AmREIT, Inc. - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

Attached files

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EX-99.1 - PRESS RELEASE DATED NOVEMBER 5, 2012 - AmREIT, Inc.	amreit124635_ex99-1.htm
8-K - FORM 8-K DATED NOVEMBER 5, 2012 - AmREIT, Inc.	amreit124635_8k.htm

Exhibit 99.2

Supplemental Financial Information

September 30, 2012

(Unaudited)


	Table of Contents	Page #
Corporate Profile		1
Consolidated Balance Sheets		2
Consolidated Statements of Operations		3

Summary of Operating Results
Funds from operations		4
Dividend payout ratio		4
Adjusted funds from operations		4
Summary of capital expenditures		4
Same store property analysis		6
Advisory services income - related party		10

Debt Information
Debt and market data		10
Outstanding balances and terms		11

Property & Tenant Information
Property table		12
Top 25 tenants		14
Retail leasing summary for comparable leases		15
Lease expiration table		16
Lease distribution table		16

This Supplemental Financial Information package contains historical information of the Company and is intended to supplement the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 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.

Corporate Profile:

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 September 30, 2012, our portfolio consisted of 29 wholly-owned properties with approximately 1.2 million square feet of GLA, which were 96.8% leased with a weighted average remaining lease term of 5.3 years. Our neighborhood and community shopping centers accounted for 90.9% of our annualized base rent as of September 30, 2012, with our single-tenant retail properties accounting for the remaining 9.1% of our annualized base rent. In addition to our portfolio, we control and manage an additional 17 properties with approximately 2.2 million square feet through our Advised Funds with an undepreciated book value of $452 million as of September 30, 2012

Corporate Office:

8 Greenway Plaza, Suite 1000

Houston, Texas 77046

(800) 888-4400

(713) 850-0498 (fax)

www.amreit.com

AmREIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)


	September 30, 2012			December 31, 2011
	(unaudited)
ASSETS
Real estate investments at cost:
Land	$	138,404		$	138,404
Buildings		172,699			172,146
Tenant improvements		16,136			14,483
		327,239			325,033
Less accumulated depreciation and amortization		(38,068	)		(33,865	)
		289,171			291,168

Acquired lease intangibles, net		8,437			10,139
Investments in Advised Funds		8,062			8,322
Net real estate investments		305,670			309,629

Cash and cash equivalents		12,324			1,050
Tenant and accounts receivable, net		4,222			4,340
Accounts receivable - related party, net		1,054			645
Notes receivable, net		2,634			3,412
Notes receivable - related party, net		7,391			6,513
Deferred costs, net		3,449			2,887
Other assets		2,726			2,134
TOTAL ASSETS	$	339,470		$	330,610

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Notes payable	$	161,995		$	201,658
Accounts payable and other liabilities		7,689			8,007
Acquired below-market lease intangibles, net		1,800			2,021
TOTAL LIABILITIES		171,484			211,686

Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—			—
Class A common stock, $0.01 par value, 100,000,000 shares authorized, 11,657,563 and 11,598,959 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively		117			116
Class B common stock, $0.01 par value, 900,000,000 shares authorized, 4,465,725 and 0 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively		45			—
Capital in excess of par value		245,184			192,005
Accumulated distributions in excess of earnings		(77,360	)		(73,197	)
TOTAL STOCKHOLDERS’ EQUITY		167,986			118,924
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	339,470		$	330,610

See Notes to Consolidated Financial Statements.

AmREIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data)
(unaudited)


	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011

Revenues:
Rental income from operating leases	$	9,070		$	8,814		$	26,975		$	24,110
Advisory services income - related party		957			818			2,973			2,931
Lease termination fee income		—			—			—			109
Total revenues		10,027			9,632			29,948			27,150

Expenses:
General and administrative		1,764			1,485			4,806			4,195
Property expense		2,380			2,236			6,792			5,913
Legal and professional		227			266			677			788
Real estate commissions		129			106			268			292
Acquisition costs		—			107			—			222
Depreciation and amortization		2,216			2,122			6,563			6,071
Impairment recovery - notes receivable		(214	)		—			(443	)		—
Total expenses		6,502			6,322			18,663			17,481

