AmREIT Reports Fourth Quarter Results and Announces 2013 Guidance

HOUSTON--()--AmREIT, Inc. (NYSE:AMRE) (“AmREIT” or the “Company”), today announced financial results for the quarter and year ended December 31, 2012 and its 2013 guidance.

Fourth Quarter and Year-to-Date Highlights:

Financial Results

  • Core Funds from Operations ("Core FFO") available to common stockholders for the fourth quarter of 2012 was $3.9 million, or $0.24 per share, compared to $4.5 million, or $0.39 per share for the comparable period in 2011. For the twelve months ended December 31, 2012, Core FFO was $14.6 million, or $1.08 per share, compared to $13.8 million, or $1.19 per share, for the comparable period in 2011.
  • FFO available to common stockholders for the fourth quarter of 2012 was $3.2 million, or $0.20 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2011. For the twelve months ended December 31, 2012, FFO was $13.9 million, or $1.03 per share, compared to $13.1 million, or $1.13 per share, for the comparable period in 2011.
  • Net income available to common stockholders for the fourth quarter of 2012 was $734,000, or $0.04 per share, compared to $1.2 million, or $0.11 per share, for the same period in 2011. For the twelve months ended December 31, 2012, net income was $4.5 million, or $0.32 per share, compared to $4.2 million, or $0.36 per share, for the same period in 2011. Net income for the three and twelve months ended December 31, 2011 was positively impacted by a gain on sale of approximately $417,000.

FFO and Core FFO are non-GAAP supplemental earnings measures that AmREIT consider meaningful in measuring its operating performance. A reconciliation of FFO and Core FFO to net income is attached to this press release.

Portfolio Results

  • In the fourth quarter of 2012, same-store net operating income (“NOI”) increased 3.2% over the prior year period. For the twelve months ended December 31, 2012, same-store NOI increased 3.0%, compared with the same period in 2011. From January 1, 2010 through December 31, 2012, AmREIT has experienced an average annual increase in same-store NOI of 3.2%.
  • Portfolio occupancy as of December 31, 2012 was 96.7%, an increase of approximately 80 basis points as compared to portfolio occupancy of 95.9% as of December 31, 2011.
  • During the fourth quarter of 2012, AmREIT signed eight leases for 30,373 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads (i.e. new leasing rate per square foot compared to the expiring leasing rate per square foot) increased 9.1% for renewals and increased 3.2% for new comparable leases. On a GAAP basis (which includes the effects of straight-line rent), leasing spreads increased 11.8% on renewals and 8.0% on new comparable leases.
  • For the twelve months ended December 31, 2012, AmREIT signed 39 leases for 145,828 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads increased 5.7% on renewals and 28.0% on new comparable leases. On a GAAP basis, leasing spreads increased 10.5% on renewals and 36.6% on new leases.

NOI is a non-GAAP supplemental earnings measure that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of NOI to net income is attached to this press release.

Dividends

  • AmREIT also announced today that the Company's Board of Directors has approved a regular quarterly cash dividend of $0.20 per share. The dividend will be paid on March 29, 2013 to all common stockholders of record on March 19, 2013.

Acquisitions and Dispositions

  • On December 12, 2012 AmREIT purchased Preston Royal Village Shopping Center, located at the northeast and northwest corners of Preston and Royal in the highly affluent Preston Hollow submarket of Dallas, Texas. Preston Royal Village Shopping Center is an approximately 230,000 square foot grocery-anchored shopping center that is 97% leased and occupied. The northwest corner of Preston and Royal is anchored by Tom Thumb (Safeway) and includes tenants such as Chico's, Barnes & Noble, Pinkberry and Dougherty's Pharmacy (an original tenant of the shopping center). The northeast corner of Preston and Royal is unanchored and includes tenants such as Bank of America, Starbucks, Omaha Steaks, Einstein Bagels, and Fed-Ex/Kinko's. The shopping center was acquired for a total of $66.9 million, including closing costs and prorations. The property was funded through a $31.2 million draw against our unsecured credit facility, $12.3 million in cash, and mortgage financing of $23.4 million secured mortgage with a 3.21% interest rate.
  • On January 24, 2013, we entered into an agreement with Goldman Sachs to form a joint venture through our contribution to a newly-organized single purpose entity of our MacArthur Park property as well as the acquisition by the joint venture of the contiguous property to the east (“MacArthur Park Phase I”), excluding Target. Goldman Sachs will contribute cash for a 70% interest in the joint venture. The joint venture would concurrently purchase MacArthur Park Phase I, currently owned by Farmers New World Life Insurance Company, for approximately $26.2 million and place mortgage financing on the entire combined property of approximately $43.9 million. The joint venture will fully repay the MacArthur Park debt of approximately $8.8 million, including a $2.2 million defeasance penalty. At the conclusion of this transaction, AmREIT will hold a 30% ownership in the joint venture and receive net cash proceeds of approximately $35.4 million which would be used to repay borrowings under our unsecured credit facility. We expect this transaction to close in March 2013; however, closing is subject to customary closing conditions and we can make no assurances of when or if this joint venture will actually be formed and capitalized. AmREIT will continue to manage and lease MacArthur Park on behalf of the joint venture and will retain a right of first offer to acquire the project in the future, after a lock out period.

"AmREIT's strategy of creating value on 'Irreplaceable CornersTM' within our affluent, dense sub-markets was again advanced through our activities this past quarter," said H. Kerr Taylor, Chairman and Chief Executive Officer of AmREIT. "The off market acquisition of our Preston Royal Shopping Centers brought into our portfolio what we believe are two of the highest quality projects in the Dallas marketplace. The anticipated acquisition of the remainder of the MacArthur Park Project and our joint venture with Goldman Sachs are solid steps forward as they are expected to grow our platform, increase fee income and allow us to recycle capital."

