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, 1997
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) 443-1477
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 16,570,120 as of September 30, 1997.
<PAGE>
INDEX
PART I: FINANCIAL INFORMATION
Item 1: Financial Statements (Unaudited)
Consolidated Balance Sheets as of
September 30, 1997 and December 31, 1996 . . . . 3
Consolidated Statements of Operations for
the three and nine months ended
September 30, 1997 and 1996. . . . . . . . . . . 5
Consolidated Statements of Cash Flows for
the nine months ended September 30, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . 7
Notes to Consolidated Financial Statements . . . . 9
Item 2: Management's Discussion and
Analysis of Financial Condition and
Results of Operations. . . . . . . . . . . . . . 26
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 36
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . 37
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
(Dollars in thousands, except share data)
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------- ------------
<S> <C> <C>
ASSETS:
Rental apartments:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 67,268 59,854
Depreciable property. . . . . . . . . . . . . . . . . . . . . . . . . 428,428 373,140
---------- ----------
495,696 432,994
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . (60,004) (50,478)
---------- ----------
435,692 382,516
Property under development. . . . . . . . . . . . . . . . . . . . . . . 68,630 62,525
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . 47,349 30,669
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . 1,516 10,291
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,920 1,737
Deferred expenses, net. . . . . . . . . . . . . . . . . . . . . . . . . 3,002 2,139
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,539 14,480
---------- ----------
Total Assets $ 574,648 504,357
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Debt (note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 235,692 202,013
Accrued interest payable. . . . . . . . . . . . . . . . . . . . . . . . 1,035 1,161
Accrued real estate taxes payable . . . . . . . . . . . . . . . . . . . 7,665 6,978
Construction costs payable. . . . . . . . . . . . . . . . . . . . . . . 7,194 2,263
Security deposits and prepaid rents . . . . . . . . . . . . . . . . . . 2,377 2,757
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,438 2,292
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . 256,401 217,464
---------- ----------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS - CONTINUED
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------- ------------
Commitments and contingencies
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,746 44,871
---------- ----------
SHAREHOLDERS' EQUITY:
Preferred shares of beneficial interest, $.01 par value,
1,500,000 authorized, 1,200,000 issued and
1,100,000 outstanding . . . . . . . . . . . . . . . . . . . . . . . . 11 11
Shares of beneficial interest, $.01 par value, 148,500,000
authorized, 16,570,120 and 14,812,035 common shares issued
and outstanding, respectively . . . . . . . . . . . . . . . . . . . . 166 148
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . 339,048 301,584
Employees and trustees notes. . . . . . . . . . . . . . . . . . . . . . (3,358) (486)
Retained earnings (deficit) . . . . . . . . . . . . . . . . . . . . . . 10,719 (5,455)
Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75,085) (53,780)
---------- ----------
Total shareholders' equity. . . . . . . . . . . . . . . . . . 271,501 242,022
---------- ----------
Total Liabilities and Shareholders' Equity. . . . . . . . . . $ 574,648 504,357
========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
(Dollars in thousands, except share data)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------------ ------------------------
1997 1996 1997 1996
--------- -------- --------- --------
<S> <C> <C> <C> <C>
Revenues:
Property:
Rental. . . . . . . . . . . . . . . . . . . . $ 20,035 18,223 57,996 53,420
Other . . . . . . . . . . . . . . . . . . . . 1,167 902 3,161 2,427
Interest and share of income from
Service Companies. . . . . . . . . . . . . . . 472 208 989 425
Other interest. . . . . . . . . . . . . . . . . 172 24 399 149
Share of income from co-investment
partnerships . . . . . . . . . . . . . . . . . 224 174 557 383
Fees from co-investment partnerships
and other. . . . . . . . . . . . . . . . . . . 912 541 2,043 1,213
-------- -------- -------- --------
Total revenues. . . . . . . . . . . . . 22,982 20,072 65,145 58,017
-------- -------- -------- --------
Expenses:
Personnel . . . . . . . . . . . . . . . . . . . 1,953 1,704 5,498 5,025
Advertising and promotion . . . . . . . . . . . 559 519 1,548 1,469
Utilities . . . . . . . . . . . . . . . . . . . 1,097 1,165 3,031 3,232
Building repairs and maintenance and
maintenance services . . . . . . . . . . . . . 1,706 1,344 4,269 3,641
Landscaping and grounds maintenance . . . . . . 474 436 1,353 1,291
Real estate taxes . . . . . . . . . . . . . . . 2,167 2,136 6,801 6,429
Insurance . . . . . . . . . . . . . . . . . . . 243 251 641 738
Property management fees. . . . . . . . . . . . 539 478 1,547 1,396
Other operating expenses. . . . . . . . . . . . 283 303 794 904
Interest. . . . . . . . . . . . . . . . . . . . 2,619 3,167 8,151 8,981
Amortization of deferred costs. . . . . . . . . 105 253 435 1,104
Depreciation . . . . . . . . . . . . . . . . . 3,328 2,959 9,581 8,354
General and administrative. . . . . . . . . . . 680 575 2,153 1,703
-------- -------- -------- --------
Total expenses. . . . . . . . . . . . . 15,753 15,290 45,802 44,267
-------- -------- -------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------------ ------------------------
1997 1996 1997 1996
--------- -------- --------- --------
Income before non-recurring gain. . . . . . . . . 7,229 4,782 19,343 13,750
Nonrecurring gain . . . . . . . . . . . . . . . . -- -- -- 584
-------- -------- -------- --------
Income before minority interest and
extraordinary item. . . . . . . . . . . . . . . 7,229 4,782 19,343 14,334
Minority interest . . . . . . . . . . . . . . . . 1,062 878 2,973 2,605
-------- -------- -------- --------
Income before extraordinary item. . . . . . . . . 6,167 3,904 16,370 11,729
Extraordinary item -
loss on early extinguishment of debt
(net of minority interest). . . . . . . . . . . 19 -- 196 1,118
-------- -------- -------- --------
Net income. . . . . . . . . . . . . . . 6,148 3,904 16,174 10,611
Less income attributable to Series A
preferred shares. . . . . . . . . . . . . . . . 473 473 1,419 1,273
-------- -------- -------- --------
Net income attributable to
common shares . . . . . . . . . . . . $ 5,675 3,431 14,755 9,338
======== ======== ======== ========
Net income per common share:
Before extraordinary item . . . . . . . . . . . $ .35 .28 .97 .88
Extraordinary item. . . . . . . . . . . . . . . $ -- -- (.01) (.09)
Net income per common share . . . . . . . . . . $ .35 .28 .96 .79
Dividends declared and paid per common share. . . $ .43 .43 1.29 1.29
======== ======== ======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED)
(Dollars in thousands)
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,174 10,611
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,581 8,354
Amortization of deferred costs. . . . . . . . . . . . . . . . . . . . . 435 1,104
Income from partnerships. . . . . . . . . . . . . . . . . . . . . . . . (555) (383)
(Income) loss from Service Companies. . . . . . . . . . . . . . . . . . (260) 159
Non-recurring gain. . . . . . . . . . . . . . . . . . . . . . . . . . . -- (584)
Loss on early extinguishment of debt. . . . . . . . . . . . . . . . . . 211 1,365
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,936 2,357
Changes in assets and liabilities:
Increase in deferred costs. . . . . . . . . . . . . . . . . . . . . . . (309) (11)
(Increase) decrease in security deposits. . . . . . . . . . . . . . . . (183) 105
Decrease (increase) in other assets . . . . . . . . . . . . . . . . . . 168 (616)
(Decrease) increase in accrued interest payable . . . . . . . . . . . . (127) 43
Increase in accrued real estate taxes . . . . . . . . . . . . . . . . . 190 552
Decrease in tenant security deposits and prepaid rents. . . . . . . . . (380) (70)
Increase in other liabilities . . . . . . . . . . . . . . . . . . . . . 147 613
-------- -------
Net cash provided by operating activities . . . . . . . . . . . . 28,028 23,599
-------- -------
Cash flows for investing activities:
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . . (10,723) (14,887)
Cash distributions from partnerships. . . . . . . . . . . . . . . . . . . 2,015 1,111
Advances to affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . (1,351) (2,110)
Earnest money deposits. . . . . . . . . . . . . . . . . . . . . . . . . . (875) 325
Capital expenditures - existing properties. . . . . . . . . . . . . . . . (2,705) (1,181)
Acquisition properties. . . . . . . . . . . . . . . . . . . . . . . . . . (35,281) --
Properties under development, net of
reimbursable costs from co-investors . . . . . . . . . . . . . . . . . . (36,416) (26,518)
Increase in construction costs payable. . . . . . . . . . . . . . . . . . 6,273 1,063
-------- -------
Net cash used in investing activities . . . . . . . . . . . . . . (79,063) (42,197)
-------- -------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
1997 1996
-------- --------
Cash flows from financing activities:
Debt proceeds, net of financing costs . . . . . . . . . . . . . . . . . . 125,788 142,022
Debt repayments, including prepayment penalties . . . . . . . . . . . . . (93,623) (128,867)
Proceeds from shares offering, net of issuance costs. . . . . . . . . . . 37,447 23,918
Net proceeds from treasury lock contracts . . . . . . . . . . . . . . . . -- 1,424
Net proceeds from sale of interest rate cap contracts . . . . . . . . . . -- 1,310
Net proceeds from Executive Share Purchase Plan . . . . . . . . . . . . . 295 --
Employee notes for stock purchase . . . . . . . . . . . . . . . . . . . . (2,500) --
Principal receipts on employee notes. . . . . . . . . . . . . . . . . . . 10 --
Distributions to minority interest. . . . . . . . . . . . . . . . . . . . (3,853) (3,612)
Dividends paid on common shares . . . . . . . . . . . . . . . . . . . . . (19,885) (15,168)
Dividends paid on preferred shares. . . . . . . . . . . . . . . . . . . . (1,419) (1,065)
-------- -------
Net cash provided by financing activities . . . . . . . . . . . . 42,260 19,962
-------- -------
Net (decrease) increase in cash and cash equivalents. . . . . . . . . . . . (8,775) 1,364
Cash and cash equivalents at beginning of period. . . . . . . . . . . . . . 10,291 2,279
-------- -------
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . . . $ 1,516 3,643
======== =======
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest, net of amounts capitalized . . $ 8,277 8,938
======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997 AND 1996
(Unaudited)
(Dollars in thousands, except 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, 1997 and December 31, 1996 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, 1996 Annual Report on Form 10-K filed with the Securities and Exchange
Commission. The results for the nine months ended September 30, 1997 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 85% 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. Through September 30, 1997, 203,317
OP Units have been converted to Common Shares (34,252 during the nine
months ended September 30, 1997).
During the nine months ended September 30, 1997, a total of 29,133
new common shares were issued to certain officers and trustees pursuant to
the Company's Executive Share Purchase Plan.
In February 1997, the Company provided recourse loans totalling
$2,500 to four Officers/Trustees, as approved by the Board of Trustees, for
the purchase on the open market of 105,000 of the Company's common shares
of beneficial interests. These loans bear interest at 6.23% and have a
term of nine years from February 28, 1997.
On March 13, 1997, the Operating Partnership issued 45,549 OP Units
and paid $2,520 in cash for the acquisition of 29 acres of land and 40
apartment units in Gwinnett County, Georgia.
On March 25, 1997, the Operating Partnership issued 43,819 OP Units
and paid $1,915 in cash for the purchase of an interest in AMLI at
Verandah, a 538-unit apartment community in Arlington, Texas. This
property was acquired through a co-investment partnership in which the
Operating Partnership owns a 35% interest.
<PAGE>
On July 11, 1997, the Company completed an offering of 1,500,000
common shares at a price of $23.4375 per share. In addition, the
underwriters exercised their over-allotment option for 194,700 shares. The
net proceeds of $37,500 were used principally to pay down the balance
outstanding under the Company's $100,000 Unsecured Line and to fund
acquisition and development activities.
At September 30, 1997, there were a total of 16,570,120 common shares
and 1,100,000 preferred shares issued and outstanding, and the Company
owned 17,670,120 OP Units (approximately 85% of the total 20,675,333 OP
Units outstanding).
The Company's management has made a number of estimates and
assumptions relating to the reporting of assets and liabilities, disclosure
of contingent assets and liabilities and the reported amounts of revenues
and expenses during the report periods to prepare these financial
statements in conformity with generally accepted accounting principles.
Actual amounts realized or paid could differ from these estimates.
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). Twelve of the twenty-four
completed, wholly-owned communities are pledged to secure debt (see note
5).
In conjunction with acquisitions of stabilized 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.
Such costs are capitalized in accordance with the Company's policy.
On September 30, 1997, the Company acquired a 100% interest in the
partnership that owns Lantana Ridge, a 354-unit apartment community in
Austin, Texas. The purchase price of $23,838 was paid in cash.
On June 11, 1997, the Company acquired Paces North, a 152 apartment
home community adjacent to AMLI at Vinings in Smyrna, Georgia. The
operations of Paces North have been combined with AMLI at Vinings and the
newly combined community contains a total of 360 apartment homes. The
purchase price of $8,900 was paid in cash. In addition, the Company
anticipates that it will spend approximately $250 for capital improvements.
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
consolidated financial statements.
<PAGE>
Properties Under Development
Land being planned for development and all apartment homes in a new
community or new phase is reported as "property under development" until
the entire community or new phase is substantially complete and stabilized
(generally 95% occupancy). Upon stabilization, all apartment homes in the
community or new phase are reported as "rental apartments".
Regardless of whether or not 95% occupancy is achieved, a community
or new phase will be reported as "rental apartments" no later than six
months following substantial completion of construction.
