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Previous: PARKWAY CO/TX, S-4/A, 1995-03-09 |
Next: OPPENHEIMER ASSET ALLOCATION FUND, N-30D, 1995-03-09 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 2
TO
SCHEDULE 13E-3
RULE 13e-3 TRANSACTION STATEMENT
(Pursuant to section 13(e) of the Securities Exchange Act of 1934)
EB, INC.
- -------------------------------------------------------------------------------
(NAME OF ISSUER)
THE PARKWAY COMPANY
EB, INC.
- -------------------------------------------------------------------------------
(NAME OF PERSON(S) FILING STATEMENT)
SHARES OF COMMON STOCK, $1.00 PAR VALUE PER SHARE
- -------------------------------------------------------------------------------
(TITLE OF CLASS OF SECURITIES)
277775-10-2
- -------------------------------------------------------------------------------
(CUSIP NUMBER OF CLASS OF SECURITIES)
MR. STEVEN G. ROGERS
300 ONE JACKSON PLACE
188 EAST CAPITOL STREET
JACKSON, MISSISSIPPI 39201
(601) 948-4091
- -------------------------------------------------------------------------------
(NAMES, ADDRESSES AND TELEPHONE NUMBERS OF PERSON(S) AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS ON BEHALF OF
PERSON(S) FILING STATEMENT)
with a copy to:
Charles F. Horne IV, Esq. Steven M. Hendrix, Esq.
Jaeckle, Fleischmann & Mugel Forman, Perry, Watkins & Krutz
800 Fleet Bank Building 188 East Capitol Street
Twelve Fountain Plaza P.O. Box 22608
Buffalo, New York 14202 Jackson, Mississippi 39225-2608
(716) 856-0600 (601) 960-8603
This statement is filed in connection with (check the appropriate box):
a. [x] The filing of solicitation materials or an
information statement subject to Regulation 14A, Regulation 14C or Rule
13e-3(c) under the Securities Exchange Act of 1934.
b. [x] The filing of a registration statement under the
Securities Act of 1933.
<PAGE> 2
c. [ ] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information statement
referred to above are preliminary copies [x]
- 2 -
<PAGE> 3
CROSS REFERENCE SHEET
The following cross reference sheet is being supplied pursuant
to General Instruction F to Schedule 13E-3 and shows the location, in Amendment
No. 2 to the Registration Statement on Form S-4 (No. 33-85950) ("Amendment No.
2 to Form S-4") filed by Parkway with the Securities and Exchange Commission on
the date hereof, of the information required to be included in response to the
items of this Amendment to the Rule 13E-3 Transaction Statement ("Statement
Amendment No. 2"). The information in Amendment No. 2 to Form S-4, which is
Exhibit (17)(d) to this Statement Amendment No. 2, is hereby expressly
incorporated herein by reference and the responses to each item are qualified
in their entirety by the provisions of Amendment No. 2 to Form S-4.
<TABLE>
<CAPTION>
ITEM IN SCHEDULE 13E-3 WHERE LOCATED IN FORM S-4
- ----------------------------------- ---------------------------------------------------------------
<S> <C>
Item 1(a) . . . . . . . . . . . . . Facing page of Joint Proxy Statement/Prospectus
Item 1(b) . . . . . . . . . . . . . Summary--EB, Inc. and The Parkway Company; Summary--Record
Date; Securities Entitled to Vote; Market Prices and Dividends
Item 1(c) . . . . . . . . . . . . . Market Prices and Dividends
Item 1(d) . . . . . . . . . . . . . Market Prices and Dividends
Item 1(e) . . . . . . . . . . . . . Not Applicable
Item 1(f) . . . . . . . . . . . . . Voting and Proxy Information;
Special Factors--Background of the Merger; Information
Concerning Parkway
Item 2(a) . . . . . . . . . . . . . Facing Page of Joint Proxy Statement/Prospectus; Summary--EB,
Inc. and The Parkway Company;
Special Factors--Expense-Sharing Arrangements;
Special Factors--Board of Directors and Management of Parkway
After the Merger;
Appendix E;
Appendix F
Item 2(b) . . . . . . . . . . . . . Special Factors--Board of Directors and Management of Parkway
After the Merger;
Appendix E;
Appendix F
</TABLE>
- 3 -
<PAGE> 4
<TABLE>
<CAPTION>
ITEM IN SCHEDULE 13E-3 WHERE LOCATED IN FORM S-4
- ----------------------------------- ------------------------------------------------------------
<S> <C>
Item 2(c) . . . . . . . . . . . . . Special Factors--Board of Directors and Management of Parkway
After the Merger;
Appendix E;
Appendix F
Item 2(d) . . . . . . . . . . . . . Special Factors--Board of Directors and Management of Parkway
After the Merger;
Appendix E;
Appendix F
Item 2(e) . . . . . . . . . . . . . Not Applicable
Item 2(f) . . . . . . . . . . . . . Not Applicable
Item 2(g) . . . . . . . . . . . . . Special Factors--Board of Directors and Management of Parkway
After the Merger;
Appendix E;
Appendix F
Item 3(a) . . . . . . . . . . . . . Introduction;
Special Factors--Background of the Merger;
Special Factors--The Merger Agreement;
Special Factors--Expense Sharing Arrangements; Information
Concerning Parkway
Item 3(b) . . . . . . . . . . . . . Not Applicable
Item 4(a) . . . . . . . . . . . . . Introduction;
Special Factors--The Merger Agreement
Item 4(b) . . . . . . . . . . . . . Not Applicable
Item 5 . . . . . . . . . . . . . . Introduction;
Special Factors--The Merger Agreement;
Special Factors--Board of Directors and Management of Parkway
After the Merger
Item 6(a) . . . . . . . . . . . . . Introduction;
Special Factors--The Merger Agreement
Item 6(b) . . . . . . . . . . . . . Special Factors--Expenses of the Merger
Item 6(c) . . . . . . . . . . . . . Not Applicable
Item 6(d) . . . . . . . . . . . . . Not Applicable
</TABLE>
- 4 -
<PAGE> 5
<TABLE>
<CAPTION>
ITEM IN SCHEDULE 13E-3 WHERE LOCATED IN FORM S-4
- ------------------------------------ --------------------------------------------------------
<S> <C>
Item 7(a) . . . . . . . . . . . . . Special Factors--Background of the Merger;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Reasons for Effecting the Merger
Item 7(b) . . . . . . . . . . . . . Special Factors--Background of the Merger;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Reasons for Effecting the Merger;
Special Factors--Federal Income Tax Consequences
Item 7(c) . . . . . . . . . . . . . Special Factors--Background of the Merger;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Reasons for Effecting the Merger;
Special Factors--Federal Income Tax Consequences
Item 7(d) . . . . . . . . . . . . . Introduction;
Special Factors--The Merger Agreement;
Special Factors--Appraisal Rights of Dissenting Shareholders of
EB;
Special Factors--No Appraisal Rights for Parkway Shareholders;
Special Factors--Federal Income Tax Consequences; Differences
in Shareholders' Rights;
Special Factors--Expenses of the Merger;
Special Factors--Restrictions on Resales of Securities
Item 8(a) . . . . . . . . . . . . . Voting and Proxy Information;
Special Factors--Special Considerations;
Special Factors--EB Fairness Opinion;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Position on Fairness to EB
Shareholders;
Special Factors--Parkway Fairness Opinion;
Special Factors--Parkway's Reasons for Effecting the Merger
Item 8(b) . . . . . . . . . . . . . Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Position on Fairness to EB
Shareholders;
Special Factors--Parkway's Reasons for Effecting the Merger
</TABLE>
- 5 -
<PAGE> 6
<TABLE>
<CAPTION>
ITEM IN SCHEDULE 13E-3 WHERE LOCATED IN FORM S-4
- ----------------------------------- ------------------------------------------------------
<S> <C>
Item 8(c) . . . . . . . . . . . . . Special Factors--Parkway's Position on Fairness to EB
Shareholders
Item 8(d) . . . . . . . . . . . . . Special Factors--EB Fairness Opinion
Item 8(e) . . . . . . . . . . . . . Special Factors--Background of the Merger;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Reasons for Effecting the Merger
Item 8(f) . . . . . . . . . . . . . Not Applicable
Item 9(a) . . . . . . . . . . . . . Special Factors--EB Fairness Opinion;
Special Factors--Parkway Fairness Opinion;
Appendix A;
Appendix G
Item 9(b) . . . . . . . . . . . . . Special Factors--EB Fairness Opinion;
Special Factors--Parkway Fairness Opinion;
Appendix A;
Appendix G
Item 9(c) . . . . . . . . . . . . . Special Factors--EB Fairness Opinion;
Special Factors--Parkway Fairness Opinion;
Appendix A;
Appendix G
Item 10(a) . . . . . . . . . . . . Voting and Proxy Information;
Special Factors--Expense-Sharing Arrangements;
Appendix E;
Appendix F
Item 10(b) . . . . . . . . . . . . Not Applicable
Item 11 . . . . . . . . . . . . . . Special Factors--Background of the Merger
Item 12(a) . . . . . . . . . . . . Special Factors--Expense-Sharing Arrangements;
Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Reasons for Effecting the Merger
</TABLE>
- 6 -
<PAGE> 7
<TABLE>
<CAPTION>
ITEM IN SCHEDULE 13E-3 WHERE LOCATED IN FORM S-4
- ------------------------------------ ----------------------------------------------------------
<S> <C>
Item 12(b) . . . . . . . . . . . . Special Factors--EB's Reasons for Recommending the Merger;
Special Factors--Parkway's Position on Fairness to EB
Shareholders;
Special Factors--Parkway's Reasons for Effecting the Merger
Item 13(a) . . . . . . . . . . . . Joint Proxy Statement/Prospectus Summary--Dissenters' Rights;
Special Factors--Special Considerations;
Special Factors--Appraisal Rights of Dissenting Shareholders of
EB;
Special Factors--No Appraisal Rights for Parkway Shareholders
Item 13(b) . . . . . . . . . . . . Not Applicable
Item 13(c) . . . . . . . . . . . . Special Factors--Restrictions on Resales of Securities
Item 14(a) . . . . . . . . . . . . Incorporation of Certain Documents by Reference;
Information Concerning EB
Item 14(b) . . . . . . . . . . . . Joint Proxy Statement/Prospectus--Unaudited Pro Forma
Consolidated Selected Financial Data;
Joint Proxy Statement/Prospectus--Selected Comparative Per
Share Data
Item 15(a) . . . . . . . . . . . . Voting and Proxy Information
Item 15(b) . . . . . . . . . . . . Other Matters
Item 16 . . . . . . . . . . . . . . All headings in Registration Statement
Item 17(a) . . . . . . . . . . . . Not Applicable
Item 17(b) . . . . . . . . . . . . Appendix A;
Appendix G
Item 17(c) . . . . . . . . . . . . Not Applicable
Item 17(d) . . . . . . . . . . . . All headings in Registration Statement
Item 17(e) . . . . . . . . . . . . Special Factors--Appraisal Rights of Dissenting Shareholders of
EB;
Special Factors--No Appraisal Rights for Parkway Shareholders
Item 17(f) . . . . . . . . . . . . Not Applicable
</TABLE>
- 7 -
<PAGE> 8
AMENDED RULE 13E-3 TRANSACTION STATEMENT
This Amendment No. 2 to the Rule 13e-3 Transaction Statement
("Statement Amendment No. 2") relates to the purchase by The Parkway Company
("Parkway"), a Texas corporation, of 702,545 shares of EB, Inc. ("EB"), a
Mississippi corporation, in exchange for 565,090 shares of Parkway common
stock, par value $1.00 per share ("Parkway Shares"), and $5,620,360 in cash,
upon the terms and subject to the conditions set forth in the Agreement and
Plan of Merger dated as of October 28, 1994 (as amended by the First Amendment
to Agreement and Plan of Merger dated January 26, 1995) (the "Merger
Agreement"), a copy of which is filed as Appendix B (Exhibit 2) to Amendment
No. 2 to the Registration Statement on Form S-4 (No. 33-85950) filed by Parkway
with the Securities and Exchange Commission on the date hereof ("Amendment No.
2 to Form S-4"). All references below to the "Joint Proxy
Statement/Prospectus" are references to the Joint Proxy Statement/Prospectus
portion of Amendment No. 2 to Form S-4.
Item 1. Issuer and Class of Security Subject to the Transaction.
--------------------------------------------------------
(a) The information set forth in the facing page of the
Joint Proxy Statement/Prospectus is incorporated herein by reference.
(b) The information set forth in the "SUMMARY--EB, Inc.
and The Parkway Company," "SUMMARY--Record Date; Securities Entitled to Vote"
and "MARKET PRICES AND DIVIDENDS" of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
(c) and (d) The information set forth in "MARKET PRICES AND
DIVIDENDS" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(e) Not applicable.
(f) Except as described in "VOTING AND PROXY
INFORMATION," "SPECIAL FACTORS--Background of the Transaction" and
"INFORMATION CONCERNING PARKWAY," which are incorporated herein by reference,
there have been no transactions in EB Shares by Parkway during the past three
years.
Item 2. Identity and Background.
------------------------
(a) This Statement Amendment No. 2 is being filed by
Parkway and EB. The information set forth in the facing page of the Joint
Proxy Statement/Prospectus, "SUMMARY--EB, Inc., and The Parkway Company,"
"SPECIAL FACTORS--Expense-Sharing Arrangements," "SPECIAL FACTORS--Board of
Directors and Management of Parkway After the Merger," Appendix E and Appendix
F of the Joint Proxy Statement/Prospectus is incorporated herein by reference.
- 8 -
<PAGE> 9
(b) through (d) and (g) The information set forth in
"SPECIAL FACTORS--Board of Directors and Management of Parkway After the
Merger," Appendix E and Appendix F of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
(e) and (f) During the last five years, neither Parkway nor
EB, nor any of the persons listed on Appendices E and F of the Joint Proxy
Statement/Prospectus, (i) has been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors), or (ii) was a party to
a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining further violations of, or prohibiting
activities subject to, federal or state securities laws or finding any
violation of such laws.
Item 3. Past Contacts, Transactions or Negotiations.
--------------------------------------------
(a) The information set forth in "INTRODUCTION," "SPECIAL
FACTORS--Background of the Merger," "SPECIAL FACTORS--The Merger Agreement,"
"SPECIAL FACTORS--Expense-Sharing Arrangements" and "INFORMATION CONCERNING
PARKWAY" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(b) Not applicable.
Item 4. Terms of the Transaction.
-------------------------
(a) The information set forth in "INTRODUCTION" and
"SPECIAL FACTORS--The Merger Agreement" of the Joint Proxy Statement/Prospectus
is incorporated herein by reference.
(b) Not Applicable.
Item 5. Plans or Proposals of the Issuer or Affiliate.
----------------------------------------------
(a) through (g) The information set forth in "INTRODUCTION,"
"SPECIAL FACTORS--The Merger Agreement" and "SPECIAL FACTORS-- Board of
Directors and Management of Parkway After the Merger" of the Joint Proxy
Statement/Prospectus is incorporated herein by reference.
Item 6. Source and Amounts of Funds or Other Consideration.
---------------------------------------------------
(a) The information set forth in "SPECIAL
FACTORS--Background of the Merger," "INTRODUCTION" and "SPECIAL FACTORS--The
Merger Agreement" of the Joint Proxy Statement/Prospectus is incorporated
herein by reference.
(b) The information set forth in "SPECIAL
FACTORS--Expenses of the Merger" of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
- 9 -
<PAGE> 10
(c) Not Applicable.
(d) Not Applicable.
Item 7. Purpose(s), Alternatives, Reasons and Effects.
----------------------------------------------
(a) The information set forth in "SPECIAL
FACTORS--Background of the Merger," "SPECIAL FACTORS--EB's Reasons for
Recommending the Merger" and "SPECIAL FACTORS--Parkway's Reasons for Effecting
the Merger" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(b) The information set forth in "SPECIAL
FACTORS--Background of the Merger," "SPECIAL FACTORS--EB's Reasons for
Recommending the Merger," "SPECIAL FACTORS--Parkway's Reasons for Effecting the
Merger" and "SPECIAL FACTORS--Federal Income Tax Consequences" of the Joint
Proxy Statement/Prospectus is incorporated herein by reference.
(c) The information set forth in "SPECIAL
FACTORS--Background of the Merger," "SPECIAL FACTORS--EB's Reasons for
Recommending the Merger," "SPECIAL FACTORS--Parkway's Reasons for Effecting the
Merger" and "SPECIAL FACTORS--Federal Income Tax Consequences" of the Joint
Proxy Statement/Prospectus is incorporated herein by reference.
(d) The information set forth in "INTRODUCTION," "SPECIAL
FACTORS--The Merger Agreement," "SPECIAL FACTORS--Appraisal Rights of
Dissenting Shareholders," "SPECIAL FACTORS--No Appraisal Rights for Parkway
Shareholders," "SPECIAL FACTORS--Federal Income Tax Consequences," "SPECIAL
FACTORS--Expenses of the Merger," "SPECIAL FACTORS--Restrictions on Resales of
Securities" and "DIFFERENCES IN SHAREHOLDERS' RIGHTS" of the Joint Proxy
Statement/Prospectus is incorporated herein by reference.
Item 8. Fairness of the Transaction.
----------------------------
(a) The information set forth in "VOTING AND PROXY
INFORMATION," "SPECIAL FACTORS--Special Considerations," "SPECIAL FACTORS--EB
Fairness Opinion," "SPECIAL FACTORS--EB's Reasons for Recommending the
Merger," "SPECIAL FACTORS--Parkway's Position on Fairness to EB Shareholders,"
"SPECIAL FACTORS--Parkway Fairness Opinion" and "SPECIAL FACTORS--Parkway's
Reasons for Effecting the Merger" of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
(b) The information set forth in "SPECIAL FACTORS--EB's
Reasons for Recommending the Merger," "SPECIAL FACTORS--Parkway's Position on
Fairness to EB Shareholders" and "SPECIAL FACTORS--Parkway's Reasons for
Effecting the Merger" of the Joint Proxy Statement/Prospectus is incorporated
herein by reference.
(c) The Merger is not structured so that approval of at
least a majority of unaffiliated security holders is required. The information
included in "SPECIAL FACTORS--Parkway's Position on Fairness to EB
Shareholders" of the Joint Proxy Statement/Prospectus is incorporated herein
by reference.
- 10 -
<PAGE> 11
(d) The information set forth in "SPECIAL FACTORS--EB
Fairness Opinion" of the Joint Proxy Statement/Prospectus is incorporated
herein by reference.
(e) The information set forth in "SPECIAL
FACTORS--Background of the Merger," "SPECIAL FACTORS--EB's Reasons for
Recommending the Merger" and "SPECIAL FACTORS--Parkway's Reasons for Effecting
the Merger" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(f) Not Applicable. Parkway acquired 430,371 shares of
EB from the Resolution Trust Corporation (the "RTC"), on January 6, 1994. The
RTC solicited bids for those shares and neither Parkway nor EB knows if any
other bids for those shares were received by the RTC.
Item 9. Reports, Opinions, Appraisals and Certain Negotiations.
-------------------------------------------------------
(a) through (c) The information set forth in "SPECIAL
FACTORS--EB Fairness Opinion," "SPECIAL FACTORS--Parkway Fairness Opinion,"
Appendix A and Appendix G of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
Item 10. Interest in Securities of the Issuer.
-------------------------------------
(a) The information set forth in "VOTING AND PROXY
INFORMATION," "SPECIAL FACTORS--Expense Sharing Arrangements," Appendix E and
Appendix F of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(b) There have been no transactions in EB Shares during
the past 60 days by EB, Parkway, Congress Street or any of their trustees,
directors or executive officers.
Item 11. Contracts, Arrangements or Understandings with Respect to the
-------------------------------------------------------------
Issuer's Securities.
--------------------
The information set forth in "SPECIAL FACTORS--Background of
the Merger" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
Item 12. Present Intention and Recommendation of Certain Persons with
------------------------------------------------------------
Regard to the Transaction.
--------------------------
(a) The information set forth in "SPECIAL
FACTORS--Expense-Sharing Arrangements," "SPECIAL FACTORS--EB's Reasons for
Recommending the Merger" and "SPECIAL FACTORS--Parkway's Reasons for Effecting
the Merger" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
- 11 -
<PAGE> 12
(b) The information set forth in "SPECIAL FACTORS--EB's
Reasons for Recommending the Merger," "SPECIAL FACTORS--Parkway's Position on
Fairness to EB Shareholders" and "SPECIAL FACTORS--Parkway's Reasons for
Effecting the Merger" of the Joint Proxy Statement/Prospectus is incorporated
herein by reference. The former Board of Directors of Congress Street and the
Board of Directors of Parkway have not made any recommendation as to whether EB
shareholders should approve or disapprove the transaction.
Item 13. Other Provisions of the Transaction.
------------------------------------
(a) The information set forth in "JOINT PROXY
STATEMENT/PROSPECTUS SUMMARY--Dissenters' Rights," "SPECIAL FACTORS--Special
Considerations," "SPECIAL FACTORS--Appraisal Rights of Dissenting
Shareholders of EB" and "SPECIAL FACTORS--No Appraisal Rights for Parkway
Shareholders" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(b) Not applicable.
(c) The information set forth in "SPECIAL
FACTORS--Restrictions on Resales of Securities" of the Joint Proxy
Statement/Prospectus is incorporated herein by reference.
Item 14. Financial Information.
----------------------
(a) The information set forth in EB's 1993 Annual Report
on Form 10-KSB, as amended, and Quarterly Report on Form 10-QSB, as amended,
for the quarter ended September 30, 1994, which are incorporated by reference
in the Joint Proxy Statement/Prospectus under "INCORPORATION OF CERTAIN
DOCUMENTS BY REFERENCE" and will accompany that document in the mailing to
shareholders, are incorporated herein by reference and the information in
"INFORMATION CONCERNING EB" of the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
(b) The information set forth in "JOINT PROXY
STATEMENT/PROSPECTUS SUMMARY--Unaudited Pro Forma Consolidated Selected
Financial Data" and "JOINT PROXY STATEMENT/PROSPECTUS SUMMARY--Selected
Comparative Per Share Data" is incorporated herein by reference.
Item 15. Persons and Assets Employed, Retained or Utilized.
--------------------------------------------------
(a) The information set forth in "VOTING AND PROXY
INFORMATION" of the Joint Proxy Statement/Prospectus is incorporated herein by
reference.
(b) The information set forth in "OTHER MATTERS" of the
Joint Proxy Statement/Prospectus is incorporated herein by reference.
- 12 -
<PAGE> 13
Item 16. Additional Information.
-----------------------
All information in Amendment No. 2 to Form S-4 which is not
otherwise incorporated in this Statement Amendment No. 2 by reference is hereby
incorporated herein by this reference.
Item 17. Material to be Filed as Exhibits.
---------------------------------
(a) Not Applicable.
(b)(1) Opinion of Howard Frazier Barker Elliott, Inc.
attached as Appendix A to the Joint Proxy
Statement/Prospectus is incorporated herein by
reference.
(b)(2) Opinion of Rauscher Pierce Refsnes, Inc. attached as
Appendix G to the Joint Proxy Statement/Prospectus is
incorporated herein by reference.
(b)(3) The memorandum supporting the opinion of Howard
Frazier Barker Elliott, Inc. was filed as Exhibit
17(b)(3) to Amendment No. 1 to this Rule 13E-3
Transaction Statement and is incorporated herein by
this reference (the entire memorandum, including
tables--there were no separate exhibits--was so
filed).
(b)(4) The Logic Memo to support Rauscher Pierce Refsnes,
Inc.'s opinion was filed as Exhibit 17(b)(4) to
Amendment No. 1 to this Rule 13E-3 Transaction
Statement and is incorporated herein by this
reference.
(b)(5) The exhibits to the Logic Memo to support Rauscher
Pierce Refsnes, Inc.'s fairness opinion are filed
herewith as Exhibit 17(b)(5).
(c) Not Applicable.