Guidance

  • Full year 2013 Core FFO and FFO guidance per share is as follows:
                          Projected 2013 Range
        High       Low
Core FFO       $1.07       $1.02
FFO       $0.98       $0.93
  • Our full year 2013 Core FFO and FFO guidance is supported by the following assumptions:
    • Same-Store NOI growth target of 3.0% to 4.0%;
    • Average occupancy of 96.8% to 97.1%;
    • Portfolio growth through acquisitions of $100 million;
    • Platform growth of $40 million (off balance sheet through advised funds), excluding the MacArthur Park joint venture;
    • Redeployment of cash received from the MacArthur Park joint venture;
    • Redeployment of cash received from the sale of 3-5 single tenant properties, targeted for the second half of the year;
    • Recurring Advised Fund real estate fee income of $2.2 million (asset management and property management fees);
    • Transactional Advised Fund real estate fee income of $1.1 million (leasing, development, construction and brokerage fees); and
    • Annual G&A run rate of $7.8 million.

Other Activities

  • AmREIT will hold its Annual Meeting of Stockholders at 10:00 AM CST on April 18, 2013.
  • At the Annual Meeting of Stockholders, stockholders will be asked to vote, among other items, on two charter amendments that, when taken together, will have the effect of converting all of our issued and unissued Class A common stock into Class B common stock, on a one-for-one basis, after which all of AmREIT’s common stock would be listed on the New York Stock Exchange and freely tradable.

"Our 2012 financial results combined with our 2013 financial guidance reflect the sector-leading quality of our portfolio and are tracking the growth and operational goals that we have previously established," said Chad C. Braun, Chief Operating and Financial Officer of AmREIT. "The combination of additional capital resources created through the joint venture with Goldman Sachs and additional public float generated by the exchange of our Class A common stock into our NYSE-listed Class B common stock during 2013 should provide for a balance sheet that is poised for growth and allow us to execute upon our growth strategy during 2013."

Conference Call

AmREIT will hold its quarterly conference call to discuss the results of its fourth quarter of 2012 Wednesday, February 20, 2013, at 10:00 a.m. Central Standard Time (11:00 a.m. Eastern Standard Time). To participate in the quarterly conference call, please call 1-888-317-6016 approximately 10 minutes before the scheduled start time. The conference call will be recorded and a replay of the call will be available via webcast shortly after the call concludes.

The conference call will also be webcast live at www.amreit.com and can be accessed under the Investors tab of the Company's website. A telephonic replay of the conference call will be available for 14 days following the conference call. To access the telephonic replay of the conference call, dial 1-877-344-7529 and enter passcode 10023750.

Supplemental Financial Information

Further details regarding AmREIT’s results of operations, properties, and tenants are attached to this press release and can be accessed at the Company’s web site at www.amreit.com.

About AmREIT

AmREIT believes it has one of the highest quality grocery and drugstore anchored retail portfolios in the REIT sector. AmREIT's 29-year-old established platform has localized acquisition, operation and redevelopment expertise in the most densely populated and affluent submarkets of five of the top markets in the U.S.: Houston, Dallas, San Antonio, Austin and Atlanta. Texas is one of the best performing economies in the country and 92% of AmREIT's income for the year ended December 31, 2012 was generated by its properties located in this market. AmREIT’s management team has in-depth knowledge and extensive relationship advantages within its markets. AmREIT's core portfolio was 96.7% occupied as of December 31, 2012, and its top five tenants include Kroger, Landry's, CVS/Pharmacy, H-E-B and Publix. AmREIT also has access to an acquisition pipeline through its value add joint ventures, including two leading institutional investors who partner with the company as local experts. AmREIT's Class B common stock is traded on the New York Stock Exchange under the symbol “AMRE.” For more information, please visit www.amreit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to full year 2013 Core FFO and FFO financial projections and the underlying assumptions of such projections stated herein. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect AmREIT’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, AmREIT disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact AmREIT’s future results, performance or transactions, see the section entitled "Risk Factors" in AmREIT’s final prospectus dated July 26, 2012, filed with the Securities and Exchange Commission on July 27, 2012 and other risks described in documents subsequently filed by AmREIT from time to time with the Securities and Exchange Commission.

Additional Information related to the 2013 Annual Meeting of Stockholders

In connection with its 2013 Annual Meeting of Stockholders, the Company will file a proxy statement and other documents regarding the 2013 Annual Meeting (the “2013 Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) and will mail the 2013 Proxy Statement and a proxy card to each stockholder of record entitled to vote at the 2013 Annual Meeting. STOCKHOLDERS ARE ENCOURAGED TO READ THE 2013 PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain the documents free of charge at the SEC’s website, www.sec.gov, and from AmREIT at its website, www.amreit.com, or 8 Greenway Plaza, Suite 1000, Houston, Texas 77046, Attention: Corporate Secretary.

Participants in Solicitation

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the 2013 Annual Meeting. Information concerning the Company’s participants is set forth in AmREIT’s final prospectus dated July 26, 2012, filed with the SEC on July 27, 2012. Additional information regarding the interests of participants of the Company in the solicitation of proxies in respect of the 2013 Annual Meeting of Stockholders and other relevant materials will be included in the 2013 Proxy Statement to be filed with the SEC in connection with the 2013 Annual Meeting.

Investor Contact

For more information, call Chad Braun, Chief Operating Officer and Chief Financial Officer of AmREIT, at (713) 850-1400. AmREIT is online at www.amreit.com.

