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 March 31, 1999
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 16,968,002 as of March 31, 1999.
<PAGE>
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of
March 31, 1999 and December 31, 1998. . . . . . . 3
Consolidated Statements of Operations
for the three months ended
March 31, 1999 and 1998 . . . . . . . . . . . . . 5
Consolidated Statements of
Shareholders' Equity
for the three months ended
March 31, 1999 . . . . . . . . . . . . . . . . . . 7
Consolidated Statements of Cash Flows
for the three months ended
March 31, 1999 and 1998 . . . . . . . . . . . . . 8
Notes to Consolidated Financial Statements. . . . . 10
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations . . . . . . . . . . . . . . 27
Item 3. Quantitative and Qualitative Disclosures
About Market Risk . . . . . . . . . . . . . . . . 35
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . 39
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . 40
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(UNAUDITED)
(Dollars in thousands, except share data)
<CAPTION>
MARCH 31, DECEMBER 31,
1999 1998
-------------- ------------
<S> <C> <C>
ASSETS:
Rental apartments:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 92,914 91,459
Depreciable property. . . . . . . . . . . . . . . . . . . . . . . . . . 600,778 586,507
---------- ----------
693,692 677,966
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . (82,945) (78,143)
---------- ----------
610,747 599,823
Property under development. . . . . . . . . . . . . . . . . . . . . . . . 55,148 61,798
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . . 73,731 72,150
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . 2,868 4,546
Deferred expenses, net. . . . . . . . . . . . . . . . . . . . . . . . . . 2,938 2,942
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,682 1,684
Notes receivable from and advances to Service Companies . . . . . . . . . 31,814 31,277
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,506 11,372
---------- ----------
Total assets $ 792,434 785,592
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Debt (note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 380,475 367,370
Accrued interest payable. . . . . . . . . . . . . . . . . . . . . . . . . 2,213 2,170
Accrued real estate taxes payable . . . . . . . . . . . . . . . . . . . . 6,159 10,141
Construction costs payable. . . . . . . . . . . . . . . . . . . . . . . . 2,410 1,967
Security deposits and prepaid rents . . . . . . . . . . . . . . . . . . . 3,260 3,420
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,749 3,096
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . 397,266 388,164
---------- ----------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS - CONTINUED
MARCH 31, DECEMBER 31,
1999 1998
------------- ------------
Commitments and contingencies (note 6)
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,683 54,574
---------- ----------
SHAREHOLDERS' EQUITY:
Series A Cumulative Convertible Preferred shares of beneficial interest,
$0.01 par value, 1,500,000 authorized, 1,200,000 issued and 850,000
and 1,100,000 outstanding, respectively (aggregate liquidation
preference of $17,157 and $22,200, respectively) . . . . . . . . . . . . 9 11
Series B Cumulative Convertible Preferred shares of beneficial interest,
$0.01 par value, 3,125,000 authorized, issued and outstanding
(aggregate liquidation preference of $76,406). . . . . . . . . . . . . . 31 31
Shares of beneficial interest, $0.01 par value, 145,375,000
authorized, 16,968,002 and 16,655,155 common shares issued
and outstanding, respectively . . . . . . . . . . . . . . . . . . . . . 169 167
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . 421,108 420,303
Employees' and Trustees' notes. . . . . . . . . . . . . . . . . . . . . . (10,722) (10,668)
Dividends paid in excess of earnings. . . . . . . . . . . . . . . . . . . (69,110) (66,990)
---------- ----------
Total shareholders' equity. . . . . . . . . . . . . . . . . . . 341,485 342,854
---------- ----------
Total liabilities and shareholders' equity. . . . . . . . . . . $ 792,434 785,592
========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
(Dollars in thousands, except share data)
<CAPTION>
1999 1998
--------- --------
<S> <C> <C>
Revenues:
Property:
Rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,695 24,138
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,569 1,292
Interest and share of income from Service Companies . . . . . . . . . . . 639 429
Other interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 191
Income from partnerships. . . . . . . . . . . . . . . . . . . . . . . . . 750 324
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473 288
-------- --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . 30,453 26,662
-------- --------
Expenses:
Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,643 2,317
Advertising and promotion . . . . . . . . . . . . . . . . . . . . . . . . 619 708
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,022 1,085
Building repairs and maintenance and services . . . . . . . . . . . . . . 1,292 1,255
Landscaping and grounds maintenance . . . . . . . . . . . . . . . . . . . 594 442
Real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,420 3,180
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 221
Property management fees. . . . . . . . . . . . . . . . . . . . . . . . . 707 638
Other operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . 265 344
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,316 4,938
Amortization of deferred costs. . . . . . . . . . . . . . . . . . . . . . 111 130