(d) The Joint Proxy Statement/Prospectus is included in
Amendment No. 2 to Form S-4 and incorporated herein
by reference.
(e) The information set forth in "SPECIAL
FACTORS--Appraisal Rights of Dissenting Shareholders of EB" and "SPECIAL
FACTORS--No Appraisal Rights for Parkway Shareholders" of the Joint Proxy
Statement/Prospectus is incorporated herein by reference.
(f) Not Applicable.
- 13 -
<PAGE> 14
SIGNATURE
After due inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this Statement is true, complete
and correct.
DATED: March 8, 1995
THE PARKWAY COMPANY
By: /s/Steven G. Rogers
--------------------------
Name: Steven G. Rogers
Title: President
EB, INC.
By: /s/Leland R. Speed
---------------------------
Name: Leland R. Speed
Title: Chief Executive Officer
157364
- 14 -
<PAGE> 15
Exhibit 17(b)(5)
EXHIBIT 1
---------
PARKWAY'S ANALYSIS OF POSSIBLE EXCHANGE RATIOS FOR SHARES
OF EB AND CONGRESS STREET
<PAGE> 16
<TABLE>
EXCHANGE RATIO INFORMATION
AFTER FIRST CONTINENTAL MERGER
<CAPTION>
PARKWAY CONGRESS STREET EB
<S> <C> <C> <C>
Shares Outstanding 1,542,942 2,150,818 1,450,117
Book Value Per Share $22.00 $4.41 $19.98
(3-31-94) (2-28-94) (3-31-94)
Market Value Per Share $12.00 $2.50 $11.50
(5-11-94) To $12.75 To $3.25 To $13.50
Avg. Market Value Per Share $12.51 $3.63 $15.66
(8/1 - 8/22/94)
</TABLE>
<PAGE> 17
CONGRESS STREET PROPERTIES, INC.
PRICE AND SHARE VOLUME
On October 15, 1992, the shares of Congress Street Properties,
Inc. were delisted from the NASDAQ National Market System and on
April 7, 1993, they were delisted from the NASDAQ Small-Cap Market.
Currently, the National Daily Quotation Service Pink Sheets ("Pink
Sheets") published by The National Quotation Bureau, Inc. are the
only source of published quotations for shares, and such quotations
appear on a sporadic basis, are subject to wide fluctuation and are
considered by the Company to be unreliable.
<PAGE> 18
<TABLE>
THE PARKWAY COMPANY
PRO FORMA CONSOLIDATED BALANCE SHEET
(Unaudited)
The following unaudited pro forma consolidated balance sheet sets forth the effect of the Company's proposed mergers with Congress
Street Properties, Inc. and EB, Inc. as if the proposed mergers had been consummated on June 30, 1994. The pro forma balance sheet
has been prepared by management of the Company based upon the historical financial statements of the Company, Congress Street
Properties, Inc. and EB, Inc. These pro forma statements may not be indicative of the results that actually would have occurred if
the proposed mergers had been in effect on the dates indicated or which may be obtained in the future. The pro forma statements
should be read in conjunction with the other financial statements and notes of the Company, Congress Street Properties, Inc. and EB,
Inc. Incorporated by reference or included herein.
<CAPTION>
Parkway Congress St. Congress St. EB, Inc.
6/30/94 5/31/94 Pro Forma 6/30/94
(Historical) (Historical) Adjustments (Historical)
----------- ----------- ----------- -----------
(In thousands, except per share data)
<S> <C> <C> <C> <C>
ASSETS
Investments
Real estate (net of accumulated depreciation)
Real estate partnerships: $ 38,030 $ 2,897
Wink-Parkway Partnership
One Jackson Place 291 (1,445) 1,965 (1)
Investment in marketable securities:
EB, Inc. 12,376 233 (58) (1)
Congress Street Properties, Inc. 378 (378) (1)
The Parkway Company 11,320 (11,320) (1)(3)
Other real estate & financial service companies 1,935 11,192
Mortgage loans 3,062 15,319
Investment in Golf Properties, Inc. 731
--------- --------- --------- ---------
56,803 10,108 (9,791) 29,408
Notes receivable from affiliates 413 (413) (1)
Interest and rents receivable and other assets 2,106 124 552
Cash and cash items 217 105 (23) (2) 2,784
Restricted cash 195
--------- --------- --------- ---------
$ 59,734 $ 10,337 $ (10,227) $ 32,744
========= ========= ========= =========
LIABILITIES
Notes payable to banks $ 3,631 $ 45
Notes payable to affiliate 436 (436) (2)(1)
Mortgage notes payable without recourse 22,902
Accounts payable & other liabilities 1,332 419 (121) (1) 1,677
Deferred gain 141
--------- --------- --------- ---------
28,006 900 (557) 1,677
--------- --------- --------- ---------
STOCKHOLDERS' EQUITY
Common Stock 1,543 236 (255) (1)(3) 2,900
Additional paid in capital 27,134 13,515 (13,729) (1)(3) 30,162
Retained earnings 2,399 (2,797) 2,797 (1) (3,257)
Treasury stock (1,517) 1,517 (1)
Unrealized gains 652 1,262
--------- --------- --------- ---------
31,728 9,437 (9,670) 31,067
--------- --------- --------- ---------
$ 59,734 $ 10,337 $ (10,227) $ 32,744
========= ========= ========= =========
Book value per share $ 20.56 $ 4.39 $ 21.43
Shares outstanding (in thousands) 1,543 2,151 (19) 1,450
<CAPTION>
EB, Inc. Other
Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Consolidated
----------- ----------- ------------
(In thousands, except per share data)
<S> <C> <C> <C>
ASSETS
Investments
Real estate (net of accumulated depreciation) $ (1,160) (6) $ 520 (4) $ 40,287
Real estate partnerships:
Wink-Parkway Partnership 291
One Jackson Place (520) (4) 0
Investment in marketable securities:
EB, Inc. (11,900) (651) (5) 0
Congress Street Properties, Inc. 0
The Parkway Company 0
Other real estate & financial service companies 13,127
Mortgage loans (6,090) (6) 12,291
Investment in Golf Properties, Inc. 731
--------- --------- ---------
(19,150) (651) 66,727
Notes receivable from affiliates 0
Interest and rents receivable and other assets 2,782
Cash and cash items (3,083) (6) 0
Restricted cash 195
--------- --------- ---------
$ (22,233) $ (651) $ 69,704
========= ========= =========
LIABILITIES
Notes payable to banks $ 2,444 (6) $ 6,120
Notes payable to affiliate 0
Mortgage notes payable without recourse 22,902
Accounts payable & other liabilities 3,307
Deferred gain 141
--------- --------- ---------
2,444 32,470
--------- --------- ---------
STOCKHOLDERS' EQUITY
Common Stock (2,378) (6) 2,046
Additional paid in capital (24,294) (6) 32,788
Retained earnings 3,257 (6) 2,399
Treasury stock 0
Unrealized gains (1,262) (6) (651) (5) 1
--------- --------- ---------
(24,677) (651) 37,234
--------- --------- ---------
$ (22,233) $ (651) $ 69,704
========= ========= =========
Book value per share $ 18.20
Shares outstanding (in thousands) 522 2,046
</TABLE>
<PAGE> 19
THE PARKWAY COMPANY
NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
(1) Parkway issues 559,770 shares of stock to all Congress Street shareholders
(except for Parkway) in exchange for all Congress Street shares
outstanding. The Congress Street shares owned by Parkway are retired.
<TABLE>
<S> <C>
Congress Street shares outstanding 2,150,818
Less shares owned by Parkway (220,577)
----------
1,930,241
Exchange ratio 0.29
----------
New Parkway shares issued 559,770
Market value per share $12.25
----------
$6,857,183
Basis of stock held by Parkway 377,997
Basis of note receivable held by Parkway 413,000
----------
Parkway's cost of Congress Street's net assets $7,648,180
==========
</TABLE>
The difference in Congress Street's book value and the value from the
merger is allocated to Congress Street's assets:
Merger value $7,648,000
Book value 9,437,000
-----------
Difference $(1,790,000)
===========
<TABLE>
<S> <C>
Allocated writedown as follows:
Investment in One Jackson Place 1,965,000
Investment in EB, Inc. stock
(writedown 11,673 shares to $15) (58,000)
Investment in Parkway stock
(write down 578,740 shares to $12.25) (4,230,000)
Deferred income taxes 121,000
Note payable to Parkway 413,000
---------
(1,790,000)
=========
</TABLE>
(2) Reflect $23,000 payment made by Congress Street to Parkway subsequent to
Congress Street's May 31, 1994 quarter end.
(3) Retire the Parkway stock purchased in Congress Street merger.
(4) Reclassify investment in One Jackson Place from partnerships to real
estate.
(5) Eliminate the unrealized gain related to the investment in EB, Inc.
<PAGE> 20
(6) Parkway issues 521,679 shares of stock and pays $8 cash to all EB, Inc.
shareholders (except for Parkway) in exchange for all EB, Inc. shares
outstanding. The EB, Inc. shares owned by Parkway are retired.
<TABLE>
<S> <C>
EB, Inc. shares outstanding 1,450,117
Less shares owned by Parkway (759,245)
-----------
690,872
Exchange ratio $9.25 to $12.25
-----------
New Parkway shares issued 521,679
Market value per share $12.25
-----------
$6,390,568
Cash paid to EB shareholders (690,872 x $8) 5,526,976
Basis of stock held by Parkway 11,899,850
-----------
Parkway's cost of EB, Inc.'s net assets $23,817,394
===========
</TABLE>
The difference in EB, Inc.'s book value and the value from the merger is
allocated to real estate and mortgage loans pro-rata.
<TABLE>
<S> <C>
Merger value 23,817,000
Book value 31,067,000
-----------
Difference (7,250,000)
-----------
Allocate writedown as follows:
Real estate (16%) (1,160,000)
Mortgage Loans (84%) (6,090,000)
-----------
(7,250,000)
===========
</TABLE>
<PAGE> 21
EXHIBIT 2
---------
MARKET PRICE AND TRADING VOLUME DATA FOR
(A) PARKWAY AND EB
(B) CONGRESS STREET ("PINK SHEET" DATA)
<PAGE> 22
EXHIBIT 2
THE PARKWAY CORPORATION
-----------------------
MARKET PRICE/TRADING VOLUME ANALYSIS
------------------------------------
This graph shows the Market Price and Trading Volume for the period
between August 23, 1993 and August 22, 1994. The datapoints are listed on pages
4 through 9 of this document.
<PAGE> 23
EXHIBIT 2
EB, INC.
--------
MARKET PRICE/TRADING VOLUME ANALYSIS
------------------------------------
This graph shows the Market Price and Trading Volume for the period
between August 23, 1993 and August 22, 1994. The datapoints are listed on
pages 4 through 9 of this document.
<PAGE> 24
<TABLE>
THE PARKWAY COMPANY AND EB, INC.,
Average Monthly Market Price and Trading Volume Data October, 1993 - August, 1994
<CAPTION>
AVERAGE AVERAGE
MARKET AVERAGE MARKET AVERAGE
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
MONTH/YEAR SHARE ($) TRADED SHARE ($) TRADED
- ------------- -------------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
October, 1993 13.60 762 11.64 733
November, 1993 12.70 1,929 11.86 162
December, 1993 12.88 509 11.77 227
January, 1994 12.14 1,962 11.88 424
February, 1994 12.25 242 11.93 100
March, 1994 12.33 374 11.55 704
April, 1994 12.18 237 11.68 16
May, 1994 12.17 371 12.12 219
June, 1994 12.01 1,950 12.34 677
July, 1994 13.42 2,180 15.39 1,110
August, 1994 12.51 606 15.66 356
<FN>
(1) AUGUST DATA IS CALCULATED FROM AUGUST 1 - AUGUST 22, 1994.
</TABLE>
<PAGE> 25
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
Market Price and Trading Volume Data 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
October, 1993
10/1/93 11.75 0 11.75 0
10/4/93 14.00 6,000 10.50 100
10/5/93 14.25 1,200 12.00 0
10/6/93 13.50 0 12.00 0
10/7/93 12.75 100 11.00 600
10/8/93 13.50 0 12.00 0
10/11/93 13.50 0 11.75 500
10/12/93 13.50 0 12.00 0
10/13/93 13.50 0 12.00 0
10/14/93 13.50 0 12.00 0
10/15/93 12.75 100 11.00 500
10/18/93 13.38 0 11.50 500
10/19/93 13.38 0 12.00 0
10/20/93 14.00 3,100 12.00 0
10/21/93 14.00 500 12.00 0
10/22/93 14.75 1,200 12.00 0
10/25/93 13.50 2,100 12.00 0
10/26/93 14.00 0 11.00 400
10/27/93 13.50 500 11.00 5,100
10/28/93 14.00 0 12.00 6,700
10/29/93 14.50 1,200 11.00 1,000
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 13.60 762 11.64 733
NOVEMBER, 1993
11/1/93 14.00 0 12.00 0
11/2/93 12.25 2,600 12.00 1,500
11/3/93 13.00 0 12.00 0
11/4/93 13.00 0 11.00 200
11/5/93 12.50 8,000 12.00 0
11/8/93 12.88 0 12.00 0
11/9/93 13.50 200 12.00 0
11/10/93 12.00 200 12.00 0
11/11/93 12.75 0 12.00 0
11/12/93 12.00 3,400 12.00 0
11/15/93 11.50 500 12.00 0
11/16/93 11.00 200 12.00 0
11/17/93 11.75 0 12.00 0
11/18/93 11.75 0 11.00 500
11/19/93 12.50 6,800 12.00 0
11/22/93 12.25 2,800 12.00 0
11/23/93 12.25 100 11.00 1,200
11/24/93 14.00 100 12.00 0
11/26/93 13.75 15,000 12.00 0
11/29/93 14.00 500 12.00 0
11/30/93 14.00 100 12.00 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.70 1,929 11.86 162
</TABLE>
4
<PAGE> 26
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
Market Price and Trading Volume Data 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
DECEMBER, 1993
12/1/93 13.75 2,000 12.00 0
12/2/93 13.00 1,200 11.00 300
12/3/93 14.00 200 12.00 0
12/6/93 13.00 1,000 12.00 0
12/7/93 13.50 0 12.00 0
12/8/93 13.50 0 12.00 0
12/9/93 13.00 100 12.00 0
12/10/93 14.00 600 12.00 0
12/13/93 13.13 0 12.00 0
12/14/93 13.13 0 12.00 0
12/15/93 13.13 0 12.00 0
12/16/93 13.13 0 12.00 0
12/17/93 12.25 100 11.00 200
12/20/93 12.25 300 12.00 0
12/21/93 11.75 2,900 12.00 0
12/22/93 11.75 900 12.00 0
12/23/93 12.00 100 11.00 1,500
12/27/93 13.00 600 11.00 2,000
12/28/93 12.00 1,100 12.00 0
12/29/93 12.50 100 11.00 1,000
12/30/93 12.75 0 12.00 0
12/31/93 12.75 0 12.00 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.88 509 11.77 227
JANUARY, 1994
1/3/94 13.00 7,900 11.00 200
1/4/94 13.00 200 12.00 0
1/5/94 12.63 0 12.00 0
1/6/94 12.63 0 12.00 0
1/7/94 12.63 0 11.75 3,500
1/10/94 12.50 0 12.00 0
1/11/94 11.50 200 12.00 0
1/12/94 12.13 1,000 12.00 0
1/13/94 11.50 200 11.00 800
1/14/94 11.50 200 12.38 500
1/17/94 12.13 0 12.00 0
1/18/94 12.13 0 12.00 0
1/19/94 12.25 800 12.00 0
1/20/94 12.75 700 12.00 0
1/21/94 12.50 1,800 12.00 0
1/24/94 11.50 100 12.00 0
1/25/94 11.50 2,000 11.00 900
1/26/94 11.63 12,000 12.25 2,100
1/27/94 11.63 8,300 12.00 0
1/28/94 12.38 2,100 13.00 800
1/31/94 11.50 3,700 11.00 100
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.14 1,962 11.88 424
</TABLE>
5
<PAGE> 27
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
MARKET PRICE AND TRADING VOLUME DATA 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
FEBRUARY, 1994
2/1/94 13.00 3,800 12.00 0
2/2/94 12.25 0 12.00 0
2/3/94 12.25 0 12.00 0
2/4/94 12.25 0 11.00 100
2/7/94 12.25 0 11.75 1,800
2/8/94 13.00 100 12.00 0
2/9/94 12.25 0 12.00 0
2/10/94 12.25 0 12.00 0
2/11/94 12.25 0 12.00 0
2/14/94 12.25 0 12.00 0
2/15/94 11.50 100 12.00 0
2/16/94 11.50 100 12.00 0
2/17/94 12.25 0 12.00 0
2/18/94 12.25 0 12.00 0
2/22/94 12.25 0 12.00 0
2/23/94 12.50 400 12.00 0
2/24/94 12.38 0 12.00 0
2/25/94 11.75 100 12.00 0
2/28/94 12.38 0 12.00 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.25 242 11.93 100
MARCH, 1994
3/1/94 11.75 200 11.75 700
3/2/94 11.50 200 12.00 0
3/3/94 12.00 100 12.00 5,800
3/4/94 12.50 0 12.00 0
3/7/94 12.00 200 12.00 0
3/8/94 12.75 0 11.00 200
3/9/94 12.75 0 11.00 100
3/10/94 13.50 200 11.75 0
3/11/94 13.50 100 11.75 0
3/14/94 12.00 400 11.13 100
3/15/94 12.00 100 11.75 0
3/16/94 12.00 500 11.25 1,200
3/17/94 12.75 0 11.75 1,200
3/18/94 12.00 100 11.75 0
3/21/94 12.00 300 11.00 200
3/22/94 12.00 400 11.75 0
3/23/94 12.50 0 11.00 100
3/24/94 12.50 0 11.75 0
3/25/94 12.50 0 11.50 100
3/28/94 12.50 0 11.75 0
3/29/94 12.50 0 11.00 3,000
3/30/94 12.00 100 11.38 3,500
3/31/94 12.00 5,700 11.75 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.33 374 11.55 704
</TABLE>
6
<PAGE> 28
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
MARKET PRICE AND TRADING VOLUME DATA 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
APRIL, 1994
4/4/94 12.25 0 11.75 0
4/5/94 11.75 100 11.75 0
4/6/94 11.75 1,800 11.75 0
4/7/94 12.38 0 11.75 0
4/8/94 12.38 0 11.75 0
4/11/94 12.00 100 11.75 0
4/12/94 12.38 0 11.75 0
4/13/94 12.38 0 11.75 0
4/14/94 12.38 0 11.00 100
4/15/94 11.75 200 11.75 0
4/18/94 12.25 1,700 11.75 0
4/19/94 12.50 400 11.50 100
4/20/94 12.38 0 11.75 0
4/21/94 11.75 100 11.75 0
4/22/94 12.38 0 11.75 0
4/25/94 11.75 100 11.75 0
4/26/94 12.38 0 11.00 100
4/28/94 12.38 0 11.75 0
4/29/94 12.38 0 12.25 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.18 237 11.68 16
MAY, 1994
5/2/94 12.38 0 12.25 0
5/3/94 12.38 0 12.25 0
5/4/94 12.50 0 12.25 0
5/5/94 12.50 0 11.25 1,000
5/6/94 12.00 700 12.25 0
5/9/94 12.38 0 11.00 1,500
5/10/94 12.38 0 11.50 1,100
5/11/94 12.75 100 11.50 200
5/12/94 12.00 300 11.50 100
5/13/94 12.25 400 12.50 0
5/16/94 12.38 0 12.50 0
5/17/94 12.38 0 12.50 0
5/18/94 12.25 0 12.50 0
5/19/94 12.25 0 12.50 0
5/20/94 11.75 500 12.50 0
5/23/94 11.75 700 12.50 0
5/24/94 12.25 0 11.50 300
5/25/94 11.75 700 11.50 400
5/26/94 11.75 700 12.75 0
5/27/94 11.75 100 12.75 0
5/31/94 11.75 3,600 12.75 0
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.17 371 12.12 219
</TABLE>
7
<PAGE> 29
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
MARKET PRICE AND TRADING VOLUME DATA 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
JUNE, 1994
6/1/94 11.75 7,000 12.75 0
6/2/94 12.50 1,000 11.50 200
6/3/94 11.50 100 12.75 0
6/6/94 12.25 800 12.75 0
6/7/94 12.00 900 11.50 3,000
6/8/94 12.00 3,500 12.00 3,000
6/9/94 11.00 300 11.50 2,000
6/10/94 11.00 300 11.88 2,000
6/13/94 11.50 0 11.75 3,000
6/14/94 11.50 1,100 12.75 0
6/15/94 11.00 100 12.75 0
6/16/94 11.50 0 12.75 0
6/17/94 12.25 6,600 12.75 0
6/20/94 12.00 5,700 12.75 0
6/21/94 12.25 1,300 11.50 100
6/22/94 13.25 12,600 12.75 0
6/23/94 12.75 0 12.75 0
6/24/94 12.25 700 12.00 900
6/27/94 12.75 0 12.00 100
6/28/94 12.75 0 13.13 0
6/29/94 12.25 500 13.13 0
6/30/94 12.25 400 12.00 600
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.01 1,950 12.34 677
JULY, 1994
7/1/94 14.00 8,400 17.00 7,600
7/5/94 13.75 6,300 15.88 0
7/6/94 13.56 0 15.75 0
7/7/94 13.56 0 15.88 0
7/8/94 13.75 7,000 15.88 0
7/11/94 13.25 400 15.00 5,500
7/12/94 13.56 0 15.88 0
7/13/94 13.88 500 15.00 4,000
7/14/94 13.50 0 15.38 500
7/15/94 13.75 1,000 15.00 3,000
7/18/94 13.75 300 15.63 0
7/19/94 13.50 0 15.63 0
7/20/94 13.75 1,100 15.63 0
7/21/94 13.50 0 14.25 100
7/22/94 13.25 1,000 15.63 0
7/25/94 13.50 0 15.63 0
7/26/94 12.50 6,200 14.25 100
7/27/94 12.88 0 15.38 0
7/28/94 12.50 2,500 14.25 300
7/29/94 12.63 8,900 15.00 1,100
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 13.42 2,180 15.39 1,110
</TABLE>
8
<PAGE> 30
<TABLE>
THE PARKWAY COMPANY AND EB, INC.
MARKET PRICE AND TRADING VOLUME DATA 10/1/93 - 8/22/94
<CAPTION>
MARKET MARKET
PRICE PER NUMBER OF PRICE PER NUMBER OF
PARKWAY PARKWAY SHARES EB, INC. EB, INC. SHARES
DATE: SHARE ($) TRADED SHARE ($) TRADED
- ------------- ----------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
AUGUST, 1994
8/1/94 12.00 800 15.75 0
8/2/94 12.50 0 17.00 1,000
8/3/94 12.50 2,000 15.56 400
8/4/94 12.50 0 15.25 2,000
8/5/94 13.00 500 17.00 700
8/8/94 12.50 0 15.75 0
8/9/94 12.63 0 15.75 0
8/10/94 12.63 0 15.75 0
8/11/94 12.63 0 15.75 0
8/12/94 13.00 300 15.75 0
8/15/94 12.25 300 15.75 0
8/16/94 12.25 800 15.75 0
8/17/94 12.25 1,700 15.75 0
8/18/94 12.63 0 15.00 1,200
8/19/94 12.63 0 14.50 100
8/22/94 12.25 3,300 14.50 300
----------- --------------- --------------- -----------------
MONTHLY AVERAGE: 12.51 606 15.66 356
</TABLE>
9
<PAGE> 31
NATIONAL QUOTATION BUREAU, INC.
