|
|
|
311 |
|
|
|
601 |
|
|
Construction management fee income |
|
|
55 |
|
|
|
56 |
|
|
|
113 |
|
|
|
128 |
|
|
Advisory services income - related party |
|
$ |
885 |
|
|
$ |
1,112 |
|
|
$ |
2,016 |
|
|
$ |
2,113 |
|
|
|
||||||||||||||||
|
Reimbursements of administrative costs |
|
$ |
199 |
|
|
$ |
160 |
|
|
$ |
410 |
|
|
$ |
356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
% of |
|
|
December 31, |
|
|
% of |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable Rate - Line of Credit |
|
$ |
19,970 |
|
|
|
9.7 |
% |
|
$ |
19,345 |
|
|
|
9.6 |
% |
|
Fixed Rate - Mortgage Loans |
|
|
148,253 |
|
|
|
72.3 |
% |
|
|
141,373 |
|
|
|
70.1 |
% |
|
Variable Rate - Mortgage Loans |
|
|
36,730 |
|
|
|
17.9 |
% |
|
|
40,940 |
|
|
|
20.3 |
% |
|
|
|
$ |
204,953 |
|
|
|
100.0 |
% |
|
$ |
201,658 |
|
|
|
100.0 |
% |
|
|
||||||||||||||||
|
Debt statistics - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
12,399 |
|
|
|
|
|
|
$ |
22,748 |
|
|
|
|
|
|
Ratio of EBITDA to combined fixed charges(2) |
|
|
2.11 |
|
|
|
|
|
|
|
2.08 |
|
|
|
|
|
|
Ratio of Debt to annualized EBITDA |
|
|
8.26 |
|
|
|
|
|
|
|
8.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
(1) |
On August 1, 2012, we received estimated net proceeds of $46.3 million from the sale of 3,650,000 shares of our Class B common stock which was used to repay $45.3 million of mortgage debt. |
|
|
|
|
|
|
|
|
(2) |
Fixed charges consist of interest expense and scheduled principal payments on borrowed funds (including capitalized interest, but excluding amortization of debt premium). |
|
9
Outstanding Balances and Terms:
AmREIT
Debt Information
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Amount |
|
|
Amount |
|
|
Interest Rate |
Annual
Debt |
|
Maturity |
|
% of total |
|
Weighted |
|
||||||||
|
Property Mortgages: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MacArthur Park(1)(2) |
|
|
16,506 |
|
|
|
16,622 |
|
|
|
5.50 |
% |
|
908 |
|
|
12/1/2012 |
|
|
|
|
|
|
|
|
2012 Maturities |
|
|
16,506 |
|
|
|
16,622 |
|
|
|
|
|
|
|
|
|
|
|
|
8.07 |
% |
|
5.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uptown Plaza Dallas(2) |
|
|
10,327 |
|
|
|
10,444 |
|
|
|
4.75 |
% |
|
491 |
|
|
10/1/2013 |
|
|
|
|
|
|
|
|
2013 Maturities |
|
|
10,327 |
|
|
|
10,444 |
|
|
|
|
|
|
|
|
|
|
|
|
5.05 |
% |
|
4.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
500 Lamar |
|
|
1,675 |
|
|
|
1,719 |
|
|
|
6.00 |
% |
|
101 |
|
|
2/1/2015 |
|
|
|
|
|
|
|
|
Uptown Park |
|
|
49,000 |
|
|
|
49,000 |
|
|
|
5.37 |
% |
|
2,631 |
|
|
6/1/2015 |
|
|
|
|
|
|
|
|
2015 Maturities |
|
|
50,675 |
|
|
|
50,719 |
|
|
|
|
|
|
|
|
|
|
|
|
24.77 |
% |
|
5.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plaza in the Park |
|
|
23,250 |
|
|
|
23,250 |
|
|
|
3.45 |
% |
|
