UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 1996
Commission File Number 1-12784
AMLI RESIDENTIAL PROPERTIES TRUST
(Exact name of registrant as specified in its charter)
Maryland 36-3925916
(State of Organization) (I.R.S. Employer Identification No.)
125 South Wacker Drive, Suite 3100,
Chicago, Illinois 60606
(Address of principal executive office) (Zip code)
Registrant's telephone number, including area code: (312) 984-5037
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to such
filing requirements for the past 90 days. Yes ( X ) No ( )
The number of the Registrant's Common Shares of Beneficial Interest
outstanding was 11,797,738 as of September 30, 1996.
1
INDEX
PART I: FINANCIAL INFORMATION
Item 1: Financial Statements (Unaudited)
Consolidated Balance Sheets as of
September 30, 1996 and December 31, 1995. . . . . 3
Consolidated Statements of Operations for
the three months and the nine months ended
September 30, 1996 and 1995 . . . . . . . . . . . 5
Consolidated Statements of Cash Flows for
the nine months ended September 30,
1996 and 1995 . . . . . . . . . . . . . . . . . . 7
Notes to Consolidated Financial Statements. . . . . 9
Item 2: Management's Discussion and
Analysis of Financial Condition and
Results of Operations . . . . . . . . . . . . . . 25
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . 34
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
(Dollars in thousands, except per share data)
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1996 1995
-------------- ------------
<S> <C> <C>
ASSETS:
Rental apartments:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 59,854 58,643
Depreciable property. . . . . . . . . . . . . . . . . . . . . . . . . . . 372,317 361,011
---------- ----------
432,171 419,654
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . (47,511) (39,157)
---------- ----------
384,660 380,497
Property under development. . . . . . . . . . . . . . . . . . . . . . . . . 43,344 23,211
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . . . 28,438 12,255
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . 3,643 2,279
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,775 1,880
Deferred expenses, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,339 5,415
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,949 7,690
---------- ----------
Total Assets $ 474,148 433,227
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Debt (note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 233,567 215,255
Accrued interest payable. . . . . . . . . . . . . . . . . . . . . . . . . . 1,273 1,230
Accrued real estate taxes payable . . . . . . . . . . . . . . . . . . . . . 6,974 6,471
Security deposits and prepaid rents . . . . . . . . . . . . . . . . . . . . 2,369 2,439
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,268 2,592
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . 248,451 227,987
---------- ----------
3
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS - CONTINUED
SEPTEMBER 30, DECEMBER 31,
1996 1995
-------------- ------------
Commitments and contingencies
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,409 39,077
---------- ----------
SHAREHOLDERS' EQUITY:
Preferred shares of beneficial interest, $.01 par value,
1,500,000 authorized, 1,200,000 issued and
1,100,000 outstanding at September 30, 1996 . . . . . . . . . . . . . . . 11 --
Shares of beneficial interest, $.01 par value, 148,500,000
authorized, 11,797,738 and 11,681,659 common shares issued
and outstanding, respectively . . . . . . . . . . . . . . . . . . . . . . 118 117
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . 242,487 218,752
Retained earnings (deficit) . . . . . . . . . . . . . . . . . . . . . . . . (10,094) (20,705)
Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,234) (32,001)
---------- ----------
Total shareholders' equity 184,288 166,163
---------- ----------
Total Liabilities and Shareholders' Equity $ 474,148 433,227
========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
4
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
(Dollars in thousands, except per share data)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- --------------------------
1996 1995 1996 1995
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Revenues:
Property:
Rental. . . . . . . . . . . . . . . . . . . . . $ 18,223 17,488 53,420 52,057
Other . . . . . . . . . . . . . . . . . . . . . 902 763 2,427 2,094
Interest and share of income from
Service Companies. . . . . . . . . . . . . . . . 105 114 182 382
Other interest. . . . . . . . . . . . . . . . . . 127 146 392 308
Other . . . . . . . . . . . . . . . . . . . . . . 715 150 1,596 572
-------- -------- -------- --------
Total revenues. . . . . . . . . . . . . . 20,072 18,661 58,017 55,413
-------- -------- -------- --------
Expenses:
Personnel . . . . . . . . . . . . . . . . . . . . 1,704 1,421 5,025 4,192
Advertising and promotion . . . . . . . . . . . . 519 603 1,469 1,604
Utilities . . . . . . . . . . . . . . . . . . . . 1,165 1,092 3,232 3,079
Building repairs and maintenance and
maintenance services . . . . . . . . . . . . . . 1,344 1,269 3,641 3,331
Landscaping and grounds maintenance . . . . . . . 436 434 1,291 1,402
Real estate taxes . . . . . . . . . . . . . . . . 2,136 1,998 6,429 6,141
Insurance . . . . . . . . . . . . . . . . . . . . 251 230 738 696
Property management fees. . . . . . . . . . . . . 478 455 1,396 1,353
Other operating expenses. . . . . . . . . . . . . 303 308 904 820
Interest. . . . . . . . . . . . . . . . . . . . . 3,167 3,164 8,981 9,844
Amortization of deferred costs. . . . . . . . . . 253 450 1,104 1,342
Depreciation . . . . . . . . . . . . . . . . . . 2,959 2,749 8,354 8,218
General and administrative. . . . . . . . . . . . 575 446 1,703 1,446
Expenses associated with the AMLI brand name. . . -- 58 -- 680
-------- -------- -------- --------
Total expenses. . . . . . . . . . . . . . 15,290 14,677 44,267 44,148
-------- -------- -------- --------
5
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- --------------------------
1996 1995 1996 1995
----------- ---------- ----------- ----------
Income before non-recurring gains, minority
interest and extraordinary item . . . . . . . . . 4,782 3,984 13,750 11,265
Gain on sale of residential property. . . . . . . . -- 1,514 -- 1,514
Non-recurring gain. . . . . . . . . . . . . . . . . -- -- 584 --
-------- -------- -------- --------
Income before minority interest and
extraordinary item . . . . . . . . . . . . . . . 4,782 5,498 14,334 12,779
Minority interest . . . . . . . . . . . . . . . . . 878 1,051 2,605 2,481
-------- -------- -------- --------
Income before extraordinary item. . . . . 3,904 4,447 11,729 10,298
Extraordinary item -
loss on early extinguishment of debt (net of
minority interest). . . . . . . . . . . . . . . . -- -- 1,118 --
-------- -------- -------- --------
Net income . . . . . . . . . . . . . . . 3,904 4,447 10,611 10,298
Less income attributable to Series A
preferred shares. . . . . . . . . . . . . . . . . 473 -- 1,273 --
-------- -------- -------- --------
Net income attributable to common shares. $ 3,431 4,447 9,338 10,298
======== ======== ======== ========
Income per common share:
Before extraordinary item . . . . . . . . . . . . $ .28 .38 .88 .88
Extraordinary item. . . . . . . . . . . . . . . . $ -- -- (.09) --
Net income per common share . . . . . . . . . . . $ .28 .38 .79 .88
Dividends declared and paid per common share. . . . $ .43 .43 1.29 1.28
========= ======== ======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
6
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(UNAUDITED)
(Dollars in thousands)
<CAPTION>
1996 1995
--------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,611 10,298
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,354 8,218
Amortization of deferred costs. . . . . . . . . . . . . . . . . . . . . . . 1,104 1,342
(Income) loss from partnerships . . . . . . . . . . . . . . . . . . . . . . (383) 7
Loss (income) from service companies. . . . . . . . . . . . . . . . . . . . 159 (40)
Gain on sale of residential property. . . . . . . . . . . . . . . . . . . . -- (1,514)
Non-recurring gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (584) --
Loss on early extinguishment of debt. . . . . . . . . . . . . . . . . . . . 1,365 --
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,357 2,481
Changes in assets and liabilities:
Increase in deferred costs. . . . . . . . . . . . . . . . . . . . . . . . . (11) (307)
Decrease in security deposits . . . . . . . . . . . . . . . . . . . . . . . 105 143
(Increase) decrease in other assets . . . . . . . . . . . . . . . . . . . . (616) 604
Increase in accrued interest payable. . . . . . . . . . . . . . . . . . . . 43 22
Increase in accrued real estate taxes . . . . . . . . . . . . . . . . . . . 552 403
Decrease in tenant security deposits and prepaid rents. . . . . . . . . . . (70) (279)
Increase in other liabilities . . . . . . . . . . . . . . . . . . . . . . . 613 502
-------- -------
Net cash provided by operating activities . . . . . . . . . . . . . . 23,599 21,880
-------- -------
Cash flows for investing activities:
Net cash proceeds from sale of residential property . . . . . . . . . . . . . -- 29,599
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . . . . (14,887) (3,049)
Cash distributions from partnerships. . . . . . . . . . . . . . . . . . . . . 1,111 248
Advances to affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,110) (4,459)
Earnest money deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 (110)
Capital expenditures - existing properties. . . . . . . . . . . . . . . . . . (1,181) (1,289)
Acquisition properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (834)
Properties under development, net of reimbursable
co-investors' costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,518) (18,017)
Increase in construction costs payable. . . . . . . . . . . . . . . . . . . . 1,063 778
-------- -------
Net cash provided by (used in) investing activities . . . . . . . . . (42,197) 2,867
-------- -------
7
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
1996 1995
-------- --------
Cash flows from financing activities:
Debt proceeds, net of financing costs . . . . . . . . . . . . . . . . . . . . 142,022 57,189
Debt repayments, including prepayment penalties . . . . . . . . . . . . . . . (128,867) (64,590)
Proceeds from preferred shares offering, net of issuance costs. . . . . . . . 23,918 --
Net proceeds from treasury lock contracts . . . . . . . . . . . . . . . . . . 1,424 --
Net proceeds from sale of interest rate cap contracts . . . . . . . . . . . . 1,310 --
Distributions to minority interest. . . . . . . . . . . . . . . . . . . . . . (3,612) (3,593)
Dividends paid on common shares . . . . . . . . . . . . . . . . . . . . . . . (15,168) (14,873)
Dividends paid on preferred shares. . . . . . . . . . . . . . . . . . . . . . (1,065) --
-------- -------
Net cash provided by (used in) financing activities . . . . . . . . . 19,962 (25,867)
-------- -------
Net increase (decrease) in cash and cash equivalents. . . . . . . . . . . . . . 1,364 (1,120)
Cash and cash equivalents at beginning of period. . . . . . . . . . . . . . . . 2,279 4,010
-------- -------
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . . . . . $ 3,643 2,890
======== =======
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest, net of amounts capitalized . . . . $ 8,938 9,822
======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
8
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND 1995
(Unaudited)
(Dollars in thousands, except per share data)
1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Amli Residential Properties Trust (the "Company") commenced
operations upon the completion of its initial public offering on February
15, 1994. In the opinion of management, all adjustments, which include
only normal recurring adjustments necessary to present fairly the financial
position at September 30, 1996 and December 31, 1995 and the results of
operations and cash flows for the periods presented, have been made.
Certain information and note disclosures normally included in the
Company's annual financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. These
consolidated financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's December
31, 1995 Annual Report on Form 10-K filed with the Securities and Exchange
Commission. The results for the nine months ended September 30, 1996 are
not necessarily indicative of expected results for the entire year.
The consolidated financial statements include the accounts of the
Company and Amli Residential Properties, L. P. (the "Operating Partnership"
which holds the operating assets of the Company). The Company is the sole
general partner and owns an 81.6% majority interest in the Operating
Partnership. The limited partners hold Operating Partnership units ("OP
Units") which are convertible into shares of the Company on a one-for-one
basis, subject to certain limitations.
On January 30, 1996, the Company completed the sale of 1,200,000
newly issued Series A convertible preferred shares, $.01 par value, for
$24,000 in a registered offering. The price per share of $20 was the price
of the Company's common shares on January 15, 1996. The Company sold the
preferred shares directly to four institutional investors and Amli Realty
Co. ("Amli") without the use of a placement agent or underwriter. The
proceeds from the sale of these preferred shares, less $82 of transaction
costs, were used to reduce the Company's debt, fund development costs and
for general corporate purposes.
The preferred shares pay a dividend equal to $1.72 per share on an
annual basis or the dividend amount paid on common shares, whichever is
higher. The preferred shares are perpetual and generally have no voting
rights except in certain limited circumstances. The preferred shares may
be converted on a share-for-share basis into common shares at any time at a
conversion price that shall be adjusted from time to time. After January
30, 2001, the Company may redeem the preferred shares at its option for
cash or common shares. The Company may redeem the preferred shares for
common shares only when the price of the common shares equals or exceeds
the conversion price for 20 of the 30 days preceding the date of redemption
notice. The preferred shares and the common shares into which the
preferred shares may be converted have been registered under the Company's
existing shelf registration.
9
On March 6, 1996 Amli converted its 100,000 Series A convertible
preferred shares into common shares.
On February 26, 1996, the Operating Partnership issued 26,182 OP
Units in addition to $3,500 in cash for the acquisition of a land parcel in
Aurora, Illinois. Construction of a 272-unit apartment community on this
site is currently underway. On September 30, 1996, the Company contributed
this land parcel into a co-investment partnership in which it has a 25%
ownership interest.
On May 6, 1996, the Operating Partnership issued 143,500 OP Units in
exchange for the contribution of 24 acres of land by an unrelated party.
The Company filed a registration statement to provide its new investor with
the opportunity to acquire registered shares. The Company commenced
construction on a 312-unit apartment community on this site.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Real Estate Assets and Depreciation
Real estate assets are stated at cost less accumulated depreciation.
Ordinary repairs and maintenance are expensed as incurred; replacements
having an estimated useful life of at least one year and betterments are
capitalized and depreciated over their estimated useful lives.
Depreciation is computed on a straight-line basis over useful lives of the
properties (buildings and related land improvements -- 40 years; furniture,
fixtures and equipment -- 5 - 15 years). Substantially all real estate
assets are pledged to secure debt (see note 5).
In conjunction with acquisitions of existing properties, it is the
Company's policy to provide in its acquisition budgets adequate funds to
complete any deferred maintenance items and to otherwise make the
properties acquired competitive with comparable newly-constructed
properties. In some cases the Company will provide in its acquisition
budget additional funds to upgrade or otherwise improve new acquisitions.
Losses in carrying values of investment assets are provided by
management when the losses become apparent and the investment asset is
considered impaired. Management evaluates its investment properties at
least quarterly to assess whether any impairment indications are present,
comparing undiscounted future cash flows with the carrying amount of the
asset. If any investment asset is considered impaired, a loss is provided
to reduce the carrying value of the property to its estimated value.
Management believes that no assets are impaired; therefore, no such losses
have been required to be recognized or provided in the accompanying
financial statements.
Properties Under Development
At September 30, 1996, the Company's properties under development
include parcels of land in the development planning stage on which physical
construction will commence later this year or in 1997. Properties
currently under development are as follows:
10
<TABLE>
<CAPTION>
NUMBER NUMBER TOTAL
OF OF INCURRED
PROPERTY LOCATION ACRES UNITS THRU 9/30/96
-------- -------- ------- ------- ------------
<S> <C> <C> <C> <C>
Wholly Owned:
AMLI at Autumn Chase III Carrollton, TX 24 240 $ 1,787
AMLI at Gleneagles II Dallas, TX 12 264 11,932
AMLI on the Parkway (1) Dallas, TX 10 234 1,383
AMLI at Wells Branch (1) Austin, TX 29 576 3,625
AMLI at Crown Colony II Topeka, KS 4 64 1,094
AMLI at Regents Center III Overland Park, KS 16 124 5,419
Vinings Square (2) Overland Park, KS 14 156 5,605
AMLI at Northwinds (1) Atlanta, GA 78 800 8,120
AMLI at Peachtree City (1) Fayette County, GA 24 312 4,379
--- ----- -------
Total Wholly Owned 211 2,770 $43,344
=== ===== =======
Co-Investments (Company Ownership Percentage):
AMLI at Barrett Lakes (35%) Cobb County, GA 54 446 $10,848
AMLI at Pleasant Hill (40%) Gwinnett County, GA 45 502 25,676
AMLI at River Park (40%) (3) Fulton County, GA 23 222 7,497
AMLI at Aurora Crossing (25%) (4) Aurora, IL 18 272 7,885
AMLI at Fossil Creek (25%) (4) Ft. Worth, TX 19 384 2,654
--- ----- -------
Total Co-investments 159 1,826 $54,560
=== ===== =======
<FN>
(1) It is the Company's intention to develop these land parcels in partnership with one or more
institutional investors.
