<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: (DATE OF EARLIEST EVENT REPORTED) NOVEMBER 6, 1998
----------------
CENTERTRUST RETAIL PROPERTIES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
COMMISSION FILE: 1-12588
<TABLE>
<S> <C>
MARYLAND 95-4444963
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER
OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
</TABLE>
3500 SEPULVEDA BOULEVARD
MANHATTAN BEACH, CALIFORNIA 90266
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (310) 546-4520
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
ITEM 5. OTHER EVENTS
On November 6, 1998 the Registrant made available additional financial and
operational information concerning the Registrant, CenterTrust Retail
Properties, Inc., and properties owned as of September 30, 1998, in the form
of a Supplemental Information package, a copy of which is included as an
exhibit to this filing. The Supplemental Information package is available upon
request as specified therein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements:
None
Exhibits:
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION PAGE NUMBER
------- ----------- -----------
<C> <S> <C>
99 Supplemental Information as of September 30, 1998........... 4
</TABLE>
2
<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.
Dated: November 6, 1998
CENTERTRUST RETAIL PROPERTIES, INC.
/s/ Stuart J. S. Gulland
By: _________________________________
Stuart J. S. Gulland
Senior Vice President and
Chief Financial Officer
3
<PAGE>
EXHIBIT 99
CENTER TRUST
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 1998
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Company Profile.......................................................... 5
Financial Highlights..................................................... 6-7
Same Property Net Operating Income....................................... 8
Summary of Leasing Activity -- Community Shopping Centers................ 9
Property Acquisitions.................................................... 10
Portfolio Detail......................................................... 11
Portfolio Summary -- by Region........................................... 12-16
Lease Expirations -- Overall Portfolio................................... 17
Lease Expirations -- Community Shopping Centers by Region................ 18-19
Tenant Concentration..................................................... 20
Segment Concentration.................................................... 21
Consolidated Income Statements and Reconciliation to Funds From
Operations.............................................................. 22
Balance Sheets........................................................... 23
Summary of Debt Outstanding.............................................. 24
Schedule of Debt Maturities.............................................. 25
</TABLE>
4
<PAGE>
CENTER TRUST
COMPANY PROFILE
SEPTEMBER 30, 1998
Center Trust, a fully integrated, self-managed real estate investment trust,
is a leading developer, owner and manager of retail shopping centers in the
western United States. The Company owns or controls a portfolio of 63 shopping
centers, comprised of 49 community shopping centers, two regional malls and 12
single tenant facilities comprising 12.4 million square feet of total shopping
center gross leasable area (GLA) and 10.2 million square feet of Company owned
GLA. Of the 49 community shopping centers, 19 have been acquired year to date
in 1998 with an additional 8 having been acquired during the later half of
1997, increasing the Company's portfolio of Community Shopping Centers by 4.4
million square feet, or 90%. The Company owns properties in five states,
California, Oregon, Washington, Nevada and Arizona.
The following Supplemental Information was prepared to provide additional
financial, operational and portfolio information as of, and for the quarter
ended, September 30, 1998 for the Company and its portfolio of assets. This
information should be read in conjunction with the Company's 1997 Form 10-K
and 1998 quarterly filings on Form 10-Q.
Certain statements contained in this Supplemental Information package may be
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from what is currently anticipated. Those risks include, among
others, national and local economic, business and real estate conditions that
will, among other things, affect demand for retail properties, availability
and creditworthiness of prospective tenants, the level of lease rents and the
availability of financing for both tenants and the Company, adverse changes in
the real estate markets including, among other things, competition with other
companies, risks of real estate acquisition and development (including the
failure of pending acquisitions to close and successful completion of
renovations), governmental actions and initiatives, and environmental/safety
requirements, and other risks detailed from time to time in Center Trust's SEC
filings.
Copies of this information as well as other public filings are available by
request. Please direct your requests in addition to any questions you have to
Stuart Gulland, Senior Vice President and Chief Financial Officer, Ed Stokx,
Vice President and Controller or Lorie Schkud, Investor Relations, Center
Trust, 3500 Sepulveda Boulevard, Manhattan Beach, California, 90266, or call
(310)546-4520.
5
<PAGE>
CENTER TRUST
FINANCIAL HIGHLIGHTS
AS OF SEPTEMBER 30, 1998
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -----------------
1998 1997 1998 1997
--------- --------- -------- --------
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
Funds From Operations (FFO)
FFO--Basic............................. $ 9,674 $ 5,236 $ 25,401 $ 15,939
FFO--Diluted(1)........................ $ 13,142 $ 8,704 $ 35,803 $ 26,341
FFO per share--Basic................... $ 0.34 $ 0.29 $ 1.01 $ 0.94
FFO per share--Diluted(1).............. $ 0.35 $ 0.32 $ 1.04 $ 1.00
Net Income Available to Common
Shareholders............................ $ 3,392 $ 600 $ 6,742 $ 2,134
Net Income Per Share--Basic and
Diluted............................... $ 0.15 $ 0.04 $ 0.33 $ 0.17
EBITDA................................... $ 22,153 $ 14,487 $ 60,235 $ 43,424
EBITDA per Share--Basic................ $ 0.78 $ 0.80 $ 2.40 $ 2.56
EBITDA per Share--Diluted(1)........... $ 0.59 $ 0.53 $ 1.75 $ 1.65
Funds Available for Distribution (FAD)... $ 9,681 $ 5,725 $ 25,790 $ 17,098
FAD per share--Basic................... $ 0.34 $ 0.32 $ 1.03 $ 1.01
Dividends Per Share...................... $ 0.36 $ 0.36 $ 0.72 $ 0.72
Interest Expense Coverage Ratios.........
Based on EBITDA........................ 1.7 1.6 1.7 1.6
Based on EBITDA--Excluding Debenture
Interest.............................. 2.4 2.6 2.4 2.6
</TABLE>
<TABLE>
<CAPTION>
AS OF
----------------------------------
DECEMBER 31,
SEPTEMBER 30, --------------------
1998 1997 1996
------------- --------- ---------
<S> <C> <C> <C>
PORTFOLIO INFORMATION
Company Owned GLA
Community Shopping Centers................ 7,883,632 4,704,838 3,743,744
Regional Malls............................ 1,178,009 1,152,040 1,131,809
Single Tenant Facilities.................. 1,119,212 1,360,121 1,362,721
Total Company Owned GLA................. 10,180,853 7,216,999 6,238,274
Percentage Leased
Community Shopping Centers................ 92.2% 93.8% 93.0%
Regional Malls............................ 91.2% 91.3% 92.5%
Single Tenant Facilities.................. 100.0% 100.0% 100.0%
Overall Portfolio....................... 92.9% 94.6% 95.8%
Average Base Rent per Square Foot
Community Shopping Centers................ $ 11.11 $ 11.15 $ 10.49
Regional Malls............................ $ 16.21 $ 16.95 $ 16.84
Single Tenant Facilities.................. $ 6.30 $ 5.73 $ 5.86
Overall Portfolio....................... $ 11.12 $ 10.96 $ 10.61
Number of Properties
Community Shopping Centers................ 49 30 22
Regional Malls............................ 2 2 2
Single Tenant Facilities.................. 12 14 14
Overall Portfolio....................... 63 46 38
</TABLE>
- --------
(1) Common shares attributed to the exchangeable and convertible debentures
are included in the weighted average calculation of diluted shares for
purposes of calculating Funds From Operations.