802 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Market at Lake Houston |
|
|
15,675 |
|
|
|
15,675 |
|
|
|
5.75 |
% |
|
901 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Cinco Ranch |
|
|
9,750 |
|
|
|
9,750 |
|
|
|
3.45 |
% |
|
336 |
|
|
1/1/2016 |
|
|
|
|
|
|
|
|
Southbank - Riverwalk |
|
|
20,000 |
|
|
|
20,000 |
|
|
|
5.91 |
% |
|
1,182 |
|
|
6/1/2016 |
|
|
|
|
|
|
|
|
2016 Maturities |
|
|
68,675 |
|
|
|
68,675 |
|
|
|
|
|
|
|
|
|
|
|
|
33.57 |
% |
|
4.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bakery Square |
|
|
2,219 |
|
|
|
2,412 |
|
|
|
8.00 |
% |
|
178 |
|
|
2/10/2017 |
|
|
|
|
|
|
|
|
2017 Maturities |
|
|
2,219 |
|
|
|
2,412 |
|
|
|
|
|
|
|
|
|
|
|
|
1.08 |
% |
|
8.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alpharetta Commons |
|
|
12,334 |
|
|
|
12,434 |
|
|
|
4.54 |
% |
|
560 |
|
|
8/1/2018 |
|
|
|
|
|
|
|
|
2018 Maturities |
|
|
12,334 |
|
|
|
12,434 |
|
|
|
|
|
|
|
|
|
|
|
|
6.03 |
% |
|
4.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MacArthur Pad Sites |
|
|
6,654 |
|
|
|
6,694 |
|
|
|
6.17 |
% |
|
411 |
|
|
7/1/2020 |
|
|
|
|
|
|
|
|
2020 Maturities |
|
|
6,654 |
|
|
|
6,694 |
|
|
|
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
6.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brookwood Village |
|
|
7,318 |
|
|
|
7,350 |
|
|
|
5.40 |
% |
|
395 |
|
|
2/10/2022 |
|
|
|
|
|
|
|
|
2022 Maturities |
|
|
7,318 |
|
|
|
7,350 |
|
|
|
|
|
|
|
|
|
|
|
|
3.58 |
% |
|
5.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lake Woodlands(1)(2) |
|
|
6,398 |
|
|
|
6,523 |
|
|
|
3.25 |
% |
|
208 |
|
|
9/10/2029 |
|
|
|
|
|
|
|
|
2029 Maturities |
|
|
6,398 |
|
|
|
6,523 |
|
|
|
|
|
|
|
|
|
|
|
|
3.13 |
% |
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Container Store(1)(2) |
|
|
3,500 |
|
|
|
- |
|
|
|
3.25 |
% |
|
114 |
|
|
3/1/2037 |
|
|
|
|
|
|
|
|
2037 Maturities |
|
|
3,500 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
1.71 |
% |
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Facility(1)(2) |
|
$ |
19,970 |
|
|
$ |
19,345 |
|
|
|
4.75 |
% |
$ |
949 |
|
|
6/30/2013 |
|
|
9.76 |
% |
|
4.75 |
% |
|
Total Maturities(3) |
|
|
204,576 |
|
|
|
201,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average rate |
|
|
4.97 |
% |
|
|
5.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
(1) |
This debt was repaid in full
on August 1, 2012. |
|
|
|
(2) |
The MacArthur Park, Uptown
Plaza – Dallas, Lake Woodlands and Container Store loans as well as the
Credit Facility are variable rate debt instruments. Additionally, the balance
of the Credit Facility fluctuates throughout the year based on our liquidity
needs. Annual debt service assumes the amounts outstanding and interest rates
as of June 30, 2012, remain constant through the respective loan terms. |