At September 30, 1997, 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 1998. Properties under
development are as follows:
<PAGE>
<TABLE>
<CAPTION>
NUMBER NUMBER TOTAL
OF OF EXPENDED
COMMUNITY LOCATION ACRES UNITS THRU 9/30/97
- --------- -------- ------ ------ -------------
<S> <C> <C> <C> <C>
Wholly-Owned:
Development Communities:
AMLI at AutumnChase III Carrollton, TX 24 240 $ 8,226
AMLI at Peachtree City Atlanta, GA 26 312 15,157
AMLI on the Parkway Dallas, TX 10 240 2,531
AMLI at Wells Branch Austin, TX 29 576 8,508
AMLI at Oakhurst Aurora, IL 29 464 10,781
AMLI at Park Creek Gainesville, GA 20 200 3,113
--- ----- --------
Total Development Communities 138 2,032 48,316
--- ----- --------
Land held for future development and Other:
AMLI at Fossil Creek II Ft. Worth, TX 27 520 3,376
AMLI at Hedgecoxe Plano, TX 18 240 1,965
AMLI at South Gwinnett Gwinnett County, GA 22 216 1,926
AMLI at Spring Creek V Atlanta, GA 20 160 1,106
Vinings Square (1) Overland Park, KS 14 156 11,941
--- ----- --------
Total land held for future development and Other 101 1,292 20,314
--- ----- --------
Total Wholly-Owned 239 3,324 68,630
--- ----- --------
Co-Investments (Company Ownership Percentage):
AMLI at Aurora Crossing (25%) Aurora, IL 18 272 24,095
AMLI at Barrett Lakes (35%) Cobb County, GA 54 446 26,131
AMLI at Fossil Creek (25%) Ft. Worth, TX 19 384 19,943
AMLI at Northwinds (2) Atlanta, GA 80 800 19,516
--- ----- --------
Total Co-Investments 171 1,902 89,685
--- ----- --------
Total 410 5,226 $158,315
=== ===== ========
<PAGE>
<FN>
(1) The construction and development of this property is financed entirely by the Company. The loan is
accounted for as an acquisition, development and construction loan and all costs are included in the Company's
consolidated financial statements.
(2) AMLI at Northwinds was conveyed at cost to a 35% co-investment partnership in September 1997.
</TABLE>
<PAGE>
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, 1997 and 1996 total interest
capitalized was $3,495 and $2,265, respectively. Net of amounts
capitalized, total interest incurred during the nine months ended September
30, 1997 and 1996 aggregated $8,151 and $8,981, 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, 1997 include
$33 in unamortized cost of an interest rate cap contract which limits the
Company's exposure to increasing rates on $5,845 of floating rate debt
through February 15, 1998.
Interest Rate Limitation Contracts
The Company has used 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, 1997, the Company was a party to an interest rate cap
agreement for $5,845 notional amount which entitles the Company to receive
from a counterparty on a monthly basis the amount, if any, by which the
Company's interest payments on certain floating rate debt through February
15, 1998 exceed capped amounts. At September 30, 1997, the approximate
value of this interest rate cap agreement was $37.
OTHER ASSETS
At September 30, 1997, other assets consisted primarily of $8,500 in 13%
interest-only notes receivable from the Service Companies, $1,510 in other
current receivables from the Service Companies and other affiliates, $2,204
in development fees receivable from affiliated co-investment partnerships,
$550 in restricted cash, $517 in tax escrow deposits and $1,550 in earnest
money deposits. The Company believes that the carrying amounts of its
receivable from the Service Companies and other affiliates reasonably
approximate their fair values.
On July 29, 1997, the Company sold to one of the Service Companies the
contract rights to acquire 28 acres of land in Dallas, Texas. The Company
had acquired these rights in 1996 but has decided not to develop an
additional apartment community on this site as originally intended. The
$600 selling price was financed entirely by additional note receivable from
the Service Company. No gain on this sale will be recognized until the
Service Company realizes its investment from the sale of the underlying
property to a third party.
PER SHARE DATA
Net income per common share is computed based upon 15,352,484 and
11,780,934 weighted average common shares outstanding during the nine
months ended September 30, 1997 and 1996, and 16,356,320 and 11,796,951
weighted average number of common shares outstanding during the three
months ended September 30, 1997 and 1996, respectively. At September 30,
1997 there were 16,570,120 common shares and 1,100,000 preferred shares
outstanding. Fully diluted earnings per share is not presented as the
impact is not material during the three or nine months ended September 30,
1997 and 1996.
<PAGE>
RECLASSIFICATIONS
Certain amounts in the 1996 consolidated 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, 1997, the Company, as general partner or manager, owned
co-investment 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"); Pleasant Hill
Joint Venture ("Pleasant Hill"); Barrett Lakes Limited Liability Company
("Barrett Lakes"); AMLI at Chevy Chase, L.P. ("Chevy Chase"); AMLI at
Willowbrook, L.P. ("Willowbrook"); AMLI at River Exchange, L.P. ("River
Exchange"); Acquiport/Aurora Crossing, L.P. ("Aurora Crossing");
Acquiport/Fossil Creek, L.P. ("Fossil Creek"); AMLI at Danada, L.L.C.
("Danada"); AMLI at Verandah, L.P. ("Verandah"); Gardner Drive, LLC
("Gardner"); and a nominal interest in the GP Properties. These co-
investment interests are accounted for using the equity method.
Investments in partnerships / limited liability companies at September 30,
1997 and the Company's share of income or loss for the nine months ended
September 30, 1997 from each (excluding the GP Properties from which the
Company received distributions and recorded income of $2) are summarized as
follows:
<PAGE>
<TABLE>
Investments in partnerships at September 30, 1997 and the Company's share of income or loss for the nine months
ended September 30, 1997 from each 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%) $ 19,406 6,361 1,590 1,555 237 60
Foundation II AMLI at Greenwood Forest (15%)17,213 5,151 773 754 (14) (2)
Champions AMLI at Champions Park (15%) 12,590 3,258 489 489 86 12
Champions AMLI at Champions Centre (15%)9,781 2,775 416 416 (33) (5)
Windbrooke AMLI at Windbrooke (15%) 17,084 5,140 771 771 (34) (5)
Willeo Creek AMLI at Willeo Creek (30%) 15,290 4,920 1,476 1,476 73 19
Chevy Chase AMLI at Chevy Chase (33%) 44,711 14,171 4,676 4,676 498 165
Pleasant Hill AMLI at Pleasant Hill (40%) 26,657 11,472 4,930 4,476 778 315
Barrett AMLI at Barrett Lakes (35%) 26,097 11,028 3,860 3,986 (70) (24)
Willowbrook AMLI at Willowbrook (40%) 37,159 11,703 4,681 4,587 161 67
River Exchange AMLI at River Park (40%) 14,314 5,970 2,388 2,343 (253) (99)
Aurora
Crossing AMLI at Aurora Crossing (25%)24,014 21,920 5,480 5,623 (314) (78)
Fossil Creek AMLI at Fossil Creek (25%) 20,014 18,011 4,503 4,595 (125) (31)
Danada AMLI at Danada (10%) 48,725 22,973 2,297 2,288 646 65
Verandah AMLI at Verandah (35%) 25,831 8,208 2,961 2,943 138 96
Gardner AMLI at Northwinds (35%) 19,564 18,624 6,518 6,371 -- --
======= ====== ------- ------ ==== ---
$47,809 47,349 555
======= ======
GP Properties 2
---
557
===
</TABLE>
<PAGE>
<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 9/30/97 RATE MATURITY
---------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
AMLI at Park Place $ 13,000 12,480 8.21% 10/5/99
AMLI at Greenwood Forest 11,625 11,625 8.95% 5/10/02
AMLI at Champions Park 9,500 8,999 7.26% 1/1/02
AMLI at Champions Centre 6,700 6,663 8.93% 1/1/02
AMLI at Windbrooke 11,500 11,500 9.24% 2/1/02
AMLI at Willeo Creek 10,000 9,948 6.77% 5/1/03
AMLI at Chevy Chase 29,767 29,572 6.67% 4/1/03
AMLI at Pleasant Hill 15,500 14,794 9.15% 3/1/07
AMLI at Barrett Lakes 16,680 12,506 8.50% 12/1/09
AMLI at Willowbrook 24,500 24,392 7.785% 5/1/03
AMLI at River Park 9,100 7,920 7.75% 6/27/08
AMLI at Danada 24,500 24,500 7.33% 3/1/07
AMLI at Verandah 16,940 16,940 7.55% 4/1/04
AMLI at Northwinds 33,800 -- 8.25% 10/1/10
-------- -------
$233,112 191,839
======== =======
<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>
<PAGE>
<TABLE>
Investments in partnerships at December 31, 1996 and the Company's 1996 share of income or loss from each 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%) $20,142 6,724 1,681 1,645 568 143
Foundation II AMLI at Greenwood Forest (15%)17,731 5,525 829 809 (181) (27)
Champions AMLI at Champions Park (15%) 12,695 3,172 477 477 (183) (27)
Champions AMLI at Champions Centre (15%)10,020 2,908 436 436 (101) (15)
Windbrooke AMLI at Windbrooke (15%) 17,600 5,574 836 836 (116) (17)
Willeo Creek AMLI at Willeo Creek (30%) 15,556 5,197 1,559 1,562 66 20
Pleasant Hill AMLI at Pleasant Hill (40%) 27,128 11,987 5,091 4,709 824 320
Barrett AMLI at Barrett Lakes (35%) 15,454 11,098 3,884 4,007 (22) (8)
Chevy Chase AMLI at Chevy Chase (33%) 45,928 15,017 4,955 4,955 170 56
Willowbrook AMLI at Willowbrook (40%) 38,125 12,382 4,953 4,876 262 105
River Exchange AMLI at River Park (40%) 10,877 6,224 2,489 2,479 51 (21)
Aurora
Crossing AMLI at Aurora Crossing (25%)15,032 11,559 2,890 2,868 -- --
Fossil Creek AMLI at Fossil Creek (25%) 6,394 3,995 999 1,010 -- --
======= ====== ------- ------ ==== ----
$31,079 30,669 529
======= ======
GP Properties 30
----
559
====
</TABLE>
<PAGE>
Investments in Service Companies
In connection with the formation of the Company (and in June 1994 in
the case of Amli Residential Construction, Inc. ("Amrescon")), 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 Service Companies at
and for the nine months ended September 30, 1997 and 1996 follows:
1997 1996
------- -------
Income (1) $ 6,519 4,415
General and adminis-
trative expenses (4,780) (3,442)
------- -------
1,739 973
Interest (729) (589)
Depreciation (218) (213)
Income taxes (300) (66)
------- -------
Net income (loss)(2) $ 492 105
======= =======
Total assets $19,144 11,976
======= =======
(1) Net of construction and landscaping costs.
(2) The Company's proportionate share of the net income (loss)
of the Service Companies ($260 and $(159) for the nine months ended
September 30, 1997 and 1996, respectively), includes an elimination of
intercompany profit related to construction services provided by Amrescon.
Including interest income of $729 and $584, respectively, total income from
the Service Companies was $989 and $425, respectively, for the nine months
ended September 30, 1997 and 1996.
Interest expense of the Service Companies relates primarily to the 13%
notes payable to the Company by Amli Management Company ("AMC") for $3,000,
Amli Institutional Advisors, Inc. ("AIA") for $500 and Amrescon for $5,000,
and to working capital advances made to AMC and Amrescon.
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 ARC and its affiliates. Such allocations are not in excess of
ARC'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 ARC's total occupancy cost.
During the nine months ended September 30, 1997 and 1996 the Company
accrued or paid to the Service Companies fees and other costs and expenses
as follows:
1997 1996
------ ----
Management fees $1,547 1,396
General contractor fees 1,204 422
Interest expense 23 23
Landscaping and ground maintenance 472 462
====== ====
<PAGE>
During the nine months ended September 30, 1997 and 1996 the Company
earned or received from the Service Companies other income as follows:
1997 1996
---- ----
Interest on notes receivable $390 341
Interest on advances 339 243
==== ===
During the nine months ended September 30, 1997 and 1996 the Company
earned or received from co-investment partnerships other income as follows:
1997 1996
------ ----
Development fees $1,175 494
Acquisition fees 49 184
Disposition fees -- 66
Asset management fees 455 364
Debt placement fee 88 --
Accounting and administrative fees 10 5
Interest on advances -- 20
====== ====
The development and acquisition fees earned from co-investment
partnerships as shown above include only the venture partners' shares of
such costs, 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 that is adjusted
weekly based upon the remarketing rate for these bonds (3.70% at October
28, 1997; 3.71% average for the nine months ended September 30, 1997). 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, 2002.
Mortgage notes payable
At September 30, 1997, the Company owed a total of $156,192 pursuant to
twelve fixed rate mortgage notes payable to eight 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 another mortgage
note payable for $19,859. The loans bear interest at fixed rates between
7.0% and 9.2%, with maturities extending through December 1, 2038.
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 two communities 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.
<PAGE>
Other notes payable
On June 27, 1997, the Company closed on a new $100,000 unsecured
revolving line of credit ("Unsecured Line") which replaced the $60,000
secured line of credit with Wachovia Bank N.A. ("Wachovia") and the $29,500
secured line of credit with First National Bank of Chicago ("First
Chicago"). The Unsecured Line carries an interest rate of LIBOR plus 135
basis points, has a term of three years with two one year extensions and
provides for reductions in interest rates based on the future credit rating
the Company is able to obtain. The group of banks that provides the
Unsecured Line is led by Wachovia and First Chicago as co-agents. The
Unsecured Line will be used for acquisition and development activities and
for working capital needs. The Unsecured Line requires that the Company
meet various covenants typical of such an arrangement, including minimum
net worth, minimum debt service coverage and maximum debt to equity
percentage.
Of the aggregate $108,750 of other notes payable, $38,000 is outstanding
on the $100,000 Unsecured Line and $6,652 in letters of credit are
outstanding on the $8,000 line of credit from Harris. Of the total, $5,845
is covered by interest rate cap for protection against increases in LIBOR
above 3.875% through February 15, 1998. The total $63,348 (net of $6,652
letters of credit) of unused credit is available to fund future
development, acquisition and working capital needs. The Harris line of
credit agreements provide for customary borrower covenants, including among
other things, minimum debt service coverage ratios and maximum loan to
value ratios.
