<PAGE> 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: (DATE OF EARLIEST EVENT REPORTED)
NOVEMBER 4, 1999
------------------------
CENTER TRUST, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
(FORMERLY CENTERTRUST RETAIL PROPERTIES, INC.)
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> 2
ITEM 5. OTHER EVENTS
On November 4, 1999 the Registrant made available additional financial and
operational information concerning the Registrant, Center Trust, Inc., and
properties owned as of September 30, 1999, 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
NUMBER DESCRIPTION PAGE NUMBER
- ------- ----------- -----------
<C> <S> <C>
99 Supplemental Information as of September 30, 1999........... 4
</TABLE>
2
<PAGE> 3
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.
CENTER TRUST, INC.
By: /s/ STUART J. S. GULLAND
------------------------------------
Stuart J. S. Gulland
Senior Vice President and
Chief Financial Officer
Dated: November 4, 1999
3
<PAGE> 1
EXHIBIT 99
CENTER TRUST, INC.
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 1999
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Company Profile............................................. 5
Operating Highlights/Capital Structure...................... 6-7
Reconciliation of Common Shares and Operating Partnership
Units Outstanding......................................... 8
Same Property Activity...................................... 9
Portfolio Highlights and Leasing Activity................... 10
Portfolio Summary........................................... 11
Portfolio Detail -- by Region............................... 12-16
Lease Expirations -- Overall Portfolio/Total Community
Shopping Centers.......................................... 17
Tenant Concentration........................................ 18
Segment Concentration....................................... 19
Summary of Disposition Properties........................... 20
Consolidated Statements of Operations and Reconciliation to
Funds From Operations..................................... 21
Consolidated Balance Sheets................................. 22
Summary of Outstanding Debt................................. 23
Schedule of Mortgage Debt Maturities........................ 24
</TABLE>
4
<PAGE> 2
CENTER TRUST, INC.
COMPANY PROFILE
SEPTEMBER 30, 1999
Center Trust, Inc., is an owner, manager and developer of retail shopping
centers in the western United States. The Company owns or controls a portfolio
of 59 shopping centers, comprised of 47 community shopping centers, two regional
malls and 10 single tenant facilities comprising 11.4 million square feet of
total shopping center gross leasable area (GLA) and 9.6 million square feet of
Company owned GLA. The Company owns properties in five states, California,
Oregon, Washington, Nevada and Arizona.
The following Supplemental Information was prepared to provide additional
financial, operational and portfolio information as of, and for the quarter
ended, September 30, 1999 for the Company and its portfolio of assets. This
information should be read in conjunction with the Company's 1998 Form 10-K and
1999 quarterly filings on Form 10-Q.
Questions regarding the information contained in this document should be
directed to Stuart Gulland, Senior Vice President and Chief Financial Officer or
Ed Stokx, Vice President and Controller, Center Trust, Inc., 3500 Sepulveda
Boulevard, Manhattan Beach, California, 90266, telephone (310) 546-4520, fax
(310) 546-5069 or email at [email protected].
5
<PAGE> 3
CENTER TRUST, INC.
OPERATING HIGHLIGHTS
SEPTEMBER 30, 1999
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1999 1998 1999 1998
------- ------- ------- -------
<S> <C> <C> <C> <C>
OPERATING HIGHLIGHTS
Funds From Operations (FFO)
FFO - Basic.................................... $10,589 $ 9,674 $31,954 $25,401
FFO - Diluted(1)............................... $13,865 $13,142 $42,145 $35,803
FFO per share - Basic.......................... $ 0.38 $ 0.34 $ 1.10 $ 1.01
FFO per share - Diluted(1)..................... $ 0.38 $ 0.35 $ 1.10 $ 1.04
Net income Available to Common Shareholders....... $ 1,753 $ 3,392 $22,985 $ 6,742
Net Income Per Share - Basic & Diluted......... $ 0.07 $ 0.15 $ 0.90 $ 0.33
Net Operating Income.............................. $25,633 $23,728 $76,303 $64,174
EBITDA............................................ $23,229 $22,153 $70,938 $60,235
Funds Available for Distribution (FAD)............ $10,660 $ 9,681 $32,321 $25,790
FAD per share - Basic.......................... $ 0.38 $ 0.34 $ 1.11 $ 1.03
Dividends Per Share............................... $ 0.36 $ 0.36 $ 1.08 $ 1.08
Interest Expense Coverage Ratios
Based on EBITDA................................ 1.7 1.7 1.7 1.7
Based on EBITDA - Excluding Debentures......... 2.2 2.4 2.3 2.4
General & Administrative Expense(2)............... $ 1,256 $ 1,575 $ 4,217 $ 3,939
G&A as % of Total Rental Revenue............... 4.6% 6.2% 5.2% 4.8%
Ratio of Expense Recoveries to Recoverable 85.2% 85.8% 86.0% 86.6%
Expenses.......................................
Ratio of Operating Expenses to Total Rental 34.5% 34.1% 34.4% 34.0%
Revenue........................................
</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.
(2) Excludes a non-recurring restructuring charge of $1.1 million recorded in
September, 1999.
6
<PAGE> 4
CENTER TRUST, INC.
CAPITAL STRUCTURE
SEPTEMBER 30, 1999
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
EQUITY INFORMATION
Units Outstanding at End of Period........ 1,836,623 5,187,712 1,836,623 5,187,712
Common Outstanding at End of Period..... 26,144,935 27,786,699 26,144,935 25,786,699
---------- ---------- ---------- ----------
Total Units and Common Shares
Outstanding at End of Period......... 27,981,558 30,974,411 27,981,558 30,974,411
========== ========== ========== ==========
Basic Weighted Average Units
Outstanding.......................... 1,836,623 5,198,986 3,525,080 4,938,538
Basic Weighted Average Common Shares
Outstanding.......................... 26,144,845 23,138,817 25,539,348 20,143,739
---------- ---------- ---------- ----------
Basic Weighted Average Units and Common
Shares Outstanding................... 27,981,468 28,337,803 29,064,428 25,082,277
---------- ---------- ---------- ----------
Number of Common Shares Attributed to
Convertible and Exchangeable
Debentures(1)........................ 8,808,222 9,366,611 9,150,120 9,366,611
---------- ---------- ---------- ----------
Diluted Weighted Average Common Shares
and Common Share Equivalents......... 36,789,690 37,704,414 38,214,548 34,448,888
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
AS OF
---------------------------------------------
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
------------- ------------ ------------
(IN THOUSANDS, EXCEPT SHARE DATA)
<S> <C> <C> <C>
MARKET CAPITALIZATION
Stock Price Activity During Period
High............................................ $ 12.38 $ 18.00 $ 18.25
Low............................................. $ 9.63 $ 9.50 $ 15.50
Common Stock Price at End of Period................ $ 11.13 $ 12.25 $ 17.74
Fixed-Rate Mortgage Debt........................... $233,082 $ 260,491 $168,933
Floating-Rate Mortgage Debt........................ 289,245 236,895 144,727
Subordinated Debentures............................ 158,548 168,599 168,599
Equity Market Capitalization....................... 311,295 371,481 356,729
-------- ---------- --------
Total Capitalization............................... $992,170 $1,037,466 $838,988
======== ========== ========
Total Capitalization Assuming Conversion of
Debentures...................................... $931,613 $ 983,608 $833,743
-------- ---------- --------
Debt-to-Total Capitalization....................... 68.6% 64.2% 57.5%
Debt-to-Total Capitalization Assuming Conversion of
Debentures...................................... 56.1% 50.6% 37.6%
</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 if they are antidilutive.