==================================================
[LOGO]AN INFOBASE HOLDINGS COMPANY
AUGUST 23, 1994
A REPORT
QUOTATIONS- FROM THE PINK SHEETS(R)
ISSUE: CONGRESS STREET PROPERTIES, INC. (DELA.) COMMON
- ---------------------------------------------------------
1993 BID PRICES ASK PRICES
- ---- HIGH LOW HIGH LOW
---- --- ---- ---
JUNE 1
THRU (NOT AVAILABLE)
SEPT. 13
QUOTATIONS- FROM THE PINK SHEETS AND THE OTC BULLETIN BOARD
SEPT. 14
THRU 1 1 2 1/2 2 1/2
SEPT. 30
OCT. 3
THRU 1 1/4 1 3 2 1/2
OCT. 29
NOV. 1
THRU 1 1/8 3/4 3 1 1/2
NOV. 30
DEC. 1
THRU 2 7/8 3 1 1/2
DEC. 31
1994
- ----
JAN. 3
THRU 2 2 3 2 3/4
JAN. 31
150 COMMERCE ROAD * CEDAR GROVE, NJ 07009-1208
(201) 239- 6100 FAX (201) 239-0080
<PAGE> 32
2
BID PRICES ASK PRICES
1994 HIGH LOW HIGH LOW
- ---- ---- --- ---- ---
FEB. 1
THRU 2 2 3 2 3/4
FEB. 28
MAR. 1
THRU 2 1/8 2 3 2 1/2
MAR. 31
APR. 4
THRU 2 1/2 2 3 1/2 3
APR. 29
MAY 2
THRU 2 1/2 2 1/2 3 1/2 3 1/4
MAY 31
JUNE 1
THRU 2 1/2 2 1/2 3 1/2 3 1/4
JUNE 30
JULY 1
THRU 3 1/4 2 1/2 4 1/4 3 1/4
JULY 29
AUG. 1
THRU 3 1/4 3 4 1/4 4
AUG. 22
<PAGE> 33
3
NOTE: THE INFORMATION IS COMPILED WITH CARE FROM SOURCES
BELIEVED TO BE RELIABLE BUT WE CANNOT GUARANTEE THE ACCURACY
NOR WARRANTEE ITS USE FOR ANY PURPOSE.
NOTE: THE ABOVE QUOTATIONS REPRESENT PRICES BETWEEN DEALERS
AND DO NOT INCLUDE RETAIL MARKUP, MARKDOWN OR COMMISSION. THEY
DO NOT REPRESENT ACTUAL TRANSACTIONS AND HAVE NOT BEEN ADJUSTED
FOR STOCK DIVIDENDS OR SPLITS.
NATIONAL QUOTATION BUREAU, INC.
/S/ EVELYN WALSH
EVELYN WALSH
VICE-PRESIDENT
EW/cap
<PAGE> 34
EXHIBIT 3
---------
NET ASSET VALUE ANALYSES FOR PARKWAY,
EB AND CONGRESS STREET
(ASSETS ADJUSTED TO FAIR MARKET VALUE)
<PAGE> 35
<TABLE>
EXHIBIT 3
---------
THE PARKWAY COMPANY & PARKWAY TEXAS CORPORATION
SUMMARY BALANCE SHEET VALUES ($000's)
6/30/94
<CAPTION>
NET BOOK NET REALIZABLE
VALUE VALUE
ASSETS 6/30/94 6/30/94
--------- --------------
<S> <C> <C>
LAND AND BUILDINGS:
One Jackson Place 19,942 23,340
Cascade III 1,473 1,766
Corporate Square West 2,375 2,770
Corporate Square East 611 729
American Inn North 744 1,200
Wink Building 291 291
Highland Falls 731 1,502
Gilbert Road Land 187 187
Fridkin-Kaufman Land 106 105
Kelly Land 343 351
Sugar Creek Center 3,337 4,125
Big Run Land 62 117
East Albany Ind. Park 41 112
Bullard Road Land 3,799 5,227
Oxon Hills Condos 68 56
Mesquite 3 72
Plantation Village (PT) (1) 1,162 1,734
Silver Hollow/Summer Hill (PT) 435 853
Westchase Office Building (PT) 444 873
Southfork (PTT) 152 328
Greenbriar Colony (PT) 142 269
Sugarland Triangle (PT) (2) 3,278 4,730
Stonehenge (PT) 413 707
Green Busch Road (PT) 494 896
Cooks Lane (PT) 85 176
All other assets (PT & PKWY) 18 61
------ ------
SUB-TOTAL REAL PROPERTY 40,736 52,577
INVESTMENTS:
EastGroup Properties 1,612 2,203
EB, Inc. 11,547 10,466
Rockwood National 0 47
Congress Street 393 772
Prudential Realty Trust Capital 8 9
Prudential Realty Trust Income 304 338
------ ------
SUB-TOTAL EQUITIES 13,864 13,835
<FN>
(1) Denotes Parkway Texas Corporation F/K/A First Continental REIT.
(2) Net book value, NRV and secured debt were increased by $1.5 million to
reflect recent purchase from RTC of remaining Sugarland tracts for
$1.5 million.
</TABLE>
1
<PAGE> 36
<TABLE>
<CAPTION>
NET BOOK NET REALIZABLE
VALUE VALUE
ASSETS 6/30/94 6/30/94
---------- --------------
<S> <C> <C>
MORTGAGES/NOTES:
Patel Commerce 85 85
Patel Macon 189 189
EastGroup Mortgages 864 864
America Inn West 524 524
Mannsfield Assoc. 83 83
Freedman 420 420
Lake Forest, Inc. 176 176
Congress Street Note 460 460
Maplebrook Note (PT) 279 562
Westbelt Note (PT) 138 271
Residential/Conventional (PT) 298 582
Residential/FHA/VA (PT) 207 401
19 Condominiums TH/SFR (PT) 360 716
Other Notes Receivable 51 51
Other Notes Receivable (PT) 201 372
------- -------
SUB-TOTAL MORTGAGES/NOTES 4,335 5,756
GRAND TOTAL $58,935 72,168
======= =======
ADD: CASH $412 412
DEDUCT: DEBT - SECURED (2) $25,041 $25,041
DEBT: CORPORATE $2,991 2,991
OTHER: REC./PAY. $435 (611)
NET EQUITY VALUE $31,750 43,937
SHARES OUTSTANDING (000'S) 1,543 1,543
======= =======
NET EQUITY PER SHARE $20.58 $28.47
======= =======
STOCK MARKET DATA:
Symbol: "PKWY"
8/22/94 Price per Share: $12.25
Current shares outstanding: 1,543
Total Market Value (000's): $18,902
<FN>
(1) Denotes Parkway Texas Corporation F/K/A First Continental REIT.
(2) Net book value, NRV and secured debt were increased by $1.5 million to
reflect recent purchase from RTC of remaining Sugarland tracts for $1.5
million.
</TABLE>
2
<PAGE> 37
<TABLE>
EB, INC.
SUMMARY BALANCE SHEET VALUES ($000'S)
MARCH 31, 1994
<CAPTION>
BOOK EST. CURRENT
VALUE MARKET VALUE
3/31/94 3/31/94
--------- ------------
<S> <C> <C>
ASSETS
Cash and cash equivalents $1,865 $1,865
Grenada Sunburst stock 9,217 14,922
(book value 438,889 shares x $21.00 per share)
(market value 438,889 shares x $34.00
per share on 9/9/94)
REAL ESTATE LOANS:
McComb Motel 1,699 1,672
Vicksburg Scottish Inns 114 114
University Inn 887 1,216
Lakeside Villa Apartments 672 845
Four Seasons Apartments 997 1,060
Colonial Self-Storage 927 927
Colonial Self-Storage 825 825
Oak Creek Apartments 1,790 1,492
Southern Oaks Office Building 1,028 1,028
Northfield Drive 245 245
Virginia Beach Office Complex 2,331 2,752
Waggoner 110 110
Davis 130 130
Barry 102 102
Redbud Construction 122 122
Other real estate loans less than $100,000 (37) 75
Other real estate loans allowance
Less unearned income
------ ------
Net real estate loans 11,942 12,715
------ ------
BANK LOANS
Field 344 344
Auto body shop
Flight Line
Commercial airplane - 29 seats 285 285
Furr Transmissions 296 296
</TABLE>
4
<PAGE> 38
<TABLE>
<CAPTION>
EB, INC., CONT. BOOK EST. CURRENT
VALUE MARKET VALUE
3/31/94 3/31/94
-------- ------------
<S> <C> <C>
Ghetti
Apartment complex 409 409
Duplex
Lot
Millette
Office building 204 204
Office building 443 443
2nd Mortgage office building 300 300
Multigraphic 181 181
Wilkinson 0 0
Other bank loans under $100,000 1,435 1,435
Other bank loans - allowance
------- -------
NET BANK LOANS 3,897 3,897
------- -------
TOTAL NET LOANS 15,839 16,612
------- -------
REAL ESTATE OWNED:
Mill Shopping Center 1,198 1,239
Aloma Arms Apartments 1,071 1,213
Woodlake II 200 200
Kelso 177 177
Other REO under $100,000 337 337
------- -------
TOTAL REAL ESTATE OWNED 2,983 3,166
------- -------
Other assets 554 554
------- -------
TOTAL ASSETS $30,458 $37,119
======= =======
LIABILITIES
Due to shareholders from 7-88 reverse split $1,139 $1,139
OTHER LIABILITIES 342 342
------- -------
TOTAL LIABILITIES $1,481 $1,481
------- -------
NET WORTH - COMMON $28,977 $35,638
======= =======
COMMON SHARES OUTSTANDING (000'S) 1,450 1,450
VALUE PER SHARE (1) $19.98 $24.58
======= =======
VALUE PER SHARE INCLUSIVE
OF CAPITAL GAINS TAXES AT 35% $22.97
=======
STOCK MARKET DATA:
Symbol: "EBEB"
8/22/94 Price per Share: $14.50
Shares Outstanding (000's): 1,451
Total Market Value (000's): $21,040
<FN>
(1) While $24.58 is considered "Net realizable value per share," actual value per share
would be significantly lower due to lower actual asset values the company would
realize if forced to liquidate on short notice and not permit some properties to
mature to full value. Furthermore, the values shown are exclusive of capital gains
taxes which would further reduce realizable values. If capital gains taxes are
included at a 34% rate, adjusted book value per share drops to $23.01.
</TABLE>
5
<PAGE> 39
<TABLE>
CONGRESS STREET PROPERTIES, INC.
SUMMARY BALANCE SHEET VALUES ($000'S)
FEBRUARY 28, 1994
<CAPTION>
BOOK EST. MARKET
VALUE VALUE
2/28/94 2/28/94
-------- -----------
<S> <C> <C>
ASSETS
Cash $54 $54
Investment in One Place Partners (1,330) (1,330)
Investment in companies
Parkway (9/9/94 price $12.25) 567,067 shs. 11,300 6,805
Rockwood 930,132 shs. 0 19
EB, Inc. 11,673 shs. 232 137
------- ------
11,532 6,961
Other assets 186 186
------- ------
TOTAL ASSETS $10,442 $5,871
======= ======
LIABILITIES
Notes payable - Parkway $460 $460
Notes payable - TMNB 54 54
Deferred income taxes 122 122
Other liabilities 329 329
------- ------
TOTAL LIABILITIES $965 $965
------- ------
NET WORTH - COMMON $9,477 $4,906
======= ======
COMMON SHARES OUTSTANDING (000'S) 2,151 2,151
======= ======
VALUE PER SHARE $4.41 $2.28
======= ======
</TABLE>
STOCK MARKET DATA:
Symbol: CSTP
August, 1994 Average Price per Share: $3.63
(through 8/22/94)
Shares Outstanding (000's): 2,151
Total Market Value (000's): $7,807
6
<PAGE> 40
EXHIBIT 4
---------
PARKWAY - COMPARATIVE FINANCIAL INFORMATION FOR
THE FISCAL YEARS ENDED 06/30/93 AND 6/30/94
<PAGE> 41
<TABLE>
THE PARKWAY COMPANY
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<CAPTION>
As of June 30,
----------------
1993 1994
------- -------
<S> <C> <C>
ASSETS
Investments:
Real estate, net $33,488 $38,030
Real estate companies 8,691 14,689
Mortgage loans 916 3,482
Real estate partnerships and corporate joint venture 1,051 1,022
------- -------
44,146 57,223
Notes receivable from affiliates 1,298 413
Interest and rents receivable and other assets 1,654 1,687
Cash and cash equivalents 237 217
Reverse repurchase agreements 8,310 0
Restricted cash 205 195
------- -------
$55,850 $59,735
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Notes payable $940 $3,631
Notes payable to affiliate 2,274 0
Mortgage notes payable 23,769 22,902
Accounts payable and other liabilities 1,273 1,332
Deferred gain 411 141
------- -------
28,667 28,006
------- -------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $1.00 par value 2,333 1,543
Additional paid-in capital 39,271 27,134
Retained earnings 1,899 2,400
------- -------
43,503 31,077
Less: Treasury shares at cost - 1,073,070 shares (16,320) 0
Unrealized gain on securities 0 652
------- -------
27,183 31,729
------- -------
$55,850 $59,735
======= =======
</TABLE>
1
<PAGE> 42
<TABLE>
THE PARKWAY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
YEARS ENDED JUNE 30,
----------------------------
1992 1993 1994
---- ---- ----
<S> <C> <C> <C>
REVENUES
Income from real estate properties $5,897 $6,019 $6,429
Interest on mortgage loans 581 412 265
Gain on real estate and mortgage loans, net 590 2,474 (113)
Equity in earnings (losses):
Real estate companies (1,233) (824) 704
Real estate partnerships and corporate joint venture 94 319 239
Gain on securities (2,437) 22 579
Interest on short-term investments 264 240 235
Dividends and other income 75 57 618
-------- -------- --------
3,831 8,719 8,956
-------- -------- --------
EXPENSES
Real estate owned:
Operating expenses 3,535 3,686 3,760
Interest expense 2,547 2,487 2,392
Depreciation and amortization 946 981 1,022
Minority interest (610) (598) (542)
Other expenses 975 938 1,071
-------- -------- --------
7,393 7,494 7,703
-------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES AND DISCONTINUED
OPERATIONS (3,562) 1,225 1,253
INCOME TAX PROVISION 11 3 1
-------- -------- --------
INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS (3,573) 1,222 1,252
-------- -------- --------
EQUITY IN EARNINGS FROM DISCONTINUED OPERATIONS:
Income from discontinued operations 710 460 51
Income on sale of discontinued operations 0 1,030 0
-------- -------- --------
710 1,490 51
-------- -------- --------
NET INCOME (LOSS) ($2,863) $2,712 $1,303
======== ======== ========
INCOME (LOSS) PER SHARE
From continuing operations ($2.76) $0.97 $0.96
From discontinued operations 0.55 1.18 0.04
-------- -------- --------
NET INCOME (LOSS) ($2.21) $2.15 $1.00
======== ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING 1,289 1,260 1,300
======== ======== ========
DIVIDENDS PER SHARE $0.80 $0.80 $0.60
======== ======== ========
</TABLE>
2
<PAGE> 43
EXHIBIT 5
---------
EB - COMPARATIVE FINANCIAL INFORMATION FOR
THE YEARS ENDED 12/31/92 AND 12/31/93; AND
FOR THE TWELVE MONTHS ENDED JUNE 30, 1994
<PAGE> 44
<TABLE>
EB, INC.
BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<CAPTION>
AS OF
AS OF DECEMBER 31, JUNE 30,
--------------------- ---------
1992 1993 1994
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $3,210 $442 $2,784
Investment in common stock 0 9,930 11,192
Mortgage-backed derivative securities 391 134 38
Loans, net 23,854 16,344 15,319
Real estate owned 7,727 3,337 2,897
Interest and other receivables and assets 59 517 514
--------- --------- ---------
$35,241 $30,704 $32,744
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued expenses $1,715 $1,428 $1,677
Net liabilities of discontinued operations 9,179 0 0
--------- --------- ---------
10,894 1,428 1,677
--------- --------- ---------
STOCKHOLDERS' EQUITY
Common stock, $2.00 par value 2,903 2,900 2,900
Paid-in capital 30,464 30,452 30,162
Unrealized loss on marketable equity securities 0 0 1,262
Deficit (9,020) (4,076) (3,257)
--------- --------- ---------
24,347 29,276 31,067
--------- --------- ---------
$35,241 $30,704 $32,744
========= ========= =========
</TABLE>
1
<PAGE> 45
<TABLE>
EB, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
TWELVE MONTHS
ENDED
YEARS ENDED DECEMBER 31, JUNE 30,
----------------------- --------
1992 1993 1994
-------- -------- --------
<S> <C> <C> <C>
REVENUES
Interest on loans $2,812 $2,196 $1,798
Dividend income 0 316 351
Gain from sale of mortgage backed derivative
security 0 68 44
Other (47) 248 188
-------- -------- --------
2,765 2,828 2,381
-------- -------- --------
EXPENSES
Provision for loan losses 1,901 794 396
Real estate owned:
Net operations 869 112 (174)
Depreciation 58 48 41
Provision for losses 2,491 1,589 271
Interest 798 385 81
Loss on settlement of pension plan 120 0 0
Other operating expenses 912 949 858
-------- -------- --------
7,149 3,877 1,473
-------- -------- --------
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES (4,384) (1,049) 908
INCOME TAX BENEFIT (216) 0 0
-------- -------- --------
NET LOSS FROM CONTINUING OPERATIONS (4,168) (1,049) 908
DISCONTINUED OPERATIONS
Income from discontinued banking operations, net 3,214 1,001 0
Gain on sale of discontinued banking operations 0 4,992 100
-------- -------- --------
NET INCOME (LOSS) ($954) $4,944 $1,008
======== ======== ========
NET INCOME (LOSS) PER SHARE
From continuing operations ($2.87) ($0.72) $0.63
From discontinued operations 2.22 4.13 0.07
-------- -------- --------
Net income (loss) per share ($0.66) $3.41 $0.70
======== ======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING 1,451 1,450 1,450
======== ======== ========
</TABLE>
2
<PAGE> 46
EXHIBIT 6
---------
CONGRESS STREET - COMPARATIVE FINANCIAL INFORMATION FOR
THE YEARS ENDED 8/31/92 AND 8/31/93; AND
FOR THE TWELVE MONTHS ENDED MAY 31, 1994
<PAGE> 47
<TABLE>
CONGRESS STREET PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<CAPTION>
AS OF
AS OF AUGUST 31, MAY 31,
--------------------- ---------
1992 1993 1994
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Real estate investments:
Real estate and financial service $10,074 $11,110 $11,553
Real estate owned 447 0 0
Real estate partnerships (836) (1,151) (1,445)
Less allowance for possible losses (126) 0 0
--------- --------- ---------
9,559 9,959 10,108
Amounts receivable from affiliates 64 0 0
Cash 36 24 105
Other assets 171 144 124
--------- --------- ---------
$9,830 $10,127 $10,337
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Notes payable to affiliate $386 $448 $436
Notes payable to bank 1,312 746 45
Amounts payable to affiliate 258 260 107
Deferred gain 94 0 0
Deferred income taxes 28 83 121
Other liabilities 176 160 191
--------- --------- ---------
2,254 1,697 900
--------- --------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.10 par value 128 128 236
Capital in excess of par 12,818 12,818 13,515
Retained earnings (3,822) (2,997) (2,797)
--------- --------- ---------
9,124 9,949 10,954
Less: Treasury shares at cost - 207,896 in 1993
and 1992 (1,519) (1,519) (1,517)
Unrealized loss on securities (29) 0 0
--------- --------- ---------
7,576 8,430 9,437
--------- --------- ---------
$9,830 $10,127 $10,337
========= ========= =========
</TABLE>
1
<PAGE> 48
<TABLE>
CONGRESS STREET PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
<CAPTION>
TWELVE MONTHS
ENDED
YEARS ENDED AUGUST 31, MAY 31,
-------------------- --------
1992 1993 1994
-------- -------- --------
<S> <C> <C> <C>
REVENUES
Equity in earnings (losses) of real estate co.s
and partnerships ($1,585) $365 $1,323
Loss on writedown of securities (partnerships) (853) 0 (3)
Interest 27 34 35
Gain on sale of real estate investments 682 47 3
-------- -------- --------
(1,729) 446 1,358
-------- -------- --------
EXPENSES
Interest 155 127 76
General and administrative 224 185 194
Real estate owned expenses 1 1 0
Allowance for possible losses 32 (30) 0
-------- -------- --------
412 283 270
-------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS (2,141) 163 1,088
Income tax benefit 82 (54) (107)
-------- -------- --------
INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS (2,059) 109 981
EQUITY IN INCOME FROM DISCONTINUED OPERATIONS:
Income from discontinued operations 324 213 97
Gain on sale of discontinued operations 0 503 503
-------- -------- --------
324 716 600
-------- -------- --------
NET INCOME (LOSS) ($1,735) $825 $1,581
======== ======== ========
NET INCOME (LOSS) PER SHARE
From continuing operations ($1.92) $0.10 $0.62
From discontinued operations 0.30 0.67 0.38
-------- -------- --------
NET INCOME (LOSS) PER SHARE ($1.61) $0.77 $1.01
======== ======== ========
Weighted average shares outstanding 1,075 1,075 1,572
======== ======== ========
</TABLE>
2
<PAGE> 49
EXHIBIT 7
---------
COMPARATIVE MARKET AND FINANCIAL DATA FOR
SELECTED REAL ESTATE ENTITIES
<PAGE> 50
<TABLE>
THE PARKWAY COMPANY/EB, INC./CONGRESS STREET PROPERTIES, INC.
Market and Financial Data for Selected Real Estate Entities
(in millions, except per share data and ratios)
<CAPTION>
BRADLEY COLUMBIA INCOME KOGER SOUTHWESTERN
REAL REAL OPPORT. EQUITY PENN. PROPERTY
Market Data ESTATE ESTATE REALTY INC. REIT TRUST
- ----------- ------ ------ ------ ------ ----- -----------
<S> <C> <C> <C> <C> <C> <C>
Stock Symbol BTR CIV IOT KE PEI SWP
Listed AMEX AMEX AMEX AMEX AMEX NYSE
9/12/94 Stock Price $8.00 $10.31 $18.50 $8.75 $23.25 $12.13
52 Week High Price $9.63 $10.38 $21.63 $10.50 $26.00 $15.00
52 Week Low Price $7.63 $7.75 $13.25 $6.13 $22.00 $11.00
9/12/94 Price/52 Week High Price 83.1% 99.4% 85.5% 83.3% 89.4% 80.8%
Common Shares Outstanding 16.377 3.603 0.791 17.598 8.649 15.243
Market Value of Common Equity $131.0 $37.2 $14.6 $154.0 $201.1 $184.8
Indicated Annual Dividend $0.64 $0.48 $0.60 $0.00 $1.88 $0.92
Dividend Yield 8.0% 4.7% 3.2% 0.0% 8.1% 7.6%
Latest Fiscal Year End 12/93 12/93 12/93 12/93 8/94 12/93
Latest 12 Months Operating Data
- -------------------------------
Revenues $25.5 NA $7.1 $73.9 $31.6 $33.1
Gross Margin 9.0 NA 1.9 23.4 14.6 8.7
Pretax Income 6.6 NA 0.1 2.5 23.3 2.9
Net Income from Cont. Ops. (A) 6.6 NA 0.1 2.5 23.1 3.2
Net Income (B) 6.6 NA 0.9 2.5 23.1 3.2
Cash Flow (C) 10.5 NA 1.1 14.9 26.4 9.7
EPS - Excluding Extra. & Disc. Op. $0.44 NA $0.14 $0.16 $2.67 $0.39
Cash Flow Per Share (D) $0.71 NA $1.42 $0.96 $3.05 $1.20
12 Months Ended 3/94 3/94 6/94 6/94 5/94 12/93
Latest Available Balance Sheet Data
- -----------------------------------
Total Assets 156.2 38.5 49.4 618.9 123.5 229.6
Long-Term Debt 56.5 0.0 21.0 328.2 58.7 84.8
Total Liabilities 60.3 0.8 23.3 341.8 63.2 94.8
Stockholders' Equity 95.9 37.6 26.1 277.1 60.4 134.8
Book Value Per Share $5.86 $10.45 $33.00 $15.74 $6.98 $8.84
Balance Sheet Date 3/94 3/94 6/94 6/94 5/94 12/93
<CAPTION>
TRANS- UNITED THE
CONTINENTAL DOMINION PARKWAY
Market Data REALTY REALTY Median Mean COMPANY
- ----------- ----------- ------- ------ ---- -------
<S> <C> <C> <C> <C> <C>
Stock Symbol TCI UDR PKWY
Listed NYSE NYSE OTC
9/12/94 Stock Price $14.25 $13.50 $12.63
52 Week High Price $17.88 $16.88 $14.75
52 Week Low Price $12.25 $12.63 $10.00
9/12/94 Price/52 Week High Price 79.7% 80.0% 83.2% 85.2% 85.6%
Common Shares Outstanding 2.675 50.214 1.260
Market Value of Common Equity $38.1 $677.9 $142.5 $179.8 $15.9
Indicated Annual Dividend $0.00 $0.78 $0.60
Dividend Yield 0.0% 5.8% 5.2% 4.7% 4.8%
Latest Fiscal Year End 12/93 12/93 6/94
Latest 12 Months Operating Data
- -------------------------------
Revenues $34.7 $104.5 $33.1 $44.3 $9.3
Gross Margin (0.6) 33.6 3.5
Pretax Income (7.4) 13.8 2.3
Net Income from Cont. Ops. (A) (7.4) 13.8 2.9
Net Income (B) (6.8) 13.8 4.1
Cash Flow (C) (1.4) 36.8 10.5 14.0 3.9
EPS - Excluding Extra. & Disc. Op. ($2.75) $0.33 $2.28
Cash Flow Per Share (D) ($0.54) $0.89 $3.08
12 Months Ended 6/94 6/94 3/94
Latest Available Balance Sheet Data
- -----------------------------------
Total Assets 233.9 682.4 $192.9 $266.5 54.6
Long-Term Debt 128.5 298.6 25.9
Total Liabilities 140.0 324.0 26.8
Stockholders' Equity 93.9 358.5 27.7
Book Value Per Share $35.10 $7.14 $22.00
Balance Sheet Date 6/94 6/94 3/94
<FN>
Source: FactSet Data Systems
</TABLE>
<PAGE> 51
THE PARKWAY COMPANY/EB, INC./CONGRESS STREET PROPERTIES, INC.