Operating income		3,525			3,310			11,285			9,669

Other income (expense):
Interest and other income		125			126			362			383
Interest and other income - related party		236			123			393			184
Loss from Advised Funds		(26	)		(74	)		(128	)		(324	)
State income taxes		(74	)		(134	)		(194	)		(188	)
Interest expense		(2,763	)		(2,648	)		(7,992	)		(7,266	)

Income from continuing operations		1,023			703			3,726			2,458

Income (loss) from discontinued operations, net of taxes		—			(2	)		—			145
Gain on sale of real estate acquired for resale, net of taxes		—			417			—			417
Income from discontinued operations		—			415			—			562

Net income	$	1,023		$	1,118		$	3,726		$	3,020

Net income per share of common stock - basic and diluted
Income before discontinued operations	$	0.07		$	0.06		$	0.29		$	0.21
Income from discontinued operations	$	—		$	0.04		$	—		$	0.05
Net income	$	0.07		$	0.10		$	0.29		$	0.26

Weighted average shares of common stock used to compute net income per share, basic and diluted		14,051			11,393			12,294			11,381

Distributions per share of common stock	$	0.20		$	0.20		$	0.60		$	0.60

See Notes to Consolidated Financial Statements.

Summary of Operating Results:
(in thousands except per share data)


Funds from operations (“FFO”)⁽¹⁾	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Net income⁽²⁾	$	1,023		$	1,118		$	3,726		$	3,020
Add:

Depreciation of real estate assets - from operations		2,204			2,106			6,523			6,012
Depreciation of real estate assets - from discontinued operations		—			—			—			13
Depreciation of real estate assets for nonconsolidated affiliates		153			152			466			458
Total FFO available to stockholders	$	3,380		$	3,376		$	10,715		$	9,503

Weighted average shares outstanding⁽³⁾		14,491			11,600			12,591			11,598
Total FFO per share	$	0.23		$	0.29		$	0.85		$	0.82

Dividend payout ratio
Regular dividends declared	$	3,225		$	2,320		$	7,889		$	6,958
Dividend payout ratio as a percentage of FFO		95.4	%		68.7	%		73.6	%		73.2	%

Adjusted funds from operations (“AFFO”)
Total FFO available to stockholders	$	3,380		$	3,376		$	10,715		$	9,503
Add:
Depreciation of non-real estate assets		12			16			40			59
Amortization of deferred financing costs		450			178			640			431
Stock-based compensation		268			134			556			405
Acquisition costs		—			107			—			222
Less:
Straight-line rent and above/below market rent		(96	)		(107	)		(272	)		80
Bad debt recoveries related to straight-line rent		—			(38	)		(97	)		(205	)
Maintenance capital expenditures		(77	)		(9	)		(107	)		(9	)
Impairment recoveries - notes receivable		(214	)		—			(443	)		—
Gain on sale of real estate acquired for resale		—			(417	)		—			(417	)
Total AFFO available to stockholders	$	3,723		$	3,240		$	11,032		$	10,069

Summary of capital expenditures
Non-maintenance capital expenditures
Tenant improvements	$	212		$	248		$	2,011		$	996
Leasing commissions		212			163			564			397
Building improvements		74			68			479			186
Maintenance capital expenditures		77			9			107			9
Total capital expenditures	$	575		$	488		$	3,161		$	1,588



	(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.


	(2)	Net income for the three and nine months ended September 30, 2011, includes acquisition costs of $107 and $222, respectively, incurred in connection with the acquisition of operating properties.

	(3)	Weighted average shares outstanding reflects the weighted average of all shares of common stock outstanding during the period including our non-vested shares. Weighted average shares of common stock outstanding used to compute net income per share under GAAP pursuant to the “two class method” includes only vested shares of common stock. Our reconciliation of weighted average shares used to compute net income per share, basic and diluted, on our consolidated statements of operations to weighted average shares used to compute FFO per share above is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Weighted average shares used to compute net income per share, basic and diluted		14,051		11,393		12,294		11,381
Weighted average shares of restricted common stock oustanding		440		207		297		207
Weighted average shares used to compute FFO per share		14,491		11,600		12,591		11,588

Same Store Property Analysis:

Comparison of the three months ended September 30, 2012, to the three months ended September 30, 2011

Below are the results of operations for the three months ended September 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 July 1, 2011.


