<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) FEBRUARY 19, 1999
----------------
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 February 19, 1999 the Registrant made available additional financial and
operational information concerning the Registrant, CenterTrust Retail
Properties, Inc., and properties owned as of December 31, 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 December 31, 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: February 19, 1999
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
December 31, 1998
Table of Contents
<TABLE>
<CAPTION>
Page
-----
<S> <C>
Company Profile.......................................................... 5
Financial Highlights..................................................... 6-7
Reconciliation of Common Shares and Operating Partnership Units
Outstanding............................................................. 8
Same Property Net Operating Income....................................... 9
Summary of Leasing Activity -- Community Shopping Centers................ 10
Property Acquisitions.................................................... 11
Portfolio Detail......................................................... 12
Portfolio Summary -- by Region........................................... 13-17
Lease Expirations -- Overall Portfolio................................... 18
Lease Expirations -- Community Shopping Centers by Region................ 19-20
Tenant Concentration..................................................... 21
Segment Concentration.................................................... 22
Consolidated Statements of Operations and Reconciliation to Funds From
Operations.............................................................. 23
Balance Sheets........................................................... 24
Summary of Debt Outstanding.............................................. 25
Schedule of Debt Maturities.............................................. 26
</TABLE>
4
<PAGE>
CENTER TRUST
COMPANY PROFILE
December 31, 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 48 community shopping centers, two regional malls and 11
single tenant facilities comprising 12.1 million square feet of total shopping
center gross leasable area (GLA) and 9.8 million square feet of Company owned
GLA. Of the 48 community shopping centers, 19 were acquired 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%. Reflected in these numbers is the sale of two properties during
the first quarter of 1999, The City Center and Sam's Fountain Valley. 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
and year ended, December 31, 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 December 31, 1998
(in thousands except share and Property data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Financial Highlights
Funds From Operations (FFO)
FFO--Basic........................ $ 10,900 $ 5,985 $ 36,301 $ 21,924
FFO--Diluted(1)................... $ 14,366 $ 9,452 $ 50,169 $ 35,793
FFO per share--Basic.............. $ 0.35 $ 0.31 $ 1.37 $ 1.25
FFO per share--Diluted(1)......... $ 0.36 $ 0.33 $ 1.40 $ 1.33
Net Loss............................ $ (14,855) $ (6,779) $ (8,113) $ (4,645)
Net Loss Per Share--Basic and
Diluted.......................... $ (0.58) $ (0.44) $ (0.38) $ (0.35)
Funds Available for Distribution
(FAD).............................. $ 10,852 $ 6,210 $ 36,642 $ 23,308
FAD per share--Basic.............. $ 0.35 $ 0.32 $ 1.38 $ 1.32
EBITDA.............................. $ 23,924 $ 14,876 $ 84,159 $ 58,700
Dividends Per Share................. $ 0.36 $ 0.36 $ 1.44 $ 1.44
Interest Expense Coverage Ratios:
Based on EBITDA................... 1.8 1.6 1.7 1.6
Based on EBITDA--Excluding
Debenture Interest............... 2.5 2.7 2.4 2.6
</TABLE>
<TABLE>
<CAPTION>
As of December 31,
--------------------------------
1998 1997 1996
---------- --------- ---------
<S> <C> <C> <C>
Portfolio Information
Company Owned GLA
Community Shopping Centers.................. 7,887,404 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................... 10,184,625 7,216,999 6,238,274
Percentage Leased
Community Shopping Centers.................. 91.9% 93.8% 93.0%
Regional Malls.............................. 90.9% 91.3% 92.5%
Single Tenant Facilities.................... 100.0% 100.0% 100.0%
Overall Portfolio......................... 92.7% 94.6% 95.8%
Average Base Rent per Square Foot
Community Shopping Centers.................. $ 11.26 $ 11.15 $ 10.49
Regional Malls.............................. $ 16.16 $ 16.95 $ 16.84
Single Tenant Facilities.................... $ 6.37 $ 5.73 $ 5.86
Overall Portfolio......................... $ 11.23 $ 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 December 31, 1998
(in thousands except share data)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Equity Information
End of Period
Limited Partnership Units
Outstanding..................... 4,978,240 4,279,789 4,978,240 4,279,789
Common Shares Outstanding at End
of Period(1).................... 25,346,727 16,174,848 25,346,727 16,174,848
---------- ---------- ---------- ----------
Total Units and Common Shares
Outstanding................... 30,324,967 20,454,637 30,324,967 20,454,637
========== ========== ========== ==========
Weighted Average
Basic Weighted Average Units
Outstanding..................... 5,169,497 4,281,021 4,996,278 4,285,097
Basic Weighted Average Common
Shares Outstanding.............. 25,607,087 15,268,505 21,519,034 13,312,311
---------- ---------- ---------- ----------
Basic Weighted Average Units and
Common Shares Outstanding....... 30,776,584 19,549,526 26,515,312 17,597,408
---------- ---------- ---------- ----------
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).................. 40,143,195 28,916,137 35,881,923 26,964,019
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
As of
-------------------------
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Debt-to-Market Capitalization
Common Stock Price at End of Period................. $ 12.25 $ 17.44
Equity Market Capitalization........................ $ 371,481 356,729
Total Capitalization................................ $1,037,466 $838,988
Total Capitalization Assuming Conversion of
Debentures....................................... $ 938,608 $833,743
Debt-to-Total Capitalization........................ 64.2% 57.5%
Debt-to-Total Capitalization(3)..................... 59.4% 61.1%
Debt-to-Total Capitalization Assuming Conversion of
Debentures......................................... 50.6% 37.6%
Debt-to-Total Capitalization Assuming Conversion of
Debentures(3)...................................... 45.5% 41.2%
</TABLE>
- --------
(1) As of December 31, 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>
RECONCILIATION OF COMMON SHARES AND OPERATING PARTNERSHIP
UNITS OUTSTANDING
As of December 31, 1998
<TABLE>
<S> <C>
Common Shares:
Balance, January 1, 1998.......................................... 16,174,848
Shares Issued................................................... 2,700,000
Issuance of Stock Awards to Employees........................... 139,310
----------
Balance, March 31, 1998........................................... 19,014,158
Shares Issued................................................... 3,333,333
Issuance of Stock Awards to Employees........................... 769
----------
Balance, June 30, 1998............................................ 22,348,260
Shares Issued................................................... 3,366,667
Issuance of Stock Awards to Employees........................... 64,681
----------
Balance, September 30, 1998....................................... 25,779,608
Shares Repurchased(1)........................................... (436,700)
Issuance of Stock Awards to Employees........................... 3,819
----------
Balance, December 31, 1998........................................ 25,346,727
==========
Operating Partnership Units:
Balance, January 1, 1998.......................................... 4,279,789
Units Issued.................................................... 913,472
----------
Balance, March 31, 1998........................................... 5,193,261
Units Issued.................................................... 78,978
----------
Balance, June 30, 1998............................................ 5,272,239
Units Issued.................................................... 1,621
Units Repurchased............................................... (86,148)
----------
Balance, September 30, 1998....................................... 5,187,712
Units Repurchased............................................... (209,472)
----------
Balance, December 31, 1998........................................ 4,978,240
==========
</TABLE>
- --------
(1) Shares purchased under $25 million repurchase program approved by the
Board of Directors. Average cost per share including commissions and other
costs was $11.86.