(Financial and Operating Tables to Follow)

         

Operating Results

(Unaudited)

(in thousands, except share and per share data)

 
Three Months Ended Twelve Months Ended
December 31, December 31,
Revenues: 2012   2011     2012   2011
Rental income from operating leases

$

10,463

$

8,885

$

37,438

$

32,995

Advisory services income – related party

897

858

3,870

3,789

Lease termination fee income   -     22     -     131  
Total revenues 11,360 9,765 41,308 36,915
 
Expenses:
General and administrative 1,927 1,854 6,733 6,049
Property expense 3,099 1,857 9,891 7,770
Legal and professional 242 157 919 945
Real estate commissions 119 50 387 342
Acquisition costs 687 7 687 229
Depreciation and amortization 2,321 2,186 8,884 8,257
Impairment recovery - notes receivable   -     (1,071 )   (443 )   (1,071 )
Total expenses   8,395     5,040     27,058     22,521  
 
Operating income 2,965 4,725 14,250 14,394
 
Other income (expense):
Interest and other income 123 110 485 493
Interest and other income – related party

69

135

462

319

Loss from Advised Funds (110 ) (60 ) (238 ) (384 )
Income tax expense (54 ) (74 ) (248 ) (262 )
Interest expense (2,259 ) (2,705 ) (10,251 ) (9,971 )
Issuance costs   -     (914 )   -     (914 )
 
Income from continuing operations 734 1,217 4,460 3,675
 
Income from discontinued operations, net of tax

-

3

-

148

Gain on sale of real estate acquired for resale  

-

   

-

   

-

   

417

 
Income from discontinued operations   -     3     -     565  
 
Net income $ 734   $ 1,220   $ 4,460   $ 4,240  
         

(in thousands, except share and per share data)

 
Three Months Ended Twelve Months Ended
December 31, December 31,

2012

2011

2012

2011

Reconciliation of Net Income to Funds From Operations (FFO):
Net income $ 734 $ 1,220 $ 4,460 $ 4,240
Depreciation – from operations 2,309 2,169 8,832 8,181
Depreciation – from discontinued operations

-

-

-

13

 

Depreciation of real estate assets for non-consolidated affiliates

 

156

 

170

 

622

 

628

 
FFO $ 3,199 $ 3,559 $ 13,914 $ 13,062  
 
Acquisition costs 687 7 687 229
Issuance costs - 914 - 914
Gain on sale of real estate acquired for resale  

-

 

-

 

-

 

(417

)

Core FFO $ 3,886 $ 4,480 $ 14,601 $ 13,788  
         
Three Months Ended Twelve Months Ended
December 31, December 31,

2012

2011

2012

2011

Reconciliation of Net Income to Net Operating Income (NOI):

Net income $ 734 $ 1,220 $ 4,460 $ 4,240
Adjustments to add/(deduct):

Amortization of straight-line rents and above/below-market rents (1)

 

(158

)

(114

)

(430

)

(36

)

Lease termination fee income - (22 ) - (131 )
Advisory services income - related party

(897

)

(858

)

(3,870

)

(3,789

)

Interest and other income (123 ) (110 ) (485 ) (493 )
Interest and other income - related party

(69

)

(135

)

(462

)

(319 )
Straight-line rent bad debt recoveries (2)

9

-

(90

)

(205 )
General and administrative 1,927 1,854 6,733 6,049
Legal and professional 242 157 919 945
Real estate commissions 119 50 387 342
Acquisition costs 687 7 687 229
Depreciation and amortization 2,321 2,186 8,884 8,257
Impairment recovery - notes receivable

-

(1,071

)

(443

)

(1,071

)

Loss from Advised Funds 110 60 238 384
State income tax expense 54 74 248 262
Interest expense 2,259 2,705 10,251 9,971
Stock issuance costs - 914 - 914
Income from discontinued operations  

-

   

(3

)

 

-

   

(565

)

Net operating income $ 7,215   $ 6,914   $ 27,027   $ 24,984  
(1)   Included in rental income from operating leases on our consolidated statements of operations.
 

(2)

Included in property expense on our consolidated statement of operations.

    Three Months Ended   Twelve Months Ended

December 31,

December 31,

2012   2011   2012   2011
Basic and Diluted Per Share Data:    
Income before discontinued operations

$

0.04

$

0.11

$

0.32

$

0.31

Income from discontinued operations

$

-

$

-

$

-

$

0.05

Net income $

0.04

$ 0.11 $ 0.32 $ 0.36
 

FFO

$

0.20

$

0.31

$

1.03

$

1.13

Core FFO $ 0.24 $ 0.39 $ 1.08 $ 1.19
 

Distributions per share of common stock

$

0.20

$

0.20

$

0.80

$

0.80

 
Share Data:

Weighted average shares used to compute net income per share, basic and diluted

 

15,580,000

11,391,000

13,120,000

11,384,000

 
Weighted average restricted shares  

543,000

 

207,000

 

359,000

 

207,000

Weighted average shares used to compute FFO per share  

16,123,000

 

11,599,000

 

13,479,000

 

11,591,000

                 

Market Capitalization Table:

 

Common Stock Outstanding (12/31/12)

Number of Shares

Price(1)

Market Capitalization

Class A common stock (assuming a price per share equal to Class B price)

11,657,563

$

17.15

$

199,927,205

Class B common stock

4,465,725

$

17.15

$

76,587,183

Total

16,123,288

 

 

$ 276,514,388
(1)   Represents the last reported price per share of the Class B common stock on the New York Stock Exchange on December 31, 2012.
           