(2) The construction and development of this property is financed entirely by the Company and is accounted
for as an acquisition, development and construction loan and all costs are included in the Company's financial
statements.
(3) AMLI at River Park was conveyed at cost to a 40%-owned co-investment venture in June 1996.
(4) AMLI at Aurora Crossing and AMLI at Fossil Creek were conveyed to 25% owned co-investment ventures in
September 1996.
</TABLE>
11
Interest and Real Estate Tax Capitalization
Interest and real estate taxes incurred during the construction period
are capitalized and depreciated over the lives of the constructed assets.
During the nine months ended September 30, 1996 and 1995 total interest
capitalized was $2,265 and $1,214, respectively. Net of amounts
capitalized, total interest incurred during the nine months ended September
30, 1996 and 1995 aggregated $8,981 and $9,844, respectively.
Deferred Expenses
Deferred costs consist primarily of financing costs which are amortized
using the straight-line method over the terms of the related debt.
Amortization of deferred costs relating to properties under development are
capitalized during the construction period, and depreciated over the lives
of the constructed assets. Deferred expenses at September 30, 1996 include
$186 in unamortized cost of interest rate cap contracts which limit the
Company's exposure to increasing rates through various dates in 1997 and
1998. Amounts paid for purchased interest rate cap agreements are
amortized over the terms of the related cap contracts.
In December 1995 the Company initiated a program of buying and rolling
Treasury Locks as a means of limiting its exposure to rising interest rates
in anticipation of funding a new $43,907 loan through FNMA. Through May 6,
1996 (the date on which the FNMA certificates were sold), the Company
received net cash of $1,525 from the above described activities. These net
proceeds are included as a reduction of deferred costs and are being
amortized over the ten-year term of the FNMA loan. The FNMA certificates
were sold at a discount of $673; this discount was netted against the
liability and is being amortized over the ten-year loan term.
On June 11, 1996 the Company replaced the Lehman Whole loan with new
fixed rate loans. Concurrently, the Company sold the $54,835 interest rate
cap contract which pertained to the Lehman Whole loan. The sale was
completed on June 13, 1996 and the Company received net proceeds of $1,310.
The unamortized deferred costs related to the LIBOR cap were written off
and a non-recurring net gain of $584 was recognized.
Interest Rate Limitation Contracts
The Company uses interest rate caps and swaps to limit its exposure to
increases in interest rates on its floating rate debt. The Company does
not use them for trading purposes.
At September 30, 1996, the Company was a party to various interest rate
cap agreements which entitle the Company to receive from counterparties on
a monthly basis the amounts, if any, by which the Company's interest
payments on certain floating rate debt exceed capped amounts.
The following summarizes payments received pursuant to interest rate cap
and swap contracts and the estimated remaining value of such contracts at
September 30, 1996.
12
<TABLE>
<CAPTION>
CUMULATIVE
REMAINING CASH
NOTIONAL MAXIMUM TYPE OF CONTRACT ORIGINAL UNAMORTIZED PAYMENTS APPROXIMATE
AMOUNT RATE CONTRACT MATURITY COST COSTS RECEIVED VALUE
- -------- ------- -------- ---------- --------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$54,835 3.875% LIBOR Cap (1) $2,949 -- 4,216 --
15,000 3.875% LIBOR Cap (2) 806 -- 1,473 --
15,000 7.5% LIBOR Cap 4/1/97 160 -- -- --
5,845 3.875% LIBOR Cap 2/15/98 314 108 233 157
31,250 3.0% Tax-Exempt Cap 2/15/97 621 78 419 109
12,400 6.47% (all-in) Swap 2/15/97 -- -- 188 26
14,000 6.65% Swap 2/24/97 -- -- 23 28
------ ---- ----- ----
$4,850 186 6,552 320
====== ==== ===== ====
<FN>
(1) Sold in June 1996 for net proceeds of $1,310.
(2) Sold in August 1995 for net proceeds of $1,450.
</TABLE>
13
Other Assets
At September 30, 1996 other assets consist primarily of $3,500 in 13%
interest-only notes receivable from the Service Companies due in 2004,
$4,246 in other current receivables from the Service Companies and
affiliates, $760 in real estate tax escrow deposits and $550 in restricted
cash.
Per Share Data
Earnings per common share are computed based on 11,780,934 and
11,620,375 weighted average number of common shares outstanding during the
nine months ended September 30, 1996 and 1995 and 11,796,951 and 11,666,854
weighted average number of common shares outstanding during the three
months ended September 30, 1996 and 1995 and after giving effect to
earnings allocated to the Company's preferred shares. The conversion of
the convertible preferred shares and the assumed exercise of outstanding
share options are not considered in the computation as they did not have a
material effect.
Reclassifications
Certain amounts in the consolidated 1995 financial statements of the
Company have been reclassified to conform with the current presentation.
3. INVESTMENTS IN PARTNERSHIPS AND SERVICE COMPANIES
Investments in Partnerships
At September 30, 1996, the Company, as general partner, owns co-
investment partnership interests in Amli Foundation Co-Investors, L.P.
("Foundation"); Amli Foundation Co-Investors-II, L.P. ("Foundation II");
Amli at Champions, L.P. ("Champions"); Amli at Windbrooke, L.P.
("Windbrooke"); Amli at Willeo Creek, L.P. ("Willeo Creek"); Amli at Chevy
Chase L.P. ("Chevy Chase"); Amli at Willowbrook, L.P. ("Willowbrook");
Pleasant Hill Joint Venture ("Pleasant Hill"); Barrett Lakes Limited
Liability Company ("Barrett"); Amli at River Exchange Limited Liability
Company ("River Exchange"); Acquiport/Aurora Crossing, L.P. ("Aurora
Crossing"); and Acquiport/Fossil Creek, L.P. ("Fossil Creek"); and a
nominal interest in the GP Properties. These co-investment partnerships
are accounted for using the equity method.
14
<TABLE>
Investments in partnerships at September 30, 1996 and the Company's share of income or loss for the nine
months ended September 30, 1996 from each (excluding the GP Properties) are summarized as follows:
<CAPTION>
EQUITY (DEFICIT) TOTAL COMPANY'S
------------------ NET SHARE OF
PROPERTY (COMPANY'S TOTAL COMPANY'S COMPANY'S INCOME NET INCOME
PARTNERSHIP OWNERSHIP PERCENTAGE) ASSETS TOTAL SHARE INVESTMENT (LOSS) (LOSS)
- ----------- --------------------- ------- ------- --------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Foundation AMLI at Park Place (25%) $20,033 6,809 1,702 1,665 412 104
Foundation II AMLI at Greenwood Forest (15%) 17,612 5,494 824 805 (242) (36)
Champions AMLI at Champions Park (15%) 12,652 3,198 480 480 (157) (23)
Champions AMLI at Champions Centre (15%) 9,961 2,893 434 434 (116) (10)
Windbrooke AMLI at Windbrooke (15%) 17,646 5,766 865 865 (49) (7)
Willeo Creek AMLI at Willeo Creek (30%) 15,794 5,300 1,590 1,590 45 13
Chevy Chase AMLI at Chevy Chase (33%) 45,975 15,431 5,092 5,092 137 45
Pleasant Hill AMLI at Pleasant Hill (40%) 25,848 11,963 5,082 4,844 485 186
Barrett AMLI at Barrett Lakes (35%) 10,931 8,243 2,885 3,008 -- --
Willowbrook AMLI at Willowbrook (40%) 37,051 11,548 4,619 4,619 201 81
River Exchange AMLI at River Park (40%) 7,596 6,141 2,457 2,505 -- --
Aurora
Crossing AMLI at Aurora Crossing (25%) 7,890 7,400 1,850 1,857 -- --
Fossil Creek AMLI at Fossil Creek (25%) 2,684 2,670 668 674 -- --
======= ====== ------- ------ ===== ---
$28,548 28,438 353
======= ====== ===
</TABLE>
15
<TABLE>
The fixed-rate debt financing which has been obtained from various insurance companies on behalf of these co-
investment partnerships is summarized below:
<CAPTION>
TOTAL OUTSTANDING INTEREST
PROPERTY COMMITMENT AT 9/30/96 RATE MATURITY
---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
AMLI at Park Place $13,000 12,672 8.21% 10/5/99
AMLI at Greenwood Forest 11,625 11,625 8.95% 5/10/02
AMLI at Champions Park 9,500 9,119 7.26% 12/5/97
AMLI at Champions Centre 6,700 6,700 8.93% 1/1/02
AMLI at Windbrooke 11,500 11,500 9.24% 2/1/02
AMLI at Willeo Creek 10,000 10,000 6.77% 5/1/03
AMLI at Chevy Chase 29,767 29,767 6.67% 4/1/03
AMLI at Pleasant Hill 15,500 12,627 9.15% 3/1/07
AMLI at Barrett Lakes 16,680 1 8.50% 12/1/09
AMLI at Willowbrook 24,500 24,500 7.785% 5/1/03
AMLI at River Park 9,100 -- 7.75% 6/27/08
<FN>
Certain of these loans provide for monthly payments of principal and interest based on a 25 or 27 year
amortization schedule and a balloon payment at maturity. Loans against newly-completed properties provide for
payments of interest only for an initial period, with principal amortization commencing generally within two years
of completion of construction and initial lease-up.
</TABLE>
16
<TABLE>
Investments in partnerships at December 31, 1995 and the Company's 1995 share of income or loss from each
(excluding the GP Properties from which the Company received distributions and recorded income of $2) are
summarized as follows:
<CAPTION>
EQUITY (DEFICIT) TOTAL COMPANY'S
------------------ NET SHARE OF
PROPERTY (COMPANY'S TOTAL COMPANY'S COMPANY'S INCOME NET INCOME
PARTNERSHIP OWNERSHIP PERCENTAGE) ASSETS TOTAL SHARE INVESTMENT (LOSS) (LOSS)
- ----------- --------------------- ------- ------- --------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Foundation AMLI at Park Place (25%) $20,658 7,116 1,780 1,742 354 90
Foundation II AMLI at Greenwood Forest (15%) 18,086 5,946 892 872 (226) (33)
Champions AMLI at Champions Park (15%) 13,032 3,355 503 503 (273) (41)
Champions AMLI at Champions Centre (15%) 10,158 3,009 451 443 (398) (60)
Windbrooke AMLI at Windbrooke (15%) 18,174 6,190 928 928 (38) (6)
Willeo Creek AMLI at Willeo Creek (30%) 15,829 5,630 1,689 1,692 (7) -
Pleasant Hill AMLI at Pleasant Hill (40%) 21,215 12,012 5,122 4,869 207 82
Barrett AMLI at Barrett Lakes (35%) 4,013 3,406 1,192 1,206 - -
======= ====== ------- ------ ==== ----
$12,557 12,255 32
======= ====== ====
</TABLE>
17
Investments in Service Companies
In connection with its initial public offering (June 1994 in the case
of Amli Residential Construction, Inc. "ARCI"), the Company obtained 5% of
the voting common stock and 100% of the nonvoting preferred stock in the
Service Companies, which provide property management, construction,
landscaping, investment advisory and asset management services to the
Company and to certain other parties. The nonvoting preferred stock
entitles the Company to approximately 95% of all cash distributions from
the Service Companies. The Company accounts for its investments in the
Service Companies using the equity method of accounting.
Summarized combined financial information of the various Service
Companies at and for the nine months ended September 30, 1996 and 1995
follows:
1996 1995
------- -------
Income (1) $ 4,415 2,939
General and adminis-
trative expenses (3,442) (2,469)
------- -------
973 470
Interest (589) (430)
Depreciation (213) (62)
Income taxes (66) (20)
------- -------
Net income (loss)(2) $ 105 (42)
======= =======
Total assets $11,976 7,211
======= =======
(1) Net of construction and landscaping costs.
(2) The Company's proportionate share of the net income or loss
of the Service Companies includes an elimination of intercompany profit
related to construction services provided by ARCI.
Interest expense of the Service Companies relates primarily to the 13%
notes payable by Amli Management Company and Amli Institutional Advisors,
Inc. to the Company and to working capital advances made to Amrescon, Inc.
4. RELATED PARTY TRANSACTIONS
General and administrative expenses as included in the accompanying
consolidated statements of operations include allocations of costs to the
Company from Amli and its affiliates. Such allocations are not in excess
of Amli's cost of providing services to the Company, including personnel,
occupancy and other corporate overhead. The Company and the Service
Companies have agreed to pay for a share of Amli's total occupancy cost.
During the nine months ended September 30, 1996 and 1995 the Company
accrued or paid to the Service Companies fees and other costs and expenses
as follows:
1996 1995
------ ------
Management fees $1,396 1,353
General contractor fees 422 180
Interest expense 23 23
Landscaping and ground maintenance 462 445
====== =====
18
During the nine months ended September 30, 1996 and 1995 the Company
earned or received from the Service Companies other income as follows:
1996 1995
---- ----
Interest on notes receivable $341 341
Interest on advances 243 100
==== ===
During the nine months ended September 30, 1996 and 1995 the Company
earned or received from co-investment partnerships other income as follows:
1996 1995
---- ----
Development fees $494 137
Acquisition fees 184 154
Disposition fees 66 --
Asset management fees 364 167
Accounting and administrative fees 5 22
Interest on advances 20 19
==== ====
The development and acquisition fees earned from co-investment
partnerships as shown above include only the venture partners' shares of
such fees, as the Company's share of the partnership's cost is eliminated.
5. DEBT
Bond financing
AMLI at Spring Creek, an 1,180-unit apartment community in Atlanta,
Georgia secures a total of $40,750 of tax-exempt bonds. The terms of the
bonds require that a portion of the apartment units be leased to
individuals who qualify based on income levels specified by the U.S.
Government. The bonds bear interest at a variable rate; however, $31,250
of the total $40,750 has an interest rate cap contract in place against
increases in a tax-exempt index rate above 3%. The variable rate is
adjusted weekly based upon the remarketing rate for these bonds (3.6% at
October 22, 1996; 3.48% average for the nine months ended September 30,
1996). The credit enhancement for the bonds was provided by a $41,297
five-year letter of credit from Wachovia Bank which expires on October 15,
1999.
Mortgage notes payable
At September 30, 1996, the Company owes a total of $152,023 pursuant to
twelve fixed rate mortgage notes payable to nine financial institutions.
Each loan is secured by a first mortgage on the respective residential
apartment community and is non-recourse to the partners, except for a
$1,500 portion of one of the mortgage notes payable and $13,701 of another
mortgage note payable. The loans bear interest at fixed rates between 7.0%
and 9.9%, with maturities extending through May 1, 2006.
On April 29, 1996, the Company closed on a $43,907 ten-year, 7.79% loan
provided by FNMA. The loan is secured by mortgages on three properties in
Dallas, Texas. On June 11, 1996, two seven-year loans provided by CIGNA in
the aggregate amount of $42,000 at an average interest rate of 7.31% were
funded. The net proceeds of these loans were used primarily to repay the
Lehman Whole loan and the Lehman Line of Credit. The Company incurred an
extraordinary charge of $1,365 which consists of the related unamortized
deferred costs on these repaid loans plus prepayment penalties.
