<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, 1997
-----------------
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
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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, 1997, the registrant had 8,284,743 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 (Unaudited)
Consolidated Balance Sheets
at September 30, 1997 and December 31, 1996. 3
Consolidated Statements of Operations
for the Three and Nine Months Ended September 30,
1997 and 1996. 4
Consolidated Statements of Cash Flows
for the Nine Months Ended September 30,
1997 and 1996. 5
Notes to Consolidated Financial Statements. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations. 9
Part II. Other Information 13
Signature Page 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)
ASSETS September 30, December 31,
1997 1996
------------ -----------
Cash $ -- $ --
Accounts receivable, net of allowance
of $156,800 and $195,000 1,905 1,571
Notes receivable, net of allowance of
$70,000 387 498
Property:
Land and land improvements 36,858 37,352
Buildings 114,362 114,913
Equipment and fixtures 555 555
---------- ---------
151,775 152,820
Less: Accumulated depreciation (31,892) (28,508)
---------- ---------
Property, net 119,883 124,312
Investment in Mid-America Bethal
Limited Partnership 15,036 15,201
Intangible assets, less accumulated
amortization of $3,729,000 and $3,422,000 1,468 1,623
Other assets 2,881 2,635
---------- ---------
$141,560 $145,840
---------- ---------
---------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgages and notes payable $61,866 $64,348
Accrued liabilities 2,151 1,957
---------- ---------
Total Liabilities 64,017 66,305
Commitments and Contingencies
Shareholders' Equity:
Common stock, $.01 par value; authorized
25,000,000 shares; issued and outstanding
8,284,743 and 8,283,255 shares 83 83
Capital in excess of par value 119,720 119,700
Distributions in excess of net income (42,260) (40,248)
---------- ---------
Total Shareholders' Equity 77,543 79,535
---------- ---------
$141,560 $145,840
---------- ---------
---------- ---------
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 PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ------------------
1997 1996 1997 1996
---- ---- ---- ----
REVENUES:<S> <C> <C> <C> <C>
Rental income $4,321 $4,257 $13,027 $12,852
Reimbursed expenses 1,310 1,279 3,783 3,864
Property management and leasing income 42 51 130 153
Other income 142 149 478 566
------ ------ ------- -------
Total Revenues 5,815 5,736 17,418 17,435
EXPENSES:
Real estate taxes 738 674 2,224 2,267
Other property costs 999 1,025 2,876 2,739
Interest expense 1,381 1,438 4,180 4,355
Administrative expenses 299 281 1,000 1,034
Property management and leasing expenses 281 254 871 797
Depreciation and amortization 1,254 1,225 3,726 3,784
------ ------ ------- -------
Total Expenses 4,952 4,897 14,877 14,976
------ ------ ------- -------
Income Before Equity in Earnings of
Mid-America Bethal Limited Partnership 863 839 2,541 2,459
Equity in Earnings of Mid-America Bethal
Limited Partnership 267 219 785 715
------ ------ ------- -------
INCOME FROM OPERATIONS 1,130 1,058 3,326 3,174
Gain (Loss) on Sale of Real Estate -- (289) 130 (289)
------ ------ ------- -------
NET INCOME $1,130 $769 $3,456 $2,885
------ ------ ------- -------
------ ------ ------- -------
Weighted Average Shares
Outstanding During Period 8,284,275 8,281,978 8,283,707 8,281,409
--------- --------- --------- ---------
--------- --------- --------- ---------
NET INCOME PER SHARE $.14 $.09 $.42 $.35
--------- --------- --------- ---------
--------- --------- --------- ---------
</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,
-------------------------------
1997 1996
------- ------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $3,456 $2,885
Adjustments:
Depreciation and amortization 3,726 3,784
(Gain) Loss on Sale of Real Estate (130) 289
Investment in Mid-America Bethal
Limited Partnership:
Equity in earnings (785) (715)
Distributions received 950 1,050
Increase (Decrease) in related liabilities 129 (52)
Increase in related assets (615) (505)
------- ------
Net Cash Flows From Operating Activities 6,731 6,736
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from Sale of Real Estate 344 572
Principal repayments of Notes Receivable 111 130
Additions to property:
Expansion projects and other capital expenditures (423) (1,405)
Tenant improvements (256) (175)
Payments from Yield Maintenance Agreement 1,517 19
Cash paid for leasing fees (73) (31)
------- ------
Net Cash Flows From Investing Activities 1,220 (890)
CASH FLOWS FROM FINANCING ACTIVITIES:
(Payments) proceeds on short-term debt, net (2,791) 613
Proceeds of mortgages payable 726 --
Scheduled principal payments on mortgages (340) (993)
Cash paid for loan fees (79) --
Dividends paid (5,467) (5,466)
------- ------
Net Cash Flows From Financing Activities (7,951) (5,846)
------- ------
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, 1997
(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 1996 Annual Report on Form 10-K for the year ended December 31,
1996.
