|
Previous: ONEPOINT COMMUNICATIONS CORP /DE, 10-Q, EX-27, 2000-11-14 |
Next: UBS AG NEW YORK BRANCH, 13F-HR, 2000-11-14 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Maryland |
#36-4246655 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
2901 Butterfield Road, Oak Brook, Illinois 60523
(Address of principal executive office) (Zip code)
Registrant's telephone number, including area code: 630-218-8000
N/A
(Former name, former address and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No
As of November 13, 2000, there were 11,291,725 Shares of Common Stock outstanding.
PART I - Financial Information
Item 1. Consolidated Financial Statements
INLAND RETAIL REAL ESTATE TRUST, INC.
September 30, |
December 31, |
|
2000 |
1999 |
|
Investment Properties: |
||
Land |
$ 46,628,263 |
$ 33,260,261 |
Building and site improvements |
144,109,972 |
93,978,854 |
190,738,235 |
127,239,115 |
|
Less accumulated depreciation |
4,549,743 |
1,229,323 |
Net investment in properties |
186,188,492 |
126,009,792 |
Cash and cash equivalents |
11,365,111 |
14,869,164 |
Restricted cash |
905,805 |
1,246,889 |
Investment in securities (Note 1) |
660,066 |
- |
Accounts and rents receivable, (net of allowance of $112,722 and $0 as of September 30, 2000 and December 31, 1999, respectively)(Note 6) |
2,060,671 |
1,331,213 |
Real estate tax and insurance escrow deposits |
451,892 |
227,123 |
Loan fees (net of accumulated amortization of |
||
$130,122 and $20,432 as of September 30, 2000 and December 31, 1999, respectively) |
552,001 | 164,433 |
Leasing fees (net of accumulated amortization of $13,357 and $3,346 as of September 30, 2000 and December 31, 1999, respectively) |
48,165 |
34,106 |
Deferred acquisition costs |
302,891 |
91,880 |
Other assets |
153,803 |
13,536 |
Total assets |
$ 202,688,897 |
$ 143,988,136 |
See accompanying notes to consolidated financial statements.
INLAND RETAIL REAL ESTATE TRUST, INC.
(continued)
September 30, 2000 and December 31, 1999
(unaudited)
Liabilities and Stockholders' Equity
September 30, |
December 31, |
|
2000 |
1999 |
|
Liabilities: |
||
Accounts payable |
$ 186,796 |
$ 74,094 |
Accrued offering costs due to Affiliates |
1,712,315 |
1,309,642 |
Accrued offering costs due to non-affiliates |
61,680 |
1,554,262 |
Accrued interest payable |
590,568 |
419,003 |
Real estate tax payable |
1,379,417 |
-- |
Distributions payable (Note 12) |
626,099 |
331,467 |
Security Deposits |
313,583 |
232,370 |
Mortgages payable (Note 7) |
106,361,082 |
93,099,852 |
Acquisition note payable (Note 8) |
2,800,000 |
-- |
Unearned income |
125,478 |
9,585 |
Other liabilities |
1,221,700 |
1,359,209 |
Due to Affiliates (Note 3) |
1,626,076 |
582,787 |
Total liabilities |
117,004,794 |
98,972,271 |
Minority interest in partnership |
2,000 |
2,000 |
Stockholders' Equity: |
||
Preferred Stock, $.01 par value, 10,000,000 shares authorized, none outstanding |
-- |
-- |
Common Stock, $.01 par value, 100,000,000 shares authorized, 10,409,799 and 5,433,839 issued and outstanding at September 30, 2000 and December 31, 1999, respectively |
104,098 |
54,338 |
Additional paid-in capital (net of costs of |
||
Offering of $13,762,482 and $8,057,059 at September 30, 2000 and December 31, 1999, respectively, of which $9,602,538 and $5,193,155 was paid or accrued to Affiliates, |
||
respectively) |
89,759,026 |
46,188,392 |
Accumulated distributions in excess of net income |
(4,181,233) | (1,228,865) |
Accumulated comprehensive income |
212 |
- |
Total stockholders' equity |
85,682,103 |
45,013,865 |
Commitments and contingencies (Notes 6, 7 and 11) |
||
Total liabilities and stockholders' equity |
$ 202,688,897 |
$ 143,988,136 |
See accompanying notes to consolidated financial statements.
INLAND RETAIL REAL ESTATE TRUST, INC.
Three months |
Three months |
Nine months |
Nine months |
|
ended |
ended |
ended |
ended |
|
September 30, 2000 |
September 30, 1999 |
September 30, 2000 |
September 30, 1999 |
|
Income: |
||||
Rental income |
$ 4,652,567 |
$ 1,441,695 |
$ 11,911,261 |
$ 1,821,483 |
Additional rental income |
1,163,080 |
278,656 |
3,144,168 |
505,354 |
Interest and dividend income |
210,165 |
63,166 |
557,988 |
98,758 |
Other income |
180,608 |
100 |
119,701 |
100 |
6,206,420 |
1,783,617 |
15,733,118 |
2,425,695 |
|
Expenses: |
||||
Professional services to Affiliates |
- |
1,913 |
- |
12,155 |
Professional services to non-affiliates |
16,785 |
19,100 |
149,540 |
48,133 |
General and administrative expenses to Affiliates |
74,485 |
12,319 |
183,503 |
52,505 |
General and administrative expenses to non-affiliates |
56,296 |
12,097 |
129,716 |
51,801 |
Advisor asset management fee |
30,000 |
- |
90,000 |
- |
Property operating expenses to Affiliates |
266,314 |
83,464 |
670,916 |
92,822 |
Property operating expenses to non-affiliates |
1,177,749 |
361,367 |
3,582,982 |
624,859 |
Mortgage interest to Affiliates |
- |
583 |
- |
2,028 |
Mortgage interest to non-affiliates |
2,335,420 |
810,089 |
5,991,581 |
965,335 |
Acquisition costs expense |
75,441 |
13,838 |
110,033 |
25,281 |
Depreciation |
1,300,453 |
391,364 |
3,320,421 |
479,183 |
Amortization |
60,952 |
1,427 |
131,300 |
1,626 |
5,393,895 |
1,707,561 |
14,359,992 |
2,355,728 |
|
Net income before comprehensive income |
812,525 |
76,056 |
1,373,126 |
69,967 |
Unrealized holding gain on investment securities |
212 |
- |
212 |
- |
|
|
|
|
|
Comprehensive income |
$ 812,737 |
$ 76,056 |
$ 1,373,338 |
$ 69,967 |
========== |
========== |
=========== |
=========== |
|
Net income before comprehensive income per common share, basic and diluted |
$ .09 |
$ .03 |
$ .18 |
$ .05 |
Weighted average number of common shares outstanding, basic and diluted |
9,168,728 |
2,292,809 |
7,595,911 |
1,289,409 |
See accompanying notes to consolidated financial statements.
