<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 OR REPORT: (DATE OF EARLIEST EVENT REPORTED)
AUGUST 5, 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 August 5, 1999 the Registrant made available additional financial and
operational information concerning the Registrant, Center Trust, Inc., and
properties owned as of June 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 June 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: August 5, 1999
3
<PAGE> 1
EXHIBIT 99
CENTER TRUST, INC.
SUPPLEMENTAL INFORMATION
JUNE 30, 1999
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 Activity...................................... 9
Summary of Leasing Activity -- Community Shopping Centers... 10
Portfolio Summary........................................... 11
Portfolio Detail -- by Region............................... 12-16
Lease Expirations -- Overall Portfolio/Total Community
Shopping Centers.......................................... 17
Lease Expirations -- Community Shopping Centers by Region... 18-19
Tenant Concentration........................................ 20
Segment Concentration....................................... 21
Consolidated Statements of Operations and Reconciliation to
Funds From Operations..................................... 22
Consolidated Balance Sheets................................. 23
Summary of Outstanding Debt................................. 24
Schedule of Mortgage Debt Maturities........................ 25
</TABLE>
4
<PAGE> 2
CENTER TRUST, INC.
COMPANY PROFILE
JUNE 30, 1999
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 62
shopping centers, comprised of 49 community shopping centers, two regional malls
and 11 single tenant facilities comprising 12.3 million square feet of total
shopping center gross leasable area (GLA) and 10.2 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, June 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.
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 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> 3
CENTER TRUST, INC.
FINANCIAL HIGHLIGHTS
JUNE 30, 1999
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -----------------
1999 1998 1999 1998
-------- -------- ------- -------
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
Funds From Operations (FFO)
FFO -- Basic......................................... $10,663 $ 8,207 $21,365 $15,727
FFO -- Diluted(1).................................... $14,111 $11,674 $28,280 $22,661
FFO per share -- Basic............................... $ 0.37 $ 0.33 $ 0.72 $ 0.67
FFO per share -- Diluted(1).......................... $ 0.37 $ 0.34 $ 0.73 $ 0.69
Net Income Available to Common Shareholders............. $ 340 $ 1,570 $21,232 $ 3,350
Net Income Per Share -- Basic........................ $ 0.01 $ 0.08 $ 0.84 $ 0.18
Net Income Per Share -- Diluted...................... $ 0.01 $ 0.08 $ 0.80 $ 0.18
EBITDA.................................................. $24,110 $20,147 $47,709 $38,082
Funds Available for Distribution (FAD).................. $10,797 $ 8,361 $21,661 $16,109
FAD per share -- Basic............................... $ 0.37 $ 0.34 $ 0.73 $ 0.69
Dividends Per Share..................................... $ 0.36 $ 0.36 $ 0.72 $ 0.72
Interest Expense Coverage Ratios
Based on EBITDA...................................... 1.8 1.7 1.8 1.7
Based on EBITDA -- Excluding Debentures.............. 2.4 2.2 2.4 2.4
</TABLE>
<TABLE>
<CAPTION>
AS OF
-------------------------------------------
JUNE 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
----------- ------------ ------------
<S> <C> <C> <C>
PORTFOLIO INFORMATION
Company Owned GLA
Community Shopping Centers..................... 7,974,046 7,887,404 4,704,838
Regional Malls................................. 1,178,009 1,178,009 1,152,040
Single Tenant Facilities....................... 1,000,086 1,119,212 1,360,121
Total Company Owned GLA...................... 10,152,141 10,184,625 7,216,999
Percentage Leased
Community Shopping Centers..................... 93.2% 91.9% 93.8%
Regional Malls................................. 90.0% 90.9% 91.3%
Single Tenant Facilities....................... 100.0% 100.0% 100.0%
Overall Portfolio............................ 93.5% 92.7% 94.6%
Average Base Rent
Community Shopping Centers..................... $ 10.96 $ 11.26 $ 11.15
Regional Malls................................. $ 16.24 $ 16.16 $ 16.95
Single Tenant Facilities....................... $ 6.19 $ 6.37 $ 5.73
Overall Portfolio............................ $ 11.04 $ 11.23 $ 10.96
Number of Properties
Community Shopping Centers..................... 49 49 30
Regional Malls................................. 2 2 2
Single Tenant Facilities....................... 11 12 14
Overall Portfolio............................ 62 63 46
</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> 4
CENTER TRUST, INC.
FINANCIAL HIGHLIGHTS
JUNE 30, 1999
(IN THOUSANDS EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- -----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
EQUITY INFORMATION
Units Outstanding at End of Period............ 1,836,623 5,272,239 1,836,623 5,272,239
Common Outstanding at End of Period........... 26,113,225 22,348,260 26,113,225 22,348,260
---------- ---------- ---------- ----------
Total Units and Common Shares Outstanding at
End of Period.............................. 27,949,848 27,620,499 27,949,848 27,620,499
========== ========== ========== ==========
Basic Weighted Average Units Outstanding...... 3,797,710 5,242,731 4,369,308 4,808,314
Basic Weighted Average Common Shares
Outstanding................................ 25,229,944 19,586,347 25,236,600 18,621,379
---------- ---------- ---------- ----------
Basic Weighted Average Units and Common Shares
Outstanding................................ 29,027,654 24,829,078 29,605,908 23,429,693
---------- ---------- ---------- ----------
Number of Common Shares Attributed to
Convertible and Exchangeable
Debentures(1).............................. 9,315,830 9,366,611 9,341,110 9,366,611
Weighted Average Common Stock Equivalents..... -- 101,109 -- 93,290
---------- ---------- ---------- ----------
Diluted Weighted Average Common Shares and
Common Share Equivalents................... 38,343,484 34,296,798 38,947,018 32,889,594
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
AS OF
------------------------------------------
JUNE 30, DECEMBER 31, DECEMBER 31,
1999 1998 1997
---------- ------------ ------------
(IN THOUSANDS, EXCEPT SHARE DATA)
<S> <C> <C> <C>
DEBT-TO-MARKET CAPITALIZATION
Common Stock Price at End of Period................. $ 11.75 $ 12.25 $ 17.44
Equity Market Capitalization........................ $ 328,411 $ 371,481 $356,729
Total Capitalization................................ $1,028,933 $1,037,466 $838,988
Total Capitalization Assuming Conversion of
Debentures....................................... $ 870,535 $ 938,608 $833,743
Debt-to-Total Capitalization........................ 68.1% 64.2% 57.5%
Debt-to-Total Capitalization(2)..................... 62.6% 59.4% 61.1%
Debt-to-Total Capitalization Assuming Conversion of
Debentures....................................... 62.3% 50.6% 37.6%
Debt-to-Total Capitalization Assuming Conversion of
Debentures(2).................................... 56.4% 45.5% 41.2%
</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.