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, 1997 and
1996 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. In February 1997, the Financial Accounting
Standards Board ("FASB") issued Statement of Financial Accounting Standards
No. 128, "Earnings per Share", effective for fiscal years beginning after
December 15, 1997. The adoption of this statement is not expected to have
a material impact on the Company's Net Income Per Share calculation.
In addition, in February 1997, the FASB issued Statement of Financial
Accounting Standards No. 129, "Disclosure of Information about Capital
Structure." In June 1997, the FASB issued Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income" and
Statement of Financial Accounting Standards No. 131, "Disclosures about
Segments of an Enterprise and Related Information", all of which are
effective for fiscal years beginning after December 15, 1997. The adoption
of these statements is not expected to have a material impact on the
operations of the Company.
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.
6
<PAGE>
Summarized financial information on Mid-America Bethal is as follows:
September 30, 1997 December 31, 1996
------------------ ------------------
BALANCE SHEETS:
Assets:
Cash $ 796 $ 751
Property, net of depreciation of
$8,187,000 and $7,370,000 28,620 29,097
Other Assets 664 572
------- -------
$30,080 $30,420
------- -------
------- -------
Liabilities and Partners' Capital:
Accounts payable and other
liabilities $ 8 $ 18
Partners' capital 30,072 30,402
------- -------
$30,080 $30,420
======= =======
Nine Months Ended September 30,
-------------------------------
1997 1996
------- -------
STATEMENTS OF OPERATIONS:
Total Revenues $ 3,421 $ 3,322
------- -------
------- -------
Net Income $ 1,570 $ 1,430
------- -------
------- -------
EQUITY IN EARNINGS OF MID-AMERICA
BETHAL RECORDED BY THE COMPANY $ 785 $ 715
------- -------
------- -------
C. MORTGAGES AND NOTES PAYABLE:
Mortgages and notes payable are comprised of the following:
September 30, 1997 December 31, 1996
------------------- -----------------
Mortgages Payable $49,797 $49,488
Working Capital Line of Credit
($5,000,000 available at London Interbank
Offering Rate (LIBOR) plus 2% due July 1999) 198 545
Acquisitions Line of Credit
($10,000,000 available at LIBOR plus 2%
due July 1999) 10,000 4,756
Acquisitions Line of Credit
($15,000,000 available at LIBOR
plus 2-1/4% due July 1998) 1,871 9,559
------- -------
$61,866 $64,348
------- -------
------- -------
During the third quarter ending September 30, 1997, the Company completed
the following:
- Finalized a $4,000,000, 8.28% fixed rate mortgage loan secured by the
Miracle Hills Park Shopping Center. The net proceeds from this loan
were used to repay the maturing $3,300,000 fixed rate mortgage secured
by the Miracle Hills Park Shopping Center and to repay variable rate
acquisition line debt. This loan has a seven (7) year term with
payments based on a 25-year amortization. The company paid fees of
approximately $46,000.
7
<PAGE>
- Renegotiated the terms of its revolving credit agreements. The
$5,000,000 working capital and the $10,000,000 acquisition lines of
credit were extended to July 1999 for an extension fee of $15,000.