INLAND RETAIL REAL ESTATE TRUST, INC.
Number of Shares |
Common |
Additional Paid-in |
Accumulated |
Accumulated Comprehensive Income |
Total |
|
Balance at December 31, 1999 |
5,433,839 |
$ 54,338 |
$ 46,188,392 |
$ (1,228,865) |
$ -- |
$ 45,013,865 |
Net income |
-- |
-- |
-- |
1,373,126 |
-- |
1,373,126 |
Comprehensive income |
-- |
-- |
-- |
-- |
212 |
212 |
Distributions declared ($.76 per weighted average number of common shares outstanding) |
-- |
-- |
-- |
(4,325,494) |
-- |
(4,325,494) |
Proceeds from offering Including DRP (net of current period and cumulative offering costs of $5,705,423, and $13,762,482) |
5,015,483 |
50,155 |
43,927,922 |
-- |
-- |
43,978,077 |
Treasury Stock |
(39,523) |
(395) |
(357,288) |
-- |
-- |
(357,683) |
Balance at September 30, 2000 |
10,409,799 |
$ 104,098 |
$ 89,759,026 |
$ (4,181,233) |
$ 212 |
$ 85,682,103 |
=========== |
========== |
============= |
============= |
============= |
============= |
See accompanying notes to consolidated financial statements.
INLAND RETAIL REAL ESTATE TRUST, INC.
2000 |
1999 |
||
Cash flows from operating activities: |
|||
Net income |
$ 1,373,338 |
$ 69,967 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation |
3,320,421 |
479,183 |
|
Amortization |
119,701 |
1,626 |
|
Interest escrow |
53,085 |
- |
|
Rental income under master lease agreements |
340,406 |
- |
|
Straight-line rental income |
(340,799) |
(35,809) |
|
Changes in assets and liabilities: |
|||
Accounts and rents receivable |
(388,659) |
(343,013) |
|
Other assets |
(140,267) |
(123.964) |
|
Real estate tax and insurance escrows |
(224,769) |
(513,669) |
|
Accrued interest payable |
171,565 |
339,809 |
|
Deferred acquisition costs |
(211,011) |
- |
|
Real estate tax payable |
1,379,417 |
373,085 |
|
Accounts payable |
112,702 |
37,177 |
|
Unearned income |
115,893 |
152,067 |
|
Other liabilities |
(292,674) |
113,140 |
|
Security deposits |
81,213 |
165,150 |
|
Due to affiliates |
1,043,289 |
542,624 |
|
Net cash provided by operating activities |
6,512,851 |
1,257,373 |
|
Cash flows from investing activities: |
|||
Increase in restricted cash |
341,084 |
- |
|
Purchase of investments in securities, net of margin account |
(504,901) |
- |
|
Purchase of investment properties |
(60,989,852) |
(27,208,723) |
|
Additions to investment properties |
(107,759) |
- |
|
Condemnation proceeds |
5,000 |
- |
|
Leasing fees |
(24,070) |
(12,190) |
|
Net cash used in investing activities |
(61,280,498) |
(27,220,913) |
|
Cash flows from financing activities: |
|||
Proceeds from offering |
49,683,499 |
31,941,910 |
|
Repurchase of shares |
(357,683) |
- |
|
Payment of offering costs |
(6,795,332) |
(2,797,095) |
|
Proceeds from debt financing |
35,657,500 |
- |
|
Principal payments of debt |
(22,396,270) |
(50,042) |
|
Loan fees |
(497,258) |
(131,350) |
|
Distributions paid |
(4,030,862) |
(367,472) |
|
Net cash provided by financing activities |
51,263,594 |
28,595,951 |
See accompanying notes to consolidated financial statements.
INLAND RETAIL REAL ESTATE TRUST, INC.
2000 |
1999 |
||
Net increase (decrease) in cash and cash equivalents |
(3,504,053) |
2,632,411 |
|
Cash and cash equivalents at January 1 |
14,869,164 |
202,000 |
|
Cash and cash equivalents at September 30 |
$ 11,365,111 |
$ 2,834,411 |
|
============ |
============ |
Supplemental schedule of noncash investing and financing activities:
Purchase of investment properties |
$(63,789,852) |
$(100,873,692) |
|
Assumption of mortgage debt |
- |
73,664,969 |
|
Acquisition note payable |
2,800,000 |
- |
|
$(60,989,852) |
$ (27,208,723) |
||
=========== |
============ |
||
Distributions payable |
$ 626,099 |
$ 175,621 |
|
=========== |
============ |
||
Cash paid for interest |
$ 5,714,190 |
$ 819,383 |
|
=========== |
============ |
||
See accompanying notes to consolidated financial statements.
Notes to Consolidated Financial Statements
September 30, 2000
(unaudited)
The accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP") for interim financial information and with the instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Readers of this Quarterly Report should refer to the audited financial statements of
Inland Retail Real Estate Trust, Inc. (the "Company") for the fiscal year ended December 31, 1999, which are included in the Company's 1999 Annual Report, as certain footnote disclosures contained in such audited financial statements have been omitted
from this Report.