Balance Sheet Highlights

(in thousands)

(Unaudited)

December 31,

2012

2011

Real estate investments before accumulated depreciation $ 387,525 $ 325,033
Net real estate investments 371,634 309,629
Total assets 397,394 330,610
Notes payable 218,579 201,658
Total liabilities 231,679 211,686
Total stockholders’ equity $ 165,715 $ 118,924

Non-GAAP Financial Disclosure

This press release contains certain non-GAAP financial measures that management believes are useful in evaluating an equity REIT’s performance. AmREIT’s definitions and calculations of non-GAAP financial measures may differ from those used by other equity REITs, and therefore may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating results, or to net cash provided by operating activities as a measure of our liquidity.

Funds From Operations (FFO)

AmREIT considers FFO to be an appropriate measure of the operating performance of an equity REIT. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from sales of property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. AmREIT calculates its FFO in accordance with this definition. Management considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions and excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a company’s real estate between periods, or as compared to different companies. FFO is not defined by GAAP and should not be considered as an alternative to net income as an indication of our operating performance or to net cash provided by operating activities as a measure of our liquidity. FFO as disclosed by other REITs may not be comparable to AmREIT’s calculation.

Additionally, AmREIT considers Core FFO, which adjusts reported FFO for items that do not reflect ongoing property operations, such as acquisition expense, write off of deferred financing costs, and expensed issuance costs, to be a meaningful performance measurement.

Projected FFO is calculated in a method consistent with historical FFO, and AmREIT considers projected FFO to be an appropriate supplemental measure when compared with projected earnings per share. A reconciliation of the projected FFO to projected earnings per share is provided below:

   

Projected 2013 Range

High

   

Low

Net income

$

0.26

$

0.21

Depreciation and amortization 0.68 0.68

Depreciation and amortization for non-consolidated affiliates

 

0.04

 

0.04

FFO $ 0.98 $ 0.93
Acquisition costs   0.09   0.09
Core FFO $ 1.07 $ 1.02

Net Operating Income (NOI)

AmREIT believes that NOI is a useful measure of operating performance. AmREIT defines NOI as operating revenues (rental income, tenant recovery income, percentage rent, excluding straight-line rental income and amortization of acquired above- and below-market rents) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line rent bad debt expense). Other REITs may use different methodologies for calculating NOI, and accordingly, AmREIT’s NOI may not be comparable to other REITs. AmREIT uses NOI to evaluate its performance on a property-by-property basis because NOI allows the company to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on operating results. However, NOI should only be used as a supplemental measure of AmREIT’s financial performance.

Same Store Property Analysis:

Comparison of the three months ended December 31, 2012, to the three months ended December 31, 2011

Below are the results of operations for the three months ended December 31, 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.

             

Three months ended December 31,

2012 2011 Change $ Change%  
Same store properties (26 properties)
Rental income (1) $ 6,699 $ 6,537 $ 162 2.5 %
Recovery income (1) 2,911 1,857 1,054 56.8 %
Percentage rent (1) 497 330 167 50.6 %
Less:
Property expenses   3,017     1,854     (1,163 ) (62.7 ) %
Same store net operating income   7,090     6,870     220   3.2 %
 
Non-same store properties (6 properties)
Rental income (1) 182 44 138 313.6 %
Recovery income (1) 17 - 17 *
Less:
Property expenses   74     -     (74 ) *
Non-same store net operating income   125     44     81   184.1 %
Total net operating income 7,215 6,914 301 4.4 %
 
Other revenues (see further detail below): 1,246 1,242 4 0.3 %
 
Less other expenses (see further detail below):   7,727     6,939     (788 ) (11.4 ) %
 
Income (loss) from continuing operations 734 1,217 (483 ) (39.7 ) %
Income from discontinued operations   -     3     (3 ) *
Net income $ 734   $ 1,220   $ (486 ) (39.8 ) %
 
Other data
Funds from operations $ 3,199 $ 3,559 $ (360 ) (10.1 ) %
Number of properties at end of period 32 29 n/a *
Percent leased at end of period(2) 96.7 % 95.9 % n/a 0.8 %
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 December 31, 2012 and 2011, rental income from operating leases was $10,463 and $8,885, respectively.
 
(2) Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012 or 2011, divided by (ii) total GLA as of such dates, 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 (in thousands)

     

Three months ended December 31,

     

2012

  2011 Change $ Change%

Amortization of straight-line rents and above/below market rents(1)

$ 157 $ 117 $ 40

34.2

%

Advisory services income - related party:
Real estate fee income - related party 676 574 102 17.8 %
Asset management fee income - related party 155 231 (76 ) (32.9 )%
Construction management fee income - related party   66   53   13   24.5 %
Total advisory services income - related party 897 858 39 4.5 %
Lease termination and other income - 22 (22 ) (100.0 )%
Interest and other income 123 110 13 11.8 %
Interest and other income - related party   69   135   (66 ) (48.9 )%
Total other revenues $ 1,246 $ 1,242 $ 4   0.3 %
 
(1) Included in rental income from operating leases as presented on our consolidated statements of operations.
 

Other Expenses (in thousands)

     

Three months ended December 31,

     
2012   2011 Change $ Change%
Straight-line bad debt recoveries(1) $ 7 $ 3 $ (4 ) 133.3 %
General and administrative 1,927 1,854 (73 ) (3.9 ) %
Legal and professional 242 157 (85 ) (54.1 ) %
Real estate commissions 119 50 (69 ) (138.0 ) %
Acquisition costs 687 7 (680 ) *
Depreciation and amortization 2,321 2,186 (135 ) (6.2 ) %
Impairment recovery - notes receivable - (1,071 ) (1,071 ) 100.0 %
Loss from Advised Funds 110 60 (50 ) (83.3 ) %
State income taxes 54 74 20 27.0 %
Interest expense 2,260 2,705 445 16.5 %
Issuance costs   -   914     914   100.0 %
Total other expenses $ 7,727 $ 6,939   $ (788 ) (11.4 ) %
 
(1) Included in property expense on our consolidated statements of operations.
 
* Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.
 

Comparison of the year ended December 31, 2012, to the year ended December 31, 2011

Below are the results of operations for the year ended December 31, 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.

    Year ended December 31,        
2012   2011 Change $

Change %

Same store properties (25 properties)
Rental income (1) $ 22,993 $ 22,300 $ 693 3.1 %
Recovery income (1) 8,274 6,911 1,363 19.7 %
Percentage rent (1) 631 425 206 48.5 %
Less:
Property expenses   8,699     7,121     (1,578 ) (22.2 ) %
Same store net operating income   23,199     22,515     684   3.0 %
 
Non-same store properties (6 properties)
Rental income (1) 3,914 2,498 1,416 56.7 %
Recovery income (1) 1,196 825 371 45.0 %
Less:
Property expenses   1,282     854     (428 ) (50.1 ) %
Non-same store net operating income   3,828     2,469     1,359   55.0 %
Total net operating income 27,027 24,984 2,043 8.2 %
 
Other revenues (see further detail below): 5,247 4,768 479 10.0 %
 
Less other expenses (see further detail below):   27,814     26,077     (1,737 ) (6.7 ) %
 
Income (loss) from continuing operations 4,460 3,675 785 21.4 %
Income from discontinued operations   -     565     (565 ) (100.0 ) %
Net income $ 4,460   $ 4,240   $ 220   5.2 %
 
Other data
Funds from operations $ 13,914 $ 13,062 $ 852 6.5 %
Number of properties at end of period 32 29 n/a *
Percent leased at end of period(2) 96.7 % 95.9 % n/a 0.8 %
Distributions per share $ 0.80 $ 0.80 $ - *
 

(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 years ended December 31, 2012 and 2011, rental income from operating leases was $37,438 and $32,995, respectively.
 

(2)

Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012 or 2011, divided by (ii) total GLA as of such dates, 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 (in thousands)

     

Year ended December 31,

       
2012   2011 Change $ Change%

Amortization of straight-line rents and above/below market rents(1)

$ 430 $ 36 $ 394 *
Advisory services income - related party:
Real estate fee income - related party 3,005 2,491 514 20.6 %
Asset management fee income - related party 622 1,064 (442 ) (41.5 ) %
Construction management fee income - related party   243   234   9   3.8 %
Total advisory services income - related party 3,870 3,789 81 2.1 %
Lease termination fee income - 131 (131 ) (100.0 ) %
Interest and other income 485 493 (8 ) (1.6 ) %
Interest and other income - related party   462   319   143   44.8 %
Total other revenues $ 5,247 $ 4,768 $ 479   10.0 %
 

(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 (in thousands)

   

Year ended December 31,

       
2012   2011 Change $ Change%
Straight-line bad debt recoveries(1) $ (90 ) $ (205 ) $ (115 ) (56.1 ) %
General and administrative 6,733 6,049 (684 ) (11.3 ) %
Legal and professional 919 945 26 2.8 %
Real estate commissions 387 342 (45 ) (13.2 ) %
Acquisition costs 687 229 (458 ) (200.0 ) %
Depreciation and amortization 8,884 8,257 (627 ) (7.6 ) %
Impairment recovery - notes receivable (443 ) (1,071 ) (628 ) 58.6 %
Loss from Advised Funds 238 384 146 38.0 %
State income taxes 248 262 14 5.3 %
Interest expense(2) 10,251 9,971 (280 ) (2.8 ) %
Issuance costs   -     914     914   100.0 %
Total other expenses $ 27,814   $ 26,077   $ (1,737 ) (6.7 ) %
 

(1)

Included in property expense on our consolidated statements of operations.
 

(2)

Includes $362 of unamortized loan acquisition fees written off during the year ended December 31, 2012, in connection with the repayment of loans using proceeds from our initial public offering in 2012 and refinance of our Uptown Plaza Dallas debt.
 

Comparison of the year ended December 31, 2011, to the year ended December 31, 2010

Below are the results of operations for the years ended December 31, 2011 and 2010 (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, 2010.

               
Year ended December 31,
2011 2010 Change $

Change %

Same store properties (25 properties)
Rental income (1) $ 22,090 $ 21,675 $ 415 1.9 %
Recovery income (1) 6,737 6,674 63 0.9 %
Percentage rent (1) 425 555 (130 ) (23.4 ) %
Less:
Property expenses   6,943     7,829     886   11.3 %
Same store net operating income   22,309     21,075     1,234   5.9 %
 
Non-same store properties (4 properties)
Rental income (1) 2,708 22 2,686 *
Recovery income (1) 999 7 992 *
Less:
Property expenses   1,032     4     (1,028 ) *
Non-same store net operating income   2,675     25     2,650   *
Total net operating income 24,984 21,100 3,884 18.4 %
 
Other revenues (see further detail below): 4,768 10,548 (5,780 ) (54.8 ) %
 
Less other expenses (see further detail below):   26,077     31,725     5,648   17.8 %
 
Income (loss) from continuing operations 3,675 (77 ) 3,752 *
Income from discontinued operations   565     6,382     (5,817 ) (91.1 ) %
Net income 4,240 6,305 (2,065 ) (32.8 ) %
Net loss attributable to non-controlling interest   -     (173 )   173   100.0 %
Net income attributable to AmREIT stockholders $ 4,240   $ 6,132   $ (1,892 ) (30.9 ) %
 
Other data
Funds from operations $ 13,062 $ 13,821 $ (759 ) (5.5 ) %
Number of properties at end of period 29 28 n/a *
Percent leased at end of period(2) 95.9 % 92.2 % n/a 3.7 %
Distributions per share $ 0.80 $ 0.90 $ (0.10 ) *
 
 
(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 years ended December 31, 2011 and 2010, rental income from operating leases was $32,995 and $29,155, respectively.
 