<PAGE>
<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 9/30/97 RATE DATE AT 12/31/96
- --------------------- ---------- ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C>
BOND FINANCING:
AMLI at Spring Creek (1) $ 40,750 40,750 Tax-exempt 10/1/24 40,750
-------- ------- rate + 1.23% -------
MORTGAGE NOTES PAYABLE:
AMLI at the Arboretum (2) 4,800 -- 9.90% 9/28/97 4,427
AMLI at Gleneagles 8,500 8,076 7.70% 10/31/97 8,152
AMLI at Martha's Vineyard (3) 7,060 -- 7.42% 11/1/97 6,669
AMLI at Reflections 4,800 4,459 7.05% 6/30/98 4,528
AMLI on Rosemeade 7,050 6,582 7.02% 10/5/98 6,682
AMLI at Sherwood 7,320 6,860 7.75% 7/1/03 6,992
AMLI at Riverbend 31,000 30,468 7.30% 7/1/03 30,815
AMLI in Great Hills 11,000 10,813 7.34% 7/1/03 10,935
AMLI at Valley Ranch 11,500 10,747 7.625% 7/10/03 10,900
AMLI at Nantucket 7,735 7,735 7.70% 6/1/04 --
AMLI at Timberglen 6,770 6,770 7.70% 6/1/04 --
AMLI at Regents Center 20,100 19,859 (4) 9/1/05 19,975
AMLI on the Green
AMLI of North Dallas (5) 43,234 42,526 7.789% 5/1/06 42,938
AMLI at Park Creek 10,322 1,297 7.875% 12/1/38 --
-------- ------- -------
Total Mortgage Notes Payable 181,191 156,192 153,013
-------- ------- -------
UNSECURED LINE OF CREDIT 100,000 38,000 L + 1.35%(6) 6/27/00 --
-------- ------- -------
OTHER NOTES PAYABLE:
AMLI at Vinings
AMLI at Sope Creek -- -- L+1.35% 5/31/98 7,500
-------- ------- -------
AMLI at Park Sheridan 8,000 -- L+1.35% 8/30/98 -
Unsecured 750 750 4.00% Demand 750
-------- ------- -------
Total Other Notes Payable 8,750 38,750 8,250
-------- ------- -------
Total $330,691 235,692 202,013
======== ======= =======
<PAGE>
<FN>
(1) Effective October 1, 1997, the Bonds are no longer secured by AMLI at Spring Creek.
(2) Prepaid without penalty on July 3, 1997.
(3) Prepaid on August 1, 1997 with prepayment penalty of $22.
(4) $13,800 at 8.73% and $6,300 at 9.23%.
(5) Sold at a discount of $673. At September 30, 1997, the unamortized discount amount is $577.
(6) The Company has used an interest rate derivative contract to limit the interest rate to 5.23% through
February 15, 1998 on $5,845. Additional derivative contracts were entered into in October 1997 to fix the
interest rate payable on $50,000 of line of credit borrowings at an average base rate of 6.12% (7.47% all-in
including the current 1.35% "lender's spread") to November 2002 and February 2003.
</TABLE>
<PAGE>
<TABLE>
As of September 30, 1997, 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>
1997 . . . . . . . . . . . . . . . $ -- 8,579 750 9,329
1998 . . . . . . . . . . . . . . . -- 12,951 -- 12,951
1999 . . . . . . . . . . . . . . . -- 2,269 -- 2,269
2000 . . . . . . . . . . . . . . . -- 2,441 38,000 40,441
2001 . . . . . . . . . . . . . . . -- 2,658 -- 2,658
Thereafter . . . . . . . . . . . . 40,750 127,294 -- 168,044
------- ------- ------- -------
$40,750 156,192 38,750 235,692
======= ======= ======= =======
</TABLE>
<PAGE>
6. COMMITMENTS AND CONTINGENCIES
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.
The limited partnership agreement of AMLI at Verandah L.P. provides
for the redemption (at an amount determined by formula) by the partnership
of the limited partner's entire interest, in its sole discretion, at any
time after March 25, 2002, or at any time that there is a designated event
of default on related indebtedness of the partnership, which event of
default remains uncured and unwaived to the time of notice of redemption
election. The redemption amount may be paid in cash or Company shares of
beneficial interest, or any combination thereof, in the sole discretion of
the Company. The original capital contribution made by the limited partner
was $5,525.
On November 3, 1997, the Company entered into an agreement for the
sale of AMLI at Bear Creek, a 350-unit apartment community located in
Dallas, Texas. The sale price of $13,775 is payable in cash at closing,
which is anticipated to occur in December 1997. The buyer has deposited
$100 earnest money in escrow with a title company.
7. SUBSEQUENT EVENTS
Following the October 1, 1997 remarketing of its $40,750 in tax
exempt bonds, these bonds are no longer secured by any mortgage on the
Spring Creek Crossing Apartment Community, which mortgage has now been
released.
During October, the Company entered into additional interest rate
derivative contracts to fix the interest rate payable on $50,000 of its
line of credit borrowings at an average base rate of 6.12% (7.47% "all-in"
including the current "lender's spread" of 1.35%) to November 2002 and
February 2003.
On October 15, 1997, the Company closed on the acquisition of Bent
Tree Ridge Apartments, a 300-unit apartment community located in North
Dallas. The purchase price of $19,000 was paid in cash. In addition, the
Company has a signed contract to acquire a 10.8 acre land parcel adjacent
to Bent Tree Ridge. The Company intends to develop a 200-unit additional
phase on this land. Closing of the land purchase is expected to occur in
the fourth quarter of 1997 and development is anticipated to commence
shortly thereafter.
On October 17, 1997, the Company acquired 100% interest in the
partnership that owns Bishop's Gate Apartments, a 266-unit apartment
community located in Plano, Texas. The Company assumed the $14,000
existing debt secured by the property and the remainder of the purchase
price of $9,000 was paid in cash.
<PAGE>
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, 1997 and December 31, 1996 and for the nine months ended
September 30, 1997 and 1996.
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.
On January 30, 1996, the Company issued 1,200,000 convertible preferred
shares for $20 per share, or $24,000, directly to four institutional
investors and Amli Realty Co. ("ARC") in a registered offering. During the
fourth quarter of 1996, the Company completed a public offering (the
"Second Offering") of 2,976,900 common shares. In July 1997, the Company
closed on an offering of 1,694,700 common shares. The net proceeds of the
issuance of the preferred shares and the public offerings were used to
reduce the Company's debt and fund development costs. As of September 30,
1997, the Company owned an 85% 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. At September 30, 1997, the Company owned 17,670,120
OP Units and the limited partners owned 3,005,213 OP Units. 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, 1996 through September 30, 1997, growth
in property revenues and property operating expenses resulted from
increases at communities owned as of January 1, 1996, and from the newly-
constructed communities.
During the same period, the Company has invested in four co-investment
partnerships, which own the 600-unit AMLI at Danada in Wheaton, Illinois,
the 538-unit AMLI at Verandah in Arlington, Texas, the 592-unit AMLI at
Chevy Chase in Buffalo Grove, Illinois, and the 488-unit AMLI at
Willowbrook in Willowbrook, Illinois. In addition, on June 11, 1997, the
Company acquired a 152-unit Paces North apartment community adjacent to
AMLI at Vinings in Smyrna, Georgia. The operations of this newly-acquired
property will be combined with AMLI at Vinings.
For the nine months ended September 30, 1997, net income attributable to
common shares was $14,755, or $.96 per share on total revenues of $65,145.
For the nine months ended September 30, 1996, net income was $9,338 or $.79
per share on total revenues of $58,017. Before extraordinary items caused
by the early extinguishment of debt, net income per share for the nine
months ended September 30, 1997 and 1996 was $.97 and $.88, respectively.
On a "same community" basis, weighted average occupancy of the apartment
homes owned wholly by the Company decreased slightly to 93.8% for the nine
months ended September 30, 1997 from 94.2% in the prior year. Weighted
average collected rental rates increased by 1.4% to $659 from $650 per unit
per month for the nine months ended September 30, 1997 and 1996,
respectively. Including Co-Investment Communities, weighted average
occupancy of the Company's apartment homes decreased to 93.9% for the nine
months ended September 30, 1997 from 94.2% in the prior year, and weighted
average collected rental rates increased by 1.9% to $670 from $658 per unit
per month for the nine months ended September 30, 1997 and 1996,
respectively.
<PAGE>
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
Certain statements set forth herein or incorporated by reference herein
from the Company's filings under the Securities Exchange Act of 1934, as
amended, contain forward-looking statements, including, without limitation,
statements relating to the timing and anticipated capital expenditures of
the Company's development programs. Although the Company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, the actual results may differ materially from that
set forth in the forward-looking statements. Certain factors that might
cause such differences include general economic conditions, local real
estate conditions, construction delays due to the unavailability of
construction materials, weather conditions or other delays beyond the
control of the Company. Consequently, such forward-looking statements
should be regarded solely as reflections of the Company's current operating
and development plans and estimates. These plans and estimates are subject
to revision from time to time as additional information becomes available,
and actual results may differ from those indicated in the referenced
statements.
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1997 TO NINE MONTHS ENDED
SEPTEMBER 30, 1996.
Income before minority interest increased to $19,343 for the nine months
ended September 30, 1997 from $14,334 for the nine months ended September
30, 1996. This increase was primarily attributable to a $7,128 increase in
total revenues, reduced by a $1,357 increase in property operating expenses
and an $1,227 increase in depreciation. Net income for the nine months
ended September 30, 1997 and 1996 was $16,174 and $10,611, respectively.
Total property revenues increased by $5,310, or 9.5%. On the same
community basis total property revenues increased by $1,121, or 2.0%.
The $1,818 increase in other revenues includes a $174 increase in share of
income from co-investment ventures, a $681 increase in development fees, a
$419 increase in share of income from Service Companies, a $250 increase in
other interest income and a $145 increase in interest income from Service
Companies.
Property operating expenses increased by $1,357, or 5.6%. On the same
community basis, property operating expenses decreased by $31 or .1%.
Interest expense, net of the amounts capitalized, decreased from $8,981 to
$8,151, or 9.2%.
General and administrative expenses increased from $1,703 for the nine
months ended September 30, 1996 to $2,153 for the nine months ended
September 30, 1997. The increase is primarily attributable to increased
compensation and compensation-related costs attributable to both additional
employees and increased rates of compensation.
LIQUIDITY AND CAPITAL RESOURCES
On June 27, 1997, the Company closed on a new $100 million unsecured
revolving line of credit ("Unsecured Line"). The credit facility carries
an interest rate of LIBOR plus 135 basis points and has a term of three
years with two one-year extensions. The bank group providing the line of
credit is led by Wachovia Bank N.A. ("Wachovia") and First National Bank of
Chicago ("First Chicago") as co-agents, and includes Harris Trust and
Savings Bank and LaSalle National Bank. The Unsecured Line replaced two
secured lines of credit with Wachovia and First Chicago, which were paid
off at the closing. At September 30, 1997, the Company had borrowings of
$38,000 on the Unsecured Line. The remaining credit availability of
$62,000 will be used, as needed, for acquisition and development
activities, as well as for general working capital purposes.
At September 30, 1997, the Company had $1,516 in cash and cash equivalents
and $63,348 in availability under its two bank lines of credit.
<PAGE>
For the nine months ended September 30, 1997, net cash provided by
operating activities was $28,028. For the nine months ended September 30,
1996, cash provided by operating activities was $23,599. The increase was
primarily attributable to the $7,128 increase in total revenues, net of
$1,357 increase in operating expenses.
Cash flows used for investing activities were $79,063 for the nine months
ended September 30, 1997, and net cash flows used for investing activities
were $42,197 for the nine months ended September 30, 1996. The increase of
$37,249 is due largely to the acquisition of two stabilized communities,
increased development activities and acquisition and development for co-
investment partnerships.
Net cash flows provided by financing activities were $42,260 for the nine
months ended September 30, 1997 which includes net proceeds from common
shares offering of $37,506 and increased borrowings. Net cash flows
provided by financing activities were $19,962 for the nine months ended
September 30, 1996 which reflect net proceeds of $23,918 from preferred
shares offering in January 1996.
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.
Funds from operations for the nine months ended September 30, 1997 and 1996
are summarized as follows:
SEPTEMBER 30,
------------------------
1997 1996
------- -------
Income before minority
interest and extraordinary
item $19,343 14,334
Depreciation 9,581 8,354
Other, net (1) 1,834 367
------- ------
Funds from operations $30,758 23,055
======= ======
Total shares - weighted average,
including shares issuable upon
conversion of preferred
shares and OP Units and
pursuant to the Company's
Option Plan 19,525 15,600
======= ======
<PAGE>
(1) Share of co-investment partnerships' depreciation and, in 1996,
$584 gain on sale of interest rate caps.
Funds from operations as shown above is net of start-up losses at newly-
constructed communities. At some communities (such as AMLI at Pleasant
Hill and Phase IV of the AMLI at Sope Creek Crossing Apartments), the
initial lease-up has been such that there were no start-up losses.
In the typical situation, start-up losses will be recorded between the time
the first apartment homes are delivered from construction until occupancy
levels are adequate to recover all costs and expenses (including interest
but excluding depreciation). The amounts shown above for the nine months
ended September 30, 1997 and 1996 are shown net of $822 and $284,
respectively, of start-up losses which, for the nine months ended September
30, 1997 are attributable to the initial lease-up of Phase III of AMLI at
Regents Center, Vinings Square, Phase II of AMLI at Crown Colony, AMLI at
River Park, AMLI at Barrett Lakes, AMLI at Aurora Crossing and AMLI at
Fossil Creek. Additional amounts will be recorded in future quarters of
1997 and in 1998 as initial lease-up is completed at these and other
communities currently under development.
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 make distributions to its shareholders equal to 95%
of its REIT taxable income. The Company's 1997 estimated dividend payment
level equals an annual rate of $1.73 per share. The Company estimates that
approximately 10% of the total dividends to be paid in 1997 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 statement 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. During 1996 and through July 24,
1997, the Company has issued preferred and common shares for an aggregate
issuance price of $128,467, leaving a balance of $71,533 in shares that the
Company may issue in the future under the shelf registration statement.
During the first half of 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS No. 128"). SFAS No. 128 requires the presentation of basic
and diluted earnings per share for companies with other than simple capital
structures. SFAS No. 128 is effective for financial statements for both
interim and annual periods ending after December 15, 1997 and early
application is not permitted. For the three and nine months ended
September 30, 1997, basic income per share would have approximated net
income per common share as presented in the accompanying consolidated
statement of operations.
<PAGE>
<TABLE>
COMPANY INDEBTEDNESS
The Company's debt as of September 30, 1997, substantially all of which is secured by first mortgages on eighteen
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 7.72% $156,192 66.3%
Tax-Exempt Bonds (1) Tax Exempt Rate + 1.23% 40,750 17.3%
Lines of Credit (2) LIBOR + 1.35% 38,000 16.1%
Other 4.00% 750 .3%
-------- ----
Total: $235,692 100%
======== ====
<FN>
- --------------------
(1) The tax exempt bonds bear interest at a variable tax exempt rate and mature on October 1, 2024. The
related credit enhancement expires in 2002.
(2) The total of $38,000 amount borrowed under the Unsecured line of credit is due in 2000.