Inland Retail Real Estate Trust, Inc. (the "Company") was formed on September 3, 1998 to acquire and manage a diversified portfolio of real estate, primarily multi-tenant shopping centers. It is anticipated that the Company will
initially focus on acquiring properties in the southeastern states, primarily Florida, Georgia, North Carolina and South Carolina. The Company may also acquire single-user retail properties in locations throughout the United States, certain of which may
be sale and leaseback transactions, net leased to creditworthy tenants. Inland Retail Real Estate Advisory Services, Inc. (the "Advisor"), an affiliate of the Company, is the advisor to the Company. On February 11, 1999, the Company commenced an initial
public offering ("Offering"), on a best efforts basis of 50,000,000 shares of common stock ("Shares") at $10 per Share and 4,000,000 Shares at $9.50 per Share which may be distributed pursuant to the Company's Distribution Reinvestment Program ("DRP"). As
of September 30, 2000, the Company had received subscriptions for a total of 10,265,307 Shares. In addition, the Company has issued 184,015 Shares pursuant to the Company's DRP. As of September 30, 2000, the Company has repurchased a total of 39,523
Shares through the Company's Share Repurchase Program.
The Company is qualified and has elected to be taxed as a real estate investment trust ("REIT") under Section 856 through 860 of the Internal Revenue Code of 1986. Since the Company qualifies for taxation as a REIT, the Company generally will not be
subject to federal income tax to the extent it distributes at least 95%(90% for taxable years beginning after December 31, 2000) of its REIT taxable income to its stockholders. If the Company fails to qualify as a REIT in any taxable year, the Company
will be subject to federal income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and federal income and
excise taxes on its undistributed income.
In the opinion of management, the financial statements contain all the adjustments necessary, which are of a normal recurring nature, to present fairly the financial position and results of operations for the period presented herein. Results of interim
periods are not necessarily indicative of results to be expected for the year.
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Statement of Financial Accounting Standards No. 121 requires the Company to record an impairment loss on its property held for investment whenever its carrying value cannot be fully recovered through estimated undiscounted future cash flows from
operations and sale of the property. The amount of the impairment loss to be recognized would be the difference between the property's carrying value and the property's estimated fair value. As of September 30, 2000, the Company does not believe any such
impairment of its properties exists.
Depreciation expense is computed using the straight-line method. Buildings and improvements are depreciated based upon estimated useful lives of 30 years for buildings and 15 years for the site improvements. Tenant improvements are amortized on a
straight-line basis over the life of the related leases.
Loan fees are amortized on a straight-line basis over the life of the related loans.
Offering costs are offset against the Stockholders' equity accounts and consist principally of printing, selling and registration costs.
Rental income is recognized on a straight-line basis over the term of each lease. The difference between rental income earned on a straight-line basis and the cash rent due under the provisions of the lease agreements is recorded as deferred rent
receivable.
The Company believes that the interest rates associated with the mortgages payable approximate the market interest rates for these types of debt instruments, and as such, the carrying amount of the mortgages payable approximate their fair value.
The carrying amount of cash and cash equivalents, restricted cash, accounts and rents receivable, accounts payable and other liabilities, accrued offering costs to affiliates and non-affiliates, accrued interest payable to non-affiliates, accrued real
estate taxes, distributions payable and due to affiliates approximate fair value because of the relatively short maturity of these instruments.
On December 2, 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin 101, "Revenue Recognition in Financial Statements" (SAB 101). The staff determined that a lessor should defer recognition of contingent rental income such as
percentage/excess rent until the specified
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
breakpoint that triggers the contingent rental income is achieved. The Company records percentage rental revenue in accordance with the SAB 101.
The Company classifies its investment in securities in one of three categories: trading, available-for-sale, or held-to-maturity. Trading securities are bought and held principally for the purpose of selling them in the near term. Held-to-maturity
securities are those securities in which the Company has the ability and intent to hold the security until maturity. All securities not included in trading or held-to-maturity are classified as available for sale. Investment in securities at September 30,
2000 consist principally of preferred stock investments in various real estate investment trusts and are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value. Unrealized holding gains and losses on
available-for-sale securities are excluded from earnings and reported as a separate component of comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification
basis. A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary results in a reduction in the carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the
security is established. Dividend income is recognized when earned. No sales of investment securities available-for-sale were made during 2000. Additionally, The Company has purchased its securities through a margin account. As of September 30, 2000,
the Company has recorded a payable of $155,166 for securities purchased on margin.
FASB Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," which is effective for fiscal years beginning after June 15, 2000, establishes accounting and reporting standards requiring that
every derivative instrument, including certain derivative instruments imbedded in other contracts, be reported in the balance sheet as either an asset or liability measured at its fair value. The statement also requires that the changes in the
derivative's fair value be recognized in earnings unless specific hedge accounting criteria are met. Currently, the pronouncement has no impact on the Company, as the Company has not utilized derivative instruments or entered into any hedging activities.
(2) Basis of Presentation
The accompanying Consolidated Balance Sheet includes the accounts of the Company, as well as the accounts of the operating partnership, in which the Company has an approximately 99% controlling general partner interest. The Advisor owns the remaining
approximately 1% limited partner common units in the operating partnership for which it paid $2,000 and which is reflected as a minority interest in the accompanying Consolidated Balance Sheet. The effect of all significant intercompany transactions have
been eliminated.
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(3) Transactions with Affiliates
The Company had incurred $13,762,482 and $5,650,869 of offering costs as of September 30, 2000 and 1999, respectively, of which $9,602,538 and $3,235,221 was paid or accrued to affiliates a majority of which was reallowed to third party soliciting
dealers. Pursuant to the terms of the Offering, the Advisor is required to pay organizational and offering expenses (excluding sales commissions, the marketing contribution and the due diligence expense allowance) in excess of 5.5% of the gross proceeds
of the Offering ("Gross Offering Proceeds") or all organization and offering expenses (including selling commissions) which together exceed 15% of Gross Offering Proceeds. As of September 30, 2000, offering costs did not exceed the 5.5% and 15%
limitations, and the Company anticipates that these costs will not exceed these limitations upon completion of the Offering. Any excess amounts at the completion of the Offering will be reimbursed by the Advisor.
The Advisor and its affiliates are entitled to reimbursement for salaries and expenses of employees of the Advisor and its affiliates relating to the Offering. In addition, an affiliate of the Advisor is entitled to receive selling commissions, a
marketing contribution and a due diligence expense allowance from the Company in connection with the Offering. Such costs are offset against the Stockholders' equity accounts. As of September 30, 2000 such costs totaled $8,789,678 of which $1,712,315
was unpaid at September 30, 2000.