19
Other notes payable
Other notes payable are comprised of four floating rate loans due to
financial institutions aggregating $40,044 and $750 in another note
payable. These loans bear interest at rates of 135 to 200 basis points
over LIBOR (6.9% - 7.5% at September 30, 1996). Of the total, $12,400 is
the subject of an interest rate swap fixing the interest rate at 6.47%
through February 15, 1997 and $14,000 is subject to an interest rate swap
fixing the rate at 6.65% through February 24, 1997. In addition, $5,845 is
covered by interest rate cap for protection against increases in LIBOR
above 3.875% through February 15, 1998.
On June 16, 1996, the Wachovia Line of credit was modified to increase
the commitment amount to $60,000 and to lower the interest rate to LIBOR
plus 1.35% (LIBOR plus 1.65% on construction loans until stabilized
operations are achieved).
In April 1996, First Chicago purchased the $27,000 revolving credit and
loan facility with Citicorp Real Estate Inc. The loan was modified to
increase the commitment amount to $29,500 and to reduce the interest rate
to LIBOR plus 1.65%.
Of the aggregate $104,480 of other notes payable, $32,535 is outstanding
on the $60,000 Wachovia Line of credit; $4,000 is outstanding on the
$29,500 First Chicago facility; and $3,509 is outstanding on the $6,230
construction loan for AMLI at Regents Center Phase III. Following the
closing of the new loan from FNMA, and repayment of the Lehman Line of
Credit, $6,040 in letters of credit are outstanding on an $8,000 Line of
credit from Harris. The total $57,646 (net of $6,040 letters of credit) of
unused credit is available to fund future development, acquisition and
working capital needs. The line of credit agreements provide for customary
borrower covenants, including among other things, minimum debt service
coverage ratios and maximum loan to value ratios.
20
<TABLE>
The table below sets forth certain information relating to the indebtedness of the Company.
<CAPTION>
ORIGINAL BALANCE INTEREST MATURITY BALANCE
ENCUMBERED PROPERTIES AMOUNT AT 9/30/96 RATE DATE AT 12/31/95
- --------------------- ---------- ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
BOND FINANCING:
AMLI at Spring Creek $ 40,750 40,750 Tax-exempt 10/1/24 40,750
-------- ------- rate + 1.23%
MORTGAGE NOTES PAYABLE:
AMLI at Alvamar 5,000 4,783 9.38% 3/1/97 4,819
AMLI at the Arboretum 4,800 4,447 9.90% 9/28/97 4,504
AMLI at Gleneagles 8,500 8,177 7.70% 10/31/97 8,248
AMLI at Martha's Vineyard 7,060 6,697 7.42% 11/1/97 6,776
AMLI at Reflections 4,800 4,550 7.05% 6/30/98 4,615
AMLI on Rosemeade 7,050 6,714 7.02% 10/5/98 6,807
AMLI at Sherwood 7,320 7,034 7.75% 7/1/03 7,155
AMLI at Riverbend 31,000 30,927 7.30% 7/1/03 -
AMLI in Great Hills 11,000 10,974 7.34% 7/1/03 -
AMLI at Valley Ranch 11,500 10,950 7.625% 7/10/03 11,092
AMLI at Regents Center 20,100 13,701 (1) 9/1/05 13,776
AMLI at Beekman Place
AMLI on the Green
AMLI of North Dallas (2) 43,234 43,069 7.789% 5/1/06 -
-------- ------- -------
Total Mortgage Notes Payable 161,364 152,023 67,792
-------- ------- -------
OTHER NOTES PAYABLE:
AMLI at Vinings
AMLI at Sope Creek 60,000 32,535 L+1.35%(3) 5/31/98 32,535
-------- ------- -------
AMLI at Autumn Chase I & II
AMLI at Chase Oaks
AMLI at Gleneagles Phase II 29,500 4,000 L+1.65% 2/28/98 2,343
-------- ------- -------
21
AMLI in Great Hills (5)
AMLI at Bear Creek (4)
AMLI at Nantucket (4)
AMLI at Riverbend (5)
AMLI at West Paces (4) - - 5.76% 8/9/01 54,835
-------- ------- -------
AMLI of North Dallas (5)
AMLI at Beekman Place (5)
AMLI on Timberglen (4)
AMLI on the Green (5) - - L+1.85% 2/9/99 16,000
-------- ------- -------
AMLI at Park Sheridan 8,000 - L+1.65% 8/30/98 250
AMLI at Park Sheridan (1) 6,230 3,509 L+2.00% 10/9/96 -
Unsecured 750 750 4.00% Demand 750
-------- ------- -------
Total Other Notes Payable 104,480 40,794 106,713
-------- ------- -------
Total $306,594 233,567 215,255
======== ======= =======
<FN>
(1) $13,800 at 8.73%; $6,300 at 9.23% anticipated to be funded in November 1996.
(2) Sold at a discount of $673. At September 30, 1996, the unamortized discount amount is $645.
(3) The Company has used interest rate derivative contracts to fix the interest rate at 6.47% through February
15, 1997 on $12,400, to fix the interest rate at 6.65% through February 24, 1997 on $14,000 , and to limit the
interest rate to 5.38% through February 15, 1998 on $5,845. The rate is LIBOR + 1.65% on construction loans until
stabilized occupancy.
(4) Unencumbered as of June 30, 1996, loans were repaid in full in April and June 1996.
(5) These properties now secure new fixed rate mortgages.
</TABLE>
22
<TABLE>
As of September 30, 1996, the scheduled maturities of the Company's debt are as follows:
<CAPTION>
FIXED RATE OTHER
BOND MORTGAGE NOTES
FINANCINGS NOTES PAYABLE PAYABLE TOTAL
----------- ------------ ------- -------
<S> <C> <C> <C> <C>
1996. . . . . . . . . . . . . . . . $ -- 541 4,259 4,800
1997. . . . . . . . . . . . . . . . -- 25,936 -- 25,936
1998. . . . . . . . . . . . . . . . -- 12,813 36,535 49,348
1999. . . . . . . . . . . . . . . . -- 1,981 -- 1,981
2000. . . . . . . . . . . . . . . . -- 2,127 -- 2,127
Thereafter. . . . . . . . . . . . . 40,750 108,625 -- 149,375
------- ------- ------- -------
$40,750 152,023 40,794 233,567
======= ======= ======= =======
</TABLE>
23
6. COMMITMENTS AND CONTINGENCIES
In conjunction with the February 1996 acquisition of land for the
development of Aurora Crossing, the Company may be obliged, at the option
of the unit holder, to purchase 26,182 Operating Partnership units at the
then current market value of the Company's shares of beneficial interest.
In connection with the formation of Acquiport/Aurora Crossing, L.P.
and Acquiport/Fossil Creek, L.P., the Company has provided letters of
credit in the amounts of $1,223 and $1,187, respectively, as security for
its guarantee to fund all cost overruns (as defined), except for the cost
overruns that are required to be paid from additional capital commitments.
The letters of credit will expire on September 27, 1998.
7. SUBSEQUENT EVENTS
On October 9, 1996, the Company acquired 28.6 acres of land located
in Aurora, Illinois. The purchase price of $5,014 included $3,429 in cash,
53,140 OP Units and $485 payable in cash when the final certificates of
occupancy, on the apartment buildings that will be constructed on the site,
are received. The Company intends to develop a 464-unit apartment
community on this land. Total development costs are projected to be
approximately $45,000. Construction is anticipated to start in early 1997.
The Company intends to enter into a co-investment partnership with an
institutional investor for the development of this property.
24
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (DOLLARS IN THOUSANDS,
EXCEPT SHARE DATA)
The following discussion is based primarily on the consolidated financial
statements of Amli Residential Properties Trust (the "Company") as of
September 30, 1996 and December 31, 1995 and for the nine months ended
September 30, 1996 and 1995.
This information should be read in conjunction with the accompanying
unaudited consolidated financial statements and notes thereto. These
financial statements include all adjustments which are, in the opinion of
management, necessary to reflect a fair statement of the results for the
interim periods presented, and all such adjustments are of a normal
recurring nature.
As of September 30, 1996, the Company owned an 81.6% general partnership
interest in the Operating Partnership, which holds the operating assets of
the Company. The limited partners hold Operating Partnership units ("OP
Units") that are convertible into shares of the Company on a one-for-one
basis, subject to certain limitations. The Company has qualified, and
anticipates continuing to qualify, as a real estate investment trust
("REIT") for Federal income tax purposes.
RESULTS OF OPERATIONS
During the period from January 1, 1995 through September 30, 1996, growth
in property revenues and property operating expenses resulted from
increases at communities owned as of January 1, 1995, and from the newly-
constructed communities.
During the same period, the Company has invested in five co-investment
partnerships, which own the 236-unit AMLI at Windbrooke in Buffalo Grove,
Illinois, the 242-unit AMLI at Willeo Creek in Roswell, Georgia, the 316-
unit AMLI at Greenwood Forest in Houston, Texas, the 592-unit AMLI at Chevy
Chase in Buffalo Grove, Illinois, and the 488-unit AMLI at Willowbrook in
Willowbrook, Illinois.
For the nine months ended September 30, 1996, net income attributable to
common shares was $9,338, or $.79 per share, on total revenues of $58,017.
For the nine months ended September 30, 1995, net income was $10,298 or
$.88 per share on total revenues of $55,413.
On a "same community" basis, weighted average occupancy of the stabilized
communities decreased slightly to 94.2% for the nine months ended September
30, 1996 from 96.0% for the same period in the prior year. For the nine
months ended September 30, 1996, weighted average collected rents increased
by 4.8% to $648 from $618 per unit per month for the nine months ended
September 30, 1995.
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1996 TO NINE MONTHS ENDED
SEPTEMBER 30, 1995.
Income before non-recurring items, minority interest, and extraordinary
items increased to $13,750 for the nine months ended September 30, 1996
from $11,265 for the nine months ended September 30, 1995. This increase
in net income was primarily attributable to an $863 decrease in interest
expense and a $2,604 increase in total revenues, reduced by a $1,507
increase in property operating expenses. For the nine months ended
September 30, 1996 and 1995, net income was $10,611 and $10,298,
respectively.
Total property revenues increased by $1,696 or 3.1%. On the same community
basis total property revenues increased by $2,087 or 4.0%.
The $1,024 increase in other revenue includes a $390 increase in share of
income from co-investment ventures, a $358 increase in development fees, a
$196 increase in asset management fees, and a $96 increase in acquisition
fees.
25
Property operating expenses increased by $1,507, or 6.7%. On the same
community basis, property operating expenses increased by $1,358 or 6.2%.
Interest expense, net of the amounts capitalized, decreased from $9,844 to
$8,981, or 8.8%.
General and administrative expenses increased from $1,446 for the nine
months ended September 30, 1995 to $1,703 for the nine months ended
September 30, 1996. The increase is primarily attributable to increased
compensation and compensation-related costs.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1996 the Company had $3,643 in cash and cash equivalents
and $52,965 in availability under its two primary bank lines of credit, the
Wachovia Line, a $60,000 line of credit, and the First Chicago Line, a
$29,500 line of credit which the Company anticipates will increase by
$11,747 to $41,247 during November 1996.
At September 30, 1996 the Company had outstanding borrowings of
approximately $32,535 on the Wachovia Line which is secured by mortgages on
two wholly-owned communities in Georgia. Of the total outstanding, the
rate on $12,400 has been fixed at 6.47% per annum until February 15, 1997
and the rate on $14,000 has been fixed at 6.65% per annum through February
24, 1997 through use of interest rate swap contracts. In addition, $5,845
has an interest rate cap contract in place as protection against increases
in LIBOR above 3.875% through February 15, 1998. The Wachovia Line bears
interest at an annual rate of LIBOR plus 1.65% for borrowings secured by
communities under development and LIBOR plus 1.35% for borrowings secured
by stabilized communities. The remaining credit availability of $27,465 is
anticipated to be used to fund future working capital needs and acquisition
and development activities.
At September 30, 1996, the Company had outstanding borrowings of
approximately $4,000 on the First Chicago Line which bears interest at an
annual rate of LIBOR plus 1.65%. This facility was used to fund a portion
of the construction of the second phases of AMLI at Autumn Chase and AMLI
at Gleneagles. The remaining credit availability of $25,500 and the
expected increased availability of $11,747 on the First Chicago Line is
expected to be used by the Company to fund construction of AMLI at Autumn
Chase Phase III, future working capital needs and acquisition and
development activities.
On April 29, 1996, the Company closed on a $43,907 ten-year, 7.79% loan
provided by Fannie Mae. This loan is secured by mortgages on two
properties in Dallas, Texas. The loan proceeds, net of a .75% financing
fee and original issue discount of $673, were used to retire the Company's
then existing balance on its line of credit with Lehman Brothers Holdings,
Inc. ("Lehman") which beginning in August 1997 would carry interest at a
fixed rate of 8.35% and to reduce the balance on the First Chicago Line.
On June 11, 1996, the Company closed with CIGNA on two seven-year loans
aggregating $42,000 with an average interest rate of 7.31% per annum.
Concurrently, the Company repaid the then existing balance on the Company's
$54,835 whole loan with Lehman. As a result of the refinancings completed
by the Company in April and June as described above, the Company improved
its balance sheet, financing structure and capability as follows:
. the Company increased the weighted average annual interest rate by 0.4%
to 6.9% through August 1, 1997 and decreased the weighted average annual
interest rate by 0.2% during the four years thereafter;
. the Company increased the weighted average term of its outstanding
indebtedness to 5.3 years;
. the Company increased the percentage of debt that is fixed-rate debt to
66% from 54%;
26
. the Company wrote off expenses previously deferred in conjunction with
the repaid loans thereby decreasing its deferred expenses and amortization,
particularly for the period through August 1, 1997;
. the Company increased the number of unencumbered wholly-owned
Communities from one to five;
. the Company incurred net extraordinary or otherwise non-recurring
charges of $781, which is primarily attributable to the non-cash write-off
of deferred expenses relating to the Lehman loans.
At September 30, 1996, the Company had $13,701 outstanding balance on its
$20,100 loan provided by Teachers Insurance and Annuity Association. This
loan is secured by AMLI at Regents Center in Overland Park, Kansas. The
remaining commitment is anticipated to fund in November, 1996 upon
substantial completion of the additional 124-unit Phase III under
construction at this community.
At September 30, 1996, the $6,230 construction loan provided by Harris
Trust and Savings Bank for Phase III of AMLI at Regents Center had an
outstanding balance of $3,509. This loan was repaid in full by the Company
in October, 1996.
For the nine months ended September 30, 1996, net cash provided by
operating activities was $23,599. For the nine months ended September 30,
1995, cash provided by operating activities was $21,880. The increase was
primarily attributable to the $2,604 increase in total revenues and the
$863 decrease in interest expense, net of $1,507 increase in operating
expenses. During the second and third quarters of 1996 a total of $274 of
cash was used in operating activities for start-up losses from the initial
lease-up of the second phases of AMLI at Autumn Chase and AMLI at
Gleneagles. No start-up losses were incurred during 1995.
Cash flows used for investing activities were $42,197 for the nine months
ended September 30, 1996, and net cash flows provided by investing
activities were $2,867 for the nine months ended September 30, 1995.
Net cash flows provided by financing activities were $19,962 for the nine
months ended September 30, 1996 and net cash flows used in financing
activities were $25,867 the nine months ended September 30, 1995. Such
cash flows for the nine months ended September 30, 1996 reflected the
issuance of preferred shares of beneficial interest resulting in the net
cash proceeds of $23,918.