</TABLE>
<PAGE>
DEVELOPMENT ACTIVITIES
In February 1996, the Company acquired an 80 acre land parcel in Atlanta,
Georgia for $6,000 for the development of a new community to be known as
AMLI at Northwinds. The parcel was acquired for cash and a note that was
paid off in May 1996. The Company has begun development of a 652 apartment
home community on the Atlanta site and expects to commence development of a
148 apartment home community on adjacent land. On September 29, 1997, this
land under development was contributed to a newly formed co-investment
venture. The Company owns a 35% interest in this co-investment venture and
received $12,091 as reimbursement of costs incurred by the Company prior to
contributing the land and existing improvements to the partnership. The
co-venturer will provide an 8.25%, $33,800 construction and permanent
financing and the balance of $21,000 of the estimated development costs
will be funded by equity contributions. At September 30, 1997, $18,624 of
equity contributions have been funded.
During the fourth quarter of 1996, AMLI at Barrett Lakes, a 446-unit
apartment community in Atlanta, Georgia, being developed through a co-
investment partnership, began rental operations. At September 30, 1997,
the property was 77% occupied. 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 1996, the Company commenced leasing and rental operations of
AMLI at River Park, a 222 apartment home community in Atlanta, Georgia. At
September 30, 1997, AMLI at River Park was 97% occupied. In June 1996,
this community was contributed to a co-investment joint venture. Of the
$15,100 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.
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
incurred by the Company prior to contributing the land to the joint
venture. AMLI at Aurora Crossing began initial rental operations in
February 1997. At September 30, 1997, the community was 41% leased and 36%
occupied.
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 incurred by
the Company prior to contributing the land to the partnership. AMLI at
Fossil Creek commenced rental operations in April 1997 and at September 30,
1997, the community was 44% leased and 35% occupied.
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 has commenced the development of a 464
apartment home community on this site. Total development costs are
projected to be approximately $45,000.
<PAGE>
At September 30, 1997, there are ten communities or additional phases to
existing communities including co-investment properties that are under
development. When completed, a total of 3,786 apartment homes will be
added to the Company's portfolio of rental apartments. The estimated
development costs of the six wholly-owned communities under development
total approximately $145,000 of which $48,316 has been incurred at
September 30, 1997. The Company's share of the development costs for the
four co-investment partnerships is approximately $41,345 of which $26,986
has been funded at September 30, 1997. In addition, the Company owns four
land parcels located in Atlanta and Dallas that are in various stages of
pre-development.
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 41% 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 39% of the
Company's current total market capitalization and the high percentage (70%)
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.
<PAGE>
<TABLE>
OCCUPANCY
The following is a listing of approximate physical occupancy levels by quarter for the Company's wholly-owned
properties:
<CAPTION>
1997 1996
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>
WHOLLY-OWNED COMMUNITIES:
- ------------------------
DALLAS/FT. WORTH, TEXAS
AMLI at Autumn Chase 450 97% 95% 97% 95% 95% 96% 94%
AMLI at Bear Creek 350 98% 94% 95% 92% 93% 95% 95%
AMLI at Chase Oaks 250 96% 97% 96% 96% 96% 95% 98%
AMLI at Gleneagles 590 99% 98% 96% 95% 98% 97% 95%
AMLI on the Green 424 95% 93% 91% 89% 96% 98% 97%
AMLI at Nantucket 312 98% 98% 99% 98% 97% 95% 98%
AMLI of North Dallas 1,032 96% 97% 94% 94% 95% 97% 97%
AMLI at Reflections 212 98% 98% 96% 99% 97% 88% 95%
AMLI on Rosemeade 236 95% 97% 97% 98% 97% 98% 98%
AMLI on Timberglen 260 95% 97% 97% 99% 97% 96% 97%
AMLI at Valley Ranch 460 97% 97% 95% 92% 93% 95% 95%
------ --- --- --- --- --- --- --- ---
4,576 97% 96% 95% 94% 96% 96% 96%
------ --- --- --- --- --- --- --- ---
AUSTIN, TEXAS
AMLI at the Arboretum 231 100% 97% 97% 95% 96% 97% 96%
AMLI in Great Hills 344 98% 97% 95% 94% 97% 97% 96%
AMLI at Lantana Ridge 354 83% N/A N/A N/A N/A N/A N/A
AMLI at Martha's Vineyard360 98% 99% 97% 95% 95% 95% 95%
------ --- --- --- --- --- --- --- ---
1,289 94% 98% 96% 95% 96% 96% 96%
------ --- --- --- --- --- --- --- ---
ATLANTA, GEORGIA
AMLI at Sope Creek 695 94% 93% 96% 93% 92% 96% 95%
AMLI at Spring Creek 1,180 95% 95% 97% 93% 97% 96% 96%
AMLI at Vinings 360 96% 95% 93% 95% 95% 99% 99%
AMLI at West Paces 337 92% 93% 98% 98% 95% 97% 92%
------ --- --- --- --- --- --- --- ---
2,572 94% 94% 96% 94% 95% 96% 95%
------ --- --- --- --- --- --- --- ---
<PAGE>
1997 1996
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
- ----------------- ------ ---- ---- ---- ----- ---- ---- ----- -----
EASTERN KANSAS
AMLI at Alvamar 152 90% 93% 98% 99% 98% 96% 95%
AMLI at Crown Colony 220 98% 93% 97% 95% 96% 96% 86%
AMLI at Regents Center 424 93% 99% 91% 90% 95% 94% 98%
AMLI at Sherwood 300 98% 95% 98% 96% 97% 97% 89%
------ --- --- --- --- --- --- --- ---
1,096 95% 96% 96% 94% 97% 96% 93%
------ --- --- --- --- --- --- --- ---
INDIANAPOLIS, INDIANA
AMLI at Riverbend 996 89% 94% 92% 93% 96% 94% 94%
------ --- --- --- --- --- --- --- ---
CHICAGO, ILLINOIS
AMLI at Park Sheridan 253 99% 92% 93% 90% 92% 97% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
Total Wholly-Owned
Communities 10,782 95.0% 95.6% 95.2% 94.0% 95.6% 95.8% 95.4%
------ ----- ----- ----- ----- ----- ----- ----- -----
CO-INVESTMENT COMMUNITIES:
- -------------------------
ATLANTA, GA
AMLI at Pleasant Hill lease lease lease
(40%) 502 91% 96% 97% 95% up up up
lease lease lease lease lease lease
AMLI at River Park (40%) 222 97% up up up up up up
AMLI at Towne Creek (1%) 150 97% 90% 93% 93% 97% 97% 97%
AMLI at Willeo Creek
(30%) 242 91% 95% 98% 95% 97% N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
1,116 93% 95% 96% 95% 97% 97% 97%
------ ----- ----- ----- ----- ----- ----- ----- -----
CHICAGO, IL
AMLI at Chevy Chase
(33%) 592 96% 99% 97% 93% 96% N/A N/A
AMLI at Prairie
Court (1%) 125 98% 100% 97% 96% 97% 97% 97%
AMLI at Willowbrook (40%)488 98% 94% 96% 92% 94% N/A N/A
AMLI at Windbrooke (15%) 236 99% 100% 96% 92% 97% 96% 96%
AMLI at Danada (10%) 600 94% 93% 92% N/A N/A N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
2,041 96% 96% 95% 93% 96% 96% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
DALLAS, TX
AMLI at Verandah (35%) 538 95% 96% 94% N/A N/A N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
1997 1996
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
- ----------------- ------ ---- ---- ---- ----- ---- ---- ----- -----
AUSTIN, TX
AMLI at Park Place
(25%) 588 97% 94% 96% 97% 95% 97% 97%
------ ----- ----- ----- ----- ----- ----- ----- -----
HOUSTON, TX
AMLI at Champions
Centre (15%) 192 94% 98% 95% 92% 98% 95% 95%
AMLI at Champions
Park (15%) 246 99% 99% 97% 92% 95% 89% 89%
AMLI at Greenwood
Forest (15%) 316 96% 96% 96% 93% 90% N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
754 96% 98% 96% 92% 94% 92% 92%
------ ----- ----- ----- ----- ----- ----- ----- -----
Total Co-Investment
Communities 5,037 95.5% 95.8% 95.5% 93.8% 95.4% 95.3% 95.3%
------ ----- ----- ----- ----- ----- ----- ----- -----
TOTAL 15,819 95.2% 95.7% 95.3% 93.9% 97.2% 95.7% 91.6%
====== ===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
<PAGE>
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, 1997. 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
<PAGE>
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 13, 1997 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 13, 1997 By:/s/ GREGORY T. MUTZ
-----------------------------------
Gregory T. Mutz
Chairman of the Board of Trustees
Date: November 13, 1997 By:/s/ ALLAN J. SWEET
-----------------------------------
Allan J. Sweet
President and Trustee
Date: November 13, 1997 By:/s/ CHARLES C. KRAFT
-----------------------------------
Charles C. Kraft
Principal Accounting Officer
Principal Financial Officer
<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, 1997 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-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,516
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 564,326
<DEPRECIATION> 60,004
<TOTAL-ASSETS> 574,648
<CURRENT-LIABILITIES> 0
<BONDS> 235,692
0
11
<COMMON> 166
<OTHER-SE> 271,324
<TOTAL-LIABILITY-AND-EQUITY> 574,648
<SALES> 0
<TOTAL-REVENUES> 65,145
<CGS> 0
<TOTAL-COSTS> 45,802
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,151
<INCOME-PRETAX> 16,370
<INCOME-TAX> 0
<INCOME-CONTINUING> 16,370
<DISCONTINUED> 0
<EXTRAORDINARY> 196
<CHANGES> 0
<NET-INCOME> 16,174
<EPS-PRIMARY> .96
<EPS-DILUTED> .96
</TABLE>
EXHIBIT 99
- ----------
AMLI RESIDENTIAL PROPERTIES TRUST
FINANCIAL AND OPERATING DATA
September 30, 1997
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, 1997 and 1996
8. Same Community Comparison - Wholly-Owned
- nine months ended September 30, 1997 and 1996
9. Same Community Comparison - Wholly-Owned
& Co-Investments
- three months ended September 30, 1997 and 1996
10. Same Community Comparison - Wholly-Owned
& Co-Investments
- nine months ended September 30, 1997 and 1996
11. Property Information
12. Property EBITDA
13. Development Activities
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES
- --------
Property revenues:
Rental. . . . . . . . . . . . . . . . . . $ 20,035 $ 18,223 $ 57,996 $ 53,420
Other . . . . . . . . . . . . . . . . . . 1,167 902 3,161 2,427
-------- -------- -------- --------
Total Property Revenues . . . . . . . 21,202 19,125 61,157 55,847
-------- -------- -------- --------
Property operating expenses . . . . . . . . (8,482) (7,858) (23,935) (22,729)
Property management fees. . . . . . . . . . (539) (478) (1,547) (1,396)
-------- -------- -------- --------
Property expenses . . . . . . . . . . . (9,021) (8,336) (25,482) (24,125)
Operating expense ratio . . . . . . . . . . 42.5% 43.6% 41.7% 43.2%
-------- -------- -------- --------
Net operating income. . . . . . . . . 12,181 10,789 35,675 31,722
-------- -------- -------- --------
OTHER INCOME
- ------------
Share of income (loss) from Service Cos.. 183 (8) 260 (159)
Interest from Service Companies (1) . . . 289 216 729 584
Other interest. . . . . . . . . . . . . . 172 24 399 149
Share of partnerships FFO (2) . . . . . . 904 593 2,391 1,335
Fee income - acquisitions and dispositions -- -- 137 250
Fee income - developments . . . . . . . . 573 363 1,174 494
Fee income - asset management . . . . . . 151 143 455 363
Other . . . . . . . . . . . . . . . . . . 188 35 277 105
-------- -------- -------- --------
Total other income. . . . . . . . . . 2,460 1,366 5,822 3,121
General and administrative. . . . . . . . . (680) (575) (2,153) (1,703)
-------- -------- -------- --------
EBITDA. . . . . . . . . . . . . . . . . . . 13,961 11,580 39,344 33,140
-------- -------- -------- --------
Interest expense. . . . . . . . . . . . . . (2,619) (3,167) (8,151) (8,981)
Amortization of deferred costs. . . . . . . (105) (253) (435) (1,104)
-------- -------- -------- --------
Funds from operations (FFO) . . . . . . . . $ 11,237 $ 8,160 $ 30,758 $ 23,055
======== ======== ======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Capital expenditures paid from FFO. . . . . (825) (454) (2,705) (1,181)
Other - share of Co-investments Cap exp . . (54) (12) (154) (33)
-------- -------- -------- --------
Funds available for distribution (FAD). . . $ 10,358 $ 7,694 $ 27,899 $ 21,841
======== ======== ======== ========
FFO per share . . . . . . . . . . . . . . . $ 0.55 $ 0.52 $ 1.58 $ 1.48
FAD per share . . . . . . . . . . . . . . . $ 0.50 $ 0.49 $ 1.43 $ 1.40
Dividend per share. . . . . . . . . . . . . $ 0.43 $ 0.43 $ 1.29 $ 1.29
Dividend as a % of FFO. . . . . . . . . . . 78.6% 83.2% 81.8% 87.3%
Dividend as a % of FAD. . . . . . . . . . . 85.3% 88.3% 90.0% 92.2%
<FN>
Notes:
(1) Includes $163 in quarterly interest on 13% notes receivable and interest on working capital advances.