Both lines are priced at 200 basis points over LIBOR. The $15,000,000
acquisition line was extended until July 1998 with the interest rate
remaining at 225 basis points over LIBOR; non-use fee of 25 basis
points was eliminated.
D. COMMITMENTS AND CONTINGENCIES:
In June 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 guaranteed 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 for five specific
properties purchased from the formerly related parties.
Under the YMA, the market value of these properties was determined as of
December 31, 1996. The determined market value was based on a 10.25%
capitalization rate applied to net operating income for the year ended
December 31, 1996. The determined market value of the properties was less
than the Company's adjusted acquisition cost, accordingly, the difference
was owed to the Company, subject to certain limits. The obligations of the
formerly related parties under the YMA was limited to $2,800,000.
In April 1997, the Company received the final settlement of approximately
$1,421,000 due under the YMA. Total 1997 amounts received under this
agreement were $1,517,000. The proceeds, which prior to receipt were not
reflected in the consolidated financial statements of the Company, were
used to reduce bank line debt. These amounts were not considered operating
income or net income, and were applied against the carrying value of the
properties purchased from the formerly related parties.
E. PROPERTY TRANSACTIONS:
During the nine months ended September 30, 1997, the Company sold two
outlot parcels for total proceeds of approximately $344,000 resulting in a
book gain of approximately $130,000.
F. SUBSEQUENT EVENT:
On October 28, 1997, the Company declared a cash dividend of $.22 per
common share payable on November 26, 1997 to shareholders of record on
November 12, 1997.
8
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- -------------------------------------------------------
LIQUIDITY AND CAPITAL RESOURCES:
The Company's primary sources 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, 1997, 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.
The Company had a debt-to-equity ratio of .80 to 1 at September 30, 1997,
compared to .81 to 1 at December 31, 1996, based upon the ratio of mortgages and
notes payable to total shareholders' equity. The Company's ratio of debt to
total market capitalization was 41% at September 30, 1997 and 45% at December
31, 1996.
INVESTING ACTIVITIES:
During the nine months ended September 30, 1997, net cash flows from investing
activities were $1,220,000. Net cash provided from the sale of real estate
totaled $344,000 for the nine months ended September 30, 1997. In addition, the
Company received $1,517,000 in proceeds related to the Company's Yield
Maintenance Agreement with the former related parties and $111,000 principal
repayments on Notes Receivable with the former related parties. Also during
these nine months, the Company paid cash of approximately $752,000 related to
lease fees and capital improvements.
FINANCING ACTIVITIES:
During the nine months ended September 30, 1997, net cash flows used in
financing activities were $7,951,000 which consisted of dividends paid of
$5,467,000 and reduction of debt of $2,405,000. In addition, loan fees of
$79,000 were paid during the third quarter ended September 30, 1997.
RESULTS OF OPERATIONS:
Net income for the nine months ended September 30, 1997 was $3,456,000 or $.42
per share compared to $2,885,000 or $.35 per share for the nine months ended
September 30, 1996, an increase of $571,000 or 20%. Net income for the three
months ended September 30, 1997 was $1,130,000 or $.14 per share, compared to
$769,000 or $.09 per share for the three months ended September 30, 1996, an
increase of $361,000 or 47%.
The increase in net income for the three months ended September 30, 1997
compared to the three months ended September 30, 1996 was due primarily to
the loss on sale of real estate of $289,000 during the third quarter of 1996,
the increase in rental income resulting from recent expansion activities, the
impact of new leases, and a decrease in the Company's weighted average cost
of funds. Also impacting the change was an increase in the equity in earnings
of Mid-America Bethal Limited Partnership of $48,000 for the three months
ended September 30, 1997, compared to the same period during 1996.
9
<PAGE>
The increase in net income for the nine months ended September 30, 1997,
compared to the nine months ended September 30, 1996, was primarily due to the
gain on sale of real estate of $130,000 during the nine months ended September
30, 1997, compared to a loss on sale of real estate of $289,000 recorded during
the nine months ended September 30, 1996. Other large contributing items
included a decrease in interest expense of $175,000 and an increase of $70,000
in the equity in earnings of Mid-America Bethal Partnership for the nine months
ended September 30, 1997, compared to the same period in 1996.