8
<PAGE>
CENTER TRUST
SAME PROPERTY ACTIVITY
December 31, 1998
<TABLE>
<CAPTION>
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- ----------------
Community Shopping
Centers(1) 1998 1997 % Change 1998 1997 % Change
------------------ ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 8,467 $ 8,187 3.4% $33,550 $32,308 3.8%
Recoveries from
Tenants............... 2,390 2,215 7.9% 8,696 8,496 2.4%
Other Income........... 118 138 507 565
------- ------- ------- -------
Total Revenues....... 10,975 10,540 4.1% 42,753 41,369 3.3%
------- ------- ------- -------
Expenses:
Recoverable Operating
Expenses.............. 2,531 2,434 4.0% 9,254 9,054 2.2%
Other Operating
Expenses.............. 449 423 6.1% 1,501 1,573 -4.6%
------- ------- ------- -------
Total Expenses....... 2,980 2,857 4.3% 10,755 10,627 1.2%
------- ------- ------- -------
Net Operating Income..... $ 7,995 $ 7,683 4.1% $31,998 $30,742 4.1%
======= ======= ======= =======
Total Properties......... 19 19 19 19
======= ======= ======= =======
Percentage Leased........ 95.2% 95.7% 95.2% 95.7%
======= ======= ======= =======
Average Base Rent per
square foot............. $ 11.37 $ 11.12 $ 11.37 $ 11.12
======= ======= ======= =======
<CAPTION>
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- ----------------
Regional Malls 1998 1997 % Change 1998 1997 % Change
-------------- ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue......... $ 4,664 $ 4,547 2.6% $18,040 $17,993 0.3%
Recoveries from
Tenants............... 2,538 2,303 10.2% 9,392 8,790 6.8%
Other Income........... 980 742 3,316 3,048
------- ------- ------- -------
Total Revenues....... 8,182 7,592 7.8% 30,748 29,831 3.1%
------- ------- ------- -------
Expenses:
Recoverable Operating
Expenses.............. 3,410 2,978 14.5% 12,174 10,773 13.0%
Other Operating
Expenses.............. 51 224 532 1,215
------- ------- ------- -------
Total Expenses....... 3,461 3,202 8.1% 12,706 11,988 6.0%
------- ------- ------- -------
Net Operating Income..... $ 4,721 $ 4,390 7.5% $18,042 $17,843 1.1%
======= ======= ======= =======
Total Properties......... 2 2 2 2
======= ======= ======= =======
Percentage Leased........ 90.9% 91.5% 90.9% 91.5%
======= ======= ======= =======
Average Base Rent per
square foot............. $ 16.16 $ 16.95 $ 16.16 $ 16.95
======= ======= ======= =======
</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 13.6% for the quarter ended December 31, 1998
and 10.7% for the twelve months ended December 31, 1998 over the same
periods in the prior year.
9
<PAGE>
CENTER TRUST
SUMMARY OF LEASING ACTIVITY--COMMUNITY SHOPPING CENTERS
As of December 31, 1998
<TABLE>
<CAPTION>
Three Twelve
Months Ended Months Ended
December 31, December 31,
------------ ------------
<S> <C> <C>
Space Vacated
Number of Leases................................... 18 67
Gross Leasable Area................................ 126,572 314,441
Base Rent per Square Foot.......................... $ 6.93 $ 9.02
New Leases Executed
Number of Leases Executed.......................... 26 70
Gross Leasable Area................................ 149,650 269,838
Base Rent per Square Foot.......................... $ 7.89 $ 10.33
Lease Renewals Executed
Number of Leases................................... 21 65
Gross Leasable Area................................ 31,275 196,255
New Annual Base Rent per Square Foot............... $ 18.77 $ 13.85
Percentage Change from Prior....................... 2.8% 3.9%
Leases with Contractual Rent Adjustments
Number of Leases................................... 80 333
Gross Leasable Area................................ 383,257 1,277,670
New Annual Base Rent per Square Foot............... $ 2.06 $ 13.38
Percentage Change from Prior....................... 7.3% 11.8%
</TABLE>
10
<PAGE>
CENTER TRUST
SUMMARY OF ACQUISITION PROPERTIES
For the Twelve Months Ended December 31, 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 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.