(2) Share of income plus share of depreciation; share of depreciation were $680 and $419 for the
three months ended September 30, 1997 and 1996, respectively, and $1,834 and $951, for the nine months
ended September 30, 1997 and 1996, respectively.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES
- --------
Property Revenue:
Rental. . . . . . . . . . . . . . . . . . $ 20,035 $ 18,223 $ 57,996 $ 53,420
Other . . . . . . . . . . . . . . . . . . 1,167 902 3,161 2,427
Interest and share of income (loss) from
Service Cos.. . . . . . . . . . . . . . . 472 208 989 425
Other interest. . . . . . . . . . . . . . . 172 24 399 149
Share of income from co-investment
partnerships. . . . . . . . . . . . . . . 224 174 557 383
Fees from co-investment partnerships. . . . 912 541 2,043 1,213
-------- -------- -------- --------
Total revenues. . . . . . . . . . . . . 22,982 20,072 65,145 58,017
-------- -------- -------- --------
EXPENSES
- --------
Personnel . . . . . . . . . . . . . . . . . 1,953 1,704 5,498 5,025
Advertising and promotion . . . . . . . . . 559 519 1,548 1,469
Utilities . . . . . . . . . . . . . . . . . 1,097 1,165 3,031 3,232
Building repairs and maintenance. . . . . . 1,706 1,344 4,269 3,641
Landscaping and grounds maintenance . . . . 474 436 1,353 1,291
Real estate taxes . . . . . . . . . . . . . 2,167 2,136 6,801 6,429
Insurance . . . . . . . . . . . . . . . . . 243 251 641 738
Other operating expenses. . . . . . . . . . 283 303 794 904
Property management fees. . . . . . . . . . 539 478 1,547 1,396
Interest, net of capitalized. . . . . . . . 2,619 3,167 8,151 8,981
Amortization of deferred costs. . . . . . . 105 253 435 1,104
Depreciation of real property . . . . . . . 2,457 2,259 7,149 6,513
Depreciation of personal property . . . . . 871 700 2,432 1,841
General and administrative. . . . . . . . . 680 575 2,153 1,703
-------- -------- -------- --------
Total expenses. . . . . . . . . . . . . 15,753 15,290 45,802 44,267
-------- -------- -------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Non-recurring item - gain on sale of
interest rate caps. . . . . . . . . . . . -- -- -- 584
-------- -------- -------- --------
Income before taxes, minority interest
and extraordinary item. . . . . . . . . . 7,229 4,782 19,343 14,334
Income taxes. . . . . . . . . . . . . . . . -- -- -- --
-------- -------- -------- --------
Income before minority interest and
extraordinary items . . . . . . . . . . . 7,229 4,782 19,343 14,334
Minority interest . . . . . . . . . . . . . 1,062 878 2,973 2,605
-------- -------- -------- --------
Income before and extraordinary items . . . 6,167 3,904 16,370 11,729
Extraordinary items, net of
minority interest . . . . . . . . . . . . (19) -- (196) (1,118)
-------- -------- -------- --------
Net income. . . . . . . . . . . . . . . . . 6,148 3,904 16,174 10,611
Net income allocable to preferred shares. . 473 473 1,419 1,273
-------- -------- -------- --------
Net income allocable to common shares . . . $ 5,675 $ 3,431 $ 14,755 $ 9,338
======== ======== ======== ========
INCOME PER COMMON SHARE:
- -----------------------
Before extraordinary items. . . . . . . . $ 0.35 $ 0.28 $ 0.97 $ 0.88
Extraordinary item. . . . . . . . . . . . $ 0.00 $ 0.00 $ (0.01) $ (0.09)
Income per common share . . . . . . . . . $ 0.35 $ 0.28 $ 0.96 $ 0.78
======== ======== ======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
FUNDS FROM OPERATIONS
- ---------------------
Income before taxes, minority interest
and extraordinary item. . . . . . . . . . $ 7,229 $ 4,782 $ 19,343 $ 14,334
Depreciation of real property . . . . . . . 2,457 2,259 7,149 6,513
Depreciation of personal property . . . . . 871 700 2,432 1,841
Non-recurring items . . . . . . . . . . . . -- -- -- (584)
Other - share of Co-investments
depreciation. . . . . . . . . . . . . . . 680 419 1,834 951
-------- -------- -------- --------
Funds from operations (FFO) . . . . . . . . $ 11,237 $ 8,160 $ 30,758 $ 23,055
FFO per share . . . . . . . . . . . . . . . $ 0.55 $ 0.52 $ 1.58 $ 1.48
Capital expenditures paid from FFO. . . . . (825) (454) (2,705) (1,181)
Other - Share Co-investments
capital expenditures. . . . . . . . . . . (54) (12) (154) (33)
-------- -------- -------- --------
Funds available for distribution (FAD). . . $ 10,358 $ 7,694 $ 27,899 $ 21,841
======== ======== ======== ========
FAD per share . . . . . . . . . . . . . . . $ 0.50 $ 0.49 $ 1.43 $ 1.40
Dividends per share . . . . . . . . . . . . $ 0.43 $ 0.43 $ 1.29 $ 1.29
======== ======== ======== ========
Dividends as a % of FFO . . . . . . . . . . 78.6% 83.2% 81.8% 87.3%
Dividends as a % of FAD . . . . . . . . . . 85.3% 88.3% 90.0% 92.2%
======== ======== ======== ========
<PAGE>
</TABLE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS
Unaudited - Dollars in thousands except per share data
<CAPTION>
SEPT. 30, DEC. 31,
1997 1996
-------- --------
<S> <C> <C>
ASSETS
- ------
Rental apartments
Land. . . . . . . . . . . . . . . . . . . . . . . . . $ 67,268 $ 59,854
Depreciable property. . . . . . . . . . . . . . . . . 428,428 373,140
-------- --------
495,696 432,994
Less accumulated depreciation . . . . . . . . . . . . (60,004) (50,478)
-------- --------
435,692 382,516
Properties under development. . . . . . . . . . . . . . 68,630 62,525
Investments in partnerships . . . . . . . . . . . . . . 47,349 30,669
Cash and cash equivalents . . . . . . . . . . . . . . . 1,516 10,291
Security deposits . . . . . . . . . . . . . . . . . . . 1,920 1,737
Deferred costs, net . . . . . . . . . . . . . . . . . . 3,002 2,139
Other assets. . . . . . . . . . . . . . . . . . . . . . 16,539 14,480
-------- --------
Total assets. . . . . . . . . . . . . . . . . . . . . . $574,648 $504,357
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS - CONTINUED
Unaudited - Dollars in thousands except per share data
SEPT. 30, DEC. 31,
1997 1996
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Debt. . . . . . . . . . . . . . . . . . . . . . . . . . $235,692 $202,013
Accrued interest payable. . . . . . . . . . . . . . . . 1,035 1,161
Accrued real estate taxes . . . . . . . . . . . . . . . 7,665 6,978
Construction costs payable. . . . . . . . . . . . . . . 7,194 2,263
Security deposits and prepaid rents . . . . . . . . . . 2,377 2,757
Other liabilities . . . . . . . . . . . . . . . . . . . 2,438 2,292
-------- --------
Total liabilities . . . . . . . . . . . . . . . . . 256,401 217,464
-------- --------
Minority interest . . . . . . . . . . . . . . . . . . . 46,746 44,871
-------- --------
Shareholders' equity
Preferred shares, $.01 par value. . . . . . . . . . . 11 11
Shares of beneficial interest, $.01 par value . . . . 166 148
Additional paid-in capital. . . . . . . . . . . . . . 335,690 301,098
Retained earnings . . . . . . . . . . . . . . . . . . 10,719 (5,455)
Dividends paid. . . . . . . . . . . . . . . . . . . . (75,085) (53,780)
-------- --------
Total shareholders' equity. . . . . . . . . . . . . 271,501 242,022
-------- --------
Total liabilities and shareholders' equity. . . . . . . $574,648 $504,357
======== ========
<PAGE>
</TABLE>
<TABLE>
Amli Residential Properties Trust
Selected Quarterly Financial Information
September 30, 1997
(dollars in thousands except for per share data)
<CAPTION>
Quarter Ending
-------------------------------------------------------------
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
1997 1997 1997 1996 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total Debt $235,692 $238,061 $220,964 $202,013 $233,567
Total Debt (1) $289,097 290,699 271,738 240,593 270,374
Total Shares and
Units Outstanding
(2) 20,675,333 18,976,280 18,968,168 18,862,132 15,798,892
Value per Common
Share - end of
quarter $ 23.250 23.625 23.000 23.375 20.875
Total Equity
(Market Value) -
end of quarter $480,701 448,315 436,268 440,902 329,802
Total Market
Capitalization $716,393 686,376 657,232 642,915 563,369
Total Market
Capitalization (1) $769,798 739,014 708,006 681,495 600,176
======== ======== ======== ======== ========
Total Revenues (3) $ 22,982 $ 21,313 $ 20,850 $ 20,254 $ 20,072
EBITDA (4) 13,961 12,861 12,522 12,155 11,580
FFO 11,237 9,888 9,633 8,954 8,160
FAD 10,358 9,073 8,468 8,175 7,694
Dividends Paid 8,889 8,158 8,111 6,794 6,792
Debt service
(net of capitalized
interest) 3,154 3,420 3,195 3,462 3,645
Interest Expense 2,619 2,886 2,646 2,935 3,167
G & A Expense 680 706 767 650 575
Total Shares and
Units Outstanding
- Wtd. Avg. 20,461,533 18,973,232 18,882,000 16,948,000 15,798,000
========== ========== ========== ========== ==========
<PAGE>
Amli Residential Properties Trust
Selected Quarterly Financial Information - CONTINUED
September 30, 1997
(dollars in thousands except for per share data)
Quarter Ending
-------------------------------------------------------------
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
1997 1997 1997 1996 1996
-------- -------- -------- -------- --------
Debt Service
Coverage Ratio 4.43 3.76 3.92 3.51 3.18
Interest Coverage Ratio 5.33 4.46 4.73 4.14 3.66
Debt as % of Total
Market Capitalization 32.90% 34.68% 33.62% 31.42% 41.46%
Debt as % of Total
Market Capitalization (1)37.55% 39.34% 38.38% 35.30% 45.05%
EBITDA as % of Total
Market Capitalization 7.80% 7.50% 7.62% 7.56% 8.22%
FFO as % of Total
Market Equity 9.35% 8.82% 8.83% 8.12% 9.90%
G&A as % of Total
Market Capitalization 0.38% 0.41% 0.47% 0.40% 0.41%
G&A as % of Total Revenues2.96% 3.31% 3.68% 3.21% 2.86%
Dividends as % of FFO (5) 78.6% 82.5% 84.3% 81.4% 83.2%
Dividends as % of FAD (5) 85.3% 89.9% 95.9% 89.1% 88.3%
======== ======== ======== ======== ========
Apartment Units -
Wholly Owned
In Operation 10,782 10,364 9,824 9,824 9,824
Under Development 2,032 2,296 2,444 1,404 1,404
Apartment Units -
Co-Investments
In Operation 5,037 4,815 4,815 3,677 3,677
Under Development 1,754 1,324 1,324 1,324 1,324
-------- -------- -------- -------- --------
Total Units 19,605 18,799 18,407 16,229 16,229
======== ======== ======== ======== ========
<FN>
(1) Including proportionate share of debt of Co-investment partnerships accounted
for using the equity method.
(2) End of the quarter - includes 1,100,000 preferred shares convertible
to common shares.
(3) Excluding non-recurring gain of $751 in the third quarter of 1996.
(4) Includes other income, net of G & A expenses.
