First Union Supplementary Financial Third Quarter Information.
CLEVELAND--(BUSINESS WIRE)--Oct. 30, 1998-- -0-
REAL ESTATE INVESTMENTS
Supplementary Financial Information
Third Quarter 1998 and
Nine Months Ended September 30, 1998
Contents:
_____________________________________________________________________
_____________________________________________________________________
Page 1: Estimated Funds From Operations Annual Run Rate
Page 2: Income Statement Summary, Comparative Data and Key Ratios
Page 3: Balance Sheet and Key Ratios
Page 4: Summary of Outstanding Debt
Page 5: Capital Expenditures Analysis
Page 6: General and Administrative Expense Analysis
Page 7-8: Occupancy and Base Minimum Rent Summary
Page 9-10: Property Segment Net Operating Income Breakdown
Page 11: Imperial Parking / Imperial Services Detail
Page 12: FFO Reconciliation to Reported Income
Page 13: Breakdown of FFO Contribution by Segment
Page 1
ESTIMATED FUNDS FROM OPERATIONS ANNUAL RUN RATE
Property NOI:
Retail $57,677 Trailing 12 month results
Office / redevelopment 6,369 Trailing 12 month results (1)
Apartments 9,145 Trailing 12 month results
Owned parking 8,000 Trailing 12 month results (1)
Imperial Parking / Services 7,698 See footnote (2)
Interest income:
Mortgage loans 491 Current balances times
respective rates
Short term investments 938 Current balance at 5.75%
interest rate
Equity in JV income 122 Trailing 12 month results
JV management fees 340 Trailing 12 month results
Other income 774 Trailing 12 month results
______
91,554
______
Interest expense
Mortgage loans 29,001 Current balances times
respective rates
Senior notes 1,097 Current balance at 8.875% rate
Bridge loan 8,887 Current balance at 9.875% rate
Bank loans and other 9,507 Current balances times
respective rates; other
trailing 12 month results
General and administrative:
First Union 6,000 Per G&A analysis, page 6 of
package
Imperial 5,200 Per G&A analysis, page 6 of
_____ package
59,692
______
Subtotal 31,862
FFO definition adjustment (1,800)
______
Current annual FFO run rate,
before preferred dividend $30,062
Outstanding shares, fully
converted basis 35,881
_______
FFO run rate per share, fully
converted basis $0.84
_______
_______
(1) Reflects all properties at actual trailing 12 month totals
except development properties, which are included at current
quarter NOI, annualized, and properties which have been in the
portfolio less than 12 months, which are included on an annualized
basis.
(2) Reflects all divisions on a trailing 12 month basis except
equipment division, which is included at zero EBITDA.
The statements contained in this analysis that are forward-looking
are based on current expectations that are subject to a number of
uncertainties and risks, and actual results may differ materially.
The uncertainties and risks include, but are not limited to,
changes in market activity, changes in local real estate conditions
and markets, actions by competitors, interest rate movements and
general economic conditions.
Page 2
INCOME STATEMENT SUMMARY AND ANALYSIS
3 months ended 9 months ended
September 30, September 30,
________________ _________________
1998 1997 1998 1997
_________ _______ ________ ________
______________________________________________________________________
Net Income
Before preferred dividend ($10,949) $1,945 ($23,240) $6,057
After preferred dividend,
applicable to shares of
beneficial interest ($11,657) $738 ($25,531) $2,435
Funds from Operations
(see page 12 for detail)
Before preferred dividend ($2,868) $6,987 ($11,875) $18,587
After preferred dividend,
applicable to shares of
beneficial interest ($3,576) $5,780 ($14,166) $14,965
______________________________________________________________________
______________________________________________________________________
Per Share Data
Net Income (Loss) After
Preferred Dividend
Before capital gains ($0.32) $0.03 ($1.06) $0.10
After capital gains ($0.37) $0.03 ($0.84) $0.10
Funds from Operations
Before preferred dividend ($0.08) $0.20 ($0.33) $0.58
After preferred dividend,
applicable to shares of
beneficial interest ($0.11) $0.21 ($0.46) $0.62
______________________________________________________________________
______________________________________________________________________
Dividends Declared
Per share of beneficial interest -- $0.11 $0.11 $0.33
Payout ratio as a % of FFO N/A 55% N/A 56%
______________________________________________________________________
______________________________________________________________________
Property Net Operating Income
Total $19,465 $14,961 $59,889 $36,842
30.1% increase 62.6% increase
Same property only (1) $19,372 $19,002 $53,246 $52,006
1.9% increase 2.4% increase
(1) Includes only those properties whose operations are reflected
in both comparative periods; includes operating results from
Southwest retail properties even for periods in which joint
venture assets were not reflected on a consolidated basis in the
financial statements. Includes adjustment for impact of EITF 98-9
on reporting of overage rent income.