11
<PAGE>
CENTER TRUST
PORTFOLIO DETAIL
As of December 31, 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................ 12 929,436 103,432 692,141 1,893,684 18.6% 91.1 $ 18,125,529 $10.46
Northern & Central
California Region..... 8 436,195 11,808 386,392 859,975 8.4 97.0 10,250,056 12.28
Southern California
Region................ 24 2,733,760 346,842 837,461 4,256,736 41.8 92.0 46,741,018 11.92
Southwest Region....... 5 421,328 39,471 309,018 877,009 8.6 87.8 6,575,553 8.54
--- --------- ------- --------- ---------- ----- ----- ------------ ------
TOTAL COMMUNITY
SHOPPING CENTERS...... 49 4,520,719 501,553 2,225,012 7,887,404 77.4 91.9 $ 81,692,156 $11.26
REGIONAL MALLS......... 2 609,515 78,594 382,358 1,178,009 11.6 90.9 $ 17,302,916 $16.16
SINGLE TENANT
FACILITIES 12 1,106,970 12.242 -- 1,119,212 11.0 100.0 $ 7,129,031 $ 6.37
--- --------- ------- --------- ---------- ----- ----- ------------ ------
TOTAL PORTFOLIO........ 63 6,237,204 592,389 2,607,370 10,184,625 100.0% 92.7 $106,124,103 $11.23
=== ========= ======= ========= ========== ===== ===== ============ ======
</TABLE>
12
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
As of December 31, 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 $ 1,515,541 $10.83 Safeway, Payless Drugs
Covington, WA
Fairwood
Shopping
Center......... 1995 102,399 10,954 84,670 208,082 95.2 2,138,985 10.80 Safeway, PicNSave, ACE Hardware,
Renton, WA Quality Food Centers
Frontier Village
Shopping
Center......... 1993 68,473 22,023 61,624 153,320 99.2 1,521,416 10.00 Safeway, Bartell Drugs
Lake Stevens,
WA
Gresham Town
Fair........... 1988 159,282 26,587 66,619 264,649 95.4 2,209,146 8.75 Ross Stores, Emporium,
Gresham, OR G. I. Joe's, Craft Warehouse
The Medford
Center......... 1998 196,032 9,432 54,379 319,423 81.3 1,984,677 7.41 Cinemark Theatres, Sears, Emporium,
Medford, OR Safeway*, Payless*, Circuit City
Pacific Linen
Plaza.......... 1988 25,000 -- 42,244 69,432 96.8 908,297 13.51 Pacific Linen, Payless Shoesource,
Lynnwood, WA Men's Wearhouse
Pavilions'
Centre......... 1995 80,056 -- 71,847 200,209 75.9 2,533,958 16.68 Quality Food Centers, Barnes & Noble
Federal Way, WA Blockbuster Music, Petco
Ross Center..... 1987 53,331 7,000 68,544 132,465 97.3 1,482,720 11.51 Ross Stores, Michaels, Pier 1 Imports
Portland, OR
Silverdale
Shopping
Center......... 1990 29,020 -- 34,615 67,330 94.5 755,314 11.87 Ross Stores
Silverdale, WA
Sixth Avenue
Plaza.......... 1986 73,166 -- 53,811 139,107 91.3 969,499 7.64 Sears, Drug Emporium, Artco
Tacoma, WA
Vancouver Park
Place.......... 1987 33,938 14,100 29,151 77,989 99.0 918,016 11.89 T.J. Maxx, Pier 1 Imports
Vancouver, WA
Westgate North
Shopping
Center......... 1980 37,902 13,336 55,513 110,251 96.8 1,187,960 11.13 Quality Food Centers
Tacoma, WA
------- ------- ------- --------- ---- ----------- ------
Pacific
Northwest
Region......... 929,436 103,432 692,141 1,893,684 91.1 $18,125,529 $10.46
======= ======= ======= ========= ==== =========== ======
</TABLE>
13
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
As of December 31, 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>
Northern &
Central
California
Region
Bakersfield
Shopping Center. 1978 -- -- 12,740 14,115 90.3 $ 89,651 $ 7.04 Video One
Bakersfield, CA
The City Center.. 1992 177,584 -- 15,329 194,193 99.3 2,817,824 14.61 Toys 'R' Us, Mervyn's, Office
Depot, Good
San Francisco, Guys
CA
Madera
Marketplace..... 1992 92,278 -- 72,763 168,596 97.9 1,688,378 10.23 Wal-Mart*, J.C. Penney, Safeway
Madera, CA
Marshall's Plaza. 1989 43,000 -- 34,875 79,000 98.6 1,128,166 14.49 Marshall's, Good Guys
Modesto, CA
Mineral King Vons*, Longs Drug*, Chuck E.