	Three months ended September 30,
	2012			2011			Change $			Change %
Same store properties (27 properties)
Rental income ⁽¹⁾	$	6,283		$	6,107		$	176			2.9	%
Recovery income ⁽¹⁾		2,117			2,124			(7	)		(0.3	)%
Percentage rent ⁽¹⁾		102			105			(3	)		(2.9	)%
Less:
Property expenses		2,248			2,181			(67	)		(3.1	)%
Same store net operating income		6,254			6,155			99			1.6	%

Non-same store properties (2 properties)
Rental income ⁽¹⁾		369			279			90			32.3	%
Recovery income ⁽¹⁾		103			92			11			12.0	%
Less:
Property expenses		132			93			(39	)		(41.9	)%
Non-same store net operating income		340			278			62			22.3	%
Total net operating income		6,594			6,433			161			2.5	%

Other revenues (see further detail below):		1,414			1,174			240			20.4	%

Less other expenses (see further detail below):		6,985			6,904			(81	)		(1.2	)%

Income (loss) from continuing operations		1,023			703			320			45.5	%
Income from discontinued operations		—			415			(415	)		(100.0	)%
Net income	$	1,023		$	1,118		$	(95	)		(8.5	)%

Other data
Funds from operations	$	3,380		$	3,376		$	4			0.1	%
Number of properties at end of period		29			29			n/a			*
Percent leased at end of period⁽²⁾		96.8	%		93.0	%		n/a			3.8	%
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 September 30, 2012 and 2011, rental income from operating leases was $9,070 and $8,814, respectively.

	(2)	Percent leased is calculated as (i) GLA under commenced leases as of September 30, 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.

Other Revenues


	Three months ended September 30,
	2012		2011		Change $			Change %
Amortization of straight-line rents and above/below market rents⁽¹⁾	$	96	$	107	$	(11	)		10.3	%
Advisory services income - related party:
Real estate fee income - related party		738		534		204			38.2	%
Asset management fee income - related party		155		231		(76	)		(32.9	)%
Construction management fee income - related party		64		53		11			20.8	%
Total advisory services income - related party		957		818		139			17.0	%
Interest and other income		125		126		(1	)		(0.8	)%
Interest and other income - related party		236		123		113			91.9	%
Total other revenues	$	1,414	$	1,174	$	240			20.4	%



	(1)	Included in rental income from operating leases as presented on our consolidated statements of operations.

Other Expenses


	Three months ended September 30,
	2012			2011			Change $			Change %
Straight-line bad debt recoveries⁽¹⁾	$	—		$	(38	)	$	(38	)		(100.0	)%
General and administrative		1,764			1,485			(279	)		(18.8	)%
Legal and professional		227			266			39			14.7	%
Real estate commissions		129			106			(23	)		(21.7	)%
Acquisition costs		—			107			107			100.0	%
Depreciation and amortization		2,216			2,122			(94	)		(4.4	)%
Impairment recovery - notes receivable		(214	)		—			214			*
Loss from Advised Funds		26			74			48			64.9	%
State income taxes		74			134			60			44.8	%
Interest expense⁽²⁾		2,763			2,648			(115	)		(4.3	)%
Total other expenses	$	6,985		$	6,904		$	(81	)		(1.2	)%



	(1)	Included in property expense on our consolidated statements of operations.

	(2)	Includes $368 of unamortized loan acquisition fees written off during the three months ended September 30, 2012, in connection with the repayment of loans using proceeds from our 2012 IPO and refinance of our Uptown Plaza Dallas debt.

	*	Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

Comparison of the nine months ended September 30, 2012, to the nine months ended September 30, 2011

Below are the results of operations for the nine months ended September 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.


	Nine months ended September 30,
	2012			2011			Change $			Change %
Same store properties (25 properties)
Rental income ⁽¹⁾	$	17,190		$	16,652		$	538			3.2	%
Recovery income ⁽¹⁾		5,707			5,306			401			7.6	%
Percentage rent ⁽¹⁾		134			95			39			41.1	%
Less:
Property expenses		6,011			5,561			(450	)		(8.1	)%
Same store net operating income		17,020			16,492			528			3.2	%
Non-same store properties (4 properties)
Rental income ⁽¹⁾		2,837			1,564			1,273			81.4	%
Recovery income ⁽¹⁾		835			573			262			45.7	%
Less:
Property expenses		878			557			(321	)		(57.6	)%
Non-same store net operating income		2,794			1,580			1,214			76.8	%
Total net operating income		19,814			18,072			1,742			9.6	%
Other revenues (see further detail below):		4,000			3,527			473			13.4	%
Less other expenses (see further detail below):		20,088			19,141			(947	)		(4.9	)%
Income (loss) from continuing operations		3,726			2,458			1,268			51.6	%
Income from discontinued operations		—			562			(562	)		(100.0	)%
Net income	$	3,726		$	3,020		$	706			23.4	%