(5) Based on per share amounts.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PORTFOLIO INDEBTEDNESS SUMMARY
September 30, 1997
(Dollars in thousands)
<CAPTION>
Percent of Weighted Ave. Years to
Type of Indebtedness Balance Total Interest Interest Rate Maturity
- -------------------- --------- ---------- ---------- ------------- --------
<S> <C> <C> <C> <C> <C>
Conventional Fixed Rate $156,192 66.3% Fixed 7.72% 6.5
Tax-exempt Variable Rate 40,750 17.3% Variable 4.78% 5.0
Credit Facilities 38,000 16.1% Variable 7.00% 2.7
Other 750 0.3% Fixed 4.00% --
-------- ------ ----- ----
Total $235,692 100.0% 7.09% 5.7
======== ====== ===== ====
Balance
including
share of
Co-Investment Percent of Weighted Ave. Years to
Type of Indebtedness Debt Total Interest Interest Rate Maturity
- -------------------- ------------- ----------- ---------- ------------- --------
Conventional Fixed Rate $209,597 72.5% Fixed 7.74% 6.6
Tax-exempt Variable Rate 40,750 14.1% Variable 4.78% 5.0
Credit Facilities 38,000 13.1% Variable 7.00% 2.7
Other 750 0.3% Fixed 4.00% --
-------- ------ ----- ----
Total $289,097 100.0% 7.22% 5.8
======== ====== ===== ====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES
SEPTEMBER 30, 1997
Unaudited - Dollars in thousands
<CAPTION>
There- % to
1997 1998 1999 2000 2001 after Total Total
------- ------- ------- ------- ------- -------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Rate Mortgages $ 8,579 $12,951 $ 2,269 $ 2,441 $ 2,658 $127,294 $156,192 66.3%
Tax Exempt Bonds* 40,750 40,750 17.3%
Wachovia/First Chicago
Line of Credit 38,000 38,000 16.1%
Other 750 750 0.3%
------- ------- ------- ------- ------- -------- -------- ------
Total Loans $ 9,329 $12,951 $ 2,269 $40,441 $ 2,658 $168,044 $235,692 100.0%
======= ======= ======= ======= ======= ======== ======== ======
Percent to Total 4.0% 5.5% 1.0% 17.2% 1.1% 71.2% 100.0% 81.5%
======= ======= ======= ======= ======= ======== ======== ======
SHARE OF CO-INVESTMENT DEBT
Prudential Ins. -
Park Place (25%) 13 53 3,054 3,120 5.8%
Nationwide Life Ins. -
Greenwood Forest (15%) 3 5 5 6 1,725 1,744 3.3%
Lincoln National Ins. -
Champions Park (15%) 1,350 1,350 2.5%
Prudential Ins. -
Champions Centre (15%) 2 9 10 11 12 956 1,000 1.9%
Allstate Life Ins. -
Windbrooke (15%) 14 16 18 20 1,657 1,725 3.2%
CIGNA -
Chevy Chase (33%) 40 165 177 189 202 8,987 9,760 18.3%
Northwestern Mutual Life Ins. -
Willowbrook (40%) 33 139 150 162 175 9,098 9,757 18.3%
Phoenix Mutual -
Willeo Creek (30%) 8 49 53 56 60 2,758 2,984 5.6%
Northwestern Mutual Life Ins. -
Pleasant Hill (40%) 17 69 75 82 90 5,585 5,918 11.1%
Northwestern Mutual Life Ins. -
Barrett Lakes (35%) 71 77 84 4,146 4,378 8.2%
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES - CONTINUED
There- % to
1997 1998 1999 2000 2001 after Total Total
------- ------- ------- ------- ------- -------- -------- ------
Erie Insurance -
River Park (40%) 20 51 55 3,041 3,167 5.9%
Prudential Ins. -
Amli at Danada (10%) 17 25 27 2,381 2,450 4.6%
Phoenix Home Life -
Amli at Verandah (35%) 55 88 94 5,692 5,929 11.1%
Northwestern Mutual Life
Ins - Northwinds (35%) -- -- 0.0%
Central Bank, Trustee -
Prairie Court (1%) 73 73 0.1%
Erie Insurance -
Towne Creek (1%) 50 50 0.1%
------- ------- ------- ------- ------ -------- -------- ------
Total Share of
Co-Investment Loans $ 1,463 $ 501 $ 3,826 $ 764 $ 825 $ 46,026 $ 53,405 100.0%
======= ======= ======= ======= ====== ======== ======== ======
Percent to Total 2.7% 0.9% 7.2% 1.4% 1.5% 86.3% 100.0% 18.5%
======= ======= ======= ======= ====== ======== ======== ======
Total Including Share
of Co-Investment Debt $10,792 $13,452 $ 6,095 $41,205 $3,483 $214,070 $289,097 100.0%
======= ======= ======= ======= ====== ======== ======== ======
Percent to Total 3.7% 4.7% 2.1% 14.3% 1.2% 74.0% 100.0% 100.0%
======= ======= ======= ======= ====== ======== ======== ======
<FN>
* The Bonds mature in October 2024, but the credit enhancement expires on October 15, 2002.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
<CAPTION>
7/1/97-9/30/97 Budget 7/1/96-9/30/96
No. of--------------------------------- % --------------------------------
Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
------- -------- -------- ---------- ------ ---------- -------- ---------
<S> <c) <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 4,088 95.4% 0.5% 94.9%
Atlanta 2,420 93.1% -1.3% 94.3%
Austin 935 95.0% 3.0% 92.3%
Indianapolis 996 90.8% -2.8% 93.5%
Eastern Kansas 908 91.1% -2.0% 93.0%
Chicago 253 95.5% 1.6% 94.1%
----- ----- -----
Weighted Average 93.9% -0.3% 94.2%
------ ===== ===== =====
Total 9,600
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $637 2.4% $622
Atlanta $726 -0.2% $728
Austin $642 -2.4% $658
Indianapolis $570 0.8% $565
Eastern Kansas $650 0.1% $649
Chicago $905 3.4% $875
---- ---- ----
Weighted Average $662 0.9% $656
==== ==== ====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
7/1/97-9/30/97 7/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
TOTAL PROPERTY REVENUES Per Month Per Month
- ----------------------- ---------- ----------
Dallas $ 7,870,191 $ 642 $0.78 4.1% $ 7,563,361 $617 $0.75
Atlanta $ 5,170,520 $ 712 $0.76 -0.5% $ 5,197,198 $716 $0.77
Austin $ 1,814,760 $ 647 $0.88 1.6% $ 1,786,802 $637 $0.87
Indianapolis $ 1,660,676 $ 556 $0.67 -1.9% $ 1,692,192 $566 $0.69
Eastern Kansas $ 1,740,710 $ 639 $0.74 0.4% $ 1,733,235 $636 $0.74
Chicago $ 744,026 $ 980 $1.15 7.1% $ 694,455 $915 $1.07
----------- ------ ----- ----- ----------- ---- -----
Total $19,000,883 $ 660 $0.78 1.8% $18,667,242 $648 $0.76
=========== ====== ===== ===== =========== ==== =====
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 3,732,179 $3,652 $4.42 2.3% $ 3,647,670 $3,569 $4.32
Atlanta $ 1,824,488 $3,016 $3.23 0.4% $ 1,817,423 $3,004 $3.22
Austin $ 832,086 $3,560 $4.84 3.2% $ 806,640 $3,451 $4.69
Indianapolis $ 701,508 $2,817 $3.42 5.3% $ 666,464 $2,677 $3.25
Eastern Kansas $ 706,682 $3,113 $3.62 -0.9% $ 713,068 $3,141 $3.65
Chicago $ 391,935 $6,197 $7.25 -4.6% $ 410,813 $6,495 $7.60
----------- ------ ----- ----- ----------- ------ -----
Total $ 8,188,877 $3,412 $4.02 1.6% $ 8,062,078 $3,359 $3.96
=========== ====== ===== ===== =========== ====== =====
Operating Efficiency 43.1% 43.2%
=========== ===========
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ----------
Dallas $ 4,138,012 $337 $0.41 5.7% $ 3,915,691 $319 $0.39
Atlanta $ 3,346,032 $461 $0.49 -1.0% $ 3,379,775 $466 $0.50
Austin $ 982,675 $350 $0.48 0.3% $ 980,162 $349 $0.47
Indianapolis $ 959,169 $321 $0.39 -6.5% $ 1,025,728 $343 $0.42
Eastern Kansas $ 1,034,028 $380 $0.44 1.4% $ 1,020,167 $375 $0.44
Chicago $ 352,091 $464 $0.54 24.1% $ 283,642 $374 $0.44
----------- ---- ----- ----- ----------- ---- -----
Total $10,812,007 $375 $0.44 2.0% $10,605,165 $368 $0.43
=========== ==== ===== ===== =========== ==== =====
Operating Margin 56.9% 56.8%
=========== ===========
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
7/1/97-9/30/97 7/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 290,482 $284 $0.34 16.7% $248,991 $244 $0.29
Atlanta $ 232,773 $385 $0.41 307.7% $ 57,101 $ 94 $0.10
Austin $ 136,988 $586 $0.80 213.3% $ 43,718 $187 $0.25
Indianapolis $ 63,496 $255 $0.31 58.4% $ 40,088 $161 $0.20
Eastern Kansas $ 83,956 $370 $0.43 92.2% $ 43,681 $192 $0.22
Chicago $ 11,044 $175 $0.20 -43.0% $ 19,371 $306 $0.36
----------- ---- ----- ------ -------- ---- -----
Total $ 818,739 $341 $0.40 80.8% $452,949 $189 $0.22
=========== ==== ===== ====== ======== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 759,187 $ 743 $0.90 17.6% $ 645,545 $ 632 $0.76
Atlanta $ 369,022 $ 610 $0.65 51.1% $ 244,231 $ 404 $0.43
Austin $ 137,053 $ 586 $0.80 22.5% $ 111,891 $ 479 $0.65
Indianapolis $ 175,678 $ 706 $0.86 21.8% $ 144,244 $ 579 $0.70
Eastern Kansas $ 94,855 $ 418 $0.49 9.6% $ 86,551 $ 381 $0.44
Chicago $ 88,435 $1,398 $1.64 -8.3% $ 96,448 $1,525 $1.78
----------- ------ ----- ------ ---------- ------ -----
Total $ 1,624,229 $ 677 $0.80 22.2% $1,328,911 $ 554 $0.65
=========== ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,037,024 $1,015 $1.23 2.2% $1,014,894 $ 993 $1.20
Atlanta $ 261,523 $ 432 $0.46 -29.6% $ 371,363 $ 614 $0.66
Austin $ 215,406 $ 922 $1.25 3.9% $ 207,297 $ 887 $1.20
Indianapolis $ 177,732 $ 714 $0.87 -0.7% $ 179,025 $ 719 $0.87
Eastern Kansas $ 212,667 $ 937 $1.09 10.6% $ 192,334 $ 847 $0.98
Chicago $ 118,818 $1,879 $2.20 -7.3% $ 128,183 $2,027 $2.37
----------- ------ ----- ----- ---------- ------ -----
Total $ 2,023,170 $ 843 $0.99 -3.3% $2,093,096 $ 872 $1.03
=========== ====== ===== ===== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
<CAPTION>
1/1/97-9/30/97 1/1/96-9/30/96
No. of--------------------------------- % --------------------------------
Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
------- -------- -------- ---------- ------ ---------- -------- ---------
<S> <c) <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 4,088 94.6% -0.5% 95.0%
Atlanta 2,420 93.7% -0.7% 94.4%
Austin 935 94.1% 0.8% 93.3%
Indianapolis 996 92.0% -1.8% 93.7%
Eastern Kansas 908 92.2% 0.6% 91.6%
Chicago 253 93.1% -1.3% 94.2%
----- ----- -----
Weighted Average 93.8% -0.5% 94.2%
------ ===== ===== =====
Total 9,600
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $631 2.3% $617
Atlanta $726 1.2% $718
Austin $644 -1.4% $653
Indianapolis $572 1.2% $565
Eastern Kansas $646 0.5% $643
Chicago $916 4.0% $881
---- ---- ----
Weighted Average $659 1.4% $650
==== ==== ====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
1/1/97-9/30/97 1/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
TOTAL PROPERTY REVENUES Per Month Per Month
- ----------------------- ---------- ----------
Dallas $23,071,598 $ 627 $0.76 3.0% $22,400,440 $609 $0.74
Atlanta $15,515,631 $ 712 $0.76 1.3% $15,314,782 $703 $0.75
Austin $ 5,370,924 $ 638 $0.87 1.1% $ 5,311,232 $631 $0.86
Indianapolis $ 5,025,998 $ 561 $0.68 0.5% $ 5,000,282 $558 $0.68
Eastern Kansas $ 5,159,897 $ 631 $0.73 2.1% $ 5,052,868 $618 $0.72
Chicago $ 2,151,433 $ 945 $1.11 2.7% $ 2,095,002 $920 $1.08
----------- ------ ----- ----- ----------- ---- -----
Total $56,295,482 $ 652 $0.77 2.0% $55,174,607 $639 $0.75
=========== ====== ===== ===== =========== ==== =====
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $10,360,990 $3,379 $4.09 -1.8% $10,545,735 $3,440 $4.16
Atlanta $ 5,542,188 $3,054 $3.27 0.7% $ 5,503,854 $3,032 $3.25
Austin $ 2,491,407 $3,553 $4.83 5.5% $ 2,361,979 $3,368 $4.58
Indianapolis $ 1,919,686 $2,570 $3.12 0.9% $ 1,902,369 $2,547 $3.09
Eastern Kansas $ 1,999,504 $2,936 $3.41 1.1% $ 1,978,068 $2,905 $3.38
Chicago $ 1,269,821 $6,692 $7.83 -4.0% $ 1,322,585 $6,970 $8.15
----------- ------ ----- ----- ----------- ------ -----
Total $23,583,595 $3,275 $3.86 -0.1% $23,614,591 $3,280 $3.87
=========== ====== ===== ===== =========== ====== =====
Operating Efficiency 41.9% 42.8%
=========== ==========
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ----------
Dallas $12,710,608 $345 $0.42 7.2% $11,854,705 $322 $0.39
Atlanta $ 9,973,444 $458 $0.49 1.7% $ 9,810,928 $450 $0.48
Austin $ 2,879,517 $342 $0.46 -2.4% $ 2,949,253 $350 $0.48
Indianapolis $ 3,106,312 $347 $0.42 0.3% $ 3,097,912 $346 $0.42
Eastern Kansas $ 3,160,394 $387 $0.45 2.8% $ 3,074,801 $376 $0.44
Chicago $ 881,612 $387 $0.45 14.1% $ 772,417 $339 $0.40
----------- ---- ----- ----- ----------- ---- -----
Total $32,711,887 $379 $0.45 3.6% $31,560,016 $365 $0.43
=========== ==== ===== ===== =========== ==== =====
Operating Margin 58.1% 57.2%
=========== ===========
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown Colony II, Regents III, Vinings Square, Vinings II, Peachtree City
and South Gwinett
1/1/97-9/30/97 1/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 1,385,195 $452 $0.55 147.7% $ 559,163 $182 $0.22
Atlanta $ 564,847 $311 $0.33 141.7% $ 233,674 $129 $0.14
Austin $ 300,879 $429 $0.58 113.9% $ 140,637 $201 $0.27
Indianapolis $ 155,009 $208 $0.25 70.2% $ 91,100 $122 $0.15
Eastern Kansas $ 167,230 $246 $0.29 107.4% $ 80,621 $118 $0.14
Chicago $ 100,564 $530 $0.62 48.5% $ 67,704 $357 $0.42
----------- ---- ----- ------ ---------- ---- -----
Total $ 2,673,723 $371 $0.44 128.0% $1,172,899 $163 $0.19
=========== ==== ===== ====== ========== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 1,815,743 $ 592 $0.72 6.6% $1,703,773 $ 556 $0.67
