<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
--------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------- -------
COMMISSION FILE NUMBER 1-9663
---------
Mid-America Realty Investments, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 47-0700007
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
11506 Nicholas Street, Suite 100, Omaha, NE 68154
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (402) 496-3300
-------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
At October 31, 1996, the registrant had 8,282,731 shares of common stock
outstanding.
1
<PAGE>
MID-AMERICA REALTY INVESTMENTS, INC. AND SUBSIDIARY
FORM 10-Q
INDEX
Page
----
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
at September 30, 1996 and December 31, 1995. 3
Consolidated Statements of Operations
for the Three and Nine Months Ended
September 30, 1996 and 1995. 4
Consolidated Statements of Cash Flows
for the Nine Months Ended September 30,
1996 and 1995. 5
Notes to Consolidated Financial Statements. 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations. 8-12
Part II. Other Information 13
Signatures 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MID-AMERICA REALTY INVESTMENTS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Columnar Dollars in Thousands)
September 30, 1996 December 31, 1995
------------------ -----------------
ASSETS
Cash $ -- $ --
Accounts receivable, net of allowances
of $197,000 and $175,000 1,812 1,497
Notes receivable, net of allowance of
$160,000 612 742
Property:
Land and land improvements 37,352 37,567
Buildings 113,782 113,602
Equipment and fixtures 559 559
Construction-in-progress 702 287
-------- --------
152,395 152,015
Less: Accumulated depreciation (27,355) (24,250)
-------- --------
Property, net 125,040 127,765
Investment in Mid-America Bethal
Limited Partnership 15,262 15,597
Intangible assets, less accumulated
amortization of $3,309,000 and
$2,948,000 1,712 2,042
Other assets 2,888 2,696
-------- --------
$147,326 $150,339
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $65,213 $65,592
Accrued liabilities 1,765 1,831
-------- --------
Total Liabilities 66,978 67,423
Commitment and Contingencies
Shareholders' Equity:
Common stock, $.01 par value:
25,000,000 shares authorized;
8,282,171 and 8,280,524 shares
issued and outstanding 83 83
Capital in excess of par value 119,695 119,682
Distributions in excess of net
income (39,430) (36,849)
-------- --------
Total Shareholders' Equity 80,348 82,916
-------- --------
$147,326 $150,339
-------- --------
-------- --------
See notes to consolidated financial statements.
3
<PAGE>
MID-AMERICA REALTY INVESTMENTS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(Columnar Dollars in Thousands Except Share and Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
------------- -------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Rental income $ 4,257 $ 4,198 $12,852 $12,421
Reimbursed expenses 1,279 1,116 3,864 3,554
Property management and leasing income 51 61 153 156
Other income 149 142 566 450
------- ------- ------- -------
Total Revenues 5,736 5,517 17,435 16,581
EXPENSES:
Real estate taxes 674 838 2,267 2,303
Other property costs 1,025 633 2,739 2,573
Interest expense 1,438 1,518 4,355 4,485
Administrative expenses 281 497 1,034 1,164
Property management and leasing expenses 254 189 797 553
Depreciation and amortization 1,225 1,281 3,784 3,794
------- ------- ------- -------
Total Expenses 4,897 4,956 14,976 14,872
------- ------- ------- -------
Income Before Equity in Earnings of
Mid-America Bethal Limited Partnership 839 561 2,459 1,709
Equity in Earnings of Mid-America Bethal
Limited Partnership 219 262 715 722
------- ------- ------- -------
INCOME FROM OPERATIONS 1,058 823 3,174 2,431
(Loss) Gain on Sale of Real Estate (289) ---- (289) 124
------- ------- ------- -------
NET INCOME $ 769 $ 823 $ 2,885 $ 2,555
------- ------- ------- -------
------- ------- ------- -------
Weighted Average Shares
Outstanding During Period 8,281,978 8,279,892 8,281,409 8,279,892
--------- --------- --------- ---------
--------- --------- --------- ---------
NET INCOME PER SHARE $ .09 $ .10 $ .35 $ .31
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
MID-AMERICA REALTY INVESTMENTS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(COLUMNAR DOLLARS IN THOUSANDS)
Nine Months Ended September 30,
-----------------------------------
1996 1995
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 2,885 $ 2,555
Adjustments:
Depreciation and amortization 3,784 3,794
Investment in Mid-America Bethal
Limited Partnership:
Equity in earnings (715) (722)
Distributions received 1,050 1,150
Loss (Gain) on sale of real
estate 289 (124)
(Decrease) Increase in related
liabilities (52) 566
Increase in related assets (505) (974)
-------- --------
Net Cash Flows From Operating Activities 6,736 6,245
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of real estate 572 174