______________________________________________________________________
______________________________________________________________________
Leverage Tests (1)
Total liabilities to EBITDA 7.1 to 1 5.0 to 1
EBITDA to principal plus interest 1.4 to 1 1.9 to 1
EBITDA to interest 1.5 to 1 2.0 to 1
(1) Calculated on a trailing twelve month basis only, after
adjustment for extraordinary items
______________________________________________________________________
Page 3
COMPARATIVE BALANCE SHEETS
(in thousands, except shares)
December 31, June 30, Sept. 30,
1997 1998 1998
___________ ________ __________
ASSETS
______
Investments in real estate
Land $109,308 $137,695 $139,488
Buildings and improvements 648,571 692,827 702,277
________ ________ ________
757,879 830,522 841,765
Less - Accumulated depreciation (113,858) (122,992) (127,409)
________ ________ ________
Total investments in
real estate 644,021 707,530 714,356
Investment in joint venture 1,575 1,610 1,598
Mortgage loans receivable 30,686 5,534 5,521
Cash and cash equivalents 16,864 24,380 23,200
Accounts receivable and
prepayments 20,070 16,216 18,513
Investments 13,103 1,624
Intangibles 70,673 66,947 63,383
Deferred charges, net 6,300 6,210 6,182
Other 16,729 16,901 16,828
________ ________ ________
$820,021 $846,952 $849,581
________ ________ ________
________ ________ ________
LIABILITIES AND SHAREHOLDERS' EQUITY
____________________________________
Liabilities
Mortgage loans $313,537 $343,207 $346,065
Senior notes 100,000 100,000 12,538
Bank loans 69,922 95,294 101,995
Notes payable 94,998
Accounts payable and accrued
liabilities 38,000 41,229 38,249
Other 32,410 12,245 12,978
________ ________ ________
553,869 591,975 606,823
Minority Interest 1,047 1,047 1,047
Shareholders' equity 265,105 253,930 241,711
________ ________ ________
$820,021 $846,952 $849,581
________ ________ ________
________ ________ ________
Capitalization Summary
______________________
Preferred shares of
beneficial interest
Outstanding, $25 liquidation
preference 2,300,000 1,349,000 1,349,000
Shares of beneficial
interest - basic
Total outstanding at
quarter end 28,179,000 31,431,000 31,416,000
Weighted average
outstanding for quarter 27,514,000 31,017,000 31,431,000
Weighted average
outstanding, year to date 24,537,000 30,128,000 30,561,000
Weighted average
outstanding shares,
as fully converted
For current quarter 36,009,000 35,499,000 35,901,000
For year to date 33,028,000 35,422,000 35,516,000
Key Debt Ratios
_______________
Assuming equity at book value 65% 68% 70%
Assuming equity at
market value 46% 62% 75%
As % of gross cost of
real estate 61% 64% 65%
Page 4
SUMMARY OF OUTSTANDING DEBT
MORTGAGE DEBT
_____________
Balance at Interest
Property Lender Sept. 30, 1998 Rate Maturity
________ ______ ______________ ____ ________
Crossroads Center
(Minn.) CIGNA $47,707,000 7.49% December 2002
Mountaineer Mall American
General 3,791,000 8.25% June 2009
Woodland Commons Principal
Financial 11,551,000 7.75% September 2006
Cross-collateralized
package: GMAC
Commercial
Mortgage 162,479,000 8.43% October 2006
Alexandria Mall, Brazos Mall,
Killeen Mall, Mesilla Valley Mall,
Park Plaza, Shawnee Mall and
Villa Linda Mall
Pecanland Mall TIAA 38,838,000 12.25% (1) Dec. 2017
Beech Lake Apartments CIGNA 12,032,000 6.87% January 2006
Hunters Creek
Apartments PNC Bank 2,711,000 8.47% July 2002
Somerset Lakes
Apartments Providian
Life 14,470,000 7.65% May 2006
Steeplechase Apartments Northwestern
Life 8,669,000 7.39% May 2006
Huntington Garage Aid
Association
for
Lutherans 8,268,000 8.55% January 2014
60 East Long Street Marwed
Garage Corporation 875,000 8.25% October 2003
60 East Long Street Midland Mutual
Garage Life
Insurance 674,000 8.63% February 2009
Madison and Wells
Garage G.E.