The Advisor and its affiliates are entitled to reimbursement for salaries and expenses of employees of the Advisor and its affiliates relating to the administration of the Company. Such costs are included in professional services to Affiliates and
general and administrative expenses to Affiliates and acquisition costs. The Company incurred $242,231 of these costs for the nine months ended September 30, 2000, all of which remained unpaid.
The Advisor has contributed $200,000 to the capital of the Company for which it received 20,000 Shares.
The Advisor may receive an annual Advisor Asset Management Fee of not more than 1% of the Average Invested Assets, paid quarterly. For any year in which the Company qualifies as a REIT, the Advisor must reimburse the Company: (i) to the extent that the
Advisor Asset Management Fee plus other operating expenses paid during the previous calendar year exceed 2% of the Company's average invested assets for the calendar year or 25% of the Company's Net Income for that calendar year; and (ii) to the extent
that stockholders have not received an annual distribution equal to or greater than the 7% Current Return. For the nine months ended September 30, 2000, the Company accrued $90,000 of such fees, all of which remain unpaid. For the nine months ended
September 30, 1999, no such fees were accrued or paid.
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
The property manager, an entity owned principally by individuals who are affiliates of the Advisor, is entitled to receive property management fees for management and leasing services. The Company incurred and paid property management
fees of $670,916 and $92,822 for the nine months ended September 30, 2000 and 1999, respectively.
(4) Stock Option Plan and Soliciting Dealer Warrants
The Company adopted an Independent Director Stock Option Plan which, subject to certain conditions, provides for the grant to each Independent Director of an option to acquire 3,000 Shares following their becoming a Director and for the grant of
additional options to acquire 500 Shares on the date of each annual stockholders' meeting commencing with the annual meeting in 2000 if the Independent Director is a member of the board of directors on such date. The options granted for the initial 3,000
Shares are exercisable as follows: 1,000 Shares on the date of grant and 1,000 Shares on each of the first and second anniversaries of the date of grant. The subsequent options will be exercisable on the second anniversary of the date of grant. The
initial options will be exercisable at $9.05 per Share. The subsequent options will be exercisable at the fair market value of a Share on the last business day preceding the annual meeting of Stockholders, and shall be $9.05 per Share until the earlier
of the termination of the Offering or February 11, 2001. As of September 30, 2000, options to acquire 10,500 Shares had been issued.
In addition to sales commissions, the dealer manager of the Offering (an affiliate of the Advisor) has the right to purchase one soliciting dealer warrant for $.0008 for each 25 Shares sold by such soliciting dealer during the
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(5) Investment Properties:
Gross amount at which Carried |
||||||||||
Initial Costs (A) |
at September 30, 2000 |
Date |
||||||||
Buildings |
Adjustments |
Buildings |
Con- |
|||||||
And |
to |
And |
Accumulated |
Stru- |
Date |
|||||
Encumbrance |
Land |
Improvements |
Basis (B) |
Land |
Improvements |
Total |
Depreciation |
cted |
Acquired |
|
Multi-Tenant Retail |
||||||||||
Lake Walden Square |
9,969,700 |
3,006,662 |
11,549,586 |
39,621 |
3,006,662 |
11,589,207 |
14,595,869 |
656,373 |
1992 |
05/99 |
Merchants Square |
3,167,437 |
992,225 |
4,749,818 |
12,811 |
992,225 |
4,762,629 |
5,754,854 |
255,521 |
1993 |
06/99 |
Town Center Commons |
4,750,000 |
3,293,792 |
6,350,835 |
22,909 |
3,293,792 |
6,373,744 |
9,667,536 |
273,116 |
1998 |
07/99 |
Boynton Commons |
15,125,000 |
8,698,355 |
21,803,370 |
(84,651) |
8,698,355 |
21,718,719 |
30,417,074 |
923,295 |
1998 |
07/99 |
Lake Olympia Square (C) |
5,805,945 |
2,567,471 |
7,306,483 |
(99,450) |
2,562,471 |
7,212,033 |
9,774,504 |
293,738 |
1995 |
09/99 |
Bridgewater Marketplace |
2,987,500 |
783,492 |
5,221,618 |
(16,085) |
783,492 |
5,205,533 |
5,989,025 |
199,713 |
1998 |
09/99 |
Bartow Marketplace |
13,475,000 |
6,098,178 |
18,308,271 |
4,072 |
6,098,178 |
18,312,343 |
24,410,521 |
644,187 |
1995 |
09/99 |
Countryside |
6,720,000 |
1,117,428 |
7,478,173 |
7,071 |
1,117,428 |
7,485,244 |
8,602,672 |
260,259 |
1997 |
10/99 |
Casselberry Commons |
8,703,000 |
6,702,658 |
11,191,912 |
(83,040) |
6,702,658 |
11,108,872 |
17,811,530 |
330,230 |
1973/ |
12/99 |
Conway Plaza |
5,000,000 |
2,215,325 |
6,332,434 |
7,857 |
2,215,325 |
6,340,291 |
8,555,616 |
172,716 |
1985/ |
02/00 |
Pleasant Hill |
17,120,000 |
4,805,830 |
29,526,305 |
(113,755) |
4,805,830 |
29,412,550 |
34,218,380 |
450,025 |
1997/ |
05/00 |
Gateway Marketplace |
13,537,500 |
6,351,847 |
14,576,809 |
- |
6,351,847 |
14,576,809 |
20,928,656 |
86,331 |
1997/ |
07/00 |
Subtotals |
106,361,082 |
46,633,263 |
144,395,614 |
(302,640) |
46,628,263 |
144,097,974 |
190,726,237 |
4,545,504 |
||
Furniture and Equipment |
11,998 |
4,239 |
||||||||
Total |
190,738,235 |
4,549,743 |
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(A) The initial cost to the Company represents the original purchase price of the property from an affiliate of the Advisor, or an unaffiliated third party, including amounts incurred subsequent to acquisition, most of which were
contemplated at the time the property was acquired.