Funds from operations is defined as income (loss) before minority interest
of the holders of OP Units and extraordinary items (computed in accordance
with generally accepted accounting principles), excluding gains (losses)
from debt restructuring and sales of property, plus certain non-cash items,
primarily depreciation. Adjustments for unconsolidated partnerships and
joint ventures are calculated to reflect funds from operations on the same
basis. Funds from operations is widely accepted in measuring the
performance of equity REITs. An understanding of the Company's funds from
operations will enhance the reader's comprehension of the Company's results
of operations and cash flows as presented in the financial statements and
data included elsewhere herein. Funds from operations should not be
considered an alternative to net income or any other GAAP measurement as a
measure of the results of the Company's operations, the Company's cash
flows or liquidity.
27
Funds from operations for the nine months ended September 30, 1996 and 1995
are summarized as follows:
SEPTEMBER 30,
------------------------
1996 1995
------- -------
Net income before minority
interest and
extraordinary item $14,334 12,779
Depreciation 8,354 8,218
Other, net (1) 367 (558)
------- ------
Funds from operations $23,055 20,439
======= ======
Total shares - weighted average,
including shares issuable upon
conversion of preferred
shares and units 15,600 14,427
======= ======
(1) Includes share of co-investment partnerships' depreciation, and
in 1996 non-recurring gain relating to the sale of an interest rate cap
contract and, in 1995, non-recurring gain from the sale of an apartment
community, net of non-recurring expenses associated with the AMLI brand
name.
The Company expects to pay quarterly dividends from cash available for
distribution. Until distributed, funds available for distribution will be
invested in short-term investment-grade securities or used to temporarily
reduce outstanding balances on the Company's revolving lines of credit.
The Company expects to meet its short-term liquidity requirements by using
its working capital and any portion of net cash flow from operations not
distributed currently. The Company is of the opinion that its future net
cash flows will be adequate to meet operating requirements in both the
short and the long term and provide for payment of dividends by the Company
in accordance with REIT requirements. In order to qualify as a REIT, the
Company is required to distribute dividends to its shareholders equal to
95% of its REIT taxable income. The Company's 1996 estimated dividend
payment level equals an annual rate of $1.72 per share. The Company
estimates that approximately 35% of the total dividends to be paid in 1996
will be treated as a return of capital.
The Company expects to meet certain long-term liquidity requirements such
as scheduled debt maturities, repayment of loans for construction,
development, and acquisition activities through the issuance of long-term
secured and unsecured debt and additional equity securities of the Company
(or OP Units). On July 20, 1995, the Company's shelf registration became
effective. The registration provided for up to an aggregate of $200,000 of
preferred shares, common shares and security warrants which the Company may
issue from time to time.
On January 30, 1996, the Company issued 1,200,000 Series A cumulative
convertible preferred shares of beneficial interest for $20 per share, or
$24,000 in the aggregate, directly to four institutional investors and Amli
Realty Co. ("ARC") in a registered offering, without the use of a placement
agent or underwriter. The proceeds of the offering, less $82 of
transaction costs, were used to reduce the Company's debt, fund development
costs and for working capital requirements. ARC converted its 100,000
preferred shares to 100,000 common shares on March 6, 1996.
28
<TABLE>
COMPANY INDEBTEDNESS
The Company's debt as of September 30, 1996, substantially all of which is secured by first mortgages on nineteen
of the wholly-owned communities, is summarized as follows:
<CAPTION>
SUMMARY DEBT TABLE
------------------
WEIGHTED AVERAGE PERCENT
TYPE OF INDEBTEDNESS INTEREST RATE BALANCE OF TOTAL
- -------------------- ---------------------- --------- --------
<S> <C> <C> <C>
Fixed Rate Mortgages (1) 7.76% $152,023 65%
Tax-Exempt Bonds (2) Tax Exempt Rate + 1.23% 40,750 17%
Lines of Credit (3) LIBOR + 1.35% to
LIBOR + 1.65% 36,535 16%
Other (4) Various 4,259 2%
-------- ---
Total: $233,567 100%
======== ===
<FN>
- --------------------
(1) Approximately $24,104 of the Company's fixed rate indebtedness is due in 1997, $11,264 is due in 1998,
and $116,655 is due after June 30, 2003.
(2) The tax exempt bonds bear interest at a variable tax exempt rate, which for the week beginning October
22, 1996 was 3.60%, making the Company's effective rate 4.83%, and mature on October 1, 2024. The related credit
enhancement expires in 1999.
(3) Amounts borrowed under lines of credit are due in 1998.
(4) All but $750 of the Company's "Other" debt was repaid in October, 1996.
</TABLE>
29
DEVELOPMENT ACTIVITIES
AMLI at Autumn Chase Phase II, a 224 apartment home development in
Carrollton, Texas, is substantially complete and currently in lease-up.
AMLI at Gleneagles Phase II, a 264 apartment home development located in
Dallas, Texas is expected to be completed in December 1996. The
approximate development costs of the two Communities (including land cost)
are $25,000. The Company has also commenced development activities on
additional sites in Atlanta, Chicago, Dallas, Topeka and Overland Park,
Kansas. Furthermore, the Company has started planning and pre-development
activities on four additional sites in Atlanta, Austin, Chicago and Dallas.
The costs of these development activities are expected to be funded from
existing credit availability and/or in partnership with institutional
investors.
In February 1996, the Company acquired two land parcels in Atlanta, Georgia
and Aurora, Illinois for a total price of $11,023. The Atlanta parcel was
acquired for cash and a note that was paid off in May 1996. The
consideration for the Aurora land parcel was satisfied in part by the
issuance of 26,182 OP Units, with the remaining purchase price paid in
cash. A 272 apartment home community is under development on the Aurora
site in a co-investment partnership with an institutional investor. The
Company has begun development of a 400 apartment home community on the
Atlanta site and expects to commence development of a second 400 apartment
home community on adjacent land either for its own account or in
partnership with an institutional investor.
At September 30, 1996, AMLI at Pleasant Hill, a 502-unit apartment home
community developed through a co-investment partnership, is substantially
complete. Total development costs of approximately $26,600 were funded
first from the venturers' capital contributions and thereafter are being
funded from the $15,500 fixed rate construction and permanent loan provided
by the co-venturer.
In November 1995, the Company, through a co-investment joint venture, began
construction of the 446-unit AMLI at Barrett Lakes apartment community on
54 acres of land located in Atlanta, Georgia. Of the total estimated
development costs of $27,800, the co-venturer has provided $16,680 of
construction and permanent financing for this development, and the
remaining costs are being funded from the Company's and the co-investor's
equity contributions.
In December 1995, the Company began construction of AMLI at River Park, a
222 apartment home community in Atlanta, Georgia. In June 1996, this
community was contributed to a co-investment joint venture. Of the $15,400
estimated development costs, the co-venturer provided $9,100 in the form of
a loan and the remaining costs are being funded from equity contributions
from the Company and its co-investment partner.
On February 27, 1996, the Company committed to make a $12,955 construction
loan to a third party to fund the development of a 156 apartment home
community in Overland Park, Kansas. This community was approximately 40%
complete at September 30, 1996 and is anticipated to be completed in May
1997. The construction and development of this community is accounted for
as an acquisition, construction and development loan.
At September 30, 1996, the Company entered into a joint venture with a
large public pension fund and formed Acquiport/Aurora Crossing, L.P.
Concurrent with the formation of the partnership, AMLI contributed the 18
acre Aurora land parcel and all the improvements in place for a 272
apartment home development. The total development cost of approximately
$24,500 will be funded by equity contributions of which $7,400 was funded
on September 30, 1996. The Company owns a 25% general partnership interest
in this joint venture and received $5,545 as reimbursement of costs.
30
On September 30, 1996, the Company, as general partner, and for a 25%
partnership interest, entered into a co-investment partnership with a large
public pension plan and formed Acquiport/Fossil Creek, L.P. Upon formation
of the partnership, the Company contributed its 19 acre land parcel in
Forth Worth, Texas. The development of a 384 apartment home community on
this site is currently in progress. The total development costs of
approximately $23,700 will be funded from capital contributions from the
partners. At September 30, 1996, total costs incurred of $2,670 were
funded. The Company received $1,998 as reimbursement of costs.
On October 9, 1996, the Company acquired 28.6 acres of land located in
Aurora, Illinois. The $5,014 purchase price of this parcel was paid
partially in cash ($3,429 of which has been paid by the Company and $485 of
which is payable when construction is completed) and through the issuance
of 53,140 OP Units. The Company intends to develop a 464-unit apartment
community on this site in partnerships with an institutional investor.
Total development costs are projected to be approximately $45,000 and
construction is contemplated to commence in the Spring of 1997.
CAPITAL EXPENDITURES
Capital expenditures are those made for assets having a useful life in
excess of one year and include replacements (including carpeting and
appliances) and betterments, such as unit upgrades, enclosed parking
facilities and similar items.
In conjunction with acquisitions of existing properties, it is the
Company's policy to provide in its acquisition budgets adequate funds to
complete any deferred maintenance items and to otherwise make the
properties acquired competitive with comparable newly-constructed
properties. In some cases, the Company will provide in its acquisition
budget additional funds to upgrade or otherwise improve new acquisitions.
INFLATION
Virtually all apartment leases at the communities and co-investment
communities are for six or twelve months' duration. This enables the
Company to pass along inflationary increases in its operating expenses on a
timely basis. Because the Company's property operating expenses (exclusive
of depreciation and amortization) are approximately 43.0% of rental and
other revenue, increased inflation typically results in comparable
increases in income before interest and general and administrative
expenses, so long as rental market conditions allow increases in rental
rates while maintaining stable occupancy.
An increase in general price levels may immediately precede, or accompany,
an increase in interest rates. The Company's exposure to rising interest
rates is mitigated by the existing debt level of approximately 41% of the
Company's current total market capitalization and the high percentage (65%)
of intermediate term fixed rate debt. As a result, for the foreseeable
future, increases in interest expense resulting from increasing inflation
are anticipated to be less than future increases in income before interest
and general and administrative expenses.
31
<TABLE>
OCCUPANCY
The following is a listing of approximate physical occupancy levels by quarter for the Company's wholly-owned
properties:
<CAPTION>
1996 1995
NUMBER ------------------------------------- ------------------------------
OF At At At At At At At At
LOCATION/PROPERTY UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
- ----------------- ------ ---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DALLAS/FT. WORTH, TEXAS
AMLI at Autumn Chase 226 95% 96% 94% 93% 98% 96% 100%
lease lease lease
AMLI at Autumn Chase II 224 up up up N/A N/A N/A N/A
AMLI at Bear Creek 350 93% 95% 95% 93% 97% 94% 99%
AMLI at Chase Oaks 250 96% 95% 98% 96% 97% 99% 96%
AMLI at Gleneagles 326 98% 97% 95% 96% 97% 100% 98%
AMLI on the Green 424 96% 98% 97% 92% 95% 97% 98%
AMLI at Nantucket 312 97% 95% 98% 96% 97% 99% 97%
AMLI of North Dallas 1,032 95% 97% 97% 95% 98% 98% 97%
AMLI at Reflections 212 97% 88% 95% 93% 98% 98% 93%
AMLI on Rosemeade 236 97% 98% 98% 95% 99% 98% 98%
AMLI on Timberglen 260 97% 96% 97% 92% 99% 98% 94%
AMLI at Valley Ranch 460 93% 95% 95% 94% 96% 98% 91%
----- --- --- --- --- --- --- ---
4,312 91% 96% 96% 94% 97% 98% 96%
----- --- --- --- --- --- --- ---
AUSTIN, TEXAS
AMLI at the Arboretum 231 96% 97% 96% 95% 98% 99% 93%
AMLI in Great Hills 344 97% 97% 96% 91% 94% 95% 98%
AMLI at Martha's Vineyard 360 95% 95% 95% 94% 96% 94% 96%
----- --- --- --- --- --- --- ---
935 96% 96% 96% 93% 96% 96% 96%
----- --- --- --- --- --- --- ---
ATLANTA, GEORGIA
AMLI at Sope Creek 463 92% 95% 93% 95% 97% 95% 98%
AMLI at Sope Creek lease lease lease
Phase IV 232 91% 98% 98% up up up N/A
AMLI at Spring Creek 1,180 97% 96% 96% 94% 96% 96% 96%
AMLI at Vinings 208 95% 99% 99% 98% 100% 99% 97%
AMLI at West Paces 337 95% 97% 92% 96% 99% 97% 98%
----- --- --- --- --- --- --- ---
2,420 95% 96% 95% 95% 97% 96% 97%
----- --- --- --- --- --- --- ---
32
EASTERN KANSAS
AMLI at Alvamar 152 98% 96% 95% 96% 96% 94% 94%
AMLI at Crown Colony 156 96% 96% 86% 86% 96% 94% 96%
AMLI at Regents Center 300 95% 94% 98% 94% 92% 98% 96%
AMLI at Sherwood 300 97% 97% 89% 91% 98% 92% 91%
----- --- --- --- --- --- --- ---
908 97% 96% 93% 92% 95% 95% 94%
----- --- --- --- --- --- --- ---
INDIANAPOLIS, INDIANA
AMLI at Riverbend 996 96% 94% 94% 93% 95% 95% 93%
----- --- --- --- --- --- --- ---
ORANGE COUNTY, CALIFORNIA
Club Laguna N/A N/A N/A N/A N/A N/A 91% 95%
----- --- --- --- --- --- --- ---
CHICAGO, ILLINOIS
AMLI at Park Sheridan 253 92% 97% 96% 92% 99% 94% 96%
----- ----- ----- ----- ----- ----- ----- -----
9,824 93.4% 95.8% 95.4% 93.9% 96.7% 96.2% 95.8%
===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
33
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K have been filed during the quarter ended September
30, 1996. The Exhibits filed as part of this report are listed below.
