<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) AUGUST 19, 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 August 19, 1998 the Registrant made available additional financial and
operational information concerning the Registrant, CenterTrust Retail
Properties, Inc., and properties owned as of June 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 June 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: August 19, 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
JUNE 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
JUNE 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 61 shopping
centers, comprised of 46 community shopping centers, two regional malls and 13
single tenant facilities comprising 11.8 million square feet of total shopping
center gross leasable area (GLA) and 9.7 million square feet of Company owned
GLA. Of the 46 community shopping centers, 16 have been acquired year to date
in 1998 with an additional 8 having been acquired during the later half of
1997, therefore increasing the Company's portfolio of Community Shopping
Centers by 3.1 million square feet, or 78%. The Company currently 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, June 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,
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 JUNE 30, 1998
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -----------------
1998 1997 1998 1997
--------- --------- -------- --------
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
Funds From Operations (FFO)
FFO--Basic............................. $ 8,207 $ 5,209 $ 15,727 $ 10,703
FFO--Diluted(1)........................ $ 11,674 $ 8,676 $ 22,661 $ 17,637
FFO per share--Basic................... $ 0.33 $ 0.32 $ 0.67 $ 0.65
FFO per share--Diluted(1).............. $ 0.34 $ 0.34 $ 0.69 $ 0.69
Net Income Available to Common
Shareholders............................ $ 1,570 $ 601 $ 3,350 $ 1,534
Net Income Per Share--Basic and
Diluted............................... $ 0.08 $ 0.05 $ 0.18 $ 0.13
EBITDA................................... $ 20,147 $ 14,384 $ 38,082 $ 28,937
EBITDA per Share--Basic................ $ 0.81 $ 0.88 $ 1.63 $ 1.77
EBITDA per Share--Diluted(1)........... $ 0.59 $ 0.56 $ 1.16 $ 1.12
Funds Available for Distribution (FAD)... $ 8,361 $ 5,508 $ 16,109 $ 11,373
FAD per share--Basic................... $ 0.34 $ 0.34 $ 0.69 $ 0.69
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.............................. 2.2 2.4 2.4 2.5
</TABLE>
<TABLE>
<CAPTION>
AS OF
-------------------------------
DECEMBER 31,
JUNE 30, --------------------
1998 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
PORTFOLIO INFORMATION
Company Owned GLA
Community Shopping Centers................... 7,252,745 4,704,838 3,743,744
Regional Malls............................... 1,178,009 1,152,040 1,131,809
Single Tenant Facilities..................... 1,253,856 1,360,121 1,362,721
Total Company Owned GLA.................... 9,684,610 7,216,999 6,238,274
Percentage Leased
Community Shopping Centers................... 92.2% 93.8% 93.0%
Regional Malls............................... 90.0% 91.3% 92.5%
Single Tenant Facilities..................... 100.0% 100.0% 100.0%
Overall Portfolio.......................... 92.9% 94.6% 95.8%
Number of Properties
Community Shopping Centers................... 46 30 22
Regional Malls............................... 2 2 2
Single Tenant Facilities..................... 13 14 14
Overall Portfolio.......................... 61 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 JUNE 30, 1998
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
EQUITY INFORMATION
END OF PERIOD
Limited Partnership Units
Outstanding..................... 5,272,239 4,286,456 5,272,239 4,286,456
Common Shares Outstanding at End
of Period....................... 22,348,260 12,112,397 22,348,260 12,112,397
---------- ---------- ---------- ----------
Total Units and Common Shares
Outstanding................... 27,620,499 16,398,853 27,620,499 16,398,853
========== ========== ========== ==========
WEIGHTED AVERAGE
Basic Weighted Average Units
Outstanding..................... 5,242,731 4,286,456 4,808,314 4,286,456
Basic Weighted Average Common
Shares Outstanding.............. 19,586,347 12,110,055 18,621,379 12,081,818
---------- ---------- ---------- ----------
Basic Weighted Average Units and
Common Shares Outstanding....... 24,829,078 16,396,511 23,429,693 16,368,274
Weighted Average Common Stock
Equivalents..................... 101,109 13,536 93,290 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(1).................. 34,296,798 25,776,658 32,889,594 25,744,647
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
AS OF
------------------------
JUNE 30, DECEMBER 31,
1998 1997
---------- ------------
<S> <C> <C>
DEBT-TO-MARKET CAPITALIZATION
Common Stock Price at End of Period.................. $ 15.06 $ 17.44
Equity Market Capitalization......................... $ 415,965 356,729
Total Capitalization................................. $1,023,513 $838,988
Total Capitalization Assuming Conversion of
Debentures........................................ $ 995,975 $833,743
Debt-to-Total Capitalization......................... 59.4% 62.8%
Debt-to-Total Capitalization Assuming Conversion of
Debentures.......................................... 44.1% 41.1%
Debt-to-Total Capitalization Assuming Conversion of
Debentures(2)....................................... 44.2% 44.8%
</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. Such shares are not
included in the determination of diluted EPS as they are antidilutive.