(B) Adjustments to basis includes additions to investment properties net of payments received under master lease agreements. (Note 6)
(C) When Lake Olympia Square was purchased by an affiliate of our Advisor, $234,145 was escrowed at the closing. At the time of purchase by the Company, $89,400 of these funds remained available to be used on a monthly basis to pay the principal portion
of the debt service through July 2000. Accordingly, the net effect of this structure is that the Company had paid only the interest portion of the debt service through July 2000. The cumulative amount received by the Company was $89,400 as of
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(7) Mortgages Payable
Mortgages payable consist of the following at
Property as Collateral |
Current Interest |
Maturity |
Monthly |
Balance at |
Lake Walden Square |
7.63% |
11/2007 |
$ 72,584 (a) |
$ 9,969,698 |
Merchants Square |
7.25% |
11/2008 |
(b) |
3,167,437 |
Town Center Commons |
7.00% |
04/2006 |
(b) |
4,750,000 |
Boynton Commons |
7.21% |
03/2006 |
(b) |
15,125,000 |
Lake Olympia Square |
8.25% |
04/2007 |
50,978 (a) |
5,805,947 |
Bridgewater Marketplace |
8.37% |
09/2006 |
(c) |
2,987,500 |
Bartow Marketplace |
8.12% |
09/2004 |
(c) |
13,475,000 |
Countryside |
8.37% |
03/2001 |
(c) |
6,720,000 |
Casselberry Commons |
7.64% |
04/2006 |
(b) |
8,703,000 |
Conway Plaza |
8.27% |
06/2005 |
(c) |
5,000,000 |
Pleasant Hill Square |
8.02% |
06/2005 |
(c) |
17,120,000 |
Gateway Marketplace |
8.53% |
08/2001 |
(c) |
4,512,500 |
Gateway Marketplace |
7.94% |
06/2005 |
(b) |
9,025,000 |
$106,361,082 |
||||
============= |
||||
(a) Payments include principal and interest at a fixed rate.
(b) Payments include interest only at a fixed rate.
(c) Payments include interest only. Payments on these mortgages adjust monthly and are calculated based on a floating rate over
LIBOR.
All of these mortgages are serviced by an affiliate of the Advisor on behalf of the Company. The affiliate receives servicing fees at a market rate for such services.
In certain circumstances the Company may secure recourse financing or provide a guaranty to lenders if it believes this will result in more favorable terms offered the Company.
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(8)
Acquisition Note PayableNotes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
Property asset information is as of September 30, 2000 and December 31, 1999.
2000 |
1999 |
|
Total property revenues |
$ 15,055,429 |
2,326,837 |
Total property operating |
||
expenses |
4,253,898 |
717,681 |
Mortgage interest |
5,991,581 |
967,363 |
Net property operations |
4,809,950 |
641,793 |
Interest and dividend income |
557,988 |
98,758 |
Other income |
119,701 |
100 |
Less non property expenses: |
||
Professional services |
149,540 |
60,288 |
General and administrative |
313,219 |
104,306 |
Advisor asset management fee |
90,000 |
-- |
Acquisition costs expensed |
110,033 |
25,281 |
Depreciation and amortization |
3,451,721 |
480,809 |
Net income |
$1,373,126 |
69,967 |
Total Assets |
||
Investment properties |
$186,188,492 |
126,009,792 |
Non-segment assets |
16,500,405 |
17,978,344 |
$202,688,897 |
143,988,136 |
|
============ |
============ |
(9) Earnings per Share
Basic earnings per share ("EPS") is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by reflecting the potential dilution that could
occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.
As of September 30, 2000, warrants to purchase 409,290 shares of common stock at a price of $12.00 per share were outstanding, but were not included in the computation of diluted EPS because the exercise price of such warrants was greater than the
average market price of common shares. The weighted average number of common shares outstanding were 7,595,911 and 1,289,409 for the nine month period ended September 30, 2000 and 1999, respectively.
Notes to Consolidated Financial Statements
(Continued)
September 30, 2000
(unaudited)
(11) Commitment and Contingencies
On behalf of the Company, the advisor is currently exploring the purchase of additional shopping centers from unaffiliated third parties.
The Company is not subject to any material pending legal proceeding.
(12) Subsequent Events
The Company paid distributions of $626,099 and $707,975 to its stockholders in October and November, 2000, respectively.
On October 26, 2000, the Company paid off the $2,800,000 acquisition note payable issued in connection with it's acquisition of Gateway Market Place in St. Petersburg, FL, with $2,100,000 of additional funds from the existing mortgage payable and
$700,000 of its own cash.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this quarterly report on Form 10-Q constitute "forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. These forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among other things, limitations on the area in which the Company may acquire properties; risks associated with borrowings secured
by the Company's properties; competition for tenants and customers; federal, state or local regulations; adverse changes in general economic or local conditions; competition for property acquisitions with third parties that have greater financial
resources than the Company; inability of lessees to meet financial obligations; uninsured losses; risks of failing to qualify as a REIT; and potential conflicts of interest between the Company and its affiliates including the Advisor. The abbreviations
made in the Notes to Consolidated Financial Statements are used in this Item 2.
Liquidity and Capital Resources
The Company was formed on September 3, 1998 to acquire and manage a diversified portfolio of real estate, primarily multi-tenant shopping centers. It is anticipated that the Company will initially focus on acquiring properties in the southeastern
states, primarily Florida, Georgia, North Carolina and South Carolina. The Company may also acquire single-user retail properties in locations throughout the United States, certain of which may be sale and leaseback transactions, net leased to
creditworthy tenants. On February 11, 1999, the Company commenced the Offering of 50,000,000 Shares at a price of $10 per Share and of 4,000,000 Shares at a price of $9.50 per Share which may be distributed pursuant to the Company's distribution
reinvestment program ("DRP"). Inland Retail Real Estate Advisory Services, Inc. is the Advisor to the Company. As of September 30, 2000 and December 31, 1999, subscriptions for a total of 10,265,307 and 5,390,632 Shares, respectively, had been received
from the public, which includes 20,000 Shares issued to the Advisor. In addition, the Company has distributed 184,015 and 43,207 Shares, respectively, pursuant to the Company's DRP as of September 30, 2000 and 1999. As of September 30, 2000 the Company
has repurchased 39,523 common Shares and has sold 409,290 soliciting dealers warrants. As a result of such sales repurchases, the Company has received a net total of 103,625,606 of Gross Offering Proceeds as of September 30, 2000. The Advisor has
guaranteed payment of all public offering expenses (excluding selling commissions, the marketing contribution and the due diligence expense allowance) in excess of 5.5% of the Gross Offering Proceeds or all organization and offering expenses (including
such selling expenses) which together exceeds 15% of the Gross Offering Proceeds. As of September 30, 2000 and December 31, 1999, organizational and offering costs totaling $13,762,482 and $8,057,059, respectively, did not exceed these limitations, and
the Company anticipates that these costs will not exceed these limitations upon completion of the Offering. Any excess amounts at the completion of the Offering will be reimbursed by the Advisor.