Principal repayments of notes
receivable 130 102
Additions to property:
Renovation and expansion projects (1,405) (652)
Tenant improvements (175) (379)
Payments from Yield Maintenance
Agreement 19 984
Cash paid for leasing fees (31) (217)
--------- --------
Net Cash Flows From Investing
Activities (890) 12
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds (Payments) on short-term debt,
net 613 (1,944)
Proceeds of mortgages payable -- 14,500
Scheduled principal payments on
mortgages (993) (13,128)
Cash paid for loan fees -- (220)
Dividends paid (5,466) (5,465)
--------- --------
Net Cash Flows From Financing
Activities (5,846) (6,257)
--------- --------
NET CHANGE IN CASH -- --
CASH, BEGINNING OF PERIOD -- --
--------- --------
CASH, END OF PERIOD $ -- $ --
--------- --------
--------- --------
See notes to consolidated financial statements.
5
<PAGE>
MID-AMERICA REALTY INVESTMENTS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
(COLUMNAR DOLLARS IN FOOTNOTES ARE IN THOUSANDS EXCEPT PER SHARE DATA)
A. BASIS OF CONSOLIDATION AND PRESENTATION:
The unaudited consolidated financial statements are prepared on an accrual
basis and include the accounts of Mid-America Realty Investments, Inc. (the
"Company") and its wholly-owned subsidiary, Mid-America Centers Corp. The
unaudited consolidated financial statements should be read in conjunction
with the audited consolidated financial statements included in the
Company's 1995 Annual Report on Form 10-K for the year ended December 31,
1995.
The information furnished herein reflects all adjustments, which consist of
normal recurring accruals, which are, in the opinion of management,
necessary to fairly present the financial results for the interim periods
presented. The results for the nine months ended September 30, 1996 and
1995 are not necessarily indicative of the operating results for the full
year.
All material intercompany transactions and profits have been eliminated in
consolidation.
Net income per share was determined by dividing net income for the periods
presented by the weighted average number of shares of common stock
outstanding for the period.
B. INVESTMENT IN MID-AMERICA BETHAL LIMITED PARTNERSHIP:
Mid-America Bethal Limited Partnership ("Mid-America Bethal") was formed on
June 1, 1989 by the Company and a European investor. The Company has a 50%
interest in Mid-America Bethal and is the managing general partner. The
European investor has a 50% interest and is the limited partner.
Summarized financial information on Mid-America Bethal is as follows:
September 30, 1996 December 31, 1995
------------------ -----------------
BALANCE SHEETS:
Assets:
Cash $ 674 $ 817
Property, net of depreciation
of $7,093,000 and
$6,278,000 29,234 29,940
Other assets 628 454
------- -------
$ 30,536 $ 31,211
------- -------
------- -------
Liabilities and Partners' Capital:
Accounts payable and other
liabilities $ 13 $ 18
Partners' capital 30,523 31,193
------- -------
$ 30,536 $ 31,211
------- -------
------- -------
6
<PAGE>
Nine Months Ended September 30,
-------------------------------
1996 1995
---- ----
STATEMENTS OF OPERATIONS:
Total Revenues $ 3,322 $ 3,236
------- -------
------- -------
Net Income $ 1,430 $ 1,445
------- -------
------- -------
EQUITY IN EARNINGS OF MID-AMERICA
BETHAL RECORDED BY THE COMPANY: $ 715 $ 722
------- -------
------- -------
C. MORTGAGES AND NOTES PAYABLE:
Mortgages and notes payable are comprised of the following:
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
------------------ -----------------
<S> <C> <C>
Mortgages Payable $ 50,277 $ 50,796
Working Capital Line of Credit
($5,000,000 available at London International Bank
Offering Rate (LIBOR) plus 2% due July 1997) 1,276 663
Acquisitions Line of Credit
($10,000,000 available at LIBOR plus 2-1/2% due July 1997) 4,101 8,574
Acquisitions Line of Credit
($15,000,000 available at LIBOR plus 2-1/4% due July 1997) 9,559 5,559
-------- --------
$ 65,213 $ 65,592
-------- --------
-------- --------
</TABLE>
During the nine months ended September 30, 1996, the Company completed the
extension of the two Twin Oaks Centre mortgage loans with the existing
lender. These loans total $3,673,000 and have been extended for three
years to April 1999, with an interest rate of 8.50%. In addition, the
Company renegotiated the terms of its $15,000,000 acquisition line of
credit. This line was converted from $15 million of committed funds to $10
million of committed funds with an additional $5 million standby, which can
be accessed with bank approval and has been extended to July 1997 at an
interest rate of LIBOR plus 250 basis points, with a non-use fee of 25
basis points on the committed amount. This interest rate can be reduced by
25 basis points if $100,000 of non-interest bearing deposits are kept with
the lending institution. At September 30, 1996, the Company had $100,000
of deposits with the lending institution and the interest rate was LIBOR
plus 225.