(2) Assuming a consistent stock price of $15 per share which represents the
price of stock sold during the respective periods.
7
<PAGE>
CENTER TRUST
SAME PROPERTY ACTIVITY
JUNE 30, 1998
<TABLE>
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
---------------- ----------------
COMMUNITY SHOPPING
CENTERS(1) 1998 1997 % CHANGE 1998 1997 % CHANGE
------------------ ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 8,149 $ 8,008 1.83% $16,399 $15,936 2.9%
Recoveries from
Tenants............... 1,963 2,047 -4.1% 4,283 4,220 1.5%
Other Income........... 115 103 11.7% 236 213 10.8%
------- ------- ------- -------
Total Revenues....... 10,227 10,158 0.7% 20,918 20,369 2.7%
Expenses:
Recoverable Operating
Expenses.............. 2,143 2,128 0.7% 4,529 4,424 2.4%
Other Operating
Expenses.............. 353 481 -26.6% 699 808 -13.5%
------- ------- ------- -------
Total Expenses....... 2,496 2,609 -4.3% 5,228 5,232 -0.1%
------- ------- ------- -------
Net Operating Income..... $ 7,731 $ 7,549 2.4% $15,690 $15,137 3.7%
======= ======= ======= =======
Total Properties......... 19 19 19 19
======= ======= ======= =======
Percentage Leased........ 94.7% 95.6% 94.7% 95.6%
======= ======= ======= =======
<CAPTION>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
---------------- ----------------
REGIONAL MALLS 1998 1997 % CHANGE 1998 1997 % CHANGE
-------------- ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 4,193 $ 4,344 -3.5% $ 8,682 $ 9,078 -4.4%
Recoveries from
Tenants............... 2,358 1,906 23.7% 4,593 4,042 13.6%
Other Income........... 793 774 2.5% 1,570 1,587 -1.1%
------- ------- ------- -------
Total Revenues....... 7,344 7,024 4.6% 14,845 14,707 0.9%
Expenses:
Recoverable Operating
Expenses.............. 2,901 2,272 27.7% 5,667 4,737 19.6%
Other Operating
Expenses.............. 48 465 -89.7% 455 810 -43.8%
------- ------- ------- -------
Total Expenses....... 2,949 2,737 7.7% 6,122 5,547 10.4%
------- ------- ------- -------
Net Operating Income..... $ 4,395 $ 4,287 2.5% $ 8,723 $ 9,160 -4.8%
======= ======= ======= =======
Total Properties......... 2 2 2 2
======= ======= ======= =======
Percentage Leased........ 90.0% 89.9% 90.0% 89.9%
======= ======= ======= =======
</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 9.5% for the quarter and six months ended
June 30, 1998 from the same periods in the prior year.
8
<PAGE>
CENTER TRUST
SUMMARY OF LEASING ACTIVITY--COMMUNITY SHOPPING CENTERS
JUNE 30, 1998
<TABLE>
<CAPTION>
THREE SIX
MONTHS ENDED MONTHS ENDED
JUNE 30, JUNE 30,
------------ ------------
<S> <C> <C>
Space Vacated
Number of Leases................................... 10 20
Gross Leasable Area................................ 30,076 63,684
Base Rent per Square Foot.......................... $ 9.27 $15.38
New Leases Executed
Number of Leases Executed.......................... 10 25
Gross Leasable Area................................ 31,216 68,392
Base Rent per Square Foot.......................... $ 11.82 $14.05
Lease Renewals Executed
Number of Leases................................... 6 21
Gross Leasable Area................................ 18,530 77,360
New Annual Base Rent per Square Foot............... $ 17.76 $15.50
Percentage Change from Prior....................... 10.4% 6.6%
Leases with Contractual Rent Adjustments
Number of Leases................................... 37 84
Gross Leasable Area................................ 100,134 477,889
New Annual Base Rent per Square Foot............... 14.06 11.72
Percentage Change from Prior....................... 11.8% 4.0%
</TABLE>
9
<PAGE>
CENTER TRUST
SUMMARY OF ACQUISITION PROPERTIES
FOR THE 6 MONTHS ENDED JUNE 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
--------- --------- --------
Total 1998 Year to Date 2,761,187 2,286,163 $225,000
========= ========= ========
</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 JUNE 30, 1998
<TABLE>
<CAPTION>
AVERAGE
TOTAL LEASED GLA BASE RENT
--------------------------- COMPANY PERCENT ANNUALIZED PER SQ.
ANCHOR PAD SHOP OWNED GLA LEASED BASE RENT FT.