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,790 4,291
General and administrative. . . . . . . . . . . . . . . . . . . . . . . . 1,046 854
-------- --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . 22,025 20,403
-------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED
1999 1998
--------- --------
Income before minority interest . . . . . . . . . . . . . . . . . . . . . . 8,428 6,259
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,148 933
-------- --------
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,280 5,326
Less income attributable to preferred shares. . . . . . . . . . . . . . . . 1,873 604
-------- --------
Net income attributable to common shares. . . . . . . . . . . . . $ 5,407 4,722
======== ========
Net income per common share (basic and diluted) . . . . . . . . . . . . . . $ .32 .28
======== ========
Dividends declared and paid per common share. . . . . . . . . . . . . . . . $ .45 .44
======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1999
(Dollars in thousands)
<CAPTION>
SHARES OF EMPLOYEES' DIVIDENDS
BENEFICIAL INTEREST ADDITIONAL AND PAID
-------------------- PAID-IN TRUSTEES' IN EXCESS
SHARES AMOUNT CAPITAL NOTES OF EARNINGS TOTAL
------- ------ ---------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Balance at
December 31, 1998. . . . . 20,880,155 $209 420,303 (10,668) (66,990) 342,854
Shares issued in
connection with:
Executive Share
Purchase Plan. . . . 18,978 -- 383 -- -- 383
Employees' and
Trustees' notes, net. . -- -- -- (54) -- (54)
Units converted
to shares . . . . . . . 43,869 -- 671 -- -- 671
Reallocation of
minority interest . . . -- -- (249) -- -- (249)
Dividends paid in
excess of earnings. . . -- -- -- -- (2,120) (2,120)
---------- ---- ------- ------- ------- -------
Balance at
March 31, 1999. . . . . . 20,943,002 $209 421,108 (10,722) (69,110) 341,485
========== ==== ======= ======= ======= =======
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
(Dollars in thousands)
<CAPTION>
1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,280 5,326
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 4,901 4,422
Income from partnerships. . . . . . . . . . . . . . . . . . . . . . . . . (750) (294)
Loss from Service Companies . . . . . . . . . . . . . . . . . . . . . . . 374 116
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,148 933
Changes in assets and liabilities:
Increase in deferred costs. . . . . . . . . . . . . . . . . . . . . . . . (131) (75)
Decrease in security deposits . . . . . . . . . . . . . . . . . . . . . . 2 157
Decrease (increase) in other assets . . . . . . . . . . . . . . . . . . . 1,367 (980)
Decrease in accrued real estate taxes and interest payable. . . . . . . . (3,922) (3,704)
(Decrease) increase in tenant security deposits and prepaid rents . . . . (160) 327
Decrease in other liabilities . . . . . . . . . . . . . . . . . . . . . . (347) (379)
-------- -------
Net cash provided by operating activities . . . . . . . . . . . . . . 9,762 5,849
-------- -------
Cash flows from investing activities:
Investments in partnerships . . . . . . . . . . . . . . . . . . . . . . . . . (2,108) (307)
Cash distributions from partnerships. . . . . . . . . . . . . . . . . . . . . 1,500 1,176
Advances to affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,655) (65)
Earnest money deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 117
Acquisition properties. . . . . . . . . . . . . . . . . . . . . . . . . . . . (754) (18,895)
Capital expenditures - rehab properties . . . . . . . . . . . . . . . . . . . (547) (472)
Capital expenditures - other properties . . . . . . . . . . . . . . . . . . . (421) (320)
Properties under development, net of co-investors' share of costs . . . . . . (7,557) (34,891)
Increase in construction costs payable. . . . . . . . . . . . . . . . . . . . 443 1,528
-------- -------
Net cash used in investing activities . . . . . . . . . . . . . . . . (13,857) (52,129)
-------- -------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
1999 1998
-------- --------
Cash flows from financing activities:
Debt proceeds, net of financing costs . . . . . . . . . . . . . . . . . . . . 51,934 68,651
Debt repayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,829) (40,633)
Proceeds from shares offering, net of issuance costs. . . . . . . . . . . . . -- 24,750
Proceeds from issuance of Executive Share Purchase Plan shares,
net of Employees' and Trustees' notes . . . . . . . . . . . . . . . . . . . 316 326
Distributions to partners . . . . . . . . . . . . . . . . . . . . . . . . . . (1,604) (1,444)
Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,400) (7,780)
-------- -------
Net cash provided by financing activities . . . . . . . . . . . . . . 2,417 43,870
-------- -------
Net decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . . (1,678) (2,410)
Cash and cash equivalents at beginning of period. . . . . . . . . . . . . . . . 4,546 5,676
-------- -------
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . . . . . $ 2,868 3,266
======== =======
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest, net of amounts capitalized . . . . $ 5,273 4,840
======== ========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
(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 March 31, 1999 and December 31, 1998 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, 1998 Annual Report on Form 10-K filed with the Securities and Exchange
Commission. The results for the three months ended March 31, 1999 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 owned an 86% majority interest in the Operating
Partnership at March 31, 1999. 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.