7
<PAGE> 5
CENTER TRUST, INC.
RECONCILIATION OF COMMON SHARES AND OPERATING PARTNERSHIP
UNITS OUTSTANDING
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
COMMON OPERATING PARTNERSHIP
STOCK UNITS TOTAL
---------- --------------------- ----------
<S> <C> <C> <C>
Balance, January 1, 1998........................ 16,174,848 4,279,789 20,454,637
Shares/Units Issued............................. 2,700,000 913,472 3,613,472
Issuance of Stock Awards to Employees......... 139,310 -- 139,310
---------- ---------- ----------
Balance, March 31, 1998......................... 19,014,158 5,193,261 24,207,419
Shares/Units Issued........................... 3,333,333 78,978 3,412,311
Issuance of Stock Awards to Employees......... 769 -- 769
---------- ---------- ----------
Balance, June 30, 1998.......................... 22,348,260 5,272,239 27,620,499
Shares/Units Issued........................... 3,366,667 1,621 3,368,288
Shares/Units Repurchased...................... -- (86,148) (86,148)
Issuance of Stock Awards to Employees......... 64,681 -- 64,681
---------- ---------- ----------
Balance, September 30, 1998..................... 25,779,608 5,187,712 30,967,320
Shares Repurchased(1)......................... (436,700) -- (436,700)
Units Repurchased............................. -- (209,472) (209,472)
Issuance of Stock Awards to Employees......... 3,819 -- 3,819.....
---------- ---------- ----------
Balance, December 31, 1998...................... 25,346,727 4,978,240 30,324,967
Shares Repurchased(1)......................... (966,700) -- (966,700)
Units Converted to Shares..................... 40,000 (40,000) --
Shares issued for Convertible Debentures...... 222 -- 222
Issuance of Stock Awards to Employees......... 17,099 -- 17,099
---------- ---------- ----------
Balance, March 31, 1999......................... 24,437,348 4,938,240 29,375,588
Shares Repurchased(1)(2)...................... (600,101) -- (600,101)
Units Repurchased(3).......................... -- (3,101,617) (3,101,617)
Shares Issued................................. 2,260,232 -- 2,260,232
Issuance of Stock Awards to Employees......... 15,746 -- 15,746
---------- ---------- ----------
Balance, June 30, 1999.......................... 26,113,225 1,836,623 27,949,848
Issuance of Stock Awards to Employees......... 35,610 -- 35,610
Shares Repurchased(1)......................... (3,900) -- (3,900)
---------- ---------- ----------
Balance, September 30, 1999..................... 26,144,935 1,836,623 27,981,558
========== ========== ==========
</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 $10.77.
(2) Includes 590,034 shares repurchased from the Haagen Family on May 25,1999.
(3) Includes 2,839,284 units repurchased from the Haagen Family on May 25, 1999
and 262,333 units repurchased from a former officer of the Company on June
24, 1999.
8
<PAGE> 6
CENTER TRUST, INC.
SAME PROPERTY ACTIVITY
SEPTEMBER 30, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1999 1998 % CHANGE 1999 1998 % CHANGE
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
COMMUNITY SHOPPING CENTERS
Revenues:
Rental Revenue........... $12,109 $11,724 3.3% $35,868 $34,981 2.5%
Recoveries from
Tenants................ 3,081 2,787 10.5% 8,941 8,306 7.6%
Other Income............. 132 165 (20.0)% 417 604 (31.0)%
------- ------- ------- -------
Total Revenues...... 15,322 14,676 4.4% 45,226 43,891 3.0%
Expenses:
Recoverable Operating
Expenses................. 2,840 2,623 8.3% 8,364 7,833 6.8%
Other Operating Expenses.... 399 362 10.2% 1,198 1,087 10.2%
------- ------- ------- -------
Total Expenses...... 3,239 2,985 8.5% 9,562 8,920 7.2%
------- ------- ------- -------
Net Operating Income.......... $12,083 $11,691 3.4% $35,664 $34,971 2.0%
======= ======= ======= =======
Total Properties.... 28 28 28 28
======= ======= ======= =======
Percentage Leased............. 94.8% 93.2% 94.8% 93.2%
======= ======= ======= =======
Average Base Rent per square
foot........................ $ 11.41 $ 11.32 $ 11.41 $ 11.32
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1999 1998 % CHANGE 1999 1998 % CHANGE
------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
REGIONAL MALLS
Revenues:
Rental Revenue........... $ 4,346 $ 4,469 (2.8)% $13,334 $13,376 (0.3)%
Recoveries from
Tenants................ 2,297 2,260 1.6% 6,952 6,853 1.4%
Other Income................ 795 766 3.8% 2,656 2,336 13.7%
------- ------- ------- -------
Total Revenues...... 7,438 7,495 (0.8)% 22,942 22,565 1.7%
Expenses:
Recoverable Operating
Expenses................. 3,093 3,015 2.6% 8,887 8,543 4.0%
Other Operating Expenses.... 30 25 20.0% 41 480 (91.5)%
------- ------- ------- -------
Total Expenses...... 3,123 3,040 2.7% 8,928 9,023 (1.1)%
------- ------- ------- -------
Net Operating Income.......... $ 4,315 $ 4,455 (3.1)% $14,014 $13,542 3.5%
======= ======= ======= =======
Total Properties.... 2 2 2 2
======= ======= ======= =======
Percentage Leased............. 91.2% 91.2% 91.2% 91.2%
======= ======= ======= =======
Average Base Rent per square
foot........................ $ 16.58 $ 16.21 $ 16.58 $ 16.21
======= ======= ======= =======
</TABLE>
Same Store properties are those which were owned as of January 1, 1998.
9
<PAGE> 7
CENTER TRUST, INC.