--------- ------- --------- --------- ------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY SHOPPING
CENTERS
Pacific Northwest
Region............... 951,620 104,232 679,794 1,897,284 91.5 $17,801,988 $10.26
Northern & Central
California Region.... 436,195 11,808 366,687 859,686 94.8 9,808,413 12.04
Southern California
Region............... 2,303,841 335,769 755,566 3,713,145 91.4 39,291,056 11.56
Southwest Region...... 447,388 39,471 251,974 782,630 94.4 5,820,088 7.88
--------- ------- --------- --------- ----- ----------- ------
TOTAL COMMUNITY
SHOPPING CENTERS... 4,139,044 491,280 2,054,021 7,252,745 92.2 $72,721,545 $10.87
--------- ------- --------- --------- ----- ----------- ------
REGIONAL MALLS.......... 609,515 82,794 368,132 1,178,009 90.0 $17,219,702 $16.24
--------- ------- --------- --------- ----- ----------- ------
SINGLE TENANT
FACILITIES............. 1,241,614 12,242 -- 1,253,856 100.0 $ 7,447,348 $ 5.94
--------- ------- --------- --------- ----- ----------- ------
TOTAL PORTFOLIO..... 5,990,173 586,316 2,422,153 9,684,610 92.9 $97,388,595 $10.82
========= ======= ========= ========= ===== =========== ======
</TABLE>
11
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF JUNE 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 -- 70,668 151,427 93.4 $ 1,509,492 $10.67 Safeway, Payless Drugs
Covington, WA
Fairwood
Shopping
Center......... 1995 124,583 10,954 68,766 211,682 96.5 1,849,405 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 1,532,017 10.07 Safeway, Bartell Drugs
Lake Stevens,
WA
Gresham Town
Fair........... 1988 159,282 26,587 66,129 264,649 95.2 2,174,363 8.63 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 2,017,090 7.79 Cinemark Theatres, Sears, Emporium,
Medford, OR Safeway*, Payless*, Circuit City
Pacific Linen
Plaza.......... 1988 25,000 -- 42,244 69,432 96.8 906,324 13.48 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 66,862 132,465 96.0 1,452,063 11.42 Ross Stores, Michaels, Pier 1 Imports
Portland, OR
Silverdale
Shopping
Center......... 1990 29,020 -- 26,700 67,330 82.8 621,978 11.16 Ross Stores
Silverdale, WA
Sixth Avenue
Plaza.......... 1986 73,166 -- 61,911 139,107 97.1 1,057,099 7.83 Sears, Drug Emporium, Artco
Tacoma, WA
Vancouver Park
Place.......... 1987 33,938 14,900 29,151 77,989 100.0 898,786 11.52 T.J. Maxx, Pier 1 Imports
Vancouver, WA
Westgate North
Shopping
Center......... 1980 37,902 13,336 55,513 110,251 96.8 1,172,612 10.98 Quality Food Centers
Tacoma, WA
------- ------- ------- --------- ----- ----------- ------
Pacific
Northwest
Region......... 951,620 104,232 679,794 1,897,284 91.5 $17,801,988 $10.26
======= ======= ======= ========= ===== =========== ======
</TABLE>
12
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF JUNE 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 $ 88,324 $ 6.93
Bakersfield, CA
The City Center. 1992 177,584 -- 14,055 194,193 98.7 2,719,246 14.19
San Francisco,
CA
Madera
Marketplace.... 1992 92,278 -- 63,961 168,596 92.7 1,658,265 10.61
Madera, CA
Marshall's
Plaza.......... 1989 43,000 -- 34,875 79,000 98.6 1,090,895 14.01
Modesto, CA
Mineral King
Plaza.......... 1983 -- -- 32,860 39,060 84.1 518,177 15.77
Visalia, CA
Rheem Valley.... 1990 51,009 5,150 90,873 153,786 95.6 1,621,208 11.03
Moraga, CA
Rosedale Village
Shopping
Center......... 1991 72,324 6,658 46,679 127,527 98.5 1,366,609 10.88
Bakersfield, CA
Southpointe
Plaza.......... 1982 -- -- 70,644 83,409 84.7 745,689 10.56
Sacramento, CA
------- ------ ------- ------- ----- ---------- ------
Northern &
Central
California
Region......... 436,195 11,808 366,687 859,686 94.8 $9,808,413 $12.04
======= ====== ======= ======= ===== ========== ======
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 97.0 621,278 3.58
El Centro, CA
Country Fair
Shopping
Center......... 1992 96,225 24,341 26,741 168,367 87.5 1,910,089 12.97
Chino, CA
Covina Town
Square......... 1997 266,383 6,500 48,289 351,517 91.4 4,601,220 14.33