Capital 30,000,000 LIBOR+175 May 2001
Printer's Alley Garage SouthTrust
Bank 4,000,000 LIBOR+175 July 2001
______________________
Total $346,065,000 8.45%
______________________
______________________
Unconsolidated joint venture mortgage debt:
Temple Mall Northwestern
Life $19,516,000 10.00% March 2001
(1) Loan provides for participation in gross revenues in excess
of a breakpoint in addition to fixed interest rate.
BANK LOANS
__________
Balance Total
Outstanding Availability
at Sept. 30, at Sept. 30,
Borrower 1998 1998 Interest Rate
________ ___________ ____________ _____________
First Union Real Estate $80,300,000 $125,000,000 7.7%
Imperial Parking 21,695,000 $34,000,000 7.5%
____________
Total $101,995,000
____________
____________
SENIOR NOTES
____________
Balance Outstanding Interest
at September 30, 1998 Rate Maturity
_____________________ ________ ________
$12,538,000 8.875% October 2003
BRIDGE LOAN
___________
Balance Outstanding Interest
at September 30, 1998 Rate Maturity
_____________________ ________ ________
$90,000,000 9.875% February 1999
Page 5
CAPITAL EXPENDITURE ANALYSIS
(in thousands of dollars)
9 Months
Ended
Sept. 30,
1st Qtr. 2nd Qtr. 3rd Qtr. 1998
_______ _______ _______ _______
Retail Portfolio
Property Improvements $3,544 $2,854 $1,425 $7,823
Tenant Improvements
& Leasing Costs 1,348 819 1,107 3,274
_______ _______ _______ _______
4,892 3,673 2,532 11,097
_______ _______ _______ _______
Apartment Portfolio
Property Improvements 47 202 167 416
Equipment and Appliances 315 221 219 755
_______ _______ _______ _______
362 423 386 1,171
_______ _______ _______ _______
Office / Redevelopment Portfolio
Property Improvements 832 1,878 506 3,216
Tenant Improvements
& Leasing Costs 1,196 1,448 1,298 3,942
Dispositions -- (4,501) (4,501)
_______ _______ _______ _______
2,028 (1,175) 1,804 2,657
_______ _______ _______ _______
Parking Portfolio
Property Improvements 56 (109) 153 100
Equipment 9 -- 91 100
Property Acquisitions 62,485 -- 6,276 68,761
_______ _______ _______ _______
62,550 (109) 6,520 68,961
_______ _______ _______ _______
Grand Total $69,832 $2,812 $11,242 $83,886
_______ _______ _______ _______
_______ _______ _______ _______
Page 6
GENERAL AND ADMINISTRATIVE EXPENSE ANALYSIS
(in thousands of dollars)
9 months
1st Qtr. 2nd Qtr. 3rd Qtr. YTD
_______ _______ _______ _______
Regular recurring G&A:
First Union $1,723 $1,511 $1,323 $4,557
Imperial Parking 1,199 1,405 1,268 3,872
Extraordinary items:
Severance payment to
former CEO 3,448 3,448
Severance payments to
other employees 760 760
Reserve for anticipated
future severance payments 2,932 2,932
Reserve for loss of deposit
on proposed property
acquisition 2,250 2,250
Accrual for vesting of
restricted stock
resulting from change
in control 5,308 5,308
Advisory fee related to
proxy contest 1,086 1,086
Write-off of deferred
professional fees 148 974 225 1,347
Extraordinary trustee fees
and shareholder services
fees related to proxy fight 120 752 872
Accrual for legal fees
related to corporate
restructuring 1,600 1,600
Termination of Canadian
computer project 400 400
Imperial Parking U.S. business
development start-up 314 314
Retention of lobbyist for
tax legislation 70 120 190
Settlement of former
employee lawsuit 150 150
Reclass of foreign currency
loss from 2nd quarter 185 185
_______ _______ _______ _______
$3,260 $17,568 $8,443 $29,271
_______ _______ _______ _______
_______ _______ _______ _______
Page 7
OCCUPANCY AND BASE MINIMUM RENT SUMMARY
Page 1 of 2
Total s.f. Owned s.f. (in 000's)
_________________________
(in 000's) Anchors Specialty Total
_________ _______ _________ _____
Original Retail
Crossroads Ft. Dodge, IA 429 126 206 332
Crossroads St. Cloud, MN 733 248 277 525
Fairgrounds
Square Reading, PA 723 302 235 537
Fingerlakes Auburn, NY 405 208 197 405
