Great Lakes REIT Reports $0.58 EPS and $0.50 FFO Per Common Share for Third Quarter 2002.Business Editors OAK BROOK, Ill.--(BUSINESS WIRE)--Nov. 1, 2002 Great Lakes Great Lakes, group of five freshwater lakes, central North America, creating a natural border between the United States and Canada and forming the largest body of freshwater in the world, with a combined surface area of c.95,000 sq mi (246,050 sq km). REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). (NYSE NYSE See: New York Stock Exchange : GL): Great Lakes REIT Third Quarter Highlights -- Net Income of $9.5 million, or $0.57 per common share -- Funds From Operations (FFO) of $8.2 million, or $0.50 per common share -- EBITDA of $13.1 million -- Average occupancy of 83% for the third quarter of 2002 -- Lease rates increased 12% on spaces that were renewed or re-leased in 2002 -- Monthly cash dividend of $0.135 per common share paid in August, September and October 2002. Great Lakes REIT (NYSE: GL), a real estate investment trust which holds a portfolio of Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and office properties, today announced third quarter 2002 net income of $9.5 million, or $0.57 per common share, and funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) of $8.2 million, or $0.50 per common share. This compares to net income of $4.5 million or $0.27 per common share, and FFO of $9.2 million or $0.55 per common share, for the third quarter of 2001. Net income for the third quarter of 2002 included $6.1 million, or $0.37 per common share of gain on sale of properties, compared with the third quarter of 2001, during which there were no property sales and no gain on sale additions to net income. For the nine months ended September September: see month. 30, 2002, the Company reported net income of $18.9 million, or $1.14 per common share, compared to $14.3 million, or $0.86 per common share, for the comparable period of 2001. During the nine months ended September 30, 2002, property sale gains contributed $7.2 million to net income, or $0.43 per share, compared with the nine months ended September 30, 2001 during which there were no property sales and no gain on sale additions to net income. Funds from operations totaled $26.3 million, or $1.59 per common share, for the nine months ended September 30, 2002, a decrease of $.08 per common share from the same period in 2001. "Our FFO per common share for the third quarter was down due in part to a temporary decline in revenues caused by the sales of our Northbrook Northbrook, village (1990 pop. 32,308), Cook co., NE Ill., a suburb of Chicago; settled 1836. It was incorporated as Shermerville in 1901 and was reincorporated as Northbrook in 1923. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. and Ann Arbor, Michigan  “Ann Arbor” redirects here. For other uses, see Ann Arbor (disambiguation). Ann Arbor is a city in the U.S. state of Michigan and the county seat of Washtenaw County. properties early in the quarter. However, our overall operating results for the nine months ended September 30, 2002 generally reflect the impact of declining occupancies in our markets and portfolio. We expect that the leasing environment in our markets will continue to be challenging during the balance of 2002 and 2003," commented Dick May, Great Lakes REIT's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We have taken proactive measures In antiterrorism, measures taken in the preventive stage of antiterrorism designed to harden targets and detect actions before they occur. to address issues raised by this very difficult leasing environment. One of these actions was the acquisition of a portfolio of medical office properties, which we completed after the close of the third quarter. These medical office properties are 99% leased and we expect they will enhance our property portfolio by providing stable cash flows and offering strong potential for income growth. In addition, we expect to complete the refinancing Refinancing An extension and/or increase in amount of existing debt. of our unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. bank credit facility. This will enable us to take advantage of current low long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. rates, and fix rates on a higher portion of our outstanding debt. Finally, we continue to focus our leasing efforts on maintaining our occupancies rather than emphasizing growth in rental rates." "Although we don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. anticipate the leasing environment in our Midwestern office markets will improve meaningfully this year or next year, we do believe that the fundamental long-term strength of our markets remains intact," continued Mr. May. "Eventually the business climate will improve, leasing demand will rise, and portfolio occupancies for Great Lakes REIT and others will return to more normalized levels. When this occurs, Great Lakes REIT will be poised for significant FFO gains. Average occupancy levels for the Company's portfolio have exceeded 90% over the last five years, considerably above the current and project year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. levels of 83%." Based on current market conditions, the Company expects 2002 FFO per common share in the range of $2.13 to 2.15, and EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. in the range of $1.43 to $1.45 per common share. The Company currently expects that 2003 FFO per share will be between $1.85 and $2.00. This guidance assumes continued softness in the economy and office markets and the acquisition of $75 million of new properties during the year. Portfolio Performance Total revenues increased by 0.7% to $24.9 million in the third quarter of 2002 from $24.7 million in last year's third quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become decreased to $13.1 million in the third quarter of 2002 as compared to $13.9 million for the third quarter of 2001. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of decreased 5.4% (cash basis) for the three months ended September 30, 2002, as compared to the third quarter of 2001 primarily as a result of the decline in occupancy quarter over quarter. Same store sales decreased 7.7% for the nine months ended September 30, 2002 compared to the same period of 2001 due to occupancy declines. Balance Sheet, Market Value and Liquidity At September 30, 2002, the Company's total debt and equity market capitalization Equity Market Capitalization A measure of the total market value of an equity market. The measure is calculated by taking the market capitalization of all companies in the equity market and adding them together to arrive at the capitalization for the market as a whole. was $593.4 million. Debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. was 44.9%, based on equity market capitalization of $327.2 million, compared to 42.8% at June June: see month. 30, 2002. EBITDA coverage of interest expense was 3.4 times for the quarter ended September 30, 2002 and EBITDA coverage of interest and preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) was 2.8 times for the same period. Both decreased from the quarter ended June 30, 2002. The Company had $266.2 million of total debt outstanding at September 30, 2002. The interest rate on approximately 74% of this debt was effectively fixed at an average interest rate of 6.41%. At September 30, 2002, Great Lakes REIT had $114.5 million outstanding and $36.5 million available for future borrowings under the terms of its unsecured bank credit facility that the Company uses for acquisitions, development activities and for working capital needs. The Company has obtained a commitment for a new $165 million mortgage loan to be secured by certain of its properties. The committed loan has fixed and floating rate components and a staggered maturity schedule. Of that amount, $75 million of the loan would be fixed at rates between 4.3% and 4.8% for a term of five to seven years, $50 million of the loan would be fixed under the terms of the interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. the Company completed in 2001, and the balance of the loan will float at 1.6 % over LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . Upon closing, the proceeds of the new loan would be used to retire the Company's unsecured bank credit facility. The new loan has received all required lender approvals, and the loan is expected to close in late November November: see month. 2002. However, the funding of the loan remains subject to lender due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and closing conditions and there can be no assurance that the loan will be completed on the terms and conditions contemplated. Dividends and Funds Available for Distribution (FAD FAD - ["FAD, A Simple and Powerful Database Language", F. Bancilon et al, Proc 13th Intl Conf on VLDB, Brighton, England, Sep 1987]. ) In August, September and October October: see month. 2002, the Company paid a regular monthly cash dividend of $0.135 per common share. The FFO payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. for the third quarter of 2002 was 81%. Funds Available for Distribution (FAD) totaled $7.1 million for the three months ended September 30, 2002, or $0.43 per common share. The Company expects FAD of $1.72 to $1.76 per common share for the year ending December December: see month. 31, 2002. Outlook Leasing Activity Update The Company has renewed or re-leased 684,000 square feet of its 1,230,000 square feet of rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. exposure for 2002 at net rents averaging 12% higher than rents on the expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. leases. Although current market rents are down significantly from 2001 peak levels and still declining, Great Lakes REIT has been able to increase rents on most of its lease renewals because many of the Company's expiring leases were at rates below market rates. These below market rents were in place when the Company originally acquired many of its properties and were a primary reason for their acquisition. Leasing Outlook During third quarter, 2002, there was leased space contraction Relativistic effect of apparent contraction of coordinates of moving reference frame in the direction of motion when seen from non moving reference frame. Results mathematically from Lorentz transformations. Also known as Lorentz contraction. in the Company's markets. This contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction , along with new property deliveries, has led to vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. increases in the Company's markets. Although the pace of leased space contraction and property deliveries has slowed compared to the pace during the first six months of 2002, there is no reversal of this trend forecasted for 2002 or 2003, and the