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, Pak-N-Sav
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 JUNE 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 1,720,877 14.97 Sam's Club (Wal-Mart)
Cathedral City,
CA
El Camino North. 1982 64,600 130,611 72,988 324,394 82.7 3,380,842 12.61 Mervyn's*, Toys 'R' Us*, Mann Theatres,
Oceanside, CA Ross Stores
Empire Center... 1993 50,967 23,344 80,480 261,996 59.1 1,797,519 11.61 Target*, Mervyn's*, Miller's Outpost,
Fontana, CA Ross Stores
Fire Mountain
Center.......... 1987 44,481 23,432 25,865 93,778 100.0 1,722,204 18.36 Stroud's, Lamps Plus, Wherehouse,
Oceanside, CA Aaron Bros., Trader Joe's, Bookstar
Fullerton Town
Center.......... 1987 177,653 19,722 62,960 278,647 93.4 3,933,321 15.11 Price Club*, AMC Theatres, Aaron Bros.,
Fullerton, CA Toys 'R' Us, Fabri-Centers, Office Depot
Gardena Gateway
Center.......... 1990 41,300 5,062 19,625 65,987 100.0 999,640 15.15 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 1,447,890 9.46 Food 4 Less, Pic-N-Save, Thrifty,
Los Angeles, CA Super Trak Auto
La Verne Towne
Center.......... 1986 158,860 1,940 45,179 231,143 89.1 1,165,719 5.66 Target, Albertson's
La Verne, CA
Lakewood Plaza.. 1989 93,342 4,365 15,804 113,511 100.0 1,267,462 11.17 Lucky Stores, Staples
Bellflower, CA
Loma Square..... 1980 96,514 -- 101,370 210,704 93.9 2,568,166 12.98 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 2,752,011 11.23 Sears, Toys 'R' Us, AMC Theatres, Petco
Montebello, CA
North County
Plaza........... 1987 43,610 28,720 70,245 153,325 93.0 2,046,980 14.36 Marshall's, Michael's, Kids 'R' Us
Carlsbad, CA
Parkway Place... 1989 91,127 12,917 13,756 120,460 97.8 1,213,418 10.30 Advantage (Lucky), Office Depot
Escondido, CA
Pomona Gateway
Center.......... 1993 96,418 6,487 2,492 108,887 96.8 920,161 8.73 Vons, Pic-N-Save
Pomona, CA
</TABLE>
14
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF JUNE 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 67,192 100.0 895,422 13.33
San Fernando,
CA
Vermont-Slauson
Shopping
Center......... 1981 142,411 3,720 23,613 169,744 100.0 968,653 5.71
Los Angeles, CA
Vineyards
Marketplace..... 1991 21,415 -- 30,116 56,035 92.0 758,595 14.72
Rancho
Cucamonga, CA
--------- ------- --------- --------- ----- ----------- ------
Southern
California
Region......... 2,303,841 335,769 755,566 3,713,145 91.4 $39,291,056 $11.56
--------- ------- --------- --------- ----- ----------- ------
SOUTHWEST REGION
Charleston
Plaza........... 1989 153,131 9,226 43,352 222,594 92.4 $ 1,977,013 $ 9.61
Las Vegas, NV
Kyrene Village.. 1987 95,957 5,120 47,892 161,174 92.4 1,143,399 7.68
Chandler, AZ
Southern Palms
Center.......... 1980 95,275 20,025 127,636 254,863 95.3 1,915,219 7.88
Tempe, AZ
Sunrise Place
Center.......... 1992 103,025 5,100 33,094 143,999 98.1 784,457 5.55
Tucson, AZ
--------- ------- --------- --------- ----- ----------- ------
Southwest
Region.......... 447,388 39,471 251,974 782,630 94.4 $ 5,820,088 $ 7.88
========= ======= ========= ========= ===== =========== ======
COMMUNITY RETAIL
CENTERS 4,139,044 491,280 2,054,021 7,252,745 92.2 $72,721,545 $10.87
========= ======= ========= ========= ===== =========== ======
REGIONAL MALLS
Baldwin Hills
Crenshaw Plaza. 1988 141,554 33,810 145,450 359,604 89.2 $ 5,800,897 $18.08
Los Angeles, CA
Media City
Center.......... 1992 467,961 48,984 222,682 818,405 90.4 11,418,805 15.44
Burbank, CA
--------- ------- --------- --------- ----- ----------- ------
Regional Malls.. 609,515 82,794 368,132 1,178,009 90.0 $17,219,702 $16.24
========= ======= ========= ========= ===== =========== ======
<CAPTION>
ANCHOR OR
PROPERTY NAME PRINCIPAL TENANTS
- ------------- -----------------
<S> <C>
San Fernando
Mission Plaza... KV-Mart (Vons)
San Fernando,
CA
Vermont-Slauson
Shopping
Center......... 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
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
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..