Market and Financial Data for Selected Real Estate Entities
<TABLE>
<CAPTION>
BRADLEY COLUMBIA INCOME KOGER SOUTHWESTERN
REAL REAL OPPORT. EQUITY PENN. PROPERTY
IBES/RPR Mean Annual Estimates ESTATE ESTATE REALTY INC. REIT TRUST
- ------------------------------ ------- ------ ------ ------ ----- ------------
<S> <C> <C> <C> <C> <C> <C>
Latest Fiscal Year EPS $0.41 $1.38 $0.09 $0.18 $1.62 $0.39
LTM EPS 0.44 NA 0.14 0.16 2.67 0.39
LTM CFPS 0.71 NA 1.42 0.96 3.05 1.20
Estimated Fiscal 1994 EPS 0.48 NA NA 0.35 1.37 NA
Estimated Calendar 1994 EPS 0.53 0.00 0.00 0.18 1.62 0.00
Estimated Calendar 1994 CFPS (D) 0.79 0.00 1.28 0.97 2.01 0.81
Estimated Fiscal 1995 EPS 0.57 NA NA NA 1.87 NA
Estimated Calendar 1995 EPS 0.57 NA NA NA 1.87 NA
Estimated Calendar 1995 CFPS (D) 0.83 0.00 1.28 0.80 2.26 0.81
Latest Available Leverage Ratios
- --------------------------------
Total Liabilities/Total Assets 38.6% 2.1% 47.1% 55.2% 51.1% 41.3%
LTM Profitability Margins
- -------------------------
Gross Margin 35.4% NA 26.1% 31.6% 46.3% 26.2%
Pretax Income 25.9% NA 1.5% 3.4% 73.8% 8.8%
Net Income from Cont. Ops. (A) 25.9% NA 1.5% 3.4% 73.0% 9.6%
Net Income (B) 25.9% NA 12.9% 3.4% 73.0% 9.6%
Cash Flow (C) 41.0% NA 15.8% 20.2% 83.7% 29.4%
Valuation Ratios
Stock Price/Latest EPS 18.0 x NA NM NM 8.7 x 30.9 x
Stock Price/Latest CFPS 11.3 x NA 13.1 x 9.1 x 7.6 x 10.1 x
Stock Price/Calendar 1994 EPS 15.2 x NA NA 50.0 x 14.4 x NA
Stock Price/Calendar 1994 CFPS 10.2 x NA 14.5 x 9.0 x 11.6 x 15.0 x
Stock Price/Calendar 1995 EPS 14.0 x NA NA NA 12.4 x NA
Stock Price/Calendar 1995 CFPS 9.6 x NA 14.5 x 10.9 x 10.3 x 15.0 x
Stock Price/Book Value Per Share 1.4 x 1.0 x 0.6 x 0.6 x 3.3 x 1.4 x
<CAPTION>
TRANS- UNITED THE
CONTINENTAL DOMINION PARKWAY
IBES/RPR Mean Annual Estimates REALTY REALTY Median Mean COMPANY
- ------------------------------ ---------- -------- ------ ---- -------
<S> <C> <C> <C> <C> <C>
Latest Fiscal Year EPS ($3.78) $0.29 $0.97
LTM EPS (2.75) 0.33 2.28
LTM CFPS (0.54) 0.89 3.08
Estimated Fiscal 1994 EPS NA 0.42 NA
Estimated Calendar 1994 EPS 0.00 0.52 0.00
Estimated Calendar 1994 CFPS (D) 2.21 1.07 0.79
Estimated Fiscal 1995 EPS NA 0.61 NA
Estimated Calendar 1995 EPS NA 0.61 NA
Estimated Calendar 1995 CFPS (D) 2.21 1.16 0.79
Latest Available Leverage Ratios
- --------------------------------
Total Liabilities/Total Assets 59.9% 47.5% 47.3% 42.9% 49.2%
LTM Profitability Margins
- -------------------------
Gross Margin -1.8% 32.1% 31.6% 28.0% 38.0%
Pretax Income -21.2% 13.2% 8.8% 15.1% 24.5%
Net Income from Cont. Ops. (A) -21.2% 13.2% 9.6% 15.1% 30.9%
Net Income (B) -19.7% 13.2% 12.9% 16.9% 44.3%
Cash Flow (C) -4.2% 35.2% 29.4% 31.6% 41.7%
Valuation Ratios
- ----------------
Stock Price/Latest EPS NM 40.6 x 24.4 x 24.5 x 5.5 x
Stock Price/Latest CFPS NM 15.2 x 10.7 x 11.1 x 4.1 x
Stock Price/Calendar 1994 EPS NA 26.2 x 20.7 x 26.5 x NA
Stock Price/Calendar 1994 CFPS 6.4 x 12.6 x 11.6 x 11.3 x 15.9 x
Stock Price/Calendar 1995 EPS NA 22.1 x 14.0 x 16.2 x NA
Stock Price/Calendar 1995 CFPS 6.4 x 11.6 x 10.9 x 11.2 x 15.9 x
Stock Price/Book Value Per Share 0.4 x 1.9 x 1.2 x 1.3 x 0.6 x
<FN>
Footnotes
- ---------
(A) Net Income available to common before extraordinary items and discontinued operations.
(B) Net Income available to common.
(C) Cash Flow is defined as income before extraordinary items & discontinued operations plus
depreciation, amortization, and deferred taxes less preferred dividends.
(D) Cash flow per share ("CFPS") for Calendar 1993-1995 is calculated by adding the
LTM non-cash items per share to estimated EPS.
Source: FactSet Data Systems
</TABLE>
<PAGE> 52
<TABLE>
<CAPTION>
BRADLEY REAL ESTATE TRUST
STOCK SYMBOL BTR FISCAL YEAR END 12/93
EXCHANGE AMEX
- -----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $8.00 LTM Avg. Daily Trading Volume 30,083
52 Week High $9.63 S&P Rating NA
52 Week Low $7.63 Beta (Relative to NYSE) 1.07
% of 52 Week High 83.1% ROE (LTM) 6.88%
% of 1/4/93 Price 92.8% ROA (LTM) 4.22%
Shares Outstanding 16.377 Tax Rate (LTM) 0.00%
Market Value (MV) $131.0 Mean I/B/E/S Estimate $0.48
MV of Capital. (MVC) NA for fiscal year ended 12/94
Annual Dividend $0.64 Mean I/B/E/S Estimate $0.57
Dividend Yield 8.0% for fiscal year ended 12/95
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 18.0 x Gross Profit 35.4% 36.0%
Fiscal Year 1994 EPS 16.7 x EBITDA NA 36.0%
Fiscal Year 1995 EPS 14.0 x EBIT NA 36.0%
LTM Cash Flow 11.3 x Pretax Income 25.9% 12.3%
Book Value 1.4 x Net Income 25.9% 12.3%
VALUATION RATIOS (MVC TO:) Cash Flow 41.0% 29.0%
- --------------------------
Revenues 0.0 x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit 0.0 x Equity NA 202.8%
EBITDA NA x Total Capital. NA 53.7%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues 48.2% EBITDA/Int. Exp. (x) NA 1.7
Net Income 180.4% EBIT/Int. Expense (x) NA 1.7
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 3/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $10.6 $12.1 $23.2 $25.5
Gross Profit 3.7 4.6 8.2 9.0
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) 3.7 4.6 8.2 NA
Depreciation & Amortization 0.0 0.0 0.0 0.0
Operating Income (EBIT) 3.7 4.6 8.2 NA
PreTax Income 0.7 0.8 5.5 6.6
Net Income from Continuing Ops. 0.7 0.8 5.5 6.6
Net Income 0.7 0.8 5.5 6.6
Cash Flow $2.5 $3.0 $9.1 $10.5
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items $0.19 $0.20 $0.41 $0.44
Ful. Dil. EPS excl. Extr./Disc. Items $0.19 $0.20 $0.41 $0.44
Cash Flow per Share (Primary) $0.65 $0.75 $0.68 $0.71
Avg. Shs. Outstanding (Primary) 3.8 3.9 13.4 14.8
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 3/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 0.0 0.0 0.0 0.0
ASSETS $50.3 $93.3 $127.9 $156.2
Current Liabilities 6.9 22.3 2.4 NA
Long-Term Debt 35.1 23.2 29.1 56.5
Total Debt 40.7 44.1 29.3 NA
LIABILITIES $42.0 $45.5 $31.5 $60.3
Stockholders' Equity $8.4 $47.8 $96.4 $95.9
LIABILITIES & STOCKHOLDERS' EQUITY $50.3 $93.3 $127.9 $156.2
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 47.1 86.3 124.8 NA
Book Value per Current Share $0.51 $2.92 $5.89 $5.86
</TABLE>
<PAGE> 53
<TABLE>
<CAPTION>
COLUMBIA REAL ESTATE INVS
STOCK SYMBOL CIV FISCAL YEAR END 12/93
EXCHANGE AMEX
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $10.31 LTM Avg. Daily Trading Volume 7,084
52 Week High $10.38 S&P Rating NA
52 Week Low $7.75 Beta (Relative to NYSE) 0.23
% of 52 Week High 99.4% ROE (LTM) NA
% of 1/4/93 Price 126.0% ROA (LTM) NA
Shares Outstanding 3.603 Tax Rate (LTM) NA
Market Value (MV) $37.2 Mean I/B/E/S Estimate NA
MV of Capital. (MVC) NA for fiscal year ended 0/00
Annual Dividend $0.48 Mean I/B/E/S Estimate NA
Dividend Yield 4.7% for fiscal year ended 0/00
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS NA x Gross Profit NA 89.0%
Fiscal Year 1994 EPS NA x EBITDA NA 89.0%
Fiscal Year 1995 EPS NA x EBIT NA 89.0%
LTM Cash Flow NA x Pretax Income NA 21.8%
Book Value 1.0 x Net Income NA 21.8%
VALUATION RATIOS (MVC TO:) Cash Flow NA 28.9%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity 0.0% 317.8%
EBITDA NA x Total Capital. 0.0% 59.0%
EBIT NA x MV of Equity 0.0%
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues -38.7% EBITDA/Int. Exp. (x) NA 1.2
Net Income 10.6% EBIT/Int. Expense (x) NA 1.2
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 3/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $33.9 $23.6 $12.7 NA
Gross Profit 32.6 20.7 10.6 NA
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) 32.6 20.7 10.6 NA
Depreciation & Amortization 0.0 0.0 0.0 NA
Operating Income (EBIT) 32.6 20.7 10.6 NA
PreTax Income 4.4 2.5 5.4 NA
Net Income from Continuing Ops. 4.4 2.5 5.4 NA
Net Income 4.4 2.5 5.4 NA
Cash Flow $5.2 $4.1 $6.9 NA
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items $0.92 $0.56 $1.38 NA
Ful. Dil. EPS excl. Extr./Disc. Items $0.92 $0.56 $1.38 NA
Cash Flow per Share (Primary) $1.09 $0.93 $1.77 NA
Avg. Shs. Outstanding (Primary) 4.8 4.4 3.9 NA
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 3/94
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 0.0 0.0 0.0 0.0
ASSETS $320.7 $186.0 $39.0 $38.5
Current Liabilities NA NA NA NA
Long-Term Debt 244.1 109.1 0.0 0.0
Total Debt 269.7 143.2 0.0 0.0
LIABILITIES $275.5 $145.9 $1.1 $0.8
Stockholders' Equity $45.2 $40.1 $37.9 $37.6
LIABILITIES & STOCKHOLDERS' EQUITY $320.7 $186.0 $39.0 $38.5
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 298.0 165.7 36.6 0.8
Book Value per Current Share $12.55 $11.13 $10.53 $10.45
</TABLE>
<PAGE> 54
<TABLE>
<CAPTION>
INCOME OPPORTUNITY RTY -SBI
STOCK SYMBOL IOT FISCAL YEAR END 12/93
EXCHANGE AMEX
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $18.50 LTM Avg. Daily Trading Volume 228
52 Week High $21.63 S&P Rating NA
52 Week Low $13.25 Beta (Relative to NYSE) (0.07)
% of 52 Week High 85.5% ROE (LTM) 0.42%
% of 1/4/93 Price 113.0% ROA (LTM) 0.22%
Shares Outstanding 0.791 Tax Rate (LTM) 0.00%
Market Value (MV) $14.6 Mean I/B/E/S Estimate NA
MV of Capital. (MVC) NA for fiscal year ended 0/00
Annual Dividend $0.60 Mean I/B/E/S Estimate NA
Dividend Yield 3.2% for fiscal year ended 0/00
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 133.7 x Gross Profit 26.1% -18.7%
Fiscal Year 1994 EPS NA x EBITDA NA -18.7%
Fiscal Year 1995 EPS NA x EBIT NA -18.7%
LTM Cash Flow 13.1 x Pretax Income 1.5% -56.4%
Book Value 0.6 x Net Income 1.5% -56.4%
VALUATION RATIOS (MVC TO:) Cash Flow 15.8% -42.2%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 82.3%
EBITDA NA x Total Capital. NA 45.8%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues 14.4% EBITDA/Int. Exp. (x) NA 0.0
Net Income NA EBIT/Int. Expense (x) NA 0.0
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 6/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $5.6 $6.6 $7.3 $7.1
Gross Profit (5.7) 1.4 1.8 1.9
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) (5.7) 1.4 1.8 NA
Depreciation & Amortization 0.0 0.0 0.0 0.0
Operating Income (EBIT) (5.7) 1.4 1.8 NA
PreTax Income (9.1) (0.6) 0.1 0.1
Net Income from Continuing Ops. (9.1) (0.6) 0.1 0.1
Net Income (4.3) (0.6) 0.9 0.9
Cash Flow ($8.1) $0.3 $1.0 $1.1
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items ($9.97) ($0.64) $0.09 $0.14
Ful. Dil. EPS excl. Extr./Disc. Items ($9.97) ($0.64) $0.09 $0.13
Cash Flow per Share (Primary) ($8.96) $0.38 $1.26 $1.42
Avg. Shs. Outstanding (Primary) 0.9 0.9 0.8 0.8
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 6/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 0.0 0.0 0.0 0.0
ASSETS $52.4 $51.3 $50.1 $49.4
Current Liabilities NA NA NA NA
Long-Term Debt 21.9 22.0 20.6 21.0
Total Debt 22.1 22.3 21.2 NA
LIABILITIES $25.4 $24.9 $23.8 $23.3
Stockholders' Equity $27.0 $26.4 $26.3 $26.1
LIABILITIES & STOCKHOLDERS' EQUITY $52.4 $51.3 $50.1 $49.4
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 48.8 47.5 47.0 NA
Book Value per Current Share $34.09 $33.35 $33.29 $33.00
</TABLE>
<PAGE> 55
<TABLE>
<CAPTION>
KOGER EQUITY INC
STOCK SYMBOL KE FISCAL YEAR END 12/93
EXCHANGE AMEX
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ ------- -----------------
<S> <C> <C> <C> <C>
Stock Price $8.75 LTM Avg. Daily Trading Volume 24,828
52 Week High $10.50 S&P Rating NA
52 Week Low $6.13 Beta (Relative to NYSE) 1.47
% of 52 Week High 83.3% ROE (LTM) 0.91%
% of 1/4/93 Price 106.1% ROA (LTM) 0.41%
Shares Outstanding 17.598 Tax Rate (LTM) 0.00%
Market Value (MV) $154.0 Mean I/B/E/S Estimate $0.35
MV of Capital. (MVC) NA for fiscal year ended 12/94
Annual Dividend $0.00 Mean I/B/E/S Estimate NA
Dividend Yield 0.0% for fiscal year ended 12/95
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 54.2 x Gross Profit 31.6% 23.5%
Fiscal Year 1994 EPS 25.0 x EBITDA NA NA
Fiscal Year 1995 EPS NA x EBIT NA NA
LTM Cash Flow 9.1 x Pretax Income 3.4% -1.3%
Book Value 0.6 x Net Income 3.4% -1.3%
VALUATION RATIOS (MVC TO:) Cash Flow 20.2% 15.8%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 84.6%
EBITDA NA x Total Capital. NA 45.9%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues -6.0% EBITDA/Int. Exp. (x) NA NA
Net Income NA EBIT/Int. Expense (x) NA NA
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 6/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $52.5 $46.2 $46.4 $73.9
Gross Profit 7.1 12.5 13.9 23.4
Selling, General & Administrative 0.0 0.0 NA NA
Operating Cash Flow (EBITDA) 7.1 12.5 NA NA
Depreciation & Amortization 0.0 0.0 NA NA
Operating Income (EBIT) 7.1 12.5 NA NA
PreTax Income (5.9) 0.9 2.5 2.5
Net Income from Continuing Ops. (5.9) 0.9 2.5 2.5
Net Income (5.9) 0.9 2.5 2.5
Cash Flow $1.5 $9.2 $11.4 $14.9
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items ($0.43) $0.07 $0.18 $0.16
Ful. Dil. EPS excl. Extr./Disc. Items ($0.43) $0.07 $0.18 $0.15
Cash Flow per Share (Primary) $0.11 $0.70 $0.85 $0.96
Avg. Shs. Outstanding (Primary) 13.8 13.2 13.4 15.5
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 6/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment NA NA NA NA
ASSETS $399.2 $396.8 $615.1 $618.9
Current Liabilities NA NA NA NA
Long-Term Debt 121.4 94.4 327.4 328.2
Total Debt 158.8 155.4 330.6 NA
LIABILITIES $164.7 $161.3 $339.6 $341.8
Stockholders' Equity $234.6 $235.5 $275.4 $277.1
LIABILITIES & STOCKHOLDERS' EQUITY $399.2 $396.8 $615.1 $618.9
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 390.2 381.6 587.5 NA
Book Value per Current Share $13.33 $13.38 $15.65 $15.74
</TABLE>
<PAGE> 56
<TABLE>
<CAPTION>
PENNSYLVANIA RE INVS TRUST
STOCK SYMBOL PEI FISCAL YEAR END 8/94
EXCHANGE AMEX
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
<S> <C> <C> <C> <C>
Stock Price $23.25 LTM Avg. Daily Trading Volume 10,071
52 Week High $26.00 S&P Rating NA
52 Week Low $22.00 Beta (Relative to NYSE) 0.74
% of 52 Week High 89.4% ROE (LTM) 38.22%
% of 1/4/93 Price 96.9% ROA (LTM) 18.68%
Shares Outstanding 8.649 Tax Rate (LTM) 1.00%
Market Value (MV) $201.1 Mean I/B/E/S Estimate $1.37
MV of Capital. (MVC) NA for fiscal year ended 8/94
Annual Dividend $1.88 Mean I/B/E/S Estimate $1.87
Dividend Yield 8.1% for fiscal year ended 8/95
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 8.7 x Gross Profit 46.3% 47.7%
Fiscal Year 1994 EPS 17.0 x EBITDA NA 47.7%
Fiscal Year 1995 EPS 12.4 x EBIT NA 47.7%
LTM Cash Flow 7.6 x Pretax Income 73.8% 49.4%
Book Value 3.3 x Net Income 73.0% 49.3%
VALUATION RATIOS (MVC TO:) Cash Flow 83.7% 59.5%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 46.4%
EBITDA NA x Total Capital. NA 30.4%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV of Capital. NA
- ------------------------ --------------------------------------------
Revenues 15.5% EBITDA/Int. Exp. (x) NA 8.7
Net Income 16.3% EBIT/Int. Expense (x) NA 8.7
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 8/91 8/92 8/93 5/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $19.8 $20.5 $26.4 $31.6
Gross Profit 9.7 9.6 12.4 14.6
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) 9.7 9.6 12.4 NA
Depreciation & Amortization 0.0 0.0 0.0 0.0
Operating Income (EBIT) 9.7 9.6 12.4 NA
PreTax Income 10.4 8.7 14.1 23.3
Net Income from Continuing Ops. 10.4 8.7 14.0 23.1
Net Income 10.4 8.7 14.0 23.1
Cash Flow $12.3 $10.8 $16.8 $26.4
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items $1.27 $1.01 $1.62 $2.67
Ful. Dil. EPS excl. Extr./Disc. Items $1.27 $1.01 $1.62 $2.66
Cash Flow per Share (Primary) $1.51 $1.26 $1.94 $3.05
Avg. Shs. Outstanding (Primary) 8.2 8.6 8.6 8.7
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 8/91 8/92 8/93 5/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 0.0 0.0 0.0 0.0
ASSETS $57.7 $66.3 $107.9 $123.5
Current Liabilities NA NA NA NA
Long-Term Debt 7.9 10.5 51.9 58.7
Total Debt 8.8 10.8 51.9 NA
LIABILITIES $11.3 $13.2 $56.0 $63.2
Stockholders' Equity $46.4 $53.1 $51.9 $60.4
LIABILITIES & STOCKHOLDERS' EQUITY $57.7 $66.3 $107.9 $123.5
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 49.8 50.1 99.7 NA
Book Value per Current Share $5.37 $6.14 $6.00 $6.98
</TABLE>
<PAGE> 57
<TABLE>
<CAPTION>
SOUTH WEST PPTY TR INC
STOCK SYMBOL SWP FISCAL YEAR END 12/93
EXCHANGE NYSE
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
<S> <C> <C> <C> <C>
Stock Price $12.13 LTM Avg. Daily Trading Volume 48,052
52 Week High $15.00 S&P Rating NA
52 Week Low $11.00 Beta (Relative to NYSE) 0.94
% of 52 Week High 80.8% ROE (LTM) 2.36%
% of 1/4/93 Price 93.3% ROA (LTM) 1.39%
Shares Outstanding 15.243 Tax Rate (LTM) -9.16%