(2) Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2011 or 2010, divided by (ii) total GLA as of such dates, 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 (in thousands)

    Year ended December 31,        
2011   2010 Change $

Change %

Amortization of straight-line rents and above/below market rents(1)

$ 36 $ 222 $ (186 ) (83.8 ) %
Advisory services income - related party:
Real estate fee income - related party 2,491 2,375 116 4.9 %
Asset management fee income - related party 1,064 1,480 (416 ) (28.1 ) %
Construction management fee income - related party   234   349   (115 ) (33.0 ) %
Total advisory services income - related party 3,789 4,204 (415 ) (9.9 ) %
Lease termination fee income 131 15 116 *
Interest and other income 493 459 34 7.4 %
Interest and other income - related party 319 274 45 16.4 %
Gain on debt extinguishment   -   5,374   (5,374 ) (100.0 ) %
Total other revenues $ 4,768 $ 10,548 $ (5,780 ) (54.8 ) %
 
(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 (in thousands)

Year ended December 31,    
2011   2010 Change $ Change %  
Straight-line bad debt recoveries(1) $ (205) $ 481 $ 686 (142.6) %
General and administrative 6,049 5,944 (105) (1.8) %
Legal and professional 945 1,165 220 18.9 %
Real estate commissions 342 191 (151) (79.1) %
Acquisition costs 229 12 (217) *
Depreciation and amortization 8,257 6,634 (1,623) (24.5) %
Impairment - properties - 2,268 2,268 100.0 %
Impairment (recovery) - notes receivable (1,071) 1,800 2,871 159.5 %
Loss from Advised Funds 384 1,186 802 67.6 %
Income tax expense for taxable REIT subsidiary - 1,245 1,245 100.0 %
State income taxes 262 270 8 3.0 %
Interest expense 9,971 9,541 (430) (4.5) %
Issuance costs 914 - (914) *
Debt prepayment penalties - 988 988 100.0 %
Total other expenses $ 26,077 $ 31,725 $ 5,648 17.8 %
 
(1)

Included in property expense on our consolidated statements of operations.

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

Advisory Services Income – Related Party (in thousands):

             
Three months ended December 31, Twelve months ended December 31,
2012 2011 2012 2011
Leasing commission income $ 315 $ 229 $ 1,240 $ 1,103
Property management fee income 345 328 1,261 1,216
Development fee income 16 17 504 172
Asset management fee income 155 231 622 1,064
Construction management fee income   66   53   243   234

Advisory services income - related party

$ 897 $ 858 $ 3,870 $ 3,789
 
Reimbursements of administrative costs $ 214 $ 330 $ 855 $ 885
 

Rental Income from Operating Leases (in thousands):

         
Three months ended December 31, Twelve months ended December 31,
2012   2011 2012   2011
Base minimum rent $ 6,881 $ 6,581 $ 26,907 $ 24,798
Straight-line rent adjustments 110 65 233 (133 )

Amortization of above/below market rent

47

52 197 169
Percentage rent 497 330 631 425
Recovery income   2,928   1,857   9,470   7,736  
Rental income from operating leases $ 10,463 $ 8,885 $ 37,438 $ 32,995
               

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

 
December 31, % of December 31, % of
2012 Total 2011 Total
Fixed vs. variable rate debt
Variable Rate - Line of Credit $ 33,500 15.3 % $ 19,345 9.6 %
Fixed Rate - Mortgage Loans 185,079 84.7 % 141,373 70.1 %
Variable Rate - Mortgage Loans   - 0.0 %   40,940 20.3 %
$ 218,579 100.0 % $ 201,658 100.0 %
 
Debt statistics
EBITDA $ 23,843 $ 22,743

Ratio of EBITDA to combined fixed charges(1)

 

2.19

 

2.08

Ratio of Debt to EBITDA 9.17

(2)

 

 

8.87
 
Reconciliation of net income to EBITDA
Net income $ 4,460 $ 4,240
Interest expense 10,251 9,971
State income taxes 248 262
Depreciation and amortization 8,884 8,257

Depreciation and amortization from discontinued operations

 

-

 

 

13

EBITDA $ 23,843 $ 22,743
 
(1) Fixed charges consist of interest expense and scheduled principal payments on borrowed funds (including capitalized interest, but excluding amortization of debt premium).
 
(2) As of December 31, 2012, fixed rate mortgage loans include $23.4 million related to the acquisition of Preston Royal West on December 12, 2012. The ratio of debt (excluding this loan) to EBITDA is 8.19.
                       

AmREIT

Debt Information
(in thousands)
Description    

Amount
Outstanding
12/31/12

   

Interest
Rate

   

Annual
Debt
Service

   

Maturity
Date

    % of total    

Weighted
average
rate
maturing

Property Mortgages:
 
500 Lamar 1,630 6.00 % $ 98 2/1/2015
Uptown Park   49,000   5.37 % 2,631 6/1/2015
2015 Maturities 50,630 23.20 % 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 31.46 % 4.69 %
 
Bakery Square   2,019   8.00 % 162 2/10/2017
2017 Maturities 2,019 0.93 % 8.00 %
 
Alpharetta Commons   12,231   4.54 % 555 8/1/2018
2018 Maturities 12,231 5.60 % 4.54 %
 
Preston Royal West 23,400 3.21 % 751 1/1/2020
MacArthur Pad Sites   6,613   6.17 % 408 7/1/2020
2020 Maturities 30,013 13.75 % 3.86 %
 
Brookwood Village 7,271 5.40 % 393 2/10/2022
Uptown Plaza - Dallas   13,922   4.25 % 592 8/10/2022
2022 Maturities 21,193 9.71 % 4.64 %
 
Corporate debt:
 
$75.0 million Facility(1) $ 33,500

(1)

 

$ 906 8/1/2015 0.15

(1)

 

 
Total Maturities(2)   218,261  
 
Weighted average rate 4.04 %
 
(1) The unsecured credit 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. Annual debt service assumes current amount outstanding as well as current interest rates, remain constant.
 