</TABLE>
15
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
AS OF JUNE 30, 1998
<TABLE>
<CAPTION>
YEAR
BUILT TOTAL LEASED GLA ANNUALIZED AVERAGE
OR --------------------------- COMPANY PERCENT BASE BASE RENT ANCHOR OR
PROPERTY NAME REMODEL ANCHOR PAD SHOP OWNED GLA LEASED RENT PER SQ. FT. PRINCIPAL TENANTS
- ------------- ------- --------- ------- --------- --------- ------- ----------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SINGLE TENANT
FACILITIES
Home Base.......... 1988 107,165 -- -- 107,165 100.0 $ 870,180 $ 8.12 Home Base, Lucky
Glendora, CA Stores*, Sav-on,
KMart.............. 1990 104,204 -- -- 104,204 100.0 551,576 5.29 KMart
Phoenix, AZ
KMart.............. 1990 86,479 -- -- 86,479 100.0 457,744 5.29 KMart
Banning, CA
KMart.............. 1990 86,479 -- -- 86,479 100.0 507,915 5.87 KMart
El Centro, CA
KMart.............. 1990 86,479 -- -- 86,479 100.0 365,373 4.22 KMart
Los Banos, CA
KMart.............. 1990 86,479 -- -- 86,479 100.0 415,951 4.81 KMart
Madera, CA
KMart.............. 1990 86,479 -- -- 86,479 100.0 411,132 4.75 KMart
Rocklin, CA
Montgomery Wards... 1989 102,400 -- -- 102,400 100.0 537,600 5.25 Montgomery Ward
Tucson, AZ
Sears.............. 1992 134,644 -- -- 134,644 100.0 401,785 2.98 Sears
Hollywood, CA
Vons............... 1989 36,800 -- -- 36,800 100.0 312,800 8.50 Vons
Escondido, CA
Vons............... 1993 102,400 -- -- 102,400 100.0 825,418 8.06 Vons
Simi Valley, CA
Sam's Club......... 1988 110,822 3,900 -- 114,722 100.0 730,884 6.37 Sam's Club (Wal-Mart)
Downey, CA
Sam's Club......... 1988 110,784 8,342 -- 119,126 100.0 1,058,990 8.89 Sam's Club (Wal-Mart)
Fountain Valley, CA
--------- ------- --------- --------- ----- ----------- ------
SINGLE TENANT
FACILITIES........ 1,241,614 12,242 -- 1,253,856 100.0 $ 7,447,348 $ 5.94
--------- ------- --------- --------- ----- ----------- ------
TOTAL PROPERTIES... 5,990,173 586,316 2,422,153 9,684,610 92.9 $97,388,595 $10.82
========= ======= ========= ========= ===== =========== ======
</TABLE>
- ------
* Anchor space non-owned by Company
16
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--OVERALL PORTFOLIO
JUNE 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.......... 130 229,930 $13.37 30,576 $6.95 3,400 $24.10 195,954 $14.19
1998.................... 101 183,848 16.45 -- -- 4,365 7.68 179,483 16.66
1999.................... 178 427,576 14.69 83,813 9.49 12,977 13.19 330,786 16.07
2000.................... 169 537,751 13.14 176,347 9.28 47,749 14.36 313,655 15.13
2001.................... 191 699,143 12.34 295,828 6.30 40,597 17.07 362,718 16.74
2002.................... 164 822,364 10.50 432,013 5.45 70,085 13.56 320,266 16.64
2003.................... 75 460,720 10.06 263,773 5.90 32,414 16.04 164,533 15.54
2004.................... 46 470,476 8.99 352,842 6.53 20,563 16.00 97,071 16.43
2005.................... 40 367,330 14.27 210,815 13.41 37,333 14.31 119,182 15.77
2006.................... 44 364,955 13.03 219,883 11.52 30,543 11.28 114,529 16.40
2007.................... 45 423,656 12.12 240,404 9.64 64,152 12.02 119,100 17.19
THEREAFTER.............. 133 4,010,893 9.14 3,683,879 8.68 222,138 15.06 104,876 12.63
----- --------- ------ --------- ----- ------- ------ --------- ------
TOTAL............... 1,316 8,998,642 $10.82 5,990,173 $8.41 586,316 $14.43 2,422,153 $15.90
===== ========= ====== ========= ===== ======= ====== ========= ======
</TABLE>
17
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
JUNE 30, 1998
Pacific Northwest Region
<TABLE>
<CAPTION>
OVERALL PORTFOLIO 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.......... 22 46,178 $13.04 -- -- 1,000 $12.60 45,178 $13.05
1998.................... 29 77,451 $14.06 -- -- -- -- 77,451 14.06
1999.................... 45 119,139 12.10 14,910 $ 6.60 2,477 17.50 101,752 12.78
2000.................... 43 121,914 13.85 -- -- 18,790 17.67 103,124 13.15
2001.................... 43 212,709 9.51 105,780 5.37 -- -- 106,929 13.54
2002.................... 33 146,942 10.86 68,605 6.70 12,100 13.75 66,237 14.64
2003.................... 16 79,309 10.78 26,832 6.04 9,974 17.47 42,503 12.20
2004.................... 8 111,599 4.15 86,385 1.87 3,017 11.26 22,197 12.06
2005.................... 9 80,860 11.63 29,080 6.30 12,259 12.95 39,521 15.15
2006.................... 12 79,242 12.99 47,130 8.58 -- -- 32,112 19.45
2007.................... 9 48,639 14.15 -- -- 18,562 11.53 30,077 15.77
THEREAFTER.............. 30 611,664 8.81 572,898 8.46 26,021 14.21 12,745 13.32
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................... 299 1,735,646 $10.26 951,620 $ 7.23 104,200 $14.56 679,826 $13.83
=== ========= ====== ======= ====== ======= ====== ======= ======