|
|
|
(3) |
Total maturities above are $377 and $440 less than total debt as reported in our consolidated balance sheets as of June 30, 2012, and December 31, 2011, respectively, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions. |
|
10
Property & Tenant Information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property |
|
Property |
|
Year Built / |
|
GLA |
|
Percent |
|
|
Annualized Base |
|
|
|
|
Average Net |
|
Key Tenants |
||
|
Neighborhood
and Community |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Uptown Park |
|
Houston, TX |
|
1999/2005 |
|
169,112 |
|
96.7% |
|
$ |
5,379,136 |
|
$ |
32.91 |
|
$ |
33.15 |
|
|
Champps, McCormick & Schmicks (owned by Landry’s) |
|
MacArthur Park(5) |
|
Dallas, TX |
|
2000 |
|
237,351 |
|
85.3% |
|
|
3,400,957 |
|
|
16.80 |
|
|
17.70 |
|
|
Kroger, Barnes & Noble, GAP |
|
|
||||||||||||||||||||
|
Plaza in the Park |
|
Houston, TX |
|
1999/2009 |
|
144,054 |
|
100.0% |
|
|
2,857,337 |
|
|
19.84 |
|
|
19.83 |
|
|
Kroger |
|
Southbank(6) |
|
San Antonio, TX |
|
1995 |
|
46,673 |
|
100.0% |
|
|
1,668,946 |
|
|
35.73 |
|
|
38.21 |
|
|
Hard Rock Café |
|
The Market at Lake Houston |
|
Houston, TX |
|
2000 |
|
101,799 |
|
100.0% |
|
|
1,609,088 |
|
|
15.81 |
|
|
15.86 |
|
|
H-E-B, Five Guys |
|
Uptown Plaza - Dallas |
|
Dallas, TX |
|
2005 |
|
33,840 |
|
100.0% |
|
|
1,510,155 |
|
|
44.63 |
|
|
45.53 |
|
|
Morton’s (owned by Landry’s), Wells Fargo |
|
Alpharetta Commons |
|
Atlanta, GA |
|
1997 |
|
94,544 |
|
98.7% |
|
|
1,319,620 |
|
|
14.14 |
|
|
13.98 |
|
|
Publix |
|
Cinco Ranch |
|
Houston, TX |
|
2001 |
|
97,297 |
|
100.0% |
|
|
1,309,559 |
|
|
13.46 |
|
|
13.59 |
|
|
Kroger |
|
Uptown Plaza - Houston |
|
Houston, TX |
|
2002 |
|
28,000 |
|
94.3% |
|
|
1,185,450 |
|
|
44.90 |
|
|
46.39 |
|
|
CVS/pharmacy, The Grotto (owned by Landry’s) |
|
Bakery Square |
|
Houston, TX |
|
1996 |
|
34,614 |
|
81.3% |
|
|
747,911 |
|
|
26.59 |
|
|
26.68 |
|
|
Walgreens, Boston Market |
|
Brookwood Village |
|
Atlanta, GA |
|
1941/2000 |
|
28,774 |
|
93.7% |
|
|
702,715 |
|
|
26.06 |
|
|
27.16 |
|
|
CVS/pharmacy, Subway |
|
Courtyard on Post Oak |
|
Houston, TX |
|
1994 |
|
13,597 |
|
100.0% |
|
|
545,368 |
|
|
40.11 |
|
|
43.70 |
|
|
Verizon |
|
Woodlands Plaza |
|
Houston, TX |
|
1997/2003 |
|
20,018 |
|
100.0% |
|
|
460,229 |
|
|
22.99 |
|
|
22.46 |
|
|
FedEx Kinko’s |
|
Sugarland Plaza |
|
Houston, TX |
|
1998/2001 |
|
16,750 |
|
100.0% |
|
|
402,188 |
|
|
24.01 |
|
|
23.45 |
|
|
Memorial Hermann |
|
500 Lamar |
|
Austin, TX |
|
1946/1998 |
|
12,795 |
|
100.0% |
|
|
396,169 |
|
|
30.96 |
|
|
31.50 |
|
|
Title Nine Sports |
|
Terrace Shops |
|
Houston, TX |
|
2000 |
|
16,395 |
|
100.0% |
|
|
383,632 |
|
|
23.40 |
|
|
26.83 |
|
|
Starbucks |