Kandi Willmar, MN 448 238 210 448
Mall 205 Portland, OR 432 81 174 255
Mountaineer Morgantown, WV 676 368 250 618
Plaza 205 Portland, OR 167 37 99 136
Two Rivers Clarksville, TN 233 119 114 233
Valley Yakima, WA 390 94 186 280
Valley
North Wenatchee, WA 267 91 79 170
Westgate
(Note A) Abilene, TX 163 62 6 68
Woodland
Commons Buffalo Grove,
IL 171 70 101 171
________________________________
Subtotal 5,237 2,044 2,134 4,178
_________________________________
Southwest Retail
Alexandria Alexandria, LA 899 243 391 634
Brazos Lake Jackson,
TX 707 290 307 597
Killeen Killeen, TX 579 82 266 348
Mesilla
Valley Las Cruces, NM 592 68 311 379
Park Plaza Little Rock,
AR 546 -- 262 262
Pecanland Monroe, LA 923 -- 358 358
Shawnee Shawnee, OK 445 68 164 232
Temple Temple, TX 575 248 218 466
Villa Linda Santa Fe, NM 570 72 278 350
_________________________________
Subtotal 5,836 1,071 2,555 3,626
_________________________________
Grand Total 11,073 3,115 4,689 7,804
_________________________________
_________________________________
SPECIALTY STORE OCCUPANCY AND AVERAGE BMR
_________________________________________
March 31, 1998 June 30, 1998
___________________ _________________
Average Average
% Occ. BMR/s.f. % Occ. BMR/s.f.
______ ________ ______ ________
Original Retail
Crossroads Ft. Dodge, IA 86% $8.28 86% $8.78
Crossroads St. Cloud, MN 94% $20.55 93% $21.02
Fairgrounds
Square Reading, PA 72% $15.72 74% $15.23
Fingerlakes Auburn, NY 56% $9.25 57% $8.73
Kandi Willmar, MN 75% $7.45 75% $7.68
Mall 205 Portland, OR 90% $9.50 89% $9.55
Mountaineer Morgantown, WV 62% $6.46 62% $6.34
Plaza 205 Portland, OR 100% $6.19 100% $6.19
Two Rivers Clarksville,
TN 62% $5.95 63% $6.00
Valley Yakima, WA 78% $6.30 78% $6.58
Valley
North Wenatchee, WA 59% $8.16 68% $7.12
Westgate
(Note A) Abilene, TX (Note A) -- --
Woodland
Commons Buffalo Grove,
IL 88% $16.49 88% $16.19
_______________ __________________
Subtotal 77% $10.97 77% $10.99
_______________ __________________
Southwest Retail
Alexandria Alexandria, LA 76% $11.81 76% $11.68
Brazos Lake Jackson,
TX 73% $9.60 74% $9.56
Killeen Killeen, TX 77% $16.02 76% $16.19
Mesilla
Valley Las Cruces, NM 82% $12.78 83% $13.06
Park Plaza Little Rock,
AR 98% $22.98 98% $23.39
Pecanland Monroe, LA 95% $18.69 95% $19.17
Shawnee Shawnee, OK 84% $13.93 84% $13.93
Temple Temple, TX 76% $12.60 78% $12.95
Villa Linda Santa Fe, NM 83% $14.87 83% $14.95
_______________ __________________
Subtotal 83% $15.10 83% $15.24
_______________ __________________
Grand Total 80% $13.30 80% $13.38
_______________ __________________
_______________ __________________
SPECIALTY STORE OCCUPANCY AND AVERAGE BMR
_________________________________________
Sept. 30, 1998
_______________
Average
% Occ. BMR/s.f.
______ _______
Original Retail
Crossroads Ft. Dodge, IA 86% $8.40
Crossroads St. Cloud, MN 97% $20.86
Fairgrounds
Square Reading, PA 74% $15.24
Fingerlakes Auburn, NY 55% $8.36
Kandi Willmar, MN 70% $7.84
Mall 205 Portland, OR 88% $9.54
Mountaineer Morgantown, WV 62% $6.34
Plaza 205 Portland, OR 100% $6.19
Two Rivers Clarksville,
TN 65% $5.98
Valley Yakima, WA 78% $6.55
Valley
North Wenatchee, WA 68% $7.12
Westgate
(Note A) Abilene, TX 40% $10.00
Woodland
Commons Buffalo Grove,
IL 88% $16.28
_______________
Subtotal 77% $11.01
_______________
Southwest Retail
Alexandria Alexandria, LA 85% $10.98
Brazos Lake Jackson,
TX 79% $9.62
Killeen Killeen, TX 76% $16.58
Mesilla
Valley Las Cruces, NM 86% $12.65
Park Plaza Little Rock,
AR 99% $23.48
Pecanland Monroe, LA 97% $18.97
Shawnee Shawnee, OK 84% $14.52
Temple Temple, TX 78% $12.87
Villa Linda Santa Fe, NM 81% $14.92
_______________
Subtotal 85% $15.05
_______________
Grand Total 82% $13.30
_______________
_______________
Vacant Owned Anchor Stores:
Fingerlakes Mall - 85,493 s.f.