Northern and Central California Region
<CAPTION>
OVERALL PORTFOLIO 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>
1998.................... 37 60,272 $12.81 -- -- -- -- 60,272 $12.81
1999.................... 27 44,003 12.90 -- -- -- -- 44,003 12.90
2000.................... 29 91,093 9.77 52,165 $ 6.47 -- -- 38,928 14.18
2001.................... 30 68,550 13.55 -- -- -- -- 68,550 13.55
2002.................... 27 69,602 13.33 -- -- 6,658 $12.00 62,944 13.47
2003.................... 14 77,069 14.44 23,247 16.59 -- -- 53,822 13.52
2004.................... 9 29,084 19.74 16,000 23.74 1,650 14.67 11,434 14.88
2005.................... 2 32,246 8.35 25,844 6.71 -- -- 6,402 14.98
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.............. 7 275,623 10.57 269,523 10.41 3,500 15.00 2,600 20.92
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................. 189 814,690 $12.04 436,195 $10.77 11,808 $13.26 366,687 $13.51
=== ========= ====== ======= ====== ======= ====== ======= ======
</TABLE>
18
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
JUNE 30, 1998
Southern California Region
<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.......... 37 83,288 $13.43 30,576 $ 6.95 2,400 $28.90 50,312 $16.64
1998.................... 25 40,111 18.28 -- -- 4,365 7.68 35,746 19.57
1999.................... 62 191,815 14.66 68,903 10.12 4,275 13.88 118,637 17.32
2000.................... 65 249,056 14.01 109,580 11.12 25,059 12.76 114,417 17.06
2001.................... 59 317,769 11.19 190,048 6.82 31,265 16.85 96,456 17.96
2002.................... 55 334,837 10.78 200,764 6.69 38,195 12.98 95,878 18.47
2003.................... 26 229,036 7.73 176,807 4.71 22,440 15.40 29,789 19.88
2004.................... 14 151,827 10.55 102,485 7.85 9,396 22.43 39,946 14.68
2005.................... 14 113,871 11.38 58,312 8.69 23,354 13.94 32,205 14.41
2006.................... 16 168,202 14.21 99,919 14.40 19,013 11.94 49,270 14.71
2007.................... 18 159,074 12.49 89,975 11.33 45,590 12.22 23,509 17.49
THEREAFTER.............. 53 1,356,290 10.98 1,176,472 10.66 110,417 13.19 69,401 12.82
--- --------- ------ --------- ------ ------- ------ ------- ------
TOTAL............... 444 3,395,176 $11.56 2,303,841 $ 9.51 335,769 $13.78 755,566 $16.83
=== ========= ====== ========= ====== ======= ====== ======= ======
</TABLE>
Southwest Region
<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.......... 8 11,855 $ 8.53 -- -- -- -- 11,855 $ 8.53
1998.................... 11 20,473 $12.33 -- -- -- -- 20,473 12.33
1999.................... 22 43,781 13.99 -- -- 6,225 $11.00 37,556 14.49
2000.................... 18 54,829 10.38 14,602 $5.50 -- -- 40,227 12.07
2001.................... 15 44,838 11.14 -- -- 5,100 13.73 39,738 10.80
2002.................... 20 77,730 9.25 28,000 5.58 3,750 27.95 45,980 9.96
2003.................... 4 43,087 5.07 36,887 4.76 -- -- 6,200 6.95
2004.................... 1 15,000 4.14 15,000 4.14 -- -- -- --
2005.................... 2 18,221 9.96 -- -- -- -- 18,221 9.96
2006.................... 6 59,564 6.21 47,530 4.40 5,120 13.00 6,914 13.61
2007.................... 4 73,513 6.76 64,213 5.72 -- -- 9,300 13.94
THEREAFTER.............. 11 275,942 6.30 241,156 5.62 19,276 13.68 15,510 7.63
--- ------- ------ ------- ----- ------ ------ ------- ------
TOTAL............... 122 738,833 $ 7.88 447,388 $5.38 39,471 $14.61 251,974 $11.26
=== ======= ====== ======= ===== ====== ====== ======= ======
</TABLE>
19
<PAGE>
CENTER TRUST
SUMMARY OF TENANTS WITH RENTS EXCEEDING 1% OF TOTAL RENTS
AS OF JUNE 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 6.06% 259,842 2.68%
2. Safeway/Vons......... 8 3,824,775 3.93% 469,271 4.85%
3. Sam's Club/Wal-Mart
Stores.............. 3 3,138,834 3.22% 321,525 3.32%
4. Lucky Stores, Inc. .. 5 3,081,453 3.16% 308,170 3.18%
5. Kmart Group.......... 7 2,927,871 3.01% 619,103 6.39%
6. Toys "R" Us.......... 5 2,258,638 2.32% 214,772 2.22%
7. Sears Roebuck & Co. . 5 1,799,433 1.85% 427,731 4.42%
8. Fred Meyers
(Ralphs/FFL/QFC).... 5 1,650,745 1.70% 196,674 2.03%
9. TJX.................. 7 1,642,473 1.69% 190,849 1.97%
10. Home Base............ 2 1,608,639 1.65% 212,572 2.19%
11. Payless ShoeSource,
Inc. ............... 18 1,324,600 1.36% 62,755 0.65%
12. Magic Johnson
Theatres............ 1 1,288,210 1.32% 67,579 0.70%
13. The Limited.......... 8 1,171,930 1.20% 63,748 0.66%
14. Dayton Hudson
(Mervyn's/Target)... 3 1,131,500 1.16% 261,938 2.70%
15. Barnes & Noble....... 3 1,117,682 1.15% 60,272 0.62%
16. Ross Stores, Inc. ... 5 1,110,610 1.14% 145,012 1.50%
17. Office Depot......... 4 1,107,518 1.14% 100,247 1.04%
18. Circuit City......... 3 999,900 1.03% 84,680 0.87%