Company anticipates a difficult leasing environment throughout 2002 and 2003. Great Lakes REIT's primary focus is re-leasing the approximately 245,000 square feet of uncommitted leases expiring during the balance of 2002. For the nine months ended September 30, 2002, Great Lakes REIT averaged approximately 29,000 square feet of new leasing activity per month. In addition, the Company expects to lease an average of 29,000 square feet per month during the remainder of 2002. Based on this pace of leasing, the Company expects that its portfolio occupancy will be approximately 83% at December 31, 2002. Based on current projections, the Company expects that average portfolio occupancy during 2003 will be in the range of 77% to 80%. Tenant Credit Issues As of November 1, 2002, several tenants were in default under their leases for failure to make rent payments. Several other tenants that are not currently in default are experiencing financial difficulties which may lead to lease defaults. These tenant defaults may adversely impact the Company's revenue in 2002 and 2003. Legion legion, large unit of the Roman army. It came into prominence c.400 B.C. It originally consisted of 3,000 to 4,000 men drawn into eight ranks: the first six ranks, called hoplites, were heavily armed, while the last two, called velites, were only lightly armed. Insurance Company, which leases 58,000 square feet of space at Milwaukee Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. Center and represented 1.48% of the Company's aggregate portfolio annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. base rent as of December 31, 2001, was placed in rehabilitation rehabilitation: see physical therapy. by the Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York Department of Insurance on April 1, 2002. After completing its review, the Pennsylvania Department of Insurance has recommended to the Commonwealth Court that Legion Insurance Company be liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. . The Commonwealth Court has not yet approved the recommendation of the Pennsylvania Department of Insurance. Based on currently available information, the Company believes it is more likely than not that Legion will fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. all terms of its lease in 2002 and 2003. Legion Insurance Company is current on its rental payments to date. The Legion lease specifies a termination date termination date, n See expiration date. of February February: see month. 28, 2006. Jones Cyber Solutions, Ltd., which leases 43,000 square feet of office space at 116 Inverness Inverness, town, Scotland Inverness (ĭn'vərnĕs`), town (1991 pop. 39,736), Highland, N Scotland, on the Moray Firth at the mouth of the Ness River. Drive, Englewood, Colorado Englewood is a city in Arapahoe County, Colorado, USA. As of 2005, the city is estimated to have a total population of 32,350.[5] It is part of the Denver-Aurora Metropolitan Area. , is in default under the terms of its lease that expires January January: see month. 31, 2006. The Company is currently negotiating a termination agreement with this tenant and expects to receive rent for the period through March 31, 2003. The lease will terminate as of that date. Acquisitions and Dispositions The Company sold its property located at 160 Hansen Han·sen , Gerhard Henrik Armauer 1746-1845. Norwegian physician and bacteriologist who discovered (1869) the leprosy bacillus. Court, Wood Dale, Illinois Wood Dale is a city in DuPage County, Illinois, United States. The population was 13,535 at the 2000 census. Geography Wood Dale is located at (41.963062, -87.978347)GR1. , on April 22, 2002 for a contract price of $2.3 million, resulting in a gain on sale of $1.0 million in the second quarter of 2002. The Company sold its property located at 3400 Dundee Dundee, city (1991 pop. 172,294) and council area, E central Scotland, on the Firth of Tay. It is a port and manufacturing city. Dundee is historically known for its manufacture and processing of jute. Its marmalade is also famous. Road, Northbrook, Illinois, on July July: see month. 1, 2002 for a contract price of $8.2 million, resulting in a gain on sale of $3.8 million recognized in the third quarter of 2002. The Company sold its property located at 305, 315 and 325 Eisenhower Parkway Eisenhower Parkway is a highway in Essex County, New Jersey, located in the municipalities of Roseland and Livingston. Eisenhower Parkway dead ends at South Orange Avenue in Livingston and also dead ends just north of Interstate 280 in Roseland. , Ann Arbor, Michigan, on August 30, 2002 for a contract price of $21.8 million, resulting in a gain on sale of $2.4 million recognized in the third quarter of 2002. The Company has one non-core property held for sale and the sale is expected to close in November 2002. The Company is currently reviewing several other non-core assets for disposition but there can be no assurance that further sales will be completed. On August 1, 2002, the Company acquired 1111 Touhy Avenue, Des Plaines, Illinois “Des Plaines” redirects here. For the river, see Des Plaines River. Des Plaines (pronounced IPA [dɛsˈpleɪnz]) is a city in Cook County, Illinois, United States. , a 148,000 square foot office building, for a contract price of $10.1 million. Funds for the purchase came from the sale of 160 Hansen Court and borrowings under the Company's unsecured bank credit facility. On October 1, 2002, the Company acquired eight medical office buildings in metropolitan Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. totaling 459,000 square feet for a contract price of $59.6 million. In connection with this acquisition, the Company entered into a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants mortgage loan in an amount of $36.0 million. The loan is due October 1, 2003 and bears interest at LIBOR plus 1.85% for the first six months of the loan term and LIBOR plus 2.5% for the second six months of the loan term. Funds for this acquisition came from the sale of the Ann Arbor Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as properties and the $36.0 million loan described above. On October 15, 2002, the Company acquired 387 Shuman Shuman as a surname may refer to:
Great Lakes REIT is a fully integrated, self-administered and self-managed real estate investment trust with a current portfolio of 46 properties totaling 6.0 million square feet of office space in suburban areas of Chicago, Milwaukee, Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. , Columbus, Minneapolis, Denver and Cincinnati. A copy of the Company's supplemental financial information for the quarter ended September 30, 2002, is available on the Company's web site under the Investor section at www.greatlakesreit.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve numerous risks and uncertainties. Statements in this document regarding the Company's expectations for FFO, earnings per share, FAD, financing transactions, agreements with tenants in default, rental rates, rental rate increases, leasing activity, occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) , acquisition and disposition volume and opportunities, future growth prospects, the future strength of Midwestern office markets, the anticipated effect of tenant defaults and anticipated market and other economic conditions are forward-looking within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are based on what the Company believes to be reasonable assumptions and management's current expectations; however, actual results may vary from those implied by such forward-looking statements. Key factors that may cause actual results to differ from projected results include changes in: interest rates; conditions in the financial markets generally and the market for real estate finance specifically; local and/or national economic conditions; the pace of office space development and sub-lease availability; tenant office space demand; the financial position of the Company's tenants, including changes that may lead to increases in tenant defaults; actual tenant default rates compared to anticipated default rates; and other risks inherent in the real estate business. For more information, refer to Great Lakes REIT's filings with the Securities and Exchange Commission. Financial Tables to Follow
Great Lakes REIT
Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
Three months ended September 30,
---------------------------------
2002 2001
---------------------------------
Revenues:
Rental $18,931 $18,657
Reimbursements 5,094 5,186
Parking 118 116
Telecommunications 56 148
Tenant service 128 107
Interest 330 383
Other 231 116
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Total revenues 24,888 24,713
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Expenses:
Real estate taxes 3,961 3,988
Other property operating 6,684 6,400
General and administrative 1,318 1,210
Interest 3,807 3,676
Depreciation and amortization 5,007 4,563
---------------------------------
Total expenses 20,777 19,837
---------------------------------
Income from continuing operations 4,111 4,876
Gain on sale of properties 6,130 -
Discontinued operations, net 134 525
Minority interests (10) (12)
---------------------------------
Net income 10,365 5,389
Income allocated to preferred
shareholders 914 914
---------------------------------
Net income applicable to
common shares $9,451 $4,475
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Earnings per common share - basic $0.58 $0.27
=================================
Weighted average common shares
outstanding - basic 16,372 16,580
=================================
Diluted earnings per common share $0.57 $0.27
=================================
Weighted average common shares
outstanding - diluted 16,552 16,737
=================================
Comprehensive income:
Net income $10,365 $5,389
Change in fair value of interest
rate swaps (1,023) -
---------------------------------
Total comprehensive income $9,342 $5,389
=================================
Great Lakes REIT
Consolidated Statements of Income (unaudited)
(In thousands, except per share data)
Nine months ended September 30,
---------------------------------
2002 2001
---------------------------------
Revenues:
Rental $56,697 $55,005
Reimbursements 16,028 15,199
Parking 373 309
Telecommunications 119 370
Tenant service 257 284
Interest 1,000 1,167
Other 698 443
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Total revenues 75,172 72,777
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Expenses:
Real estate taxes 12,049 11,342
Other property operating 19,856 18,293
General and administrative 3,888 3,835
Interest 11,334 10,713
Depreciation and amortization 14,362 13,202
---------------------------------
Total expenses 61,489 57,385
---------------------------------
Income from continuing operations 13,683 15,392
Gain on sale of properties 7,165 -