PORTFOLIO HIGHLIGHTS AND LEASING ACTIVITY
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
AS OF
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
------------- ------------ ------------
<S> <C> <C> <C>
PORTFOLIO HIGHLIGHTS
Company Owned GLA
Community Shopping Centers...................... 7,578,830 7,887,404 4,704,838
Regional Malls.................................. 1,178,009 1,178,009 1,152,040
Single Tenant Facilities........................ 897,686 1,119,212 1,360,121
Total Company Owned GLA....................... 9,654,525 10,184,625 7,216,999
Percentage Leased
Community Shopping Centers...................... 94.4% 91.9% 93.8%
Regional Malls.................................. 91.2% 90.9% 91.3%
Single Tenant Facilities........................ 100.0% 100.0% 100.0%
Overall Portfolio............................. 94.5% 92.7% 94.6%
Average Base Rent
Community Shopping Centers...................... $ 11.08 $ 11.26 $ 11.15
Regional Malls.................................. $ 16.58 $ 16.16 $ 16.95
Single Tenant Facilities........................ $ 6.24 $ 6.37 $ 5.73
Overall Portfolio............................. $ 11.25 $ 11.23 $ 10.96
Number of Properties
Community Shopping Centers...................... 47 49 30
Regional Malls.................................. 2 2 2
Single Tenant Facilities........................ 10 12 14
Overall Portfolio............................. 59 63 46
</TABLE>
<TABLE>
<CAPTION>
THREE NINE
MONTHS MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
<S> <C> <C>
SUMMARY OF LEASING ACTIVITY -- COMMUNITY SHOPPING CENTERS
Space Vacated
Number of Leases....................................... 14 68
Gross Leasable Area.................................... 60,966 205,269
Base Rent per Square Foot.............................. $ 15.36 $ 11.98
New Leases Executed
Number of Leases....................................... 21 65
Gross Leasable Area.................................... 80,818 310,955
Base Rent per Square Foot.............................. $ 14.03 $ 12.47
Lease Renewals Executed
Number of Leases....................................... 41 108
Gross Leasable Area.................................... 106,256 336,706
New Annual Base Rent per Square Foot................... $ 15.23 $ 12.34
Percentage Change from Prior........................... 1.6% 0.7%
Leases with Contractual Rent Adjustments
Number of Leases....................................... 71 261
Gross Leasable Area.................................... 222,614 781,588
New Annual Base Rent per Square Foot................... $ 13.52 $ 13.76
Percentage Change from Prior........................... 5.7% 11.06%
</TABLE>
10
<PAGE> 8
CENTER TRUST, INC.
PORTFOLIO SUMMARY
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
GLA AS
% OF
TOTAL
NUMBER TOTAL LEASED GLA COMPANY COMPANY
OF ---------------- OWNED OWNED PERCENT
PROPERTIES ANCHOR PAD SHOP GLA GLA LEASED
---------- --------- ---------------- --------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY SHOPPING CENTERS
Pacific Northwest Region............ 11 906,626 112,232 633,355 1,769,699 18.33% 93.4%
Northern & Central California
Region............................ 7 348,261 11,808 349,914 771,317 7.99% 92.0%
Southern California Region.......... 23 2,682,475 343,201 797,113 3,968,521 41.11% 96.3%
Southwest Region.................... 6 585,783 55,566 328,025 1,069,293 11.08% 90.7%
-- --------- ------- --------- --------- ----- -----
TOTAL COMMUNITY SHOPPING
CENTERS................. 47 4,523,145 522,807 2,108,407 7,578,830 78.50% 94.4%
REGIONAL MALLS...................... 2 609,515 78,594 386,764 1,178,009 12.20% 91.2%
SINGLE TENANT FACILITIES............ 10 893,786 3,900 -- 897,686 9.30% 100.0%
-- --------- ------- --------- --------- ----- -----
TOTAL PORTFOLIO........... 59 6,026,446 605,301 2,495,171 9,654,525 100.0% 94.5%
== ========= ======= ========= ========= ===== =====
<CAPTION>
AVERAGE
BASE
ANNUALIZED RENT
BASE RENT PER SQ. FT.
------------ -----------
<S> <C> <C>
COMMUNITY SHOPPING CENTERS
Pacific Northwest Region............ $ 17,779,946 $10.76
Northern & Central California
Region............................ 7,399,725 10.42
Southern California Region.......... 46,100,948 12.06
Southwest Region.................... 7,962,103 8.21
------------ ------
TOTAL COMMUNITY SHOPPING
CENTERS................. 79,242,722 11.08
REGIONAL MALLS...................... 17,822,413 16.58
SINGLE TENANT FACILITIES............ 5,598,659 6.24
------------ ------
TOTAL PORTFOLIO........... $102,663,794 $11.25
============ ======
</TABLE>
11
<PAGE> 9
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
YEAR TOTAL LEASED GLA COMPANY
BUILT OR ----------------------------- OWNED PERCENT ANNUALIZED
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT
------------- -------- --------- ------- --------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY RETAIL CENTERS
PACIFIC NORTHWEST
Covington Square.................. 1986 70,837 -- 73,226 151,423 95.1% $ 1,581,188
Covington, WA
Fairwood Shopping Center.......... 1995 109,249 10,954 83,350 214,692 94.8 1,970,553
Renton, WA
Frontier Village Shopping 1993 68,473 22,023 58,637 153,320 97.3 1,504,395
Center..........................
Lake Stevens, WA
Gresham Town Fair................. 1988 159,282 26,587 65,171 264,649 94.9 2,209,775
Gresham, OR
The Medford Center................ 1998 196,032 17,432 54,842 327,982 81.8 2,055,857
Medford, OR
Pacific Linen Plaza............... 1988 25,000 -- 44,432 69,432 100.0 994,902
Lynnwood, WA
Pavilions' Centre................. 1995 123,562 -- 76,647 200,209 100.0 3,057,018
Federal Way, WA
Ross Center....................... 1987 53,331 7,000 70,944 132,465 99.1 1,560,557
Portland, OR
Silverdale Shopping Center........ 1990 29,020 -- 36,642 67,287 97.6 802,998
Silverdale, WA
Vancouver Park Place.............. 1987 33,938 14,900 29,151 77,989 100.0 952,463
Vancouver, WA
Westgate North Shopping Center.... 1980 37,902 13,336 40,313 110,251 83.0 1,090,240
Tacoma, WA
--------- ------- --------- ---------- ----- ------------
Pacific Northwest Region.......... 906,626 112,232 633,355 1,769,699 93.4 17,779,946
--------- ------- --------- ---------- ----- ------------
NORTHERN & CENTRAL CALIFORNIA REGION
Bakersfield Shopping Center....... 1978 -- -- 12,740 14,115 90.3 91,028
Bakersfield, CA
Madera Marketplace................ 1992 92,278 -- 67,856 168,596 95.0 1,657,810
Madera, CA
Marshall's Plaza.................. 1989 27,000 -- 34,875 79,000 78.3 708,065
Modesto, CA
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
COMMUNITY RETAIL CENTERS
PACIFIC NORTHWEST
Covington Square.................. $10.98 Safeway, Payless Drugs
Covington, WA
Fairwood Shopping Center.......... 9.68 Safeway, Ace Hardware, Pic
Renton, WA 'N' Save, Quality Food
Centers
Frontier Village Shopping 10.09 Safeway, Bartell Drugs
Center..........................
Lake Stevens, WA
Gresham Town Fair................. 8.80 Ross Stores, Emporium, GI
Gresham, OR Joe's, Craft Warehouse
The Medford Center................ 7.66 Cinemark Theatres, Sears,
Medford, OR Emporium, Payless*,
Safeway*, Circuit City
Pacific Linen Plaza............... 14.33 Pacific Linen, Payless
Lynnwood, WA Shoesource, Men's Wearhouse
Pavilions' Centre................. 15.27 Quality Food Centers,
Federal Way, WA Barnes & Noble, Blockbuster
Music, Petco, JoAnn ETC.