Other data
Funds from operations	$	10,715		$	9,503		$	1,212			12.8	%
Number of properties at end of period		29			29			n/a			*
Percent leased at end of period⁽²⁾		96.8	%		93.0	%		n/a			3.8	%
Distributions per share	$	0.60		$	0.60		$	—			*



	(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 nine months ended September 30, 2012 and 2011, rental income from operating leases was $26,975 and $24,110, respectively.

	(2)	Percent leased is calculated as (i) GLA under commenced leases as of September 30, 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.

Other Revenues


	Nine months ended September 30,
	2012		2011			Change $			Change %
Amortization of straight-line rents and above/below market rents⁽¹⁾	$	272	$	(80	)	$	352			*
Advisory services income - related party:
Real estate fee income - related party		2,330		1,917			413			21.5	%
Asset management fee income - related party		466		833			(367	)		(44.1	)%
Construction management fee income - related party		177		181			(4	)		(2.2	)%
Total advisory services income - related party		2,973		2,931			42			1.4	%
Lease termination fee income		—		109			(109	)		(100.0	)%
Interest and other income		362		383			(21	)		(5.5	)%
Interest and other income - related party		393		184			209			113.6	%
Total other revenues	$	4,000	$	3,527		$	473			13.4	%



	(1)	Included in rental income from operating leases as presented 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.

Other Expenses


	Nine months ended September 30,
	2012			2011			Change $			Change %
Straight-line bad debt recoveries⁽¹⁾	$	(97	)	$	(205	)	$	(108	)		(52.7	) %
General and administrative		4,806			4,195			(611	)		(14.6	) %
Legal and professional		677			788			111			14.1	%
Real estate commissions		268			292			24			8.2	%
Acquisition costs		—			222			222			100.0	%
Depreciation and amortization		6,563			6,071			(492	)		(8.1	) %
Impairment recovery - notes receivable		(443	)		—			443			*
Loss from Advised Funds		128			324			196			60.5	%
State income taxes		194			188			(6	)		(3.2	) %
Interest expense⁽²⁾		7,992			7,266			(726	)		(10.0	)%
Total other expenses	$	20,088		$	19,141		$	(947	)		(4.9	)%


	(1)	Included in property expense on our consolidated statements of operations.

	(2)	Includes $368 of unamortized loan acquisition fees written off during the nine months ended September 30, 2012, in connection with the repayment of loans using proceeds from our 2012 IPO and refinance of our Uptown Plaza debt.

	*	Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

Advisory Services Income – Related Party (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Leasing commission income	$	318	$	234	$	925	$	873
Property management fee income		310		297		917		889
Development fee income		110		3		488		155
Asset management fee income		155		231		466		833
Construction management fee income		64		53		177		181
Advisory services income - related party	$	957	$	818	$	2,973	$	2,931
Reimbursements of administrative costs	$	231	$	199	$	641	$	555

Debt and Market Data (in thousands, except ratios):


	September 30, 2012		% of Total			December 31, 2011		% of Total
Fixed vs. variable rate debt
Variable Rate - Line of Credit	$	—		0.0	%	$	19,345	9.6	%
Fixed Rate - Mortgage Loans		161,995		100.0	%		141,373	70.1	%
Variable Rate - Mortgage Loans		—		0.0	%		40,940	20.3	%
	$	161,995		100.0	%	$	201,658	100.0	%
Debt statistics -
EBITDA	$	18,475				$	22,748
Ratio of EBITDA to combined fixed charges⁽¹⁾		2.18					2.08
Ratio of Debt to annualized EBITDA		6.58					8.86



	(1)	Fixed charges consist of interest expense and scheduled principal payments on borrowed funds (including capitalized interest, but excluding amortization of debt premium).