6
<PAGE>
CENTER TRUST
FINANCIAL HIGHLIGHTS
AS OF SEPTEMBER 30, 1998
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------- ---------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
EQUITY INFORMATION
END OF PERIOD
Limited Partnership Units
Outstanding..................... 5,187,712 4,286,456 5,187,712 4,286,456
Common Shares Outstanding at End
of Period(1).................... 25,786,699 14,451,532 25,786,699 14,451,532
---------- ---------- ---------- ----------
Total Units and Common Shares
Outstanding................... 30,974,411 18,737,988 30,974,411 18,737,988
========== ========== ========== ==========
WEIGHTED AVERAGE
Basic Weighted Average Units
Outstanding..................... 5,198,986 4,286,456 4,938,538 4,286,456
Basic Weighted Average Common
Shares Outstanding.............. 23,138,817 13,776,980 20,143,739 12,653,081
---------- ---------- ---------- ----------
Basic Weighted Average Units and
Common Shares Outstanding....... 28,337,803 18,063,436 25,082,277 16,939,537
---------- ---------- ---------- ----------
Weighted Average Common Stock
Equivalents..................... -- 13,536 - 9,762
Number of Common Shares
Attributed to Convertible and
Exchangeable Debentures......... 9,366,611 9,366,611 9,366,611 9,366,611
---------- ---------- ---------- ----------
Diluted Weighted Average Common
Shares and Common Share
Equivalents(2).................. 37,704,414 27,443,583 34,448,888 26,315,910
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
AS OF
--------------------------
SEPTEMBER 30, DECEMBER 31,
1998 1997
------------- ------------
<S> <C> <C>
DEBT-TO-MARKET CAPITALIZATION
Common Stock Price at End of Period................ $ 13.00 $ 17.44
Equity Market Capitalization....................... $ 402,667 356,729
Total Capitalization............................... $1,050,287 $838,988
Total Capitalization Assuming Conversion of
Debentures...................................... $1,003,454 $833,743
Debt-to-Total Capitalization....................... 61.7% 62.8%
Debt-to-Total Capitalization(2).................... 58.2% 63.2%
Debt-to-Total Capitalization Assuming Conversion of
Debentures........................................ 47.7% 41.1%
Debt-to-Total Capitalization Assuming Conversion of
Debentures(3)..................................... 44.2% 44.8%
</TABLE>
- --------
(1) As of September 30, 1998, an affiliate of Lazard Freres Real Estate
Investors, LLC was obligated to purchase an additional 2,260,232 shares of
common stock at $15.00 per share.
(2) Common shares attributed to the exchangeable and convertible debentures
are included in the weighted average calculation of diluted shares for
purposes of calculating Funds From Operations. Such shares are not
included in the determination of diluted EPS as they are antidilutive.
(3) Assuming a consistent stock price of $15.00 per share which represents the
price of stock sold during the respective periods.
7
<PAGE>
CENTER TRUST
SAME PROPERTY ACTIVITY
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------- ----------------
COMMUNITY SHOPPING
CENTERS(1) 1998 1997 % CHANGE 1998 1997 % CHANGE
------------------ ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 8,324 $ 8,186 1.7% $25,083 $24,121 4.0%
Recoveries from
Tenants............... 2,025 2,062 -1.8% 6,306 6,281 0.4%
Other Income........... 153 213 390 426
------- ------- ------- -------
Total Revenues....... 10,502 10,461 0.4% 31,779 30,828 3.1%
Expenses:
Recoverable Operating
Expenses.............. 2,194 2,198 -0.2% 6,723 6,621 1.5%
Other Operating
Expenses.............. 352 341 3.2% 1,053 1,150 -8.4%
------- ------- ------- -------
Total Expenses....... 2,546 2,539 0.3% 7,776 7,771 0.1%
------- ------- ------- -------
Net Operating Income..... $ 7,956 $ 7,922 0.4% $24,003 $23,057 4.1%
======= ======= ======= =======
Total Properties......... 19 19 19 19
======= ======= ======= =======
Percentage Leased........ 94.1% 95.6% 94.1% 95.6%
======= ======= ======= =======
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------- ----------------
REGIONAL MALLS 1998 1997 % CHANGE 1998 1997 % CHANGE
-------------- ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 4,469 $ 4,368 2.3% $13,376 $13,445 -0.5%
Recoveries from
Tenants............... 2,260 1,694 33.4% 6,853 5,736 19.5%
Other Income........... 766 720 2,336 2,306
------- ------- ------- -------
Total Revenues....... 7,495 6,782 10.5% 22,565 21,487 5.0%
Expenses:
Recoverable Operating
Expenses.............. 3,098 2,302 34.6% 8,765 7,039 24.5%
Other Operating
Expenses.............. 25 157 480 967
------- ------- ------- -------
Total Expenses....... 3,123 2,459 27.0% 9,245 8,006 15.5%
------- ------- ------- -------
Net Operating Income..... $ 4,372 $ 4,323 1.1% $13,320 $13,481 -1.2%
======= ======= ======= =======
Total Properties......... 2 2 2 2
======= ======= ======= =======
Percentage Leased........ 91.2% 90.3% 91.2% 90.3%
======= ======= ======= =======
</TABLE>
Same Store properties are those which were owned as of January 1, 1997.
- --------
(1) Excludes Medford Center, Covina Town Square and Empire Center which were
either under development or held for sale. Including these properties,
same property NOI increased 5.9% for the quarter ended September 30, 1998
and 9.7% for the nine months ended September 30, 1998 over the same
periods in the prior year.
8
<PAGE>
CENTER TRUST
SUMMARY OF LEASING ACTIVITY--COMMUNITY SHOPPING CENTERS
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
THREE NINE
MONTHS ENDED MONTHS ENDED
SEPTEMBER SEPTEMBER
30, 30,
------------ ------------
<S> <C> <C>
Space Vacated
Number of Leases................................... 12 39
Gross Leasable Area................................ 26,669 152,775
Base Rent per Square Foot.......................... $ 11.55 $ 10.81
New Leases Executed
Number of Leases Executed.......................... 19 43
Gross Leasable Area................................ 57,341 125,733
Base Rent per Square Foot.......................... $ 11.35 $ 12.84
Lease Renewals Executed
Number of Leases................................... 22 43
Gross Leasable Area................................ 59,359 137,075
New Annual Base Rent per Square Foot............... $ 12.80 $ 14.08
Percentage Change from Prior....................... 4.0% 4.2%
Leases with Contractual Rent Adjustments
Number of Leases................................... 74 225
Gross Leasable Area................................ 177,394 914,251
New Annual Base Rent per Square Foot............... $ 14.50 $ 12.71
Percentage Change from Prior....................... 7.2% 5.9%
</TABLE>
9
<PAGE>
CENTER TRUST
SUMMARY OF ACQUISITION PROPERTIES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
AGGREGATE
DATE COMPANY PERCENT YEAR COST
ACQUIRED PROPERTY NAME LOCATION TOTAL GLA OWNED GLA LEASED COMPLETE (000'S)
- -------- ------------- -------- --------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1/20/98 Covington Square Kent, WA 155,370 151,427 93.4% 1986
3/11/98 Pavilions Centre Federal Way, WA 200,209 200,209 78.3% 1995
3/27/98 Loma Square San Diego, CA 210,704 210,704 93.9% 1980
3/27/98 North County Plaza Carlsbad, CA 153,325 153,325 93.0% 1987
3/27/98 Center of El Centro El Centro, CA 179,889 178,889 97.0% 1980
3/27/98 Vineyards Marketplace Rancho Cucamonga, CA 153,325 56,035 92.0% 1991
3/27/98 Bakersfield Shopping Center Bakersfield, CA 14,115 14,115 90.3% 1978
3/31/98 Southpointe Plaza Sacramento, CA 193,409 83,409 84.7% 1982
--------- --------- --------
Subtotal--First Quarter 1,260,346 1,048,113 $116,900
--------- --------- --------
4/30/98 Sixth Avenue Plaza Tacoma, WA 139,107 139,107 97.1% 1986
4/30/98 Southern Palms Center Tempe, AZ 254,863 254,863 95.3% 1980
5/1/98 Mineral King Plaza Visalia, CA 115,336 39,060 84.1% 1983
5/12/98 Madera Marketplace Madera, CA 294,059 168,596 92.7% 1992
5/18/98 Fairwood Center Renton, WA 211,682 211,682 96.5% 1995
6/24/98 Charleston Plaza Las Vegas, NV 283,646(1) 222,594 92.4% 1989
6/25/98 Kyrene Village Chandler, AZ 161,174 161,174 92.4% 1987
6/29/98 Sunrise Place Center Tucson, AZ 40,974(2) 40,974 98.1% 1992
--------- --------- --------
Subtotal--Second Quarter 1,500,841 1,238,050 108,100
--------- --------- --------
8/20/98 North Mountain Village Phoenix, AZ 147,510 94,379 100% 1985
8/26/98 Torrance Promenade Torrance, CA 266,728 263,228 98.7% 1991
9/24/98 Mountain Square Shopping Center Upland, CA 273,280 273,280 82.9% 1988
--------- --------- --------
Subtotal--Third Quarter 687,518 630,887 84,900
--------- --------- --------
Total 1998 Year to Date 3,448,705 2,917,050 $309,900
========= ========= ========
</TABLE>
- --------
(1) 11,902 square feet of the total is to be acquired upon completion of
construction.