(2) Assuming a consistent stock price of $15.00 per share which represents the
price of stock sold during the respective periods.
7
<PAGE> 5
CENTER TRUST, INC.
RECONCILIATION OF COMMON SHARES AND OPERATING PARTNERSHIP
UNITS OUTSTANDING
AS OF JUNE 30, 1999
<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
----------
Shares Repurchased(1).................................. (966,700)
Units Converted to Shares.............................. 40,000
Shares issued for Convertible Debentures............... 222
Issuance of Stock Awards to Employees.................. 17,099
----------
Balance, March 31, 1999................................... 24,437,348
----------
Shares Repurchased(1)(2)............................... (596,101)
Shares Issued.......................................... 2,260,232
Issuance of Stock Awards to Employees.................. 11,746
----------
Balance, June 30, 1999.................................... 26,113,225
==========
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
Units Converted to Shares.............................. (40,000)
----------
Balance, March 31, 1999................................... 4,938,240
Units Repurchased(3)................................... (3,101,617)
----------
Balance, June 30, 1999.................................... 1,836,623
==========
</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 $10.78.
(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.
8
<PAGE> 6
CENTER TRUST, INC.
SAME PROPERTY ACTIVITY
JUNE 30, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------ ------------------
1999 1998 % CHANGE 1999 1998 % CHANGE
COMMUNITY SHOPPING CENTERS(1) ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue.............. $11,901 $11,800 0.9% $23,760 $23,258 2.2%
Recoveries from Tenants..... 2,896 2,582 12.2% 5,860 5,519 6.2%
Other Income................ 150 262 (42.7)% 285 438 (34.9)%
------- ------- ------- -------
Total Revenues...... 14,947 14,644 2.1% 29,905 29,215 2.4%
Expenses:
Recoverable Operating
Expenses................. 3,155 2,902 8.7% 6,406 6,000 6.8%
Other Operating Expenses.... 407 369 10.3% 798 725 10.1%
------- ------- ------- -------
Total Expenses...... 3,562 3,271 8.9% 7,204 6,725 7.1%
------- ------- ------- -------
Net Operating Income.......... $11,385 $11,373 0.1% $22,701 $22,490 0.9%
======= ======= ======= =======
Total Properties.... 28 28 28 28
======= ======= ======= =======
Percentage Leased............. 94.9% 93.6% 94.9% 93.6%
======= ======= ======= =======
Average Base Rent per square
foot........................ $ 11.39 $ 11.20 $ 11.39 $ 11.20
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------ ------------------
1999 1998 % CHANGE 1999 1998 % CHANGE
REGIONAL MALLS ------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rental Revenue.............. $ 4,769 $ 4,418 7.9% $ 9,283 $ 8,907 4.2%
Recoveries from Tenants..... 2,202 2,358 (6.6)% 4,655 4,593 1.3%
Other Income................ 794 793 0.1% 1,566 1,570 (0.3)%
------- ------- ------- -------
Total Revenues...... 7,765 7,569 2.6% 15,504 15,070 2.9%
Expenses:
Recoverable Operating
Expenses................. 2,932 2,901 1.1% 5,952 5,667 5.0%
Other Operating Expenses.... 13 48 (72.9)% 11 455 (97.6)%
------- ------- ------- -------
Total Expenses...... 2,945 2,949 (0.1)% 5,963 6,122 (2.6)%
------- ------- ------- -------
Net Operating Income.......... $ 4,820 $ 4,620 4.3% $ 9,541 $ 8,948 6.6%
======= ======= ======= =======
Total Properties.... 2 2 2 2
======= ======= ======= =======
Percentage Leased............. 90.0% 90.0% 90.0% 90.0%
======= ======= ======= =======
Average Base Rent per square
foot........................ $ 16.24 $ 16.24 $ 16.24 $ 16.24
======= ======= ======= =======
</TABLE>
Same Store properties are those which were owned as of January 1, 1998.
- ---------------
(1) Excludes Empire Center which was sold on August 3, 1999
9
<PAGE> 7
CENTER TRUST, INC.
SUMMARY OF LEASING ACTIVITY -- COMMUNITY SHOPPING CENTERS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
THREE SIX
MONTHS ENDED MONTHS ENDED
JUNE 30, JUNE 30,
------------ ------------
<S> <C> <C>
Space Vacated
Number of Leases.......................................... 19 46
Gross Leasable Area....................................... 48,032 151,867
Base Rent per Square Foot................................. $ 14.10 $ 11.17
New Leases Executed
Number of Leases Executed................................. 26 48
Gross Leasable Area....................................... 135,177 236,136
Base Rent per Square Foot................................. $ 11.35 $ 11.23
Lease Renewals Executed
Number of Leases.......................................... 34 69
Gross Leasable Area....................................... 60,636 233,515
New Annual Base Rent per Square Foot...................... $ 16.68 $ 11.38
Percentage Change from Prior.............................. 1.2% 2.5%
Leases with Contractual Rent Adjustments
Number of Leases.......................................... 86 181
Gross Leasable Area....................................... 196,585 564,841
New Annual Base Rent per Square Foot...................... $ 15.79 $ 13.66
Percentage Change from Prior.............................. 6.5% 15.7%
</TABLE>
10
<PAGE> 8
CENTER TRUST, INC.
PORTFOLIO SUMMARY
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
GLA AS
% OF
TOTAL
NUMBER TOTAL LEASED GLA COMPANY
OF ---------------- COMPANY OWNED PERCENT
PROPERTIES ANCHOR PAD SHOP OWNED GLA GLA LEASED
---------- --------- ---------------- --------- ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
COMMUNITY SHOPPING CENTERS
Pacific Northwest Region........... 12 979,792 104,232 691,062 1,900,812 18.72% 93.4%
Northern & Central California
Region........................... 7 364,261 11,808 365,064 771,317 7.61% 96.1%
Southern California Region......... 24 2,738,742 360,166 866,390 4,232,572 41.69% 93.7%
Southwest Region................... 6 557,438 55,566 335,084 1,069,345 10.53% 88.7%
-- --------- ------- --------- ---------- ----- -----
TOTAL COMMUNITY SHOPPING
CENTERS................ 49 4,640,233 531,772 2,257,600 7,974,046 78.55% 93.2%
REGIONAL MALLS..................... 2 609,515 78,594 371,869 1,178,009 11.60% 90.0%
SINGLE TENANT FACILITIES........... 11 996,186 3,900 -- 1,000,086 9.85% 100.0%
-- --------- ------- --------- ---------- ----- -----
TOTAL PORTFOLIO.......... 62 6,245,934 614,266 2,629,469 10,152,141 100.0% 93.5%
== ========= ======= ========= ========== ===== =====
<CAPTION>
AVERAGE
BASE
ANNUALIZED RENT
BASE RENT PER SQ. FT.