EXHIBIT NO. DOCUMENT DESCRIPTION
27. Financial Data Schedule
99. Financial and Operating Data
furnished to Shareholders and Analysts
34
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
AMLI RESIDENTIAL PROPERTIES TRUST
Date: November 6, 1996 By: /s/ CHARLES C. KRAFT
-----------------------------------
Charles C. Kraft
Principal Accounting Officer
Principal Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Date: November 6, 1996 By: /s/ GREGORY T. MUTZ
-----------------------------------
Gregory T. Mutz
Chairman of the Board of Trustees
Date: November 6, 1996 By: /s/ ALLAN J. SWEET
-----------------------------------
Allan J. Sweet
President and Trustee
Date: November 6, 1996 By: /s/ CHARLES C. KRAFT
-----------------------------------
Charles C. Kraft
Principal Accounting Officer
Principal Financial Officer
35
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,643
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 475,515
<DEPRECIATION> 47,511
<TOTAL-ASSETS> 474,148
<CURRENT-LIABILITIES> 0
<BONDS> 233,567
0
11
<COMMON> 118
<OTHER-SE> 184,159
<TOTAL-LIABILITY-AND-EQUITY> 474,148
<SALES> 0
<TOTAL-REVENUES> 58,017
<CGS> 0
<TOTAL-COSTS> 44,267
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,981
<INCOME-PRETAX> 11,729
<INCOME-TAX> 0
<INCOME-CONTINUING> 11,729
<DISCONTINUED> 0
<EXTRAORDINARY> 1,118
<CHANGES> 0
<NET-INCOME> 10,611
<EPS-PRIMARY> .79
<EPS-DILUTED> .79
</TABLE>
EXHIBIT 99
- ----------
AMLI RESIDENTIAL PROPERTIES TRUST
FINANCIAL AND OPERATING DATA
September 30, 1996
1. Funds from Operations
2. Statements of Operations
3. Balance Sheets
4. Selected Financial Information
5. Debt
6. Debt Maturities
7. Same Community Comparison - Wholly-Owned - three months
ended September 30, 1996 and 1995
8. Same Community Comparison - Wholly-Owned - nine months
ended September 30, 1996 and 1995
9. Same Community Comparison - Wholly-Owned & Co-
Investments - three months ended September 30, 1996 and
1995
10. Same Community Comparison - Wholly-Owned & Co-
Investments - nine months ended September 30, 1996 and
1995
11. Property Information
12. Development Activities
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PRO FORMA
REVENUES
- --------
Property revenues:
Rental $ 18,223 $ 17,766 $ 17,431 $ 69,341 $ 61,480
Other 902 814 711 2,797 2,347
-------- -------- -------- -------- --------
Total Property Revenues 19,125 18,580 18,142 72,138 63,827
-------- -------- -------- -------- --------
Property operating expenses (7,858) (7,634) (7,237) (28,451) (24,957)
Property management fees (478) (464) (454) (1,803) (1,602)
-------- -------- -------- -------- --------
Property expenses (8,336) (8,098) (7,691) (30,254) (26,559)
Operating expense ratio 43.6% 43.6% 42.4% 41.9% 41.6%
-------- -------- -------- -------- --------
Net operating income 10,789 10,482 10,451 41,884 37,268
-------- -------- -------- -------- --------
OTHER INCOME
- ------------
Share of Service
Companies' income (loss) (8) (95) (56) 3 100
Interest from Service Companies 113 114 114 455 455
Other interest 127 140 125 407 491
Share of partnerships cash flow 593 486 256 466 197
Fee income - acquisitions 0 92 158 220 0
Fee income - developments 363 99 32 206 267
Fee income - asset management 143 143 77 224 38
Other 35 45 25 189 261
-------- -------- -------- -------- --------
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS - CONTINUED
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PRO FORMA
Total other income 1,366 1,024 731 2,170 1,809
General and administrative (575) (532) (596) (1,932) (1,407)
-------- -------- -------- -------- --------
EBITDA 11,580 10,974 10,586 42,122 37,670
-------- -------- -------- -------- --------
Interest expense (3,167) (2,996) (2,818) (12,926) (10,253)
Amortization of deferred costs (253) (400) (451) (1,792) (2,415)
-------- -------- -------- -------- --------
Funds from operations (FFO) $ 8,160 $ 7,578 $ 7,317 $ 27,404 $ 25,002
Capital expenditures paid from FFO (454) (394) (333) (1,714) (893)
Other (Co-investments Cap exp) (12) (12) (9) (29) 0
-------- -------- -------- -------- --------
Funds available for distribution (FAD) $ 7,694 $ 7,172 $ 6,975 $ 25,661 $ 24,109
-------- -------- -------- -------- --------
FFO per share $ 0.52 $ 0.48 $ 0.48 $ 1.90 $ 1.73
FAD per share $ 0.49 $ 0.46 $ 0.46 $ 1.78 $ 1.67
Dividend per share $ 0.43 $ 0.43 $ 0.43 $ 1.72 $ 1.68
Dividend as a % of FFO 83.2% 89.3% 89.6% 90.5% 96.9%
Dividend as a % of FAD 88.3% 94.4% 94.0% 96.7% 100.5%
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
REVENUES
- --------
Property Revenue:
Rental $ 18,223 $ 17,766 $ 17,431 $ 69,341 $ 61,123
Other 902 814 711 2,797 2,338
Interest from and share of Service
Companies' income (loss) 105 19 58 458 498
Other interest 127 140 125 407 491
Other 715 508 373 874 765
-------- -------- -------- -------- --------
Total Revenue $ 20,072 $ 19,247 $ 18,698 $ 73,877 $ 65,215
-------- -------- -------- -------- --------
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
EXPENSES
- --------
Personnel 1,704 1,727 1,594 6,287 5,290
Advertising and promotion 519 478 472 1,702 1,465
Utilities 1,165 1,001 1,066 4,125 3,782
Building repairs and maintenance 1,344 1,182 1,115 4,554 3,999
Landscaping and grounds maintenance 436 524 331 1,811 1,405
Real estate taxes 2,136 2,173 2,120 7,947 7,169
Insurance 251 253 234 914 843
Other operating expenses 303 296 305 1,111 881
Property management fees 478 464 454 1,803 1,422
Interest, net of capitalized 3,167 2,996 2,818 12,926 11,557
Amortization of deferred costs 253 400 451 1,792 2,448
Depreciation of real property 2,259 2,133 2,121 8,704 7,894
Depreciation of personal property 700 593 548 2,081 2,733
General and administrative 575 532 596 1,932 1,616
-------- -------- -------- -------- --------
Total expenses 15,290 14,752 14,225 57,689 52,504
-------- -------- -------- -------- --------
Non-recurring item income (expense) 0 584 0 818 749
-------- -------- -------- -------- --------
Income before taxes, minority
interest and extraordinary item 4,782 5,079 4,473 17,006 13,460
-------- -------- -------- -------- --------
Income taxes 0 0 0 0 62
-------- -------- -------- -------- --------
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Income (loss) before minority
interest and extraordinary items 4,782 5,079 4,473 17,006 13,398
Minority interest 878 920 807 3,287 2,681
-------- -------- -------- -------- --------
Income (loss) before extraordinary
items 3,904 4,159 3,666 13,719 10,717
Extraordinary items net of minority
interests 0 (1,118) 0 0 (2,007)
-------- -------- -------- -------- --------
Net income (loss) $ 3,904 $ 3,041 $ 3,666 $ 13,719 $ 8,710
Net income (loss) allocable to
preferred shares 473 473 327 0 0
-------- -------- -------- -------- --------
Net income (loss) allocable to
common shares $ 3,431 $ 2,568 $ 3,339 $ 13,719 $ 8,710
======== ======== ======== ======== ========
INCOME (LOSS) PER COMMON SHARE:
Before extra-ordinary item $ 0.28 $ 0.31 $ 0.29 $ 1.18 $ 0.92
Extraordinary item $ 0.00 ($ 0.09) $ 0.00 $ 0.00 $ (0.17)
Income per common share $ 0.28 $ 0.22 $ 0.29 $ 1.18 $ 0.75
======== ======== ======== ======== ========
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
<CAPTION>
1996
Three Months Ended 1995 1994
--------------------------------------- Year ended Year ended
Sept. 30 June 30 Mar. 31 Dec. 31 Dec. 31,
-------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PRO FORMA
FUNDS FROM OPERATIONS
- ---------------------
Income (loss) before taxes, minority
interest and extraordinary item $ 4,782 $ 5,079 $ 4,473 $ 17,006 $ 14,878
-------- -------- -------- -------- --------
Depreciation of real property 2,259 2,133 2,121 8,704 7,894
Depreciation of personal property 700 593 548 2,081 2,733
Non-recurring items 0 (584) 0 (818) (749)
Other 419 357 175 431 246
-------- -------- -------- -------- --------
Funds from operations (FFO) $ 8,160 $ 7,578 $ 7,317 $ 27,404 $ 25,002
FFO per share $ 0.52 $ 0.48 $ 0.48 $ 1.90 $ 1.73
-------- -------- -------- -------- --------
Capital expenditures paid from FFO $ (454) ($ 394) $ (333) $ (1,714) $ (893)
Other (Co-investments Cap exp) (12) (12) (9) (29) 0
-------- -------- -------- -------- --------
Funds available for distribution (FAD) $ 7,694 $ 7,172 $ 6,975 $ 25,661 $ 24,109
FAD per share $ 0.49 $ 0.46 $ 0.46 $ 1.78 $ 1.67
-------- -------- -------- -------- --------
Dividends per share $ 0.43 $ 0.43 $ 0.43 $ 1.72 $ 1.68
======== ======== ======== ======== ========
Dividends as a % of FFO 83.2% 89.3% 89.6% 90.5% 96.9%
Dividends as a % of FAD 88.3% 94.4% 94.0% 96.7% 100.5%
======== ======== ======== ======== ========
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS
Unaudited - Dollars in thousands except per share data
<CAPTION>
Sept. 30 June 30, Mar. 31, Dec. 31, Dec. 31,
1996 1996 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
- ------
Rental apartments
Land $ 59,854 $ 58,643 $ 58,643 $ 58,643 $ 59,723
Depreciable property 372,317 361,879 361,330 361,011 375,713
-------- -------- -------- -------- --------
432,171 420,522 419,973 419,654 435,436
Less accumulated depreciation (47,511) (44,552) (41,826) (39,157) (29,574)
-------- -------- -------- -------- --------
384,660 375,970 378,147 380,497 405,862
Property under development 43,344 50,597 42,763 23,211 16,326
Investments in partnerships 28,438 24,351 17,758 12,255 2,948
Cash and cash equivalents 3,643 4,459 2,080 2,829 4,010
Security deposits 1,775 1,881 1,874 1,880 2,049
Deferred costs, net 2,339 2,509 4,922 5,415 6,211
Other assets 9,949 10,573 9,419 7,140 5,213
-------- -------- -------- -------- --------
Total assets $474,148 $470,340 $456,963 $433,227 $442,619
======== ======== ======== ======== ========
LIABILITIES AND SHAREHOLDERS EQUITY
- -----------------------------------
Debt $233,567 $230,888 $218,267 $215,255 $217,687
Accrued interest payable 1,273 992 1,127 1,230 1,137
Accrued real estate taxes 6,974 5,057 3,577 6,471 6,212
Construction costs payable 2,432 1,821 2,213 1,369 591
Security deposits and prepaid rents 2,369 2,191 2,185 2,439 2,699
Other liabilities 1,836 1,701 1,741 1,223 1,389
-------- -------- -------- -------- --------
Total liabilities 248,451 242,650 229,110 227,987 229,715
-------- -------- -------- -------- --------
Minority interest 41,409 41,814 40,249 39,077 42,743
-------- -------- -------- -------- --------
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS - CONTINUED
<CAPTION>
Sept. 30 June 30, Mar. 31, Dec. 31, Dec. 31,
1996 1996 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Shareholders' equity
Preferred shares, $.01 par value 11 11 11
Shares of beneficial interest,
$.01 par value 118 118 118 117 115
Additional paid-in capital 242,487 242,433 241,657 218,752 216,577
Retained earnings (10,094) (13,998) (17,039) (20,705) (34,424)
Dividends paid (48,234) (42,688) (37,143) (32,001) (12,107)
-------- -------- -------- -------- --------
Total shareholders' equity 184,288 185,876 187,604 166,163 170,161
-------- -------- -------- -------- --------
Total liabilities and
shareholders' equity $474,148 $470,340 $456,963 $433,227 $442,619
======== ======== ======== ======== ========
</TABLE>
<TABLE>
Amli Residential Properties Trust
Selected Quarterly Financial Information
September 30, 1996
(in thousands except for per share data)
<CAPTION>
Sept. 30 June 30, Mar. 31, Dec. 31, Dec. 31,
1996 1996 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total Debt $233,567 $230,888 $218,267 $215,255 $217,687
Total Debt (1) 270,374 267,348 244,149 227,204 223,495
Total Shares and
Units Outstanding (2) 15,799 15,796 15,653 14,427 14,427
Value per Common Share
- end of quarter $ 20.875 $ 20.750 $ 20.125 $ 20.00 $ 18.75
Total Equity (Market
Value) - end of quarter 329,802 327,775 315,014 288,534 270,501
Total Market Capitalization 563,369 558,663 533,281 503,789 488,188
Total Market Capitalization (1) 600,176 595,123 559,163 515,738 493,996
======== ======== ======== ======== ========
Total Revenues (3) 20,072 19,247 18,698 18,464 17,651
EBITDA (4) 11,580 10,974 10,586 10,497 10,432
FFO 8,160 7,578 7,317 6,965 6,747
FAD 7,694 7,172 6,975 6,531 6,471
Dividends Paid 6,792 6,731 6,322 6,203 6,059
Debt service (excluding
capitalized interest) 3,645 3,279 3,060 3,320 3,384
Interest Expense 3,167 2,996 2,818 3,082 3,203
G & A Expense 575 532 596 486 391
Total Shares and
Units Outstanding
- Wtd. Avg. 15,798 15,746 15,254 14,427 14,427
======== ======== ======== ======== ========
</TABLE>
<TABLE>
Amli Residential Properties Trust
Selected Quarterly Financial Information - CONTINUED
September 30, 1996
(dollars in thousands except for per share data)
<CAPTION>
Sept. 30 June 30, Mar. 31, Dec. 31, Dec. 31,
1996 1996 1996 1995 1994
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Debt Service Coverage Ratio 3.18 3.35 3.46 3.16 3.08
Interest Coverage Ratio 3.66 3.66 3.76 3.41 3.26
Debt as % of Total
Market Capitalization 41.46% 41.33% 40.93% 42.73% 44.59%
Debt as % of Total
Market Capitalization (1) 45.05% 44.92% 43.66% 44.05% 45.24%
EBITDA as % of Total
Market Capitalization 8.22% 7.86% 7.94% 8.33% 8.55%
FFO as % of Total
Market Equity 9.90% 9.25% 9.29% 9.66% 9.98%
G&A as % of Total
Market Capitalization 0.41% 0.38% 0.45% 0.39% 0.32%
G&A as % of Total Revenues 2.86% 2.76% 3.19% 2.63% 2.22%
Dividends as % of FFO 83.2% 89.3% 89.6% 89.1% 89.8%
Dividends as % of FAD 88.3% 94.4% 94.0% 95.0% 93.6%
======== ======== ======== ======== ========
Apartment Units - Wholly Owned
In Operation 9,824 9,600 9,600 9,600 9,789
Under Development 1,404 884 612 612 456
Apartment Units - Co-Investment
In Operation 3,677 3,175 2,687 2,245 1,451
Under Development 1,324 1,170 948 948 502
-------- -------- -------- -------- --------
Total Units 16,229 14,829 13,847 13,405 12,198
======== ======== ======== ======== ========
<FN>
(1) Including proportionate share of debt of Co-investment partnerships accounted for using the equity
method.
(2) Including 1,100,000 preferred shares convertible to common shares.
(3) Excluding non-recurring gain of $960 in the third quarter of 1994 and $1,564 in the third quarter of 1995
and $751 in the second quarter of 1996.
(4) Includes other income, net of G & A expenses.
</TABLE>
<TABLE>
Amli Residential Properties Trust
Debt
September 30, 1996
(in thousands)
<CAPTION>
Harris
Fixed Tax Wachovia LOC/ First
Total Rate Exempt Line of Const. Chgo./
Debt Mortgages Bonds Credit Loan NBD Other
-------- ---------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Dec. 31, 1994 $217,687 54,845 40,750 19,518 2,989 99,585
Borrowings 7,527 1,027 6,500
Repayments (1,367) (203) (1,164)
-------- -------- -------- ------- ------- -------- --------
Mar. 31, 1995 $223,847 54,642 40,750 20,545 1,825 106,085
Borrowings 9,159 2,855 1,304 500 4,500
Repayments (204) (204)
-------- -------- -------- ------- ------- -------- --------
Jun. 30, 1995 $232,802 54,438 40,750 23,400 3,129 500 110,585
Borrowings 21,375 13,800 7,575
Repayments (44,137) (208) (3,129) (40,800)
-------- -------- -------- ------- ------- -------- --------
Sep. 30, 1995 $210,040 68,030 40,750 30,975 0 500 69,785
Borrowings 5,453 1,560 250 1,843 1,800
Repayments (238) (238)
-------- -------- -------- ------- ------- -------- --------
Dec. 31, 1995 $215,255 67,792 40,750 32,535 250 2,343 71,585
Borrowings 9,504 491 5,606 3,407
Repayments (6,492) (242) (250) (6,000)
-------- -------- -------- ------- ------- -------- --------
Mar. 31, 1996 $218,267 67,550 40,750 32,535 491 7,949 68,992
Borrowings 89,095 85,234 1,361 2,500
Repayments (76,474) (283) (7,949) (68,242)
-------- -------- -------- ------- ------- -------- --------
Jun. 30, 1996 230,888 152,501 40,750 32,535 1,852 2,500 750
-------- -------- -------- ------- ------- -------- --------
Borrowings 3,157 1,657 1,500
Repayments (478) (478)
-------- -------- -------- ------- ------- -------- --------
Sep. 30, 1996 $233,567 $152,023 $ 40,750 $32,535 $ 3,509 $ 4,000 $ 750
======== ======== ======== ======= ======= ======== ========
Amount Capped $ 31,250 5,845
Capped To Feb 15, Feb 15,
1997 1998
Maximum Effective
Rate - Capped Portion 4.23% 5.38%
======= =======
Amli Residential Properties Trust
Debt - CONTINUED
<FN>
Tax Exempt Bonds All-in rate reflects maximum (including all Housing Authority, Trustee, and Credit
Enhancement Costs) effective rate with 3% rate cap in place.