Plaza........... 1983 -- -- 32,860 39,060 84.1 517,559 15.75 Cheese's
Visalia, CA
Rheem Valley..... 1990 51,009 5,150 90,928 153,941 95.5 1,644,732 11.18 T. J. Maxx, Longs Drugs*
Moraga, CA
Rosedale Village
Shopping Center. 1991 72,324 6,658 45,704 127,527 97.8 1,373,269 11.01 Savemart, Payless Drugs, KMart*
Bakersfield, CA
Southpointe Target*, Big 5 Sporting Goods,
Plaza........... 1982 -- -- 81,193 83,543 97.2 990,477 12.20 Discovery Zone
Sacramento, CA
------- ------ ------- ------- ----- ----------- ------
Northern &
Central
California
Region.......... 436,195 11,808 386,392 859,975 97.0 $10,250,056 $12.28
======= ====== ======= ======= ===== =========== ======
Southern
California
Region
Advantage/Sportmart
Shopping Center. 1988 105,210 12,650 -- 117,860 100.0 $ 1,358,610 $11.53 Advantage (Lucky), SportMart
San Diego, CA
Center of El Sears, Mervyn's, Miller's
Centro.......... 1980 149,300 5,623 18,616 178,889 97.0 654,618 3.77 Outpost
El Centro, CA
Country Fair
Shopping Center. 1992 96,225 24,341 27,801 168,367 88.1 1,934,245 13.04 Albertsons*, Petsmart, Thrifty,
Chino, CA Staples, T.J. Maxx
Covina Town AMC Theatres, Home Depot,
Square.......... 1997 266,383 13,583 49,654 358,600 91.9 4,957,045 15.04 Staples,
Covina, CA Petsmart, Michael's
</TABLE>
14
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
As of December 31, 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 -- 16,318 117,362 99.0 1,746,247 15.02 Sam's Club (Wal-Mart)
Cathedral City,
CA
El Camino North. 1982 96,600 130,611 67,246 324,394 90.8 3,564,190 12.10 Mervyn's*, Toys 'R' Us*, Mann Theatres,
Oceanside, CA Ross Stores, Steinmart
Empire Center... 1993 50,967 15,690 84,751 261,996 57.8 1,512,306 9.99 Target*, Mervyn's*, Miller's Outpost,
Fontana, CA Ross Stores
Fire Mountain
Center.......... 1987 44,481 14,580 24,465 93,778 89.1 1,636,656 19.59 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 3,918,186 15.19 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 97.9 978,481 15.15 Thrifty, 99 Ranch Market
Gardena, CA
Huntington
Center.......... 1989 105,879 4,365 -- 110,244 100.0 1,285,121 11.66 Toys 'R' Us, Lucky Stores
Huntington
Beach, Ca
Kenneth Hahn
Plaza........... 1987 97,186 11,798 41,325 162,665 92.4 1,431,865 9.35 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 1,210,250 5.85 Target, Albertson's
La Verne, CA
Lakewood Plaza.. 1989 93,342 4,365 15,804 113,511 100.0 1,267,897 11.17 Lucky Stores, Staples
Bellflower, CA
Loma Square..... 1980 96,514 -- 107,370 210,704 96.8 2,705,831 13.27 T.J. Maxx, Circuit City, Sav-on Drugs
San Diego, CA Staples, Super Crown Books
Montebello Town
Square.......... 1992 210,533 7,879 25,167 250,438 97.3 2,716,149 11.15 Sears, Toys 'R' Us, AMC Theatres, Petco
Montebello, CA
Mountain Square
Shopping
Center......... 1988 186,036 -- 47,619 273,280 85.5 2,911,461 12.46 Home Depot, Staples, Pavillions
Upland, CA
North County
Plaza........... 1987 43,610 28,720 71,170 153,325 93.6 2,071,890 14.44 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 96.8 937,467 8.89 Vons, Pic-N-Save
Pomona, CA
</TABLE>
15
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
As of December 31, 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>
San Fernando
Mission Plaza.. 1991 50,508 2,293 14,391 67,192 100.0 898,979 13.38 KV-Mart (Vons)
San Fernando,
CA
Torrance Ross, Marshall's, Office Depot,
Promenade...... 1991 211,883 20,496 30,849 263,228 100.0 4,076,086 15.49 Linens &
Things, Kids R Us, Bookstar,
Torrance, CA Sears Homelife
Food 4 Less, KMart, Sav-On
Vermont-Slauson. 1981 142,411 3,720 23,613 169,744 100.0 977,447 5.76 Drugs
Los Angeles, CA
Vineyards
Marketplace..... 1991 21,415 -- 30,116 56,035 92.0 761,907 14.79 Albertson's*, Sav-on Drugs
Rancho
Cucamonga, CA
--------- ------- --------- --------- ----- ----------- ------
Southern
California
Region......... 2,733,760 346,842 837,461 4,256,736 92.0 $46,741,018 $11.92
--------- ------- --------- --------- ----- ----------- ------
Southwest Region
Charleston Home Base, Lucky Stores*, Sav-
Plaza........... 1989 153,131 9,226 43,212 222,594 92.4 $ 2,126,442 $10.34 on,
Las Vegas, NV GreenBacks, Family Bargain
Center
Kyrene Village.. 1987 95,957 5,120 57,902 161,174 98.6 1,162,944 7.32 Bashas', Kyrene Lanes, The Oak
Store
Chandler, AZ
North Mountain Fry's Food & Drug*, T.J. Maxx,
Village........ 1985 41,215 -- 53,164 94,379 100.0 863,450 9.15 GreenBacks
Phoenix, AZ
Southern Palms Heilig Meyer Furniture, Coomers
Center.......... 1980 28,000 20,025 126,046 254,863 68.3 1,608,805 9.24 Craft Mall
Tempe, AZ
Sunrise Place
Center.......... 1992 103,025 5,100 28,694 143,999 95.0 813,912 5.95 Smith's Food & Drug
Tucson, AZ
--------- ------- --------- --------- ----- ----------- ------
Southwest
Region.......... 421,328 39,471 309,018 877,009 87.8 $ 6,575,553 $ 8.54
========= ======= ========= ========= ===== =========== ======
COMMUNITY RETAIL
CENTERS 4,520,719 501,553 2,225,012 7,887,404 91.9 $81,692,156 $11.26
========= ======= ========= ========= ===== =========== ======
Regional Malls
Baldwin Hills Sears*, Macy's*, Lucky Stores,
Crenshaw Plaza. 1988 141,554 29,610 155,948 359,604 91.0 $ 5,846,519 $17.87 T.J.Maxx,
Robinsons-May*, Magic Johnson