(2) Center Trust owned the 103,025 square feet anchor space prior to the
acquisition of the adjacent shop space.
10
<PAGE>
CENTER TRUST
PORTFOLIO DETAIL
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
GLA AS
% OF
TOTAL AVERAGE
TOTAL LEASED GLA COMPANY BASE RENT
NUMBER OF --------------------------- COMPANY OWNED PERCENT ANNUALIZED PER SQ.
PROPERTIES ANCHOR PAD SHOP OWNED GLA GLA LEASED BASE RENT FT.
---------- --------- ------- --------- ---------- ------- ------- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY SHOPPING
CENTERS
Pacific Northwest
Region................ 12 951,620 104,232 674,749 1,897,284 18.6% 91.2 $ 17,806,262 $10.24
Northern & Central
California Region..... 8 436,195 11,808 372,277 859,686 8.4 95.4 10,088,882 12.30
Southern California
Region................ 24 2,701,760 339,759 831,700 4,249,653 41.7% 91.1 46,150,998 11.91
Southwest Region....... 5 488,603 39,471 316,348 877,009 8.7% 96.3 6,831,211 8.09
--- --------- ------- --------- ---------- ----- ----- ------------ ------
TOTAL COMMUNITY
SHOPPING CENTERS...... 49 4,578,178 495,270 2,195,074 7,883,632 77.4 92.2 $ 80,877,353 $11.11
--- --------- ------- --------- ---------- ----- ----- ------------ ------
REGIONAL MALLS......... 2 609,515 82,794 382,260 1,178,009 11.6 91.2 $ 17,415,381 $16.21
--------- ------- --------- ---------- ----- ------------ ------
SINGLE TENANT
FACILITIES............ 12 1,106,970 12,242 -- 1,119,212 11.0 100.0 $ 7,046,490 $ 6.30
--- --------- ------- --------- ---------- ----- ----- ------------ ------
TOTAL PORTFOLIO........ 63 6,294,663 590,306 2,577,334 10,180,853 100.0% 92.9 $105,339,223 $11.12
=== ========= ======= ========= ========== ===== ===== ============ ======
</TABLE>
11
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
YEAR
BUILT TOTAL LEASED GLA AVERAGE
OR ----------------------- COMPANY PERCENT ANNUALIZED BASE RENT
PROPERTY NAME REMODEL ANCHOR PAD SHOP OWNED GLA LEASED BASE RENT PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ------- ------ ------- ------- --------- ------- ----------- ----------- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY
SHOPPING
CENTERS
PACIFIC
NORTHWEST
REGION
Covington
Square......... 1986 70,837 -- 69,124 151,427 92.4 $ 1,493,056 $10.67 Safeway, Payless Drugs
Covington, WA
Fairwood
Shopping
Center......... 1995 124,583 10,954 67,086 211,682 95.7 1,832,788 9.05 Safeway, Ernst Home Center,
Renton, WA Quality Food Centers
Frontier Village
Shopping
Center......... 1993 68,473 22,023 61,624 153,320 99.2 1,513,177 9.95 Safeway, Bartell Drugs
Lake Stevens,
WA
Gresham Town
Fair........... 1988 159,282 26,587 61,579 264,649 93.5 2,142,857 8.66 Ross Stores, Emporium,
Gresham, OR G. I. Joe's, Craft Warehouse
The Medford
Center......... 1998 196,032 9,432 53,579 319,423 81.1 2,064,109 7.73 Cinemark Theatres, Sears, Emporium,
Medford, OR Safeway*, Payless*, Circuit City
Pacific Linen
Plaza.......... 1988 25,000 -- 42,244 69,432 96.8 906,877 13.49 Pacific Linen, Payless Shoesource,
Lynnwood, WA Men's Wearhouse
Pavilions'
Centre......... 1995 80,056 -- 76,647 200,209 78.3 2,610,758 16.66 Quality Food Centers, Barnes & Noble
Federal Way, WA Blockbuster Music, Petco
Ross Center..... 1987 53,331 7,000 70,819 132,465 99.0 1,516,082 11.56 Ross Stores, Michaels, Pier 1 Imports
Portland, OR
Silverdale
Shopping
Center......... 1990 29,020 -- 25,472 67,330 80.9 603,369 11.07 Ross Stores
Silverdale, WA
Sixth Avenue
Plaza.......... 1986 73,166 -- 61,911 139,107 97.1 1,020,499 7.55 Sears, Drug Emporium, Artco
Tacoma, WA
Vancouver Park
Place.......... 1987 33,938 14,900 29,151 77,989 100.0 916,602 11.75 T.J. Maxx, Pier 1 Imports
Vancouver, WA
Westgate North
Shopping
Center......... 1980 37,902 13,336 55,513 110,251 96.8 1,186,089 11.11 Quality Food Centers
Tacoma, WA
------- ------- ------- --------- ----- ----------- ------
Pacific
Northwest
Region......... 951,620 104,232 674,749 1,897,284 91.2 $17,806,262 $10.24
======= ======= ======= ========= ===== =========== ======
</TABLE>
12
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
YEAR AVERAGE
BUILD TOTAL LEASED GLA COMPANY BASE RENT
OR ---------------------- OWNED PERCENT ANNUALIZED PER
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT SQ. FT.