Two Rivers Mall - 78,410 s.f.
Note A: Mall was demolished in 2nd quarter 1997 to prepare for
construction of new power center.
Page 8
OCCUPANCY AND BASE MINIMUM RENT SUMMARY
Page 2 of 2
Total s.f.
(in 000's)
________
Office / Office Redevelopment
Circle Tower Indianapolis, IN 102
55 Public Square Cleveland, OH 396
Henry C. Beck Shreveport, LA 186
North Valley Tech Center Denver, CO 484
Sutter Buttes Center Marysville, CA 427
______
Grand Total 1,595
______
______
March 31, 1998
__________________
Average
% Occ. BMR/s.f.
_______ _______
Office / Office Redevelopment
Circle Tower Indianapolis, IN 92% $13.26
55 Public Square Cleveland, OH 95% $12.29
Henry C. Beck Shreveport, LA 88% $7.83
North Valley Tech Center Denver, CO 42% $12.20
Sutter Buttes Center Marysville, CA 53% $5.36
__________________
Grand Total 67% $10.20
__________________
__________________
June 30, 1998
__________________
Average
% Occ. BMR/s.f.
_______ _______
Office / Office Redevelopment
Circle Tower Indianapolis, IN 93% $13.13
55 Public Square Cleveland, OH 91% $12.69
Henry C. Beck Shreveport, LA 87% $7.93
North Valley Tech Center Denver, CO 54% $12.16
Sutter Buttes Center Marysville, CA 53% $5.36
__________________
Grand Total 69% $10.41
__________________
__________________
Sept. 30, 1998
__________________
Average
% Occ. BMR/s.f.
_______ _______
Office / Office Redevelopment
Circle Tower Indianapolis, IN 90% $13.32
55 Public Square Cleveland, OH 93% $12.96
Henry C. Beck Shreveport, LA 87% $7.98
North Valley Tech Center Denver, CO 56% $13.76
Sutter Buttes Center Marysville, CA 54% $5.30
__________________
Grand Total 70% $10.90
__________________
__________________
No. of
Units
______
Apartments
Beech Lake Durham, NC 345
Briarwood Fayetteville, NC 274
Hunters Creek Cincinnati, OH 146
Somerset Lakes Indianapolis, IN 360
Steeplechase Cincinnati, OH 272
Walden Village Atlanta, GA 380
Windgate Place Charlotte, NC 196
Woodfield Gardens Charlotte, NC 132
______
Grand Total 2,105
______
______
March 31, 1998
__________________
% Occ. Avg. rent
(Note A) per unit
________ _________
Apartments
Beech Lake Durham, NC 97% $775
Briarwood Fayetteville, NC 89% $504
Hunters Creek Cincinnati, OH 98% $573
Somerset Lakes Indianapolis, IN 96% $842
Steeplechase Cincinnati, OH 92% $650
Walden Village Atlanta, GA 88% $612
Windgate Place Charlotte, NC 97% $504
Woodfield Gardens Charlotte, NC 93% $503
__________________
Grand Total 93% $652
__________________
__________________
June 30, 1998
__________________
% Occ. Avg. rent
(Note A) per unit
________ _________
Apartments
Beech Lake Durham, NC 92% $773
Briarwood Fayetteville, NC 89% $496
Hunters Creek Cincinnati, OH 98% $589
Somerset Lakes Indianapolis, IN 95% $853
Steeplechase Cincinnati, OH 94% $682
Walden Village Atlanta, GA 87% $618
Windgate Place Charlotte, NC 95% $512
Woodfield Gardens Charlotte, NC 96% $515
__________________
Grand Total 92% $659
__________________
__________________
Sept. 30, 1998
__________________
% Occ. Avg. rent
(Note A) per unit
________ _________
Apartments
Beech Lake Durham, NC 92% $752
Briarwood Fayetteville, NC 96% $516
Hunters Creek Cincinnati, OH 99% $594
Somerset Lakes Indianapolis, IN 96% $860
Steeplechase Cincinnati, OH 98% $694
Walden Village Atlanta, GA 93% $598
Windgate Place Charlotte, NC 96% $515
Woodfield Gardens Charlotte, NC 96% $515
__________________
Grand Total 95% $656
__________________
__________________
Note A: Apartment occupancy reflects average of month end occupancy
for each month of the quarter.