--- ----------- ----- --------- -----
Total................ 98 $37,084,706 38.09% 4,066,740 41.99%
=== =========== ===== ========= =====
</TABLE>
20
<PAGE>
CENTER TRUST
MAJOR SEGMENT CONCENTRATION EXCEEDING 2% OF TOTAL RENTS
AS OF JUNE 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............ 25 $10,276,457 10.55% 1,287,636 13.30%
Theatres.................. 9 8,211,671 8.43% 409,694 4.23%
Discount Department
Stores................... 11 6,248,205 6.42% 1,055,360 10.90%
Restaurants............... 65 4,994,993 5.13% 332,889 3.44%
Department Stores......... 11 4,802,156 4.93% 1,033,118 10.67%
Fast Food Restaurants..... 91 3,865,027 3.97% 184,083 1.90%
Discount Apparel Stores... 23 3,066,102 3.15% 373,972 3.86%
Audio/video Stores........ 34 3,021,762 3.10% 171,487 1.77%
Electronic Stores......... 24 2,849,716 2.93% 179,878 1.86%
Major Shoe Stores......... 42 2,770,152 2.84% 137,965 1.42%
Home Improvement.......... 10 2,769,069 2.84% 392,327 4.05%
Women's Wear Stores....... 42 2,550,730 2.62% 170,738 1.76%
Toy Stores................ 10 2,437,994 2.50% 219,622 2.27%
Bank And Financial
Services................. 52 2,287,244 2.35% 153,278 1.58%
Drug Stores............... 16 2,129,370 2.19% 311,995 3.22%
Sporting Goods Stores..... 18 2,022,326 2.08% 157,666 1.63%
--- ----------- ----- --------- -----
Total................. 483 $64,302,974 66.03% 6,571,708 67.86%
=== =========== ===== ========= =====
</TABLE>
21
<PAGE>
CENTER TRUST
CONSOLIDATED INCOME STATEMENTS AND RECONCILIATION TO FUNDS FROM OPERATIONS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------- ------------------
1998 1997 1998 1997
--------- --------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Rental revenues...................... $ 23,156 $ 15,708 $ 42,688 $ 31,634
Expense reimbursements............... 6,617 4,510 12,790 9,497
Percentage rents..................... 323 167 562 438
Other income......................... 1,268 953 2,493 1,952
--------- --------- -------- --------
Total revenues................... 31,364 21,338 58,533 43,521
--------- --------- -------- --------
Interest............................. 12,172 9,025 22,426 17,922
Depreciation and amortization........ 5,916 4,475 11,305 8,790
Property operating costs:
Common area........................ 4,738 3,218 8,815 6,567
Property taxes..................... 2,932 1,805 5,704 3,881
Leasehold rentals.................. 414 417 825 820
Marketing.......................... 83 40 158 152
Other operating.................... 596 222 1,026 674
General and administrative......... 2,454 1,252 3,923 2,490
--------- --------- -------- --------
Total expenses................... 29,305 20,454 54,182 41,296
--------- --------- -------- --------
Income From Operations Before
Minority Interest................... 2,059 884 4,351 2,225
Minority interests--Operating
Partnership......................... (421) (212) (864) (544)
Minority interests--Other............ (68) (71) (137) (147)
--------- --------- -------- --------
Net Income........................... 1,570 601 3,350 1,534
Adjustments to reconcile net income
to FFO:
Depreciation of real property...... 5,876 4,470 11,224 8,772
Minority Interests................. 347 138 714 397
Other.............................. 414 -- 439 --
--------- --------- -------- --------
Funds From Operations--Basic......... 8,207 5,209 15,727 10,703
Adjustments to reconcile Basic to
Diluted FFO:
Debenture interest................. 3,142 3,142 6,284 6,284
Amortization of Deferred costs--
Debentures........................ 325 325 650 650
--------- --------- -------- --------
Funds From Operations--Diluted....... $ 11,674 $ 8,676 $ 22,661 $ 17,637
========= ========= ======== ========
</TABLE>
22
<PAGE>
CENTER TRUST
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31, DECEMBER 31,
1998 1997 1996
----------- ------------ ------------
(UNAUDITED)
<S> <C> <C> <C>
ASSETS
------
Rental Properties........................ $1,006,290 $783,279 $ 659,565
Accumulated depreciation and
amortization............................ (131,004) (121,202) (104,330)
---------- -------- ---------
Rental properties, net................... 875,286 662,077 555,235
Cash and cash equivalents................ 3,515 3,613 5,941
Tenant receivables, net.................. 8,040 6,017 5,987
Other Receivables........................ 6,151 7,575 3,650
Receivable From Management Company....... -- -- 1,055
Investment in Management Company......... -- -- 621
Restricted cash.......................... 7,140 9,435 3,252
Deferred charges, net.................... 19,589 19,759 18,365
Other assets............................. 1,547 2,237 770
---------- -------- ---------
Total................................ $ 921,268 $710,713 $ 594,876