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
In September 1998, AMLI initiated its first community rehab since its
initial public offering by commencing the rehab of AMLI at Riverbend in
Indianapolis, Indiana. In addition, three other properties, AMLI at Spring
Creek in Atlanta, Georgia; AMLI at Valley Ranch in Irving, Texas; and AMLI
at North Dallas in Dallas, Texas, have begun rehab programs in 1999. A
rehab is a capital improvement program involving significant repairs,
replacements and improvements at an aggregate cost of at least the greater
of $3,000 per apartment home or 5% of the value of the entire apartment
community. All costs (except costs to routinely paint the interiors of
units at turnover) associated with a rehab will be capitalized and
depreciated over their policy lives. The Company has incurred rehab costs
of $547 and $472 during the three and twelve months ended March 31, 1999
and December 31, 1998, respectively.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Properties Under Development
Land being planned for development and all apartment homes in a new
community or new phase are 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 March 31, 1999, 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 2000. Properties under
development are as follows:
<PAGE>
<TABLE> AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<CAPTION>
NUMBER NUMBER TOTAL
OF OF EXPENDED
COMMUNITY LOCATION ACRES UNITS THRU 3/31/99
- --------- -------- ------ ------ -------------
<S> <C> <C> <C> <C>
Wholly-Owned:
Development Communities:
AMLI:
at Bent Tree II Dallas, TX 10 200 $ 2,674
at Monterey Oaks (1) Austin, TX 26 430 5,635
at Killian Creek Gwinnett County, GA 22 216 12,444
at St. Charles (1) St. Charles, IL 25 400 12,104
--- ----- --------
Total Development Communities 83 1,246 32,857
--- ----- --------
Land Held for Future Development:
AMLI:
at Champions II (1) Houston, TX 14 288 2,414
at Kings Harbor (1) Houston, TX 15 300 2,156
at Mesa Ridge (1) Ft. Worth, TX 27 520 3,807
at Fossil Lake Ft. Worth, TX 19 324 2,903
at Park Bridge (1) Atlanta, GA 35 352 4,088
at Prairie Lakes I Noblesville, IN 17 228 869
at Prairie Lakes II-IV Noblesville, IN 103 1,100 4,248
at Summit Ridge (1) Summit, MO 24 410 1,806
--- ----- --------
Total Land Held for Future Development 254 3,522 22,291
--- ----- --------
Total Wholly-Owned 337 4,768 55,148
--- ----- --------
Co-Investments (Company Ownership Percentage):
AMLI:
at Northwinds (35%) Atlanta, GA 80 800 47,914
at Deerfield (25%) Plano, TX 18 240 13,500
at Oakhurst North (25%) Aurora, IL 29 464 41,001
at Wells Branch (25%) Austin, TX 29 576 34,002
Creekside (25%) Overland Park, KS 12 224 4,284
at Wynnewood Farms (25%) Overland Park, KS 20 232 3,634
at Regents Crest II (25%) Overland Park, KS 6 108 2,147
at Castle Creek (40%) Indianapolis, IN 16 276 4,977
at Lake Clearwater (25%) Indianapolis, IN 11 216 5,756
--- ----- --------
Total Co-Investments 221 3,136 157,215
--- ----- --------
Total 558 7,904 $212,363
=== ===== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<FN>
(1) It is the Company's intention to develop these land parcels in partnership with one or more institutional
investors.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
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 March 31, 1999, the Company was a party to various interest rate
swap agreements which require the Company to pay to or receive from
counterparties on a monthly basis the amounts, if any, by which the
Company's interest costs on the fixed rate basis differs from the interest
payments required on certain floating rate debt.