Atlanta $ 886,377 $ 488 $0.52 28.1% $ 691,736 $ 381 $0.41
Austin $ 442,024 $ 630 $0.86 36.1% $ 324,712 $ 463 $0.63
Indianapolis $ 416,109 $ 557 $0.68 15.2% $ 361,336 $ 484 $0.59
Eastern Kansas $ 277,117 $ 407 $0.47 6.7% $ 259,626 $ 381 $0.44
Chicago $ 262,645 $1,384 $1.62 -6.2% $ 279,917 $1,475 $1.73
----------- ------ ----- ------ ---------- ------ -----
Total $ 4,100,015 $ 569 $0.67 13.2% $3,621,099 $ 503 $0.59
=========== ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 3,107,440 $1,014 $1.23 3.3% $3,008,678 $ 981 $1.19
Atlanta $ 1,088,044 $ 599 $0.64 -9.0% $1,195,253 $ 659 $0.71
Austin $ 646,218 $ 922 $1.25 3.9% $ 621,891 $ 887 $1.20
Indianapolis $ 520,626 $ 697 $0.85 -3.1% $ 537,075 $ 719 $0.87
Eastern Kansas $ 638,001 $ 937 $1.09 12.3% $ 568,289 $ 834 $0.97
Chicago $ 417,570 $2,201 $2.57 0.2% $ 416,933 $2,197 $2.57
----------- ------ ----- ----- ---------- ------ -----
Total $ 6,417,900 $ 891 $1.05 1.1% $6,348,119 $ 882 $1.04
=========== ====== ===== ===== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
<CAPTION>
7/1/97-9/30/97 7/1/96-9/30/96
No. of--------------------------------- % --------------------------------
Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
------- -------- -------- ---------- ------ ---------- -------- ---------
<S> <c) <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 4,088 95.4% 0.4% 95.1%
Atlanta 2,812 92.7% -1.8% 94.4%
Austin 1,523 94.7% 0.3% 94.3%
Houston 754 96.0% 3.7% 92.5%
Indianapolis 996 90.8% -2.8% 93.5%
Eastern Kansas 908 91.1% -2.0% 93.0%
Chicago 614 96.3% 2.1% 94.3%
----- ----- -----
Weighted Average 94.0% -0.3% 94.3%
------ ===== ===== =====
Total 11,695
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $637 3.7% $615
Atlanta $729 1.4% $719
Austin $618 -2.7% $635
Houston $721 1.9% $708
Indianapolis $570 0.8% $565
Eastern Kansas $650 0.1% $649
Chicago $952 2.9% $925
---- ---- ----
Weighted Average $674 1.6% $663
==== ==== ====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES) - CONTINUED
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
7/1/97-9/30/97 7/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
TOTAL PROPERTY REVENUES Per Month Per Month
- ----------------------- ---------- ----------
Dallas $ 7,870,191 $ 642 $0.78 4.1% $ 7,563,361 $617 $0.75
Atlanta $ 6,023,337 $ 714 $0.75 -0.4% $ 6,050,074 $717 $0.75
Austin $ 2,827,696 $ 619 $0.87 -0.4% $ 2,838,928 $621 $0.87
Houston $ 1,641,005 $ 725 $0.78 6.8% $ 1,537,087 $680 $0.73
Indianapolis $ 1,660,676 $ 556 $0.67 -1.9% $ 1,692,192 $566 $0.69
Eastern Kansas $ 1,740,710 $ 639 $0.74 0.4% $ 1,733,235 $636 $0.74
Chicago $ 1,849,694 $1,004 $1.15 5.5% $ 1,752,920 $952 $1.09
----------- ------ ----- ----- ----------- ---- -----
Total $23,613,310 $ 673 $0.79 1.9% $23,167,797 $660 $0.77
=========== ====== ===== ===== =========== ==== =====
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 3,732,179 $3,652 $4.42 2.3% $ 3,647,670 $3,569 $4.32
Atlanta $ 2,199,281 $3,128 $3.29 0.6% $ 2,185,184 $3,108 $3.27
Austin $ 1,352,073 $3,551 $4.98 6.7% $ 1,266,644 $3,327 $4.66
Houston $ 673,265 $3,572 $3.86 -7.2% $ 725,608 $3,849 $4.16
Indianapolis $ 701,508 $2,817 $3.42 5.3% $ 666,464 $2,677 $3.25
Eastern Kansas $ 706,682 $3,113 $3.62 -0.9% $ 713,068 $3,141 $3.65
Chicago $ 851,527 $5,547 $6.37 -1.7% $ 866,587 $5,646 $6.48
----------- ------ ----- ----- ----------- ------ -----
Total $10,216,515 $3,494 $4.10 1.4% $10,071,225 $3,445 $4.04
=========== ====== ===== ===== =========== ====== =====
Operating Efficiency 43.3% 43.5%
=========== ===========
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ----------
Dallas $ 4,138,012 $337 $0.41 5.7% $ 3,915,691 $319 $0.39
Atlanta $ 3,824,056 $453 $0.48 -1.1% $ 3,864,890 $458 $0.48
Austin $ 1,475,623 $323 $0.45 -6.1% $ 1,572,284 $344 $0.48
Houston $ 967,740 $428 $0.46 19.3% $ 811,479 $359 $0.39
Indianapolis $ 959,169 $321 $0.39 -6.5% $ 1,025,728 $343 $0.42
Eastern Kansas $ 1,034,028 $380 $0.44 1.4% $ 1,020,167 $375 $0.44
Chicago $ 998,167 $542 $0.62 12.6% $ 886,332 $481 $0.55
----------- ---- ----- ----- ----------- ---- -----
Total $13,396,795 $382 $0.45 2.3% $13,096,572 $373 $0.44
=========== ==== ===== ===== =========== ==== =====
Operating Margin 56.7% 56.5%
=========== ===========
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES) - CONTINUED
THREE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
7/1/97-9/30/97 7/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 290,482 $284 $0.34 16.7% $248,991 $244 $0.29
Atlanta $ 252,662 $359 $0.38 331.0% $ 58,628 $ 83 $0.09
Austin $ 167,537 $440 $0.62 180.9% $ 59,646 $157 $0.22
Houston $ 21,096 $112 $0.12 -23.8% $ 27,685 $147 $0.16
Indianapolis $ 63,496 $255 $0.31 58.4% $ 40,088 $161 $0.20
Eastern Kansas $ 83,956 $370 $0.43 92.2% $ 43,681 $192 $0.22
Chicago $ 43,310 $282 $0.32 29.8% $ 33,373 $217 $0.25
----------- ---- ----- ------ -------- ---- -----
Total $ 922,539 $316 $0.37 80.2% $512,092 $175 $0.21
=========== ==== ===== ====== ======== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 759,187 $ 743 $0.90 17.6% $ 645,545 $ 632 $0.76
Atlanta $ 428,599 $ 610 $0.64 47.3% $ 291,010 $ 414 $0.43
Austin $ 231,984 $ 609 $0.85 20.3% $ 192,833 $ 506 $0.71
Houston $ 46,427 $ 246 $0.27 -5.2% $ 48,951 $ 260 $0.28
Indianapolis $ 175,678 $ 706 $0.86 21.8% $ 144,244 $ 579 $0.70
Eastern Kansas $ 94,855 $ 418 $0.49 9.6% $ 86,551 $ 381 $0.44
Chicago $ 150,629 $ 981 $1.13 1.1% $ 148,924 $ 970 $1.11
----------- ------ ----- ------ ---------- ------ -----
Total $ 1,887,359 $ 646 $0.76 21.1% $1,558,059 $ 533 $0.62
=========== ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,037,024 $1,015 $1.23 2.2% $1,014,894 $ 993 $1.20
Atlanta $ 326,791 $ 465 $0.49 -26.1% $ 442,169 $ 629 $0.66
Austin $ 348,696 $ 916 $1.28 4.8% $ 332,715 $ 874 $1.23
Houston $ 259,739 $1,378 $1.49 -10.7% $ 290,703 $1,542 $1.67
Indianapolis $ 177,732 $ 714 $0.87 -0.7% $ 179,025 $ 719 $0.87
Eastern Kansas $ 212,667 $ 937 $1.09 10.6% $ 192,334 $ 847 $0.98
Chicago $ 274,922 $1,791 $2.06 0.7% $ 273,123 $1,779 $2.04
----------- ------ ----- ----- ---------- ------ -----
Total $ 2,637,571 $ 902 $1.06 -3.2% $2,724,963 $ 932 $1.09
=========== ====== ===== ===== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES)
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
<CAPTION>
1/1/97-9/30/97 1/1/96-9/30/96
No. of--------------------------------- % --------------------------------
Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
------- -------- -------- ---------- ------ ---------- -------- ---------
<S> <c) <C> <C> <C> <C> <C> <C> <C>
WEIGHTED AVG. OCCUPANCY
- -----------------------
Dallas 4,088 94.6% -0.6% 95.2%
Atlanta 2,812 93.5% -1.0% 94.5%
Austin 1,523 94.3% -0.3% 94.6%
Houston 754 94.6% 5.1% 90.0%
Indianapolis 996 92.0% -1.8% 93.7%
Eastern Kansas 908 92.2% 0.6% 91.6%
Chicago 614 94.3% -0.7% 95.0%
----- ----- -----
Weighted Average 93.9% -0.3% 94.2%
------ ===== ===== =====
Total 11,695
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $631 3.5% $609
Atlanta $727 2.5% $710
Austin $619 -2.0% $632
Houston $710 -0.4% $712
Indianapolis $572 1.2% $565
Eastern Kansas $646 0.5% $643
Chicago $950 3.4% $919
---- ---- ----
Weighted Average $670 1.9% $658
==== ==== ====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES) - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
1/1/97-9/30/97 1/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
TOTAL PROPERTY REVENUES PER MONTH PER MONTH
- ----------------------- --------- ---------
Dallas $23,071,598 $627 $0.76 3.0% $22,400,440 $609 $0.74
Atlanta $18,084,071 $715 $0.75 1.5% $17,814,299 $704 $0.74
Austin $ 8,408,921 $613 $0.86 -0.4% $ 8,442,100 $616 $0.86
Houston $ 4,787,483 $705 $0.76 6.6% $ 4,492,301 $662 $0.72
Indianapolis $ 5,025,998 $561 $0.68 0.5% $ 5,000,282 $558 $0.68
Eastern Kansas $ 5,159,897 $631 $0.73 2.1% $ 5,052,868 $618 $0.72
Chicago $ 5,382,148 $974 $1.12 2.9% $ 5,229,199 $946 $1.09
----------- ---- ----- ---- ----------- ---- -----
Total $69,920,116 $664 $0.78 2.2% $68,431,490 $650 $0.76
=========== ==== ===== ==== =========== ==== =====
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ -----------
Dallas $10,360,990 $3,379 $4.09 -1.8% $10,545,735 $3,440 $4.16
Atlanta $ 6,630,107 $3,144 $3.30 0.5% $ 6,594,017 $3,127 $3.29
Austin $ 3,938,998 $3,448 $4.83 5.7% $ 3,728,088 $3,264 $4.58
Houston $ 1,982,319 $3,505 $3.79 -11.9% $ 2,248,997 $3,977 $4.30
Indianapolis $ 1,919,686 $2,570 $3.12 0.9% $ 1,902,369 $2,547 $3.09
Eastern Kansas $ 1,999,504 $2,936 $3.41 1.1% $ 1,978,068 $2,905 $3.38
Chicago $ 2,626,471 $5,704 $6.55 -0.8% $ 2,647,484 $5,749 $6.60
----------- ------ ----- ----- ----------- ------ -----
Total $29,458,073 $3,358 $3.94 -0.6% $29,644,758 $3,380 $3.96
=========== ====== ===== ===== =========== ====== =====
Operating Efficiency 42.1% 43.3%
=========== ===========
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES) - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
1/1/97-9/30/97 1/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
NET OPERATING INCOME PER MONTH PER MONTH
- -------------------- --------- ---------
Dallas $12,710,608 $345 $0.42 7.2% $11,854,705 $322 $0.39
Atlanta $11,453,964 $453 $0.48 2.1% $11,220,283 $443 $0.47
Austin $ 4,469,923 $326 $0.46 -5.2% $ 4,714,012 $344 $0.48
Houston $ 2,805,164 $413 $0.45 25.0% $ 2,243,304 $331 $0.36
Indianapolis $ 3,106,312 $347 $0.42 0.3% $ 3,097,912 $346 $0.42
Eastern Kansas $ 3,160,394 $387 $0.45 2.8% $ 3,074,801 $376 $0.44
Chicago $ 2,755,678 $499 $0.57 6.7% $ 2,581,715 $467 $0.54
----------- ---- ----- ----- ----------- ---- -----
Total $40,462,043 $384 $0.45 4.3% $38,786,732 $369 $0.43
=========== ==== ===== ===== =========== ==== =====
Operating Margin 57.9% 56.7%
=========== ===========
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------- ------------
Dallas $ 1,385,195 $452 $0.55 147.7% $ 559,163 $182 $0.22
Atlanta $ 609,715 $289 $0.30 142.3% $ 251,589 $119 $0.13
Austin $ 407,850 $357 $0.50 117.3% $ 187,716 $164 $0.23
Houston $ 59,951 $106 $0.11 -23.0% $ 77,851 $138 $0.15
Indianapolis $ 155,009 $208 $0.25 70.2% $ 91,100 $122 $0.15
Eastern Kansas $ 167,230 $246 $0.29 107.4% $ 80,621 $118 $0.14
Chicago $ 154,105 $335 $0.38 56.1% $ 98,713 $214 $0.25
----------- ---- ----- ------ ----------- ---- -----
Total $ 2,939,055 $335 $0.39 118.2% $ 1,346,753 $154 $0.18
=========== ==== ===== ====== =========== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 1,815,743 $ 592 $0.72 6.6% $1,703,773 $ 556 $0.67
Atlanta $ 1,035,362 $ 491 $0.52 21.3% $ 853,316 $ 405 $0.43
Austin $ 682,949 $ 598 $0.84 27.1% $ 537,400 $ 470 $0.66
Houston $ 129,546 $ 229 $0.25 -20.8% $ 163,507 $ 289 $0.31
Indianapolis $ 416,109 $ 557 $0.68 15.2% $ 361,336 $ 484 $0.59
Eastern Kansas $ 277,117 $ 407 $0.47 6.7% $ 259,626 $ 381 $0.44
Chicago $ 414,517 $ 900 $1.03 0.0% $ 414,632 $ 900 $1.03
----------- ------ ----- ----- ---------- ------ -----
Total $ 4,771,342 $ 544 $0.64 11.1% $4,293,589 $ 490 $0.57
=========== ====== ===== ===== ========== ====== =====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON"
(WHOLLY-OWNED & CO-INVESTMENT PROPERTIES) - CONTINUED
NINE MONTHS ENDED SEPTEMBER 30, 1997 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1996
Excluding Autumn Chase II, Gleneagles II, Crown II, Regents III, Vinings Square, Vinings II, Pleasant Hill, Chevy,
Willowbrook, Barrett, River Park, Aurora, Fossil, Danada and Verandah
1/1/97-9/30/97 1/1/96-9/30/96
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 3,107,440 $1,014 $1.23 3.3% $3,008,678 $ 981 $1.19
Atlanta $ 1,294,045 $ 614 $0.64 -8.1% $1,407,671 $ 667 $0.70
Austin $ 1,046,088 $ 916 $1.28 4.8% $ 998,145 $ 874 $1.23
Houston $ 698,402 $1,235 $1.34 -20.6% $ 880,110 $1,556 $1.68
Indianapolis $ 520,626 $ 697 $0.85 -3.1% $ 537,075 $ 719 $0.87
Eastern Kansas $ 638,001 $ 937 $1.09 12.3% $ 568,289 $ 834 $0.97
Chicago $ 904,619 $1,964 $2.25 5.6% $ 857,049 $1,861 $2.14
----------- ------ ----- ----- ---------- ------ -----
Total $ 8,209,222 $ 936 $1.10 -0.6% $8,257,018 $ 941 $1.10
=========== ====== ===== ==== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION
As of September 30, 1997
<CAPTION>
Qtr ended
Sept. 30, 1997
Approx- Average Qtr ended
imate Rental Rates Sept. 30,
Number Rentable Average ------------- 1997