Subsequent to September 30, 1996, the Company repaid the maturing fixed
rate mortgage loan secured by the Bishop Heights Shopping Center primarily
from proceeds of the $15,000,000 acquisition line. The Bishop Heights
mortgage loan bore interest of 9% and had a balance of approximately
$655,000 prior to being repaid.
D. COMMITMENTS AND CONTINGENCIES:
In 1992, the Company entered into a Yield Maintenance Agreement (as
amended, the "YMA") with parties formerly related to the Company. Under
the YMA, the formerly related parties guarantee a 10% return from June 1,
1992 to December 31, 1996, calculated on a quarterly basis, to the Company
based upon the amount of the Company's "Investment Base" (as defined in the
YMA) for five specific properties purchased from the formerly related
parties. If the cash flow (as defined in the YMA) of the properties after
debt service on a quarterly basis does not exceed the required 10% return,
the difference (defined as the "Arrearage" in the YMA) is owed to the
Company by the formerly related parties. The formerly related parties have
the option of paying the Arrearage in cash every quarter or having it added
to the "Investment Base."
7
<PAGE>
Under the YMA, the market value of these properties will be determined as
of December 31, 1996. The determined market value will be based on a
10.25% capitalization rate applied to "net operating income" (as defined in
the YMA) for the year ended December 31, 1996. If the determined market
value of the properties is different than the Company's "adjusted
Acquisition Cost" (as defined in the YMA), the difference will be paid by
or owed to the Company, subject to certain limits as defined in the YMA.
The obligations of the formerly related parties under the YMA are limited
to $2,800,000 and are secured by promissory notes. The promissory notes
are personally guaranteed by the formerly related parties and are
collateralized by specific tangible collateral. In addition, under the
YMA, the Company has an assignment of a 50% interest in Kearney Mall
Associates, Ltd., Limited Partnership ("Kearney Mall Associates"), whose
limited partners were formerly related to the Company, which owns Hilltop
Mall in Kearney, Nebraska. Cumulative amounts received under this
agreement totaled $1,247,000 through September 30, 1996 and reduce the
guaranteed limits described above.
At September 30, 1996, accumulated YMA arrearages (which are not reflected
in the consolidated financial statements) exceeded the guaranteed limits.
The final accumulated YMA arrearage cannot be calculated until December 31,
1996; the arrearages are payable on or before April 1, 1997.
E. PROPERTY TRANSACTIONS:
In August 1996, the Company completed the sale of Westview Plaza in McCook,
Nebraska. The gross sales price was $425,000 resulting in a loss of
approximately $314,000. Proceeds from the sale were used to reduce debt.
Negotiations have been terminated with respect to the sale of Town West
Center in Paragould, Arkansas. The Company is not actively marketing this
center for sale.
F. SUBSEQUENT EVENTS:
On October 22, 1996, the Company declared a cash dividend of $.22 per
common share payable on November 19, 1996 to stockholders of record on
November 5, 1996.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY:
The Company's primary source of funds are (i) cash generated from operations
which includes distributions from Mid-America Bethal, (ii) borrowings, (iii)
sales of real estate, and (iv) principal repayments on notes receivable.