------------ -----------
<S> <C> <C>
COMMUNITY SHOPPING CENTERS
Pacific Northwest Region........... $ 18,623,139 $10.44
Northern & Central California
Region........................... 7,911,863 10.68
Southern California Region......... 47,210,875 11.91
Southwest Region................... 7,744,619 8.17
------------ ------
TOTAL COMMUNITY SHOPPING
CENTERS................ 81,490,496 10.96
REGIONAL MALLS..................... 17,218,307 16.24
SINGLE TENANT FACILITIES........... 6,187,459 6.19
------------ ------
TOTAL PORTFOLIO.......... $104,896,262 $11.04
============ ======
</TABLE>
11
<PAGE> 9
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 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 -- 70,426 151,423 93.3% $ 1,537,289
Covington, WA
Fairwood Shopping Center.......... 1995 109,249 10,954 85,430 214,692 95.8 2,005,771
Renton, WA
Frontier Village Shopping 1993 68,473 22,023 58,637 153,320 97.3 1,493,569
Center..........................
Lake Stevens, WA
Gresham Town Fair................. 1988 159,282 26,587 59,162 264,649 92.6 2,090,218
Gresham, OR
The Medford Center................ 1998 196,032 9,432 53,167 319,988 80.8 2,029,397
Medford, OR
Pacific Linen Plaza............... 1988 25,000 -- 44,432 69,432 100.0 992,390
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 68,544 132,465 97.3 1,504,609
Portland, OR
Silverdale Shopping Center........ 1990 29,020 -- 36,642 67,287 97.6 798,883
Silverdale, WA
Sixth Avenue Plaza................ 1986 73,166 -- 61,911 139,107 97.1 1,067,279
Tacoma, WA
Vancouver Park Place.............. 1987 33,938 14,900 27,751 77,989 98.2 925,965
Vancouver, WA
Westgate North Shopping Center.... 1980 37,902 13,336 48,313 110,251 90.3 1,120,751
Tacoma, WA
--------- ------- --------- ---------- ----- ------------
Pacific Northwest Region.......... 979,792 104,232 691,062 1,900,812 93.4 18,623,139
--------- ------- --------- ---------- ----- ------------
NORTHERN & CENTRAL CALIFORNIA REGION
Bakersfield Shopping Center....... 1978 -- -- 12,740 14,115 90.3 90,368
Bakersfield, CA
Madera Marketplace................ 1992 92,278 -- 67,856 168,596 95.0 1,658,043
Madera, CA
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
COMMUNITY RETAIL CENTERS
PACIFIC NORTHWEST
Covington Square.................. $10.88 Safeway, Payless Drugs
Covington, WA
Fairwood Shopping Center.......... 9.75 Safeway, Ace Hardware, Pic
Renton, WA 'N' Save, Quality Food
Centers
Frontier Village Shopping 10.02 Safeway, Bartell Drugs
Center..........................
Lake Stevens, WA
Gresham Town Fair................. 8.53 Ross Stores, Emporium, GI
Gresham, OR Joe's, Craft Warehouse
The Medford Center................ 7.61 Cinemark Theatres, Sears,
Medford, OR Emporium, Payless*,
Safeway*, Circuit City
Pacific Linen Plaza............... 14.29 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....................... 11.67 Ross Stores, Michaels, Pier
Portland, OR 1 Imports
Silverdale Shopping Center........ 12.17 Ross Stores
Silverdale, WA
Sixth Avenue Plaza................ 7.90 Sears, Drug Emporium, Artco
Tacoma, WA
Vancouver Park Place.............. 12.09 T.J. Maxx, Pier 1 Imports,
Vancouver, WA Olive Garden
Westgate North Shopping Center.... 11.26 Quality Food Centers
Tacoma, WA
------
Pacific Northwest Region.......... 10.44
------
NORTHERN & CENTRAL CALIFORNIA REGION
Bakersfield Shopping Center....... 7.09
Bakersfield, CA
Madera Marketplace................ 10.35 Wal-Mart*, J.C. Penney,
Madera, CA Pak-N-Sav
</TABLE>
12
<PAGE> 10
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 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>
Marshall's Plaza.................. 1989 43,000 -- 34,875 79,000 98.6% $ 1,125,481
Modesto, CA
Mineral King Plaza................ 1983 -- -- 32,860 39,060 84.1 513,968
Visalia, CA
Rheem Valley...................... 1990 51,009 5,150 90,937 153,956 95.5 1,663,320
Moraga, CA
Rosedale Village Shopping 1991 72,324 6,658 43,669 127,527 96.2 1,345,893
Center..........................
Bakersfield, CA
Southpointe Plaza................. 1982 105,650 -- 82,127 189,063 99.3 1,514,790
Sacramento, CA
--------- ------- --------- ---------- ----- ------------
Northern & Central California 364,261 11,808 365,064 771,317 96.1 7,911,863
Region............................
--------- ------- --------- ---------- ----- ------------
SOUTHERN CALIFORNIA REGION
Advantage/Sportmart Shopping 1988 105,210 12,650 -- 117,860 100.0 1,370,610
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 24,341 18,216 168,367 82.4 1,817,477
Chino, CA
Covina Town Square................ 1997 266,383 12,842 63,618 356,535 96.2 5,038,316
Covina, CA
Date Palm Center.................. 1987 99,919 -- 12,937 117,362 96.2 1,681,076
Cathedral City, CA
El Camino North................... 1982 101,582 133,024 64,091 322,490 92.6 3,546,592
Oceanside, CA
Empire Center..................... 1993 50,967 15,690 84,751 261,996 57.8 1,505,670
Fontana, CA
Fire Mountain Center.............. 1987 44,481 23,432 24,465 93,778 98.5 1,813,135
Oceanside, CA
Fullerton Town Center............. 1987 177,653 19,722 48,205 255,687 96.0 3,801,908
Fullerton, CA
Gardena Gateway Center............ 1990 41,300 5,062 18,225 65,987 97.9 984,298
Gardena, CA
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Marshall's Plaza.................. $14.45 Marshall's, Good Guys
Modesto, CA
Mineral King Plaza................ 15.64 Vons*, Longs Drugs*
Visalia, CA
Rheem Valley...................... 11.31 T. J. Maxx, Longs Drugs*
Moraga, CA
Rosedale Village Shopping 10.97 Savemart, Payless Drugs,
Center.......................... Kmart*
Bakersfield, CA
Southpointe Plaza................. 8.07 Target, Big 5 Sporting
Sacramento, CA Goods, Discovery Zone
------
Northern & Central California 10.68
Region............................