RENTAL INCOME:
Rental income for the nine and three months ended September 30, 1997 was
$13,027,000 and $4,321,000, respectively, compared to $12,852,000 and
$4,257,000, respectively, for the nine and three months ended September 30,
1996, an increase of $175,000 and $64,000 for the nine and three months ended
September 30, 1997 compared to the same period in 1996. The increase was due
primarily to the effect of recent expansion activities, the impact of new leases
and an increase in percentage rents.
REIMBURSEMENT INCOME:
Reimbursement income for the nine and three months ended September 30, 1997 was
$3,783,000 and $1,310,000, respectively, compared to $3,864,000 and $1,279,000
for the nine and three months ended September 30, 1996. The decrease of $81,000
for the nine months ended September 30, 1997 compared to the same period in 1996
was attributable to a decrease in the year end calculation adjustment of
tenants' pro rata share of taxes, insurance and common area maintenance costs.
The increase of $31,000 for the three months ended September 30, 1997, compared
to 1996 reflected the increase in base rents and timing of certain reimbursable
expenses.
PROPERTY MANAGEMENT INCOME:
Property management income, which primarily consists of lease and property
management fees from properties managed for Mid-America Bethal, was $130,000 and
$42,000, respectively, for the nine and three months ended September 30, 1997
compared to $153,000 and $51,000, respectively, for the nine and three months
ended September 30, 1996, a decrease of $23,000 and $9,000 for the nine and
three months ended September 30, 1997 compared to the same period in 1996. The
decrease was attributable to fewer new leases at properties owned by Mid-America
Bethal during the three and nine months ended September 30, 1997 compared to the
same period in 1996.
OTHER INCOME:
Other income for the nine and three months ended September 30, 1997 was $478,000
and $142,000, respectively, compared to $566,000 and $149,000 for the nine and
three months ended September 30, 1996. The decrease was primarily attributable
to a prior year payment from the Company's investment in the Valley Park Centre
received in the first quarter of 1996.
OTHER PROPERTY COSTS:
Other property costs for the nine and three months ended September 30, 1997 were
$2,876,000 and $999,000, respectively, compared to $2,739,000 and $1,025,000,
respectively, for the nine and three months ended September 30, 1996. The
increase of $137,000 for the nine months ended September 30, 1997 compared to
the same period in 1996 was primarily attributable to an increase in legal and
professional fees related to litigation arising from the normal course of
business and an increase in weather related expenses.
10
<PAGE>
INTEREST EXPENSE:
Interest expense for the nine and three months ended September 30, 1997 was
$4,180,000 and $1,381,000, respectively, compared to $4,355,000 and
$1,438,000, respectively, for the nine and three months ended September 30,
1996, a decrease of $175,000 and $57,000, respectively. The Company's
average total debt was $62,657,000 during the nine months ended September 30,
1997 compared to $65,546,000 during the nine months ended September 30, 1996.
The Company's weighted average cost of funds was 8.9% during the first nine
months of 1997 and 1996.
REAL ESTATE TAXES:
Real estate tax expense for the nine and three months ended September 30, 1997
was $2,224,000 and $738,000, respectively, compared to $2,267,000 and $674,000,
respectively, for the nine and three months ended September 30, 1996. The
decrease for the nine months ended September 30, 1997, and the increase for the
three months ended September 30, 1997, compared to 1996 was attributable to
successfully negotiating a reduction of taxable value at several of the
properties, coupled with a decrease in the tax assessed levy at several
properties, offset by timing of payments between quarters.
ADMINISTRATIVE EXPENSES:
Administrative expenses for the nine and three months ended September 30, 1997
were $1,000,000 and $299,000, respectively, compared to $1,034,000 and $281,000,
respectively, for the nine and three months ended September 30, 1996, a decrease
of $34,000 for the nine months ended September 30, 1997 compared to the same
period in 1996. The decrease related primarily to certain one time charges of
approximately $10,000 in the nine months ended September 30, 1996, coupled with
timing of certain general and administrative expenses.