Ross Center....................... 11.89 Ross Stores, Michaels, Pier
Portland, OR 1 Imports
Silverdale Shopping Center........ 12.23 Ross Stores
Silverdale, WA
Vancouver Park Place.............. 12.21 T.J. Maxx, Pier 1 Imports,
Vancouver, WA Olive Garden
Westgate North Shopping Center.... 11.91 Quality Food Centers
Tacoma, WA
------
Pacific Northwest Region.......... 10.76
------
NORTHERN & CENTRAL CALIFORNIA REGION
Bakersfield Shopping Center....... 7.15
Bakersfield, CA
Madera Marketplace................ 10.35 Wal-Mart*, J.C. Penney,
Madera, CA Pak-N-Sav
Marshall's Plaza.................. 11.44 Marshall's
Modesto, CA
</TABLE>
12
<PAGE> 10
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
YEAR TOTAL LEASED GLA COMPANY
BUILT OR ----------------------------- OWNED PERCENT ANNUALIZED
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT
------------- -------- --------- ------- --------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Mineral King Plaza.................. 1983 -- -- 32,860 39,060 84.1% $ 511,407
Visalia, CA
Rheem Valley...................... 1990 51,009 5,150 90,271 153,956 95.1 1,657,543
Moraga, CA
Rosedale Village Shopping 1991 72,324 6,658 44,035 127,527 96.5 1,351,178
Center..........................
Bakersfield, CA
Southpointe Plaza................. 1982 105,650 -- 67,277 189,063 91.5 1,422,694
Sacramento, CA
--------- ------- --------- ---------- ----- ------------
Northern & Central California 348,261 11,808 349,914 771,317 92.0 7,399,725
Region............................
--------- ------- --------- ---------- ----- ------------
SOUTHERN CALIFORNIA REGION
Advantage/Sportmart Shopping 1988 105,210 8,375 -- 117,860 96.4 1,311,271
Center..........................
San Diego, CA
Center of El Centro............... 1980 149,300 5,623 18,616 178,889 97.0 683,174
El Centro, CA
Country Fair Shopping Center...... 1992 96,225 27,341 31,899 168,367 92.3 2,255,849
Chino, CA
Covina Town Square................ 1997 266,383 12,842 63,618 356,535 96.2 5,043,171
Covina, CA
Date Palm Center.................. 1987 99,919 -- 12,937 117,362 96.2 1,692,236
Cathedral City, CA
El Camino North................... 1982 101,582 133,024 65,141 322,253 93.0 3,582,328
Oceanside, CA
Fire Mountain Center.............. 1987 44,481 23,432 23,339 92,378 98.8 1,791,029
Oceanside, CA
Fullerton Town Center............. 1987 172,353 19,722 50,655 255,687 94.9 3,783,095
Fullerton, CA
Gardena Gateway Center............ 1990 41,300 5,062 18,225 65,987 97.9 986,057
Gardena, CA
Huntington Center................. 1989 105,879 4,365 -- 110,244 100.0 1,285,121
Huntington Beach, CA
Kenneth Hahn Plaza................ 1987 97,186 14,598 51,263 165,047 98.8 1,547,779
Los Angeles, CA
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Mineral King Plaza.................. $15.56 Vons*, Longs Drugs*
Visalia, CA
Rheem Valley...................... 11.32 T. J. Maxx, Longs Drugs*
Moraga, CA
Rosedale Village Shopping 10.98 Savemart, Payless Drugs,
Center.......................... Kmart*
Bakersfield, CA
Southpointe Plaza................. 8.23 Target, Big 5 Sporting
Sacramento, CA Goods
------
Northern & Central California 10.42
Region............................
------
SOUTHERN CALIFORNIA REGION
Advantage/Sportmart Shopping 11.54 Advantage (Lucky),
Center.......................... SportMart
San Diego, CA
Center of El Centro............... 3.94 Sears, Mervyn's, Miller's
El Centro, CA Outpost
Country Fair Shopping Center...... 14.51 Albertsons*, PETsMART,
Chino, CA Rite-Aid, Staples, T.J.
Maxx
Covina Town Square................ 14.71 Home Depot, Staples,
Covina, CA PETsMART, Michael's, AMC
Theatres
Date Palm Center.................. 14.99 Sam's Club (Wal-Mart)
Cathedral City, CA
El Camino North................... 11.95 Mervyn's*, Toys 'R' Us*,
Oceanside, CA Petco*, Mann Theatres, Ross
Stores, Stein Mart
Fire Mountain Center.............. 19.63 Strouds, Lamps Plus, Trader
Oceanside, CA Joe's, Bookstar
Fullerton Town Center............. 15.59 Price Club*, AMC Theatres,
Fullerton, CA Toys 'R' Us, Office Depot
Gardena Gateway Center............ 15.27 Rite-Aid, 99 Ranch Market
Gardena, CA
Huntington Center................. 11.66 Toys 'R' Us, Lucky
Huntington Beach, CA
Kenneth Hahn Plaza................ 9.49 Food 4 Less, Pic 'N' Save,
Los Angeles, CA Rite-Aid, Super Trak Auto
</TABLE>
13
<PAGE> 11
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
YEAR TOTAL LEASED GLA COMPANY
BUILT OR ----------------------------- OWNED PERCENT ANNUALIZED
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT
------------- -------- --------- ------- --------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
La Verne Towne Center............... 1986 158,860 1,940 59,629 231,143 95.4% $ 1,358,066
La Verne, CA
Lakewood Plaza.................... 1989 93,342 4,365 15,804 113,511 100.0 1,308,068
Bellflower, CA
Loma Square....................... 1980 96,514 -- 105,845 210,704 96.0 2,660,944
San Diego, CA
Montebello Town Square............ 1992 210,533 7,879 25,167 250,438 97.3 2,712,175
Montebello, CA
Mountain Square Shopping Center... 1988 186,036 -- 70,099 273,280 93.7 3,088,127
Upland, CA
North County Plaza................ 1987 43,610 28,720 71,170 153,325 93.6 2,083,352
