TYPE 10-Q
SEQUENCE: 1
DESCRIPTION: FIRST QUARTER REPORT FOR 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2000
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 001-13915
---------
UNITED INVESTORS REALTY TRUST
(Exact name of Registrant as Specified in its Charter)
TEXAS 76-0265701
------------------------ ----------------------
(State of Incorporation) (IRS Employer
Identification Number)
5847 San Felipe, Suite 850
Houston, TX 77057
-----------------------------------------------------
(Address of Principal Executive Offices and Zip Code)
(713) 781-2860
---------------------------------------------------
(Registrant's Telephone Number Including Area Code)
Number of shares outstanding of the issuer's Common Shares, no par value, as of
May 11,2000: 8,979,392 shares.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes __X__ No_____
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
United Investors Realty Trust
Consolidated Balance Sheets
ASSETS
March 31,
2000 December 31,
(Unaudited) 1999
------------ -------------
<S> <C> <C>
Investment real estate:
Land ......................................................... $ 48,720,036 $ 48,964,963
Buildings and improvements ................................... 127,304,433 127,232,647
Property under development ................................... 1,461,136 1,105,343
---------- ----------
177,485,605 177,302,953
Less accumulated depreciation .................................... (12,245,774) (11,164,573)
---------- ----------
Investment real estate, net ...................................... 165,239,831 166,138,380
Cash and cash equivalents ........................................ 4,002,483 1,807,791
Accounts receivable, net of allowance ............................ 3,100,138 2,876,523
Prepaid expenses and other assets ................................ 4,311,338 4,143,068
---------- ----------
Total Assets ................................................. $176,653,790 $174,965,762
============ ============
LIABILITIES, MINORITY INTEREST, AND COMMON SHAREHOLDERS' EQUITY
Liabilities:
Mortgage notes payable ........................................... $ 53,497,282 $ 50,043,083
Capital lease obligations ........................................ 9,796,869 11,529,745
Construction note payable ........................................ 4,878,132 5,198,132
Short-term notes and lines of credit ............................. 25,557,800 22,953,000
Accounts payable,accrued expenses
and other liabilities ........................................... 4,367,097 5,887,733
Accrued distributions............................................. 1,944,436 1,945,673
---------- -------------
Total liabilities ................................................ 100,041,616 97,557,366
---------- -------------
Minority interest in consolidated partnerships.................... 2,714,102 2,745,791
---------- -------------
Commitments and contingencies
Common shareholders' equity:
Common shares of beneficial interest, no par value,
500,000,000 shares authorized; 9,514,889 shares issued;
9,043,892 and 9,511,392 shares outstanding in 2000 and 1999,
respectively ................................................. 87,226,397 87,233,173
Accumulated deficit.................................................. (9,477,742) (8,517,310)
---------- -------------
77,748,655 78,715,863
Less:
Treasury shares, at cost, 470,997 and 3,497 in
2000 and 1999, respectively ...................................... (3,238,227) (3,238,227)
Shareholder notes receivable...................................... (612,356) (815,031)
---------- -------------
Total common shareholders' equity ................................. 73,898,072 74,662,605
---------- -------------
Total liabilities, minority interest and
common shareholders' equity ...................................... $176,653,790 $174,965,762
============ ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
United Investors Realty Trust
Consolidated Statements of Operations
(unaudited)
Three Months Ended
--------------------------
31-Mar-00 31-Mar-99
<S> <C> <C>
Revenues:
Rental ....................................... $4,939,876 $4,896,277
Recoveries from tenants ...................... 1,421,533 1,415,521
Interest and other income .................... 77,439 41,240
--------- ----------
Total revenues ............................ 6,438,848 6,353,038
Property operating ............................. 691,238 731,821
Property taxes ................................. 986,394 871,152
Property management fees ....................... 51,442 95,533
General and administrative .................... 464,718 367,583
Advisory fees .................................. 312,232 304,934
Depreciation and amortization .................. 1,120,185 1,039,232
Interest ....................................... 1,921,571 1,516,741
---------- ----------
Total expenses ........................... 5,547,780 4,926,996
Income before minority interest, and
gain on sale of real estate ............... 891,068 1,426,042
Minority interest in income of consolidated
partnerships .................................. (28,974) (42,254)
Gain on sale of real estate ................... 121,910 -
---------- ----------
Net income ..................................... $984,004 $1,383,788
========== ==========
Basic and diluted per share amounts:
Net income .................................... $ 0.11 $ 0.15