(2) Total maturities above are $318 less than total debt as reported in our consolidated balance sheets as of December 31, 2012, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions.
 
                               
Property    

Property
Location

   

Year Built /
Renovated

    GLA    

Percent
Leased(1)

   

Annualized Base
Rent(2)

   

ABR per
Leased
Square
Foot(3)

   

Average Net
Effective ABR
per Leased
Square
Foot(4)

    Key Tenants
Neighborhood and Community Shopping Centers
Uptown Park Houston, TX 1999/2005 169,112 97.0% $ 5,496,404 $ 33.51 $ 35.04 Champps, McCormick & Schmicks (owned by Landry's)
MacArthur Park Dallas, TX 2000 237,351 92.6% 3,721,329 16.92 17.68 Kroger, Barnes & Noble, GAP
Plaza in the Park Houston, TX 1999/2009 144,054 97.4% 2,761,041 19.69 19.92 Kroger
Preston Royal East Dallas, TX 1956 107,914 95.8% 2,576,720 24.93 25.13 Bank of America, Starbucks, FedEx Office
Preston Royal West Dallas, TX 1959 122,564 99.2% 2,447,504 20.12 20.29 Tom Thumb, Barnes & Noble, Spec's
Southbank San Antonio, TX 1995 46,673 96.0% 1,656,463 36.96 37.30 Hard Rock Café
The Market at Lake Houston Houston, TX 2000 101,799 100.0% 1,614,750 15.86 15.91 H-E-B, Five Guys
Uptown Plaza - Dallas Dallas, TX 2006 33,840 100.0% 1,448,387 42.80 43.64 Morton's (owned by Landry's), Wells Fargo
Alpharetta Commons Atlanta, GA 1997 94,544 98.7% 1,324,342 14.19 14.36 Publix
Cinco Ranch Houston, TX 2001 97,297 100.0% 1,310,644 13.47 13.58 Kroger
Uptown Plaza - Houston Houston, TX 2002 28,000 100.0% 1,315,746 46.99 46.11 CVS/pharmacy, The Grotto (owned by Landry's)
Bakery Square Houston, TX 1996 34,614 94.3% 913,061 27.98 28.09 Walgreens, Boston Market
Brookwood Village Atlanta, GA 1941/2000 28,774 97.9% 710,043 25.21 22.66 CVS/pharmacy, Subway
Courtyard on Post Oak Houston, TX 1994 13,597 29.5% 260,845 65.00 61.41 Verizon
Woodlands Plaza Houston, TX 1997/2003 20,018 100.0% 460,229 22.99 24.05 FedEx Office
Terrace Shops Houston, TX 2000 16,395 91.3% 456,682 30.50 30.19 Starbucks

Sugar Land 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%     399,322     31.21     29.52 Title Nine Sports

Neighborhood and Community Shopping

1,326,091 96.3% $ 29,275,700 $ 22.91 $ 23.26
 
Single Tenant (Ground Leases)(5)
CVS/Pharmacy Houston, TX 2003 13,824 100.0% $ 327,167 $ 23.67 $ 23.67 CVS/pharmacy

Jared The Galleria of Jewelry

Houston, TX 2012 8,046 100.0% 180,000 22.37 25.96

Jared The Galleria of Jewelry

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(6) 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)

72,094 100.0% $ 1,387,499 $ 19.25 $ 19.78
 
Single Tenant (Fee Simple)(7)
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(6) Houston, TX 1992 12,000 100.0% 210,450 17.54 17.54 Golden Corral
Golden Corral(6) Houston, TX 1993 12,000 100.0% 208,941 17.41 22.16 Golden Corral
Sunbelt Rentals Champaign, IL 2007 12,000     100.0%     140,000     11.67     12.72 Sunbelt Rentals

Single Tenant (Fee Simple)

69,519 100.0% $ 1,199,714 $ 17.26 $ 18.66
 
Portfolio Total/Weighted Average 1,467,704     96.7%     $ 31,862,913     $ 22.45     $ 22.86
 
(1) Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012, divided by (ii) total GLA, expressed as a percentage.
 
(2) Annualized base rent is calculated by multiplying (i) monthly base rent as of December 31, 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 December 31, 2012.
 
(4) Average net effective annual base rent per leased square foot represents (i) the contractual base rent for commenced leases as of December 31, 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 December 31, 2012.
 
(5) 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 8.3 years.
 
(6) The tenants at these properties have rights of first refusal to purchase the property.
 
(7)

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 7.2 years.