Carlsbad, CA
Parkway Place..................... 1989 91,127 12,917 15,347 120,425 99.1 1,225,863
Escondido, CA
Pomona Gateway Center............. 1993 96,418 6,487 1,000 108,887 95.4 922,131
Pomona, CA
San Fernando Mission Plaza........ 1991 50,508 2,293 14,391 67,192 100.0 904,899
San Fernando, CA
Torrance Promenade................ 1991 211,883 20,496 30,183 263,228 99.7 4,133,545
Torrance, CA
Vermont-Slauson Shopping Center... 1981 142,411 3,720 23,613 169,744 100.0 992,804
Los Angeles, CA
Vineyards Marketplace............. 1991 21,415 -- 29,172 56,035 90.3 749,864
Rancho Cucamonga, CA
--------- ------- --------- ---------- ----- ------------
Southern California Region.......... 2,682,475 343,201 797,113 3,968,521 96.3 46,100,948
--------- ------- --------- ---------- ----- ------------
SOUTHWEST REGION
Charleston Plaza.................. 1989 153,131 19,171 42,564 234,496 91.6 2,287,520
Las Vegas, NV
Kyrene Village Shopping Center.... 1987 95,957 5,120 56,495 161,174 97.8 1,193,520
Chandler, AZ
North Mountain Village............ 1985 41,215 -- 51,191 94,379 97.9 868,315
Phoenix, AZ
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
La Verne Towne Center............... $ 6.16 Target, Albertson's
La Verne, CA
Lakewood Plaza.................... 11.52 Lucky, Staples
Bellflower, CA
Loma Square....................... 13.15 T.J. Maxx, Circuit City,
San Diego, CA Sav- on Drugs, Super Crown
Books
Montebello Town Square............ 11.13 Sears, Toys 'R' Us, AMC
Montebello, CA Theatres, Petco
Mountain Square Shopping Center... 12.06 Home Depot, Staples,
Upland, CA Pavilions
North County Plaza................ 14.52 Marshall's, Michael's, Kids
Carlsbad, CA 'R' Us
Parkway Place..................... 10.27 Advantage (Lucky), Office
Escondido, CA Depot
Pomona Gateway Center............. 8.87 Vons, Pic 'N' Save
Pomona, CA
San Fernando Mission Plaza........ 13.47 KV-Mart (Vons)
San Fernando, CA
Torrance Promenade................ 15.74 Ross, Marshall's, Office
Torrance, CA Depot, Linens 'n Things,
Bookstar, Sears Homelife,
Loehmann's, Kids 'R' Us
Vermont-Slauson Shopping Center... 5.85 Ralphs, Kmart, Sav-on Drugs
Los Angeles, CA
Vineyards Marketplace............. 14.82 Albertson's*, Sav-on Drugs
Rancho Cucamonga, CA
------
Southern California Region.......... 12.06
------
SOUTHWEST REGION
Charleston Plaza.................. 10.65 Home Base, Lucky*, Sav-on
Las Vegas, NV Drugs
Kyrene Village Shopping Center.... 7.57 Basha's, Kyrene Lanes,
Chandler, AZ Audio Express
North Mountain Village............ 9.40 Fry's Food & Drug*, T. J.
Phoenix, AZ Maxx, Greenbacks
</TABLE>
14
<PAGE> 12
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
YEAR TOTAL LEASED GLA COMPANY
BUILT OR ----------------------------- OWNED PERCENT ANNUALIZED
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT
------------- -------- --------- ------- --------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Randolph Plaza...................... 1972 136,110 6,150 29,920 180,382 95.5% $ 1,002,716
Tucson, AZ
Southern Palms Center............. 1980 56,345 20,025 123,641 254,863 78.5 1,858,827
Tempe, AZ
Sunrise Place Center.............. 1992 103,025 5,100 24,214 143,999 91.9 751,205
Tucson, AZ
--------- ------- --------- ---------- ----- ------------
Southwest Region.................... 585,783 55,566 328,025 1,069,293 90.7 7,962,103
--------- ------- --------- ---------- ----- ------------
COMMUNITY RETAIL CENTERS............ 4,523,145 522,807 2,108,407 7,578,830 94.4 79,242,722
--------- ------- --------- ---------- ----- ------------
REGIONAL MALLS
Baldwin Hills Crenshaw Plaza...... 1988 141,554 29,610 157,380 359,604 91.4 5,854,877
Los Angeles, CA
Media City Center................. 1992 467,961 48,984 229,384 818,405 91.2 11,967,536
Burbank, CA
--------- ------- --------- ---------- ----- ------------
REGIONAL MALLS...................... 609,515 78,594 386,764 1,178,009 91.2 17,822,413
--------- ------- --------- ---------- ----- ------------
SINGLE TENANT FACILITIES
Home Base......................... 1988 107,165 -- -- 107,165 100.0 935,444
Glendora, CA
Kmart............................. 1990 104,204 -- -- 104,204 100.0 551,576
Phoenix, AZ
Kmart............................. 1990 86,479 -- -- 86,479 100.0 457,744
Banning, CA
Kmart............................. 1990 86,479 -- -- 86,479 100.0 507,915
El Centro, CA
Kmart............................. 1990 86,479 -- -- 86,479 100.0 365,373
Los Banos, CA
Kmart............................. 1990 86,479 -- -- 86,479 100.0 415,951
Madera, CA
Kmart............................. 1990 86,479 -- -- 86,479 100.0 411,132
Rocklin, CA
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Randolph Plaza...................... $ 5.82 Fry's, Walgreen's,
Tucson, AZ MacFrugal's
Southern Palms Center............. 9.29 Heilig Meyer Furniture,
Tempe, AZ Staples, Coomers Craft Mall
Sunrise Place Center.............. 5.68 Smith's Food & Drug
Tucson, AZ
------
Southwest Region.................... 8.21
------
COMMUNITY RETAIL CENTERS............ 11.08
------
REGIONAL MALLS
Baldwin Hills Crenshaw Plaza...... 17.82 Sears*, Robinsons-May*,
Los Angeles, CA Macy's (dark), Lucky, T.J.