Management anticipates that these sources will provide the necessary funds for
its operating expenses, interest expense on outstanding indebtedness, recurring
capital expenditures and dividends to shareholders in accordance with REIT
requirements, during the next twelve months. Management also believes that it
has capital, and the access to capital resources, sufficient to expand and
develop its business in accordance with its strategy for growth. In general,
the Company intends to acquire and finance additional real estate properties and
investments, to the extent possible, in such a manner as to maintain the ability
to make regular distributions to shareholders. However, the future issuance of
debt or equity securities by the Company or the acquisition of new properties or
investments could affect the yield to shareholders.
At September 30, 1996, the Company had invested approximately 95% of its assets
in enclosed malls and neighborhood shopping centers, including the Company's
investment in Mid-America Bethal. The remainder of the Company's assets
primarily consisted of accounts and notes receivable.
8
<PAGE>
At September 30, 1996, the Company had a debt-to-equity ratio of .81 to 1,
compared to .79 to 1 at December 31, 1995, based upon the ratio of mortgages and
notes payable to total shareholders' equity. The Company's ratio of debt to
total market capitalization was 47% at September 30, 1996 and 51% at December
31, 1995.
INVESTING ACTIVITIES:
During the nine months ended September 30, 1996, net cash flows used in
investing activities were $890,000 which related primarily to costs associated
with the expansions at Lakewood Mall and Monument Mall and tenant improvements.
These costs were offset by proceeds received in the sale of an outlot at
Lakewood Mall and the sale of the Westview Plaza Shopping Center in McCook,
Nebraska, in addition to principal repayments on notes receivable and payments
under the YMA.
In March 1996, the Company completed the expansion at the Herberger's department
store at Lakewood Mall from 55,000 square feet to nearly 80,000 square feet, at
a total cost of $515,000. Cash paid for the Lakewood Mall expansion during the
nine months ended September 30, 1996 was $244,000.
In September 1996, the Company completed construction on a 12,857 square foot
theatre expansion at Monument Mall at a total cost estimated at approximately
$767,000. Cash paid for the Monument Mall theatre expansion during the nine
months ended September 30, 1996 was approximately $703,000.
During the nine months ended September 30, 1996, cash paid for tenant
improvements was $175,000. Cash paid for lease fees was $31,000.
During the third quarter 1996, the Company completed the sale of Westview Plaza
Shopping Center in McCook, Nebraska for net proceeds of approximately $388,000
and sold an outlot parcel at Lakewood Mall for net proceeds of $183,000.
FINANCING ACTIVITIES:
During the nine months ended September 30, 1996, net cash flows used in
financing activities were $5,846,000 which related primarily to dividends paid
of $5,466,000. For a description of certain mortgage refinancing and line of
credit extensions during the fiscal year to date, see Note C to the Unaudited
Consolidated Financial Statements.
RESULTS OF OPERATIONS:
Net income for the nine months ended September 30, 1996 was $2,885,000 or $.35
per share compared to $2,555,000 or $.31 per share for the nine months ended
September 30, 1995. Net income for the three months ended September 30, 1996
was $769,000 or $.09 per share, compared to $823,000 or $.10 per share for the
three months ended September 30, 1995. The increase in the nine months ended
September 30, 1996 compared to the nine months ended September 30, 1995 was due
primarily to increased rental income resulting from additional revenues from
recent expansion activities, the effect of new leases, a decrease in the
weighted average cost of funds, and the impact of the purchase of the Twin Oaks
Centre in April 1995. Offsetting this increase was an increase in total
expenses and a loss on the sale of real estate. The decrease in the three
months ended September 30, 1996 compared to the same period one year ago related
to the loss on sale of real estate sold during the three months ended September
30, 1996 offset by the increased revenue as described in the nine months ended
September 30, 1996 above.
RENTAL INCOME:
Rental income for the nine and three months ended September 30, 1996 was
$12,852,000 and $4,257,000, respectively, compared to $12,421,000 and
$4,198,000, respectively, for the nine and three months ended September 30,
1995. The increase of $59,000 for the third quarter of 1996 compared to the
third quarter of 1995
9
<PAGE>
and $431,000 for the nine months ended September 30, 1996 compared to the nine
months ended September 30, 1995 was due primarily to the effects of new leases,
expansion activities, rent increases and the full nine month impact of the
acquisition of the Twin Oaks Centre in April 1995.