------
SOUTHERN CALIFORNIA REGION
Advantage/Sportmart Shopping 11.63 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...... 13.10 Albertsons*, PETsMART,
Chino, CA Rite-Aid, Staples, T.J.
Maxx
Covina Town Square................ 14.70 Home Depot, Staples,
Covina, CA PETsMART, Michael's, AMC
Theatres
Date Palm Center.................. 14.90 Sam's Club (Wal-Mart)
Cathedral City, CA
El Camino North................... 11.87 Mervyn's*, Toys 'R' Us*,
Oceanside, CA Mann Theatres, Ross Stores,
Stein Mart
Empire Center..................... 9.94 Target*, Mervyn's*,
Fontana, CA Miller's Outpost, Ross
Stores
Fire Mountain Center.............. 19.63 Strouds, Lamps Plus, Trader
Oceanside, CA Joe's, Bookstar
Fullerton Town Center............. 15.48 Price Club*, AMC Theatres,
Fullerton, CA Toys 'R' Us, Office Depot
Gardena Gateway Center............ 15.24 Rite-Aid, 99 Ranch Market
Gardena, CA
</TABLE>
13
<PAGE> 11
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 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>
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 53,116 165,465 99.7 1,587,158
Los Angeles, CA
La Verne Towne Center............. 1986 158,860 1,940 58,359 231,143 94.8 1,343,081
La Verne, CA
Lakewood Plaza.................... 1989 93,342 4,365 15,804 113,511 100.0 1,299,668
Bellflower, CA
Loma Square....................... 1980 96,514 -- 105,845 210,704 96.0 2,659,594
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 3,098,631
Upland, CA
North County Plaza................ 1987 43,610 28,720 71,170 153,325 93.6 2,074,373
Carlsbad, CA
Parkway Place..................... 1989 91,127 12,917 15,347 120,425 99.1 1,248,913
Escondido, CA
Pomona Gateway Center............. 1993 96,418 6,487 1,000 108,887 95.4 919,968
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 4,095,043
Torrance, CA
Vermont-Slauson Shopping Center... 1981 142,411 3,720 23,613 169,744 100.0 990,947
Los Angeles, CA
Vineyards Marketplace............. 1991 21,415 -- 29,172 56,035 90.3 749,048
Rancho Cucamonga, CA
--------- ------- --------- ---------- ----- ------------
Southern California Region.......... 2,738,742 360,166 866,390 4,232,572 93.7 47,210,875
--------- ------- --------- ---------- ----- ------------
SOUTHWEST REGION
Charleston Plaza.................. 1989 153,131 19,171 44,104 234,496 92.3 2,308,854
Las Vegas, NV
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Huntington Center................. $11.66 Toys 'R' Us, Lucky
Huntington Beach, CA
Kenneth Hahn Plaza................ 9.62 Food 4 Less, Pic 'N' Save,
Los Angeles, CA Rite-Aid, Super Trak Auto
La Verne Towne Center............. 6.13 Target, Albertson's
La Verne, CA
Lakewood Plaza.................... 11.45 Lucky, Staples
Bellflower, CA
Loma Square....................... 13.14 T.J. Maxx, Circuit City,
San Diego, CA Sav- on Drugs, Staples,
Super Crown Books
Montebello Town Square............ 11.13 Sears, Toys 'R' Us, AMC
Montebello, CA Theatres, Petco
Mountain Square Shopping Center... 12.10 Home Depot, Staples,
Upland, CA Pavilions
North County Plaza................ 14.46 Marshall's, Michael's, Kids
Carlsbad, CA 'R' Us
Parkway Place..................... 10.46 Advantage (Lucky), Office
Escondido, CA Depot
Pomona Gateway Center............. 8.85 Vons, Pic 'N' Save
Pomona, CA
San Fernando Mission Plaza........ 13.47 KV-Mart (Vons)
San Fernando, CA
Torrance Promenade................ 15.60 Ross, Marshall's, Office
Torrance, CA Depot, Linens 'n Things,
Bookstar, Sears Homelife,
Loehmann's, Kids 'R' Us
Vermont-Slauson Shopping Center... 5.84 Ralphs, Kmart, Sav-on Drugs
Los Angeles, CA
Vineyards Marketplace............. 14.81 Albertson's*, Sav-on Drugs
Rancho Cucamonga, CA
------
Southern California Region.......... 11.91
------
SOUTHWEST REGION
Charleston Plaza.................. 10.67 Home Base, Lucky*, Sav-on
Las Vegas, NV Drugs
</TABLE>
14
<PAGE> 12
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 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>
Kyrene Village Shopping Center.... 1987 95,957 5,120 57,202 161,174 98.2% $ 1,173,549
Chandler, AZ
North Mountain Village............ 1985 41,215 -- 53,164 94,379 100.0 872,483
Phoenix, AZ
Randolph Plaza.................... 1972 136,110 6,150 29,239 180,434 95.0 953,883
Tucson, AZ
Southern Palms Center............. 1980 28,000 20,025 125,661 254,863 68.1 1,670,087
Tempe, AZ
Sunrise Place Center.............. 1992 103,025 5,100 25,714 143,999 92.9 765,763
Tucson, AZ
--------- ------- --------- ---------- ----- ------------
Southwest Region.................... 557,438 55,566 335,084 1,069,345 88.7 7,744,619
--------- ------- --------- ---------- ----- ------------
COMMUNITY RETAIL CENTERS............ 4,640,233 531,772 2,257,600 7,974,046 93.2 81,490,496
--------- ------- --------- ---------- ----- ------------
REGIONAL MALLS
Baldwin Hills Crenshaw Plaza...... 1988 141,554 29,610 154,148 359,604 90.5 5,819,193
Los Angeles, CA
Media City Center................. 1992 467,961 48,984 217,721 818,405 89.8 11,399,114
Burbank, CA
--------- ------- --------- ---------- ----- ------------
Regional Malls...................... 609,515 78,594 371,869 1,178,009 90.0 17,218,307
--------- ------- --------- ---------- ----- ------------
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
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Kyrene Village Shopping Center.... $ 7.41 Basha's, Kyrene Lanes
Chandler, AZ
North Mountain Village............ 9.24 Fry's Food & Drug*, T. J.