Outstanding Balances and Terms:

AmREIT
Debt Information
(in thousands)


Description	Amount Outstanding 9/30/12			Interest Rate			Annual Debt Service		Maturity Date		% of total			Weighted average rate maturing
Property Mortgages:

500 Lamar		1,653			6.00	%	$	99		2/1/2015
Uptown Park		49,000			5.37	%		2,631		6/1/2015
2015 Maturities		50,653										31.34	%		5.39	%

Plaza in the Park		23,250			3.45	%		802		1/1/2016
Market at Lake Houston		15,675			5.75	%		901		1/1/2016
Cinco Ranch		9,750			3.45	%		336		1/1/2016
Southbank - Riverwalk		20,000			5.91	%		1,182		6/1/2016
2016 Maturities		68,675										42.48	%		4.69	%

Bakery Square		2,120			8.00	%		170		2/10/2017
2017 Maturities		2,120										1.31	%		8.00	%

Alpharetta Commons		12,283			4.54	%		558		8/1/2018
2018 Maturities		12,283										7.60	%		4.54	%

MacArthur Pad Sites		6,634			6.17	%		409		7/1/2020
2020 Maturities		6,634										4.10	%		6.17	%

Brookwood Village		7,302			5.40	%		394		2/10/2022
Uptown Plaza - Dallas		13,981			4.25	%		594		8/10/2022
2022 Maturities		21,283										13.17	%		4.64	%

Corporate debt:

$75.0 million Facility⁽¹⁾	$	—			—	⁽¹⁾	$	—		8/1/2015		—			—	⁽¹⁾
Total Maturities⁽²⁾		161,648
Weighted average rate		5.00	%


	(1)	The $75.0 million Facility bears interest at LIBOR plus a margin of 205 basis points to 275 basis points, depending on our leverage, and carries a fee equal to 0.35% of the unused portion of the total amount available under the facility.

	(2)	Total maturities above are $347 less than total debt as reported in our consolidated balance sheets as of September 30, 2012, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions.

Property & Tenant Information:


Property	Property Location	Year Built / Renovated	GLA	Percent Leased⁽¹⁾		Annualized Base Rent⁽²⁾			Annualized Base Rent per Leased Square Foot⁽³⁾		Average Net Effective Annualized Base Rent per Leased Square Foot⁽⁴⁾		Key Tenants
Neighborhood and Community Shopping Centers
Uptown Park	Houston, TX	1999/2005	169,112	94.2	%	$	5,431,992		$	34.09	$	33.46		Champps, McCormick & Schmicks (owned by Landry’s)

MacArthur Park	Dallas, TX	2000	237,351	92.7%			3,698,928			16.82		17.23		Kroger, Barnes & Noble, GAP

Plaza in the Park	Houston, TX	1999/2009	144,054	98.6%			2,810,521			19.78		19.63		Kroger
Southbank⁽⁵⁾	San Antonio, TX	1995	46,673	96.0%			1,574,225			35.12		39.50		Hard Rock Café
The Market at Lake Houston	Houston, TX	2000	101,799	100.0%			1,611,972			15.84		15.88		H-E-B, Five Guys
Uptown Plaza - Dallas	Dallas, TX	2006	33,840	100.0%			1,446,315			42.74		43.64		Morton’s (owned by Landry’s), Wells Fargo
Alpharetta Commons	Atlanta, GA	1997	94,544	98.7%			1,323,654			14.18		14.36		Publix
Cinco Ranch	Houston, TX	2001	97,297	100.0%			1,310,759			13.48		13.59		Kroger

Uptown Plaza - Houston	Houston, TX	2002	28,000	94.3%			1,191,850			45.15		46.35		CVS/pharmacy, The Grotto (owned by Landry’s)

Bakery Square	Houston, TX	1996	34,614	94.3%			750,536			23.00		28.08		Walgreens, Boston Market
Brookwood Village	Atlanta, GA	1941/2000	28,774	93.7%			704,997			26.14		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
Terrace Shops	Houston, TX	2000	16,395	91.3%			456,682			30.50		30.19		Starbucks
Sugarland Plaza	Houston, TX	1998/2001	16,750	100.0%			402,188			24.01		23.45		Memorial Hermann
500 Lamar	Austin, TX	1998	12,795	100.0%			397,903			31.10		31.50		Title Nine Sports
Neighborhood and Community Shopping Centers Subtotal/Weighted Average			1,095,613	96.4%		$	24,118,119		$	22.83	$	23.28