Maxx, Sony/Magic Johnson
Theaters
Media City Center................. 16.04 Macy's, IKEA*, Sears*,
Burbank, CA Mervyn's*, AMC Theatres,
Sports Chalet, CompUSA,
Barnes & Noble, Virgin
Megastore
------
REGIONAL MALLS...................... 16.58
------
SINGLE TENANT FACILITIES
Home Base......................... 8.73 Home Base
Glendora, CA
Kmart............................. 5.29 Kmart
Phoenix, AZ
Kmart............................. 5.29 Kmart
Banning, CA
Kmart............................. 5.87 Kmart
El Centro, CA
Kmart............................. 4.22 Kmart
Los Banos, CA
Kmart............................. 4.81 Kmart
Madera, CA
Kmart............................. 4.75 Kmart
Rocklin, CA
</TABLE>
15
<PAGE> 13
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
YEAR TOTAL LEASED GLA COMPANY
BUILT OR ----------------------------- OWNED PERCENT ANNUALIZED
PROPERTY NAME REMODEL ANCHOR PAD SHOP GLA LEASED BASE RENT
------------- -------- --------- ------- --------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Vons................................ 1989 36,800 -- -- 36,800 100.0% $ 312,800
Escondido, CA
Vons.............................. 1993 102,400 -- -- 102,400 100.0 907,959
Simi Valley, CA
Sam's Club........................ 1988 110,822 3,900 -- 114,722 100.0 732,765
Downey, CA
--------- ------- --------- ---------- ----- ------------
SINGLE TENANT FACILITIES............ 893,786 3,900 -- 897,686 100.0 5,598,659
--------- ------- --------- ---------- ----- ------------
TOTAL PROPERTIES.................... 6,026,446 605,301 2,495,171 9,654,525 94.5 $102,663,794
========= ======= ========= ========== ===== ============
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF SEPTEMBER 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Vons................................ $ 8.50 Vons
Escondido, CA
Vons.............................. 8.87 Vons
Simi Valley, CA
Sam's Club........................ 6.39 Sam's Club (Wal-Mart)
Downey, CA
------
SINGLE TENANT FACILITIES............ 6.24
------
TOTAL PROPERTIES.................... $11.25
======
</TABLE>
- ---------------
* Anchor space non-owned by Company
16
<PAGE> 14
CENTER TRUST
LEASE EXPIRATIONS -- OVERALL PORTFOLIO
SEPTEMBER 30, 1999
<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....... 115 218,256 $11.69 64,496 $ 2.54 1,177 $18.58 152,583 $15.50
1999................. 62 119,675 15.62 9,600 11.94 1,500 12.93 108,575 15.98
2000................. 197 576,949 14.50 171,287 9.44 39,059 14.84 366,603 16.83
2001................. 224 693,808 14.04 252,322 8.19 33,147 16.96 408,339 17.41
2002................. 201 811,885 12.15 394,318 6.84 52,448 18.27 365,119 17.01
2003................. 130 519,813 11.74 190,470 4.53 46,772 15.77 282,571 15.93
2004................. 137 852,798 10.90 516,480 7.26 34,688 16.38 301,630 16.49
2005................. 47 344,626 15.02 184,340 14.11 41,369 15.05 118,917 16.42
2006................. 49 406,287 12.76 243,653 10.50 37,105 13.00 125,529 17.08
2007................. 40 393,631 11.32 231,757 8.34 48,738 11.73 113,136 17.26
2008................. 32 496,200 11.04 423,693 9.83 39,167 19.61 33,340 16.38
THEREAFTER........... 124 3,692,990 9.36 3,344,030 8.82 230,131 14.84 118,829 14.00
----- --------- ------ --------- ------ ------- ------ --------- ------
TOTAL....... 1,358 9,126,918 $11.25 6,026,446 $ 8.63 605,301 $15.38 2,495,171 $16.56
===== ========= ====== ========= ====== ======= ====== ========= ======
</TABLE>
LEASE EXPIRATIONS -- TOTAL COMMUNITY SHOPPING CENTERS
SEPTEMBER 30, 1999
<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....... 76 170,428 $ 9.48 64,496 $ 2.54 1,177 $18.58 104,755 $13.65
1999................. 36 81,280 14.00 9,600 11.94 1,500 12.93 70,180 14.30
2000................. 175 536,657 13.99 171,287 9.44 35,159 15.55 330,211 16.18
2001................. 181 643,234 12.69 252,322 8.19 33,147 16.96 357,765 15.46
2002................. 170 759,059 11.12 394,318 6.84 51,408 17.75 313,333 15.41
2003................. 107 479,124 10.86 190,470 4.53 46,772 15.77 241,882 14.91
2004................. 113 779,744 9.97 485,908 6.98 28,188 18.03 265,648 14.58
2005................. 34 226,047 11.88 86,761 7.36 39,649 14.44 99,637 14.79
2006................. 42 364,200 12.11 218,349 9.52 30,695 14.05 115,156 16.50
2007................. 31 303,834 10.54 194,957 8.31 48,738 11.73 60,139 16.82
2008................. 26 337,869 10.47 271,571 9.03 34,167 17.80 32,131 14.83
THEREAFTER........... 96 2,472,883 10.34 2,183,106 9.90 172,207 13.50 117,570 13.94
----- --------- ------ --------- ------ ------- ------ --------- ------
TOTAL....... 1,087 7,154,359 $11.08 4,523,145 $ 8.69 522,807 $14.95 2,108,407 $15.24
===== ========= ====== ========= ====== ======= ====== ========= ======
</TABLE>
17
<PAGE> 15
CENTER TRUST, INC.
SUMMARY OF TENANTS WITH RENTS EXCEEDING 1% OF TOTAL RENTS
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
PERCENTAGE
PERCENTAGE TOTAL OF COMPANY
NUMBER OF ANNUALIZED OF TOTAL TENANT OWNED
NUMBER RETAIL TENANT STORES BASE RENT BASE RENT GLA GLA
------ ------------- --------- ----------- ---------- --------- ----------
<C> <S> <C> <C> <C> <C> <C>
1 AMC THEATRES................... 6 $ 5,907,780 5.75% 259,842 2.69%
2 SAFEWAY/VONS................... 9 4,541,850 4.42% 533,019 5.52%
3 ALBERTSON'S
(LUCKY/SAV-ON,
ALBERTSON'S)................... 10 3,677,277 3.58% 450,624 4.67%
4 K-MART......................... 7 2,927,871 2.85% 619,103 6.41%
5 SAM'S CLUB (WAL-MART).......... 2 2,138,834 2.08% 210,741 2.18%
6 FRED MEYER
(RALPHS/FFL/QFC,
SMITH'S)....................... 6 1,995,879 1.94% 299,699 3.10%
7 T.J. MAXX...................... 9 1,982,526 1.93% 247,614 2.56%
8 HOME DEPOT..................... 2 1,875,930 1.83% 200,549 2.08%
9 TOYS 'R' US.................... 5 1,802,233 1.76% 180,780 1.87%
10 HOME BASE...................... 2 1,710,826 1.67% 212,572 2.20%
11 SEARS.......................... 5 1,657,583 1.61% 299,642 3.10%
12 STAPLES........................ 6 1,513,504 1.47% 136,604 1.41%
13 BARNES & NOBLE................. 4 1,465,822 1.43% 70,276 0.73%
14 MAGIC JOHNSON THEATRES......... 1 1,288,210 1.25% 67,579 0.70%
15 ROSS STORES.................... 5 1,166,621 1.14% 142,852 1.48%
16 PAYLESS SHOE SOURCE............ 16 1,113,029 1.08% 54,409 0.56%
17 OFFICE DEPOT................... 4 1,111,023 1.08% 101,594 1.05%
18 CIRCUIT CITY................... 3 1,035,900 1.01% 84,680 0.88%
--- ----------- ----- --------- -----
TOTAL.......................... 102 $38,912,698 37.90% 4,172,179 43.21%
=== =========== ===== ========= =====
</TABLE>
18
<PAGE> 16
CENTER TRUST, INC.