REIMBURSEMENT INCOME:
Reimbursement income for the nine and three months ended September 30, 1996 was
$3,864,000 and $1,279,000, respectively, compared to $3,554,000 and $1,116,000,
respectively, for the nine and three months ended September 30, 1995. The
increase was due primarily to the acquisition of the Twin Oaks Centre in April
1995, recent expansion activities, certain one time charges due to lease audits
and the effects of new leases.
OTHER INCOME:
Other income for the nine and three months ended September 30, 1996 was $566,000
and $149,000, respectively, compared to $450,000 and $142,000, respectively, for
the nine and three months ended September 30, 1995. The increase was primarily
attributable to a $90,000 final settlement from the Company's investment in
Valley Park Center.
OTHER PROPERTY COSTS:
Other property costs for the nine and three months ended September 30, 1996 were
$2,739,000 and $1,025,000, respectively, compared to $2,573,000 and $633,000,
respectively, for the nine and three months ended September 30, 1995. The
increase was primarily attributable to timing of certain recurring property
expenses and the full year impact of the April 1995 acquisition of the Twin Oaks
Centre.
INTEREST EXPENSE:
Interest expense for the nine and three months ended September 30, 1996 was
$4,355,000 and $1,438,000, respectively, compared to $4,485,000 and $1,518,000,
respectively, for the nine and three months ended September 30, 1995. The
decrease in interest expense for the nine and three months ended September 30,
1996 compared to the same period one year ago was primarily related to a
decrease in the weighted average cost of funds partially offset by an increase
in the Company's average debt outstanding. The Company's weighted average cost
of funds was 8.9% during the first nine months of 1996 compared to 9.2% during
the same period of 1995. The Company's average total debt was $65,546,000
during the nine months ended September 30, 1996 compared to $65,113,000 during
the nine months ended September 30, 1995.
ADMINISTRATIVE EXPENSES:
Administrative expenses for the nine and three months ended September 30, 1996
were $1,034,000 and $281,000, respectively, compared to $1,164,000 and $497,000,
respectively, for the nine and three months ended September 30, 1995. The
decrease relates primarily to the continued impact of improved cost control
initiatives and a decrease in legal and consulting costs.
PROPERTY MANAGEMENT EXPENSES:
Property management expenses for the nine and three months ended September 30,
1996 were $797,000 and $254,000, respectively, compared to $553,000 and
$189,000, respectively, for the nine and three months ended September 30, 1995.
The increase was primarily attributable to the impact of the acquisition of the
Twin Oaks Centre in April 1995, an increase in leasing and marketing activities
and timing of certain property management expenses.
10
<PAGE>
FUNDS FROM OPERATIONS:
Management considers Funds from Operations to be the most appropriate measure of
the performance of an equity real estate investment trust ("REIT"). The Company
defines Funds From Operations as net income before gains/losses from property
sales adjusted for non-cash items in the income statement, such as depreciation
and amortization. Funds from Operations is a supplemental measure of
performance that does not replace net income (loss) as a measure of performance
or net cash provided by operating activities as a measure of liquidity.
Funds From Operations for the nine and three months ended September 30, 1996
were $7,122,000 and $2,361,000 or $.86 and $.29 per share, respectively,
compared to $6,439,000 and $2,175,000 or $.78 and $.26 per share, respectively,
for the nine and three months ended September 30, 1995. The increase was
primarily attributable to the positive impact of the April 1995 acquisition of
the Twin Oaks Centre, an increase in rental income due to recent expansion
activities, the effect of new leases and, to a lesser degree, an increase in
base rent.