Page 9
PROPERTY NET OPERATING INCOME DETAIL BY SEGMENT
Page 1 of 2
(in thousands of dollars)
ORIGINAL RETAIL PORTFOLIO
_________________________
9 Month
1st Qtr. 2nd Qtr. 3rd Qtr. Total
_______ ________ ________ ________
Revenues
________
Base minimum rent $5,708 $5,686 $6,026 $17,420
Overage rent 731 717 -- 1,448
Tenant recoveries 2,688 2,773 2,776 8,237
Temporary tenant and other 438 309 334 1,081
_______ _______ __________________
9,565 9,485 9,136 28,186
_______ _______ __________________
Operating Expenses
__________________
Recoverable costs 3,988 3,547 3,970 11,505
Non-recoverable costs 418 417 456 1,291
_______ _______ __________________
4,406 3,964 4,426 12,796
Total Property NOI $5,159 $5,521 $4,710 $15,390
_______ _______ __________________
_______ _______ __________________
SOUTHWEST RETAIL PORTFOLIO
__________________________
(EXCLUDING UNCONSOLIDATED JOINT VENTURE)
________________________________________
9 Month
1st Qtr. 2nd Qtr. 3rd Qtr. Total
_______ _______ _______ _______
Revenues
________
Base minimum rent $7,993 $8,069 $8,228 $24,290
Overage rent 547 518 (16) 1,049
Tenant recoveries 5,045 5,069 4,997 15,111
Temporary tenant and other 474 594 524 1,592
_______ _______ __________________
14,059 14,250 13,733 42,042
_______ _______ __________________
Operating Expenses
__________________
Recoverable costs 5,224 5,333 5,624 16,181
Non-recoverable costs 738 580 538 1,856
_______ _______ __________________
5,962 5,913 6,162 18,037
_______ _______ __________________
Total Property NOI $8,097 $8,337 $7,571 $24,005
_______ _______ __________________
_______ _______ __________________
APARTMENT PORTFOLIO
___________________
9 Month
1st Qtr. 2nd Qtr. 3rd Qtr. Total
________ ________ ________ _______
Revenues
________
Rents $3,804 $3,817 $3,917 $11,538
Other revenues 186 322 250 758
_______ _______ __________________
3,990 4,139 4,167 12,296
_______ _______ __________________
Operating Expenses
__________________
Direct operating costs 1,325 1,230 1,397 3,952
Real estate taxes 275 293 293 861
Insurance 30 31 30 91
Utilities 262 223 204 689
_______ _______ __________________
1,892 1,777 1,924 5,593
_______ _______ __________________
Total Property NOI $2,098 $2,362 $2,243 $6,703
_______ _______ __________________
_______ _______ __________________
Page 10
PROPERTY NET OPERATING INCOME DETAIL BY SEGMENT
Page 2 of 2
(in thousands of dollars)
OFFICE / REDEVELOPMENT PORTFOLIO
________________________________
9 mo.
1st Qtr. 2nd Qtr. 3rd Qtr. Total
_______ _______ ________ ______
Revenues
________
Base minimum rent $2,985 $2,990 $3,139 $9,114
Tenant recoveries 383 511 404 1,298
Other income 240 37 16 293
_______ _______ ___________________
3,608 3,538 3,559 10,705
_______ _______ ___________________
Operating Expenses
__________________
Recoverable costs 1,718 1,650 1,549 4,917
Non-recoverable costs 332 328 401 1,061
_______ _______ ___________________
2,050 1,978 1,950 5,978
_______ _______ ___________________
Total Property NOI $1,558 $1,560 $1,609 $4,727
_______ _______ ___________________
_______ _______ ___________________
OWNED PARKING FACILITY PORTFOLIO
________________________________
9 mo.
1st Qtr. 2nd Qtr. 3rd Qtr. Total
_______ _______ ________ ______
Revenues $2,091 $2,769 $2,931 $7,791
Total operating costs (747) (859) (1,173) (2,779)
_______ _______ ___________________
Total Property NOI $1,344 $1,910 $1,758 $5,012
_______ _______ ___________________
_______ _______ ___________________
IMPERIAL PARKING AND IMPERIAL SERVICES
______________________________________
9 mo.