The Company is exposed to credit losses in the event of
nonperformance by the counterparties to its interest rate swaps. The
Company does not obtain collateral or other security to support financial
instruments subject to credit risk but monitors the credit standing of
counterparties. The company anticipates, however, that the counterparties
will be able to fully satisfy their obligations under the contracts.
The following summarizes certain information pursuant to interest
rate limitation and swap contracts at March 31, 1999.
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<CAPTION>
Type Remaining Cumulative Approximate
Notional Fixed of Contract Cash Value of
Amount Rate(1) Contract Maturity Paid Liability(2)
- -------- ------- -------- --------- ---------- -------------
<S> <C> <C> <C> <C> <C>
$10,000 6.216% Swap 11/01/02 $ 89 246
10,000 6.029% Swap 11/01/02 64 185
20,000 6.145% Swap 02/15/03 143 461
10,000 6.070% Swap 02/18/03 63 204
---- -----
$359 1,096
==== =====
<FN>
(1) The fixed rate for the swaps includes the swap spread (the risk component added to the Treasury yield to
determine a fixed rate) and excludes lender's spread.
(2) "Value of Liability" represents the approximate amount which would have to be paid as of March 31, 1999 to
terminate these contracts. This amount is not recorded as a liability in the accompanying balance sheet as of
March 31, 1999.
(3) Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities," becomes effective for all fiscal quarters for fiscal years beginning after June 15, 1999 and is not
expected to have a material impact on the Company's financial statements.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
PER SHARE DATA
In accordance with Statement of Financial Accounting Standards
No. 128, "Earnings Per Share," basic EPS is computed by dividing income
available to common shareholders by the weighted average number of common
shares outstanding for the period. Diluted EPS reflects the potential
dilution that could occur if securities or other contracts to issue common
stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the entity. A
reconciliation of the numerator and denominator of the basic EPS
computation to the numerator and denominator of the diluted EPS computation
is as follows:
Three months ended
March 31,
------------------------
1999 1998
---------- ----------
Net income. . . . . . . . . . . . . . . . $ 7,280 5,326
Less income attributable to
preferred shares. . . . . . . . . . . . (1,873) (604)
---------- ----------
Net income attributable to
common shares . . . . . . . . . . . . . $ 5,407 4,722
========== ==========
Weighted average common
shares - Basic. . . . . . . . . . . . . 16,739,804 16,591,904
Dilutive Options and Other
Plan shares . . . . . . . . . . . . . . 38,253 94,194
---------- ----------
Weighted average common
shares - Dilutive . . . . . . . . . . . 16,778,057 16,686,098
========== ==========
Net income per common share:
Basic . . . . . . . . . . . . . . . . $ .32 .28
Diluted . . . . . . . . . . . . . . . $ .32 .28
========== ==========
3. INVESTMENTS IN PARTNERSHIPS AND SERVICE COMPANIES
INVESTMENTS IN PARTNERSHIPS
At March 31, 1999, the Operating Partnership is a general partner in
various co-investment partnerships and in the GP Properties (AMLI at
Prairie Court in Oak Park, Illinois and AMLI at Towne Creek in Gainesville,
Georgia) which are accounted for using the equity method. The Operating
Partnership and the Service Companies receive various fees for services
provided to these co-investment partnerships, including development fees,
construction fees, acquisition fees, property management fees, asset
management fees, financing fees, administrative fees and disposition fees.
The Operating Partnership is entitled to shares of cash flow or liquidation
proceeds in excess of its stated ownership percentages, in most cases based
on returns to its partners in excess of specified rates. Through March 31,
1999, the Operating Partnership has received $557 of cash flow in excess of
its ownership percentages ($187 for the three months ended March 31, 1999).