Market Value (MV) $184.8 Mean I/B/E/S Estimate NA
MV of Capital. (MVC) $269.6 for fiscal year ended 0/00
Annual Dividend $0.92 Mean I/B/E/S Estimate NA
Dividend Yield 7.6% for fiscal year ended 0/00
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 30.9 x Gross Profit 26.2% 34.1%
Fiscal Year 1994 EPS NA x EBITDA NA NA
Fiscal Year 1995 EPS NA x EBIT NA NA
LTM Cash Flow 10.1 x Pretax Income 8.8% -8.2%
Book Value 1.4 x Net Income 9.6% -6.2%
VALUATION RATIOS (MVC TO:) Cash Flow 29.4% 8.4%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity 63.8% -364.6%
EBITDA NA x Total Capital. 41.9% 101.6%
EBIT NA x MV of Equity 46.6%
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues 32.2% EBITDA/Int. Exp. (x) NA NA
Net Income NA EBIT/Int. Expense (x) NA NA
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 12/93
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $18.9 $19.7 $33.1 $33.1
Gross Profit 10.0 4.6 8.7 8.7
Selling, General & Administrative 2.6 NA NA NA
Operating Cash Flow (EBITDA) 7.4 NA NA NA
Depreciation & Amortization 3.8 NA NA NA
Operating Income (EBIT) 3.7 NA NA NA
PreTax Income (2.7) (3.8) 2.9 2.9
Net Income from Continuing Ops. (2.3) (3.2) 3.2 3.2
Net Income (2.1) (2.2) 3.2 3.2
Cash Flow $0.0 ($0.9) $9.7 $9.7
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items ($5.63) ($4.57) $0.39 $0.39
Ful. Dil. EPS excl. Extr./Disc. Items ($5.55) ($4.57) $0.39 $0.00
Cash Flow per Share (Primary) $0.07 ($0.90) $1.20 $1.20
Avg. Shs. Outstanding (Primary) 0.7 1.0 8.1 8.1
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 12/93
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 54.0 0.5 NA NA
ASSETS $62.4 $67.1 $229.6 $229.6
Current Liabilities NA NA NA NA
Long-Term Debt 65.9 77.8 84.8 84.8
Total Debt 65.9 77.8 86.1 86.1
LIABILITIES $71.8 $84.2 $94.8 $94.8
Stockholders' Equity ($9.4) ($17.1) $134.8 $134.8
LIABILITIES & STOCKHOLDERS' EQUITY $62.4 $67.1 $229.6 $229.6
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 54.7 54.6 205.4 205.4
Book Value per Current Share ($0.62) ($1.12) $8.84 $8.84
</TABLE>
<PAGE> 58
<TABLE>
<CAPTION>
TRANSCONTINENTAL RLTY
STOCK SYMBOL TCI FISCAL YEAR END 12/93
EXCHANGE NYSE
- ----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $14.25 LTM Avg. Daily Trading Volume 2,027
52 Week High $17.88 S&P Rating NA
52 Week Low $12.25 Beta (Relative to NYSE) 0.16
% of 52 Week High 79.7% ROE (LTM) -7.85%
% of 1/4/93 Price 101.8% ROA (LTM) -3.15%
Shares Outstanding 2.675 Tax Rate (LTM) 0.00%
Market Value (MV) $38.1 Mean I/B/E/S Estimate NA
MV of Capital. (MVC) NA for fiscal year ended 0/00
Annual Dividend $0.00 Mean I/B/E/S Estimate NA
Dividend Yield 0.0% for fiscal year ended 0/00
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS -5.2 x Gross Profit -1.8% -20.1%
Fiscal Year 1994 EPS NA x EBITDA NA -20.1%
Fiscal Year 1995 EPS NA x EBIT NA -20.1%
LTM Cash Flow -26.5 x Pretax Income -21.2% -41.8%
Book Value 0.4 x Net Income -21.2% -41.8%
VALUATION RATIOS (MVC TO:) Cash Flow -4.2% -25.3%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 86.7%
EBITDA NA x Total Capital. NA 47.1%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues 14.0% EBITDA/Int. Exp. (x) NA (0.9)
Net Income -23.2% EBIT/Int. Expense (x) NA (0.9)
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 6/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $24.6 $26.4 $32.0 $34.7
Gross Profit (12.9) (0.8) (1.5) (0.6)
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) (12.9) (0.8) (1.5) NA
Depreciation & Amortization 0.0 0.0 0.0 0.0
Operating Income (EBIT) (12.9) (0.8) (1.5) NA
PreTax Income (17.2) (6.2) (10.2) (7.4)
Net Income from Continuing Ops. (17.2) (6.2) (10.2) (7.4)
Net Income (16.1) (5.8) (8.6) (6.8)
Cash Flow ($13.4) ($1.9) ($4.5) ($1.4)
- -----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items ($5.73) ($1.99) ($3.78) ($2.75)
Ful. Dil. EPS excl. Extr./Disc. Items ($5.73) ($1.98) ($3.78) ($2.77)
Cash Flow per Share (Primary) ($4.47) ($0.61) ($1.68) ($0.54)
Avg. Shs. Outstanding (Primary) 3.0 3.1 2.7 2.7
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 6/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment 0.0 0.0 0.0 0.0
ASSETS $184.6 $203.7 $221.1 $233.9
Current Liabilities NA NA NA NA
Long-Term Debt 27.8 71.2 104.5 128.5
Total Debt 63.2 90.0 114.7 NA
LIABILITIES $71.8 $98.1 $124.5 $140.0
Stockholders' Equity $112.8 $105.6 $96.6 $93.9
LIABILITIES & STOCKHOLDERS' EQUITY $184.6 $203.7 $221.1 $233.9
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 173.5 183.9 205.4 NA
Book Value per Current Share $42.16 $39.49 $36.11 $35.10
</TABLE>
<PAGE> 59
<TABLE>
<CAPTION>
UNITED DOMINION REALTY TRUST
STOCK SYMBOL UDR FISCAL YEAR END 12/93
EXCHANGE NYSE
- -----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $13.50 LTM Avg. Daily Trading Volume 72,583
52 Week High $16.88 S&P Rating NA
52 Week Low $12.63 Beta (Relative to NYSE) 1.03
% of 52 Week High 80.0% ROE (LTM) 3.86%
% of 1/4/93 Price 100.9% ROA (LTM) 2.03%
Shares Outstanding 50.214 Tax Rate (LTM) 0.00%
Market Value (MV) $677.9 Mean I/B/E/S Estimate $0.42
MV of Capital. (MVC) NA for fiscal year ended 12/94
Annual Dividend $0.78 Mean I/B/E/S Estimate $0.61
Dividend Yield 5.8% for fiscal year ended 12/95
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 40.6 x Gross Profit 32.1% 30.4%
Fiscal Year 1994 EPS 32.1 x EBITDA NA 30.4%
Fiscal Year 1995 EPS 22.1 x EBIT NA 29.9%
LTM Cash Flow 15.2 x Pretax Income 13.2% 9.9%
Book Value 1.9 x Net Income 13.2% 9.9%
VALUATION RATIOS (MVC TO:) Cash Flow 35.2% 34.2%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 101.2%
EBITDA NA x Total Capital. NA 50.3%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues 32.3% EBITDA/Int. Exp. (x) NA 1.5
Net Income 76.3% EBIT/Int. Expense (x) NA 1.5
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 12/91 12/92 12/93 6/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $51.3 $64.6 $89.8 $104.5
Gross Profit 15.7 18.6 28.8 33.6
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) 15.7 18.6 28.8 NA
Depreciation & Amortization 0.2 0.3 0.6 0.7
Operating Income (EBIT) 15.4 18.3 28.2 NA
PreTax Income 3.6 6.6 11.2 13.8
Net Income from Continuing Ops. 3.6 6.6 11.2 13.8
Net Income 3.6 6.3 11.2 13.8
Cash Flow $16.7 $22.6 $31.6 $36.8
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items $0.15 $0.19 $0.29 $0.33
Ful. Dil. EPS excl. Extr./Disc. Items $0.15 $0.19 $0.29 $0.32
Cash Flow per Share (Primary) $0.68 $0.65 $0.83 $0.89
Avg. Shs. Outstanding (Primary) 24.6 34.6 38.2 41.6
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 12/91 12/92 12/93 6/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment NA NA NA NA
ASSETS $314.5 $390.4 $505.8 $682.4
Current Liabilities NA NA NA NA
Long-Term Debt 129.4 152.6 200.8 298.6
Total Debt 168.3 181.1 229.4 NA
LIABILITIES $178.3 $192.7 $245.9 $324.0
Stockholders' Equity $136.2 $197.7 $260.0 $358.5
LIABILITIES & STOCKHOLDERS' EQUITY $314.5 $390.4 $505.8 $682.4
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 303.4 377.7 483.6 NA
Book Value per Current Share $2.71 $3.94 $5.18 $7.14
</TABLE>
<PAGE> 60
<TABLE>
<CAPTION>
PARKWAY CO
STOCK SYMBOL PKWY FISCAL YEAR END 6/94
EXCHANGE OTC
- -----------------------------------------------------------------------------------------------------------------
MARKET DATA AS OF: 9/12/94 OTHER INFORMATION
- ------------------ -----------------
<S> <C> <C> <C> <C>
Stock Price $12.63 LTM Avg. Daily Trading Volume 1,010
52 Week High $14.75 S&P Rating NA
52 Week Low $10.00 Beta (Relative to NYSE) (0.02)
% of 52 Week High 85.6% ROE (LTM) 10.37%
% of 1/4/93 Price 97.1% ROA (LTM) 5.27%
Shares Outstanding 1.260 Tax Rate (LTM) -26.20%
Market Value (MV) $15.9 Mean I/B/E/S Estimate NA
MV of Capital. (MVC) NA for fiscal year ended 0/00
Annual Dividend $0.60 Mean I/B/E/S Estimate NA
Dividend Yield 4.8% for fiscal year ended 0/00
VALUATION RATIOS (PRICE TO:) MARGINS LTM 3YR AVG.
- ---------------------------- ------- --- --------
LTM EPS 5.5 x Gross Profit 38.0% 29.7%
Fiscal Year 1994 EPS NA x EBITDA NA 29.7%
Fiscal Year 1995 EPS NA x EBIT NA 29.7%
LTM Cash Flow 4.1 x Pretax Income 24.5% -19.8%
Book Value 0.6 x Net Income 30.9% -13.5%
VALUATION RATIOS (MVC TO:) Cash Flow 41.7% -3.8%
- --------------------------
Revenues NA x DEBT/COVERAGE RATIOS (TOTAL DEBT TO:)
-------------------------------------
Gross Profit NA x Equity NA 101.0%
EBITDA NA x Total Capital. NA 55.1%
EBIT NA x MV of Equity NA
THREE YEAR GROWTH RATES: MV OF Capital. NA
- ------------------------ --------------------------------------------
Revenues -20.6% EBITDA/Int. Exp. (x) NA 1.2
Net Income NA EBIT/Int. Expense (x) NA 1.2
</TABLE>
<TABLE>
<CAPTION>
FISCAL YEAR LTM
INCOME STATEMENT ($ MILLIONS) 6/91 6/92 6/93 3/94
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total Revenues (Sales) $14.6 $7.8 $9.2 $9.3
Gross Profit 2.9 2.4 3.6 3.5
Selling, General & Administrative 0.0 0.0 0.0 NA
Operating Cash Flow (EBITDA) 2.9 2.4 3.6 NA
Depreciation & Amortization 0.0 0.0 0.0 0.0
Operating Income (EBIT) 2.9 2.4 3.6 NA
PreTax Income (3.0) (3.6) 0.6 2.3
Net Income from Continuing Ops. (2.3) (3.0) 1.2 2.9
Net Income (2.3) (2.9) 2.7 4.1
Cash Flow ($1.4) ($2.0) $2.2 $3.9
- ----------------------------------------------------------------------------------------------------------------
Primary EPS excl. Extr./Disc. Items ($1.76) ($2.30) $0.97 $2.28
Ful. Dil. EPS excl. Extr./Disc. Items ($1.76) ($2.30) $0.97 $2.28
Cash Flow per Share (Primary) ($1.03) ($1.57) $1.75 $3.08
Avg. Shs. Outstanding (Primary) 1.3 1.3 1.3 1.3
</TABLE>
<TABLE>
<CAPTION>
BALANCE SHEET ($ MILLIONS) 6/91 6/92 6/93 3/94
- -------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Current Assets NA NA NA NA
Property, Plant & Equipment NA NA NA NA
ASSETS $59.4 $54.6 $55.9 $54.6
Current Liabilities NA NA NA NA
Long-Term Debt 26.3 27.0 25.2 25.9
Total Debt 28.1 27.5 27.0 NA
LIABILITIES $29.9 $29.2 $28.7 $26.8
Stockholders' Equity $29.5 $25.4 $27.2 $27.7
LIABILITIES & STOCKHOLDERS' EQUITY $59.4 $54.6 $55.9 $54.6
- -------------------------------------------------------------------------------------------------------------
Working Capital NA NA NA NA
Total Capitalization 54.5 50.9 45.4 NA
Book Value per Current Share $23.41 $20.18 $21.57 $22.00
</TABLE>
<PAGE> 61
EXHIBIT 8
---------
THE PARKWAY COMPANY AND PARKWAY TEXAS CORPORATION -
VALUATION ANALYSIS SHEETS ON MAJOR ASSETS
(PREPARED BY MANAGEMENT TO ESTIMATE CURRENT FAIR MARKET VALUES)
<PAGE> 62
<TABLE>
THE PARKWAY COMPANY including PARKWAY TEXAS CORPORATION
Page 1
REAL PROPERTY
<CAPTION>
Asset Net Book N.R.V. Debt Interest Debt
Name Size 9-30-94 9-30-94 Principal Rate Maturity
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1 One Jackson Place 218K SF 19,937,000 23,340,000 22,404,000 9.25% 8/99
2 Cascade III 25K SF 1,464,000 1,766,000
3 Corporate Square West 96K SF 2,397,000 2,770,000 461,000 9.25% 6/96
4 Corporate Square East 84K SF 616,000 729,000
5 American Inn North 345 Rms 744,000 1,200,000
6 Wink Building 33K SF 303,000 303,000
7 Highland Falls 36 lots 627,000 1,200,000
8 Gilbert Road Land 53 Acres 187,000 187,000
9 Fridkin-Kaufman Land 5.5 Acres 105,000 105,000
10 Kelly Land 22 Acres 343,000 351,000
11 Sugar Creek Center 24 Acres 3,337,000 4,125,000 565,000 Prime 6/96
12 Big Run Land 6 Acres 62,000 117,000
13 East Albany Ind. Park 12 Acres 41,000 112,000
14 Bullard Road 80 Acres 3,799,000 5,227,000
15 Oxon Hill Condos 2 condos 56,000 56,000
16 Plantation Village (PT) 57K SF 1,114,000 1,734,000
17 Silver Hollow / Summer Hill (PT) 15 units 416,000 853,000
18 Westchase Office Building (PT) 22K SF 427,000 873,000
19 Southfork (PT) 11 units 144,000 328,000
20 Greenbriar Colony (PT) 1 house 38,000 38,000
21 Sugarland Triangle (PT) 9 tracts 3,222,000 7,000,000
22 Stonehenge (PT) 55 lots 352,000 550,000
23 Green Busch Road (PT) 162 acres 477,000 896,000
24 Cooks Lane (PT) 19 acres 82,000 176,000
25 All other assets (PT & PKWY) 3,000 61,000
SUB TOTAL REAL PROPERTY $40,293,000 $54,097,000 $23,430,000
Updated by SGR 11/30/94
(PT)=PARKWAY TEXAS CORPORATION F/K/A FIRST CONTINENTAL REIT
Total Secured Recourse Debt: $565,000
</TABLE>
<TABLE>
<CAPTION>
Asset Primary Secondary Action (1) Status
Name Manager Manager Plan 11-30-94
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1 One Jackson Place Fowler Rogers Improve NOI 99% occ.
2 Cascade III Ingram Rogers Improve NOI 100% occ.
3 Corporate Square West Ingram Rogers Improve NOI 99% occ.
4 Corporate Square East Ingram Rogers Improve NOI 86% occ.
5 American Inn North Ingram Rogers Sell for Land Value Negotiating contract
6 Wink Building Ingram Rogers Improve NOI 100% occ.
7 Highland Falls Fowler Rogers Liquidate lots 65% Interest/Buy RTC
8 Gilbert Road Land Speed Ingram Sell Negotiating Contract
9 Fridkin-Kaufman Land Mattingly Rogers Sell, appeal taxes Auction
10 Kelly Land James Rogers Sell SOLD
11 Sugar Creek Center Mattingly Rogers Sell-ext debt to '96 Sold 3.25 acres/NOV
12 Big Run Land Ingram Rogers Buy balance/sell Negotiating Contract /Buyout
13 East Albany Ind. Park Speed Ingram Sell 1 lot under contract
14 Bullard Road Ingram Rogers Sell Res. Dev/Rezone/Sell
15 Oxon Hill Condos McCary Rogers Sell No activity
16 Plantation Village (PT) Mattingly Rogers Improve NOI 42% leased-potential tenant interest
17 Silver Hollow / Summer Hill (PT) Mattingly DeCarlo Improve NOI 87% leased
18 Westchase Office Building (PT) Mattingly Rogers Improve NOI 100% leased.
19 Southfork (PT) Mattingly DeCarlo Improve NOI 91% leased
20 Greenbriar Colony (PT) Mattingly Decarlo Sell or lease 1 left-6 sold
21 Sugarland Triangle (PT) Mattingly Rogers Sell Contract lapsed 12/2
22 Stonehenge (PT) Mattingly DeCarlo Sell 6 lots sold since 9/30-49 remain
23 Green Busch Road (PT) Mattingly Rogers Sell Increase in interest @ adjoining
Falcon Point
24 Cooks Lane (PT) Mattingly Rogers Sell Very slow market.
25 All other assets (PT & PKWY)
This is asset manager plan taking
into account broker's plan.
</TABLE>
<PAGE> 63
<TABLE>
THE PARKWAY COMPANY Including PARKWAY TEXAS CORPORATION
Page 2
EQUITIES
<CAPTION> Price
Asset Net Book Value N.R.V. Shares Owned Per Share Dividend/
Name 9-30-94 9-30-94 11-30-94 11-30-94 Per Share
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
26 EastGroup Properties 1,619,000 2,175,000 112,975 $19.25 1.80
27 EB, Inc. 14,049,000 11,214,000 747,672 $15.00 .10
28 Rockwood National 0 47,000 2,368,161 $0.02
29 Congress Street Properties 364,000 827,000 220,577 $3.75
30 Prudential Realty Trust Capital 6,000 6,000 0 $0.13
31 Prudential Realty Trust Income 333,000 333,000 0 $3.70 .24
32 EQK Realty Trust 0 0 102,000 $2.00
33 American Industrial REIT 0 0 104,900 $1.75
SUB-TOTAL EQUITIES $16,371,000 $14,602,000
</TABLE>
<TABLE>
<CAPTION>
Asset Primary Secondary Action Status
Name Manager Manager Plan 11-30-94
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
26 EastGroup Properties Clark Rogers hold Evaluate for sale in 1995
27 EB, Inc. Fowler Rogers merge Merger Announced
28 Rockwood National Rogers Clark sell/option Optioned to Pate
29 Congress Street Properties
30 Prudential Realty Trust Capital Rogers Speed sell Sold
31 Prudential Realty Trust Income Rogers Speed sell Sold
32 EQK Realty Trust Rogers Speed Increase Purchase subsequent
33 American Industrial REIT Rogers Speed Increase Purchase subsequent
SUB-TOTAL EQUITIES
</TABLE>
<TABLE>
<CAPTION>
NOTES/MORTGAGES OVER $80,000/AND FROM AFFILIATES
Asset Net Book Value N.R.V. Original
Name 9-30-94 9-30-94 Principal Interest Maturity
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
34 Patel Commerce 75,000 75,000 $295,000 9.25% 7/97
35 Patel Macon 184,000 184,000 $338,000 9.50% 12/03
36 EastGroup Mortgages 790,000 790,000 10.25% Various
37 American Inn West 509,000 509,000 $675,000 10.00% 7/04
38 Mannsfield Assoc. 24,000 24,000 $300,000 12.00% 12/93
39 Freedman 420,000 420,000 $420,000 8% 3/16/96
40 Lake Forest, Inc. 176,000 176,000 $250,000 Prime +2 6/95
41 Congress Street Note 377,000 377,000 $448,000 Prime +1 Demand
42 Maplebrook Note (PT) 269,000 548,000 $563,000 9.00%
43 Westbelt Note (PT) 133,000 271,000 $1,321,000 Prime +2 3/1/95
44 Litton/Bysis Loans 458,000 933,000 Various Various
45 Other Notes Receivables 56,000 56,000 Various Various
46 Other Notes Receivables (PT) 715,000 1,543,000
SUB-TOTAL MORTGAGES/NOTES $4,186,000 $5,906,000 Value of notes maturing in 1995= $2,571.00