Phoenix, AZ Maxx, Greenbacks
Randolph Plaza.................... 5.56 Fry's, Walgreen's,
Tucson, AZ MacFrugal's
Southern Palms Center............. 9.62 Heilig Meyer Furniture,
Tempe, AZ Coomers Craft Mall
Sunrise Place Center.............. 5.72 Smith's Food & Drug
Tucson, AZ
------
Southwest Region.................... 8.17
------
COMMUNITY RETAIL CENTERS............ 10.96
------
REGIONAL MALLS
Baldwin Hills Crenshaw Plaza...... 17.89 Sears*, Robinsons-May*,
Los Angeles, CA Lucky, T.J. Maxx, Sony/
Magic Johnson Theaters
Media City Center................. 15.52 Macy's, IKEA*, Sears*,
Burbank, CA Mervyn's*, AMC Theatres,
Sports Chalet, CompUSA,
Barnes & Noble, Virgin
Megastore
------
Regional Malls...................... 16.24
------
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
</TABLE>
15
<PAGE> 13
<TABLE>
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 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>
Kmart............................. 1990 86,479 -- -- 86,479 100.0% 411,132
Rocklin, CA
Oracle Road....................... 1989 102,400 -- -- 102,400 100.0 588,800
Tucson, AZ
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............ 996,186 3,900 -- 1,000,086 100.0 6,187,459
--------- ------- --------- ---------- ----- ------------
TOTAL PROPERTIES.................... 6,245,934 614,266 2,629,469 10,152,141 93.5 $104,896,262
========= ======= ========= ========== ===== ============
<CAPTION>
CENTER TRUST, INC.
PORTFOLIO DETAIL -- BY REGION
AS OF JUNE 30, 1999
AVERAGE
BASE
RENT
PROPERTY NAME PER SQ. FT. ANCHOR OR PRINCIPAL TENANTS
------------- ----------- ---------------------------
<S> <C> <C>
Kmart............................. 4.75 Kmart
Rocklin, CA
Oracle Road....................... 5.75 Montgomery Ward
Tucson, AZ
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............ 6.19
------
TOTAL PROPERTIES.................... $11.04
======
</TABLE>
16
<PAGE> 14
CENTER TRUST, INC.
LEASE EXPIRATIONS -- OVERALL PORTFOLIO
JUNE 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............... 129 273,739 $11.14 72,996 $4.25 4,452 $15.32 196,291 $13.61
1999......................... 101 209,508 13.90 25,980 8.39 2,500 12.96 181,028 14.70
2000......................... 195 565,041 14.23 154,907 9.68 45,559 14.44 364,575 16.14
2001......................... 234 722,687 14.05 256,622 8.32 42,147 16.39 423,918 17.28
2002......................... 195 823,683 11.97 413,023 6.91 52,448 18.20 358,212 16.90
2003......................... 134 599,753 10.96 214,277 4.34 46,772 15.77 338,704 14.49
2004......................... 122 932,142 10.31 634,880 7.49 34,688 16.12 262,574 16.38
2005......................... 42 387,138 13.75 240,580 12.56 31,869 14.78 114,689 15.94
2006......................... 52 406,817 12.79 236,153 10.26 37,105 13.00 133,559 17.20
2007......................... 41 399,466 11.28 231,757 8.31 48,738 11.73 118,971 16.89
2008......................... 31 495,697 10.96 423,693 9.83 39,167 19.58 32,837 15.24
THEREAFTER................... 121 3,673,998 9.30 3,341,066 8.81 228,821 14.60 104,111 12.81
----- --------- ------ --------- ----- ------- ------ --------- ------
TOTAL............... 1,397 9,489,669 $11.04 6,245,934 $8.59 614,266 $15.19 2,629,469 $15.89
===== ========= ====== ========= ===== ======= ====== ========= ======
</TABLE>
LEASE EXPIRATIONS -- TOTAL COMMUNITY SHOPPING CENTERS
JUNE 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............... 87 225,671 $ 9.59 72,996 $4.25 4,452 $15.32 148,223 $12.06
1999......................... 79 174,143 13.72 25,980 8.39 2,500 12.96 145,663 14.69
2000......................... 176 532,302 13.77 154,907 9.68 41,659 15.00 335,736 15.50
2001......................... 190 671,610 12.68 256,622 8.32 42,147 16.39 372,841 15.25
2002......................... 168 774,624 10.94 413,023 6.91 51,408 17.67 310,193 15.21
2003......................... 110 555,297 10.11 214,277 4.34 46,772 15.77 294,248 13.41
2004......................... 100 761,240 10.12 501,908 7.58 28,188 17.71 231,144 14.71
2005......................... 29 268,559 10.54 143,001 7.41 30,149 13.97 95,409 14.16
2006......................... 45 364,730 12.14 210,849 9.22 30,695 14.05 123,186 16.67
2007......................... 32 309,669 10.51 194,957 8.28 48,738 11.73 65,974 16.18
2008......................... 26 337,869 10.46 271,571 9.03 34,167 17.76 32,131 14.74
THEREAFTER................... 93 2,453,891 10.26 2,180,142 9.88 170,897 13.46 102,852 12.73
----- --------- ------ --------- ----- ------- ------ --------- ------
TOTAL............... 1,135 7,429,605 $10.96 4,640,233 $8.70 531,772 $14.82 2,257,600 $14.68
===== ========= ====== ========= ===== ======= ====== ========= ======
</TABLE>
17
<PAGE> 15
CENTER TRUST, INC.