========== ==========
Basic and diluted weighted average shares
outstanding ................................... 9,043,892 9,514,850
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
United Investors Realty Trust
Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
-----------------------
31-Mar-00 31-Mar-99
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income ................................................. $ 984,004 $ 1,383,788
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation ............................................. 1,086,665 991,103
Amortization ............................................. 81,095 62,448
Minority interest in income of consolidated partnerships . 28,974 42,254
Gain on sale of real estate .............................. (121,910) -
Changes in operating assets and liabilities .............. (1,766,240) (561,253)
---------- ----------
Net cash provided by operating activities ............. 292,588 1,918,340
---------- ----------
Cash flows from investing activities:
Purchase of and capital improvements to investment
real estate ............................................. (637,767) (3,236,758)
Proceeds from sale of real estate ........................ 493,375 -
Application of escrow deposits ........................... - 25,000
---------- ----------
Net cash used in investing activities ................. (144,392) (3,211,758)
---------- ----------
Cash flows from financing activities:
Proceeds from mortgage note payable ...................... 3,650,000 -
Proceeds from short-term notes payable ................... 2,604,800 -
Collections from notes receivable ........................ 39,669 -
Principal payments on mortgage notes payable.............. (195,801) (254,441)
Payments on capital lease obligations .................... (1,654,676) (24,980)
Proceeds from construction note payable .................. - 1,073,714
Principal payments on construction note payable........... (320,000) -
Offering costs ........................................... (6,776) (29,060)
Payment of distributions ................................. (1,945,673) (2,045,702)
Distribution to holders of minority interests ............ (60,662) (111,840)
Payment of loan acquisition costs ........................ (64,385) -
Purchase of treasury shares .............................. - (35,625)
---------- ----------
Net cash provided by (used in)financing activities .... 2,046,496 (1,427,934)
---------- ----------
Increase (decrease) in cash and cash equivalents ............. 2,194,692 (2,721,352)
Cash and cash equivalents at beginning of period ............. 1,807,791 5,486,095
---------- ----------
Cash and cash equivalents at end of period ................... $ 4,002,483 $ 2,764,743
---------- ----------
Supplemental disclosures
Cash paid for interest................................. 1,875,707 1,502,422
Assumption of property tax and security deposit
liabilities in connection with acquisition of
properties ............................................ - 4,913
Purchase of treasury shares by optionees with
purchase money notes .................................. - 815,031
Reduction of capital lease obligation.................. 78,200 -
Forgiveness of shareholder notes receivable............ 163,006 -
Accrued distributions.................................. 1,944,436 1,945,673
</TABLE>
<PAGE>
United Investors Realty Trust and Subsidiaries
Notes to Consolidated Financial Statements
1. Organization and Basis of Presentation
Organization
United Investors Realty Trust and Subsidiaries (the "Company"), a Texas real
estate investment trust ("REIT") is engaged in the acquisition, development, and
management of neighborhood and community shopping centers in the Sunbelt states.
The tenants of the Company's shopping centers include national and regional
supermarkets and drug stores and other national, regional, and local retailers
that provide basic necessity and convenience goods and services to the
surrounding population.
The Company operated from 1989 until 1998 as a private REIT. On March 13, 1998,
the Company completed an initial public offering (the "IPO") of 7,600,000 common
shares of beneficial interest. In April 1998, the Company issued another
1,000,000 common shares of beneficial interest pursuant to the exercise of the
underwriters' overallotment options. Prior to the IPO, the Company had
outstanding approximately 915,000 shares.
Basis of Presentation
These unaudited consolidated financial statements include the accounts of the
Company, its subsidiaries and partnerships in which it owns controlling
interests. The accompanying consolidated financial statements have been prepared
by the Company's management in accordance with generally accepted accounting
principles for interim financial information and the instructions to Form 10-Q
and do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and cash flows in
conformity with generally accepted accounting principles for complete financial
statements. These statements should be read in conjunction with the Company's
audited financial statements and notes thereto included in the Company's Annual
Report on Form 10-K dated March 15, 2000. In the opinion of management, the
financial statements contain all adjustments (which consist of normal and
recurring adjustments) necessary for a fair presentation of financial results
for the interim periods.