1st Qtr. 2nd Qtr. 3rd Qtr. Total
________ ________ ________ ________
Revenues $45,791 $46,497 $44,531 $136,819
Less:
Direct operating
costs (41,733) (41,726) (40,254) (123,713)
Property level G&A (3,168) (2,751) (2,663) (8,582)
Income taxes (326) (106) (40) (472)
_______ _______ ___________________
Contribution to
Property NOI $564 $1,914 $1,574 $4,052
_______ _______ ___________________
_______ _______ ___________________
Page 11
IMPERIAL PARKING / IMPERIAL SERVICES EBITDA ANALYSIS AND BUSINESS
ACTIVITY RECAP
3RD QUARTER 1998
___________________________________________________________________
EBITDA Breakdown
Imperial Parking
___________________________________________
Canada U.S. Asia Total
______ ____ ____ _____
Revenues $33,529 $7,009 $615 $41,153
Direct expenses 30,415 6,574 565 37,554
__________ __________ _________ _________
Gross margin 3,114 435 50 3,599
Division G&A 1,531 538 59 2,128
Taxes
__________ __________ _________ _________
Divisional EBITDA $1,583 ($103) ($9) $1,471
__________ __________ _________ _________
__________ __________ _________ _________
EBITDA Breakdown
Imperial Services
_______________________________________________
Equipment Security Collections Total
__________ __________ _________ _________
Revenues $188 $2,634 $556 $3,378
Direct expenses 146 2,111 443 2,700
__________ __________ _________ _________
Gross margin 42 523 113 678
Division G&A 80 455 535
Taxes
__________ __________ _________ _________
Divisional EBITDA ($38) $68 $113 $143
__________ __________ _________ _________
__________ __________ _________ _________
EBITDA Breakdown
Combined
Total
_________
Revenues $44,531
Direct expenses 40,254
_________
Gross margin 4,277
Division G&A 2,663
Taxes 40
_________
Divisional EBITDA 1,574
Corporate G&A 1,668
_________
Consolidated EBITDA ($94)
_________
_________
Parking Contract Activity
Imperial Parking
___________________________________________
Canada U.S. Asia Total
______ ____ ____ _____
3rd Party Locations,
Beginning of Qtr. 1,406 71 13 1,490
Locations Gained 59 6 -- 65
Locations Lost (27) (3) -- (30)
__________ __________ _________ _________
3rd Party Locations,
End of Qtr. 1,438 74 13 1,525
__________ __________ _________ _________
__________ __________ _________ _________
_________________________________________________________________
Pending Equipment Shipments (50-95% probability)
Shipment Sales Profit
Customer Date Price Margin
________ ____ _____ ______
Buffalo General Hospital Dec-98 400,000 140,000
BCE Place Dec-98 450,000 140,000
Europa Dec-98 300,000 105,000
B.C. Ferries Dec-98 400,000 120,000
Edmonton Regional Health Jan-99 1,500,000 525,000
City of San Diego Mar-99 1,500,000 420,000
City of Sacramento Dec-00 2,240,000 672,000
City of Santa Clara Dec-01 2,216,000 665,000
Others under $400,000 Various 1,792,000 517,000
_________________________
Total $ 10,798,000 $ 3,304,000
Note: All intercompany activity is excluded from Imperial numbers
reflected on this schedule.
Page 12
RECONCILIATION OF REPORTED NET INCOME TO REPORTED FFO
6 mo. 9 mo.