LEASE EXPIRATIONS -- COMMUNITY SHOPPING CENTERS BY REGION
JUNE 30, 1999
PACIFIC NORTHWEST REGION
<TABLE>
<CAPTION>
OVERALL PORTFOLIO ANCHORS PADS SHOPS
----------------------------- ------------------ ------------------ ------------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- ------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month to Month......... 25 103,654 $ 7.63 42,420 $2.30 177 $50.10 61,057 $11.22
1999................... 24 45,794 13.63 -- -- 2,500 12.96 43,294 13.67
2000................... 42 113,254 13.98 -- -- 16,600 18.14 96,654 13.26
2001................... 47 203,262 10.25 105,780 5.37 32 -- 97,450 15.43
2002................... 36 143,131 10.87 68,605 6.70 8,000 13.98 66,526 15.12
2003................... 36 150,102 11.88 26,832 6.04 9,974 17.63 113,296 12.76
2004................... 25 174,931 7.83 101,295 2.70 7,917 11.26 65,719 14.66
2005................... 10 83,050 11.88 29,080 6.30 14,449 12.95 39,521 15.21
2006................... 15 86,442 13.68 47,130 8.58 -- -- 39,312 19.79
2007................... 9 48,639 14.16 -- -- 18,562 11.53 30,077 15.79
2008................... 11 129,885 9.61 109,804 9.04 10,136 14.03 9,945 11.60
THEREAFTER............. 20 492,942 9.43 448,846 9.20 15,885 11.58 28,211 11.30
--- --------- ------ ------- ----- ------- ------ ------- ------
TOTAL......... 300 1,775,086 $10.44 979,792 $7.42 104,232 $14.13 691,062 $14.13
=== ========= ====== ======= ===== ======= ====== ======= ======
</TABLE>
NORTHERN AND CENTRAL CALIFORNIA REGION
<TABLE>
<CAPTION>
OVERALL PORTFOLIO ANCHORS PADS SHOPS
----------------------------- ------------------ ----------------- ------------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- ------- -------- ------ -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month to Month.......... 15 15,489 $13.33 -- -- -- -- 15,489 $13.33
1999.................... 12 17,987 14.36 17,987 14.36
2000.................... 32 93,532 9.91 52,165 $ 6.47 -- -- 41,367 14.25
2001.................... 37 77,420 13.74 -- -- -- -- 77,420 13.74
2002.................... 33 179,791 8.87 105,650 4.83 6,658 $12.30 67,483 14.86
2003.................... 17 71,539 12.15 -- -- -- -- 71,539 12.15
2004.................... 21 52,745 17.24 16,000 26.23 1,650 14.67 35,095 13.27
2005.................... 3 40,246 7.83 25,844 6.71 -- -- 14,402 9.85
2006.................... 4 19,810 12.17 -- -- -- -- 19,810 12.17
2007.................... 2 35,668 7.15 33,796 6.21 -- -- 1,872 24.04
2008.................... 1 2,600 20.92 -- -- -- -- 2,600 20.92
THEREAFTER.............. 4 134,306 9.06 130,806 8.91 3,500 15.00 -- --
--- --------- ------ ------- ------ ------ ------ ------- ------
TOTAL.......... 181 741,133 $10.68 364,261 $ 7.73 11,808 $13.43 365,064 $13.53
=== ========= ====== ======= ====== ====== ====== ======= ======
</TABLE>
18
<PAGE> 16
CENTER TRUST, INC.
LEASE EXPIRATIONS -- COMMUNITY SHOPPING CENTERS BY REGION
JUNE 30, 1999
SOUTHERN CALIFORNIA REGION
<TABLE>
<CAPTION>
OVERALL PORTFOLIO ANCHORS PADS SHOPS
----------------------------- -------------------- ------------------ -------------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- --------- -------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month to Month.................. 35 89,987 $10.98 30,576 $ 6.95 4,275 $13.88 55,136 $12.99
1999............................ 26 65,184 15.63 9,600 11.94 -- -- 55,584 16.27
2000............................ 79 262,409 15.76 88,140 12.18 25,059 12.80 149,210 18.37
2001............................ 78 308,368 14.32 150,842 10.39 31,265 16.85 126,261 18.40
2002............................ 65 349,097 12.36 210,768 8.19 33,000 19.02 105,329 18.61
2003............................ 45 290,405 8.81 176,807 3.89 36,798 15.26 76,800 17.03
2004............................ 43 412,621 11.17 286,852 9.15 9,396 25.60 116,373 14.97
2005............................ 13 97,277 12.04 58,312 9.09 15,700 13.96 23,265 18.12
2006............................ 21 246,444 11.54 163,719 9.40 25,575 14.26 57,150 16.43
2007............................ 15 142,716 12.42 89,975 11.33 30,176 11.85 22,565 17.51
2008............................ 10 148,179 12.83 113,580 10.61 21,013 21.07 13,586 18.57
THEREAFTER...................... 59 1,552,611 11.26 1,359,571 10.94 127,909 13.35 65,131 13.98
--- --------- ------ --------- ------ ------- ------ ------- ------
TOTAL.................. 489 3,965,298 $11.91 2,738,742 $ 9.92 360,166 $15.07 866,390 $16.87
=== ========= ====== ========= ====== ======= ====== ======= ======
</TABLE>
SOUTHWEST REGION
<TABLE>
<CAPTION>
OVERALL PORTFOLIO ANCHORS PADS SHOPS
----------------------------- -------------------- ----------------- -------------------
NUMBER BASE BASE BASE BASE
YEAR OF OF SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER SQUARE RENT PER
EXPIRATION LEASES FEET SQ. FT. FEET SQ. FT. FEET SQ. FT. FEET SQ. FT.
---------- ------ --------- -------- --------- -------- ------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Month to Month................... 12 16,541 $10.86 -- -- -- -- 16,541 $10.86
1999............................. 17 45,178 10.80 16,380 $6.30 -- -- 28,798 13.36
2000............................. 23 63,107 10.84 14,602 6.00 -- -- 48,505 12.23
2001............................. 28 82,560 11.50 -- -- 10,850 $13.96 71,710 11.12
2002............................. 34 102,605 9.87 28,000 5.58 3,750 29.06 70,855 10.55
2003............................. 12 43,251 9.30 10,638 7.52 -- -- 32,613 9.89
2004............................. 11 120,943 6.76 97,761 4.98 9,225 10.93 13,957 16.47
2005............................. 3 47,986 7.48 29,765 5.80 -- -- 18,221 10.21
2006............................. 5 12,034 13.44 -- -- 5,120 13.00 6,914 13.77
2007............................. 6 82,646 6.50 71,186 5.40 -- -- 11,460 13.32
2008............................. 4 57,205 5.79 48,187 5.29 3,018 8.18 6,000 8.60
THEREAFTER....................... 10 274,032 6.65 240,919 5.69 23,603 15.73 9,510 8.42
--- --------- ------ --------- ----- ------ ------ ------- ------
TOTAL................... 165 948,088 $ 8.17 557,438 $5.56 55,566 $14.88 335,084 $11.40
=== ========= ====== ========= ===== ====== ====== ======= ======
</TABLE>
19
<PAGE> 17
CENTER TRUST, INC.
SUMMARY OF TENANTS WITH RENTS EXCEEDING 1% OF TOTAL RENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
PERCENTAGE
PERCENTAGE TOTAL OF COMPANY
NUMBER OF ANNUALIZED OF TOTAL TENANT OWNED
RETAIL TENANT STORES BASE RENT BASE RENT GLA GLA
------------- --------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
AMC THEATRES............................. 6 $ 5,907,780 5.63% 259,842 2.56%
SAFEWAY/VONS............................. 9 4,541,850 4.33% 533,019 5.25%
AMERICAN STORES (LUCKY/SAV-ON)........... 9 3,602,277 3.43% 406,496 4.00%
K-MART................................... 7 2,927,871 2.79% 619,103 6.10%
SAM'S CLUB/WAL-MART...................... 2 2,138,834 2.04% 210,741 2.08%
TJX...................................... 9 1,982,526 1.89% 247,614 2.44%
HOME DEPOT............................... 2 1,875,930 1.79% 200,549 1.98%
SEARS.................................... 6 1,840,787 1.75% 328,722 3.24%
TOYS 'R' US.............................. 5 1,802,233 1.72% 180,780 1.78%
HOME BASE................................ 2 1,710,833 1.63% 212,572 2.09%
FRED MEYERS (RALPHS/FFL/QFC)............. 5 1,650,745 1.57% 196,674 1.94%
BARNES & NOBLE........................... 4 1,500,636 1.43% 70,276 0.69%
ROSS STORES INC.......................... 6 1,404,271 1.34% 170,012 1.67%
STAPLES.................................. 5 1,293,830 1.23% 108,259 1.07%
MAGIC JOHNSON THEATRES................... 1 1,288,210 1.23% 67,579 0.67%
THE LIMITED STORES....................... 10 1,176,730 1.12% 64,216 0.63%
PAYLESS SHOE SOURCE...................... 17 1,160,529 1.11% 57,664 0.57%
OFFICE DEPOT............................. 4 1,090,026 1.04% 101,594 1.00%
--- ----------- ----- --------- -----
TOTAL.......................... 109 $38,895,898 37.07% 4,035,712 39.76%
=== =========== ===== ========= =====
</TABLE>
20
<PAGE> 18
CENTER TRUST, INC.