Investments in partnerships at March 31, 1999 and the Company's 1999 share
of income or loss from each are summarized as follows:
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<CAPTION>
Equity Total Company's Company's
Company's ---------------- Company's Net Share of Share of
Percentage Total Company's Investment Income Net Income Deprecia-
Community Ownership Assets Total Share (1) (1) (Loss) (Loss) tion
- --------- ---------- ------- ----- --------- ---------- ----- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AMLI:
at Park Place 25% $19,036 6,338 1,585 1,550 135 34 34
at Greenwood
Forest 15% 16,272 4,494 674 656 (13) (2) 18
at Champions
Park 15% 12,002 3,003 450 450 9 1 13
at Champions
Centre 15% 9,136 2,395 359 359 (1) -- 11
at Windbrooke 15% 16,647 4,593 689 689 56 8 19
at Willeo Creek 30% 14,458 4,439 1,332 1,332 42 13 38
at Pleasant Hill 40% 25,613 10,123 4,268 3,832 194 78 82
at Barrett Lakes 35% 26,183 9,223 3,228 3,338 111 39 79
at Chevy Chase 33% 43,535 13,202 4,347 4,347 332 110 105
at Willowbrook 40% 36,107 11,087 4,435 4,347 242 97 114
at River Park 40% 14,754 5,570 2,228 2,182 98 39 44
at Fox Valley 25% 24,142 23,613 5,903 6,095 288 72 46
at Fossil Creek 25% 20,969 20,736 5,184 5,278 372 93 45
at Danada Farms 10% 47,088 21,058 2,106 2,096 309 31 34
at Verandah 35% 23,896 6,547 2,311 2,370 (35) 10 96
at Northwinds 35% 47,917 21,067 7,387 7,218 117 41 117
at Regents Crest 25% 27,272 10,758 2,689 2,717 127 59 42
at Oakhurst North 25% 42,507 39,243 9,811 9,785 17 4 50
at Wells Branch 25% 34,334 33,539 8,385 7,802 245 61 67
on the Parkway 25% 16,305 5,339 1,335 1,014 (27) (7) 52
on Timberglen 40% 11,124 4,256 1,705 279 (13) 3 46
at Castle Creek 40% 5,043 4,276 1,710 1,701 -- -- --
at Lake Clear-
water 25% 5,761 4,904 1,226 1,207 -- -- --
Creekside 25% 4,298 3,992 998 1,003 -- -- --
at Deerfield 25% 13,483 6,040 1,510 1,361 (40) (10) 5
at Wynnewood
Farms 25% 3,675 3,132 783 723 -- -- --
-------- ------- ------ ------ ----- ----- ------
$561,557 282,967 76,638 73,731 2,565 774 1,157
======== ======= ====== ====== ===== ======
GP Properties and other (24)
-----
750
=====
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(1) The Company's investment in partnerships differs from the
Company's share of co-investment partnerships' equity primarily due to
capitalized interest on its investments in properties under development and
the elimination of the Company's share of development fee income. These
items are amortized over 40 years using the straight-line method.
The Company's original investment in the co-investment partnerships
totals $82,372 at March 31, 1999.
All but one debt financing has been obtained at fixed rate from
various insurance companies on behalf of these co-investment partnerships.
AMLI at Deerfield's financing is a variable rate note payable to AMLI. The
following summarizes co-investment debt at March 31, 1999:
Total Outstanding Interest
Community Commitment at 3/31/99 Rate Maturity
- --------- ---------- ----------- -------- --------
AMLI:
at Park Place $13,000 12,160 8.21% October 1999
at Deerfield 11,370 5,889 L+1.5% December 1999
at Champions Centre 6,700 6,571 8.93% January 2002
at Champions Park 9,500 8,806 7.26% January 2002
at Windbrooke 11,500 11,390 9.24% February 2002
at Greenwood Forest 11,625 11,536 8.95% May 2002
at Chevy Chase 29,767 28,821 6.67% April 2003
at Willeo Creek 10,000 9,701 6.77% May 2003
at Willowbrook 24,500 23,871 7.785% May 2003
at Regents Crest 16,500 15,943 7.50% December 2003
at Verandah 16,940 16,940 7.55% April 2004
on Timberglen 6,770 6,701 7.70% June 2004
at Danada Farms 24,500 24,500 7.33% March 2007
at Pleasant Hill 15,500 15,126 9.15% March 2007
at River Park 9,100 8,928 7.75% June 2008
on the Parkway 10,800 10,769 6.75% January 2009
at Barrett Lakes 16,680 16,626 8.50% December 2009
at Northwinds 33,800 23,847 8.25% October 2010
In general, 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.