Wachovia $60 Million
Line of Credit Interest at LIBOR+135. $14,000 has been swapped to a 6.65% fixed rate to February 24,
1997, $12,400 has been swapped to a 6.47% fixed rate to February 15, 1997 and $5,845
has been capped based on 30 day LIBOR of 3.875% through February 15, 1998. On July 8,
1996, this facility was increased to $60 million and the pricing on the outstanding
balances was lowered to LIBOR + 135% (LIBOR + 1.65% on construction loans until
stabilized).
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PORTFOLIO INDEBTEDNESS SUMMARY
September 30, 1996
(Dollars in thousands)
<CAPTION>
<S> <C> <C>
RATE ASSUMPTIONS
LIBOR 5.44%
LIBOR Cap 3.88%
Tax Exempt 3.35% F = Fixed Rate
Tax Exempt Cap 3.00% V = Variable Rate
</TABLE>
<TABLE>
<CAPTION> Original Outstand- Maturity
/Max ing Interest Maturity (years)
Borrower Lender Amount Balance Rate Rate Date 9/30/96
- ---------- ---------- -------- --------- --------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
F ARP, L.P. IDS American Express$ 5,000 4,783 9.38% 3/1/97 0.4
F ARP, L.P. Lincoln National 4,800 4,447 9.90% 9/28/97 1.0
F ARP, L.P. Prudential 8,500 8,177 7.70% 10/31/97 1.1
F ARP, L.P. Allstate 7,060 6,697 7.42% 11/1/97 1.1
F ARP, L.P. Prudential 4,800 4,550 7.05% 6/30/98 1.7
F ARP, L.P. Prudential 7,050 6,714 7.02% 10/5/98 2.0
F ARP, L.P. CIGNA 31,000 30,927 7.30% 7/1/03 6.8
F ARP, L.P. CIGNA 11,000 10,974 7.34% 7/1/03 6.8
F ARP, L.P. Fleet 7,320 7,034 7.75% 7/1/03 6.8
F ARP, L.P. Nationwide 11,500 10,950 7.63% 7/10/03 6.8
F ARP, L.P. TIAA 20,100 13,701 8.73% 9/1/05 8.9
F ARP, L.P. (1) FNMA 43,907 43,069 7.79% 5/1/06 9.6
- ------------------------------------------------------------------------------------------------------------------
V ARP, L.P. Harris Trust & Savings6,230 3,509 7.44% LIBOR + 2.00% 10/9/96 0.0
V ARP, L.P. First Chicago NBD 29,500 4,000 7.09% LIBOR + 1.65% 2/28/98 1.4
V ARP, L.P. (2) Wachovia Bank 50,000 32,535 6.47% LIBOR + 1.35% 5/31/98 1.7
- ------------------------------------------------------------------------------------------------------------------
V ARP, L.P. (3) Tax-Exempt Bonds 31,250 31,250 4.23% Tax Ex + 1.23% 9/30/99 3.0
V ARP, L.P. Tax-Exempt Bonds 9,500 9,500 4.58% Tax Ex + 1.23% 9/30/99 3.0
- ------------------------------------------------------------------------------------------------------------------
F ARP, L.P. AIA 750 750 4.00% Demand -
- ------------------------------------------------------------------------------------------------------------------
TOTAL 289,268 233,567 6.93% 5.0
==================================================================================================================
Co-Investments (4) Various 47,579 36,807 7.78% Various 6.4
- ------------------------------------------------------------------------------------------------------------------
TOTAL including Co-Investment $336,847 $270,374 7.05% 5.2
==================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Percent of Interest Years to
Type of Indebtedness Balance Total Interest Rate Maturity
- -------------------- -------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Conventional Fixed Rate $152,023 65.1% Fixed 7.76% 6.5
Tax-exempt Variable Rate 40,750 17.4% Variable 4.31% 3.0
Credit Facilities 40,044 17.1% Variable 6.50% 1.5
Other 750 0.3% Fixed 4.00% -
-------- ------ ----- ---
Total $233,567 100.0% 6.93% 5.0
======== ====== ===== ===
<FN>
(1) The outstanding balance is net of $645 representing the unamortized discount from the sale of the FNMA
certificates.
(2) $12,400 swapped to 6.47% fixed rate through February 15, 1997 and $14,000 swapped to 6.65% fixed rate through
February 24, 1997. $5,845 has been capped based on LIBOR = 3.875%. All in note reflects LIBOR + 135.
(3) Tax-Exempt Bonds: $31,250 has been capped with the tax-exempt rate = 3.0%. All in rate reflects maximum
effective rate including Housing Authority, Trustee and Credit Enhancement Costs. Maturity Date shown is
expiration date of Credit Enhancement. Bonds mature in 2024.
(4) Co-Investment debt represents Amli Residential's pro rata share of debt. Interest rate and maturity reflect
average numbers based on Amli's pro rata share.
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PORTFOLIO INDEBTEDNESS SUMMARY
September 30, 1996
(Dollars in thousands)
CO-INVESTMENT DETAIL
<CAPTION>
Maturity
Original/ Outstand- (years)
Max ing Interest Maturity from
Property Lender Amount Balance Rate Date 9/30/96 AMLI % AMLI $
- -------- ------ --------- ---------- -------- -------- -------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AMLI AT:
Park Place Prudential 13,000 12,672 8.21% 10/05/99 3.0 25% 3,168
Greenwood Forest Nationwide 11,625 11,625 8.95% 05/10/02 5.6 15% 1,744
Champions Park Lincoln National 9,500 9,119 7.26% 12/05/97 1.2 15% 1,368
Champions Centre Prudential 6,700 6,700 8.93% 01/01/02 5.3 15% 1,005
Windbrooke Allstate 11,500 11,500 9.24% 02/01/02 5.3 15% 1,725
Chevy Chase CIGNA 29,767 29,767 6.67% 04/01/03 6.5 33% 9,823
Willowbrook NML 24,500 24,500 7.79% 05/01/03 6.6 40% 9,800
Willeo Creek Phoenix Home Life 10,000 10,000 6.77% 05/01/03 6.6 30% 3,000
Pleasant Hill NML 15,500 12,627 9.15% 03/01/07 10.4 40% 5,051
Barrett Lakes NML 16,700 1 8.50% 12/01/09 13.2 35% --
River Exchange Erie Insurance 9,100 0 7.75% 06/27/08 11.7 40% --
Prairie Court Bonds 7,250 7,250 8.00% 12/01/99 3.2 1% 73
Towne Creek Erie Insurance 5,000 5,000 9.50% 11/30/99 3.2 1% 50
------- ------- ----- ---- ----- ------
170,142 140,761 7.77% 6.4 26.1% 36,807
======= ======= ===== ==== ===== ======
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES
SEPTEMBER 30, 1996
Unaudited - dollars in thousands
<CAPTION>
There- % to
1996 1997 1998 1999 2000 after Total Total
------ ------- ------- ------- ------- -------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Rate Mortgages $ 541 $25,936 $12,813 $1,981 $2,127 $108,625 $152,023 65.1%
Tax Exempt Bonds* 40,750 40,750 17.4%
Wachovia Line of Credit 32,535 32,535 13.9%
First Chicago Line
of Credit 4,000 4,000 1.7%
Harris Line of Credit 3,509 3,509 1.5%
Other 750 750 0.3%
------ ------- ------- ------- ------- -------- -------- ------
Total Loans $4,800 $25,936 $49,348 $1,981 $2,127 $149,375 $233,567 100.0%
====== ======= ======= ====== ====== ======== ======== ======
Percent to Total 2.1% 11.1% 21.1% 0.8% 0.9% 64.0% 100.0% 86.4%
====== ======= ======= ====== ====== ======== ======== ======
SHARE OF CO-INVESTMENT DEBT
Prudential Ins. -
Park Place (25%) 12 49 53 3,054 3,168 8.6%
Nationwide Life Ins. -
Greenwood Forest (15%) 3 5 5 1,731 1,744 4.7%
Lincoln National Ins. -
Champions Park (15%) 4 1,364 1,368 3.7%
Prudential Ins. -
Champions Centre (15%) 8 9 10 11 967 1,005 2.7%
Allstate Life Ins. -
Windbrooke (15%) 14 16 18 1,677 1,725 4.7%
CIGNA -
Chevy Chase (33%) 104 165 177 189 9,188 9,823 26.7%
Northwestern Mutual Life Ins. -
Willowbrook (40%) 76 139 150 162 9,273 9,800 26.6%
Phoenix Mutual -
Willeo Creek (30%) 23 49 53 56 2,819 3,000 8.2%
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES - CONTINUED
There- % to
1996 1997 1998 1999 2000 after Total Total
---- ------- ------- ------- ------- -------- -------- ------
Northwestern Mutual Life Ins. -
Pleasant Hill (40%) 5,051 5,051 13.7%
Northwestern Mutual Life Ins. -
Barrett Lakes (35%) 0 0 0.0%
Erie Insurance -
River Park (40%) 0 0 0.0%
Central Bank, Trustee -
Prairie Court (1%) 73 73 0.2%
Erie Insurance -
Towne Creek (1%) 50 50 0.1%
------ ------- ------- ------- ------- -------- -------- ------
Total Share of
Co-Investment Loans $ 16 $1,624 $ 432 $3,588 $441 $ 30,706 $ 36,807 100.0%
====== ======= ======= ====== ====== ======== ======== ======
Percent to Total 0.0% 4.4% 1.2% 9.7% 1.2% 83.4% 100.0% 13.6%
====== ======= ======= ====== ====== ======== ======== ======
Total Including Share
of Co-Investment Debt $4,816 $27,560 $49,780 $5,569 $2,568 $180,081 $270,374 100.0%
====== ======= ======= ====== ====== ======== ======== ======
Percent to Total 1.8% 10.2% 18.4% 2.1% 0.9% 66.6% 100.0% 100.0%
====== ======= ======= ====== ====== ======== ======== ======
<FN>
* The Bonds mature in October 2024 but the credit enhancement expires on October 15, 1999.
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
THREE MONTHS ENDED SEPTEMBER 30, 1996 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1995
Excluding Sope IV, Autumn Chase II and Gleneagles II
<CAPTION>
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 94.9% -2.9% 97.8%
Atlanta 94.3% -2.1% 96.4%
Austin 92.3% -4.6% 96.7%
Indianapolis 93.5% -2.7% 96.1%
Eastern Kansas 93.0% -2.7% 95.5%
Chicago 94.1% -3.5% 97.5%
----- ----- -----
Weighted Average 94.2% -2.9% 96.9%
===== ===== =====
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $622 3.7% $600
Atlanta $725 5.9% $685
Austin $658 4.4% $630
Indianapolis $565 2.1% $553
Eastern Kansas $649 4.3% $622
Chicago $875 1.6% $861
---- ---- ----
Weighted Average $653 4.1% $627
==== ==== ====
TOTAL PROPERTY REVENUES Per Month Per Month
- ----------------------- ---------- ----------
Dallas $ 7,563,361 $617 $0.75 1.9% $ 7,420,212 $605 $0.73
Atlanta $ 4,672,903 $712 $0.76 5.4% $ 4,435,013 $676 $0.72
Austin $ 1,786,802 $637 $0.87 2.1% $ 1,749,351 $624 $0.85
Indianapolis $ 1,692,192 $566 $0.69 1.7% $ 1,663,792 $557 $0.68
Eastern Kansas $ 1,733,235 $636 $0.74 2.4% $ 1,692,888 $621 $0.72
Chicago $ 694,455 $915 $1.07 -0.2% $ 695,999 $917 $1.07
------------ ---- ----- ----- ----------- ---- -----
Total $ 18,142,947 $646 $0.76 2.8% $17,657,253 $628 $0.74
============ ==== ===== ===== =========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
Excluding Sope IV, Autumn Chase II and Gleneagles II
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 3,647,670 $3,569 $4.32 5.5% $3,458,253 $3,384 $4.09
Atlanta $ 1,652,886 $3,022 $3.23 -2.3% $1,690,997 $3,091 $3.30
Austin $ 806,640 $3,451 $4.69 2.9% $ 784,041 $3,354 $4.56
Indianapolis $ 666,464 $2,677 $3.25 6.0% $ 628,554 $2,524 $3.06
Eastern Kansas $ 713,068 $3,141 $3.65 6.7% $ 668,280 $2,944 $3.42
Chicago $ 410,813 $6,495 $7.60 -3.0% $ 423,318 $6,693 $7.83
------------ ------ ----- ----- ---------- ------ -----
Total $ 7,897,540 $3,372 $3.98 3.2% $7,653,444 $3,268 $3.86
============ ====== ===== ===== ========== ====== =====
Operating Efficiency 43.5% 43.3%
============ ==========
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ----------
Dallas $ 3,915,691 $319 $0.39 -1.2% $ 3,961,959 $323 $0.39
Atlanta $ 3,020,018 $460 $0.49 10.1% $ 2,744,015 $418 $0.45
Austin $ 980,162 $349 $0.47 1.5% $ 965,310 $344 $0.47
Indianapolis $ 1,025,728 $343 $0.42 -0.9% $ 1,035,238 $346 $0.42
Eastern Kansas $ 1,020,167 $375 $0.44 -0.4% $ 1,024,608 $376 $0.44
Chicago $ 283,642 $374 $0.44 4.0% $ 272,681 $359 $0.42
------------ ---- ----- ----- ----------- ---- -----
Total $ 10,245,407 $365 $0.43 2.4% $10,003,810 $356 $0.42
============ ==== ===== ===== =========== ==== =====
Operating Margin 56.5% 56.7%
============ ==========
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 248,991 $244 $0.29 -23.0% $323,467 $317 $0.38
Atlanta $ 55,766 $102 $0.11 -23.9% $73,317 $134 $0.14
Austin $ 43,718 $187 $0.25 -12.2% $49,808 $213 $0.29
Indianapolis $ 40,088 $161 $0.20 19.0% $33,683 $135 $0.16
Eastern Kansas $ 43,681 $192 $0.22 95.4% $22,351 $ 98 $0.11
Chicago $ 19,371 $306 $0.36 -52.3% $40,602 $642 $0.75
------------ ---- ----- ------ -------- ---- -----
Total $ 451,614 $193 $0.23 -16.9% $543,228 $232 $0.27
============ ==== ===== ====== ======== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
Excluding Sope IV, Autumn Chase II and Gleneagles II
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 645,545 $ 632 $0.76 26.2% $ 511,703 $ 501 $0.61
Atlanta $ 227,621 $ 416 $0.44 -12.8% $ 260,955 $ 477 $0.51
Austin $ 111,891 $ 479 $0.65 -16.0% $ 133,167 $ 570 $0.77
Indianapolis $ 144,244 $ 579 $0.70 16.5% $ 123,867 $ 497 $0.60
Eastern Kansas $ 86,551 $ 381 $0.44 -5.7% $ 91,773 $ 404 $0.47