Los Angeles, CA Theatres
</TABLE>
16
<PAGE>
CENTER TRUST
PORTFOLIO SUMMARY--BY REGION
As of December 31, 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>
Media City Macy's, IKEA*, Sears*, CompUSA,
Center......... 1992 467,961 48,984 226,410 818,405 90.8 11,456,397 15.41 AMC Theatres
Mervyn's*, Office Depot,
Burbank, CA Barnes&Noble,
Virgin Records, Circuit City,
SportsChalet
--------- ------- --------- ---------- ----- ------------ ------
Regional Malls.. 609,515 78,594 382,358 1,178,009 90.9 17,302,916 $16.16
========= ======= ========= ========== ===== ============ ======
SINGLE TENANT
FACILITIES
Home Base....... 1988 107,165 -- -- 107,165 100.0 $ 870,180 $ 8.12 Home Base
Glendora, CA
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
Vons............ 1989 36,800 -- -- 36,800 100.0 312,800 8.50 Vons
Escondido, CA
Vons............ 1993 102,400 -- -- 102,400 100.0 907,959 8.06 Vons
Simi Valley, CA
Sam's Club...... 1988 110,822 3,900 -- 114,722 100.0 731,811 6.38 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..... 1,106,970 12,242 -- 1,119,212 100.0 $ 7,129,031 $ 6.37
--------- ------- --------- ---------- ----- ------------ ------
TOTAL
PROPERTIES..... 6,237,204 592,389 2,607,370 10,184,625 92.7 $106,124,103 $11.23
========= ======= ========= ========== ===== ============ ======
</TABLE>
- ------
* Anchor space non-owned by Company
17
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--OVERALL PORTFOLIO
December 31, 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.......... 152 286,614 $12.21 64,496 $ 2.54 5,365 $ 8.60 216,753 $15.18
1999.................... 193 427,087 15.09 62,313 11.41 5,952 14.72 358,822 15.74
2000.................... 186 575,140 13.74 176,347 9.30 47,749 14.66 351,044 15.84
2001.................... 228 773,008 12.89 320,422 6.98 36,397 16.74 416,189 17.10
2002.................... 177 717,842 12.75 307,373 7.51 64,890 16.75 345,579 16.66
2003.................... 124 569,375 11.39 226,886 6.29 46,772 15.64 295,717 14.64
2004.................... 64 665,175 9.78 507,906 7.64 26,788 14.83 130,481 17.08
2005.................... 41 393,388 13.43 240,580 12.47 29,679 14.41 123,129 15.07
2006.................... 47 331,741 14.46 172,353 13.48 37,105 13.00 122,283 16.28
2007.................... 42 398,602 12.20 232,109 9.91 48,738 11.48 117,755 17.01
2008.................... 30 493,284 10.83 423,693 9.67 36,754 20.70 32,837 14.74
THEREAFTER.............. 118 3,805,707 9.38 3,502,726 9.00 206,200 14.25 96,781 12.21
----- --------- ------ --------- ------ ------- ------ --------- ------
TOTAL............... 1,402 9,436,963 $11.23 6,237,204 $ 8.92 592,389 $14.89 2,607,370 $15.90
===== ========= ====== ========= ====== ======= ====== ========= ======
LEASE EXPIRATIONS--TOTAL COMMUNITY SHOPPING CENTERS
December 31, 1998
<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.......... 94 216,355 $10.52 64,496 $ 2.54 5,365 $ 8.60 146,494 $14.11
1999.................... 163 387,340 14.38 62,313 11.41 5,952 14.72 319,075 14.95
2000.................... 172 552,481 13.49 176,347 9.30 43,849 15.24 332,285 15.49
2001.................... 184 721,931 11.61 320,422 6.98 36,397 16.74 365,112 15.16
2002.................... 150 659,735 11.83 307,373 7.51 55,508 17.72 296,854 15.21
2003.................... 101 525,351 10.28 226,886 5.61 46,772 15.64 251,693 13.50
2004.................... 48 498,590 9.75 374,934 7.95 20,288 16.63 103,368 14.94
2005.................... 29 276,609 10.30 143,001 7.24 27,959 13.51 105,649 13.59
2006.................... 40 289,654 14.17 147,049 12.53 30,695 14.05 111,910 16.34
2007.................... 33 308,805 11.68 195,309 10.17 48,738 11.48 64,758 16.39
2008.................... 26 335,456 10.47 271,571 9.03 31,754 18.93 32,131 14.23
THEREAFTER.............. 89 2,474,977 10.41 2,231,018 10.16 148,276 12.85 95,683 12.10
----- --------- ------ --------- ------ ------- ------ --------- ------
TOTAL............... 1,129 7,247,284 $11.26 4,520,719 $ 9.14 501,553 $14.59 2,225,012 $14.79
===== ========= ====== ========= ====== ======= ====== ========= ======
</TABLE>
18
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
December 31, 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.......... 27 95,179 $ 9.14 42,420 $2.30 1,000 $12.60 51,759 $14.69
1999.................... 48 128,697 12.54 14,910 6.60 1,677 16.85 112,110 13.27
2000.................... 42 117,444 13.97 -- -- 18,790 18.34 98,654 13.14
2001.................... 44 198,285 9.98 105,780 5.37 -- -- 92,505 15.12
2002.................... 35 152,482 10.93 68,605 6.70 12,100 13.98 71,777 14.46
2003.................... 30 131,495 10.76 26,832 6.04 9,974 17.63 94,689 11.38
2004.................... 12 124,642 5.49 86,385 2.02 3,017 11.26 35,240 13.51
2005.................... 9 80,860 11.66 29,080 6.30 12,259 12.95 39,521 15.21
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
2008.................... 11 129,885 9.58 109,804 9.04 10,136 13.72 9,945 11.33
THEREAFTER.............. 18 435,759 9.70 398,490 9.60 15,885 11.58 21,384 9.55
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................. 298 1,725,009 $10.46 929,436 $7.50 103,400 $14.05 692,173 $13.86