GRAND TOTAL $60,850,000 $74,605,000
ADD: CASH $522,000 $522,000
DEDUCT: DEBT-SECURED $23,430,000 $23,430,000
DEBT: CORPORATE $3,780,000 $3,780,000
OTHER: Rec/Pay ($771,000) $1,336,000
NET EQUITY VALUE $33,391,000 $46,581,000
Shares Outstanding 1,543,000 1,543,000
NET EQUITY PER SHARE $21.64 $30.19
(PT)=PARKWAY TEXAS CORPORATION F/K/A FIRST CONTINENTAL REIT
</TABLE>
<TABLE>
NOTES/MORTGAGES OVER $80,000/AND FROM AFFILIATES
<CAPTION>
Asset Primary Secondary Action Status
Name Manager Manager Plan 11-30-94
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
34 Patel Commerce Taylor Rogers Collect Current
35 Patel Macon Taylor Rogers Collect Current
36 EastGroup Mortgages Taylor Rogers Collect Some Delinquencies
37 American Inn West Taylor Ingram Collect Current
38 Mannsfield Assoc. Rogers Ingram Rework Received 40K Principal
39 Freedman Taylor Rogers Collect
40 Lake Forest, Inc. Clark Rogers Reworked Secured
41 Congress Street Note Clark Rogers Combination
42 Maplebrook Note (PT) Mattingly DeCarlo Collect Loan is current.
43 Westbelt Note (PT) Mattingly DeCarlo Collect Loan is current.
44 Litton/Bysis Loans DeCarlo Mattingly
45 Other Notes Receivables Taylor Rogers Collect
46 Other Notes Receivables (PT)
</TABLE>
<PAGE> 64
<TABLE>
THE PARKWAY COMPANY
Page 3
REAL PROPERTY
<CAPTION>
Projected
Asset Ad Valorem Projected Brokerage Co./ Broker
Name Location Taxes Zoning NOI Agent Phone
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 One Jackson Place Jackson, MS 360,000 C4 2,413,000 Eastover Realty 601-948-4091
2 Cascade III Columbus, OH 35,000 C3 164,000 PCS Realty 614-847-1900
3 Corporate Square West Indianapolis, IN 72,340 C4 511,000 Revel Co. 317-684-3333
4 Corporate Square East Indianapolis, IN 83,164 C5 160,000 Revel Co. 317-684-3333
5 American Inn North Indianapolis, IN 103,200 C 140,000 Revel Co. 317-248-8597
6 Wink Building New Orleans, LA 35,000 BIP 85,000 Wink, Inc. 504-246-7924
7 Highland Falls Highlands, NC 18,000 Res 124,000 Highlands Falls Realty 704-526-4101
8 Gilbert Road Land Atlanta, GA 13,286 M2 (14,297) Sharp Boylston 404-261-1881
9 Fridkin-Kaufman Land Houston, TX 3,300 C (3,300) Realty Advisory Group 713-621-6556
10 Kelly Land Atlanta, GA 0 RM100 0 Sharp Boylston 404-261-1881
11 Sugar Creek Center Houston, TX 80,000 B1/01 (100,000) Don Russell 713-242-1399
12 Big Run Land Columbus, OH 4,343 C4 (4,343) Remax 614-764-2222
13 East Albany Ind. Park Albany, GA 1,853 M1 (1,880) Webb Properties 912-883-6502
14 Bullard Road New Orleans, LA 80,310 R0/B2 (110,000) Robert F. Talbot 504-525-9763
15 Oxon Hill Condos Oxon Hill, MD 1,082 R-18 (1,082) Coldwell Banker 301-839-4100
16 Plantation Village (PT) Lake Jackson, TX 33,050 Retail 198,000 Fuller-McFarland 713-850-8400
17 Silver Hollow / Summer Hill (PT) Houston, TX 32,952 Res/TH 68,000 Remax Westside 713-589-7200
18 Westchase Office Building (PT) Houston, TX 11,233 Commerica 114,000 Parkway Texas Corp. 713-952-7073
19 Southfork (PT) Corpus Christi, TX 13,418 Res/TH 38,000 Property Mgt. 800-242-3026
20 Greenbriar Colony (PT) Houston, TX 2,758 Res (2,758) Coldwell Banker 713-440-4500
21 Sugarland Triangle (PT) Sugarland, TX 80,000 Comm/Ret (100,000) Parkway Texas Corp. 713-952-7073
22 Stonehenge (PT) Houston, TX 17,369 Res 425,000 Remax Westside 713-589-7200
23 Green Busch Road (PT) Katy, TX 17,490 Res (27,490) John Bonner 713-789-5099
24 Cooks Lane (PT) Fort Worth, TX 14,215 Commerica (14,515) Fuller-McFarland 214-361-9388
25 All other assets (PT & PKWY) Various 437 Res (665) Parkway Texas Corp. 713-952-7073
TOTAL REAL PROPERTY $1,113,800 $4,059,670
</TABLE>
<TABLE>
Asset Primary Secondary Broker Action (1) Status
Name Broker Broker/Contact Plan/Goal '94 11-30-94
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1 One Jackson Place David Fowler Kim Hester Improve NOI 99% Leased
2 Cascade III Mike Haskins Loretta Parimuha Improve NOI 100% leased
3 Corporate Square West Jeff Ruemmele Jim Revel Improve NOI Reduce taxes
4 Corporate Square East Jeff Ruemmele Jim Revel Improve NOI Increase NOI
5 American Inn North Ken Schradner Jim Ingram Sell Offer In
6 Wink Building Stan Vignes Jim Ingram Hold 50% interest
7 Highland Falls Lynn Jones Johnnie White Liquidate lots 65% interest
8 Gilbert Road Land Dave Williams Steve Rogers Sell Offer in
9 Fridkin-Kaufman Land Charlie Lusk Jim Gustafson Sell Auction on 12/3/94
10 Kelly Land Dave Williams Steve Rogers Sell Closed on note
11 Sugar Creek Center Don Russell Mitch Mattingly Sell 3.25 acres sold
12 Big Run Land Mel Oakes Jim Ingram Sell Negotiating Contract
13 East Albany Ind. Park Murray Webb P.K. Carter Sell 1 lot under contract
14 Bullard Road Bob Martin Bob Talbot Rezone to C-1 In Progress
15 Oxon Hill Condos Ginnie Bird Rob Bassett Sell Listed in MLS
16 Plantation Village (PT) Bill Smith Todd Jurek Improve NOI/Sell 42% leased-potential
tenant interest
17 Silver Hollow / Summer Hill (PT) Kyle MacDonnel Mitch Mattingly Sell 87% leased
18 Westchase Office Building (PT) Mitch Mattingly Linda DeCarlo Improve NOI 100% leased
19 Southfork (PT) Joe Eckert Dolores Eckert Improve NOI 91% leased
20 Greenbriar Colony (PT) Margarite Nagler Linda DeCarlo Sell or lease 67% leased
21 Sugarland Triangle (PT) Mitch Mattingly Steve Rogers Sell PTC to buy other 50% from
RTC
22 Stonehenge (PT) Kyle MacDonnel Mitch Mattingly Sell 6 lots sold since 9/30/94
49 remaining
23 Green Busch Road (PT) John Bonner Mitch Mattingly Sell
24 Cooks Lane (PT) Dean McFarland Mitch Mattingly Sell Very slow market
25 All other assets (PT & PKWY) Mitch Mattingly Linda DeCarlo Sell
</TABLE>
<PAGE> 65
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
ONE JACKSON PLACE
218,000 NET RENTABLE SQUARE FEET
JACKSON, MS
JUNE 30, 1994
_______________________________
<S> <C>
Revenues * $ 3,816,000
Expenses (1994 Projected) 1,366,000
----------
Net Operating Income 2,450,000
Interest Payments 2,072,000
----------
Net Cash Flow After Debt $ 378,000
Recurring Capital Expenses 100,000
----------
Net Cash Flow 278,000
==========
Capitalizing the NOI at 9.8% $25,000,000
Less Selling Expenses at 2% $ 500,000
Net Cash Value 24,500,000
Less Debt 22,404,000
----------
Net Realizable Equity Value $2,096,000 **
===========
<FN>
<1> *218,000 square feet at $18 per square foot average rent at 97% occupancy.
<2> **Parkway's share of the Cash Flow from a closing would be $936,000. (See
Controller's detailed closing statement).
</TABLE>
Reconnaissance Appraisal performed by Jack Mann in June 1994. Value
Range $24,500,000 - $29,370,000.
Internal Sales Package prepared July 1994 indicating asking price of
$26,000,000.
Net Book Value at 6-30-94 is $19,941,991
<PAGE> 66
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
CASCADE III OFFICE BUILDING
24,268 SQUARE FEET
COLUMBUS, OHIO
JUNE 30, 1994
_______________________________________________________
The 1994 operating budget for the Cascade III office building reflects
a net operating income of $205,000. The property is currently 100% occupied.
<S> <C>
1994 PROJECTED NET OPERATING INCOME $205,000
Capitalization at 10.5% $1,952,000
Less Sales Expenses (4%) $78,000
Projected Capital Expenses $108,000
Net Value $1,766,000
Book Basis (6-30-94) $1,472,682
</TABLE>
<PAGE> 67
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
CORPORATE SQUARE WEST
A 95,917 SQUARE FOOT
OFFICE BUILDING IN
INDIANAPOLIS, INDIANA
JUNE 30, 1994
__________________________________________________
The 1994 operating budget for Corporate Square West reflects a net
operating income of $466,000. The property is currently 99% leased with 1,086
square feet of vacancy. The NOI could increase to $476,000 due to better than
projected income.
<S> <C>
1994 PROJECTED NET OPERATING INCOME $466,000
Capitalization at 15% $3,107,000
7% Vacancy Loss $65,000
Less Sales Commission $200,000
NET VALUE $2,770,000
Book Basis (6-30-94) $2,375,056
</TABLE>
<PAGE> 68
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
CORPORATE SQUARE EAST
84,436 SQUARE FEET
INDIANAPOLIS, INDIANA
JUNE 30, 1994
________________________________________________
The 1994 operating budget for Corporate Square East reflects a net
operating income of $172,000. The property is currently 88% leased with 9,762
square feet of vacancy. The NOI could decrease to $167,000 due to higher than
projected utility expenses from the harsh winter.
<S> <C>
1994 PROJECTED NET OPERATING INCOME $172,000
Capitalization @ 17.5% $983,000
10% Vacancy Loss $67,000
Less Sales Expenses - 6% 55,000
Recurring Capital Expenses $132,000
NET VALUE $729,000
Book Basis (6-30-94) $610,810
</TABLE>
<PAGE> 69
THE PARKWAY COMPANY
NET REALIZABLE VALUE
AMERICAN INN NORTH
345 UNITS
INDIANAPOLIS, INDIANA
JUNE 30, 1994
____________________________________________
The real value of the motel is in its land which consists of 8.5
acres, located in one of the major growth corridors of Indianapolis. In
December 1993, we executed a contract for $1,250,000 with a local motel
management company. Though our contract expired in March 1994, negotiations
have continued and may result in a summer 1994 closing in the
$1,250,000-$1,300,000 range.
Cash flow from the property is projected to be approximately $120,000
in 1994. Because the motel is treated as a land investment, any improvements
are expensed rather than capitalized. Parkway's book basis in the property at
6-30-94 is $744,100.
<PAGE> 70
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
GOLF PROPERTIES, INC.
HIGHLANDS FALLS, NORTH CAROLINA
JUNE 30, 1994
______________________________________________
Parkway owns 65.45% of Golf Properties, Inc. (GPI), a North Carolina
Corporation formed to develop the Highlands Falls Country Club Community. The
remaining 34.55% of GPI is owned by Citizens Growth Properties. GPI's
principal assets are 46 single family lots and 87 equity memberships in
Highlands Falls Country Club, a private equity Country Club. Security Federal
Savings and Loan has either a 25% or 50% undivided interest in 26 of the 46
lots as follows:
<S> <C>
25% undivided interest 17
50% undivided interest 9
--
26
</TABLE>
GPI has a 100% undivided interest in the remaining 20 lots. The total
expected value of the lots and memberships at 6/30/94 is $3,228,000. The
projected cash flow through 1997 is $2,295,000. Parkway's share of this cash
flow will be $1,502,000. The book value at June 30, 1994 is $730,889.
<PAGE> 71
<TABLE>
GPI
HIGHLANDS 1 AT COUNTRY CLUB
NET PRESENT OF LAND INVESTMENT
3/31/94
<CAPTION>
LOT SELLING SECURITY/BAUK NLI YEAR OF SALE
DESCRIPTION PRICE SHARE CPI 1994 1995 1996 1997 TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 A-13 25,000 25,000 0
2 A-14 25,000 25,000 0
3 A-19 25,000 25,000 0
4 A-20 25,000 25,000 0
5 B-1/2 51,000 51,000 51,000 51,000
6 C-2 121,000 60,500 60,500 60,500 60,500
7 D-7 26,000 26,000 26,000 26,000
8 F-4 40,000 40,000 40,000 40,000
9 F-5/6 50,000 50,000 50,000 50,000
10 F-14/15 60,000 60,000 60,000 60,000
11 F-26 32,000 32,000 0
12 G-4/5 25,000 25,000 25,000 25,000
13 G-6 20,000 20,000 0
14 G-7 21,000 21,000 0
15 G-8 15,000 15,000 0
16 G-9 21,000 21,000 0
17 L-6 25,000 25,000 25,000 25,000
18 L-7 40,000 40,000 40,000 40,000
19 M-1 60,000 60,000 60,000 60,000
20 M-4 36,000 36,000 0
21 G-10 19,000 4,750 14,250 0
22 G-11 20,000 5,000 15,000 0
23 G-12 21,000 5,250 15,750 15,750 15,750
24 G-13 24,000 6,000 18,000 18,000 18,000
25 G-14 27,000 6,750 20,250 0
26 G-15 34,000 8,500 25,500 25,500 25,500
27 G-16 38,000 9,500 28,500 28,500 28,500
28 G-22 55,000 13,750 41,250 41,250 41,250
29 G-23 63,000 15,750 47,250 47,250 47,250
30 G-25 65,000 16,250 48,750 48,750 48,750
31 G-27 77,000 19,250 57,750 57,750 57,750
32 G-29 85,000 21,250 63,750 0
33 K-5 75,000 18,750 56,250 56,250 56,250
34 H-4 85,000 21,250 63,750 63,750 63,750
35 H-5 85,000 21,250 63,750 63,750 63,750
36 H-8 85,000 21,250 63,750 63,750 63,750
37 H-12 115,000 28,750 86,250 86,250 86,250
38 J-2 15,000 7,500 7,500 0
39 J-3 15,000 7,500 7,500 0
40 J-4 15,000 7,500 7,500 0
41 J-5 26,000 13,000 13,000 0
42 J-6 35,000 17,500 17,500 0
43 J-7/8 43,000 21,500 21,500 21,500 21,500
44 C-1 56,000 28,000 28,000 28,000 28,000
45 C-7 89,000 44,500 44,500 44,500 44,500
46 C-9 70,000 35,000 35,000 35,000 35,000
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,080,000 485,750 1,594,250 493,750 362,000 235,750 91,500 1,183,000
SELLING COST @ 1.1% (63,148) (207,253) (64,188) (47,000) (30,648) (11,895) (153,799)
OPERATING EXPENSES (17,644) (175,000) (75,000) (50,000) (30,000) (20,000) (175,000)
NEGOTIATION MARGIN - 10% (48,575) (159,425) (24,688) (18,100) (11,788) (4,575) (59,150)
---------- ---------- ---------- ---------- ---------- ----------
356,384 1,052,573 329,875 246,840 163,315 55,030 795,060
EQUITY MEM - 87 2,175,000 0 2,175,000 375,000 375,000 375,000 375,000 1,500,000
(29 OPTIONED/58 AVAL ---------- ---------- ---------- ---------- ---------- ---------- ----------
ASSUME SELL 60 @ $25,000) 356,384 3,227,573 704,875 621,840 538,315 430,030 2,295,060
BOOK VALUE AT 03/31/94 1,232,105 1,232,105
<CAPTION>
NPV @ 30% NPV @ 15%
<S> <C> <C>
493,412 612,340
EQUITY MEM - 87 812,340 1,070,617
(29 OPTIONED/58 AVAL ---------- ----------
ASSUME SELL 60 @ $25,000) 1,305,752 1,682,957
BOOK VALUE AT 03/31/94 1,232,105 1,232,105
</TABLE>
<PAGE> 72
THE PARKWAY COMPANY
NET REALIZABLE VALUE
GILBERT ROAD LAND
ATLANTA, GEORGIA
JUNE 30, 1994
________________________________________
Gilbert Road land is a 53-acre parcel, zoned Industrial, in Clayton
County, Georgia, located near the Hartsfield International Airport in southeast
Atlanta.
This tract is presently being marketed by an Atlanta real estate
broker. Approximately one-third of the tract lies in the floodplain. A sale
of this tract at $15,000 times 30 acres and $10,000 times the 23 acres of flood
plain within the next 24 months would realize gross proceeds of $680,000 less
closing costs.
<TABLE>
<S> <C>
Gross Sales Price $680,000
Costs of Sale (at 8%) (54,400)
Less Cost to Carry (30,000)
-------
Net Sales Proceeds $595,600
Net Realizable Value 595,600
Book Basis (6-30-94) $187,432
</TABLE>
Note from SGR: While I support the analytical work above, I have reduced this
NRV to its book basis due to the extraordinarily long holding
period.
<PAGE> 73
THE PARKWAY COMPANY
NET REALIZABLE VALUE
FRIDKIN-KAUFMAN
COMMERCIAL PARCEL - 5.449 ACRES
INTERSTATE 45-N
HOUSTON, TEXAS
JUNE 30, 1994
______________________________________
This property was originally sold in December 1983 for a price of
$332,326 with a down payment of $66,466. The borrower defaulted on our first
mortgage, and, in April 1988, we foreclosed on the mortgage taking the property
back.
We currently have a verbal agreement to sell the land for $118,700
($.50 per foot). Preparation of the written contract is in progress. Closing
costs are estimated to be $13,000. The net sales price is then $105,700 or
roughly equivalent to our book basis.
<TABLE>
<S> <C>
Gross Sales Price $118,700
Costs of Sale (13,000)
---------
Net Sales Proceeds $105,700
Book Basis (6-30-94) $105,496
</TABLE>
<PAGE> 74
<TABLE>
THE PARKWAY COMPANY
NET REALIZABLE VALUE
KELLY LAND
ATLANTA, GEORGIA
JUNE 30, 1994
______________________________________
Kelly Land consists of 22.7 acres of wooded property located on
Hillandale Road, near I-20 east of Atlanta, Georgia. This property is zoned
multi-family (12 units per acre) and is currently under contract for $375,160
(approximately $16,500).
The sale of the property is estimated to close by September 30, 1994.
<S> <C>
Gross Sales Price $375,160
Costs of Sale @ 5% (18,758)
Less Cost to Carry ( 5,000)
-------
Net Sales Proceeds $351,402
========
Net Realizable Value $351,402
Book Basis (6-30-94) $342,877
</TABLE>
<PAGE> 75
THE PARKWAY COMPANY
NET REALIZABLE VALUE
SUGAR CREEK COMMERCIAL LAND
24.0623 ACRES
HOUSTON, TEXAS
JUNE 30, 1994
COMPARABLE SALES APPROACH OR MARKET APPROACH
Since this is land and can not be valued on the income approach
without very complicated modeling and assumptions, I have chosen the
"comparable sales" method as the most appropriate method to determine value.
In a true economic model, a time factor would have to be used to discount the
sales prices to present value since 24 acres would be extremely difficult to
sell in one cash transaction.
The attached map shows the location of known and pending sales.
<TABLE>
<CAPTION>
SITE SALE DATE PRICE PER S.F. ZONING COMMENTS
---- --------- -------------- ------ --------
<S> <C> <C> <C> <C> <C>
1. Sugar Creek Residential 1993 $ 3.44 O-1 Entry to SCC
2. Wal-Mart/I-59 1992 $ 6.65 O/B-1 4.6 acres
3. Q Club 1994 $ 8.00 O/B-1 5.5 acres
4. Southern National 1994 $10.00 O/B-1
5. Shoney's 1994 $ 6.00 O/B-1 3.2 acres
6. What-A-Burger March 1994 $ 4.22 O-1 2.885 acres/SCC
7. MSK June 1994 $ 3.43 B-1 Sale Pending
8. Sugarland Triangle --- $ 6.23 ----- Appraisal
</TABLE>
Note that the range is very great. All sales are for O-1 or B-1 zoned
property which is of comparable value. The zoning of the Sugar Creek property
is also O-1 & B-1 which allows for residential, light commercial, cafeterias
and professional shops.
We have the property listed with a knowledgeable commercial broker for
a price of $5.00 per square foot. No sales have taken place at this level yet.
Our book basis is $3.43 per square foot. I believe that if a forced sale were
required we could recover our book basis. Sales at higher levels would
probably be smaller parcels with market rate seller financing and take several
years for a full liquidate.
Best estimate of Net Realizable Value: $4.22 PSF on 15.41 acres or $2,833,083
$3.43 PSF on 8.65 acres or $1,292,448
TOTAL NRV: $4,125,531
==========
TOTAL BOOK BASIS: $3,336,840
==========
<PAGE> 76
THE PARKWAY COMPANY
NET REALIZABLE VALUE
Big Run Land
6.047 Acres
Columbus, Ohio
June 30, 1994
_______________________________________
Parkway has a 70.687% undivided tenant in common interest in a 6.047
acre parcel of undeveloped land which is zoned for commercial use. The
property is located on the southwest side of Columbus at the intersection of
Georgesville Road and I-270.
The Glimcher Company and Solove Development, both local developers,
have placed 70 and 40 acre tracts under contract near our site. Glimcher's 70
acres are across I-270 to the west and Solove's 40 acres are to the south,
though both contracts are subject to successful zoning negotiations currently
underway.
Because of its location in relation to the I-270 interchange, we
continue to believe that the 6.047 acres will sell for a commercial use at a
price in the range of $180,000-$200,000.
<TABLE>
<S> <C>
Sales Price $180,000
Less Costs of Sale
Commission (10,800)
Survey/Title/Misc. (4,000)
--------
Net Proceeds $165,200
Parkway's Share (70.687%) $117,000
Book Basis (6-30-94) $62,285
Allowance Required -0-
</TABLE>
<PAGE> 77
THE PARKWAY COMPANY
NET REALIZABLE VALUE
EAST ALBANY INDUSTRIAL LAND
ALBANY, GEORGIA
JUNE 30, 1994
________________________________________
East Albany Industrial land is composed of approximately 12.725 acres
of property located in a small industrial park in Albany, Georgia.
The tracts of land range in price from $9,500 - $11,000 per acre with
total projected gross sales of approximately $130,000. The tracts vary in size
from one to five and one-half acres. Two lots, averaging just under one acre
each, sold in June 1989 for a total cash price of $15,500, generating a gain of
$7,200. A small lot closed in July at $6,500, averaging $4,650 per acre and
showing a small gain.
Based on a contract of sale of $10,000 for .90 acres, we believe this
gross sales price is justified at $130,000. Therefore, the net realizable
value remains at $112,200.
A local broker handles this property, and we do have signage on each
separate tract. Replatting was completed to reduce the size of the individual
parcels within one tract. We anticipate a holding period of three years to
complete the sale of all of the parcels.
<TABLE>
<S> <C>
Gross Sales Price $130,000
Costs of Sale (10%) (13,000)
Cost to Carry (4,800)
--------
Net Sales Proceeds $112,220
Net Realizable Value $112,220
Book Basis (6-30-94) $ 41,392
========
</TABLE>
<PAGE> 78
THE PARKWAY COMPANY
NET REALIZABLE VALUE
BULLARD ROAD LAND
80 ACRES
NEW ORLEANS, LOUISIANA
JUNE 30, 1994
COMPARABLE SALES APPROACH OR MARKET APPROACH
Since this is land and can not be valued on the income approach or
cost approach without very complicated modeling and assumptions, I have chosen
the "comparable sales" method as the most appropriate method to determine
value. In a true economic model, a time factor would have to be used to
discount the sales prices to present value since 80 acres would be extremely
difficult to sell in one cash sale.
The attached map shows the location of known sales and capitalized
leases.
<TABLE>
<CAPTION>
SITE SALE DATE PRICE PER S.F. ZONING COMMENTS
---- --------- -------------- ------ --------
<S> <C> <C> <C> <C>
1. Insurance Co., Bullard Road 1992 $12.00 C-2 Build to suit
2. K & B Drugs, Bullard Road 1993 $ 5.50 C-2 Most Comparable
3. Burger King, Bullard Road 1990 $10.00 C-2 Rezoned
4. Leader Buick, I-10/Watson 1993 $ 5.50 C-2 Pending
5. Toys-R-Us, I-10/Bullard 1993 $10.00 C-2 Lease
6. Pep Boys, I-10/Bullard 1993 $10.00 C-2 Lease
7. Terry White, I-10/510 1991 $ .92 C-2 LFI sold
8. Boh Bros., I-10/510 1992 $ .52 C-2 LFI sold
</TABLE>
Note that the range is very great. The two LFI sales are considered
distress sales. All other sales are for C-2 zoned property which is of higher
value because of less restrictions. The zoning of the Bullard Road property is
RO/B2 which allows for residential, light commercial, cafeterias and
professional shops. There is very little data available on sales of RO/B2
land. The company is presently attempting to rezone the property to C-1 or SC
which will allow large retailers to use the land.
We have the property listed with a knowledgeable commercial broker for
a price of $3.25 per square foot. No sales have taken place at this level.
Our book basis is $1.09 per square foot or $3,798,995. I believe that if a
forced sale were required we could recover our book basis. Sales at higher
levels would probably be smaller parcels with market rate seller financing and
take several years for a full liquidate.
Best estimate of Net Realizable Value: $1.50 per square foot or
$5,227,000.
<PAGE> 79
THE PARKWAY COMPANY
NET REALIZABLE VALUE
MESQUITE CR - COMMUNITY RETAIL
2.11 ACRES
MESQUITE (DALLAS), TEXAS
JUNE 30, 1994
________________________________
This tract (91,912 square feet) is located in the southeast quadrant
of the City of Mesquite, an eastern suburb of Dallas, Texas. Although Dallas
has escaped the severest effects of the Texas economy malaise, real estate
activity has declined somewhat. In addition, Mesquite does not lie within one
of the major Dallas growth corridors, and there is a vast supply of vacant
land.
Because of the vast supply of vacant land and since there has not been
any market activity in this area during the past year, we are reducing the list
price to $1.00 per square foot to encourage an offer.
Property taxes in 1993 were approximately $1,700 and are not expected
to increase appreciably in the near future. It should be noted that Parkway
has a 90% fee simple interest in the property.