========== ======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES
Secured debt............................. $ 438,949 $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.................... 9,940 7,371 7,039
Accrued interest......................... 5,944 5,604 5,490
Accounts payable and other accrued
expenses................................ 5,646 8,482 5,340
Accrued construction costs............... 2,882 10,996 1,207
Tenant security and other deposits....... 5,405 4,729 4,287
---------- -------- ---------
Total liabilities.................... 637,365 519,441 434,603
---------- -------- ---------
MINORITY INTERESTS Operating Partnership
(5,272,239, 4,280,789 and 4,286,456
units issued as of June 30, 1998 and
December 31, 1997 and 1996,
respectively)........................... 53,896 39,685 41,640
Other minorities......................... 1,885 1,748 2,007
Total minority interest.............. 55,781 41,433 43,647
---------- -------- ---------
REDEEMABLE COMMON STOCK (510,034 shares
outstanding as of June 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;
21,838,226, 15,664,814 and 12,024,378
shares issued and outstanding as of
June 30, 1998 and December 31, 1997
and 1996, respectively)............... 218 157 120
Additional paid-in capital............. 313,576 223,972 174,792
Accumulated distributions and
deficit............................. (94,215) (82,675) (58,286)
---------- -------- ---------
Total stockholders' equity........... 219,579 141,454 116,626
---------- -------- ---------
Total................................ $ 921,268 $710,713 $ 594,876
========== ======== =========
</TABLE>
23
<PAGE>
CENTER TRUST
SUMMARY OF OUTSTANDING DEBT
JUNE 30, 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
BALANCE BALANCE
MATURITY JUNE 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 $ 17,885 $ 17,960
Metropolitan Life
Insurance Company Date Palm 10.450% 07/31/02 9,455 9,515
Metropolitan Life
Insurance Company Escondido 9.300% 11/01/99 2,706 2,726
Massachusetts Mutual Life
Insurance Company Fire Mountain 10.250% 10/01/99 7,433 7,481
The Travelers Insurance
Company Glendora 9.500% 10/01/99 6,085 6,110
Aid Association for
Lutherans Gardena 10.050% 02/15/02 6,676 6,710
Connecticut General Life
Insurance Company Gresham 7.500% 04/01/99 9,605 9,762
Aid Association for
Lutherans Westgate North 8.300% 04/01/14 6,181 5,955
Teachers Insurance and
Annuity Association of
America Pavilions 7.440% 08/01/06 24,747 --
The Travelers Insurance
Company North County 10.375% 01/31/03 15,936 --
The Prudential Insurance
Company of America Loma Square 9.310% 08/15/99 19,333 --
Sun Life Assurance
Company of Canada Fairwood 8.375% 02/01/04 7,582 --
Column Financial, Inc. Mineral King 9.680% 08/01/06 3,809 --
DLJ Mortgage Acceptance
Corp. Charleston 8.050% 01/01/06 15,061 --
Eastrich #79 Corporation
(AEW)(1) Loan # 1 11.450% 10/15/06 30,165 30,691
Eastrich #79 Corporation
(AEW)(2) Loan # 2 10.900% 10/15/06 9,716 9,884
Nomura Asset Capital
Corporation(3) Tranche A 8.938% 04/01/05 22,457 22,540
Nomura Asset Capital
Corporation(3) Tranche B 9.000% 04/01/10 33,354 33,474
-------- --------
Total Mortgage Loans Payable 9.246%(6) 248,186 162,808
-------- --------
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% 12/30/00 148,660 108,727
-------- --------
Total secured debt(5) 432,846 307,535
-------- --------
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 $601,445 $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 and Rheem Valley.
(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
JUNE 30, 1998
<TABLE>
<CAPTION>
SCHEDULED
AMORTIZATION SCHEDULED
YEAR PAYMENTS MATURITIES TOTAL
- ---- ------------ ---------- --------
<S> <C> <C> <C>
1998 (6 mos)................................. $ 2,075 $ -- $ 2,075
1999......................................... 3,924 44,218 48,142
2000......................................... 3,800 148,660(1) 152,460
2001......................................... 4,210 -- 4,210
2002......................................... 4,494 8,842 13,336
2003......................................... 4,550 15,936 20,486
2004......................................... 4,535 22,898 27,433
2005......................................... 4,224 20,953 25,177
2006......................................... 3,228 60,251 63,479
2007......................................... 1,086 -- 1,086
Thereafter................................... 15,129 59,833 74,962
------- -------- --------
Total...................................... $51,255 $381,591 $432,846
======= ======== ========
</TABLE>
- --------
(1) Represents amount outstanding on the Company's secured credit facility
which is due on December 31, 2000.
25