=== ========= ====== ======= ====== ======= ====== ======= ======
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.......... 26 32,341 $12.43 -- -- -- -- 32,341 $12,43
1999.................... 26 39,676 13.49 -- -- -- -- 39,676 13.49
2000.................... 32 97,649 10.28 52,165 $ 6.47 -- -- 45,484 14.65
2001.................... 34 74,353 13.68 -- -- -- -- 74,353 13.68
2002.................... 29 71,713 15.02 -- -- 6,658 $12.30 65,055 15.30
2003.................... 18 91,751 14.59 23,247 18.65 -- -- 68,504 13.21
2004.................... 11 38,541 18.51 16,000 26.26 1,650 14.67 20,891 12.88
2005.................... 3 40,246 7.83 25,844 6.71 -- -- 14,402 9.85
2006.................... 4 19,940 12.17 -- -- -- -- 19,940 12.17
2007.................... 4 51,288 12.90 49,416 12.48 -- -- 1,872 24.04
2008.................... 1 2,600 20.92 -- -- -- -- 2,600 20.92
THEREAFTER.............. 7 274,297 10.53 269,523 10.41 3,500 15.00 1,274 24.00
--- --------- ------ ------- ------ ------- ------ ------- ------
TOTAL................. 195 834,395 $12.28 436,195 $10.97 11,808 $13.43 386,392 $13.73
=== ========= ====== ======= ====== ======= ====== ======= ======
</TABLE>
19
<PAGE>
CENTER TRUST
LEASE EXPIRATIONS--COMMUNITY SHOPPING CENTERS BY REGION
December 31, 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.......... 30 71,776 $10.62 22,076 $ 3.00 4,365 $ 7.65 45,335 $14.61
1999.................... 65 181,416 15.69 47,403 12.92 4,275 13.88 129,738 16.76
2000.................... 78 279,261 14.84 109,580 11.12 25,059 12.80 144,622 18.02
2001.................... 81 373,843 12.12 214,642 7.77 31,265 16.85 127,936 18.28
2002.................... 59 342,935 12.19 210,768 8.02 33,000 19.02 99,167 18.76
2003.................... 43 272,372 9.28 176,807 4.71 36,798 15.10 58,767 19.38
2004.................... 23 314,182 10.38 257,549 8.74 9,396 22.43 47,237 16.92
2005.................... 14 107,517 11.51 58,312 8.69 15,700 13.96 33,505 15.27
2006.................... 18 176,038 14.47 99,919 14.40 25,575 14.26 50,544 14.72
2007.................... 16 143,660 12.37 89,975 11.33 30,176 11.45 23,509 17.53
2008.................... 10 145,766 12.91 113,580 10.61 18,600 23.50 13,586 17.56
THEREAFTER.............. 56 1,509,297 11.28 1,333,149 11.04 112,633 12.79 63,515 13.49
--- --------- ------ --------- ------ ------- ------ ------- ------
TOTAL............... 493 3,918,063 $11.92 2,733,760 $ 9.96 346,842 $14.81 837,461 $17.13
=== ========= ====== ========= ====== ======= ====== ======= ======
</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 17,059 $12.53 -- -- -- -- 17,059 $12.53
1999.................... 24 37,551 15.12 -- -- -- -- 37,551 15.12
2000.................... 20 58,127 10.94 14,602 $5.75 -- -- 43,525 12.62
2001.................... 25 75,450 11.28 -- -- 5,100 $13.73 70,350 11.10
2002.................... 27 92,605 9.25 28,000 5.58 3,750 27.95 60,855 9.78
2003.................... 10 29,733 9.29 -- -- -- -- 29,733 9.29
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.................... 5 12,034 13.39 -- -- 5,120 13.00 6,914 13.68
2007.................... 4 65,218 7.36 55,918 6.26 -- -- 9,300 13.94
2008.................... 4 57,205 5.79 48,187 5.29 3,018 8.18 6,000 8.60
THEREAFTER.............. 8 255,624 6.33 229,856 5.71 16,258 14.70 9,510 7.01
--- ------- ------ ------- ----- ------ ------ ------- ------
TOTAL............... 143 769,817 $ 8.54 421,328 $5.85 39,471 $14.61 309,018 $11.35
=== ======= ====== ======= ===== ====== ====== ======= ======
</TABLE>
20
<PAGE>
CENTER TRUST
SUMMARY OF TENANTS WITH RENTS EXCEEDING 1% OF TOTAL RENTS
As of December 31, 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 $ 5,907,780 5.57% 259,842 2.55%
2. Safeway/Vons......... 9 4,541,856 4.28% 533,019 5.23%
3. Sam's Club/Wal-Mart
Stores.................. 3 3,138,834 2.96% 321,525 3.16%
4. Lucky Stores, Inc. .. 5 3,081,453 2.90% 308,170 3.03%
5. Kmart Group.......... 7 2,927,871 2.76% 619,103 6.08%
6. Toys "R" Us.......... 6 2,593,180 2.44% 236,091 2.32%
7. TJX.................. 9 1,959,110 1.85% 247,614 2.43%
8. Home Depot........... 2 1,875,930 1.77% 200,549 1.97%
9. Sears Roebuck & Co. . 5 1,797,587 1.69% 320,722 3.15%
10. Fred Meyers
(Ralphs/FFL/QFC)........ 5 1,650,745 1.56% 196,674 1.93%
11. Home Base............ 2 1,645,570 1.55% 212,572 2.09%
12. Office Depot......... 5 1,523,537 1.44% 124,841 1.23%
13. Barnes & Noble....... 4 1,465,822 1.38% 70,276 0.69%
14. Ross Stores, Inc. ... 6 1,381,171 1.30% 170,012 1.67%
15. Payless ShoeSource,
Inc. ................... 18 1,326,065 1.25% 61,527 0.60%
16. Magic Johnson
Theatres................ 1 1,288,210 1.21% 67,579 0.66%
17. The Limited.......... 8 1,169,530 1.10% 63,457 0.62%
18. Dayton Hudson
(Mervyn's/Target)....... 3 1,131,500 1.07% 261,938 2.57%
19. Staples.............. 4 1,105,729 1.04% 94,159 0.92%
--- ----------- ----- --------- -----
Total................ 108 $41,511,480 39.12% 4,369,670 42.90%
=== =========== ===== ========= =====
</TABLE>
21
<PAGE>
CENTER TRUST
MAJOR SEGMENT CONCENTRATION EXCEEDING 2% OF TOTAL RENTS
As of December 31, 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 $10,780,598 10.16% 1,303,854 12.80%
Theatres.................. 9 8,219,557 7.75% 409,694 4.02%