MAJOR SEGMENT CONCENTRATION EXCEEDING 2% OF TOTAL RENTS
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
PERCENTAGE
TOTAL SEGMENT PERCENT TOTAL OF COMPANY
NUMBER OF ANNUALIZED OF TOTAL SEGMENT OWNED
NUMBER RETAIL TENANT LEASES BASE RENT BASE RENT GLA GLA
------ ------------- --------- ------------- --------- --------- ----------
<C> <S> <C> <C> <C> <C> <C>
1 GROCERY STORES........... 26 $11,056,217 10.77% 1,365,415 14.14%
2 THEATRES................. 9 8,219,557 8.01% 409,694 4.24%
3 FAST FOOD RESTAURANTS.... 190 6,808,678 6.63% 321,283 3.33%
4 RESTAURANTS.............. 74 5,967,277 5.81% 392,156 4.06%
5 DISCOUNT DEPT. STORES.... 11 5,758,110 5.61% 1,050,226 10.88%
DISCOUNT APPAREL
6 STORES................... 35 4,407,725 4.29% 490,191 5.08%
7 WOMEN'S WEAR............. 61 4,100,622 3.99% 274,312 2.84%
8 HOME IMPROVEMENT......... 11 3,964,405 3.86% 464,536 4.81%
9 AUDIO/VIDEO STORES....... 32 3,400,426 3.31% 183,379 1.90%
10 HOME FURNISHINGS......... 22 3,237,271 3.15% 241,088 2.50%
11 DEPARTMENT STORES........ 9 2,802,871 2.73% 704,610 7.30%
12 VARIETY STORES........... 36 2,545,521 2.48% 292,054 3.03%
BANK/FINANCIAL
13 SERVICES................. 60 2,511,020 2.45% 161,399 1.67%
14 BEAUTY SUPPLY/SALONS..... 105 2,489,118 2.42% 136,595 1.41%
15 OFFICE SUPPLY STORES..... 10 2,453,781 2.39% 225,028 2.33%
16 MAJOR SHOE STORES........ 36 2,396,620 2.33% 116,942 1.21%
17 ELECTRONICS.............. 23 2,131,927 2.08% 145,638 1.51%
--- ----------- ----- --------- -----
TOTAL.................... 750 $74,251,146 72.32% 6,974,546 72.24%
=== =========== ===== ========= =====
</TABLE>
19
<PAGE> 17
CENTER TRUST, INC.
SUMMARY OF DISPOSITION PROPERTIES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
COMPANY
DATE OF OWNED PERCENT GROSS
DISPOSITION PROPERTY NAME LOCATION TOTAL GLA GLA LEASED SALES PRICE
----------- ------------- -------- --------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
1/26/1999............ Sam's Club Fountain Valley, CA 119,126 119,126 100.0%
2/11/1999............ The City Center San Francisco, CA 194,193 194,193 99.3%
--------- ------- -----------
Subtotal -- First Quarter 313,319 313,319 $47,118,000
--------- ------- -----------
8/2/1999............. Empire Center Fontana, CA 626,496 261,996 57.8%
9/15/1999............ Sixth Avenue Plaza Tacoma, WA 139,107 139,107 100.0%
9/16/1999............ Oracle Road Tucson, AZ 102,400 102,400 100.0%
--------- ------- -----------
Subtotal -- Third Quarter 868,003 503,503 23,968,000
--------- ------- -----------
Total 1999 1,181,322 816,822 $71,086,000
========= ======= ===========
</TABLE>
20
<PAGE> 18
CENTER TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION TO FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ -------------------
1999 1998 1999 1998
------- ------- -------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Rental revenues.................................... $26,870 $25,336 $ 79,710 $68,024
Expense reimbursements............................. 8,065 7,493 24,054 20,283
Percentage rents................................... 532 241 1,541 803
Other income....................................... 1,234 1,118 3,755 3,611
------- ------- -------- -------
Total Revenues........................... 36,701 34,188 109,060 92,721
------- ------- -------- -------
Interest........................................... 13,938 12,741 40,544 35,167
Depreciation and amortization...................... 6,263 6,213 18,387 17,518
Property operating costs:
Common area...................................... 5,722 5,564 16,565 14,379
Property taxes................................... 3,476 3,020 10,781 8,724
Leasehold rentals................................ 438 412 1,285 1,237
Marketing........................................ 265 149 610 307
Other operating.................................. 1,167 1,315 3,516 3,900
General and administrative......................... 2,404 1,575 5,365 3,939
------- ------- -------- -------
Total Expenses........................... 33,673 30,989 97,053 85,171
------- ------- -------- -------
Income from Operations before (Loss) Gain on Sale
of Assets and Minority Interests................. 3,028 3,199 12,007 7,550
(Loss) Gain on Sale of Assets...................... (214) 1,055 20,361 1,055
Minority interests -- Operating Partnership........ (126) (793) (4,255) (1,657)
Minority interests -- Other........................ (78) (69) (223) (206)
------- ------- -------- -------
Net Income before Extraordinary Loss............... 2,610 3,392 27,890 6,742
Extraordinary Loss -- Early Extinguishment of
Debt............................................. (857) -- (4,905)
------- ------- -------- -------
Net Income......................................... $ 1,753 $ 3,392 $ 22,985 $ 6,742
------- ------- -------- -------
Adjustments to reconcile net income to FFO:
Depreciation of real property.................... 6,225 6,202 18,285 17,426
Minority Interests............................... 41 712 4,005 1,426
Extraordinary Loss -- Early Extinguishment of
Debt.......................................... 857 -- 4,905 --
Gain on Sale of Assets........................... 214 (1,055) (20,361) (1,055)
Other Non-cash/Non-recurring Items............... 1,498 423 2,134 862
------- ------- -------- -------
Funds From Operations -- Basic..................... 10,588 9,674 31,953 25,401
Adjustments to reconcile Basic to Diluted FFO:
Debenture interest............................... 2,956 3,143 9,221 9,427
Amortization of Deferred costs -- Debentures..... 320 325 970 975
------- ------- -------- -------
Funds From Operations -- Diluted(1)................ $13,864 $13,142 $ 42,144 $35,803
======= ======= ======== =======
</TABLE>
- ---------------
(1) For purposes of computing FFO, diluted information assumes the conversion of
the Company's Debentures at $18 per share as well as other common stock
equivalents.
21
<PAGE> 19
CENTER TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1999 1998
------------- ------------
(UNAUDITED)
<S> <C> <C>
Rental Properties........................................... $1,037,997 $1,074,629
Accumulated depreciation and amortization................... (141,156) (141,785)
---------- ----------
Rental properties, net.................................... 896,841 932,844
Cash and cash equivalents................................... 9,921 6,636
Tenant receivables, net..................................... 11,573 13,543
Other receivables........................................... 5,767 7,984
Restricted cash and securities.............................. 15,567 5,437
Deferred charges, net....................................... 20,281 18,682
Other assets................................................ 2,676 1,895
---------- ----------
Total............................................. $ 962,626 $ 987,021
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Secured debt................................................ $ 522,367 $ 497,386
7 1/2% Convertible subordinated debentures.................. 128,548 138,599
7 1/4% Exchangeable subordinated debentures................. 30,000 30,000
Accrued distributions....................................... 10,064 10,931
Accrued interest............................................ 4,275 5,873
Accounts payable and other accrued expenses................. 10,862 6,718
Accrued construction costs.................................. 2,131 1,955
Tenant security and other deposits.......................... 5,678 5,957
---------- ----------
Total liabilities........................................... 713,925 697,419
========== ==========
MINORITY INTERESTS
Operating partnership (1,836,623 and 4,978,240 units issued
as of September 30, 1999 and December 31, 1998,
respectively)............................................. 16,186 47,717
Other minority interests.................................... 1,359 1,514
---------- ----------
Total minority interest..................................... 17,545 49,231
---------- ----------
REDEEMABLE COMMON STOCK
(590,034 shares as of December 31, 1998, redeemed May 25,
1999)..................................................... -- 9,903
---------- ----------
STOCKHOLDERS' EQUITY
Common stock ($.01 par value, 100,000,000 shares authorized;
26,144,935 and 24,756,693 shares issued and outstanding as
of September 30, 1999 and December 31, 1998,
respectively)............................................. 261 248
Additional paid-in capital.................................. 359,551 354,281
Accumulated distributions and deficit....................... (128,656) (124,061)
---------- ----------
Total stockholders' equity.................................. 231,156 230,468
---------- ----------
Total............................................. $ 962,626 $ 987,021
========== ==========
</TABLE>
22
<PAGE> 20
CENTER TRUST, INC.