The Company will provide the following programs to facilitate investment in the Shares and to provide limited liquidity for Stockholders until such time as a market for the Shares develops:
The distribution reinvestment program will allow stockholders who purchase Shares pursuant to the Offering to automatically reinvest distributions by purchasing additional Shares from the Company. Such purchases will not be subject to
selling commissions or the marketing contribution and due diligence expense allowance and will be sold at a price of $9.50 per Share.
The share repurchase program will, subject to certain restrictions, provide existing stockholders with limited, interim liquidity by enabling them to sell Shares back to the Company. The prices at which Shares may be sold back to the Company are as
follows:
- During the Offering period at $9.05 per Share;
- During the 12 months following the end of the Offering period at $9.25 per
Share;
- During the next 12 months at $9.50 per Share;
- During the next 12 months at $9.75 per Share; and
- Thereafter, at the greater of: (i) $10 per Share; or (ii) a price equal to
10 times our "funds available for distribution" per weighted average Share
outstanding for the prior calendar year.
Shares purchased by the Company will not be available for resale. As of September 30, 2000, 39,523 Shares had been repurchased at the cost of $357,683.
Cash Flows From Operating Activities
Net cash provided by operating activities generated $6,512,851 and $1,257,373 for the nine months ended September 30, 2000 and 1999, respectively,. This is due primarily to the operations of the nine properties acquired during 1999 and three
additional properties acquired during the nine months ended September 30, 2000. Included in additional rental income for the three and nine months ended September 30, 2000 was $57,588 received from a tenant
who canceled the remainder of it's lease which had one year remaining. Also, included in other income for the three and nine months ended September 30, 2000 is a $64,000 net settlement from a developer who mutually canceled a sales agreement with the
Company for a shopping center project near Atlanta, GA.
Cash Flows From Investing Activities
Cash flows used in investing activities were utilized primarily for the purchase of three and nine properties in the nine month periods ended September 30, 2000 and 1999, respectively. The Company purchased investment securities in the third quarter
of 2000 in the amount of $660,066 using its margin account of $155,165.
Cash Flows From Financing Activities
For the nine months ended September 30, 2000 and 1999, the Company generated $51,263,594 and $29,138,575, respectively, of cash flows from financing activities. This was due primarily to proceeds raised of $49,683,499 and $31,941,910 from the sale
of Shares for the nine months ended September 30, 2000 and 1999, respectively. The Company's cash flow from financing activities was partially offset by the cash used to pay costs associated with selling Shares for the nine months ended September 30,
2000 and 1999,. For the nine months ended September 30, 2000 and 1999,, the Company paid offering costs totaling $6,795,332 and $2,797,095, respectively. The Company also obtained debt totaling $35,657,500. In addition, for the nine months ended
September 30, 2000 the Company also paid distributions of $4,030,862 and loan fees of $497,258. For the nine months ended September 30, 1999 the Company also paid distributions of $367,472 and loan fees of $131,350.
Results of Operations
Since inception, the Company has incurred a total of $13,762,482 and $5,650,869 for costs incurred with the Offering, of which $1,773,995 and $2,853,774 remained unpaid through September 30, 2000 and 1999, respectively.
Rental income, additional rental income, property operating expenses, mortgage interest and depreciation are all a result of the operations from the nine properties acquired during 1999 and three additional properties acquired in 2000.
Winn-Dixie, an anchor tenant in three of the properties owned by the Company, whose gross rental income from its three stores in the Company's properties represents 6% of the Company's total gross rental income from all of its properties as of September
30, 2000, is currently under going a restructuring. The Company has been assured by management of Winn-Dixie that the stores located in the Company's specific properties are not closing as part of the restructuring.
Sports Authority, a tenant in one of the Company's properties has also undergone a restructuring, closing some of its unprofitable stores. However, it is the Company's understanding that there are no current plans to close the store which occupies space
in our property. Store closings do not relieve tenants of their obligations under existing leases.
Two tenants, Service Merchandise and Carmike Cinema each occupy one space in Company properties and have recently filed for bankruptcy protection under federal law. These tenants have the right under bankruptcy laws to terminate their leases with us,
but these tenants have neither assumed nor rejected their leases with the Company. The Service Merchandise store is based on a smaller, newer format which Service Merchandise has indicated it intends to continue to operate and has been paying rent on a
current basis. At closing, a master lease was established with the Seller escrowing funds to assure rent and reimbursements for two years, as well as payment of estimated tenant improvements and leasing commissions. The Company's Carmike Cinema space
has no other local competition. Representatives of Carmike have approached the Company to discuss a possible reduction in rental rates, however there is no current indication that they intend to cease operating at this location.
In 2000, the Company purchased two properties in Florida with environmental concerns. Based on research done by the Company, the potential availability of state funds for cleanup purposes and private insurance coverage purchased by the Company, the
Company believes it is adequately protected against losses related to these matters.
Funds from Operations
One of the Company's objectives is to provide cash distributions to its stockholders from cash generated by the Company's operations. Cash generated from operations is not equivalent to the Company's net operating income as determined under GAAP.