|
Neighborhood and Community Shopping Centers Subtotal/Weighted Average |
|
|
|
1,095,613 |
|
95.3% |
|
$ |
23,878,459 |
|
$ |
22.87 |
|
$ |
23.39 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Tenant (Ground Leases)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
CVS/Pharmacy |
|
Houston, TX |
|
2004 |
|
13,824 |
|
100.0% |
|
$ |
327,167 |
|
$ |
23.67 |
|
$ |
23.67 |
|
|
CVS/pharmacy |
|
Citibank |
|
San Antonio, TX |
|
2005 |
|
4,439 |
|
100.0% |
|
|
160,000 |
|
|
36.04 |
|
|
36.04 |
|
|
Citibank |
|
Landry’s Seafood |
|
Houston, TX |
|
1995 |
|
13,497 |
|
100.0% |
|
|
155,677 |
|
|
11.53 |
|
|
12.18 |
|
|
Landry’s Seafood |
|
T.G.I. Friday’s(8) |
|
Hanover, MD |
|
2003 |
|
6,802 |
|
100.0% |
|
|
148,458 |
|
|
21.83 |
|
|
20.83 |
|
|
T.G.I. Friday’s |
|
Bank of America |
|
Houston, TX |
|
1994 |
|
4,251 |
|
100.0% |
|
|
129,275 |
|
|
30.41 |
|
|
28.78 |
|
|
Bank of America |
|
Macaroni Grill |
|
Houston, TX |
|
1994 |
|
7,825 |
|
100.0% |
|
|
96,000 |
|
|
12.27 |
|
|
12.05 |
|
|
Macaroni Grill |
|
T.G.I. Friday’s |
|
Houston, TX |
|
1994 |
|
6,543 |
|
100.0% |
|
|
96,000 |
|
|
14.67 |
|
|
14.41 |
|
|
T.G.I. Friday’s |
|
Smokey Bones |
|
Atlanta, GA |
|
1998 |
|
6,867 |
|
100.0% |
|
|
94,922 |
|
|
13.82 |
|
|
13.82 |
|
|
Smokey Bones |
|
Single Tenant (Ground Leases) Subtotal/Weighted Average |
|
|
|
64,048 |
|
100.0% |
|
$ |
1,207,499 |
|
$ |
18.85 |
|
$ |
18.72 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Tenant (Fee Simple)(9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
The Container Store |
|
Houston, TX |
|
1997 |
|
25,019 |
|
100.0% |
|
$ |
425,323 |
|
$ |
17.00 |
|
$ |
17.91 |
|
|
The Container Store |
|
T.G.I. Friday’s |
|
Houston, TX |
|
1983 |
|
8,500 |
|
100.0% |
|
|
215,000 |
|
|
25.29 |
|
|
25.29 |
|
|
T.G.I. Friday’s |
|
Golden Corral(8) |
|
Houston, TX |
|
1992 |
|
12,000 |
|
100.0% |
|
|
210,450 |
|
|
17.54 |
|
|
17.54 |
|
|
Golden Corral |
|
Golden Corral(8) |
|
Houston, TX |
|
1992 |
|
12,000 |
|
100.0% |
|
|
208,941 |
|
|
17.41 |
|
|
17.41 |
|
|
Golden Corral |
|
Sunbelt Rentals |
|
Champaign, IL |
|
2007 |
|
12,000 |
|
100.0% |
|
|
176,970 |
|
|
14.75 |
|
|
14.72 |
|
|
Sunbelt Rentals |
|
Single
Tenant (Fee Simple) Subtotal/Weighted |
69,519 |
|
100.0% |
|
$ |
1,236,684 |
|
$ |
17.79 |
|
$ |
18.11 |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Total/Weighted Average |
|
|
|
1,229,180 |
|
95.8% |
|
$ |
26,322,642 |
|
$ |
22.35 |
|
$ |
22.82 |
|
|
|
||
|
|
|
|
|
|
|
(1) |
Percent leased is calculated as (i) GLA under commenced leases as of June 30, 2012, divided by (ii) total GLA, expressed as a percentage. |
|
|
|
|
|
|
|
|
(2) |
Annualized base rent is calculated by multiplying (i) monthly base rent as of June 30, 2012, for leases that had commenced as of such date, by (ii) 12. |