------------- ------- ------ ------ ------- ------- ------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NORTHERN &
CENTRAL
CALIFORNIA
REGION
Bakersfield
Shopping
Center......... 1978 -- -- 12,740 14,115 90.3 $ 89,252 $ 7.01
Bakersfield, CA
The City Center. 1992 177,584 -- 15,329 194,193 99.3 2,817,014 14.60
San Francisco,
CA
Madera
Marketplace.... 1992 92,278 -- 70,856 168,596 96.8 1,658,401 10.17
Madera, CA
Marshall's
Plaza.......... 1989 43,000 -- 36,000 79,000 100.0 1,152,286 14.59
Modesto, CA
Mineral King
Plaza.......... 1983 -- -- 32,860 39,060 84.1 519,211 15.80
Visalia, CA
Rheem Valley.... 1990 51,009 5,150 90,339 153,786 95.3 1,668,044 11.39
Moraga, CA
Rosedale Village
Shopping
Center......... 1991 72,324 6,658 44,813 127,527 97.1 1,345,913 10.87
Bakersfield, CA
Southpointe
Plaza.......... 1982 -- -- 69,340 83,409 83.1 838,760 12.10
Sacramento, CA
------- ------ ------- ------- ----- ----------- ------
Northern &
Central
California
Region......... 436,195 11,808 372,277 859,686 95.4 $10,088,882 $12.30
======= ====== ======= ======= ===== =========== ======
SOUTHERN
CALIFORNIA
REGION
Advantage/Sportmart
Shopping
Center......... 1988 105,210 12,650 -- 117,860 100.0 $ 1,358,610 $11.53
San Diego, CA
Center of El
Centro......... 1980 149,300 5,623 18,616 178,889 97.0 621,634 3.58
El Centro, CA
Country Fair
Shopping
Center......... 1992 96,225 24,341 26,741 168,367 87.5 1,915,801 13.01
Chino, CA
Covina Town
Square......... 1997 266,383 6,500 49,654 351,517 91.8 4,768,530 14.78
Covina, CA
<CAPTION>
ANCHOR OR
PROPERTY NAME PRINCIPAL TENANTS
------------- -----------------
<S> <C>
NORTHERN &
CENTRAL
CALIFORNIA
REGION
Bakersfield
Shopping
Center......... Video One
Bakersfield, CA
The City Center. Toys 'R' Us, Mervyn's, Office Depot, Good
San Francisco, Guys
CA
Madera
Marketplace.... Wal-Mart*, J.C. Penney, Safeway
Madera, CA
Marshall's
Plaza.......... Marshall's, Good Guys
Modesto, CA
Mineral King
Plaza.......... Vons*, Longs Drug*, Chuck E. Cheese's
Visalia, CA
Rheem Valley.... T. J. Maxx, Longs Drugs*
Moraga, CA
Rosedale Village
Shopping
Center......... Savemart, Payless Drugs, KMart*
Bakersfield, CA
Southpointe
Plaza.......... Target*, Big 5 Sporting Goods, Discovery Zone
Sacramento, CA
Northern &
Central
California
Region.........
SOUTHERN
CALIFORNIA
REGION
Advantage/Sportmart
Shopping
Center......... Advantage (Lucky), SportMart
San Diego, CA
Center of El
Centro......... Sears, Mervyn's, Miller's Outpost
El Centro, CA
Country Fair
Shopping
Center......... Albertsons*, Petsmart, Thrifty,
Chino, CA Staples, T.J. Maxx
Covina Town
Square......... AMC Theatres, Home Depot, Staples,
Covina, CA Petsmart, Michael's
</TABLE>
13
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
YEAR
BUILT TOTAL LEASED GLA COMPANY AVERAGE
OR ----------------------- OWNED PERCENT ANNUALIZED BASE RENT ANCHOR OR
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT PER SQ. FT. PRINCIPAL TENANTS
- ------------- ------- ------- ------- ------- ------- ------- ---------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Date Palm
Center.......... 1987 99,919 -- 15,044 117,362 98.0 1,721,077 14.97 Sam's Club (Wal-Mart)
Cathedral City,
CA
El Camino North. 1982 64,600 130,611 71,638 324,394 82.3 3,411,979 12.79 Mervyn's*, Toys 'R' Us*, Mann Theatres,
Oceanside, CA Ross Stores
Empire Center... 1993 50,967 15,690 80,480 261,996 56.2 1,658,303 11.27 Target*, Mervyn's*, Miller's Outpost,
Fontana, CA Ross Stores
Fire Mountain
Center.......... 1987 44,481 14,580 24,465 93,778 89.1 1,634,417 19.57 Stroud's, Lamps Plus, Wherehouse,
Oceanside, CA Aaron Bros., Trader Joe's, Bookstar
Fullerton Town
Center.......... 1987 177,653 19,722 60,510 278,647 92.5 3,900,104 15.12 Price Club*, AMC Theatres, Aaron Bros.,
Fullerton, CA Toys 'R' Us, Fabri-Centers, Office Depot
Gardena Gateway
Center.......... 1990 41,300 5,062 18,225 65,987 97.9 970,929 15.03 Thrifty, 99 Ranch Market
Gardena, CA
Huntington
Center.......... 1989 105,879 4,365 -- 110,244 100.0 1,240,979 11.26 Toys 'R' Us, Lucky Stores
Huntington
Beach, Ca
Kenneth Hahn
Plaza........... 1987 97,186 11,798 41,325 162,665 92.4 1,415,439 9.42 Food 4 Less, Pic-N-Save, Thrifty,
Los Angeles, CA Super Trak Auto
La Verne Towne
Center.......... 1986 158,860 1,940 46,203 231,143 89.6 1,182,250 5.71 Target, Albertson's
La Verne, CA
Lakewood Plaza.. 1989 93,342 4,365 15,804 113,511 100.0 1,267,042 11.16 Lucky Stores, Staples
Bellflower, CA
Loma Square..... 1980 96,514 -- 105,720 210,704 96.0 2,652,817 13.12 T.J. Maxx, Circuit City, Sav-on Drugs
San Diego, CA Staples, Super Crown Books
Montebello Town
Square.......... 1992 210,533 7,879 26,667 250,438 97.9 2,741,178 11.18 Sears, Toys 'R' Us, AMC Theatres, Petco
Montebello, CA
Mountain Square
Shopping
Center......... 1988 186,036 -- 47,519 273,280 85.5 2,864,119 12.26 Home Depot, Staples, Pavillions
Upland, CA
North County
Plaza........... 1987 43,610 28,720 71,170 153,325 93.6 2,044,775 14.25 Marshall's, Michael's, Kids 'R' Us
Carlsbad, CA
Parkway Place... 1989 91,127 12,917 13,756 120,460 97.8 1,228,084 10.43 Advantage (Lucky), Office Depot
Escondido, CA
Pomona Gateway
Center.......... 1993 96,418 6,487 2,492 108,887 96.8 920,853 8.74 Vons, Pic-N-Save
Pomona, CA
</TABLE>
14
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
YEAR
BUILT TOTAL LEASED GLA ANNUALIZED AVERAGE
OR --------------------------- COMPANY PERCENT BASE BASE RENT
PROPERTY NAME REMODEL ANCHOR PAD SHOP OWNED GLA LEASED RENT PER SQ. FT.