Due to certain unique operating characteristics of real estate companies, the National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a standard known as "Funds from Operations" or "FFO" for short, which
it believes more accurately reflects the operating performance of a REIT such as the Company. As defined by NAREIT, FFO means net income computed in accordance with GAAP excluding gains (or losses) from debt restructuring and sales of properties plus
depreciation and amortization and after adjustments for unconsolidated partnership and joint ventures in which the REIT holds an interest. The Company has adopted the NAREIT definition for computing FFO because management believes that, subject to the
following limitations, FFO provides a basis for comparing the performance and operations of the Company to those of other REITs. The calculation of FFO may vary from entity to entity since capitalization and expense policies tend to vary from entity to
entity. Items which are capitalized do not impact FFO,
whereas items that are expensed reduce FFO. Consequently, the presentation of FFO by the Company may not be comparable to other similarly titled measures presented by other REITs. FFO is not intended to be an alternative to "Net Income" as an
indicator of the Company's performance nor to "Cash Flows from Operating Activities" as determined by GAAP as a measure of the Company's capacity to pay distributions. FFO and funds available for distribution are calculated as follows:
Nine months ended September 30, |
|||
2000 |
1999 |
||
Net income |
$ 1,373,126 |
$ 69,967 |
|
Depreciation |
3,320,421 |
479,183 |
|
Funds from operations (1) |
4,693,547 |
549,150 |
|
Principal amortization of debt |
(176,391) |
(50,042) |
|
Straight-line rent receivable (2) |
(340,799) |
(35,809) |
|
Income received under master lease |
|||
Agreements and other escrows (4) |
393,491 |
62,042 |
|
Acquisition costs expenses (3) |
110,033 |
25,281 |
|
Funds available for distribution |
$ 4,679,881 |
$ 550,622 |
|
=========== |
=========== |
(1) FFO does not represent cash generated from operating activities calculated in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. FFO should not be considered as an alternative to net income as an
indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity.
(2) Certain tenant leases contain provisions providing for stepped rent increases. GAAP requires the Company to record rental income for the period of occupancy using the effective monthly rent, which is the average monthly rent for the
entire period of occupancy during the term of the lease.
(3) Acquisition costs expensed include certain costs and expenses relating to the acquisition of properties. These costs are estimated to be up to .5% of the Gross Offering Proceeds and are paid from the proceeds of the Offering.
(4) As part of several purchases, the Company receives payments under master lease agreements on some of the space which was vacant at the time of the purchase for periods ranging from one to two years from the date of the purchase or until
the spaces are leased. In addition, the Company received payments from other escrow arrangements. GAAP requires that as these payments are received, they be recorded as a reduction in the purchase price of the properties rather than as rental income.
The following table lists the approximate physical occupancy levels for the Company's properties as of the end of each quarter during 2000 and 1999. N/A indicates the property was not owned by the Company at the end of the quarter.
2000 |
1999 |
|||||||
Properties: |
at |
at |
at |
at |
at |
at |
at |
at |
Lake Walden Square Plant City, FL |
94 |
84 |
95 |
N/A |
93 |
93 |
94 |
|
Merchants Square Zephyrhills, FL |
100 |
100 |
100 |
N/A |
100 |
100 |
100 |
|
Town Center Commons Kennesaw, GA |
93 |
93* |
93* |
N/A |
N/A |
100 |
100 |
|
Boynton Commons Boynton Beach, FL |
97* |
96* |
96* |
N/A |
N/A |
95* |
95* |
|
Lake Olympia Square Ocoee, FL |
100 |
85 |
85 |
N/A |
N/A |
96 |
100 |
|
Bridgewater Marketplace Orlando, FL |
97* |
98* |
98* |
N/A |
N/A |
97* |
92* |
|
Bartow Marketplace Cartersville, GA |
100 |
100 |
100 |
N/A |
N/A |
100 |
100 |
|
Countryside Naples, Fl |
98 |
98 |
97 |
N/A |
N/A |
N/A |
98 |
|
Casselberry Commons Casselberry, FL |
97* |
95* |
95* |
N/A |
N/A |
N/A |
97* |
|
Conway Plaza |
97* |
97* |
97* |
N/A |
N/A |
N/A |
N/A |
|
Pleasant Hill |
N/A |
92* |
94 |
N/A |
N/A |
N/A |
N/A |
|
Gateway Marketplace |
N/A |
N/A |
98 |
N/A |
N/A |
N/A |
N/A |
|
* As part of the purchase of some of the properties, the Company received payments under master lease agreements on some of the space which was vacant at the time of purchase, which results in economic occupancy ranging from 99% to 100% at September 30,
2000 for each of these shopping centers. The master lease agreements are for periods ranging from one to two years from the purchase date or until the spaces are leased. The percentages in the above table do not include unleased space covered by master
lease agreements.
Year 2000 Issues
As part of it's year end 2000 readiness plan, the Company had identified three areas for compliance efforts: business computer systems, tenants and suppliers and non-information technology systems. The Company has not experienced and does not
anticipate experiencing any problems relating to year 2000 issues in any of these areas. Total costs associated with year 2000 readiness were not significant.
New Accounting Literature
On December 2, 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin 101, "Revenue Recognition in Financial Statements" (SAB 101). The staff determined that a lessor should defer recognition of contingent rental income such
as percentage/excess rent until the specified breakpoint that triggers the contingent rental income is achieved. The Company records percentage rental revenue in accordance with the SAB 101.
FASB Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," effective for fiscal years beginning after June 15, 2000, establishes accounting and reporting standards requiring that every
derivative instrument, including certain derivative instruments imbedded in other contracts, be reported in the balance sheet as either an asset or liability measured at its fair value. The statement also requires that the changes in the derivative's
fair value be recognized in earnings unless specific hedge accounting criteria are met. Currently, the pronouncement has no impact on the Company, as the Company has not utilized derivative instruments or entered into any hedging activities.
Subsequent Events
The Company paid distributions of $626,099 and $707,975 to its stockholders in October and November, 2000, respectively.