2. Investment in Properties
At March 31, 2000, the Company owned controlling interests in 28 shopping center
properties containing approximately 3,200,000 total square feet of gross
leaseable area ("GLA"), of which the Company owned approximately 2,400,000
square feet of GLA.
In July 1999, the Company entered into a master lease agreement with the seller
of the Spring Shadows Albertson's Center in Houston, Texas. The center is
comprised of approximately 100,000 square feet of GLA, of which the Company
purchased approximately 37,000 square feet and 63,000 square feet is owned and
occupied by Albertson's. Pursuant to this agreement the Company assumed all of
the economic risks and rewards of operating the 37,000 square foot shopping
center until February 29, 2000, at which time the Company, for no additional
consideration, obtained fee title to the shopping center.
As of March 31, 2000, 22% of the Company's owned GLA was in the Houston, Texas
area, 14% was in the Dallas, Texas area, 20% was elsewhere in Texas, 26% was in
Florida, 14% was in Arizona, and 4% was in Tennessee.
3. Notes and Mortgages Payable
The Company's mortgage notes payable consist of fixed-rate debt with outstanding
principal balances aggregating $53,497,282 at March 31, 2000. The interest rates
range from 7.5% to 9.3% with a weighted average interest rate of 8.58%. The
notes mature at various times through 2018 with a weighted average term to
maturity of 7.6 years.
Property under capital leases, consisting of two shopping centers, aggregated
$13.8 million at March 31, 2000 and is included in investment real estate.
Depreciation of the property under capital leases is combined with depreciation
of owned properties in the accompanying financial statements. Future minimum
lease payments under these capital leases total $15.1 million, with annual
payments due of approximately $.8 million in each of 2000 through 2004, and
$11.3 million thereafter. The amount of these total payments representing
interest is approximately $5.3 million.
The Company has a $36,500,000 revolving credit agreement with a bank. Borrowings
are collateralized by first mortgage deeds of trust on six shopping centers and
bear interest at 154.45 basis points over selected London Interbank Offered
Rates. The facility expires on August 30, 2001. The Company may elect to extend
it for one additional year upon notification to the lender and payment of an
extension fee equal to 0.25% of the aggregate amount outstanding at such date.
At March 31, 2000 the Company had borrowed $25,557,000 under the line at a
weighted average rate of approximately 7.8% under LIBOR contracts ranging from
one to three months. In addition, the Company had issued letters of credit
aggregating approximately $3,841,000 (see Letters of Credit below).
One of the credit agreement covenants limits total company debt to not more than
50% of a formula-based calculation of total asset value. As of March 31, 2000,
total debt represented approximately 58% of such value. The Company has begun
discussions with the lender concerning the modification of the loan terms to
increase this limit to 60% and cure the default. The Company may add one or more
unencumbered properties to the lender's pool of collateral properties to
facilitate the modification. In the event the lender is unwilling to modify the
agreement, the lender could accellerate the debt.
The lender has indicated the willingness to modify the covenant and accordingly,
management believes the Company will be able to successfully modify the credit
agreement. In the event the Company is unsuccessful, management believes the
credit agreement can be refinanced with other lenders, although at higher
interest rates.
4. Per Share Data
Basic earnings per share is computed based upon the weighted average number of
common shares outstanding during the period presented. Diluted earnings per
share is computed based upon the weighted average number of common shares and
dilutive common share equivalents outstanding during the periods presented. The
number of diluted shares related to outstanding share options is computed by
application of the Treasury share method. The following table sets forth the
computation of basic and diluted earnings per share:
<TABLE>
<CAPTION>
Three Months
Ended March 31,
----------------------------
Weighted Average Shares 2000 1999
- ----------------------- ---- ----
<S> <C> <C>
Basic EPS ......................... 9,043,892 9,514,850
Effect of dilutive securities:
Employee share options ........... -- --
---------- ----------
Diluted EPS ....................... 9,043,892 9,514,850
========== ==========
Distributions per share declared .. $0.215 $0.215
========== ==========
</TABLE>
5. Advisory Agreement
The Company is managed and advised by an entity (the "Investment Manager")
affiliated with the Company's chairman. The Investment Manager is paid a fee
based on an amount equivalent to 6.5% of earnings before interest, taxes,
depreciation, amortization, and advisory fees. The rate was reduced from 6.8%
effective July 1, 1999. In addition, the Company reimburses the Investment
Manager for the salaries, benefits, and occupancy costs of employees who perform
property management, leasing, property level accounting, and other operational
duties for the Company.