- ------------- ------- --------- ------- --------- --------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
San Fernando
Mission Plaza.. 1991 50,508 2,293 14,391 67,192 100.0 897,870 13.36
San Fernando,
CA
Torrance
Promenade...... 1991 211,883 20,496 27,551 263,228 98.7 3,999,202 15.39
Torrance, CA
Vermont-Slauson. 1981 142,411 3,720 23,613 169,744 100.0 973,792 5.74
Los Angeles, CA
Vineyards
Marketplace..... 1991 21,415 -- 30,116 56,035 92.0 761,213 14.77
Rancho
Cucamonga, CA
--------- ------- --------- --------- ----- ----------- ------
Southern
California
Region......... 2,701,760 339,759 831,700 4,249,653 91.1 $46,150,998 $11.91
--------- ------- --------- --------- ----- ----------- ------
SOUTHWEST REGION
Charleston
Plaza........... 1989 153,131 9,226 43,352 222,594 92.4 $ 2,076,986 $10.10
Las Vegas, NV
Kyrene Village.. 1987 95,957 5,120 59,102 161,174 99.4 1,172,093 7.32
Chandler, AZ
North Mountain
Village........ 1985 41,215 -- 53,164 94,379 100.0 857,350 9.08
Phoenix, AZ
Southern Palms
Center.......... 1980 95,275 20,025 127,636 254,863 95.3 1,880,019 7.74
Tempe, AZ
Sunrise Place
Center.......... 1992 103,025 5,100 33,094 143,999 98.1 844,763 5.98
Tucson, AZ
--------- ------- --------- --------- ----- ----------- ------
Southwest
Region.......... 488,603 39,471 316,348 877,009 96.3 $ 6,831,211 $ 8.09
========= ======= ========= ========= ===== =========== ======
COMMUNITY RETAIL
CENTERS 4,578,178 495,270 2,195,074 7,883,632 92.2 $80,877,353 $11.11
========= ======= ========= ========= ===== =========== ======
REGIONAL MALLS
Baldwin Hills
Crenshaw Plaza. 1988 141,554 33,810 156,214 359,604 92.2 $ 5,905,240 $17.81
Los Angeles, CA
<CAPTION>
ANCHOR OR
PROPERTY NAME PRINCIPAL TENANTS
- ------------- -----------------
<S> <C>
San Fernando
Mission Plaza.. KV-Mart (Vons)
San Fernando,
CA
Torrance
Promenade...... Ross, Marshall's, Office Depot, Linens &
Torrance, CA Things, Kids R Us, Bookstar, Sears Homelife
Vermont-Slauson. Food 4 Less, KMart, Sav-On Drugs
Los Angeles, CA
Vineyards
Marketplace..... Albertson's*, Sav-on Drugs
Rancho
Cucamonga, CA
Southern
California
Region.........
SOUTHWEST REGION
Charleston
Plaza........... Home Base, Lucky Stores*, Sav-on,
Las Vegas, NV GreenBacks, Family Bargain Center
Kyrene Village.. Bashas', Kyrene Lanes, The Oak Store
Chandler, AZ
North Mountain
Village........ Fry's Food & Drug*, T.J. Maxx, GreenBacks
Phoenix, AZ
Southern Palms
Center.......... Mega Foods, Heilig Meyer Furniture, Coomers
Tempe, AZ Craft Mall
Sunrise Place
Center.......... Smith's Food & Drug
Tucson, AZ
Southwest
Region..........
COMMUNITY RETAIL
CENTERS
REGIONAL MALLS
Baldwin Hills
Crenshaw Plaza. Sears*, Macy's*, Lucky Stores, T.J.Maxx,
Los Angeles, CA Robinsons-May*, Magic Johnson Theatres
</TABLE>
15
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
YEAR
BUILT TOTAL LEASED GLA ANNUALIZED AVERAGE
OR --------------------------- COMPANY PERCENT BASE BASE RENT
PROPERTY NAME REMODEL ANCHOR PAD SHOP OWNED GLA LEASED RENT PER SQ. FT.
- ------------- ------- --------- ------- --------- ---------- ------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Media City
Center......... 1992 467,961 48,984 226,046 818,405 90.8 11,510,141 15.49
Burbank, CA
--------- ------- --------- ---------- ----- ------------ ------
Regional Malls.. 609,515 82,794 382,260 1,178,009 91.2 17,415,381 $16.21
========= ======= ========= ========== ===== ============ ======
SINGLE TENANT
FACILITIES
Home Base....... 1988 107,165 -- -- 107,165 100.0 $ 870,180 $ 8.12
Glendora, CA
KMart........... 1990 104,204 -- -- 104,204 100.0 551,576 5.29
Phoenix, AZ
KMart........... 1990 86,479 -- -- 86,479 100.0 457,744 5.29
Banning, CA
KMart........... 1990 86,479 -- -- 86,479 100.0 507,915 5.87
El Centro, CA
KMart........... 1990 86,479 -- -- 86,479 100.0 365,373 4.22
Los Banos, CA
KMart........... 1990 86,479 -- -- 86,479 100.0 415,951 4.81
Madera, CA
KMart........... 1990 86,479 -- -- 86,479 100.0 411,132 4.75
Rocklin, CA
Montgomery
Wards.......... 1989 102,400 -- -- 102,400 100.0 537,600 5.25
Tucson, AZ
Vons............ 1989 36,800 -- -- 36,800 100.0 312,800 8.50
Escondido, CA
Vons............ 1993 102,400 -- -- 102,400 100.0 825,418 8.06
Simi Valley, CA
Sam's Club...... 1988 110,822 3,900 -- 114,722 100.0 731,811 6.38
Downey, CA
Sam's Club...... 1988 110,784 8,342 -- 119,126 100.0 1,058,990 8.89
Fountain Valley,
CA
--------- ------- --------- ---------- ----- ------------ ------
SINGLE TENANT
FACILITIES..... 1,106,970 12,242 -- 1,119,212 100.0 $ 7,046,490 $ 6.30
--------- ------- --------- ---------- ----- ------------ ------
TOTAL
PROPERTIES..... 6,294,663 590,306 2,577,334 10,180,853 92.9 $105,339,224 $11.12
========= ======= ========= ========== ===== ============ ======
<CAPTION>
ANCHOR OR
PROPERTY NAME PRINCIPAL TENANTS
- ------------- -----------------
<S> <C>
Media City
Center......... Macy's, IKEA*, Sears*, CompUSA, AMC Theatres
Burbank, CA Mervyn's*, Office Depot, Barnes&Noble,
Virgin Records, Circuit City, SportsChalet
Regional Malls..
SINGLE TENANT
FACILITIES
Home Base....... Home Base
Glendora, CA
KMart........... KMart
Phoenix, AZ
KMart........... KMart
Banning, CA
KMart........... KMart
El Centro, CA
KMart........... KMart
Los Banos, CA
KMart........... KMart
Madera, CA
KMart........... KMart
Rocklin, CA
Montgomery
Wards.......... Montgomery Ward
Tucson, AZ
Vons............ Vons
Escondido, CA
Vons............ Vons
Simi Valley, CA
Sam's Club...... Sam's Club (Wal-Mart)
Downey, CA
Sam's Club...... Sam's Club (Wal-Mart)
Fountain Valley,
CA
SINGLE TENANT
FACILITIES.....
TOTAL
PROPERTIES.....