MAJOR SEGMENT CONCENTRATION EXCEEDING 2% OF TOTAL RENTS
AS OF JUNE 30, 1999
<TABLE>
<CAPTION>
PERCENT
NUMBER TOTAL SEGMENT PERCENT TOTAL OF COMPANY
OF ANNUALIZED OF TOTAL SEGMENT OWNED
RETAIL TENANT LEASES BASE RENT BASE RENT GLA GLA
------------- ------ ------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
GROCERY STORES......................... 26 $11,056,217 10.54% 1,365,415 13.45%
THEATRES............................... 9 8,219,557 7.84% 409,694 4.04%
FAST FOOD RESTAURANTS.................. 194 6,887,692 6.57% 333,773 3.29%
RESTAURANTS............................ 76 6,105,916 5.82% 406,863 4.01%
DISCOUNT DEPT. STORES.................. 11 5,758,110 5.49% 1,050,226 10.34%
DISCOUNT APPAREL STORES................ 38 4,716,059 4.50% 544,023 5.36%
WOMEN'S WEAR........................... 64 4,526,453 4.32% 291,256 2.87%
HOME IMPROVEMENT....................... 13 4,077,833 3.89% 483,796 4.77%
DEPARTMENT STORES...................... 11 3,574,875 3.41% 836,090 8.24%
HOME FURNISHINGS....................... 23 3,295,384 3.14% 253,087 2.49%
AUDIO/VIDEO STORES..................... 30 3,134,681 2.99% 173,662 1.71%
BANK/FINANCIAL SERVICES................ 62 2,550,523 2.43% 165,303 1.63%
VARIETY STORES......................... 37 2,543,755 2.43% 306,059 3.01%
BEAUTY SUPPLY/SALONS................... 107 2,494,108 2.38% 139,312 1.37%
MAJOR SHOE STORES...................... 38 2,487,651 2.37% 124,913 1.23%
ELECTRONICS............................ 24 2,450,985 2.34% 162,561 1.60%
OFFICE SUPPLY STORES................... 9 2,213,111 2.11% 196,683 1.94%
--- ----------- ----- --------- -----
TOTAL........................ 772 $76,092,910 72.57% 7,242,716 71.35%
=== =========== ===== ========= =====
</TABLE>
21
<PAGE> 19
CENTER TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND RECONCILIATION
TO FUNDS FROM OPERATIONS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- ------------------
1999 1998 1999 1998
-------- -------- -------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Rental revenues.......................................... $26,615 $23,156 $ 52,840 $42,688
Expense reimbursements................................... 7,856 6,617 15,989 12,790
Percentage rents......................................... 391 323 1,009 562
Other income............................................. 1,331 1,268 2,521 2,493
------- ------- -------- -------
Total revenues................................. 36,193 31,364 72,359 58,533
------- ------- -------- -------
Interest................................................. 13,511 12,172 26,606 22,426
Depreciation and amortization............................ 6,098 5,916 12,124 11,305
Property operating costs:
Common area............................................ 5,316 4,738 10,843 8,815
Property taxes......................................... 3,698 2,932 7,305 5,704
Leasehold rentals...................................... 423 414 847 825
Marketing.............................................. 204 83 345 158
Other operating........................................ 1,011 1,395 2,349 2,585
General and administrative............................... 1,431 1,655 2,961 2,364
------- ------- -------- -------
Total expenses................................. 31,692 29,305 63,380 54,182
------- ------- -------- -------
Income From Operations Before Gain on Sale of Assets and
Minority Interests..................................... 4,501 2,059 8,979 4,351
Gain on Sale of Assets................................... -- -- 20,575 --
Minority interests -- Operating Partnership.............. (40) (421) (4,129) (864)
Minority interests -- Other.............................. (73) (68) (145) (137)
------- ------- -------- -------
Net Income before Extraordinary Loss..................... 4,388 1,570 25,280 3,350
Extraordinary Loss -- Early Extinguishment of Debt....... (4,048) -- (4,048) --
------- ------- -------- -------
Net Income............................................... 340 1,570 21,232 3,350
Adjustments to reconcile net income to FFO:
Depreciation of real property.......................... 6,067 5,876 12,060 11,224
Minority Interests..................................... (45) 347 3,964 714
Extraordinary Loss -- Early Extinguishment of Debt..... 4,048 -- 4,048 --
Gain on Sale of Assets................................. -- -- (20,575) --
Other.................................................. 253 414 636 439
------- ------- -------- -------
Funds From Operations -- Basic........................... 10,663 8,207 21,365 15,727
Adjustments to reconcile Basic to Diluted FFO:
Debenture interest..................................... 3,125 3,142 6,267 6,284
Amortization of Deferred costs -- Debentures........... 323 325 648 650
------- ------- -------- -------
Funds From Operations -- Diluted(1)...................... $14,111 $11,674 $ 28,280 $22,661
======= ======= ======== =======
</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.