Fast Food Restaurants..... 196 6,949,578 6.55% 332,758 3.27%
Discount Department
Stores................... 11 6,248,205 5.89% 1,055,360 10.36%
Restaurants............... 76 5,998,163 5.65% 404,320 3.97%
Discount Apparel Stores... 34 4,393,464 4.14% 518,508 5.09%
Department Stores......... 12 4,373,675 4.12% 914,514 8.98%
Women's Wear Stores....... 60 4,151,580 3.91% 252,558 2.48%
Home Improvement.......... 13 4,139,787 3.90% 476,949 4.68%
Home Furnishings.......... 22 3,160,807 2.98% 247,507 2.43%
Audio/Video Stores........ 30 3,143,264 2.96% 173,869 1.71%
Electronic Stores......... 28 2,901,205 2.73% 181,015 1.78%
Office Supply Stores...... 10 2,646,621 2.49% 219,930 2.16%
Major Shoe Stores......... 41 2,620,878 2.47% 133,910 1.31%
Toy Stores................ 16 2,589,135 2.44% 231,478 2.27%
Bank And Financial
Services................. 55 2,350,677 2.22% 154,934 1.52%
Sporting Goods Stores..... 22 2,259,306 2.13% 171,266 1.68%
--- ----------- ----- --------- -----
Total................. 660 $76,926,500 72.49% 7,182,424 70.52%
=== =========== ===== ========= =====
</TABLE>
22
<PAGE>
CENTER TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND RECONCILIATION TO FUNDS FROM
OPERATIONS
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ---------------------
1998 1997 1998 1997
--------- --------- ---------- ---------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Rental revenues.................... $ 26,732 $ 16,965 $ 94,756 $ 64,682
Expense reimbursements............. 8,626 5,182 28,909 19,204
Percentage rents................... 925 357 1,728 982
Other income....................... 1,491 1,098 5,102 4,093
--------- -------- ---------- ---------
Total revenues................. 37,774 23,602 130,495 88,961
--------- -------- ---------- ---------
Interest........................... 13,218 9,073 48,385 36,083
Depreciation and amortization...... 6,795 4,976 24,313 18,333
Property operating costs:
Common area...................... 6,014 4,070 20,393 13,925
Property taxes................... 3,753 1,985 12,477 7,663
Leasehold rentals................ 415 406 1,652 1,634
Marketing........................ 378 283 685 529
Other operating.................. 1,393 1,109 5,293 3,969
General and administrative......... 1,896 873 5,835 2,941
Non-recurring charges.............. -- 9,355 -- 9,355
--------- -------- ---------- ---------
Total expenses................. 33,862 32,130 119,033 94,432
--------- -------- ---------- ---------
Income (Loss) From Operations
Before Other Items................ 3,912 (8,528) 11,462 (5,471)
Gain on Sale of Asset.............. -- -- 1,055 --
Write-down of Asset Held for Sale.. (21,685) -- (21,685) --
Equity in Unconsolidated
Subsidiary........................ -- -- -- 19
Minority interests--Operating
Partnership....................... 2,980 2,234 1,323 1,508
Minority interests--Other.......... (62) (63) (268) (279)
--------- -------- ---------- ---------
Net Loss Before Extraordinary Item. (14,855) (6,357) (8,113) (4,223)
Extraordinary Loss on Early
Extinguishment of Debt............ -- (422) -- (422)
--------- -------- ---------- ---------
Net Loss........................... $ (14,855) $ (6,779) $ (8,113) $ (4,645)
========= ======== ========== =========
Adjustments to reconcile net income
to FFO:
Depreciation of real property.... 6,729 4,936 24,155 18,247
Non-recurring Charge--Haagen
Retirement...................... -- 9,355 -- 9,355
Minority Interests............... (3,060) (2,304) (1,634) (1,810)
Gain on Sale of Asset............ -- -- (1,055) --
Write-down of Asset Held for
Sale............................ 21,685 -- 21,685 --
Extraordinary Loss on Early
Extinguishment of Debt.......... -- 422 -- 422
Other............................ 401 355 1,263 355
--------- -------- ---------- ---------
Funds From Operations--Basic....... 10,900 5,985 36,301 21,924
Adjustments to reconcile Basic to
Diluted FFO:
Debenture interest............... 3,141 3,142 12,568 12,569
Amortization of Deferred costs--
Debentures...................... 325 325 1,300 1,300
--------- -------- ---------- ---------
Funds From Operations--Diluted(2).. $ 14,366 $ 9,452 $ 50,169 $ 35,793
========= ======== ========== =========
</TABLE>
23
<PAGE>
CENTER TRUST
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
<TABLE>
<CAPTION>
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
(unaudited)
<S> <C> <C> <C>
ASSETS
------
Rental Properties....................... $1,074,629 $783,279 $ 659,565
Accumulated depreciation and
amortization........................... (141,785) (121,202) (104,330)
---------- -------- ---------
Rental properties, net.................. 932,844 662,077 555,235
Cash and cash equivalents............... 6,636 3,613 5,941
Tenant receivables, net................. 13,543 6,017 5,987
Other Receivables....................... 7,984 7,575 3,650
Receivable From Management Company...... -- -- 1,055
Investment in Management Company........ -- -- 621
Restricted cash......................... 5,437 9,435 3,252
Deferred charges, net................... 18,682 19,759 18,365
Other assets............................ 1,895 2,237 770
---------- -------- ---------
Total............................... $ 987,021 $710,713 $ 594,876