On October 26, 2000, the Company paid off the $2,800,000 acquisition note payable issued in connection with it's acquisition of Gateway Market Place in St. Petersburg, FL, with $2,100,000 of additional funds from the existing mortgage payable and
$700,000 of its own cash.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to interest rate changes primarily as a result of its long-term debt used to maintain liquidity and fund capital expenditures and expansion of the Company's real estate investment portfolio and operations. The Company's
interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. To achieve its objectives the Company borrows primarily at fixed rates or at floating rates
with the option to fix the rate at a later date and may enter into derivative financial instruments such as interest rate swaps, caps and treasury locks in order to mitigate its interest rate risk on related financial instruments. The Company does not
enter into derivative or interest rate transactions for speculative purposes.
The Company's interest rate risk is monitored using a variety of techniques. The table below presents the principal amounts and weighted average interest rates by year of expected maturity to evaluate the expected cash flows and sensitivity to interest
rate changes.
2000 |
2001 |
2002 |
2003 |
2004 |
|
Fixed rate debt |
$ 61,180 |
257,199 |
278,462 |
303,957 |
353,316 |
Weighted average |
|||||
Interest rate on |
|||||
Maturing debt |
-- |
-- |
-- |
-- |
-- |
Variable rate debt |
$ -- |
11,232,500 |
-- |
-- |
13,475,000 |
Weighted average |
|||||
Interest rate on |
|||||
Maturing debt |
-- |
8.43% |
-- |
-- |
8.12% |
The fair value of the Company's debt approximates its carrying amount.
Approximately $49,815,000, or 47% of the Company's mortgages payable at September 30, 2000, have variable interest rates averaging 8.19%. An increase in the variable interest rate on certain mortgages payable constitutes a market risk.
PART II - Other Information
Items 1, 3 and 5 are omitted because of the absence of conditions under which they are required.
Item 2. Changes in Securities and Use of Proceeds
The Company has registered pursuant to a registration statement under the Securities Act of 1933 (SEC File Number 333-64391) the offering on a best efforts basis of 50,000,000 Shares at $10.00 per Share, subject to discounts in certain cases; up to
4,000,000 Shares at $9.50 per Share pursuant to the Company's DRP; 2,000,000 Soliciting Dealer Warrants at $.0008 per Soliciting Dealer Warrants; and 2,000,000 Shares issuable upon exercise of the Soliciting Dealer Warrants at an exercise price of $12.00
per Share (the "Offering"). The Offering commenced on February 11, 1999 and has not terminated. The maximum aggregate Offering price of the securities registered is $562,001,600. Inland Securities Corporation, an affiliate of the Advisor, is the Dealer
Manager of the Offering.
As of September 30, 2000, the Company has sold the following securities for the following aggregate offering prices:
* |
10,265,307 |
Shares on a best efforts basis for $102,235,144; |
* |
184,015 |
Shares pursuant to the DRP for $1,748,145 |
* |
409,290 |
Soliciting Dealer Warrants for $327; and |
* |
0 |
Shares pursuant to the exercise of Soliciting Dealer Warrants, |
and repurchased the following securities for the following amount: |
||
* |
(39,523) |
Shares repurchased pursuant to the Share Repurchase Program for $357,683, |
* |
for a net total of 10,409,799 Shares for $103,625,606 of gross offering proceeds as of September 30, 2000. |
The above-stated number of Shares sold and the gross offering proceeds received from such sales do not include the 20,000 Shares purchased by the Advisor for $200,000 preceding the commencement of the Offering. As of September 30, 2000, 409,290
Soliciting Dealer Warrants had been earned, all of which have been issued; and the $327 of gross proceeds received for their issuance is not included in the above $103,625,606 of gross offering proceeds.
From the February 11, 1999 effective date of the Offering through September 30, 2000 (the "Cumulative Period"), the following expenses have been incurred for the Company's account in connection with the issuance and distribution of the
registered securities:
Type of Expense |
Amount |
E=Estimated A=Actual |
Underwriting Discounts and commissions |
$ 8,789,678 |
A |
Finders' fees |
-- |
A |
Expenses paid to or for underwriters |
-- |
A |
Other expenses to affiliates |
812,860 |
A |
Other expenses paid to non-affiliates |
4,159,944 |
A |
Total expenses |
$13,762,482 |
The underwriting discounts and commissions, and the expenses paid to or for underwriters, were paid to Inland Securities Corporation. Inland Securities
Corporation reallowed all or a portion of the commissions and expenses to Soliciting Dealers.
Total expenses of $13,762,482 include $1,773,995 which were unpaid at September 30, 2000. The net offering proceeds to the Company for the Cumulative Period, after deducting the total expenses paid described in the above table, are $89,863,124.
Cumulatively, the Company used the net offering proceeds as follows:
Use of Proceeds |
Amount |
E=Estimated A=Actual |
Construction of plant, building and facilities |
-- |
A |
Purchase of real estate |
$ 58,242,911 |
A |
Acquisition of other businesses |
-- |
A |
Repayment of indebtedness |
23,319,879 |
A |
Working capital (currently) |
1,036,256 |
E |
Temporary investments (currently) |
7,264,078 |
E |
Other uses |
-- |
A |
Of the amount used for purchases of real estate, $10,502,117 was paid to affiliates of the Advisor in connection with the acquisition of properties from such affiliates. Pending purchases of real estate, the Company temporarily invested net offering
proceeds in short-term interest bearing accounts.
Item 4. Submission of Matters to a Vote of Security Holders.
The Company is not a party to any material pending legal proceedings.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required by the Securities and Exchange Commission Regulations
S-K. Item 601.
The following documents are incorporated by reference:
Registration Statement on Form S-11 and related exhibits, as amended,
File No. 333-64391, filed under the Securities Act of 1933.
(b) Reports on Form 8-K:
The following reports on Form 8-K were filed during the quarter of the
period covered by this report.
Report on Form 8-K dated July 28, 2000
Item 2. Acquisition or Disposition of Assets
Item 5. Other Events
Item 7. Financial Statements and Exhibits
Report on Form 8-K/A dated July 28, 2000
Item 7. Financial Statements and Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INLAND RETAIL REAL ESTATE TRUST, INC.
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman and Chief Executive Officer
Date: November 13, 2000
/S/ BARRY L. LAZARUS
By: Barry L. Lazarus
President and Chief Operating Officer
Treasurer and Chief Financial Officer
Date: November 13, 2000
|