 
                   
Rank     Tenant Name    

Year to Date
Base Rent

   

Year to Date ABR as a
Percentage of Portfolio
Annualized Base Rent

    Tenant GLA    

Percentage
of Total GLA

1 Kroger $ 2,116,165 13.28 % 207,963 14.17 %
2 Landry's Seafood House 1,257,286 7.89 % 38,819 2.64 %
3 CVS/pharmacy 1,222,212 7.67 % 37,485 2.55 %
4 H-E-B 1,109,736 6.97 % 80,641 5.49 %
5 Publix 780,936 4.90 % 65,146 4.44 %
6 Hard Rock Cafe 496,825 3.12 % 15,752 1.07 %
7

T.G.I. Friday's

458,589 2.88 % 21,845 1.49 %
8 The Container Store 447,988 2.81 % 25,019 1.70 %
9 Golden Corral 426,514 2.68 % 24,000 1.64 %
10 Champps Americana 422,336 2.65 % 11,384 0.78 %
11 Paesanos 406,583 2.55 % 8,017 0.55 %
12 The County Line 359,871 2.26 % 10,614 0.72 %
13

Verizon Wireless

303,449 1.90 % 5,513 0.38 %
14 Walgreens 298,621 1.87 % 15,120 1.03 %
15 Bank of America 298,349 1.87 % 8,129 0.55 %
16

Ninfa's

284,421 1.79 % 7,606 0.52 %
17 Mattress Giant 274,120 1.72 % 11,000 0.75 %
18 River Oaks Imaging & Diagnostic, L.P. 268,500 1.69 % 10,750 0.73 %
19 Howl At The Moon Saloon 257,508 1.62 % 7,055 0.48 %
20 Tasting Room 257,504 1.62 % 7,568 0.52 %
21 Potbelly 251,320 1.58 % 5,458 0.37 %
22 Buca Di Beppo 249,792 1.57 % 7,573 0.52 %
23 M. Penner 234,798 1.47 % 6,500 0.44 %
24 Longoria Collection 226,063 1.42 % 6,945 0.47 %
25 Baker, Knapp and Tubbs, Inc. 200,625 1.26 % 8,025 0.55 %
 
     
For the year ended December 31,
Expirations

2012

 

2011

 

2010

 

2009

 

2008

 

2007

Number of leases 44 53 50 34 22 20
GLA 180,245 187,605 224,578 110,693 75,601 55,124
New Leases
Number of leases 5 7 11 8 4 9
GLA 12,997 14,231 17,737 15,471 7,328 13,680
Expiring annualized base rent per square foot $ 27.22 $ 28.36 $ 31.07 $ 28.31 $ 23.52 $ 28.73
New annualized base rent per square foot $ 34.84 $ 30.85 $ 31.44 $ 29.64 $ 21.70 $ 32.82
% Change (Cash) 28.0 % 8.8 % 1.2 % 4.7 % -7.7 % 14.2 %
Renewals(2)
Number of leases 30 38 39 24 13 12
GLA 115,501 143,324 140,236 86,462 22,464 43,003
Expiring annualized base rent per square foot $ 23.91 $ 24.92 $ 26.12 $ 25.62 $ 27.05 $ 19.88
New annualized base rent per square foot $ 25.27 $ 25.74 $ 27.32 $ 26.85 $ 31.53 $ 22.79
% Change (Cash) 5.7 % 3.3 % 4.6 % 4.8 % 16.6 % 14.6 %
Combined
Number of leases 35 45 50 32 17 21
GLA 128,498 157,555 157,973 101,933 29,792 56,683
Expiring annualized base rent per square foot $ 24.24 $ 25.23 $ 26.68 $ 26.03 $ 26.18 $ 22.02
New annualized base rent per square foot $ 26.24 $ 26.20 $ 27.78 $ 27.27 $ 29.11 $ 25.21
% Change (Cash) 8.2 % 3.8 % 4.1 % 4.8 % 11.2 % 14.5 %
 
(1)

Comparable leases are defined as renewals or new leases for a space that was not vacant for more than 12 consecutive months prior to lease signing.

 
(2) Represents existing tenants that, upon expiration of their leases, enter into new leases for the same space.
 
                       
Year

Number of
Expiring
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 - 48,481 3.3 % $ - - $ -
2013 56 154,350 10.5 % 3,482,089 10.9 % 22.56
2014 52 126,330 8.6 % 3,683,802 11.6 % 29.16
2015 50 179,946 12.2 % 5,000,891 15.7 % 27.79
2016 48 147,876 10.1 % 4,279,417 13.4 % 28.94
2017 33 241,517 16.5 % 4,656,294 14.6 % 19.28
2018 20 81,200 5.5 % 1,913,842 6.0 % 23.57
2019 10 31,493 2.1 % 893,136 2.8 % 28.36
2020 8 84,379 5.8 % 1,207,818 3.8 % 14.31
2021 9 108,743 7.4 % 1,855,824 5.8 % 17.07
2022 11 94,204 6.4 % 1,944,394 6.1 % 20.64
2023 + 10 169,185 11.5 %   2,945,406 9.3 % 17.41
Total / Weighted Avg 307 1,467,704 $ 31,862,913 $ 22.45
 
(1) ABR for expiring leases is calculated by multiplying (i) the monthly base rent as of December 31, 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.
 
                                   
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 180 58.7 % 285,843 262,649 91.9 % 18.5 % $ 7,737,830 24.3 % 29.46
2,501 - 5,000 65 21.2 % 230,419 227,879 98.9 % 16.1 % 6,941,744 21.8 % 30.46
5,001 - 10,000 39 12.7 % 305,777 283,030 92.6 % 19.9 % 7,499,638 23.5 % 26.50
10,000 - 20,000 13 4.2 % 162,102 162,102 100.0 % 11.4 % 3,917,750 12.3 % 24.17
greater than 20,000 10 3.3 % 483,563 483,563 100.0 % 34.1 %   5,765,951 18.1 % 11.92
Total portfolio 307 100.0 % 1,467,704 1,419,223 96.7 % 100.0 % $ 31,862,913 100.0 % 22.45
 
(1) Annualized base rent is calculated by multiplying (i) the monthly base rent as of December 31, 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.

Contacts

AmREIT
Chad C. Braun, (713) 850-1400
cbraun@amreit.com

Sharing

Contacts

AmREIT
Chad C. Braun, (713) 850-1400
cbraun@amreit.com