========== ======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES
Secured debt............................ $ 497,386 $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................... 10,931 7,371 7,039
Accrued interest........................ 5,873 5,604 5,490
Accounts payable and other accrued
expenses............................... 6,718 8,482 5,340
Accrued construction costs.............. 1,955 10,996 1,207
Tenant security and other deposits...... 5,957 4,729 4,287
---------- -------- ---------
Total liabilities................... 697,419 519,441 434,603
---------- -------- ---------
MINORITY INTERESTS Operating Partnership
(4,978,240, 4,280,789 and 4,286,456
units issued as of December 31, 1998,
1997 and 1996, respectively)........... 47,215 39,685 41,640
Other minorities........................ 2,016 1,748 2,007
---------- -------- ---------
Total minority interest............. 49,231 41,433 43,647
---------- -------- ---------
REDEEMABLE COMMON STOCK (590,034 and
510,034 shares outstanding as of
December 31, 1998 and 1997,
respectively, redeemable on May 25,
1999).................................. 9,903 8,385 --
---------- -------- ---------
STOCKHOLDERS' EQUITY
Common stock ($.01 par value,
100,000,000 shares authorized;
24,756,693, 15,664,814 and 12,024,378
shares issued and outstanding as of
December 31, 1998, 1997 and 1996,
respectively)........................ 248 157 120
Additional paid-in capital............ 354,281 223,972 174,792
Accumulated distributions and
deficit............................ (124,061) (82,675) (58,286)
---------- -------- ---------
Total stockholders' equity.......... 230,468 141,454 116,626
---------- -------- ---------
Total............................... $ 987,021 $710,713 $ 594,876
========== ======== =========
</TABLE>
24
<PAGE>
CENTER TRUST
SUMMARY OF OUTSTANDING DEBT
December 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Balance Balance
Maturity December 31, December 31,
Lender Property Rate Date 1998 1997
------ ------------------------------ ------------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Mortgage Loans
Aetna Life Insurance
Company Covina Town Square 9.600% 09/01/04 $ 17,807 $ 17,960
Metropolitan Life
Insurance Company Date Palm Center 10.450% 07/31/02 9,391 9,515
Metropolitan Life
Insurance Company Vons--Escondido 9.300% 11/01/99 2,686 2,726
Massachusetts Mutual Life
Insurance Company Fire Mountain Center 10.250% 10/01/99 7,383 7,481
The Travelers Insurance
Company Home Base--Glendora 9.500% 10/01/99 6,058 6,110
Aid Association for
Lutherans Gardena Gateway Center 10.050% 02/15/02 6,641 6,710
Connecticut General Life
Insurance Company Gresham Town Fair 7.500% 04/01/99 9,442 9,762
Aid Association for
Lutherans Westgate North Shopping Center 8.300% 04/01/14 6,066 5,955
Teachers Insurance and
Annuity Association of
America Pavilions Centre 7.440% 08/01/06 24,542 --
The Travelers Insurance
Company North County Plaza 10.375% 01/31/03 15,890 --
The Prudential Insurance
Company of America Loma Square 9.310% 08/15/99 18,881 --
Sun Life Assurance
Company of Canada Fairwood Shopping Center 8.375% 02/01/04 7,458 --
Principal Mutual Life
Insurance Company North Mountain Village 8.250% 05/01/01 8,234 --
Column Financial, Inc. Mineral King Plaza 9.680% 08/01/06 3,761 --
DLJ Mortgage Acceptance
Corp. Charleston Plaza 8.050% 01/01/06 15,415 --
Eastrich #79 Corporation
(AEW)(1) Loan # 1 11.450% 10/15/06 29,607 30,691
Eastrich #79 Corporation
(AEW)(2) Loan # 2 10.900% 10/15/06 9,538 9,884
Nomura Asset Capital
Corporation(3) Tranche A 8.938% 04/01/05 22,377 22,540
Nomura Asset Capital
Corporation(3) Tranche B 9.000% 04/01/10 33,236 33,474
-------- --------
Total Mortgage Loans
Payable 9.321%(6) 254,413 162,808
-------- --------
CRA--Certificates of
Participation, Series
1985 Baldwin Hills Crenshaw Plaza 5.300% 12/01/14 30,000 30,000
CDC--Certificates of
Participation, Series
1985 Kenneth Hahn Plaza 5.200% 12/01/15 6,000 6,000
Chase Manhattan Bank(4) Secured Line of Credit LIBOR+1-1.375% 12/30/00 200,895 108,727
-------- --------
Total secured debt(5) 491,308 307,535
-------- --------
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 $659,907 $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.
25
<PAGE>
CENTER TRUST
SCHEDULE OF SECURED DEBT MATURITIES BY YEARS
December 31, 1998
<TABLE>
<CAPTION>
Scheduled
Amortization Scheduled
Year Payments Maturities Total
---- ------------ ---------- --------
<S> <C> <C> <C>
1999......................................... $ 4,661 $ 43,780 $ 48,441
2000......................................... 4,372 200,895(1) 205,267
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......................................... 3,329 59,780 63,109
2007......................................... 1,107 -- 1,107
2008......................................... 1,199 -- 1,199
Thereafter................................... 9,140 64,387 73,527
------- -------- --------
Total...................................... $47,507 $443,801 $491,308
======= ======== ========
</TABLE>
- --------
(1) Represents amount outstanding on the Company's secured credit facility
which is due on December 31, 2000.
26