</TABLE>
- ------
* Anchor space non-owned by Company
16
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--OVERALL PORTFOLIO
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
OVERALL PORTFOLIO ANCHORS PADS SHOPS
------------------------- ------------------ ---------------- ------------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- --------- -------- ------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month-to-Month.......... 122 184,347 $12.70 22,076 $3.00 1,000 $12.60 161,271 $14.03
1998 (3 months)......... 69 127,107 17.63 -- -- 4,365 7.68 122,742 17.99
1999.................... 186 415,344 15.42 62,313 11.41 6,752 15.05 346,279 16.15
2000.................... 185 577,007 13.68 176,347 9.30 47,749 14.64 352,911 15.73
2001.................... 220 771,620 12.70 320,422 6.98 40,597 17.07 410,601 16.74
2002.................... 171 706,416 12.71 307,373 7.51 64,890 16.69 334,153 16.71
2003.................... 112 551,193 10.91 226,886 6.29 46,772 15.61 277,535 13.89
2004.................... 50 630,419 9.33 507,906 7.91 26,788 14.83 95,725 16.94
2005.................... 42 398,741 13.53 240,580 12.47 29,679 14.41 128,482 15.33
2006.................... 45 367,355 13.07 219,883 11.52 30,543 11.28 116,929 16.45
2007.................... 44 424,909 11.98 251,854 9.49 55,300 12.59 117,755 17.01
THEREAFTER.............. 148 4,318,645 9.38 3,959,023 8.90 246,671 15.17 112,951 13.64
----- --------- ------ --------- ----- ------- ------ --------- ------
TOTAL............... 1,394 9,473,103 $11.12 6,294,663 $8.80 601,106 $14.91 2,577,334 $15.90
===== ========= ====== ========= ===== ======= ====== ========= ======
</TABLE>
17
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
SEPTEMBER 30, 1998
Pacific Northwest Region
<TABLE>
<CAPTION>
OVERALL REGION ANCHORS PADS SHOPS
------------------------- ---------------- ---------------- ----------------
NUMBER BASE BASE BASE BASE
OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
YEAR OF EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
------------------ ------ --------- -------- ------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month-to-Month.......... 21 40,121 $13.23 -- -- 1,000 $12.60 39,121 $13.25
1998 (3 months)......... 12 27,784 16.84 -- -- -- -- 27,784 16.84
1999.................... 48 126,179 12.21 14,910 $ 6.60 2,477 17.06 108,792 12.87
2000.................... 44 125,844 13.73 -- -- 18,790 18.29 107,054 12.93
2001.................... 44 204,059 9.76 105,780 5.37 -- -- 98,279 14.36
2002.................... 33 146,942 10.94 68,605 6.70 12,100 13.98 66,237 14.78
2003.................... 28 125,268 10.66 26,832 6.04 9,974 17.47 88,462 11.30
2004.................... 8 111,599 4.19 86,385 1.87 3,017 11.26 22,197 12.29
2005.................... 9 80,860 11.63 29,080 6.30 12,259 12.95 39,521 15.15
2006.................... 13 81,642 13.12 47,130 8.58 -- -- 34,512 19.32
2007.................... 9 48,639 14.16 -- -- 18,562 11.53 30,077 15.79
THEREAFTER.............. 31 619,664 8.77 572,898 8.45 34,021 12.22 12,745 13.79
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................. 300 1,738,601 $10.24 951,620 $ 7.23 112,200 $14.05 674,781 $13.79
=== ========= ====== ======= ====== ======= ====== ======= ======
Northern and Central California Region
<CAPTION>
OVERALL REGION ANCHORS PADS SHOPS
------------------------- ---------------- ---------------- ----------------
NUMBER BASE BASE BASE BASE
OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
YEAR OF EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
------------------ ------ --------- -------- ------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month-to-Month.......... 23 25,515 $13.46 -- -- -- -- 25,515 $13,46
1998 (3 months)......... 9 18,250 11.99 -- -- -- -- 18,250 11.99
1999.................... 26 40,668 13.60 -- -- -- -- 40,668 13.60
2000.................... 29 91,093 10.34 52,165 $ 6.47 -- -- 38,928 15.52
2001.................... 32 71,330 13.32 -- -- -- -- 71,330 13.32
2002.................... 27 69,602 14.98 -- -- 6,658 $12.00 62,944 15.30
2003.................... 17 91,751 14.50 23,247 18.65 -- -- 68,504 13.09
2004.................... 8 27,780 21.58 16,000 26.26 1,650 14.67 10,130 15.32
2005.................... 3 40,246 7.76 25,844 6.71 -- -- 14,402 9.66
2006.................... 3 15,860 12.06 -- -- -- -- 15,860 12.06
2007.................... 4 51,288 12.90 49,416 12.48 -- -- 1,872 24.04
THEREAFTER.............. 8 276,897 10.63 269,523 10.41 3,500 15.00 3,874 21.93
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................. 189 820,280 $12.30 436,195 $10.97 11,808 $13.26 372,277 $13.82
=== ========= ====== ======= ====== ======= ====== ======= ======
</TABLE>
18
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
SEPTEMBER 30, 1998
Southern California Region
<TABLE>
<CAPTION>
OVERALL REGION ANCHORS PADS SHOPS
------------------------- ------------------ ---------------- ----------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- --------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month-to-Month.......... 26 62,039 $ 9.75 22,076 $ 3.00 -- $ -- 39,963 $13.47
1998 (3 months)......... 18 28,816 18.53 -- -- 4,365 7.68 24,451 20.47
1999.................... 66 179,545 16.15 47,403 12.92 4,275 13.88 127,867 17.43
2000.................... 77 278,084 14.78 109,580 11.12 25,059 12.80 143,445 17.92
2001.................... 77 368,164 12.02 214,642 7.77 31,265 16.85 122,257 18.25
2002.................... 59 343,035 12.16 210,768 8.02 33,000 18.97 99,267 18.70
2003.................... 39 266,996 8.73 176,807 4.71 36,798 15.10 53,391 17.63
2004.................... 17 305,679 9.99 257,549 8.74 9,396 22.43 38,734 15.30
2005.................... 14 107,517 11.46 58,312 8.69 15,700 13.96 33,505 15.11
2006.................... 16 168,202 14.23 99,919 14.40 19,013 11.94 49,270 14.77
2007.................... 17 150,222 12.74 89,975 11.33 36,738 13.12 23,509 17.51
THEREAFTER.............. 64 1,617,720 11.42 1,414,729 11.04 126,950 14.20 76,041 14.03
--- --------- ------ --------- ------ ------- ------ ------- ------
TOTAL............... 490 3,876,019 $11.91 2,701,760 $ 9.96 342,559 $14.78 831,700 $17.04
=== ========= ====== ========= ====== ======= ====== ======= ======
</TABLE>
Southwest Region
<TABLE>
<CAPTION>
OVERALL REGION ANCHORS PADS SHOPS
----------------------- ---------------- --------------- ----------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ ------- -------- ------- -------- ------ -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month-to-Month.......... 11 18,942 $ 8.60 -- -- -- -- 18,942 $ 8.60
1998 (3 months)......... 6 9,545 $15.66 -- -- -- -- 9,545 15.66
1999.................... 24 40,537 14.57 -- -- -- -- 40,537 14.57
2000.................... 21 59,327 10.77 14,602 5.75 -- -- 44,725 12.34
2001.................... 23 72,790 11.00 -- -- 5,100 13.73 67,690 10.80
2002.................... 26 89,128 9.18 28,000 5.58 3,750 27.95 57,378 9.71
2003.................... 9 27,586 9.35 -- -- -- -- 27,586 9.35
2004.................... 2 21,225 9.61 15,000 9.03 6,225 11.00 -- --