|
|
|
|
|
|
|
|
(3) |
Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent, by (ii) GLA under commenced leases as of June 30, 2012. |
|
|
|
|
|
|
|
|
(4) |
Average net effective annual base rent per leased square foot represents (i) the contractual base rent for commenced leases as of June 30, 2012, calculated on a straight line basis to amortize free rent periods, abatements and contractual rent increases, but without subtracting tenant improvement allowances and leasing commissions, divided by (ii) GLA under commenced leases as of June 30, 2012. |
|
11
|
|
|
|
|
|
|
|
|
|
(5) |
As of June 30, 2012, we have signed a lease with Michael’s that will commence in the third quarter of 2012 for an additional 26,127 square feet and an additional $385,373 in annualized base rent, which is not included in the table above as rent has not yet commenced and the tenant has not occupied the space. |
|
|
|
|
|
|
(6) |
During 2011, we executed a five-year lease for 6,000 square feet at our Southbank property whereby the tenant will pay only percentage rent for the first year of the lease in lieu of base rent and is not included in our Annualized Based Rent above. In each subsequent year, base rent will be calculated based on the total rent from the preceding year. |
|
|
|
|
|
|
(7) |
For single-tenant ground leases, we own and lease the land to the tenant. The tenant owns the building during the term of the lease and is responsible for all expenses relating to the property. Upon expiration or termination of the lease, ownership of the building will revert to us as owner of the land. The weighted average remaining term of our ground leases is 6.9 years. |
|
|
|
|
|
|
(8) |
The tenants at these properties have rights of first refusal to purchase the property. |
|
|
|
|
|
|
(9) |
For single-tenant fee simple properties, we own the land and the building, and the tenant is responsible for all expenses relating to the property. The weighted average remaining term of our fee simple leases is 4.7 years. |
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rank |
|
|
Tenant Name |
|
Year to Date |
|
Year to Date Annualized |
Tenant GLA |
|
Percentage
of |
||||||
|
1 |
|
|
Kroger |
|
|
1,058,083 |
|
|
8.04 |
% |
|
207,963 |
|
|
16.92 |
% |
|
2 |
|
|
Landry’s Seafood House |
|
|
631,392 |
|
|
4.80 |
% |
|
38,819 |
|
|
3.16 |
% |
|
3 |
|
|
CVS/pharmacy |
|
|
611,106 |
|
|
4.64 |
% |
|
37,485 |
|
|
3.05 |
% |
|
4 |
|
|
H-E-B |
|
|
554,868 |
|
|
4.22 |
% |
|
80,641 |
|
|
6.56 |
% |
|
5 |
|
|
Publix |
|
|
390,468 |
|
|
2.97 |
% |
|
65,146 |
|
|
5.30 |
% |
|
6 |
|
|
Hard Rock Cafe |
|
|
248,412 |
|
|
1.89 |
% |
|
15,752 |
|
|
1.28 |
% |
|
7 |
|
|
TGI Fridays |
|
|
225,472 |
|
|
1.71 |
% |
|
6,802 |
|
|
0.55 |