Single Tenant (Ground Leases)⁽⁶⁾
CVS/Pharmacy	Houston, TX	2003	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⁽⁷⁾	Hanover, MD	2003	6,802	100.0%			148,458			21.83		23.44		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	$	19.00
Single Tenant (Fee Simple)⁽⁸⁾
The Container Store	Houston, TX	2011	25,019	100.0%		$	425,323		$	17.00	$	17.91		The Container Store
T.G.I. Friday’s	Houston, TX	1982	8,500	100.0%			215,000			25.29		25.90		T.G.I. Friday’s
Golden Corral⁽⁷⁾	Houston, TX	1992	12,000	100.0%			210,450			17.54		17.54		Golden Corral
Golden Corral⁽⁷⁾	Houston, TX	1993	12,000	100.0%			208,941			17.41		17.41		Golden Corral
Sunbelt Rentals	Champaign, IL	2007	12,000	100.0%			140,000			11.67		12.72		Sunbelt Rentals
Single Tenant (Fee Simple) Subtotal/Weighted Average			69,519	100.0%		$	1,199,714		$	17.26	$	17.84

Portfolio Total/Weighted Average			1,229,180	96.8%		$	26,525,332	⁽¹⁾	$	22.29	$	22.73


	(1)	Percent leased is calculated as (i) GLA under commenced leases as of September 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 September 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 September 30, 2012.

	(4)	Average net effective annual base rent per leased square foot represents (i) the contractual base rent for commenced leases as of September 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 September 30, 2012.


	(5)	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. Such percentage rent 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.

	(6)	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 7.1 years.

	(7)	The tenants at these properties have rights of first refusal to purchase the property.

	(8)	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 6.5 years.

Summary of Top 25 Tenants:


Rank	Tenant Name	Year to Date Base Rent		Year to Date Annualized Base Rent as a Percentage of Portfolio Annualized Base Rent			Tenant GLA		Percentage of Total GLA
1	Kroger	$	1,587,124		11.97	%		207,963		16.92	%
2	Landry’s Seafood House		944,339		7.12	%		38,819		3.16	%
3	CVS/pharmacy		916,659		6.91	%		37,485		3.05	%
4	H-E-B		832,302		6.28	%		80,641		6.56	%
5	Publix		585,702		4.42	%		65,146		5.30	%
6	Hard Rock Cafe		372,619		2.81	%		15,752		1.28	%
7	TGI Fridays		340,119		2.56	%		21,845		1.78	%
8	The Container Store		335,991		2.53	%		25,019		2.04	%
9	Champps Americana		316,752		2.39	%		11,384		0.93	%
10	Golden Corral		314,543		2.37	%		24,000		1.95	%
11	Paesanos		304,938		2.30	%		8,017		0.65	%
12	The County Line		283,334		2.14	%		9,614		0.78	%
13	Verizon Wirelss		227,587		1.72	%		5,513		0.45	%
14	Walgreens		223,965		1.69	%		15,120		1.23	%
15	Bank of America		223,762		1.69	%		8,129		0.66	%
16	Ninfas		213,316		1.61	%		7,606		0.62	%
17	Mattress Giant		205,590		1.55	%		11,000		0.89	%
18	River Oaks Imaging & Diagnostic, L.P.		201,375		1.52	%		10,750		0.87	%
19	Howl At The Moon Saloon		193,131		1.46	%		7,055		0.57	%
20	Tasting Room		193,128		1.46	%		2,000		0.16	%
21	Potbelly		188,490		1.42	%		5,458		0.44	%
22	Buca Di Beppo		187,344		1.41	%		7,573		0.62	%
23	M. Penner		176,099		1.33	%		6,500		0.53	%
24	Longoria Collection		169,548		1.28	%		6,945		0.57	%
25	Baker, Knapp and Tubbs, Inc.		150,469		1.13	%		8,025		0.65	%

Retail Leasing Summary for Comparable Leases⁽¹⁾:


	For the nine months ended September 30,			For the year ended December 31,
	2012			2011			2010			2009			2008			2007
Expirations
Number of leases		31			53			50			34			22			20
GLA		116,523			187,605			224,578			110,693			75,601			55,124
New Leases
Number of leases		4			7			11			8			4			9
GLA		11,412			14,231			17,737			15,471			7,328			13,680
Expiring annualized base rent per square foot	$	27.14		$	28.36		$	31.07		$	28.31		$	23.52		$	28.73
New annualized base rent per square foot	$	35.70		$	30.85		$	31.44		$	29.64		$	21.70		$	32.82
% Change (Cash)		31.5	%		8.8	%		1.2	%		4.7	%		-7.7	%		14.2	%
Renewals⁽²⁾
Number of leases		24			38			39			24			13			12
GLA		93,031			143,324			140,236			86,462			22,464			43,003
Expiring annualized base rent per square foot	$	22.33		$	24.92		$	26.12		$	25.62		$	27.05		$	19.88
New annualized base rent per square foot	$	23.33		$	25.74		$	27.32		$	26.85		$	31.53		$	22.79
% Change (Cash)		4.5	%		3.3	%		4.6	%		4.8	%		16.6	%		14.6	%
Combined
Number of leases		28			45			50			32			17			21
GLA		104,443			157,555			157,973			101,933			29,792			56,683
Expiring annualized base rent per square foot	$	22.86		$	25.23		$	26.68		$	26.03		$	26.18		$	22.02
New annualized base rent per square foot	$	24.68		$	26.20		$	27.78		$	27.27		$	29.11		$	25.21
% Change (Cash)		8.0	%		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.

Lease Expiration Table:


Year	Number of Expriring Leases	GLA of Expiring Leases	Percent of Total GLA Expiring		ABR of Expiring Leases⁽¹⁾		Percent of Total ABR Expiring		ABR Per Square Foot⁽²⁾
Vacant	—	39,041	3.2	%	$	—	—		$	—
2012	11	37,858	3.1	%		797,279	3.0	%		21.06
2013	36	115,530	9.4	%		2,717,096	10.2	%		23.52
2014	37	98,233	7.9	%		3,018,226	11.4	%		30.73
2015	43	142,416	11.6	%		4,126,144	15.6	%		28.97
2016	41	121,236	9.9	%		3,589,195	13.5	%		29.61
2017	24	229,566	18.7	%		4,265,398	16.1	%		18.58
2018	10	29,293	2.4	%		724,572	2.7	%		24.74
2019	8	26,281	2.1	%		734,014	2.8	%		27.93
2020	6	80,985	6.6	%		1,118,889	4.2	%		13.82
2021	8	105,587	8.6	%		1,765,878	6.7	%		16.72
2022 +	15	203,154	16.5	%		3,668,641	13.8	%		18.06
Total / Weighted Avg	239	1,229,180			$	26,525,332			$	22.29


	(1)	ABR for expiring leases is calculated by multiplying (i) the monthly base rent as of September 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.

Lease Distribution Table:


GLA Range	Number of Expiring Leases	Percentage of Leases		Total GLA	Total Leased GLA	Percent Leased		Percentage of Leased GLA		Annualized Base Rent⁽¹⁾		Percentage of ABR		ABR Per Leased Square Foot⁽²⁾

2,500 or less	138	57.8	%	232,875	212,142	91.1	%	17.8	%	$	6,380,223	24.1	%		30.08
2,501 - 5,000	50	20.9	%	181,064	177,897	98.3	%	15.0	%		5,625,735	21.2	%		31.62
5,001 - 10,000	32	13.4	%	247,616	232,475	93.9	%	19.5	%		6,113,348	23.0	%		26.30
10,000 - 20,000	11	4.6	%	139,988	139,988	100.0	%	11.8	%		3,413,670	12.9	%		24.39
greater than 20,000	8	3.3	%	427,637	427,637	100.0	%	35.9	%		4,992,356	18.8	%		11.67
Total portfolio	239	100.0	%	1,229,180	1,190,139	96.8	%	100.0	%	$	26,525,332	100.0	%		22.29


	(1)	Annualized base rent is calculated by multiplying (i) the monthly base rent as of September 30, 2012, for leases in the applicable GLA range by (ii) 12.

	(2)	ABR per leased square foot is calculated by dividing (i) ABR for leases in the applicable GLA range by (ii) total leased GLA for leases in the applicable GLA range.

AmREIT, Inc. - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION - November 5, 2012

Attached files

AmREIT, Inc. Reports