2005.................... 3 47,986 7.38 29,765 5.80 -- -- 18,221 9.96
2006.................... 6 59,564 6.21 47,530 4.40 5,120 13.00 6,914 13.61
2007.................... 5 84,963 6.72 75,663 5.84 -- -- 9,300 13.94
THEREAFTER.............. 12 312,829 6.12 278,043 5.51 19,276 13.68 15,510 7.63
--- ------- ------ ------- ----- ------ ------ ------- ------
TOTAL............... 148 844,422 $ 8.09 488,603 $5.59 39,471 $14.61 316,348 $11.14
=== ======= ====== ======= ===== ====== ====== ======= ======
</TABLE>
19
<PAGE>
CENTER TRUST
SUMMARY OF TENANTS WITH RENTS EXCEEDING 1% OF TOTAL RENTS
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
PERCENTAGE TOTAL PERCENTAGE
NUMBER OF ANNUALIZED OF TOTAL TENANT OF COMPANY
RETAIL TENANT STORES BASE RENT BASE RENT GLA OWNED GLA
- ------------- --------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
1. AMC Theatres......... 6 $ 5,899,895 5.60% 259,842 2.55%
2. Safeway/Vons......... 9 4,459,315 4.23% 533,019 5.24%
3. Sam's Club/Wal-Mart
Stores.............. 3 3,138,834 2.98% 321,525 3.16%
4. Lucky Stores, Inc. .. 5 3,081,453 2.93% 308,170 3.03%
5. Kmart Group.......... 7 2,927,871 2.78% 619,103 6.09%
6. Toys "R" Us.......... 6 2,549,038 2.42% 236,091 2.32%
7. TJX.................. 9 1,959,110 1.86% 247,614 2.43%
8. Home Depot........... 2 1,875,930 1.78% 200,549 1.97%
9. Sears Roebuck & Co. . 5 1,799,433 1.71% 427,731 4.20%
10. Fred Meyers
(Ralphs/FFL/QFC).... 5 1,650,745 1.57% 196,674 1.93%
11. Home Base............ 2 1,608,639 1.53% 212,572 2.09%
12. Office Depot......... 5 1,523,537 1.45% 124,841 1.23%
13. Barnes & Noble....... 4 1,465,822 1.39% 70,276 0.69%
14. Ross Stores, Inc. ... 6 1,381,171 1.31% 170,012 1.67%
15. Payless ShoeSource,
Inc. ............... 18 1,319,205 1.25% 61,527 0.60%
16. Magic Johnson
Theatres............ 1 1,288,210 1.22% 67,579 0.66%
17. The Limited.......... 8 1,171,930 1.11% 63,748 0.63%
18. Dayton Hudson
(Mervyn's/Target)... 3 1,131,500 1.07% 261,938 2.57%
--- ----------- ----- --------- -----
Total................ 104 $40,231,638 38.19% 4,382,811 43.06%
=== =========== ===== ========= =====
</TABLE>
20
<PAGE>
CENTER TRUST
MAJOR SEGMENT CONCENTRATION EXCEEDING 2% OF TOTAL RENTS
AS OF SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
TOTAL
SEGMENT PERCENT TOTAL PERCENT
NUMBER ANNUALIZED OF TOTAL SEGMENT OF COMPANY
SEGMENT TYPE OF LEASES BASE RENT BASE RENT GLA OWNED GLA
------------ --------- ----------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Grocery Stores............ 26 $10,910,997 10.36% 1,351,384 13.27%
Theatres.................. 9 8,211,671 7.80% 409,694 4.02%
Fast Food Restaurants..... 188 6,627,630 6.29% 323,574 3.18%
Discount Department
Stores................... 11 6,248,205 5.93% 1,055,360 10.37%
Restaurants............... 75 5,859,355 5.56% 397,237 3.90%
Discount Apparel Stores... 33 4,480,971 4.25% 510,573 5.02%
Department Stores......... 11 4,233,852 4.02% 887,512 8.72%
Women's Wear Stores....... 59 3,956,860 3.76% 250,661 2.46%
Home Improvement.......... 13 3,923,699 3.72% 498,537 4.90%
Audio/Video Stores........ 30 3,134,960 2.98% 177,009 1.74%
Electronic Stores......... 28 2,964,559 2.81% 184,570 1.81%
Major Shoe Stores......... 43 2,814,677 2.67% 142,477 1.40%
Office Supply Stores...... 11 2,663,347 2.53% 220,930 2.17%
Toy Stores................ 14 2,464,994 2.34% 228,600 2.25%
Home Furnishings.......... 25 2,445,841 2.32% 198,654 1.95%
Bank And Financial
Services................. 52 2,287,244 2.17% 153,278 1.51%
Sporting Goods Stores..... 22 2,278,594 2.16% 171,266 1.68%
Drug Stores............... 16 2,129,370 2.02% 311,995 3.06%
--- ----------- ----- --------- -----
Total................. 666 $77,636,826 73.69% 7,473,311 73.41%
=== =========== ===== ========= =====
</TABLE>
21
<PAGE>
CENTER TRUST
CONSOLIDATED INCOME STATEMENTS AND RECONCILIATION TO FUNDS FROM OPERATIONS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- ------------------
1998 1997 1998 1997
--------- --------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Rental revenues...................... $ 25,336 $ 16,083 $ 68,024 $ 47,717
Expense reimbursements............... 7,493 4,525 20,283 14,022
Percentage rents..................... 241 187 803 625
Other income......................... 1,118 1,043 3,611 2,995
--------- --------- -------- --------
Total revenues................... 34,188 21,838 92,721 65,359
--------- --------- -------- --------
Interest............................. 12,741 9,088 35,167 27,010
Depreciation and amortization........ 6,213 4,567 17,518 13,357
Property operating costs:
Common area........................ 5,564 3,288 14,379 9,855
Property taxes..................... 3,020 1,797 8,724 5,678
Leasehold rentals.................. 412 408 1,237 1,228
Marketing.......................... 149 94 307 246
Other operating.................... 387 540 1,413 1,214
General and administrative......... 2,503 1,224 6,426 3,714
--------- --------- -------- --------
Total expenses................... 30,989 21,006 85,171 62,302
--------- --------- -------- --------
Income From Operations Before Gain on
Sale and Minority Interest.......... 3,199 832 7,550 3,057
Gain on Sale of Asset................ 1,055 -- 1,055 --
Equity in Unconsolidated Subsidiary.. -- 19 -- 19
Minority interests--Operating
Partnership......................... (793) (182) (1,657) (726)
Minority interests--Other............ (69) (69) (206) (216)
--------- --------- -------- --------
Net Income........................... 3,392 600 6,742 2,134
Adjustments to reconcile net income
to FFO:
Depreciation of real property...... 6,202 4,539 17,426 13,311
Minority Interests................. 712 97 1,426 494
Gain on Sale of Asset.............. (1,055) -- (1,055) --
Other.............................. 423 -- 862 --
--------- --------- -------- --------
Funds From Operations--Basic......... 9,674 5,236 25,401 15,939
Adjustments to reconcile Basic to
Diluted FFO:
Debenture interest................. 3,143 3,143 9,427 9,427
Amortization of Deferred costs--
Debentures........................ 325 325 975 975
--------- --------- -------- --------
Funds From Operations--Diluted....... $ 13,142 $ 8,704 $ 35,803 $ 26,341
========= ========= ======== ========
</TABLE>
22
<PAGE>
CENTER TRUST
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
------------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C>
ASSETS
------
Rental Properties...................... $1,092,545 $783,279 $ 659,565
Accumulated depreciation and
amortization.......................... (135,709) (121,202) (104,330)
---------- -------- ---------
Rental properties, net................. 956,836 662,077 555,235
Cash and cash equivalents.............. 6,758 3,613 5,941
Tenant receivables, net................ 10,641 6,017 5,987
Other Receivables...................... 6,752 7,575 3,650
Receivable From Management Company..... -- -- 1,055
Investment in Management Company....... -- -- 621
Restricted cash........................ 5,417 9,435 3,252
Deferred charges, net.................. 19,458 19,759 18,365