% |
|
8 |
|
|
The Container Store |
|
|
223,994 |
|
|
1.70 |
% |
|
25,019 |
|
|
2.04 |
% |
|
9 |
|
|
Champps Americana |
|
|
211,168 |
|
|
1.60 |
% |
|
11,384 |
|
|
0.93 |
% |
|
10 |
|
|
Golden Corral |
|
|
209,696 |
|
|
1.59 |
% |
|
24,000 |
|
|
1.95 |
% |
|
11 |
|
|
Paesanos |
|
|
203,292 |
|
|
1.54 |
% |
|
8,017 |
|
|
0.65 |
% |
|
12 |
|
|
The County Line |
|
|
193,646 |
|
|
1.47 |
% |
|
4,614 |
|
|
0.38 |
% |
|
13 |
|
|
Verizon Wirelss |
|
|
151,724 |
|
|
1.15 |
% |
|
5,513 |
|
|
0.45 |
% |
|
14 |
|
|
Walgreens |
|
|
149,310 |
|
|
1.13 |
% |
|
15,120 |
|
|
1.23 |
% |
|
15 |
|
|
Bank of America |
|
|
149,175 |
|
|
1.13 |
% |
|
8,129 |
|
|
0.66 |
% |
|
16 |
|
|
Ninfas |
|
|
142,210 |
|
|
1.08 |
% |
|
7,606 |
|
|
0.62 |
% |
|
17 |
|
|
Mattress Giant |
|
|
137,060 |
|
|
1.04 |
% |
|
11,000 |
|
|
0.89 |
% |
|
18 |
|
|
River Oaks Imaging & Diagnostic, L.P. |
|
|
134,250 |
|
|
1.02 |
% |
|
10,750 |
|
|
0.87 |
% |
|
19 |
|
|
Howl At The Moon Saloon |
|
|
128,754 |
|
|
0.98 |
% |
|
7,055 |
|
|
0.57 |
% |
|
20 |
|
|
Tasting Room |
|
|
128,752 |
|
|
0.98 |
% |
|
2,000 |
|
|
0.16 |
% |
|
21 |
|
|
Potbelly |
|
|
125,660 |
|
|
0.95 |
% |
|
5,458 |
|
|
0.44 |
% |
|
22 |
|
|
Buca Di Beppo |
|
|
124,896 |
|
|
0.95 |
% |
|
7,573 |
|
|
0.62 |
% |
|
23 |
|
|
M. Penner |
|
|
117,399 |
|
|
0.89 |
% |
|
6,500 |
|
|
0.53 |
% |
|
24 |
|
|
Longoria Collection |
|
|
113,032 |
|
|
0.86 |
% |
|
6,945 |
|
|
0.57 |
% |
|
25 |
|
|
Southwest Sports Group |
|
|
112,784 |
|
|
0.86 |
% |
|
4,256 |
|
|
0.35 |
% |
13
Retail Leasing Summary for Comparable Leases(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six |
|
For the year ended December 31, |
|
||||||||||||||
|
|
|
2012 |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
||||||
|
Expirations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
17 |
|
|
53 |
|
|
50 |
|
|
34 |
|
|
22 |
|
|
20 |
|
|
GLA |
|
|
65,833 |
|
|
187,605 |
|
|
224,578 |
|
|
110,693 |
|
|
75,601 |
|
|
55,124 |
|
|
New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
2 |
|
|
7 |
|
|
11 |
|
|
8 |
|
|
4 |
|
|
9 |
|
|
GLA |
|
|
5,413 |
|
|
14,231 |
|
|
17,737 |
|
|
15,471 |
|
|
7,328 |
|
|
13,680 |
|
|
Expiring
annualized base rent |
|
$ |
29.10 |
|
$ |
28.36 |
|
$ |
31.07 |
|
$ |
28.31 |
|
$ |
23.52 |
|
$ |
28.73 |
|
|
New
annualized base rent per |
|
$ |
34.26 |
|
$ |
30.85 |
|
$ |
31.44 |
|
$ |
29.64 |
|
$ |
21.70 |
|
$ |
32.82 |
|
|
% Change (Cash) |
|
|
17.7 |
% |
|
8.8 |
% |
|
1.2 |
% |
|
4.7 |
% |
|
-7.7 |
% |
|
14.2 |
% |
|
Renewals(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
13 |
|
|
38 |
|
|
39 |
|
|
24 |
|
|
13 |
|
|
12 |
|
|
GLA |
|
|
58,520 |
|
|
143,324 |
|
|
140,236 |
|
|
86,462 |
|
|
22,464 |
|
|
43,003 |
|
|
Expiring
annualized base rent |
|
$ |
20.64 |
|
$ |
24.92 |
|
$ |
26.12 |