Chicago $ 96,448 $1,525 $1.78 -23.1% $ 125,366 $1,982 $2.32
------------ ------ ----- ------ ---------- ------ -----
Total $ 1,312,301 $ 560 $0.66 5.3% $1,246,831 $ 532 $0.63
============ ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,014,894 $ 993 $1.20 7.0% $ 948,165 $ 928 $1.12
Atlanta $ 331,922 $ 607 $0.65 1.9% $ 325,686 $ 595 $0.64
Austin $ 207,297 $ 887 $1.20 -0.8% $ 208,941 $ 894 $1.21
Indianapolis $ 179,025 $ 719 $0.87 0.7% $ 177,828 $ 714 $0.87
Eastern Kansas $ 192,334 $ 847 $0.98 8.9% $ 176,550 $ 778 $0.90
Chicago $ 128,183 $2,027 $2.37 2.6% $ 124,926 $1,975 $2.31
------------ ------ ----- ---- ---------- ------ -----
Total $ 2,053,655 $ 877 $1.03 4.7% $1,962,096 $ 838 $0.99
============ ====== ===== ==== ========== ====== =====
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
NINE MONTHS ENDED SEPTEMBER 30, 1996 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1995
Excluding Sope IV, Autumn Chase II and Gleneagles II
<CAPTION>
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 95.0% -1.5% 96.5%
Atlanta 94.4% -2.0% 96.3%
Austin 93.3% -3.4% 96.6%
Indianapolis 93.7% -0.6% 94.2%
Eastern Kansas 91.6% -3.1% 94.6%
Chicago 94.2% -1.2% 95.4%
----- ----- -----
Weighted Average 94.2% -1.9% 96.0%
===== ===== =====
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $617 4.2% $592
Atlanta $716 6.0% $676
Austin $653 5.1% $621
Indianapolis $565 3.6% $545
Eastern Kansas $643 4.8% $613
Chicago $881 4.6% $843
---- ---- ----
Weighted Average $648 4.8% $618
==== ==== ====
TOTAL PROPERTY REVENUES PER MONTH PER MONTH
- ----------------------- --------- ---------
Dallas $ 22,400,440 $609 $0.74 3.6% $21,622,558 $588 $0.71
Atlanta $ 13,791,622 $700 $0.75 5.5% $13,069,311 $664 $0.71
Austin $ 5,311,232 $631 $0.86 3.4% $ 5,135,998 $610 $0.83
Indianapolis $ 5,000,282 $558 $0.68 3.5% $ 4,831,888 $539 $0.65
Eastern Kansas $ 5,052,868 $618 $0.72 2.6% $ 4,925,163 $603 $0.70
Chicago $ 2,095,002 $920 $1.08 5.8% $ 1,979,678 $869 $1.02
------------ ---- ----- ---- ---------- ---- -----
Total $ 53,651,446 $636 $0.75 4.0% $51,564,596 $612 $0.72
============ ==== ===== ==== =========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
Excluding Sope IV, Autumn Chase II and Gleneagles II
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ -----------
Dallas $ 10,545,735 $3,440 $4.16 6.3% $ 9,921,528 $3,236 $3.91
Atlanta $ 5,006,701 $3,051 $3.26 3.9% $ 4,820,089 $2,937 $3.14
Austin $ 2,361,979 $3,368 $4.58 8.0% $ 2,186,977 $3,119 $4.24
Indianapolis $ 1,902,369 $2,547 $3.09 7.1% $ 1,776,763 $2,379 $2.89
Eastern Kansas $ 1,978,068 $2,905 $3.38 10.7% $ 1,787,521 $2,625 $3.05
Chicago $ 1,322,585 $6,970 $8.15 4.4% $ 1,266,381 $6,674 $7.81
------------ ------ ----- ----- ----------- ------ -----
Total $ 23,117,437 $3,290 $3.88 6.2% $21,759,259 $3,097 $3.66
============ ====== ===== ===== =========== ====== =====
Operating Efficiency 43.1% 42.2%
===== =====
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ---------
Dallas $ 11,854,705 $322 $0.39 1.3% $11,701,031 $318 $0.38
Atlanta $ 8,784,921 $446 $0.48 6.5% $ 8,249,222 $419 $0.45
Austin $ 2,949,253 $350 $0.48 0.0% $ 2,949,022 $350 $0.48
Indianapolis $ 3,097,912 $346 $0.42 1.4% $ 3,055,124 $341 $0.41
Eastern Kansas $ 3,074,801 $376 $0.44 -2.0% $ 3,137,641 $384 $0.45
Chicago $ 772,417 $339 $0.40 8.3% $ 713,297 $313 $0.37
------------ ---- ----- ----- ----------- ---- -----
Total $ 30,534,009 $362 $0.43 2.4% $29,805,337 $354 $0.42
============ ==== ===== ===== =========== ==== =====
Operating Margin 56.9% 57.8%
===== =====
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------- ------------
Dallas $ 559,163 $182 $0.22 -20.2% $ 700,546 $228 $0.28
Atlanta $ 231,358 $141 $0.15 20.4% $ 192,112 $117 $0.12
Austin $ 140,637 $201 $0.27 20.8% $ 116,405 $166 $0.23
Indianapolis $ 91,100 $122 $0.15 30.2% $ 69,946 $94 $0.11
Eastern Kansas $ 80,621 $118 $0.14 47.2% $ 54,781 $80 $0.09
Chicago $ 67,704 $357 $0.42 -29.6% $ 96,156 $507 $0.59
------------ ---- ----- ------ ---------- ---- -----
Total $ 1,170,583 $167 $0.20 -4.8% $1,229,946 $175 $0.21
============ ==== ===== ====== ========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
Excluding Sope IV, Autumn Chase II and Gleneagles II
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 1,703,773 $556 $0.67 21.0% $1,408,150 $ 459 $0.56
Atlanta $ 645,761 $394 $0.42 -0.2% $ 646,956 $ 394 $0.42
Austin $ 324,712 $463 $0.63 -1.9% $ 330,942 $ 472 $0.64
Indianapolis $ 361,336 $484 $0.59 14.9% $ 314,425 $ 421 $0.51
Eastern Kansas $ 259,626 $381 $0.44 16.4% $ 223,062 $ 328 $0.38
Chicago $ 279,917 $1,475 $1.73 0.1% $ 279,687 $1,474 $1.72
------------ ------ ----- ----- ---------- ------ -----
Total $ 3,575,124 $509 $0.60 11.6% $3,203,221 $ 456 $0.54
============ ====== ===== ===== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 3,008,678 $ 981 $1.19 6.2% $2,832,467 $ 924 $1.12
Atlanta $ 1,076,930 $ 656 $0.70 10.2% $ 977,058 $ 595 $0.64
Austin $ 621,891 $ 887 $1.20 -0.8% $ 626,823 $ 894 $1.21
Indianapolis $ 537,075 $ 719 $0.87 0.7% $ 533,484 $ 714 $0.87
Eastern Kansas $ 568,289 $ 834 $0.97 7.3% $ 529,650 $ 778 $0.90
Chicago $ 416,933 $2,197 $2.57 -1.9% $ 425,074 $2,240 $2.62
------------ ------ ----- ----- ---------- ------ -----
Total $ 6,229,796 $ 887 $1.05 5.2% $5,924,556 $ 843 $1.00
============ ====== ===== ==== ========== ====== =====
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED SEPTEMBER 30, 1996 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1995
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
<CAPTION>
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 94.9% -2.9% 97.8%
Atlanta 94.3% -2.1% 96.3%
Austin 94.3% -2.3% 96.5%
Houston 93.7% 4.8% 89.4%
Indianapolis 93.5% -2.7% 96.1%
Eastern Kansas 93.0% -2.7% 95.5%
Chicago 94.3% -3.6% 97.9%
----- ----- ------
Weighted Average 94.3% -2.3% 96.6%
===== ===== ======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $622 3.7% $600
Atlanta $719 5.7% $680
Austin $635 4.0% $611
Houston $696 1.0% $690
Indianapolis $565 2.1% $553
Eastern Kansas $649 4.3% $622
Chicago $932 1.6% $917
---- ----- ----
Weighted Average $656 3.9% $632
==== ===== ====
TOTAL PROPERTY REVENUES PER MONTH PER MONTH
- ----------------------- ---------- ---------
Dallas $ 7,563,361 $617 $0.75 1.9% $ 7,420,212 $605 $0.73
Atlanta $ 4,960,857 $707 $0.82 5.2% $ 4,716,833 $672 $0.78
Austin $ 2,838,928 $621 $0.87 2.3% $ 2,774,033 $607 $0.85
Houston $ 892,804 $679 $0.77 6.1% $ 841,726 $641 $0.73
Indianapolis $ 1,692,192 $566 $0.69 1.7% $ 1,663,792 $557 $0.68
Eastern Kansas $ 1,733,235 $636 $0.74 2.4% $ 1,692,888 $621 $0.72
Chicago $ 1,124,925 $992 $1.16 1.0% $ 1,113,333 $982 $1.15
------------ ---- ----- ----- ----------- ---- -----
Total $ 20,806,301 $650 $0.79 2.9% $20,222,816 $632 $0.77
============ ==== ===== ===== =========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
- CONTINUED
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 3,647,670 $3,569 $4.32 5.5% $3,458,253 $3,384 $4.09
Atlanta $ 1,779,651 $3,045 $3.51 -1.9% $1,813,590 $3,103 $3.58
Austin $ 1,266,644 $3,327 $4.66 0.6% $1,259,484 $3,308 $4.64
Houston $ 434,971 $3,972 $4.50 -7.0% $ 467,474 $4,269 $4.84
Indianapolis $ 666,464 $2,677 $3.25 6.0% $ 628,554 $2,524 $3.06
Eastern Kansas $ 713,068 $3,141 $3.65 6.7% $ 668,280 $2,944 $3.42
Chicago $ 633,354 $6,702 $7.87 0.9% $ 627,733 $6,643 $7.80
------------ ------ ----- ----- ---------- ------ -----
Total $ 9,141,821 $3,427 $4.15 2.4% $8,923,368 $3,346 $4.05
============ ====== ===== ===== ========== ====== =====
Operating Efficiency 43.9% 44.1%
===== =====
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ---------
Dallas $ 3,915,691 $319 $0.39 -1.2% $ 3,961,959 $323 $0.39
Atlanta $ 3,181,206 $454 $0.52 9.6% $ 2,903,243 $414 $0.48
Austin $ 1,572,284 $344 $0.48 3.8% $ 1,514,550 $331 $0.46
Houston $ 457,832 $348 $0.39 23.3% $ 374,251 $285 $0.32
Indianapolis $ 1,025,728 $343 $0.42 -0.9% $ 1,035,238 $346 $0.42
Eastern Kansas $ 1,020,167 $375 $0.44 -0.4% $ 1,024,608 $376 $0.44
Chicago $ 496,560 $438 $0.51 2.3% $ 485,599 $428 $0.50
------------ ---- ----- ----- ----------- ---- -----
Total $ 11,669,469 $365 $0.44 3.3% $11,299,447 $353 $0.43
============ ==== ===== ===== =========== ==== ====
Operating Margin 56.1% 55.9%
===== =====
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 248,991 $244 $0.29 -23.0% $323,467 $317 $0.38
Atlanta $ 57,293 $ 98 $0.11 -25.3% $ 76,659 $131 $0.15
Austin $ 59,646 $157 $0.22 -11.1% $ 67,061 $176 $0.25
Houston $ 20,715 $189 $0.21 -6.7% $ 22,201 $203 $0.23
Indianapolis $ 40,088 $161 $0.20 19.0% $ 33,683 $135 $0.16
Eastern Kansas $ 43,681 $192 $0.22 95.4% $ 22,351 $98 $0.11
Chicago $ 26,408 $279 $0.33 -49.2% $ 51,956 $550 $0.65
------------ ---- ----- ------ -------- ---- -----
Total $ 496,822 $186 $0.23 -16.8% $597,378 $224 $0.27
============ ==== ===== ====== ======== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
- CONTINUED
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
7/1/96-9/30/96 7/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 645,545 $ 632 $0.76 26.2% $ 511,703 $ 501 $0.61
Atlanta $ 240,181 $ 411 $0.47 -12.2% $ 273,529 $ 468 $0.54
Austin $ 192,833 $ 506 $0.71 -16.6% $ 231,155 $ 607 $0.85
Houston $ 27,577 $ 252 $0.29 -39.8% $ 45,838 $ 419 $0.47
Indianapolis $ 144,244 $ 579 $0.70 16.5% $ 123,867 $ 497 $0.60
Eastern Kansas $ 86,551 $ 381 $0.44 -5.7% $ 91,773 $ 404 $0.47
Chicago $ 123,269 $1,304 $1.53 -17.3% $ 148,981 $1,577 $1.85
------------ ------ ----- ----- ---------- ------ -----
Total $ 1,460,200 $ 547 $0.66 2.3% $1,426,847 $ 535 $0.65
============ ====== ===== ===== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,014,894 $ 993 $1.20 7.0% $ 948,165 $ 928 $1.12
Atlanta $ 347,036 $ 594 $0.68 2.0% $ 340,080 $ 582 $0.67
Austin $ 332,715 $ 874 $1.23 0.6% $ 330,666 $ 868 $1.22
Houston $ 170,328 $1,556 $1.76 -0.3% $ 170,832 $1,560 $1.77
Indianapolis $ 179,025 $ 719 $0.87 0.7% $ 177,828 $ 714 $0.87
Eastern Kansas $ 192,334 $ 847 $0.98 8.9% $ 176,550 $ 778 $0.90
Chicago $ 203,115 $2,149 $2.52 4.5% $ 194,337 $2,056 $2.41
------------ ------ ----- ---- ---------- ------ -----
Total $ 2,439,447 $ 915 $1.11 4.3% $2,338,458 $ 877 $1.06
============ ====== ===== ==== ========== ====== =====
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
NINE MONTHS ENDED SEPTEMBER 30, 1996 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1995
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
<CAPTION>
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 95.0% -1.5% 96.5%
Atlanta 94.5% -2.0% 96.4%
Austin 94.6% -1.7% 96.3%
Houston 91.7% 6.0% 86.5%
Indianapolis 93.7% -0.6% 94.2%
Eastern Kansas 91.6% -3.1% 94.6%
Chicago 94.4% -1.0% 95.4%
----- ----- -----
Weighted Average 94.3% -1.4% 95.6%
===== ===== =====
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $617 4.2% $592
Atlanta $710 5.7% $671
Austin $632 5.2% $601
Houston $697 2.7% $679
Indianapolis $565 3.6% $545
Eastern Kansas $643 4.8% $613
Chicago $932 3.9% $897
---- ---- ----
Weighted Average $651 4.6% $622
==== ==== ====
TOTAL PROPERTY REVENUES PER MONTH PER MONTH
- ----------------------- --------- ---------
Dallas $22,400,440 $609 $0.74 3.6% $21,622,558 $588 $0.71
Atlanta $14,661,031 $697 $0.80 5.4% $13,911,519 $661 $0.76
Austin $ 8,442,100 $616 $0.86 4.3% $ 8,091,006 $590 $0.83
Houston $ 2,603,915 $661 $0.75 10.8% $ 2,349,694 $596 $0.68
Indianapolis $ 5,000,282 $558 $0.68 3.5% $ 4,831,888 $539 $0.65
Eastern Kansas $ 5,052,868 $618 $0.72 2.6% $ 4,925,163 $603 $0.70
Chicago $ 3,343,558 $983 $1.15 5.4% $ 3,171,105 $932 $1.09
------------ ---- ----- ----- ----------- ---- -----
Total $61,504,194 $641 $0.78 4.4% $58,902,932 $613 $0.74
=========== ==== ===== ===== =========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
- CONTINUED
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 10,545,735 $3,440 $4.16 6.3% $ 9,921,528 $3,236 $3.91
Atlanta $ 5,421,230 $3,092 $3.57 4.6% $ 5,183,434 $2,956 $3.41
Austin $ 3,728,088 $3,264 $4.58 6.6% $ 3,496,199 $3,061 $4.29
