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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: December 8, 2000
(Date of earliest event reported)
Center Trust, Inc.
(exact name of registrant as specified in its charter)
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<CAPTION>
<S> <C> <C>
Maryland Commission File: 95-4444963
(State or other jurisdiction 1-12588 (I.R.S. Employer Identification No.)
of incorporation or
organization)
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3500 Sepulveda Boulevard
Manhattan Beach, California 90266
(Address of Principal executive offices, including zip code)
(310) 546-4520
(Registrant's telephone number, including area code)
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ITEM 2. DISPOSITION OF ASSETS
On November 27, 2000, the Company completed the sale of a portfolio of six
community centers to affiliates owned and controlled by Kimco Income REIT, an
affiliate of Kimco Realty Corporation. The properties sold were the following:
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Gross Leasable
Date Sold Center Name Location Area
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<S> <C> <C> <C>
September 21, 2000 Vista Balboa San Diego, California 117,000
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September 29, 2000 Charleston Plaza Las Vegas, Nevada 234,000
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October 13, 2000 Pavilions' Center Federal Way, Washington 200,000
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October 13, 2000 Covina Town Square Covina, California 360,000
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October 27, 2000 Montebello Town Center Montebello, California 250,000
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November 27, 2000 Torrance Promenade Torrance, California 267,000
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Total proceeds from the sale of the properties were $160 million, determined by
arms-length negotiations between the parties. Net proceeds from the sale, after
the assumption of $68.2 million of debt and repayment of approximately $37.6
million of debt, was $44.8 million that was used to reduce the outstanding
balance on the Company's secured credit facility. Total ammualized base rent for
the sold centers is approximately $18.9 million representing 18 percent of the
Company's total combined annualized base rent.
ITEM 7(b). FINANCIAL STATEMENTS AND EXHIBITS
Proforma statements of operations are presented for the year ended December 31,
1999 and the nine months ended September 30, 2000. The proforma statements of
operations present Center Trust, Inc. operations as if the sales above had
occurred on January 1, 1999. A proforma balance sheet as of September 30, 2000
is also presented.
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<CAPTION>
Nine Months Ended Twelve Months Ended
September 30, December 31,
2000 1999
-------------------------------------------- -----------------------------------------
Actual Sold Assets Proforma Actual Sold Assets Proforma
---------------------------------------------- ------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $103,222 $15,446 $87,776 $144,886 $20,155 $124,731
---------------------------------------------- ------------------------------------------
Expenses
Interest 44,693 9,635 35,058 54,649 9,287 45,362
Property operating costs 29,916 3,325 26,591 43,008 4,307 38,701
Depreciation and amortization 19,227 2,232 16,995 24,854 3,082 21,772
General and administrative 4,208 352 3,856 8,440 242 8,198
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Total Expenses 98,044 15,544 82,500 130,951 16,918 114,033
---------------------------------------------- ------------------------------------------
Income (loss) from operations
before other items 5,178 (98) 5,276 13,935 3,237 10,698
Net gain on the sale of rental
properties 14,197 2,502 11,695 23,991 23,991
Minority interests (1,308) (112) (1,196) (4,786) (18) (4,768)
---------------------------------------------- ------------------------------------------
Income before extraordinary item 18,067 2,292 15,775 33,140 3,219 29,921
Extraordinary loss on early
extinguishment of debt (2,453) (590) (1,863) (6,483) (2,962) (3,521)
---------------------------------------------- ------------------------------------------
Net Income $15,614 $1,702 $13,912 $26,657 $257 $26,400
============================================== ==========================================
Basic and Diluted Income Per Share:
Income before extraordinary item $0.68 $0.09 $0.59 $1.29 $0.13 $1.16
Extraordinary loss on early
extinguishment of debt (0.09) (0.02) (0.07) (0.25) (0.12) (0.13)
---------------------------------------------- ------------------------------------------
Net income $0.59 $0.07 $0.52 $1.04 $0.01 $1.03
============================================== ==========================================
Weighted Average Basic and Diluted
Shares Outstanding 26,668 26,668 26,668 25,697 25,697 25,697
============================================== ==========================================
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September 30, 2000
Actual Sold Assets Proforma
---------------------------------------------
<S> <C> <C> <C>
Assets
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Rental Properties, net $826,938 $106,452 $720,486
Cash and cash equivalents 12,050 12,050
Tenant receivables, net 14,969 1,851 13,118
Other receivables 7,085 132 6,953
Restricted cash 26,467 1,154 25,313
Other assets 23,223 1,908 21,315
--------------------------------------------
Total assets $910,732 $111,497 $799,235
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Liabilities
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Debt $642,755 $150,603 $492,152
Accounts payable and other liabilities 9,608 1,582 8,026
Other liabilities 15,984 551 15,433
--------------------------------------------
Total liabilities 668,347 152,736 515,611
Minority interests 16,076 (2,549) 18,625
Stockholders' Equity 226,309 (38,690) 264,999
--------------------------------------------
Total liabilities and stockholders' equity $910,732 $111,497 $799,235
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Item 7(c). FINANCIAL STATEMENTS AND EXHBITS
The following exhibits are included as part of this Form 8-K as required by
Regulation S-K.
Exhibit Exhibit Description
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2.1 Agreement for Purchase and Sale of CT Operating Partnership,
L.P., A California Limited Partnership; Selected Portfolio
July 12, 2000
2.2 Amendment to Contract of Sale
2.3 Second Amendment to Contract of Sale
2.4 Third Amendment to Contract of Sale
2.5 Fourth Amendment to Contract of Sale
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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 hereunto duly authorized,
Center Trust, Inc.
Date: December 8, 2000 /s/ Edward A. Stokx
---------------------------------------
Name: Edward A. Stokx
Title: Senior Vice President of Finance
(Principal Accounting Officer)