During the three months ended March 31,2000, the Company paid the Investment
Manager fees of approximately $296,000, and reimbursed the Investment Manager
$229,000 for salaries, benefits, occupancy, and other operational costs. For the
corresponding periods in 1999 the Investment Manager fees were $288,000 and the
salaries, benefits, occupancy, and other operational costs were $162,000.
In each of the first quarters of 2000 and 1999, the Company also forgave loans
to the Investment Manager in the amount of $16,500. Such loans were granted in
to enable the Advisor to exercise previously granted options (see Note 6).
6. Incentive Share Option Plan
During 1998, the Company granted options to purchase 337,000 common shares to
certain officers, employees, Trust Managers, and the Investment Manager. The
recipients are eligible to exercise 25% of their options each January 1,
beginning in 1999. The exercise price is $10.00 per share, up to 100% of which
may be borrowed from the Company. Such loans are included in shareholder notes
receivable at March 31, 2000. Loans are repayable over four years and require
annual payments of 25% of the initial principal and interest calculated at the
Applicable Federal Rate published by the IRS. The Applicable Federal Rate as of
January 1, 1999 was 4.64%.
With respect to options that became exercisable on January 1, 1999, the Board of
Trust Managers elected to forgive 80% of the borrowed amount. The loan will be
forgiven in equal installments over a four-year period, at the rate of 20% per
year, conditioned upon continued employment by the Company or the Investment
Manager. Included in general and administrative expenses for the three months
ended March 31, 2000 and 1999 is $24,251 which represents the recognition of
such loan forgiveness with respect to loans made to the Company's officers and
employees. Included in advisory fees for the three months ended March 31, 2000
and 1999 is $16,500, which represents the recognition of such loan forgiveness
with respect to loans made to the Investment Manager.
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion should be read in conjunction with the accompanying
condensed consolidated financial statements and notes thereto. Historical
results and trends which might appear should not be taken as indicative of
future operations.
We have been operating since 1989 as a Texas REIT engaged in the acquisition,
ownership, management, leasing and redevelopment of community shopping centers
in the Sunbelt region of the United States. We focus on properties anchored
primarily by supermarkets, drug stores and major retail tenants located in this
region.
We owned controlling interests in 28 neighborhood and community shopping centers
at March 31, 2000. Leases for our properties range from less than a year for
smaller spaces to over 25 years for larger tenants. Leases generally provide for
minimum lease payments plus payments for the tenants' portion of taxes,
insurance, and common area maintenance expenses; some leases also provide for
contingent payments based on a tenant's sales volume.
RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 2000 Compared to Quarter Ended March 31, 1999
Our property portfolio increased, on a gross leaseable area ("GLA") basis, by
approximately 172,000 square feet, or 8%, from March 31, 1999 to March 31, 2000.
However, revenue increased by only $86,000, or 1%, and net earnings decreased by
approximately $398,000, or 29%, for the three months ended March 31, 2000
compared to the same period in 1999.
Revenue was negatively affected by a higher vacancy level (11% in 2000 compared
to 5% in 1999) resulting primarily from the bankruptcies of several large
tenants. As of March 31, 2000, we have not re-leased approximately 133,000
square feet of GLA that was vacated by these tenants. We are not actively
marketing approximately 40,000 square feet of this space because we are
considering alternative strategies for the shopping center, which include
demolition and redevelopment of some or all of the center. We continue to market
the remaining vacancies, and believe that when leased, the space could
contribute as much as $600,000 in additional annual earnings; however, there is
no assurance that we will be able to release the space in the near future.
We do not anticipate significant increases in revenue from sources other than
these spaces until early in 2000's fourth quarter. At that time, we anticipate
opening the new McMinn Center Ingles grocery store, a 60,000 square foot
replacement of Ingle's present 27,000 square foot location in the same center.
We believe the net effect on revenue of this opening will initially be
approximately $20,000 of additional revenue each month. We also believe that the
FishHawk Kash N Karry Shopping Center will open in 2000's fourth quarter. We own
a 50% interest in this project, and believe that our share of its revenue will
approximate $30,000 per month when it is substantially leased.