PROPERTY MANAGEMENT AND LEASING EXPENSES:
Property management expenses for the nine and three months ended September 30,
1997 were $871,000 and $281,000, respectively, compared to $797,000 and
$254,000, respectively, for the nine and three months ended September 30, 1996.
This was an increase of $74,000 and $27,000 for the nine and three months ended
September 30, 1997. The increase was primarily attributable to an increase in
leasing and marketing activities.
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 statement of operations, 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, 1997
were $7,333,000 and $2,481,000 or $.89 and $.30 per share respectively, compared
to $7,122,000 and $2,361,000 or $.86 and $.29 per share, respectively, for the
nine and three months ended September 30, 1996.
11
<PAGE>
Funds From Operations is computed as follows:
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
1997 1996 1997 1996
----------------- -------------------
(In Thousands Except Per Share Data)
<S> <C> <C> <C> <C>
Net Income $3,456 $2,885 $1,130 $ 769
Depreciation and Amortization (1) 3,590 3,620 1,210 1,175
(Gain)Loss\ on Sale of Real Estate (2) (130) 289 -- 289
Proceeds from Investment in Valley Park Centre -- (90) -- --
Investment in Mid-America Bethal:
Equity in Earnings (785) (715) (267) (219)
Equity in Funds From Operations (3) 1,202 1,133 408 347
------ ------ ------ ------
Funds From Operations $7,333 $7,122 $2,481 $2,361
====== ====== ====== ======
Funds From Operations Per Share $ .89 $ .86 $ .30 $ .29
------ ------ ------ ------
------ ------ ------ ------
</TABLE>
- ----------------
(1) Depreciation and Amortization for the nine months ended September 30,
1997 and 1996, respectively, consisted of real property depreciation of
$3,346,000 and $3,344,000, lease fee amortization of $168,000 and
$200,000, and intangible amortization of $76,000 and $76,000.
(2) The 1997 Gain on Sale of Real Estate consists of a $130,000 gain on the
sale of two outlot parcels. The 1996 loss consists of $314,000 loss on
sale of Westview Shopping Center and a $25,000 gain on the sale of an
outlot.
(3) Equity in Funds From Operations of Mid-America Bethal for the nine
months ended September 30, 1997 and 1996, respectively, included real
property depreciation of $404,000 and $403,000, and lease fee
amortization of $13,500 and $14,500.
The Funds From Operations reported above reflect recommendations contained in
the Funds From Operations White Paper (the "FFO White Paper") 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 on and after January 1, 1996.
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 %
--------------------------- --------------------------- ---------------------------
9/30/97 12/31/96 9/30/96 9/30/97 12/31/96 9/30/96 9/30/97 12/31/96 9/30/96
------- -------- ------- ------- -------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mid-America Realty Investments, Inc.:
Neighborhood shopping centers 1,812 1,812 1,781 1,721 1,698 1,680 95% 94% 94%
Enclosed malls 888 882 869 846 840 825 95% 95% 95%
------- -------- ------- ------- -------- -------- ------- -------- -------
2,700 2,694 2,650 2,567 2,538 2,505 95% 94% 95%
Mid-America Bethal L.P. (2) 538 538 539 496 501 492 92% 93% 91%
------- -------- ------- ------- -------- -------- ------- -------- -------
3,238 3,232 3,189 3,063 3,039 2,997 95% 94% 94%
------- -------- ------- ------- -------- -------- ------- -------- -------
------- -------- ------- ------- -------- -------- ------- -------- -------
</TABLE>
- ----------------
(1) Leased space represents the amount 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 6. 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, 1997.
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 3, 1997
- ------------------------
Jerome L. Heinrichs,
Chief Executive Officer
/s/ Dennis G. Gethmann Date: November 3, 1997
- -----------------------
Dennis G. Gethmann
President and Principal Financial Officer
14
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION PAGE
------- ----------- ----
27 Financial Data Schedule................................... 16
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 2,519
<ALLOWANCES> 227
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0
0
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</TABLE>