Houston $ 1,368,641 $4,166 $4.72 5.8% $ 1,293,608 $3,938 $4.46
Indianapolis $ 1,902,369 $2,547 $3.09 7.1% $ 1,776,763 $2,379 $2.89
Eastern Kansas $ 1,978,068 $2,905 $3.38 10.7% $ 1,787,521 $2,625 $3.05
Chicago $ 1,968,907 $6,945 $8.16 5.5% $ 1,866,120 $6,582 $7.73
------------ ------ ----- ------ ----------- ------ -----
Total $ 26,913,037 $3,363 $4.08 6.3% $25,325,174 $3,165 $3.84
============ ====== ===== ====== =========== ====== =====
Operating Efficiency 43.8% 43.0%
===== =====
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ---------
Dallas $11,854,705 $322 $0.39 1.3% $11,701,031 $318 $0.38
Atlanta $ 9,239,801 $439 $0.51 5.9% $ 8,728,084 $415 $0.48
Austin $ 4,714,012 $344 $0.48 2.6% $ 4,594,807 $335 $0.47
Houston $ 1,235,275 $313 $0.36 17.0% $ 1,056,087 $268 $0.30
Indianapolis $ 3,097,912 $346 $0.42 1.4% $ 3,055,124 $341 $0.41
Eastern Kansas $ 3,074,801 $376 $0.44 -2.0% $ 3,137,641 $384 $0.45
Chicago $ 1,364,104 $401 $0.47 4.5% $ 1,304,985 $384 $0.45
----------- ---- ----- ----- ----------- ---- -----
Total $34,580,610 $360 $0.44 3.0% $33,577,758 $350 $0.42
=========== ==== ===== ===== =========== ==== =====
Operating Margin 56.2% 57.0%
===== =====
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ----------- ------------
Dallas $ 559,163 $182 $0.22 -20.2% $ 700,546 $228 $0.28
Atlanta $ 249,272 $142 $0.16 25.0% $ 199,370 $114 $0.13
Austin $ 187,716 $164 $0.23 12.7% $ 166,520 $146 $0.20
Houston $ 65,016 $198 $0.22 104.3% $ 31,825 $ 97 $0.11
Indianapolis $ 91,100 $122 $0.15 30.2% $ 69,946 $ 94 $0.11
Eastern Kansas $ 80,621 $118 $0.14 47.2% $ 54,781 $ 80 $0.09
Chicago $ 86,648 $306 $0.36 -41.1% $ 147,161 $519 $0.61
------------ ---- ----- ------ ---------- ---- -----
Total $ 1,319,536 $165 $0.20 -3.7% $1,370,148 $171 $0.21
============ ==== ===== ====== ========== ==== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
- CONTINUED
Excluding Sope IV, Autumn Chase II, Gleneagles II, Greenwood Forest, Pleasant Hill, Willeo Creek, Windbrooke,
Chevy Chase and Willowbrook
1/1/96-9/30/96 1/1/95-9/30/95
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 1,703,773 $ 556 $0.67 21.0% $1,408,150 $ 459 $0.56
Atlanta $ 725,501 $ 414 $0.48 5.6% $ 686,792 $ 392 $0.45
Austin $ 537,400 $ 470 $0.66 -5.6% $ 569,383 $ 498 $0.70
Houston $ 99,037 $ 301 $0.34 2.4% $ 96,724 $ 294 $0.33
Indianapolis $ 361,336 $ 484 $0.59 14.9% $ 314,425 $ 421 $0.51
Eastern Kansas $ 259,626 $ 381 $0.44 16.4% $ 223,062 $ 328 $0.38
Chicago $ 346,661 $1,223 $1.44 -2.3% $ 354,849 $1,252 $1.47
------------ ------ ----- ----- ---------- ------ -----
Total $ 4,033,334 $ 504 $0.61 10.4% $3,653,386 $ 457 $0.55
============ ====== ===== ===== ========== ===== ======
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 3,008,678 $ 981 $1.19 6.2% $2,832,467 $ 924 $1.12
Atlanta $ 1,122,272 $ 640 $0.74 10.0% $1,020,240 $ 582 $0.67
Austin $ 998,145 $ 874 $1.23 0.6% $ 991,998 $ 868 $1.22
Houston $ 518,985 $1,580 $1.79 1.3% $ 512,496 $1,560 $1.77
Indianapolis $ 537,075 $ 719 $0.87 0.7% $ 533,484 $ 714 $0.87
Eastern Kansas $ 568,289 $ 834 $0.97 7.3% $ 529,650 $ 778 $0.90
Chicago $ 647,024 $2,282 $2.68 2.2% $ 633,307 $2,234 $2.62
------------ ------ ----- ----- ---------- ------ -----
Total $ 7,400,469 $ 925 $1.12 4.9% $7,053,642 $ 882 $1.07
============ ====== ===== ===== ========== ====== =====
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION
As of September 30, 1996
<CAPTION>
Qtr ended
Sept 30, 1996
Approx- Average Qtr ended
imate Rental Rate Sept 30
Number Rentable Average ------------- 1996
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DALLAS/FT.
WORTH, TX
- ----------
Amli:
at Autumn Chase Carrollton, TX 1991 1987 226 180,868 800 $640 $0.80 92.8%
lease lease lease
at Autumn Chase II Carrollton, TX 1996 224 193,420 863 up up up
at Bear Creek Euless, TX 1989 1986 350 275,010 786 565 0.72 94.9%
at Chase Oaks Plano, TX 1994 1986 250 193,736 775 660 0.85 94.9%
at Gleneagles Dallas, TX 1988 1987 326 274,300 841 618 0.73 97.8%
on the Green Ft. Worth, TX 1994 1990/93 424 358,560 846 679 0.80 96.3%
at Nantucket Dallas, TX 1988 1986 312 222,208 712 527 0.74 94.8%
of North Dallas Dallas, TX 1989/90 1985/86 1,032 905,590 878 624 0.71 95.2%
at Reflections Irving, TX 1993 1986 212 174,332 822 647 0.79 90.0%
on Rosemeade Dallas, TX 1990 1987 236 205,382 870 635 0.73 95.5%
on Timberglen Dallas, TX 1990 1985 260 201,198 774 572 0.74 95.5%
at Valley Ranch Irving TX 1990 1985 460 389,940 848 659 0.78 93.8%
----- --------- --- ---- ----- ------
Subtotal-Dallas/
Ft. Worth, TX 4,312 3,574,544 829 $622 $0.75 94.9%
----- --------- --- ---- ----- ------
ATLANTA, GA
- -----------
Amli:
at Sope Creek Marietta, GA 1982/83 463 424,837 918 $661 $0.72 91.9%
at Sope Creek
Phase IV Marietta, GA 1995 232 207,556 895 747 0.84 94.7%
at Spring Creek Dunwoody, GA 1985/86/ 1,180 1,080,560 916 702 0.77 95.4%
87/89
at Vinings Atlanta, GA 1992 1985 208 229,708 1,104 783 0.71 94.5%
at West Paces Atlanta, GA 1993 1992 337 314,707 934 861 0.92 93.6%
------ --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 2,420 2,257,368 933 $728 $0.78 94.3%
------ --------- ----- ---- ----- ------
Qtr ended
Sept 30, 1996
Approx- Average Qtr ended
imate Rental Rate Sept 30
Number Rentable Average ------------- 1996
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
AUSTIN, TEXAS
- -------------
Amli:
at the Arboretum Austin, TX 1986 1983 231 178,116 771 $689 $0.89 93.2%
in Great Hills Austin, TX 1991 1985 344 256,892 747 672 0.90 93.8%
at Martha's
Vineyard Austin, TX 1992 1986 360 253,328 704 625 0.89 90.2%
----- ------- --- ---- ----- -----
Subtotal-
Austin, TX 935 688,336 736 $658 $0.89 92.3%
----- ------- --- ---- ----- -----
EASTERN KANSAS
- --------------
Amli:
at Alvamar Lawrence, KS 1994 1989 152 125,800 828 $651 $0.79 93.4%
at Crown Colony Topeka, KS 1994 1986 156 120,984 776 553 0.71 91.5%
at Regents Center Overland Park, KS 1994 1991-95 300 274,170 914 744 0.81 92.1%
at Sherwood Topeka, KS 1994 1993 300 260,340 868 602 0.69 94.3%
---- ------- --- --- ----- -----
Subtotal
-Eastern KS 908 781,294 860 $649 $0.75 93.0%
---- ------- --- ---- ----- -----
INDIANAPOLIS, IN
- ----------------
Amli:
at Riverbend Indianapolis, IN1992/93 1983/85 996 820,712 824 $565 $0.69 93.5%
---- ------- --- ---- ----- -----
CHICAGO, IL
- ------------
Amli:
at Park Sheridan Chicago, IL 1989 1986 253 216,315 855 $875 $1.02 94.1%
---- ------- --- ---- ----- -----
TOTAL
PROPERTIES 9,824 8,338,569 849 $656 $0.77 94.2%
===== ========= === ==== ===== =====
Qtr ended
Sept 30, 1996
Approx- Average Qtr ended
imate Rental Rate Sept 30
Number Rentable Average ------------- 1996
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
CO-INVESTMENT
PROPERTIES
- --------------
ATLANTA, GA
Amli: lease lease lease
at Pleasant Hill Atlanta 1996 502 501,816 1,000 up up up
at Towne Creek Gainesville, GA 1989 150 121,722 811 $625 0.77 93.8%
at Willeo Creek Roswell, GA 1995 1989 242 297,302 1,229 771 0.63 95.7%
---- ------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 894 920,840 1,030 $715 $0.67 95.0%
---- ------- ----- ---- ----- ------
CHICAGO, IL
- -----------
Amli:
at Prairie
Court Chicago, IL 1987 125 105,578 845$1,048 $1.24 94.9%
at Windbrooke Chicago, IL 1995 1987 236 213,160 903 914 1.01 94.2%
at Chevy Chase Chicago, IL 1996 1988 592 480,676 812 876 1.01 94.4%
at Willowbrook Chicago, IL 1996 1987 488 418,404 857 862 1.01 93.5%
---- ------- --------- ----- -----
Subtotal-
Chicago, IL 1,441 1,217,818 845 $892 $1.06 94.1%
----- --------- --- ---- ----- -----
AUSTIN, TX
- ----------
Amli:
at Park Place Austin, TX 1994 1985 588 397,968 677 $599 $0.89 97.6%
------ --------- --- ---- ----- -----
Qtr ended
Sept 30, 1996
Approx- Average Qtr ended
imate Rental Rate Sept 30
Number Rentable Average ------------- 1996
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
HOUSTON, TX
Amli at:
Champions Centre Houston, TX 1994 1994 192 164,480 857 $720 $0.84 94.3%
Champions Park Houston, TX 1994 1991 246 221,646 901 678 0.75 93.2%
Greenwood Forest Houston, TX 1995 1995 316 310,844 984 724 0.74 90.9%
---- ------- --- ---- ----- -----
Subtotal-
Houston, TX 754 696,970 924 $708 $0.77 92.5%
-------------- ---- ---- ----- -----
TOTAL CO-INVESTMENT
PROPERTIES 3,677 3,233,596 879 $772 $0.90 94.5%
================ === ==== ===== =====
TOTAL 13,50111,572,165 857 $685 $0.80 94.2%
================ === ==== ===== =====
<FN>
Note: Weighted average rental rate and weighted average occupancy exclude Autumn Chase II and Pleasant Hill
which were in lease up during this quarter.
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITY
THIRD QUARTER 1996
<CAPTION>
Total Construc- Percent
Number Cost Esti- Percent tion First Comple- Stabili- Construc-
of (mil- mated Owner- Start Units tion zation tion Percent
Community Name Units lions) Yield ship Date Occupied Date Date Complete Leased
- -------------- ------ ------ ----- ------- --------- -------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FINAL
LEASE-UP
ATLANTA,
GEORGIA
- -------
AMLI at:
Pleasant Hill 502 $26.6 12.1% 40% 3Q/94 2Q/95 3Q/96 4Q/96 100% 99%
DALLAS,
TEXAS
- -------
AMLI at:
Autumn Chase II 224 $11.2 11.0% 100% 1Q/95 4Q/95 3Q/96 4Q/96 100% 98%
UNDER
CONSTRUCTION
- ------------
ATLANTA,
GEORGIA
- -------
Amli at:
Barrett Lakes 446 $27.8 10.2% 35% 3Q/95 4Q/96 4Q/97 2Q/98 36% 4%
River Park 222 $15.4 9.6% 40% 4Q/95 4Q/96 2Q/97 4Q/97 40% N/A
Peachtree City 312 $21.9 10.0% 100% 3Q/96 2Q/97 1Q/98 3Q/98 7% N/A
Northwinds I 400 $26.8 10.0% 100% 3Q/96 2Q/97 2Q/98 4Q/98 2% N/A
DALLAS, TEXAS
- -------------
Amli at:
Gleaneagles II 264 $13.8 10.9% 100% 3Q/95 2Q/96 4Q/96 2Q/97 86% 68%
Fossil Creek 384 $23.7 10.1% 25% 3Q/96 2Q/97 1Q/98 1Q/99 4% N/A
Autumn Chase III 240 $14.1 10.5% 100% 3Q/96 2Q/97 4Q/97 2Q/98 0% N/A
Total Construc- Percent
Number Cost Esti- Percent tion First Comple- Stabili- Construc-
of (mil- mated Owner- Start Units tion zation tion Percent
Community Name Units lions) Yield ship Date Occupied Date Date Complete Leased
- -------------- ------ ------ ----- ------- --------- -------- ------- -------- --------- -------
AURORA, ILLINOIS
- ----------------
Amli at:
Aurora
Crossing 272 $24.5 9.8% 25% 2Q/96 4Q/96 3Q/97 4Q/97 23% N/A
OVERLAND PARK,
KANSAS
- --------------
Amli at:
Regents
Center III 124 $7.7 10.3% 100% 3Q/95 3Q/96 4Q/96 2Q/97 69% 8%
Crown Colony II 64 $3.6 8.0% 100% 2Q/96 1Q/97 2Q/97 3Q/97 23% N/A
----- ------ ----- ---- ----- ----- ----- ----- --- ----
Total/Average 2,728 $179.3 10.1%
====== ====== =====
Total Construc- Percent
Number Cost Esti- Percent tion First Comple- Stabili- Construc-
of (mil- mated Owner- Start Units tion zation tions Percent
Community Name Units lions) Yield ship Date Occupied Date Date Complete Leased
- -------------- ------ ------ ----- ------- --------- -------- ------- -------- --------- -------
PLANNING STAGE
- --------------
ATLANTA, GEORGIA
- ----------------
Amli at:
Northwinds
II & III 400
DALLAS,
TEXAS
- -------
Amli on:
the Parkway
(Rosemeade II) 234
AUSTIN, TEXAS
- -------------
Amli at:
Wells Branch 576
AURORA,
ILLINOIS
- --------
Amli at:
Oakhurst North 464
<FN>
The following is a "Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995 and Section 21E of the Securities Exchange Act of 1934. The projections
contained in the table above that are not historical facts are forward-looking statements.
Risks associated with the Company's development, construction and lease-up activities, which
could impact the forward-looking statements made include: development opportunities may be
abandoned; construction costs of a community may exceed original estimates, possibly making
the community uneconomical; construction and lease-up may not be completed on schedule,
resulting in increased debt service and construction costs; estimates of the costs of
improvements to bring an acquired property up to the standards established for the market
position intended for that property may prove inaccurate.
</TABLE>