<TABLE>
<S> <C>
Estimated Sales Price $ 91,911
Less Property Taxes (3 years) 5,100
Less Cost of Sale (8%) 7,352
--------
Net Proceeds $ 79,459
Net Realizable Value $ 79,459
Parkway's 90% = Net Realizable Value $ 71,513
Net Book Basis (6-30-94) $ 3,118
========
</TABLE>
<PAGE> 80
<TABLE>
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
PLANTATION VILLAGE SHOPPING CENTER
57,525 Net Rentable Square Feet
Lake Jackson, TX
August 1, 1994
* Scheduled gross annual rental income: $260,919
Projected Expenses:
<S> <C>
Management < 12,000>
Maintenance/Repairs < 15,000>
Taxes/Insurance < 39,950>
Utilities < 7,200>
---------
Net Cash Flow $190,769
=========
Capitalizing NOI - 11% - $1,734,263
NRV 6/30/94: $1,734,263
** Projected Gross Income: $ 380,000
Expenses:
Management 12,000
Maintenance/Repairs 18,000
Improvements (amortized 3 yrs) 52,750
Taxes 35,920
Utilities 9,000
-----------
Net Cash Flow $ 252,330
===========
Capitalizing NOI - 11% $2,293,909
NRV 6/30/94 (projected): $2,293,909
Book Basis 6/30/94: $1,162,469
Allowance Required: $0
Appraised on April 5, 1993 for $2,100,000.
* Assumes no new leases
** Assumes an additional 20,000 sq. ft. being leased
</TABLE>
<PAGE> 81
PARKWAY TEXAS CORPORATION
COMMERCIAL - INCOME PROPERTY
PLANTATION VILLAGE SHOPPING CENTER
Lake Jackson, Brazoria County, Texas
PROPERTY DESCRIPTION: 57,525 square foot neighborhood shopping center
located on 5 acres. The concrete tilt-wall center
was built in 1985. The tenant mix consists of 2
restaurants, a video rental store, Avis Rent Car,
tanning, hair and beauty supply companies, insurance
and real estate, as well as a pool supply and copy
company. The center is approximately 60% leased.
LOCATION: Southwest corner of This Way and State Highway 332 in Lake
Jackson, Texas. The center is approximately 55 miles south
of Houston.
COMMENTS: Plantation Village Shopping Center serves the entire
Lake Jackson area. Dow Chemical and other
petro/chemical companies dominate the Lake Jackson
and Brazoria County area. Plantation Village is
within a 3 mile radius of nearly 7,000 single family
homes and over 1,600 apartments. Plantation Village
sits at the crossroads of the new downtown business
district in Lake Jackson.
<TABLE>
<S> <C> <C>
TAX RATE: Brazoria County .54
Brazoria ISD 1.26
City of Lake Jackson .36
Brazosport College .07
----
$2.23 per $100 of value
</TABLE>
FLOOD PLAIN: The shopping center is located outside the 500 year flood
plain.
SALES PRICE: $2,350,000 or $40.85 per square foot
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
___________________________________________________________________________
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 82
[FIGURE #1]
[FIGURE #2]
<PAGE> 83
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
SILVER HOLLOW TOWNHOMES
15 Townhomes
Houston, TX
August 1, 1994
These 15 townhomes are located in west Houston. These brick/wood veneer,
2-story townhomes have 2 bedrooms, 2 1/2 baths and average 1,450 square feet
per unit.
The "comparable sales" approach was used to best define the values. In the
last 12 months, PTC sold 8 townhouse units at Silver Hollow. The average sales
price was $64,812.
<TABLE>
<S> <C>
Sales Price: $64,750
Less Sales Costs:
Commission < 3,885>
Taxes < 900>
Closing/Misc < 1,000>
Repairs < 2,000>
-------
Net Proceeds $56,865 x 15 townhomes = $852,975
NRV 6/30/94: $852,975
Book Basis 6/30/94: $435,054
Allowance Required: $0
</TABLE>
These units were appraised on March 20, 1993:
<TABLE>
<CAPTION>
UNIT NUMBER APPRAISED UNIT NUMBER APPRAISED
VALUE VALUE
<S> <C> <C> <C>
714B $63,000 716D $63,000
714C $60,000 716E $60,000
712B $63,000 716F $60,000
712C $60,000 716G $60,000
712D $63,000 720B $63,000
712E $60,000 720E $60,000
712G $60,000 720G $60,000
716B $63,000
</TABLE>
8 UNITS SOLD OVER PAST 12 MONTHS
- --------------------------------
<TABLE>
<CAPTION>
UNIT SOLD DATE SOLD SALES PRICE NET PROCEEDS
<S> <C> <C> <C>
714A 9/2/94 $64,500 $ 57,272
714I 9/9/93 63,000 57,306
714F 10/20/93 64,000 12,320 cash
45,400 note
716A 12/15/93 65,500 58,860
712I 1/20/94 66,500 59,613
716H 1/13/94 63,000 16,212 cash
38,000 note
720D 2/28/94 65,000 60,748
720H 6/17/94 67,000 61,048
</TABLE>
<PAGE> 84
PARKWAY TEXAS CORPORATION
RESIDENTIAL - TOWNHOMES
SUMMER HILL TOWNHOMES
HOUSTON, HARRIS COUNTY, TEXAS
(KEY MAP 488H)
PROPERTY DESCRIPTION: 15 brick/wood veneer, 2-story townhomes.
Each townhouse has 2 bedrooms, 2 1/2 baths
and averages 1,450 square feet. The
entire townhome project is over 230 units.
The units also have fireplaces, 2 car
attached garages, microwave ovens, marble
vanities and whirlpool baths. The
property is governed by a Homeowners
Association (HOA).
LOCATION: These units are located on Country Place Drive just
north of Memorial Drive in west Houston. Dairy
Ashford, a major thoroughfare, is 1.5 miles west of
project and Interstate 10 is 1.25 miles to the north.
SCHOOL DISTRICT: Spring Branch ISD (within walking distance)
TAX RATE: City of Houston .63
Spring Branch ISD 1.78
Harris County .60
----
$3.01 per $100 of value
UTILITIES: Telephone: Southwestern Bell
Electric: Houston Lighting & Power
Water & Sewer: City of Houston
FLOOD PLAIN: These units are not located within the 100 year
flood plain according to the latest FEMA maps.
SALES PRICE: $64,500 to $67,500 per unit
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 85
[FIGURE #3]
[FIGURE #4]
<PAGE> 86
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
WESTOFFICE BUILDING
20,900 Net Rentable Square Feet
Houston, TX
August 1, 1994
Gross Annual Rental Income: $129,000*
Expenses:
<TABLE>
<S> <C>
Taxes $ 11,233
Insurance 755
Misc/Maintenance 9,000
---------
Net Cash Flow $ 108,012
=========
Capitalize @ 11% 960,336
Less Costs to Sell:
Commission < 57,620>
Misc/Closing < 28,810>
---------
Net Proceeds $ 873,906
=========
NRV 6/30/94: $ 873,906
Book Basis 6/30/94: $ 443,578
Allowance Required: $0
* 100% occupied lease matures 1/15/95 @ $.51 psf.
** renewal being negotiated at $.52 to $.55 psf.
Appraised for $750,000 on April 2, 1993.
</TABLE>
<PAGE> 87
PARKWAY TEXAS CORPORATION
COMMERCIAL INCOME PROPERTY
WESTOFFICE BUILDING
HOUSTON, HARRIS COUNTY, TEXAS
(KEY MAP 529D)
PROPERTY DESCRIPTION: A one story, brick/veneer research and development
facility containing 20,900 square feet of net rentable
space. The building sits on a 1.5 acre tract at the
end of a cul-de-sac.
LOCATION: The building is located at the end of Westoffice Drive
approximately 1/4 mile east of Beltway 8.
This area is known as Westchase.
BUILDING USE: This building enjoys a tremendous location with its easy
access to Beltway 8. The building has 8,000 square feet of
air conditioned office space with another 12,900 square feet
of warehouse. Excellent for a single use tenant in the "light"
manufacturing business.
<TABLE>
<S> <C> <C>
TAX RATE: City of Houston .63
Alief ISD 1.79
Harris County .60
----
$3.02 per $100 of value
</TABLE>
UTILITIES: Telephone: Southwestern Bell
Electric: Houston Lighting & Power
Natural Gas: Entex
Water & Sewer: City of Houston
FLOOD PLAIN: The property is not located within the 100 year flood plain
according to the latest FEMA map.
SALES PRICE: $960,000 or $45.93 per square foot
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
______________________________________________________________________________
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 88
[FIGURE #5]
[FIGURE #6]
<PAGE> 89
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
SOUTHFORK TOWNHOMES/CONDOMINIUMS
5 Townhomes & 6 Condominiums
Corpus Christi, TX
August 1, 1994
These 5 townhomes and 6 condominiums are part of a 275 +/- planned unit
development. The project is located in southeast Corpus Christi and has
excellent access to the Naval Air Station, as well as a recently developed
hospital and medical center complex.
There are not any sale comparables available so the "income approach" was
used to confirm the value.
<TABLE>
<S> <C>
Annual Rental Income: $ 69,000
Expenses:
Management < 4,800>
Vacancy Factor - 5% < 3,700>
Taxes <13,418>
Maintenance/Repairs < 8,250>
--------
Net Cash Flow $ 38,832
========
Capitalizing NOI - 11% $353,018
Less Costs to Sell:
Commission <21,181>
Closing Costs < 3,500>
--------
$328,337
========
NRV 6/30/94: $328,337
Book Basis 6/30/94: $151,781
Allowance Required: $0
</TABLE>
<PAGE> 90
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
GREENBRIAR COLONY
7 Residential Houses
Houston, TX
August 1, 1994
These 7 one-story, brick/wood veneer, single-family detached houses are located
in the north central part of Houston approximately 3 miles southwest of
Houston's Intercontinental Airport. Presently, 1 house is sold for $46,500,
4 are leased at $635 per month and 2 are on the market for $49,000 and $51,000.
The "comparable sales" approach is used supporting the values for these 7 very
similar properties.
1934 Jeffers - sold $45,000, closed 11/24/93, net proceeds totalled $41,943
- ------------ (cash + note)
1931 Jeffers - sold $46,500, due to close on 8/5/94.
- ------------
The remaining 7 properties are very similar (3 bedroom/2 bath/2 car
attached garage).
<TABLE>
<S> <C>
Sales Price: $46,500
Less Sales Costs:
Commission < 2,900>
Repairs < 3,400>
Closing Costs/Taxes < 1,800>
--------
Net Proceeds $38,510 x 7 houses = $269,570
NRV 6/30/94: $269,570
Book Basis 6/30/94: $140,591
Allowance Required: $0
</TABLE>
<PAGE> 91
PARKWAY TEXAS CORPORATION
IMPROVED LAND - COMMERCIAL
SUGARLAND TRIANGLE
SUGARLAND, FORT BEND COUNTY, TEXAS
(KEY MAP 368M & 569J)
PROPERTY DESCRIPTION: Nine (9) individual tracts of vacant land:
<TABLE>
<S> <C> <C> <C>
Tract A 11.50 acres Tract F .97 acres
Tract B 4.63 acres Tract G .94 acres
Tract C 5.46 acres Tract I 2.44 acres
Tract D 1.48 acres Tract J 1.43 acres
Tract E .99 acres
</TABLE>
LOCATION: Sugarland Triangle is bounded by US Hwy. 59 to
the south, US Hwy. 90A to the north and
Sugar Creek Boulevard to the west within the
City of Sugarland.
LAND USE: These nine (9) tracts provide the best opportunity
in Fort Bend County for a multitude of commercial
uses including a large retail center, offices,
motels, and restaurants.
TAX RATE: Fort Bend County .66
Fort Bend ISD .625
City of Sugarland .50
County Education District .90
----
$2.69 per $100 of value
UTILITIES: Telephone: Sugarland Telephone Company
Electric: Houston Lighting & Power
Natural Gas: Entex
Water & Sanitary Sewer: City of Sugarland
FLOOD PLAIN: These tracts are located within an area of
minimal flood hazards according to the flood
insurance rate maps for Fort Bend County dated
September 1992.
SALES PRICE: $7,000,000 or $5.50 per square foot
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
______________________________________________________________________________
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 92
[FIGURE #7]
[FIGURE #8]
<PAGE> 93
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
SUGARLAND TRIANGLE
9 Commercial Tracts Totalling 29.27 acres
Sugarland, Texas
August 1, 1994
Parkway Texas presently owns a 50% undivided interest in 9 tracts of land
bounded by Hwy 59 South, US 90A and SugarCreek Blvd. The other 50% owner is
the RTC. We have entered into a contract to purchase the RTC's interest for
$1,500,000 or $2.37 psf. We anticipate closing on this purchase before
September 15, 1994.
There are several interested developers wanting to purchase the entire
29.27 acres for prices ranging from $4.45 psf to $5.50 psf. These tracts have
been zoned B-1 or O-1 by the City of Sugarland. The Sugarland area has enjoyed
a tremendous growth rate in the last 36 months. PTC management feels like the
Sugarland Triangle tract is very valuable once PTC owns 100% of it - it's real
value will be maximized.
The comparable sales in the area on smaller tracts range $3.50 to $8.00
psf. The book basis as of June 30, 1994 is $1,777,684 or $2.78 psf. When you
combine the present book value with the $2.37 purchase price of the RTC's
interest, you end up with a total basis in the land of approximately $2.58 psf.
SALES PROFORMA - 29.27 acres
<TABLE>
<S> <C>
Sales Price: $6,900,000
Less Sales Costs:
Commission < 276,420>
Title Policy < 37,500>
Survey/Closing < 15,000>
Legal/misc < 20,000>
Taxes < 90,000>
----------
Gross Proceeds $6,461,080
Less Internal Costs:
Carrying Cost < 100,000>
RTC Purchase <1,500,000>
PTC Book Basis <1,777,684>
----------
Projected Net Proceeds: $3,083,396
==========
NRV 6/30/94: $3,230,540
Book Basis 6-30-94 1,777,684
Allowance Required: $0
</TABLE>
On March 20, 1993, these 9 tracts appraised for $8,000,000 or $6.35 psf.
<PAGE> 94
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
STONEHENGE - LAKE SECTION
55 Patio Home Lots
Houston, TX
August 1, 1994
This patio home subdivision is located in west Houston. The development
originally consisted of 163 patio home lots. Parkway Texas owns the remaining
55 lots.
These 55 lots are under contract to David Weekley Homes via a lot
option contract. Since May 1993, when the option contract began, Weekley has
purchased 34 lots and another 5 lots have been sold by PTC management to
individuals. The average sales price on the remaining 55 lots is approximately
$14,250 or $783,750.
<TABLE>
<S> <C>
Sales Price: $783,750
Less Sales Costs:
Commission 2.5% < 19,594>
Water Tap Fees < 22,200>
HOA Dues < 15,000>
Real Estate Taxes < 17,500>
Closing/Misc/Mowing < 2,500>
--------
Net Proceeds $707,156
========
Book Basis 6/30/94: $413,155
Allowance Required: $0
</TABLE>
<PAGE> 95
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
GREENBUSCH LAND
162 Acres
Katy, TX
August 1, 1994
This 162 acre rectangular, underdeveloped tract is located 27 miles west of
downtown Houston and 2.5 miles south of Katy, Texas. The tract has 2/3 mile of
frontage on one road and 4/10 mile of frontage on another. On March 6, 1993,
the property was appraised for $1,000,000 by Property Analyst Inc.
The adjacent developed subdivision is approximately 95% built out. The
houses in that subdivision range in price from $135,000-$220,000. The typical
lot size in Pin Oak is 65 x 115.
Assuming Greenbusch could be developed in 3.5 lots per acre, that would
mean approximately 565 residential lots. The gross retail value of those lots
at an average price of $17,250 per lot would be $9,746,250.
LAND SALE PROFORMA
<TABLE>
<S> <C>
Sale of 162 acres @ $6,000 per acre $ 972,000
Development Costs - 30,000 per acre 4,860,000
Finance Costs 1,500,000
Developer Fee/Misc/Taxes 500,000
----------
Total Cost $7,832,000
----------
Retail Value $ 9,746,250
Less Costs < 7,832,000>
Less Misc Expense < 150,000>
-----------
Net Profits $ 1,764,250
===========
</TABLE>
Another plan on Greenbusch is to divide the tract into 30, 4 acre tracts and
market these ranch homesites for $75,000 per tract. 30 lots x $75,000 =
$2,250,000.
<TABLE>
<S> <C>
Land at $6,000 per acre $ 972,000
Development costs:
Road/engineering/financing 410,000
Central water well & lines 60,000
Landscaping/trees 90,000
Gated entrance(s) 60,000
Commissions/developer fees 100,000
----------
$1,692,000
</TABLE>
<PAGE> 96
<TABLE>
<S> <C>
Gross Retail Value $2,250,000
Less Costs < 1,692,000>
----------
Net Profits $ 558,000
==========
Sell 162 acres at $6,000 per acre $ 972,000
Less Costs of Sale
Commission < 48,600>
Taxes < 17,490>
Misc Costs/Survey < 10,000>
----------
Net Proceeds $ 895,910
==========
NRV 6/30/94: $895,910
Book Basis 6/30/94: $493,684
Allowance Required: $0
</TABLE>
<PAGE> 97
PARKWAY TEXAS CORPORATION
UNIMPROVED LAND - RESIDENTIAL
GREEN-BUSCH LAND
KATY, FORT BEND COUNTY, TEXAS
(KEY MAP 484M)
PROPERTY DESCRIPTION: This 162.539 acre rectangular tract is basically flat
and level. Road Frontage: 3,547 ft. on Green-Busch
Road and 2,010 ft. on Roesner Road.
LOCATION: The north corner of Green-Busch Road and Roesner
Road about 1.5 miles south of Interstate 10.
This tract is located approximately 27 miles west
of Downtown Houston and 2.6 miles south of Katy,
Texas.
LAND USE: Residential development - 350 lot development or
20-25 larger homesites (4-6 acres).
SCHOOL DISTRICT: Katy ISD
<TABLE>
<S> <C> <C>
TAX RATE: Fort Bend County .66
Katy ISD .78
County Education District .91
----
$2.35 per $100 of value
</TABLE>
UTILITIES: Telephone: Southwestern Bell
Electric: Houston Lighting & Power
Natural Gas: Entex
Water & Sanitary Sewer: None
FLOOD PLAIN: About 10% of the subject property is within the
areas inundated by the 100 year flood plain.
SALES PRICE: $972,000 or $6,000 per acre
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
______________________________________________________________________________
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 98
[FIGURE #9]
[FIGURE #10]
<PAGE> 99
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
COOKS LANE LAND
19.11 acres
Fort Worth, TX
August 1, 1994
This 19.11 acre, rectangular shaped tract is located on the east side of Cooks
Lane and Anderson Road in eastern Fort Worth. This tracts enjoys excellent
access to I-30 which connects Fort Worth, Arlington and Dallas.
The demand for land in the immediate area has been very slow in recent
years, however, because of its location and close proximity to Arlington, we
feel like the 19.11 acres will sell for $.25 to $.30 psf.
<TABLE>
<S> <C>
Sales Price: $208,107 or $.25 psf
Less Sales Costs:
Commission < 12,486>
Taxes < 14,215>
Survey/Title/Misc. < 6,500>
--------
Net Proceeds: $175,906
This property appraised for $500,000 on April 1, 1993.
NRV 6/30/94: $175,906
Book Basis 6/30/94: $ 84,580
Allowance Required: $0
</TABLE>
<PAGE> 100
PARKWAY TEXAS CORPORATION
COMMERCIAL - LAND
COOKS LANE
FORT WORTH, TARRANT COUNTY, TEXAS
(KEY MAP 67W)
PROPERTY DESCRIPTION: 19.011 acre wooded, rolling, rectangular tract. It has
682.76 feet of frontage on Cooks Lane.
LOCATION: Cooks Lane at Interstate 30, Fort Worth, Texas.
The property lies within the city limits of
Fort Worth and is approximately 10 miles east of
Fort Worth's central business district.
LAND USE: This tract could be used as a commercial or
multi-family development. The tremendous
advantage about this tract is its immediate
access to I-30 which connects Dallas and
Fort Worth.
SCHOOL DISTRICT: Fort Worth ISD
<TABLE>
<S> <C> <C>
TAX RATE: Tarrant County 1.51
Fort Worth ISD .45
City of Fort Worth .95
----
$2.91 per $100 of value
</TABLE>
UTILITIES: Electric: Texas Electric Service
Water & Sanitary Sewer: City of Fort Worth
FLOOD PLAIN: The property is not located within the 100 year
flood plain according to the latest FEMA maps.
SALES PRICE: $250,000 or $13,150 per acre
FOR MORE INFORMATION, CONTACT: PARKWAY TEXAS CORPORATION
1616 SOUTH VOSS, SUITE 830
HOUSTON, TEXAS 77057
(713) 952-7073
_____________________________________________________________________________
No representation of warranty is made or to be implied as to the present or
future accuracy of the completeness of these assumptions or as to the results
of reliance thereon. This offering is subject to prior sale, corrections,
errors, omissions, change of price or other conditions, or withdrawal from the
market without prior notice.
<PAGE> 101
[FIGURE #11]
[FIGURE #12]
<PAGE> 102
THE PARKWAY COMPANY
NET REALIZABLE VALUE
PATEL-COMMERCE
DOLLARWISE INN
COMMERCE, GEORGIA
JUNE 30, 1994
_________________________________
This loan is secured by a 48-unit Dollarwise Inn located in Commerce,
Georgia. The loan is current with no history of delinquency. The property was
inspected in October 1993 and found to be in good condition.
<TABLE>
<S> <C> <C>
Loan Balance (6/1/94) $88,516 $1,844/unit
Book Basis (6/1/94) $82,209
Gross Insured Amount $800,000
Assessed Fair Market Value $539,320 $11,235/unit
(from 1993 Real Estate Taxes)
$539,320 Fair Market Value
88,516 Loan Balance
--------
$450,814 Excess Value
NOI estimate $53,000
Capitalized at 13.5% $369,000
Debt service $32,424
Debt service coverage 1.65
</TABLE>
<PAGE> 103
THE PARKWAY COMPANY
NET REALIZABLE VALUE
PATEL-MACON
RED CARPET INN
MACON, GEORGIA
JUNE 30, 1994
________________________________
This loan is secured by a 50-unit Red Carpet Inn located in Macon,
Georgia and a personal guaranty from the mortgagors. The mortgage payments are
received by the end of each month due, but Management does not consider this
delinquency to be a problem. The loan is considered secure. The property was
inspected in October 1993 and found to be in good condition.
<TABLE>
<S> <C> <C>
Loan Balance (6/30/94) $ 222,893 ($4,457/unit)
Book Basis (6/30/94) $ 187,901
Gross Insured Amount $1,305,300
Assessed Fair Market Value $292,850 ($5,857/unit)
(from 1993 Real Estate Taxes)
$292,850 Fair Market Value
222,893 Loan Balance
-------
$ 69,957 Excess Value
NOI estimate $ 57,300
Capitalized at 13.5% $ 398,978
Debt service $ 35,400
Debt service coverage 1.62
</TABLE>
<PAGE> 104
THE PARKWAY COMPANY
NET REALIZABLE VALUE
AMERICAN INN WEST
5630 CRAWFORDSVILLE ROAD
INDIANAPOLIS, INDIANA
JUNE 30, 1994
________________________________
This loan is secured by an 81-unit motel Inn located in Indianapolis,
Indiana. The loan is current with no history of delinquency. The property was
inspected in February 1993 and found to be in satisfactory condition. Net
operating income for American Inn West was $24,355 for the first three months
of 1994. The second half of the year historically is better than the first
half for motels in Indianapolis. To be competitive, multiplying the first
quarters with results by four (4) would produce annualized net operating income
of $97,420.
<TABLE>
<S> <C> <C>
Loan Balance (6/30/94) $551,343 $6,839/unit
Book Basis (6/30/94) $516,350
Gross Insurance Amount $927,000
Assessed Fair Market Value $306,160 *assessed value
(from 1993 Real Estate Taxes) under appeal
NOI estimate $ 97,420
Capitalized at 13.5% $678,332
Debt service $ 87,072
Debt service coverage 1.12
</TABLE>
<PAGE> 105
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
MAPLEBROOK INVESTMENTS
$549,059 Note
37 Condominium Units
Houston, TX
August 1, 1994
On March 15, 1991, we sold the remaining 37 condominium units out of a 98 unit
condominium project in northwest Houston. The sales price was $750,000 or
$20,270 per unit. The borrower put 25% down or $187,500 and we took back a
note for $562,500 at a rate of 9%, 30 year amortization and a 5 year call.