22
<PAGE> 20
CENTER TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
----------- ------------
(UNAUDITED)
<S> <C> <C>
Rental Properties........................................... $1,067,606 $1,074,629
Accumulated depreciation and amortization................... (144,150) (141,785)
---------- ----------
Rental properties, net.................................... 923,456 932,844
Cash and cash equivalents................................... 10,251 6,636
Tenant receivables, net..................................... 11,010 13,543
Other Receivables........................................... 4,104 7,984
Restricted cash and securities.............................. 15,683 5,437
Deferred charges, net....................................... 20,981 18,682
Other assets................................................ 1,784 1,895
---------- ----------
Total.................................................. $ 987,269 $ 987,021
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Secured debt................................................ $ 541,974 $ 497,386
7 1/2% Convertible subordinated debentures.................. 128,548 138,599
7 1/4% Exchangeable subordinated debentures................. 30,000 30,000
Accrued distributions....................................... 10,068 10,931
Accrued interest............................................ 5,388 5,873
Accounts payable and other accrued expenses................. 6,841 6,718
Accrued construction costs.................................. 1,631 1,955
Tenant security and other deposits.......................... 5,956 5,957
---------- ----------
Total liabilities...................................... 730,406 697,419
---------- ----------
MINORITY INTERESTS
Operating Partnership (1,836,623 and 4,978,240 units issued
as of June 30, 1999 and December 31, 1998,
respectively)............................................. 16,722 47,717
Other minorities............................................ 1,440 1,514
---------- ----------
Total minority interest................................ 18,162 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;
26,113,225 and 24,756,693 shares issued and outstanding as
of June 30, 1999 and December 31, 1998, respectively)..... 261 248
Additional paid-in capital.................................. 359,467 354,281
Accumulated distributions and deficit....................... (121,027) (124,061)
---------- ----------
Total stockholders' equity............................. 238,701 230,468
---------- ----------
Total.................................................. $ 987,269 $ 987,021
========== ==========
</TABLE>
23
<PAGE> 21
CENTER TRUST, INC.
SUMMARY OF OUTSTANDING DEBT
JUNE 30, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
MATURITY BALANCE BALANCE
LENDER PROPERTY RATE DATE JUNE 30, 1999 DECEMBER 31, 1998
------ -------- --------------- -------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
Mortgage Loans
First Union National Bank............ Covina, Randolph Plaza LIBOR+2.5% 06/01/02 $ 58,431 --
Fairwood & Mountain
Square
First Union National Bank............ Gardena, Gresham, 7.750% 07/01/09 51,963 --
Loma Square &
Southpointe
Nomura Asset Capital
Corporation(1)...................... Tranche B 9.000% 04/01/10 33,104 $ 33,236
Eastrich #79 Corporation (AEW)(2).... Loan #1 11.450% 10/15/06 29,017 29,607
Teachers............................. Pavilions 7.440% 08/01/06 24,285 24,498
Nomura Asset Capital
Corporation(1)...................... Tranche A 8.938% 04/01/05 22,287 22,377
The Travelers Insurance Company...... North County 10.375% 01/31/03 15,734 15,890
DLJ Mortgage Acceptance Corp......... Charleston 8.050% 01/01/06 15,310 15,415
Eastrich #79 Corporation (AEW)(3).... Loan #2 10.900% 10/15/06 9,351 9,538
Metropolitan Life Insurance
Company............................. Date Palm 10.450% 07/31/02 9,324 9,391
Principal Mutual Life Insurance
Company............................. North Mountain Village 8.250% 05/01/01 8,208 8,234
Massachusetts Mutual Life Insurance
Company............................. Fire Mountain 10.250% 10/01/99(9) 7,330 7,383
The Travelers Insurance Company...... Glendora 9.500% 10/01/99 6,030 6,058
Aid Association for Lutherans........ Westgate North 8.300% 04/01/14 5,958 6,066
Column Financial, Inc................ Mineral King 9.680% 08/01/06 3,718 3,761
Metropolitan Life Insurance
Company............................. Escondido 9.300% 11/01/99 2,665 2,686
Aetna Life Insurance Company......... Covina 9.600% 09/01/04 -- 17,807
The Prudential Insurance Company of
America............................. Loma Square 9.310% 08/15/99 -- 18,881
Sun Life Assurance Company of
Canada.............................. Fairwood 8.375% 02/01/04 -- 7,458
Aid Association for Lutherans........ Gardena 10.050% 02/15/02 -- 6,641
Connecticut General Life Insurance
Company............................. Gresham 7.500% 05/01/99 -- 9,442
-------- --------
Total Mortgage Loans Payable...... 8.793%(4) 302,715 254,369
-------- --------
CRA -- Certificates of Participation,
Series 1985......................... Baldwin Hills 5.300% 12/01/14 30,000 30,000
CDC -- Certificates of Participation,
Series 1985......................... Willowbrook 5.200% 12/01/15 6,000 6,000
Chase Manhattan Bank(5).............. Secured Line of Credit LIBOR+1-1.375% 12/30/00 197,168 200,895
-------- --------
Total Secured debt................ 233,168 236,895
-------- --------
Convertible debentures(6)........... 7.500% 01/15/01 128,548 138,599
Exchangeable debentures(7).......... 7.250% 12/27/03 30,000 30,000
-------- --------
Total debt outstanding(8)......... $694,431 $659,863
======== ========
</TABLE>
- ---------------
(1) Secured by San Fernando Mission, Rosedale, Country Fair, Fullerton, La
Verne, and $11 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, Oracle Road and Simi Valley.
(3) Secured by Lakewood, Sam's Club -- Downey, and Parkway Place.
(4) Weighted average interest rate on mortgage debt.
(5) Secured by Media City, Montebello, Medford Shopping Center, Empire Center,
Ross Center, Pacific Linen, Vancouver Park Place, Sunrise Place, Marshalls
Plaza, Ross Plaza -- Silverdale, Covington, Vineyards Marketplace, Frontier
Village and Rheem Valley.
(6) 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.
(7) 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.
(8) Excludes $6.105 million in Community Facility District Bonds at Empire
Center.
(9) Mortgage was refinanced as of August 2, 1999.
24
<PAGE> 22
CENTER TRUST, INC.
SCHEDULE OF MORTGAGE DEBT MATURITIES
JUNE 30, 1999
<TABLE>
<CAPTION>
SCHEDULED
AMORTIZATION SCHEDULED
YEAR PAYMENTS MATURITIES TOTAL
---- ------------ ---------- --------
<S> <C> <C> <C>
1999..................................................... $ 2,422 $ 15,982(1) $ 18,404
2000..................................................... 5,071 197,168(2) 202,239
2001..................................................... 5,474 8,105 13,579
2002..................................................... 5,206 64,926 70,132
2003..................................................... 4,614 14,434 19,048
2004..................................................... 4,939 -- 4,939
2005..................................................... 4,856 20,953 25,809
2006..................................................... 3,797 59,780 63,577
2007..................................................... 1,656 -- 1,656
2008..................................................... 1,777 -- 1,777
Thereafter............................................... 4,033 110,690 114,723
------- -------- --------
Total.................................................... $43,845 $492,038 $535,883
======= ======== ========
</TABLE>
- ---------------
(1) Includes $7.3 million which was refinanced as of August 2, 1999 with a
mortgage maturing in June, 2002.
(2) Represents amount outstanding on the Company's secured credit facility which
is due on December 31, 2000.
25