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 $649 $0.81 93.8%
at Autumn Chase II Carrollton, TX 1996 224 193,420 863 746 0.86 92.7%
at Bear Creek Euless, TX 1989 1986 350 275,010 786 581 0.74 94.4%
at Chase Oaks Plano, TX 1994 1986 250 193,736 775 663 0.86 97.1%
at Gleneagles Dallas, TX 1988 1987 326 274,300 841 641 0.76 97.2%
at Gleneagles II Dallas, TX 1997 264 247,002 936 764 0.82 95.2%
on the Green Ft. Worth, TX 1994 1990/93 424 358,560 846 712 0.84 93.7%
at Nantucket Dallas, TX 1988 1986 312 222,208 712 536 0.75 96.9%
of North Dallas Dallas, TX 1989/90 1985/86 1,032 905,590 878 633 0.72 94.5%
at Reflections Irving, TX 1993 1986 212 174,332 822 659 0.80 96.9%
on Rosemeade Dallas, TX 1990 1987 236 205,382 870 651 0.75 95.8%
on Timberglen Dallas, TX 1990 1985 260 201,198 774 595 0.77 96.9%
at Valley Ranch Irving, TX 1990 1985 460 389,940 848 674 0.79 95.8%
----- --------- --- ---- ----- ------
Subtotal-Dallas/
Ft. Worth, TX 4,576 3,821,546 835 $650 $0.78 95.3%
----- --------- --- ---- ----- ------
ATLANTA, GA
- -----------
Amli:
at Sope Creek Marietta, GA 1982/83/
1995 695 632,393 910 $689 $0.76 93.1%
at Spring Creek Dunwoody, GA 1985/86/ 1,180 1,080,560 916 702 0.77 93.6%
87/89
at Vinings Atlanta, GA 1992 1985 208 229,708 1,104 775 0.70 92.5%
at Vinings-Phase IIAtlanta, GA 1997 1985 152 144,532 951 734 0.77 93.0%
at West Paces Atlanta, GA 1993 1992 337 314,707 934 860 0.92 92.1%
------ --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 2,572 2,401,900 934 $727 $0.78 93.1%
------ --------- ----- ---- ----- ------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION - CONTINUED
As of September 30, 1997
Qtr ended
Sept. 30, 1997
Approx- Average Qtr ended
imate Rental Rates Sept. 30,
Number Rentable Average ------------- 1997
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 $675 $0.88 94.7%
in Great Hills Austin, TX 1991 1985 344 256,892 747 668 0.89 95.0%
at Lantana Ridge Austin, TX 1997 1997 354 311,808 881 813 0.92 83.1%
at Martha's
Vineyard Austin, TX 1992 1986 360 253,328 704 597 0.85 95.3%
------- --------- ------ ---- ----- -----
Subtotal-
Austin, TX 1,289 1,000,144 776 $689 $0.89 91.7%
------- --------- ----- ---- ----- -----
EASTERN KANSAS
- --------------
Amli:
at Alvamar Lawrence, KS 1994 1989 152 125,800 828 $665 $0.80 86.8%
at Crown Colony Topeka, KS 1994 1986 156 120,984 776 557 0.72 90.4%
at Crown Colony II Topeka, KS 1997 64 51,292 801 629 0.78 80.7%
at Regents Center Overland Park, KS 1994 1991-95 300 274,170 914 724 0.79 93.0%
at Regents Center
III Overland Park, KS 1997 124 123,728 998 771 0.77 94.4%
at Sherwood Topeka, KS 1994 1993 300 260,340 868 615 0.71 91.7%
------ --------- ----- --- ----- -----
Subtotal
-Eastern KS 1,096 956,314 873 $662 $0.76 90.8%
------ --------- ----- ---- ----- -----
INDIANAPOLIS, IN
- ----------------
Amli:
at Riverbend Indianapolis, IN1992/93 1983/85 996 820,712 824 $570 $0.69 90.8%
------ ------- --- ---- ----- -----
CHICAGO, IL
- ------------
Amli:
at Park Sheridan Chicago, IL 1989 1986 253 216,315 855 $905 $1.06 95.5%
------ --------- --- ---- ----- -----
TOTAL
PROPERTIES 10,782 9,216,931 855 $673 $0.79 93.5%
====== ========= === ==== ===== =====
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION - CONTINUED
As of September 30, 1997
Qtr ended
Sept. 30, 1997
Approx- Average Qtr ended
imate Rental Rates Sept. 30,
Number Rentable Average ------------- 1997
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:
at Pleasant Hill Atlanta,GA 1996 502 501,816 1,000 $804 $0.80 93.0%
at River Park Atlanta, GA 1997 222 225,892 1,018 799 0.79 85.1%
at Towne Creek Gainesville, GA 1989 150 121,722 811 650 0.80 88.9%
at Willeo Creek Roswell, GA 1995 1989 242 297,302 1,229 804 0.65 91.2%
----- --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 1,116 1,146,732 1,028 $782 $0.76 90.5%
----- --------- ----- ---- ----- ------
CHICAGO, IL
- -----------
Amli:
at Prairie
Court Oak Park, IL 1987 125 105,578 845$1,055 $1.25 95.2%
at Windbrooke Buffalo Grove, IL 1995 1987 236 213,160 903 948 1.05 97.7%
at Chevy Chase Buffalo Grove, IL 1996 1988 592 480,676 812 913 1.12 95.5%
at Danada Wheaton, IL 1997 1989/1991 600 521,500 869 915 1.05 93.7%
at Willowbrook Willowbrook, IL 1996 1987 488 418,404 857 905 1.06 93.0%
---- --------- --------- ----- -----
Subtotal-
Chicago, IL 2,041 1,739,318 852 $925 $1.08 94.6%
----- --------- --- ---- ----- -----
DALLAS/FT. WORTH
- ----------------
Amli:
at Verandah Arlington, TX 1997 1986/1991 538 394,504 733 $657 $0.90 94.2%
------ --------- --- ---- ----- -----
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION - CONTINUED
As of September 30, 1997
Qtr ended
Sept. 30, 1997
Approx- Average Qtr ended
imate Rental Rates Sept. 30,
Number Rentable Average ------------- 1997
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
AUSTIN, TX
- ----------
Amli:
at Park Place Austin, TX 1994 1985 588 397,968 677 $579 $0.86 94.1%
------ --------- --- ---- ----- -----
HOUSTON, TX
Amli at:
Champions Centre Houston, TX 1994 1994 192 164,480 857 $692 $0.81 96.1%
Champions Park Houston, TX 1994 1991 246 221,646 901 731 0.81 96.4%
Greenwood Forest Houston, TX 1995 1995 316 310,844 984 738 0.75 95.6%
------ ------- --- ---- ----- -----
Subtotal-
Houston, TX 754 696,970 924 $724 $0.78 96.0%
---------------- ---- ---- ----- -----
TOTAL CO-INVESTMENT
PROPERTIES 5,037 4,375,492 869 $794 $0.91 93.8%
================ === ==== ===== =====
TOTAL 15,81913,592,423 859 $711 $0.83 93.6%
================ === ==== ===== =====
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA
<TABLE>
<CAPTION>
WHOLLY-OWNED
------------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------- --------------------------------------
% %
1997 1996 Change 1997 1996 Change
-------- -------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY REVENUES
- -----------------
Rental Income
- -------------
Same Store
Communities (1) $ 17,971 $ 17,804 0.9% $ 53,426 $ 52,809 1.2%
New Communities (2) 466 345 35.0% 1,380 537 157.0%
Development and/or
Lease-up
Communities (3) 1,196 74 1520.0% 2,622 74 3449.9%
Acquisition
Communities (4) 402 -- -- 568 -- --
-------- -------- ------- -------- -------- -------
Total $ 20,035 $ 18,223 9.9% $ 57,996 $ 53,420 8.6%
======== ======== ======= ======== ======== =======
Other Revenues
- --------------
Same Store
Communities $ 1,032 $ 863 19.6% $ 2,871 $ 2,366 21.3%
New Communities 22 21 5.4% 60 44 38.6%
Development and/or
Lease-up
Communities 102 18 459.2% 218 17 1157.7%
Acquisition
Communities 11 -- -- 12 -- --
-------- -------- ------- -------- -------- -------
Total $ 1,167 $ 902 29.3% $ 3,161 $ 2,427 30.3%
======== ======== ======= ======== ======== =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
WHOLLY-OWNED
------------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------- --------------------------------------
% %
1997 1996 Change 1997 1996 Change
-------- -------- ------- -------- -------- -------
Total Property Revenues
- -----------------------
Same Store
Communities $ 19,003 $ 18,667 1.8% $ 56,297 $ 55,175 2.0%
New Communities 488 366 33.4% 1,440 581 147.7%
Development and/or
Lease-up
Communities 1,298 92 1308.8% 2,840 91 3015.3%
Acquisition
Communities 413 -- -- 580 -- --
-------- -------- ------- -------- -------- -------
Total $ 21,202 $ 19,125 10.9% $ 61,157 $ 55,847 9.5%
======== ======== ======= ======== ======== =======
PROPERTY EBITDA
- ---------------
Same Store
Communities $ 10,813 $ 10,605 2.0% $ 32,713 $ 31,560 3.7%
New Communities 312 183 71.0% 905 194 365.6%
Development and/or
Lease-up
Communities 782 1 -- 1669 (32) --
Acquisition
Communities 274 -- -- 389 -- --
-------- -------- ------- -------- -------- -------
Total $ 12,181 $ 10,789 12.9% $ 35,675 $ 31,722 12.5%
======== ======== ======= ======== ======== =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
CO-INVESTMENTS AT 100%
------------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------- --------------------------------------
% %
1997 1996 Change 1997 1996 Change
-------- -------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY REVENUES
- -----------------
Rental Income
- -------------
Same Store
Communities (1) $ 4,398 $ 4,284 2.7% $ 12,969 $ 12,657 2.5%
New Communities (2) 1,129 992 13.8% 3,424 2,371 44.4%
Development and/or
Lease-up
Communities (3) 1,483 -- -- 2,454 -- --
Acquisition
Communities (4) 5,370 2,659 102.0% 13,847 4,937 180.4%
-------- -------- ------- -------- -------- -------
Total $ 12,380 $ 7,935 56.0% $ 32,694 $ 19,965 63.8%
======== ======== ======= ======== ======== =======
Other Revenues
- --------------
Same Store
Communities $ 214 $ 217 -1.3% $ 656 $ 600 9.4%
New Communities 81 67 20.6% 219 129 69.4%
Development and/or
Lease-up
Communities 110 -- -- 199 -- --
Acquisition
Communities 339 127 167.6% 778 172 353.0%
-------- -------- ------- -------- -------- -------
Total $ 744 $ 411 81.0% $ 1,852 $ 901 105.6%
======== ======== ======= ======== ======== =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
CO-INVESTMENTS AT 100%
------------------------------------------------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------- --------------------------------------
% %
1997 1996 Change 1997 1996 Change
-------- -------- ------- -------- -------- -------
Total Property Revenues
- -----------------------
Same Store
Communities $ 4,612 $ 4,501 2.5% $ 13,625 $ 13,257 2.8%
New Communities 1,210 1,059 14.2% 3,643 2,500 45.7%
Development and/or
Lease-up
Communities 1,593 -- -- 2,653 -- --
Acquisition
Communities 5,709 2,786 104.9% 14,625 5,109 186.3%
-------- -------- ------- -------- -------- -------
Total $ 13,124 $ 8,346 57.3% $ 34,546 $ 20,866 65.6%
======== ======== ======= ======== ======== =======
PROPERTY EBITDA
- ---------------
Same Store
Communities $ 2,585 $ 2,491 3.7% $ 7,750 $ 7,227 7.2%
New Communities 768 685 12.2% 2,381 1,516 57.1%
Development and/or
Lease-up
Communities 781 -- -- 942 -- --
Acquisition
Communities 3,447 1,759 95.9% 9,141 3,263 180.1%
-------- -------- ------- -------- -------- -------
Total $ 7,581 $ 4,935 53.6% $ 20,214 $ 12,006 68.4%
======== ======== ======= ======== ======== =======
Company's share of
Co-Investment EBITDA $ 1,973 $ 1,339 47.4% $ 5,258 $ 3,032 73.4%
======== ======== ======= ======== ======== =======
Percent of
Co-Investment EBITDA 26% 27% 26% 25%
======== ======== ======== ========
<FN>
(1) Stabilized Communities at 1/1/96.
(2) Development Communities stabilized after 1/1/96 but before 1/1/97.
(3) Development Communities not yet stabilized.
(4) Stabilized Communities acquired after 1/1/96.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITIES
Third Quarter 1997
<CAPTION>
Under Construction And/Or in Lease Up
Construc- Percent Percent
tion First Comple- Stabili- Construc- Leased
Community Number Costs Percent Start Units tion zation tion as of
Name of Units (millions) Ownership Date Occupied Date Date Complete 10/29/97
- ---------- -------- ---------- --------- --------- -------- ------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ATLANTA,
GEORGIA
- --------
AMLI at
Barrett Lakes 446 $27.8 35% 3Q/95 4Q/96 4Q/97 2Q/98 91% 81%
Peachtree City 312 $22.2 100% 3Q/96 3Q/97 2Q/98 4Q/98 45% 48%
Northwinds 800 $55.5 35% 3Q/96 3Q/97 3Q/99 3Q/00 16% 6%
Park Creek 200 $12.6 100% 2Q/97 1Q/98 3Q/98 2Q/99 16% na
DALLAS/FORT WORTH,
TEXAS
- -----------------
AMLI at
Fossil Creek 384 $23.7 25% 3Q/96 2Q/97 1Q/98 3Q/98 82% 47%
Autumn Chase III 240 $14.5 100% 3Q/96 4Q/97 3Q/98 4Q/98 53% na
AMLI on
the Parkway 240 $15.7 100% 1Q/97 1Q/98 4Q/98 2Q/99 7% na
AUSTIN, TEXAS
- -------------
AMLI at
Wells Branch 576 $36.5 100% 1Q/97 1Q/98 3Q/99 2Q/00 15% na
AURORA, ILLINOIS
- ----------------
AMLI at
Aurora Crossing 272 $24.5 25% 2Q/96 1Q/97 4Q/97 3Q/98 95% 46%
Oakhurst North 464 $44.4 100% 1Q/97 1Q/98 4Q/99 1Q/00 10% na
----- ------
TOTAL 3,934 $277.4
===== ======
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITIES (continued)
Third Quarter 1997
PLANNING STAGES
Community Number
Name of Units
ATLANTA, GEORGIA
- ----------------
AMLI at
Killian Farms 216
(South Gwinnett)
DALLAS/FORT WORTH, TEXAS
- ------------------------
AMLI at
Deerfield (Legacy) 240
Fossil Creek II 520
- -----------
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 may 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.