This note matures April 1, 1996.
The borrower has never missed a payment and the property has enjoyed a 90% or
better occupancy during this time. The present balance on the note is $548,229
or $14,817 per unit.
Finding comparable on a bulk sale of a partial condominium project is very
difficult, however, based on the location, unit types and demand in the area,
PTC management is very comfortable in putting a value of $750,000 or $20,270
per unit.
<TABLE>
<S> <C>
Sales Price: $750,000
Less Sales Costs:
Commission < 45,000>
Survey/Title/Misc. < 15,000>
Taxes < 12,950>
Repairs/Maint. < 18,500>
--------
Net Proceeds: $658,550
--------
NRV 6/30/94: $658,550
Book Basis 6/30/94: $278,865
Allowance Required: $0
</TABLE>
These 37 units appraised for $900,000 in 1988.
<PAGE> 106
PARKWAY TEXAS CORPORATION
NET REALIZABLE VALUE
WEST BELT LTD. LOAN
Secured by 101 Undeveloped Acres
Matures 3/31/95
Missouri City, TX (far southwest Houston)
August 1, 1994
This 101 acre site lies in both Harris and Fort Bend Counties. The property
was appraised for $1,400,000 on November 23, 1992. The present principal
balance owed to PTC on this loan is $271,040.48. Based off the $1,400,000
appraisal, our LTV is 19.4%.
This tract bounds the south Beltway feeder road which offers tremendous
access to the entire city of Houston. This loan will most likely pay off
before its maturity date of March 31, 1995.
<TABLE>
<S> <C>
NRV 6/30/94: $271,040
Book Basis 6/30/94: $137,663
Allowance Required: $0
</TABLE>
<PAGE> 107
EXHIBIT 8
APPENDIX A
Figure Figure Description
Number
1 Map of Lake Jackson, Texas indicating the location of the
Plantation Village Shopping Center
2 Plot plan of the Plantation Village Shopping Center
3 Map of Houston, Texas indicating the location of the Summer Hill
Townhomes
4 Picture of a townhome located in the Summer Hill Townhomes
5 Map of Houston, Texas indicating the location of the Westoffice
Building
6 Picture of the Westoffice Building
7 Map of Sugarland, Texas indicating the location of Sugarland
Triangle
8 Plot description of Sugarland Triangle
9 Map of Katy, Texas indicating the location of Green-Busch Land
10 Detailed map of Green-Busch Land
11 Map of Fort Worth, Texas indicating the location of Cooks Lane
12 Plot description of Cooks Lane
<PAGE> 108
Exhibit 9
---------
EB, Inc. - Valuation Analysis Sheets on Major Assets
(prepared by management to estimate current fair market values)
<PAGE> 109
EB, Inc.
300 ONE JACKSON PLACE
188 EAST CAPITOL STREET
JACKSON, MISSISSIPPI
39201-2195
POST OFFICE BOX 22728
JACKSON, MISSISSIPPI
39225-2728
MEMORANDUM
TO: EB, INC. SPECIAL COMMITTEE
ROGER P. FRIOU
(601) 948-4091 KENNETH WARREN
FACSIMILE (601) 949-4077 WILLIAM S. CASSEL
FROM: KEITH MCKEY
DATE: MAY 26, 1994
Enclosed are estimates of net realizable values of the EB assets. If
you have any questions, please call David Hoster.
NKM/lmu
<PAGE> 110
300 One Jackson Place
188 East Capitol Street THE PARKWAY COMPANY Post Office Box 22728
Jackson, MS 39201-2195 Jackson, MS 39225-2728
- -------------------------------------------------------------------------------
(601) 948-4091 Facsimile (601) 949-4077
MEMORANDUM
TO: PARKWAY SPECIAL COMMITTEE
LINCOLN MOSSOP, JR.
W. PAT GREEN, JR.
FROM: KEITH MCKEY
DATE: MAY 26, 1994
Enclosed are estimates of net realizable values of the EB assets. If you have
any questions, please call David Hoster.
NKM/lmu
<PAGE> 111
<TABLE>
EB, INC.
SUMMARY BALANCE SHEET
MARCH 31, 1994
<S> <C> <C> <C>
BOOK VALUE NRV
---------- -----
(IN THOUSANDS)
Cash and cash equivalents $ 1,865 1,865
Grenada Sunburst stock
(438,889 x 21.00) 9,217 10,753
REAL ESTATE LOANS:
Name Collateral
---- ----------
McComb Motel 150-room Ramada 1,899 1,672
McComb, MS (200)
Vicksburg Scottish Inns 100-room motel - 1st 101 114
Vicksburg, MS - 2nd 13
University Inn 120-room motel - 1st 1,194 1,216
Starkville, MS - 2nd 22
(329)
Lakeside Villa Apartments 146-units 936 845
Jackson, MS (264)
Four Seasons Apartments 32 units 1,674 1,060
Jackson, MS (677)
Colonial Self-Storage 312 storage units 927 927
Jackson, MS
Colonial Self-Storage 314 storage units 825 825
Pensacola, FL
Oak Creek Apartments 40% participation 1,790 1,492
216 units, Dallas, TX
Southern Oaks Office
Building 31,200 sq. ft. 1,028 1,028
Tulsa, OK
Northfield Drive Residential/commercial 245 245*
lots, Jackson, MS *(land only-
NRV not
Virginia Beach Office available)
Complex 40% participation 4,431 2,752
268,362 sq. ft. (2,100)
Virginia Beach, VA
</TABLE>
<PAGE> 112
REAL ESTATE LOANS: (continued)
<TABLE>
<CAPTION>
Name Collateral NRV
---- ---------- ---
<S> <C> <C> <C>
Waggoner Roxbury condo 110 110**
Davis House, Madison, MS 130 130**
Barry Roxbury condo 102 102**
Redbud Construction 5 houses
Oklahoma City 122 122**
(** Residential property - NRV not available) **
Other real estate loans
less than $100,000 681 75*
Other real estate loans
allowance (609)
Less unearned income (109)
---------- ----------
Net real estate loans 11,942 12,715
---------- ----------
BANK LOANS: (*Book Basis used, NRVs not available)
Field Auto body shop 344 344*
Gulfport, MS
Flight Line Commercial airplane 406 285*
29 seats (121)
Furr Transmissions Auto transmission shop 296 296*
Ridgeland, MS
Ghetti 16 units in an apartment 543 409*
complex, Clinton, MS
2 duplexes - Clinton, MS (134)
1 lot, Springridge Road
Hinds County, MS
Millette Office Building 204 204*
Pascagoula, MS
Office Building 443 443*
Pascagoula, MS
2nd mortgage-Office Bldg. 425 300*
Pascagoula, MS (125)
Multigraphic 2 lots, Hattiesburg, MS 181 181*
Clinton, MS Building,
Jackson, MS
Wilkinson Unsecured 115 O*
(115)
Other bank loans under $100,000 1,990 1,435*
Other bank loans - allowance (555)
--------- ---------
Net bank loans 3,897 3,897
--------- ---------
Total net loans 15,839 16,612
--------- ---------
</TABLE>
<PAGE> 113
<TABLE>
<CAPTION>
REAL ESTATE OWNED:
Name Description
----- ------------
<S> <C> <C> <C>
Mill Shopping Center 30,877 sq. ft. shopping 1,198 1,239
center, Tulsa, OK
Aloma Arms Apartments 400% participation in an
180 unit apartment complex
Winter Park, FL 1,071 1,213
Woodlake II 10.5 acres 200 200*
Rankin County, MS (*land only
NRV unavailable)
Kelso 2.76 acres 177 177*
Madison County, MS (*land only
NRV unavailable)
Other REO under $100,000 337 337*
---------- ----------
*(NRV unavailable)
Total real estate owned 2,983 3,166
Other assets 554 554*
(*Book Basis used/ NRV unavailable) ---------- ----------
Total assets 30,458 32,950
---------- ----------
Liabilities:
Due to shareholders from
7-88 reverse split, $1.75 per share
for shareholders who owned less than
500 shares and who have not turned
in shares 1,139
Other liabilities 342
---------- -----------
Total liabilities 1,481 1,481
---------- ----------
Net book value $ 28,977 31,469
=========== ==========
Net book value per
share (1,450,117 shares) $ 19.98 21.71
=========== ==========
Note: Amounts with credit balances are allowances on the loans
</TABLE>
<PAGE> 114
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
======================================================= ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: McComb Hotel Properties ---------------
Property Description: Motel
Property City: McComb, MS
Loan Number: 67230 Holding Period: 0 Years
Loan Amount at Review Date: $1,899,702 Market Value: $4,150,000 6/8/83 Most Current Appraisal
Loan Rate: 9.500% BOOK VALUE: $1,899,702 Date of Exam
Terms: N/A Forward Cap: 11.00% Market Derived Rate
Cost of Sale: 5.00% Market Derived Rate
======================================================= ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1992 $193,600 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $1,760,000
Sale Cost ($88,000)
NET REVERSION $1,672,000
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $193,600 $0 $0 1 Rent is stabilized, no discount
2 $0 $0 2 rate was used to determine N.P.V.
3 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $1,672,000 $1,672,000
--------------- -------------
NET REALIZABLE VALUE $1,672,000 $1,672,000 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $1,672,000 BOOK VALUE > MARKETNO
BOOK VALUE > NRV? YES
BOOK VALUE $1,899,702 BOOK VALUE > NPV? YES
----------------
RESERVE NEEDED $227,702 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 115
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
======================================================= ==============================================================
Date of Review: February 4, 1994 ASSUMPTIONS
Loan Name: Uniram Ltd -----------
Property Description: 120 Unit - University Inn
Property City: Starkville, MS
Loan Number: 68103 & 953820 Holding Period: 0 Years
Loan Amount at Review Date: $1,220,052 Market Value: Not Available Most Current Appraisal
Less Specific Reserve $45,668 BOOK VALUE: $1,174,384 Date of Exam
Net Book Value: $1,174,384 Forward Cap: 12.00% Market Derived Rate
Loan Rate 8.500% Cost of Sale: 6.00% Market Derived Rate
======================================================= ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1991 $158,082 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $1,317,350
Sale Cost ($79,041)
NET REVERSION $1,238,309
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $158,082 $0 $0 1
2 $0 $0 2
3 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $1,238,309 $1,238,309
--------------- -------------
NET REALIZABLE VALUE--> $1,238,309 $1,238,309 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $1,238,309 BOOK VALUE > MARKET YES
BOOK VALUE > NRV? NO
BOOK VALUE $1,174,384 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 116
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
========================================================= ==============================================================
Date of Review: February 4, 1994 ASSUMPTIONS
Loan Name: Lakeside Villa Associates ---------------
Property Description: 146 Units Apartments
Property City: Jackson, MS
Loan Number: 68226 Holding Period: 0 Years
Loan Amount at Review Date: $938,018 Market Value: $1,859,000 01/04/78 Most Current Appraisal
Less: Discount 13,000 BOOK VALUE: $925,018 Date of Exam
Net of Discount: $925,018 Forward Cap: 12.00% Market Derived Rate
Loan Rate: 8.500% Cost of Sale: 6.00% Market Derived Rate
========================================================= ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1992 $107,900 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $899,167
Sale Cost ($53,950)
NET REVERSION $845,217
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $107,900 $0 $0 1
2 $0 $0 $0 2
3 $0 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $845,217 $845,217
--------------- -------------
NET REALIZABLE VALUE --> $845,217 $845,217 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $845,217 BOOK VALUE > MARKETNO
BOOK VALUE > NRV? YES
BOOK VALUE $925,018 BOOK VALUE > NPV? YES
----------------
RESERVE NEEDED $79,802 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 117
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
========================================================== ===============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Colonial Storage (Jackson) ---------------
Property Description: Mini-warehouses
Property City: Jackson, MS
Loan Number: 950328 Holding Period: 0 Years
Loan Amount at Review Date: $926,791 Market Value: $1,140,000 12/04/87 Most Current Appraisal
Less: Discount $48,562 BOOK VALUE: $878,229 Date of Exam
Net of Discount: $878,229 Forward Cap: 11.00% Market Derived Rate
Loan Rate: 9.000% Cost of Sale: 5.00% Market Derived Rate
========================================================== ================================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1993 $109,000 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $990,909
Sale Cost ($49,545)
NET REVERSION $941,364
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $109,000 $0 $0 1
2 $0 $0 $0 2
3 $0 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $941,364 $941,364
--------------- -------------
NET REALIZABLE VALUE --> $941,364 $941,364 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $941,364 BOOK VALUE > MARKETNO
BOOK VALUE > NRV? NO
BOOK VALUE $878,229 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 118
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
============================================================ ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Colonial Storage (Pensacola) ---------------
Property Description: Mini-warehouses
Property City: Pensacola, FL
Loan Number: 953723 Holding Period: 0 Years
Loan Amount at Review Date: $824,844 Market Value: $1,035,000 3/14/88 Most Current Appraisal
Less: Discount $43,220 BOOK VALUE: 781,624 Date of Exam
Net of Discount: $781,624 Forward Cap: 11.00% Market Derived Rate
Loan Rate: 9.000% Cost of Sale: 5.00% Market Derived Rate
============================================================ ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1993 $102,000 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $927,273
Sale Cost ($46,364)
NET REVERSION $880,909
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $102,000 $0 $0 1
2 $0 $0 $0 2
3 $0 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $880,909 $880,909
--------------- -------------
NET REALIZABLE VALUE --> $880,909 $880,909 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $880,909 BOOK VALUE > MARKETNO
BOOK VALUE > NRV? NO
BOOK VALUE $781,624 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 119
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
======================================================= ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Joe Ellis Joseph ---------------
Property Description: Four Season Apartments
Property City:
Loan Number: 707712-05 Holding Period: 0 In Years
Loan Amount at Review Date: $1,674,891 Market Value: Most Current Appraisal
Loan Rate: 8.00% BOOK VALUE: $1,674,891 Date of Exam
Terms: Bankruptcy - Agreed order Forward Cap: 12.00% Market Derived Rate
Cost of Sale: 4.50% Market Derived Rate
======================================================= ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOT 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1993 $133,300 1 $0
2 Forecast Net Operating I ncom 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $1,110,833
Sale Cost ($49,988)
NET REVERSION $1,060,846
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $133,300 $0 $0 1
2 $0 $0 2
3 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $1,060,846 $1,060,846
--------------- -------------
NET REALIZABLE VALUE-> $1,060,846 $1,060,846 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $1,060,846 BOOK VALUE > MARKET YES
BOOK VALUE > NRV? YES
BOOK VALUE $1,674,891 BOOK VALUE > NPV? YES
----------------
RESERVE NEEDED $614,045 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 120
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
========================================================== ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Oak Creek Apartmants ---------------
Property Description: 216 Units Apartments
Property City: Dallas, TX
Loan Number: 954829 EOB 40% Part Holding Period: 0 Years
Loan Amount at Review Date: $4,475,000 $1,790,000 Market Value: $3,900,000 04/14/89 Most Current Appraisal
Less Discount: $202,840 $81,136 BOOK VALUE: $4,272,160 Date of Exam
Net of Discount $4,272,160 $1,708,864 Forward Cap: 11.00% Market Derived Rate
Loan Rate: 7.900% Cost of Sale: 5.00% Market Derived Rate
========================================================== ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Est. 1993 $432,000 1 $3,927,273
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $3,927,273
Sale Cost ($196,364)
NET REVERSION $3,730,909 Eight months annualized
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $432,000 $0 $0 1
2 $0 $0 $0 2
3 $0 $0 $0 3
4 $0 $0 $0 4
5 $0 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $3,730,909 $3,730,909
--------------- -------------
NET REALIZABLE VALUE-> $3,730,909 $3,730,909 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $3,730,909 BOOK VALUE > MARKET YES
BOOK VALUE > NRV? YES
BOOK VALUE $4,272,160 BOOK VALUE > NPV? YES
----------------
RESERVE NEEDED $541,251 FAIR VALUE WRITE-DOWN
================ REQUIRED?
EB 40% Participation - NPV $1,492,364
EB 40% Book value $1,708,864
================
$216,500
</TABLE>
<PAGE> 121
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
============================================================ ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Intervest Southern Oaks ---------------
Property Description: 29,878 sq ft Office Building
Property City: Tulsa, OK
Loan Number: 955352 Holding Period: 0 In Years
Loan Amount at Review Date: $1,030,228 Market Value: $1,550,000 02-07-89 Most Current Appraisal
Less: Discount $51,293 BOOK VALUE: $978,935 Date of Exam
Net of Discount: $978,935 Forward Cap: 11.00% Market Derived Rate
Loan Rate: 7.500% Cost of Sale: 5.00% Market Derived Rate
============================================================ ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Act. 1992 $131,000 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $1,190,909
Sale Cost ($59,545)
NET REVERSION $1,131,364
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $131,000 $0 $0 1
2 $0 $0 2
3 $0 $0 3
4 $0 $0 4
5 $0 $0 5
6 $0 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $1,131,364 $1,131,364
--------------- -------------
NET REALIZABLE VALUE --> $1,131,364 $1,131,364 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $1,131,364 BOOK VALUE > MARKETNO
BOOK VALUE > NRV? NO
BOOK VALUE $978,935 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
<PAGE> 122
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
========================================================== ==============================================================
Date of Review: January 31, 1994 ASSUMPTIONS
Loan Name: Virginia Beach ---------------
Property Description: Office Complex
Property City: Virginia, VA
Loan Number: Participation EOB 40% Part Holding Period: 0 Years
Loan Amount at Review Date: $9,228,092 $3,691,237 Market Value: $19,500,000 7/31/84 Most Current Appraisal
Less: Spec Reserve & Discount $1,755,888 $702,355 BOOK VALUE: $7,472,204 Date of Exam
Loan Amount Net of Discount $7,472,204 $2,988,882 Forward Cap: 12.00% Estimate
Loan Rate: 8.500% eff 7-1-92 Cost of Sale: 5.00% Market Derived Rate
========================================================== ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Annualized 93 $1,520,000 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $12,666,667
Sale Cost ($633,333)
NET REVERSION $12,033,333
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR 1/31/94 BALANCES
1 $1,520,000 $0 $0 1 TOTAL LOAN EBS 40%
2 $0 $0 $0 2 ============= ============
3 $0 $0 $0 3 Main loan $14,380,872 $5,752,349
4 $0 $0 $0 4 Underlyings ($5,152,779) ($2,061,112)
5 $0 $0 $0 5 Rehab loan added to Main
6 $0 $0 $0 6 "A" Notes $1,175,000 $470,000
7 $0 $0 $0 7 "B" Notes $650,000 $260,000
8 $0 $0 $0 8 ------------- ------------
PV NET REVERSION $12,033,333 $12,033,333 Loan Amount $11,053,092 $4,421,237
--------------- -------------
NET REALIZABLE VALUE--> $12,033,333 $12,033,333 <-NET PRESENT VALUE
=============== =============
$2,752,222 EOB's 40% of NPV net of underlyings
====================================================================================================================================
Total Loan EOB's 40%
NET PRESENT VALUE $6,880,554 $2,752,222 BOOK VALUE > MARKET NO $12,033,333 TOTAL NRV
($5,152,779) Less: Underlying
BOOK VALUE > NRV? NO
BOOK VALUE $7,472,204 $2,988,882 BOOK VALUE > NPV? NO -----------
---------- ---------- $6,880,554 NET NRV
RESERVE NEEDED $591,650 $236,660 FAIR VALUE WRITE-DOWN
========== ========== REQUIRED? $12,033,333 TOTAL NRV
($5,152,779) Less: Underlying
------------
$6,880,554 NET NVP
</TABLE>
<PAGE> 123
<TABLE>
<S> <C>
EASTOVER BANK FOR SAVINGS
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
======================================================= ==============================================================
Date of Review: November 30, 1992 ASSUMPTIONS
Loan Name: Aloma Arms Apartments ---------------
Property Description: 180 Units Apartments Cost of Funds: 0.00% Per Institution Quarterly Report
Property City: Orlando, FL Discount Rate: 11.00% Market Derived Rate
Loan Number: 92-456 Holding Period: 1 In Years
Loan Amount at Review Date $2,737,800 Market Value: $4,275,000 02/21/89 Most Current Appraisal
Loan Rate: N/A BOOK VALUE: $2,737,800 Date of Exam
Terms: N/A Forward Cap: 12.00% Market Derived Rate
Participation with Security: $1,095,120 Cost of Sale: 4.00% Market Derived Rate
======================================================= ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Est. 1992 $344,000 1 $3,150,000
2 Forecast Net Operating Income $378,000 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $3,150,000
Sale Cost ($126,000)
NET REVERSION $3,024,000
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $344,000 $344,000 $309,068 1
2 $378,000 $344,000 $309,068 2
3 $344,000 $309,068 3
4 $344,000 $309,068 4
5 $344,000 $309,068 5
6 $0 $344,000 $309,068 6
7 $0 $344,000 $309,068 7
8 $0 $344,000 $309,068 8
PV NET REVERSION $3,024,000 $2,724,324
--------------- -------------
NET REALIZABLE VALUE -> $3,368,000 $3,033,392 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $3,033,392 BOOK VALUE > MARKET NO
(Used Net Present Value) BOOK VALUE > NRV? NO
BOOK VALUE $2,737,800 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
EOB 40% Participation - NRV $1,213,357
EOB 40% Participation -
Book Value $1,095,120
</TABLE>
<PAGE> 124
<TABLE>
<S> <C>
EB INCORPORATED
CALCULATION OF NET PRESENT VALUE FILE: NRVCAL
============================================================ ==============================================================
Date of Review: February 4, 1994 ASSUMPTIONS
Loan Name: The Mill Shopping Center ---------------
Property Description: 30,779 sq ft Shopping Center
Property City: Tulsa, OK
Loan Number: 92-419 Holding Period: 0 Years
Loan Amount at Review Date: $1,197,300 Market Value: $1,900,000 3/4/87 Most Current Appraisal
Loan Rate: N/A BOOK VALUE: $1,197,300 Date of Exam
Terms: N/A Forward Cap: 11.00% Market Derived Rate
Cost of Sale: 6.00% Market Derived Rate
============================================================ ==============================================================
====================================================================================================================================
INCOME FORECAST SALE PRICE
YR(input NOI 1 year past holding period) YEAR (By years)
1 Forecast Net Operating Income Est. 1994 $145,000 1 $0
2 Forecast Net Operating Income 2 $0
3 Forecast Net Operating Income 3 $0
4 Forecast Net Operating Income 4 $0
5 Forecast Net Operating Income 5 $0
6 Forecast Net Operating Income 6 $0
7 Forecast Net Operating Income 7 $0
8 Forecast Net Operating Income 8 $0
REVERSION FORECAST
Sale Price $1,318,182
Sale Cost ($79, 091)
NET REVERSION $1,239,091
====================================================================================================================================
NOI Cash Flow @ Cost of Funds @ Market
YR YEAR
1 $145,000 $0 $0 1
2 $0 $0 $0 2
3 $0 $0 $0 3
4 $0 $0 $0 4
5 $0 $0 5
6 $0 $0 6
7 $0 $0 $0 7
8 $0 $0 $0 8
PV NET REVERSION $1,239,091 $1,239,091
--------------- -------------
NET REALIZABLE VALUE-> $1,239,091 $1,239,091 <-NET PRESENT VALUE
=============== =============
====================================================================================================================================
NET PRESENT VALUE $1,239,091 BOOK VALUE > MARKET NO
BOOK VALUE > NRV? NO
BOOK VALUE $1,197,300 BOOK VALUE > NPV? NO
----------------
RESERVE NEEDED $0 FAIR VALUE WRITE-DOWN
================ REQUIRED?
</TABLE>
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