SUMMARY OF OUTSTANDING DEBT
SEPTEMBER 30, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MATURITY BALANCE BALANCE
LENDER PROPERTY RATE DATE SEPTEMBER 30, 1999 DECEMBER 31, 1998
------ -------- ----- -------- ------------------ -----------------
<S> <C> <C> <C> <C> <C>
FIXED-RATE MORTGAGES
First Union National Bank................ Gardena, Gresham, Loma 7.75% 07/01/09 $ 51,874 --
Square & Southpointe
Nomura Asset Capital Corporation(1)..... Tranche B 9.00% 04/01/10 33,044 $ 33,236
Eastrich #79 Corporation (AEW)(2)....... Loan #1 11.45% 10/15/06 25,788 29,607
Teachers................................ Pavilions 7.44% 08/01/06 24,175 24,498
Nomura Asset Capital Corporation(1)..... Tranche A 8.94% 04/01/05 22,246 22,377
The Travelers Insurance Company......... North County 10.38% 01/31/03 15,654 15,890
DLJ Mortgage Acceptance Corp............ Charleston 8.05% 01/01/06 15,257 15,415
Metropolitan Life Insurance Company..... Date Palm 10.45% 07/31/02 9,290 9,391
Eastrich #79 Corporation (AEW)(3)....... Loan #2 10.90% 10/15/06 9,286 9,538
Principal Mutual Life Insurance
Company............................... North Mountain Village 8.25% 05/01/01 8,195 8,234
The Travelers Insurance Company......... Glendora 9.50% 10/01/99 6,020 6,058
Aid Association for Lutherans........... Westgate North 8.30% 04/01/14 5,903 6,066
Column Financial, Inc................... Mineral King 9.68% 08/01/06 3,696 3,761
Metropolitan Life Insurance Company..... Escondido 9.30% 11/01/99 2,654 2,686
The Prudential Insurance Company of
America............................... Loma Square 9.31% 08/15/99 -- 18,881
Aetna Life Insurance Company............ Covina 9.60% 09/01/04 -- 17,807
Connecticut General Life Insurance
Company............................... Gresham 7.50% 05/01/99 -- 9,442
Sun Life Assurance Company of Canada.... Fairwood 8.38% 02/01/04 -- 7,458
Massachusetts Mutual Life Insurance
Company............................... Fire Mountain 10.25% 10/01/99 -- 7,383
Aid Association for Lutherans........... Gardena 10.05% 02/15/02 -- 6,641
----- -------- --------
Total Fixed-Rate Mortgages........ 8.97% 233,082 254,369
----- -------- --------
VARIABLE-RATE MORTGAGES
First Union National Bank(7)............ Covina, Randolph Plaza, 7.87% 06/01/02 58,293 --
Fairwood & Mountain Square
First Union National Bank(7)............ Fire Mountain 7.87% 08/01/02 11,500 --
----- -------- --------
Total Variable-Rate Mortgages..... 7.87% 69,793 --
----- -------- --------
OTHER SECURED DEBT
CRA -- Certificates of Participation,
Series 1985........................... Baldwin Hills 5.30% 12/01/14 30,000 30,000
CDC -- Certificates of Participation,
Series 1985........................... Willowbrook 5.20% 12/01/15 6,000 6,000
Chase Manhattan Bank(4)................. Secured Line of Credit 6.75% 12/30/00 183,452 200,895
----- -------- --------
Total Other Secured Debt.......... 6.51% 219,452 236,895
----- -------- --------
TOTAL SECURED DEBT................ 8.68% 522,327 491,265
----- -------- --------
Convertible debentures(5)............... 7.50% 01/15/01 128,548 138,599
Exchangeable debentures(6).............. 7.25% 12/27/03 30,000 30,000
----- -------- --------
TOTAL DEBT OUTSTANDING............ 8.39% $680,875 $659,863
===== ======== ========
</TABLE>
- ---------------
(1) Secured by San Fernando Mission, Rosedale, Country Fair, Fullerton, La
Verne, and $10.6 million of U.S. Treasury Securities.
(2) Secured by KMart -- Rocklin, KMart -- El Centro, KMart -- Banning,
KMart -- Los Banos, Kmart -- Madera, KMart -- Phoenix, Advantage, Huntington
Beach and Simi Valley.
(3) Secured by Lakewood, Sam's Club -- Downey, and Parkway Place.
(4) Secured by Media City, Montebello, Medford Shopping Center, Ross Center,
Pacific Linen, Vancouver Park Place, Sunrise Place, Marshalls Plaza, Ross
Plaza -- Silverdale, Covington, Vineyards Marketplace, Frontier Village and
Rheem Valley. Interest based on LIBOR plus 137.5 basis points.
(5) 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.
(6) Exchangeable debentures bear interest at 7 1/4% and mature December 31,
2003. Such debentures are convertible into common stock at a conversion
price of $18.00 per share or may be put to the Company after December 27,
2000 for the principal amount plus accrued interest.
(7) Interest based on LIBOR plus 250 basis points.
23
<PAGE> 21
CENTER TRUST, INC.
SCHEDULE OF MORTGAGE DEBT MATURITIES
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
SCHEDULED PERCENT OF
AMORTIZATION SCHEDULED DEBT
YEAR PAYMENTS MATURITIES MATURING TOTAL
---- ------------ ---------- ---------- --------
<S> <C> <C> <C> <C>
1999......................................... $ 1,339 $ 8,670 1.81% $ 10,009
2000......................................... 5,112 183,452(1) 38.21% 188,564
2001......................................... 5,502 8,105 1.69% 13,607
2002......................................... 5,145 75,983 15.83% 81,128
2003......................................... 4,484 14,434 3.01% 18,918
2004......................................... 4,800 -- -- 4,800
2005......................................... 4,731 20,953 4.36% 25,684
2006......................................... 3,694 57,765 12.03% 61,459
2007......................................... 1,656 -- -- 1,656
2008......................................... 1,777 -- -- 1,777
Thereafter................................... 4,035 110,690 23.06% 114,725
------- -------- ------- --------
Total........................................ $42,275 $480,052 100.00% $522,327
======= ======== ======= ========
</TABLE>
- ---------------
(1) Represents amount outstanding on the Company's secured credit facility which
is due on December 31, 2000.
24