1st Qtr. 2nd Qtr. Total 3rd Qtr. Total
________ ________ ________ ________ ________
Property NOI
- Original retail $ 5,159 $ 5,521 $10,680 $ 4,710 $15,390
Southwest retail 8,097 8,337 16,434 7,571 24,005
Office/redevelopment 1,558 1,560 3,118 1,609 4,727
Apartments 2,098 2,362 4,460 2,243 6,703
Owned parking 1,344 1,910 3,254 1,758 5,012
Imperial Parking/Services 564 1,914 2,478 1,574 4,052
Interest income
- Mortgage loans 619 356 975 118 1,093
Short-term investments 229 455 684 227 911
Investments 190 110 300 2 302
Equity in JV income 24 11 35 (12) 23
JV management fees 98 80 178 84 262
Other income 90 157 247 194 441
________ ________ ________ ________ ________
20,070 22,773 42,843 20,078 62,921
________ ________ ________ ________ ________
Interest expense
- Mortgage loans 6,868 7,124 13,992 7,471 21,463
Senior notes 2,219 2,218 4,437 1,141 5,578
Bank loans and other 2,815 4,005 6,820 2,439 9,259
Notes payable --- --- --- 1,267 1,267
Depreciation & amortization 6,374 6,483 12,857 7,508 20,365
General & administrative 3,260 17,568 20,828 8,443 29,271
Litigation and proxy 931 3,917 4,848 --- 4,848
Foreign currency loss --- --- --- 1,125 1,125
________ ________ ________ ________ ________
22,467 41,315 63,782 29,394 93,176
________ ________ ________ ________ ________
Income (loss) before
capital gains (2,397) (18,542) (20,939) (9,316) (30,255)
Capital gains --- 8,648 8,648 --- 8,648
Extraordinary loss from early
extinguishment of debt --- --- --- (1,633) (1,633)
________ ________ ________ ________ ________
Net income before preferred
dividend (2,397) (9,894) (12,291) (10,949) (23,240)
Preferred dividend (875) (708) (1,583) (708) (2,291)
________ ________ ________ ________ ________
Net income applicable to
common shares (3,272) (10,602) (13,874) (11,657) (25,531)
FFO Reconciliation
Add back: Depreciation &
amortization 6,374 6,483 12,857 7,508 20,365
Less: Capital gains --- (8,648) (8,648) --- (8,648)
Add back: Extr'dinary loss
f/early extinguish. of debt --- --- --- 1,633 1,633
Less: Amortization of
deferred financing costs
included in above (486) (499) (985) (1,091) (2,076)
Add back: Dep'n netted
against JV net income 71 72 143 71 214
Other, net (14) (69) (83) (40) (123)
________ ________ ________ ________ ________
Net FFO after Preferred
Dividend $2,673 ($13,263)($10,590) ($3,576)($14,166)
________ ________ ________ ________ ________
________ ________ ________ ________ ________
Page 13
BREAKDOWN OF FFO CONTRIBUTION BY SEGMENT
(Dollars and shares in thousands)
3rd Quarter 1998
Office / Owned
Retail Redevelopment Apartments Parking
_______ _____________ __________ _______
Revenues
Rents $22,869 $3,559 $4,167 $2,931
Interest
- Mortgage loans
- Short-term
investments
- Investments
Equity in income from JV (12)
Management fees 84
Other
_______ _____________ __________ _______
22,941 3,559 4,167 2,931
_______ _____________ __________ _______
Expenses
Property operating
& r.e. taxes 10,588 1,950 1,924 1,173
Interest
- Mortgage loans 5,933 701 837
- Senior notes
- Bank loans and other
- Notes payable
General & administrative
Foreign currency loss
_______ _____________ __________ _______
16,521 1,950 2,625 2,010
_______ _____________ __________ _______
FFO before JV and
new definition FFO
dep'n & amort
adjustment 6,420 1,609 1,542 921
JV and "new FFO"
depreciation &
amortization adjust
_______ _____________ __________ _______
Net FFO before
preferred dividend $6,420 $1,609 $1,542 $921
_______ _____________ __________ _______
_______ _____________ __________ _______
Adjusted shares of
beneficial interest 35,901 35,901 35,901 35,901
FFO per share
contribution
(fully converted basis) $0.18 $0.04 $0.04 $0.03
Non-Allocated
Imperial Corporate Total
________ _____________ _______
Revenues
Rents $44,531 $78,057
Interest
- Mortgage loans $118 118
- Short-term
investments 227 227
- Investments 2 2
Equity in income from JV (12)
Management fees 84
Other 194 194
________ _____________ _______
44,531 541 78,670
________ _____________ _______
Expenses
Property operating
& r.e. taxes 42,957 58,592
Interest
- Mortgage loans 7,471
- Senior notes 1,141 1,141
- Bank loans and other 477 1,962 2,439
- Notes payable 1,267 1,267
General & administrative 1,668 6,775 8,443
Foreign currency loss 1,125 1,125
________ _____________ _______
45,102 12,270 80,478
________ _____________ _______
FFO before JV and
new definition FFO
dep'n & amort
adjustment (571) (11,729) (1,808)
JV and "new FFO"
depreciation &
amortization adjust (1,060) (1,060)
________ _____________ _______
Net FFO before
preferred dividend ($571) ($12,789) ($2,868)
________ _____________ _______
________ _____________ _______
Adjusted shares of
beneficial interest 35,901 35,901 35,901
FFO per share
contribution
(fully converted basis) ($0.02) ($0.36) ($0.08)
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Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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