Discontinued operations, net 812 1,730
Minority interests (34) (37)
---------------------------------
Net income 21,626 17,085
Income allocated to preferred
shareholders 2,742 2,742
---------------------------------
Net income applicable to
common shares $18,884 $14,343
=================================
Earnings per common share - basic $1.15 $0.87
=================================
Weighted average common shares
outstanding - basic 16,370 16,572
=================================
Diluted earnings per common share $1.14 $0.86
=================================
Weighted average common shares
outstanding - diluted 16,532 16,727
=================================
Comprehensive income:
Net income $21,626 $17,085
Change in fair value of interest
rate swaps (1,646) -
---------------------------------
Total comprehensive income $19,980 $17,085
=================================
Great Lakes REIT
Funds From Operations and Funds Available for Distribution (unaudited)
(In thousands, except per share data)
Three months ended
Funds From Operations: 09/30/2002 09/30/2001
---------------------------------
Net income applicable to
common shares $9,451 $4,475
Adjustments:
Real estate depreciation 4,904 4,661
Minority interest 10 13
Gain on sale of properties (6,130) -
---------------------------------
Funds from operations $8,235 $9,149
=================================
Diluted funds from operations
per share $0.50 $0.55
=================================
Weighted average common shares
outstanding - diluted 16,552 16,737
=================================
Funds Available for Distribution:
Funds from operations $8,235 $9,149
Adjustments:
Straight-line rents (107) -
Other depreciation and amortization 241 249
Capital expenditures (1,317) (1,764)
---------------------------------
Funds available for distribution $7,052 $7,634
=================================
Weighted average common shares
outstanding - diluted 16,552 16,737
=================================
Diluted funds available for
distribution per share $0.43 $0.46
=================================
Great Lakes REIT
Funds From Operations and Funds Available for Distribution (unaudited)
(In thousands, except per share data)
Nine months ended
Funds From Operations: 09/30/2002 09/30/2001
---------------------------------
Net income applicable to
common shares $18,884 $14,343
Adjustments:
Real estate depreciation 14,578 13,473
Minority interest 36 41
Gain on sale of properties (7,165) -
---------------------------------
Funds from operations $26,333 $27,857
=================================
Diluted funds from operations
per share $1.59 $1.67
=================================
Weighted average common shares
outstanding - diluted 16,532 16,727
=================================
Funds Available for Distribution:
Funds from operations $26,333 $27,857
Adjustments:
Straight-line rents (338) -
Other depreciation and amortization 746 749
Capital expenditures (5,140) (5,435)
---------------------------------
Funds available for distribution $21,601 $23,171
=================================
Weighted average common shares
outstanding - diluted 16,532 16,727
=================================
Diluted funds available for
distribution per share $1.31 $1.39
=================================
Great Lakes REIT
Consolidated Balance Sheets (unaudited)
(In thousands, except per share data)
September 30, December 31,
---------------------------------
2002 2001
---------------------------------
Assets
Properties:
Land $63,065 $60,199
Buildings and improvements 458,007 434,204
---------------------------------
521,072 494,403
Less accumulated depreciation 63,371 53,792
---------------------------------
457,701 440,611
Assets held for sale, net 767 25,135
Cash and cash equivalents 23,324 2,896
Real estate tax escrows 288 225
Rents receivable 6,478 6,661
Deferred financing and leasing costs,
net of accumulated amortization 8,736 6,674
Goodwill, net of accumulated
amortization 1,061 1,061
Other assets 2,887 3,229
---------------------------------
Total assets $501,242 $486,492
=================================
Liabilities and shareholders' equity:
Bank loan payable $114,450 $102,250
Mortgage loans payable 148,123 150,868
Bonds payable 3,620 3,960
Accounts payable and accrued
liabilities 4,341 2,960
Dividends payable 2,538 -
Accrued real estate taxes 14,183 12,710
Prepaid rent 4,270 3,539
Security deposits 1,532 1,629
---------------------------------
Total liabilities 293,057 277,916
---------------------------------
Minority interests 676 682
---------------------------------
Preferred shares of beneficial
interest ($0.01 par value,
10,000 shares authorized;
1,500 9 3/4% Series A Cumulative
Redeemable shares, with a $25.00
per share Liquidation Preference,
issued and outstanding in
2001 and 2000) 37,500 37,500
Common shares of beneficial interest
($0.01 par value, 60,000 shares
authorized; 18,313 and 18,275 shares
issued in 2002 and 2001, respectively) 183 183
Paid-in-capital 235,484 235,371
Retained earnings (deficit) (16,975) (15,927)
Employee share loans (18,101) (20,083)
Deferred compensation (2,111) (2,325)
Accumulated other comprehensive income
(loss) (1,147) 499
Treasury shares, at cost (1,772 shares) (27,324) (27,324)
---------------------------------
Total shareholders' equity 207,509 207,894
---------------------------------
Total liabilities and
shareholders' equity $501,242 $486,492
=================================
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