Funds From Operations is computed as follows:
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
1996 1995 1996 1995
-------------------- -------------------
(In Thousands)
<S> <C> <C> <C> <C>
Net Income $ 2,885 $ 2,555 $ 769 $ 823
Depreciation and Amortization (1) 3,620 3,582 1,175 1,215
Proceeds from investment in Valley
Park Center (90) -- -- --
Loss (Gain) on sale of real estate 289 (124) 289 --
Investment in Mid-America Bethal:
Equity in Earnings (715) (722) (219) (262)
Equity in Funds From Operations (2) 1,133 1,148 347 399
------- ------- ------- -------
Funds From Operations $ 7,122 $ 6,439 $ 2,361 $ 2,175
------- ------- ------- -------
</TABLE>
- ---------------
(1) Depreciation and Amortization for the nine months ended September 30, 1996
consisted of real property depreciation of $3,344,000, lease fee
amortization of $200,000, and intangible amortization of $76,000. Repairs
and maintenance expensed as "Property Costs" during the nine months ended
September 30, 1996 totaled $502,000.
(2) Equity in Funds From Operations of Mid-America Bethal for the nine months
ended September 30, 1996 included real property depreciation of $403,000
and lease fee amortization of $14,500.
The 1996 Funds From Operations reported above reflect recommendations contained
in the Funds From Operations White Paper (the "FFO White Paper") recently
adopted by the National Association of Real Estate Investment Trusts to
standardize financial reporting by real estate investment trusts. The Company
adopted the recommendations prescribed in the FFO White Paper for reporting
periods beginning after January 1, 1996. In addition, 1995 Funds From
Operations has been restated to conform to the prescribed FFO White Paper.
11
<PAGE>
TENANT AND LEASING INFORMATION:
The following tables set forth information concerning each of the properties
that the Company owns directly or has an equity interest in through Mid-America
Bethal Limited Partnership:
<TABLE>
<CAPTION>
(SQUARE FOOTAGE IN THOUSANDS)
GROSS LEASEABLE AREA LEASED SPACE (1) LEASED %
--------------------------- --------------------------- ---------------------------
9/30/96 12/31/95 9/30/95 9/30/96 12/31/95 9/30/95 9/30/96 12/31/95 9/30/95
------- -------- ------- ------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-America Realty Investments, Inc.:
Neighborhood shopping centers 1,781 1,771 1,771 1,680 1,695 1,702 94% 96% 96%
Enclosed malls 869 863 845 825 795 779 95% 92% 92%
------- -------- ------- ------- -------- ------- --- --- ---
2,650 2,634 2,616 2,505 2,490 2,481 95% 95% 95%
Mid-America Bethal L.P. (2) 539 538 538 492 475 499 91% 88% 93%
------- -------- ------- ------- -------- ------- --- --- ---
3,189 3,172 3,154 2,997 2,965 2,980 94% 93% 95%
------- -------- ------- ------- -------- ------- --- --- ---
</TABLE>
- ---------------
(1) Leased space represents the percentage of gross leasable area which is
leased to third-party tenants.
(2) The Company owns a 50% partnership interest in Mid-America Bethal Limited
Partnership. All information presented is for the entire partnership.
12
<PAGE>
PART II. OTHER INFORMATION
- ---------------------------
ITEM 5. EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
A. EXHIBITS
--------
27 Financial Data Schedule
B. REPORTS ON FORM 8-K
-------------------
The Company did not file any reports on Form 8-K during the quarter
ended September 30, 1996.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MID-AMERICA REALTY INVESTMENTS, INC.
/s/ Jerome L. Heinrichs Date: November 5, 1996
- ------------------------------ ----------------------
Jerome L. Heinrichs,
Chief Executive Officer
/s/ Dennis G. Gethmann Date: November 5, 1996
- ------------------------------ ----------------------
Dennis G. Gethmann
President and Principal Financial Officer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 2,781
<ALLOWANCES> 357
<INVENTORY> 0
<CURRENT-ASSETS> 2,424
<PP&E> 152,395
<DEPRECIATION> 27,355
<TOTAL-ASSETS> 147,326
<CURRENT-LIABILITIES> 1,765
<BONDS> 65,213
0
0
<COMMON> 83
<OTHER-SE> 80,265
<TOTAL-LIABILITY-AND-EQUITY> 147,326
<SALES> 0
<TOTAL-REVENUES> 17,435
<CGS> 0
<TOTAL-COSTS> 5,737
<OTHER-EXPENSES> 4,392
<LOSS-PROVISION> 66
<INTEREST-EXPENSE> 4,355
<INCOME-PRETAX> 2,885
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,885
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,885
<EPS-PRIMARY> .35
<EPS-DILUTED> .35
</TABLE>