|
$ |
25.62 |
|
$ |
27.05 |
|
$ |
19.88 |
|
|
New
annualized base rent per |
|
$ |
22.30 |
|
$ |
25.74 |
|
$ |
27.32 |
|
$ |
26.85 |
|
$ |
31.53 |
|
$ |
22.79 |
|
|
% Change (Cash) |
|
|
8.0 |
% |
|
3.3 |
% |
|
4.6 |
% |
|
4.8 |
% |
|
16.6 |
% |
|
14.6 |
% |
|
Combined |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of leases |
|
|
15 |
|
|
45 |
|
|
50 |
|
|
32 |
|
|
17 |
|
|
21 |
|
|
GLA |
|
|
63,933 |
|
|
157,555 |
|
|
157,973 |
|
|
101,933 |
|
|
29,792 |
|
|
56,683 |
|
|
Expiring
annualized base rent |
|
$ |
21.35 |
|
$ |
25.23 |
|
$ |
26.68 |
|
$ |
26.03 |
|
$ |
26.18 |
|
$ |
22.02 |
|
|
New
annualized base rent per |
|
$ |
23.31 |
|
$ |
26.20 |
|
$ |
27.78 |
|
$ |
27.27 |
|
$ |
29.11 |
|
$ |
25.21 |
|
|
% Change (Cash) |
|
|
9.2 |
% |
|
3.8 |
% |
|
4.1 |
% |
|
4.8 |
% |
|
11.2 |
% |
|
14.5 |
% |
|
|
|
|
|
|
|
|
||
|
|
(1) |
Comparable leases are defined as renewals or new leases for a space that was not vacant for more than 12 consecutive months prior to lease signing. |
|
|
|
|
|
|
|
|
(2) |
Represents existing tenants that, upon expiration of their leases, enter into new leases for the same space. |
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Number of |
|
GLA of |
|
Percent of |
|
ABR of Expiring |
|
Percent of |
|
ABR Per |
|
||||||
|
Vacant |
|
- |
|
|
51,422 |
|
|
|
4.2% |
|
$ |
- |
|
- |
|
|
$ |
- |
|
|
2012 |
|
23 |
|
|
67,469 |
|
|
|
5.5% |
|
|
1,541,682 |
|
5.9 |
% |
|
|
22.85 |
|
|
2013 |
|
40 |
|
|
134,548 |
|
|
|
10.9% |
|
|
3,166,860 |
|
12.0 |
% |
|
|
23.54 |
|
|
2014 |
|
36 |
|
|
96,633 |
|
|
|
7.8% |
|
|
2,941,631 |
|
11.2 |
% |
|
|
30.44 |
|
|
2015 |
|
42 |
|
|
138,800 |
|
|
|
11.3% |
|
|
3,974,175 |
|
15.1 |
% |
|
|
28.63 |
|
|
2016 |
|
41 |
|
|
121,236 |
|
|
|
9.9% |
|
|
3,589,195 |
|
13.6 |
% |
|
|
29.61 |
|
|
2017 |
|
22 |
|
|
234,753 |
|
|
|
19.1% |
|
|
4,186,544 |
|
15.9 |
% |
|
|
17.83 |
|
|
2018 |
|
9 |
|
|
22,491 |
|
|
|
1.8% |
|
|
576,114 |
|
2.2 |
% |
|
|
25.62 |
|
|
2019 |
|
7 |
|
|
25,231 |
|
|
|
2.1% |
|
|
696,879 |
|
2.6 |
% |
|
|
27.62 |
|
|
2020 |
|
6 |
|
|
80,985 |
|
|
|
6.6% |
|
|
1,118,889 |
|
4.3 |
% |
|
|
13.82 |
|
|
2021 |
|
8 |
|
|
105,587 |
|
|
|
8.6% |
|
|
1,765,878 |
|
6.7 |
% |
|
|
16.72 |
|
|
2022 + |
|
10 |
|
|
150,025 |
|
|
|
12.2% |
|
|
2,764,795 |
|
10.5 |
% |
|
|
18.43 |
|
|
Total / Weighted Avg |
|
244 |
|
|
1,229,180 |
|
|
|
|
|
$ |
26,322,642 |
|
|
|
|
$ |
22.35 |
|
|
|
|
|
|
|
|
|
||
|
|
(1) |
ABR for expiring leases is calculated by multiplying (i) the monthly base rent as of June 30, 2012, for leases expiring during the applicable period by (ii) 12. |
|
|
|
(2) |
ABR per square foot is calculated by dividing (i) ABR for leases expiring during the applicable period by (ii) GLA for leases expiring during the applicable period. |
|
15