Higher interest rates and other expenses also negatively affected net earnings
in 2000's first quarter compared to the same quarter in 1999. Increases in
interest expense were a result of additional total debt (average of $91,000,000
in 2000 versus $64,000,000 in 1999) and increased interest rates on variable
rate debt (average of $24,000,000 in 2000 versus $7,500,000 in 1999). We
anticipate additional interest expense increases due to approximately $4,500,000
in debt that we added during 2000's first quarter and potential rate increases
that many analysts believe are likely. We also presently intend to substantially
finance our FishHawk center upon completion, and accordingly, our interest
expense may increase at that time.
Advisory fees were relatively flat from 1999's to 2000's first quarter. Because
advisory fees generally increase or decrease with revenue, we believe that
advisory fees will remain stable until our revenue is positively affected by
releasing our large vacant spaces or completion of the development projects now
under construction.
General and administrative expenses increased by approximately $95,000 in 2000's
first quarter as compared to 1999. There are generally two primary reasons for
the increase.
First, during 1999's first quarter, most of our properties were managed by third
party property management companies, and the cost of these contracts ($95,500 in
1999's first quarter) were included in property operating expenses. Subsequent
to March 31, 1999 we converted to internal property management for all of our
Texas properties and our outside property management fees decreased to $51,000
in the first quarter of 2000. In order to assume these responsibilities, we
added salaried property management, leasing, and accounting personnel whose
costs are now included in general and administrative expense.
In addition, beginning in the second quarter of 1999, we started reimbursing the
Investment Manager for an allocated portion of its rent expense and other
occupancy and office services costs. Accordingly, general and administrative
expenses in the first quarter of 2000 include rent expense (approximately
$18,000) and other allocated office overhead expenses (approximately $20,000)
that were not incurred in 1999's first quarter.
Liquidity and Capital Resources
Until and unless we are able to increase our revenue, we believe demands for our
capital will exceed our ability to meet those demands solely from operating cash
flows. However, we believe there are other sources of capital available to us,
including proceeds from possible property sales. We have identified several
properties that we believe no longer have the investment characteristics we
desire and we are attempting to sell these properties. In 1999, these properties
accounted for approximately $4,100.00 in revenue and had a carrying value of
approximately $25,000,000 at March 31, 2000. We believe the sale of some or all
of these properties may provide additional resources to enable us to meet the
demands on our capital described below. We also believe we are able to raise
debt and some forms of equity or joint venture capital, but presently we believe
these sources may be relatively expensive. Demands on our capital are described
below.
In order to maintain the tax benefits of operating as a REIT, we are required to
distribute to our shareholders at least 95% (90% beginning in 2001) of our
taxable income. The Board of Trust Managers has distributed in excess of that
amount since our initial public offering in March 1998, and presently intends to
maintain the quarterly distribution level of $0.215 per share.
As previously noted, several large tenants have vacated their leased spaces and
we have not yet released these spaces. We anticipate that releasing three of the
four large spaces will require approximately $2,800,000 in construction costs,
other tenant inducement costs, and leasing commissions. In addition, if we elect
to redevelop the shopping center mentioned above, we will need an undetermined,
but substantial amount of capital, and we may terminate existing leases which
will further reduce our revenue.
We are in the development and construction phases of two new centers, in one of
which we own a 50% interest. Our portion of the costs of these two projects
approximates $6,000,000.
Our Board of Trust Managers has approved a share repurchase program for the
possible repurchase of as many as 1,000,000 common shares of beneficial
interest. Our Board believes that at recent market prices, our shares represent
a compelling real estate investment, and to the extent capital is available and
prices are attractive, we intend to execute the repurchase plan.
Cash flow from operating activities was $293,000 in the first quarter of 2000,
compared to $1,918,340 in the comparable year earlier quarter. The reduction
from 1999 to 2000 is substantially the result of the timing of our payment of
property taxes, increased interest expense and the vacancies of several large
tenants.
As described in Note 3 to the accompanying financial statements, we have a
$36,500,000 revolving credit agreement with a bank. As of March 31, 2000 we had
drawn approximately $29,400,000 (including unfunded letters of credit
approximating $3,400,000) under the line. This amount represents approximately
58% of a formula based calculation of our assets' values. Because the credit
agreement limits our borrowings to 50% of this value, we will not be able to
draw any additional amounts under the credit agreement unless the bank modifies
the agreement.