Other assets........................... 2,305 2,237 770
---------- -------- ---------
Total.............................. $1,008,167 $710,713 $ 594,876
========== ======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES
Secured debt........................... $ 479,020 $313,660 $ 242,641
7 1/2% Convertible subordinated
debentures............................ 138,599 138,599 138,599
7 1/4% Exchangeable subordinated
debentures............................ 30,000 30,000 30,000
Accrued distributions.................. 11,139 7,371 7,039
Accrued interest....................... 3,778 5,604 5,490
Accounts payable and other accrued
expenses.............................. 11,038 8,482 5,340
Accrued construction costs............. 2,183 10,996 1,207
Tenant security and other deposits..... 6,128 4,729 4,287
---------- -------- ---------
Total liabilities.................. 681,885 519,441 434,603
---------- -------- ---------
MINORITY INTERESTS Operating
Partnership (5,187,712, 4,280,789 and
4,286,456 units issued as of September
30, 1998 and December 31, 1997 and
1996, respectively)................... 54,512 39,685 41,640
Other minorities....................... 1,954 1,748 2,007
---------- -------- ---------
Total minority interest............ 56,466 41,433 43,647
---------- -------- ---------
REDEEMABLE COMMON STOCK (510,034 shares
outstanding as of September 30, 1998
and December 31, 1997, redeemable on
May 25, 1999)......................... 8,543 8,385 --
---------- -------- ---------
STOCKHOLDERS' EQUITY
Common stock ($.01 par value,
50,000,000 shares authorized;
25,276,665, 15,664,814 and
12,024,378 shares issued and
outstanding as of September 30, 1998
and December 31, 1997 and 1996,
respectively)....................... 252 157 120
Additional paid-in capital........... 361,102 223,972 174,792
Accumulated distributions and
deficit........................... (100,081) (82,675) (58,286)
---------- -------- ---------
Total stockholders' equity......... 261,273 141,454 116,626
---------- -------- ---------
Total.............................. $1,008,167 $710,713 $ 594,876
========== ======== =========
</TABLE>
23
<PAGE>
CENTER TRUST
SUMMARY OF OUTSTANDING DEBT
SEPTEMBER 30, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
BALANCE BALANCE
MATURITY SEPTEMBER 30, DECEMBER 31,
LENDER PROPERTY RATE DATE 1998 1997
------ ---------------------- ------------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Mortgage Loans
Aetna Life Insurance
Company Covina 9.600% 09/01/04 $ 17,847 $ 17,960
Metropolitan Life
Insurance Company Date Palm 10.450% 07/31/02 9,423 9,515
Metropolitan Life
Insurance Company Escondido 9.300% 11/01/99 2,696 2,726
Massachusetts Mutual Life
Insurance Company Fire Mountain 10.250% 10/01/99 7,408 7,481
The Travelers Insurance
Company Glendora 9.500% 10/01/99 6,071 6,110
Aid Association for
Lutherans Gardena 10.050% 02/15/02 6,659 6,710
Connecticut General Life
Insurance Company Gresham 7.500% 04/01/99 9,524 9,762
Aid Association for
Lutherans Westgate North 8.300% 04/01/14 6,118 5,955
Teachers Insurance and
Annuity Association of
America Pavilions 7.440% 08/01/06 24,602 --
The Travelers Insurance
Company North County 10.375% 01/31/03 15,965 --
The Prudential Insurance
Company of America Loma Square 9.310% 08/15/99 19,070 --
Sun Life Assurance
Company of Canada Fairwood 8.375% 02/01/04 7,517 --
Principal Mutual Life
Insurance Company North Mountain Village 8.250% 05/01/01 8,247 --
Column Financial, Inc. Mineral King 9.680% 08/01/06 3,782 --
DLJ Mortgage Acceptance
Corp. Charleston 8.050% 01/01/06 15,467 --
Eastrich #79 Corporation
(AEW)(1) Loan # 1 11.450% 10/15/06 29,890 30,691
Eastrich #79 Corporation
(AEW)(2) Loan # 2 10.900% 10/15/06 9,628 9,884
Nomura Asset Capital
Corporation(3) Tranche A 8.938% 04/01/05 22,420 22,540
Nomura Asset Capital
Corporation(3) Tranche B 9.000% 04/01/10 33,300 33,474
-------- --------
Total Mortgage Loans
Payable 9.323%(6) 255,634 162,808
-------- --------
CRA--Certificates of
Participation, Series
1985 Baldwin Hills 5.300% 12/01/14 30,000 30,000
CDC--Certificates of
Participation, Series
1985 Willowbrook 5.200% 12/01/15 6,000 6,000
Chase Manhattan Bank(4) Secured Line of Credit LIBOR+1-1.375% 12/30/00 181,253 108,727
-------- --------
Total secured debt(5) 472,887 307,535
-------- --------
Convertible debentures(7) 7.500% 01/15/01 138,599 138,599
Exchangeable
debentures(8) 7.250% 12/27/03 30,000 30,000
-------- --------
Total debt outstanding $641,486 $476,134
======== ========
</TABLE>
- --------
(1) Secured by KMart--Rocklin, KMart--El Centro, KMart--Banning, KMart--Los
Banos, Kmart--Madera, KMart--Phoenix, Advantage, Huntington Beach, Oracle
Road and Simi Valley. Crosscollateralized with AEW Loan 2.
(2) Secured by Lakewood, Sam's Club--Downey, and Parkway Place.
Crosscollateralized with AEW Loan 1.
(3) Secured by San Fernando Mission, Rosedale, Country Fair, Fullerton, La
Verne, and Sam's Club--Fountain Valley.
(4) Secured by Media City, Montebello, The City Center, Medford Shopping
Center, Empire Center, Ross Center, Pacific Linen, Vancouver Park Place,
Smitty's, Marshalls Plaza, Ross Plaza--Silverdale, Covington, Vineyards
Marketplace, Frontier Village, Rheem Valley, Sixth Avenue, Madera Market
Place and South Pointe Plaza.
(5) Excludes $6.1 million in Community Facility District Bonds at Empire
Center.
(6) Weighted average interest rate on mortgage debt.
(7) Convertible debentures bear interest at 7 1/2 and mature January 15, 2001.
Such debentures are convertible into common stock at a conversion price of
$18.00 per share.
(8) Exchangeable debentures bear interest at 7 1/4% and mature December 31,
2003. Such debentures may be exchanged for common stock at an exchange
rate of $18.00 per share or may be put to the Company after December 27,
2000 for principal amount plus accrued interest.
24
<PAGE>
CENTER TRUST
SCHEDULE OF SECURED DEBT MATURITIES BY YEARS
SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
SCHEDULED
AMORTIZATION SCHEDULED
YEAR PAYMENTS MATURITIES TOTAL
---- ------------ ---------- --------
<S> <C> <C> <C>
1998 (3 mos)................................. $ 1,265 $ -- $ 1,265
1999......................................... 4,661 43,780 48,441
2000......................................... 4,372 181,253(1) 185,625
2001......................................... 4,778 8,105 12,883
2002......................................... 5,077 8,842 13,919
2003......................................... 4,779 14,434 19,213
2004......................................... 4,685 22,625 27,310
2005......................................... 4,380 20,953 25,333
2006......................................... 3,286 59,780 63,066
2007......................................... 1,107 -- 1,107
Thereafter................................... 10,339 64,386 74,725
------- -------- --------
Total...................................... $48,729 $424,158 $472,887
======= ======== ========
</TABLE>
- --------
(1) Represents amount outstanding on the Company's secured credit facility
which is due on December 31, 2000.
25