Funds From Operations
Following is a reconciliation of net income to funds from operations and
funds available for distribution.
<TABLE>
<CAPTION>
United Investors Realty Trust
Calculation of Funds From Operations
and Funds Available for Distribution
Three Months Ended
31-Mar-00 31-Mar-99
---------------------------
Funds from operations:
<S> <C> <C>
Net income .................................. $984,004 $1,383,788
Plus real estate related
depreciation and amortization ............ 1,120,185 1,008,698
Less gain on sale of real estate .......... (121,910) -
Plus minority interest in down REIT
partnerships ............................. 28,974 40,991
---------- ----------
Funds from operations ....................... $2,011,253 $2,433,477
========== ==========
Funds from operations per share and downReit
unit ....................................... $ 0.22 $ 0.25
========== ==========
Funds available for distribution:
Funds from operations ....................... $2,011,253 $2,433,477
Plus amortization of financing costs ........ 47,575 43,731
Less tenant improvements and leasing
commissions ................................ (84,902) (96,665)
Less non-recoverable recurring capital
improvements ............................... (20,732) (41,720)
Less straight line rents, net of
$80,000 bad debt write-off in
March 1999 ................................. (99,123) (15,615)
Plus forgiveness of option loans ............ 40,751 40,751
Other ....................................... - 28,676
---------- ----------
Funds available for distribution ............ $1,894,822 $2,392,635
========== ==========
Funds available for distribution per share
and downReit unit .......................... $ 0.20 $ 0.24
========== ==========
Basic and diluted weighted average number of
shares and downReit partnership units ...... 9,325,486 9,796,444
</TABLE>
Note 1-Definitions
The Company considers funds from operations to be an alternate measure of the
performance of an equity REIT since such measure does not recognize depreciation
and amortization of real estate assets as operating expenses. Management
believes that reductions for these charges are not meaningful in evaluating
income-producing real estate, which historically has not depreciated. The
National Association of Real Estate Investment Trusts defines funds from
operations as net income plus depreciation and amortization of real estate
assets, less gains and losses on sales of properties. Funds from operations does
not represent cash flows from operations as defined by generally accepted
accounting principles and should not be considered as an alternative to net
income as an indicator of the Company's operating performance or to cash flows
as a measure of liquidity.
Funds available for distribution is FFO adjusted for the cash effects of certain
transactions. In accordance with generally accepted accounting principles, the
Company capitalizes and depreciates or amortizes over various useful lives
expenditures for tenant improvements, leasing commissions, and recurring
improvements to fixed assets. To the extent these amounts do not improve the
value of the real estate or are not recoverable as additional rent, the Company
believes that FFO as a measure of performance is more meaningful if it is
adjusted for these amounts. In addition, adjustments are made for non-cash
charges related to the forgiveness by the Company of loans made to facilitate
the exercise of options, and for cash receipts from the seller of one of the
Company's shopping centers.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
The Company has limited exposure to financial market risks, including changes in
interest rates. An increase or decrease of 100 basis points in interest rates
would have approximately a $280,000 effect on interest expense based on the
amount of variable rate debt outstanding at March 31, 2000. All such variable
rate borrowings have original maturities through 2001. The Company does not have
any significant foreign operations and thus are not materially exposed to
foreign currency fluctuations.
PART II - Other Information
Item 1 - Legal Proceedings - None
Item 2 - Changes in Securities and Use of Proceeds - None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submisson of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
The Company's Current Report on Form 8-K dated May 12, 2000 for
the purpose of disclosing the termination of strategic talks.
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.
UNITED INVESTORS REALTY TRUST
Dated: May 12, 2000 /s/ R. Steven Hamner
----------------------------
R. Steven Hamner,
Vice President,Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000868196
<NAME> United Investors Realty Trust
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-START> Jan-1-2000
<PERIOD-END> Mar-31-2000
<EXCHANGE-RATE> 1.00
<CASH> 4,002,483
<SECURITIES> 0
<RECEIVABLES> 3,100,138
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 11,413,959
<PP&E> 177,485,605
<DEPRECIATION> (12,245,774)
<TOTAL-ASSETS> 176,653,790
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0
0
<COMMON> 83,988,170
<OTHER-SE> (10,090,098)
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<CGS> 0
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<INCOME-PRETAX> 984,004
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</TABLE>