Investments in Service Companies
Summarized combined financial information of the Service Companies at and
for the three months ended March 31, 1999 and 1998 follows:
1999 1998
------- -------
Income (1) $ 2,751 2,348
General and adminis-
trative expenses (2,075) (1,644)
------- -------
EBITDA 676 704
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
1999 1998
------- -------
Interest (704) (545)
Depreciation (2) (362) (298)
Income taxes 147 46
------- -------
Loss $ (243) (93)
======= =======
Total assets $38,279 25,622
======= =======
(1) Net of construction and landscaping costs.
(2) Includes $100 in amortization of goodwill each year.
Substantially all interest expense of the Service Companies results
from notes payable to the Company at interest rates ranging from 9.5% to
13.0%. Interest and share of income from Service Companies as included in
the accompanying Consolidated Statements of Operations is reconciled below:
March 31,
-----------------
1999 1998
------ ------
Intercompany interest expensed. . . . . . . $ 704 545
Intercompany interest capitalized . . . . . 309 --
Loss. . . . . . . . . . . . . . . . . . . . (243) (93)
Intercompany eliminations and
minority interests. . . . . . . . . . . . (131) (23)
----- -----
$ 639 429
===== =====
4. RELATED PARTY TRANSACTIONS
During the three months ended March 31, 1999 and 1998, the Company
accrued or paid to its affiliates fees and other costs and expenses as
follows:
1999 1998
---- ----
Management fees $707 638
General contractor fees 89 322
Interest expense 137 150
Landscaping and grounds maintenance 223 179
==== ====
In addition, at March 31, 1999 and December 31, 1998, the Company owed
Amrescon $1,249 and $1,967, respectively, for construction costs of
communities under development.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
During the three months ended March 31, 1999 and 1998, the Company
earned or received from its affiliates other income as follows:
1999 1998
----- ------
Development fees $ 320 102
Asset management fees 151 151
Accounting and administrative fees 2 2
Interest on advances to other
affiliates 79 6
Interest on notes and advances
to Service Companies 1,013 546
===== =====
In addition, total revenues of $656 and $447, respectively, were
generated from leases to AMLI Corporate Homes ("ACH"), a division of one of
the Service Companies. At March 31, 1999 and December 31, 1998, ($30) and
$22 were due (to) from ACH, respectively.
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
5. DEBT
The table below summarizes certain information relating to the indebtedness of the Company.
<CAPTION>
Balance Balance
Original at Interest Maturity at
Encumbered Communities Amount 3/31/99 Rate Date 12/31/98
- ---------------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
BOND FINANCING:
Tax-Exempt
Unsecured (1) $ 40,750 40,750 Rate+1.23% 10/1/24 40,750
Tax-Exempt
AMLI at Poplar Creek 9,500 9,500 Rate+1.15% 2/1/24 9,500
-------- ------- -------
Total Bonds 50,250 50,250 50,250
-------- ------- -------
MORTGAGE NOTES PAYABLE TO FINANCIAL INSTITUTIONS:
AMLI at Conner Farms 13,275 12,681 7.00% 6/15/03 12,739
AMLI at Sherwood 7,320 6,569 7.75% 7/1/03 6,621
AMLI at Riverbend 31,000 29,715 7.30% 7/1/03 29,847
AMLI in Great Hills 11,000 10,547 7.34% 7/1/03 10,593
AMLI at Valley Ranch 11,500 10,411 7.625% 7/10/03 10,470
AMLI at Nantucket 7,735 7,656 7.70% 6/1/04 7,683
AMLI at Bishop's Gate 15,380 15,006 (2) 8/1/05 15,072
AMLI at Regents Center 20,100 19,604 (3) 9/1/05 19,649
AMLI on the Green (4)
AMLI of North Dallas (4) 43,234 41,619 7.789% 5/1/06 41,778
AMLI at Clairmont 12,880 12,880 6.95% 2/15/08 12,880
-------- ------- --------
Total Mortgage Notes Payable 173,424 166,688(5) 167,332
-------- ------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Balance Balance
Original at Interest Maturity at
Encumbered Properties Amount 3/31/99 Rate Date 12/31/98
- --------------------- -------- -------- -------- -------- --------
OTHER NOTES PAYABLE:
AMLI at Park Creek 10,322 10,287 7.875% 12/1/38 9,038
Unsecured line of credit (6)(7) 200,000 147,500 L+.90% 6/27/01 135,000
Note payable to Service Company 5,000 5,000 10.00% 1/1/03 5,000
Unsecured note payable to Service Company 750 750 4.00% Demand 750
-------- ------- --------- ------- -------
Total Other Notes Payable 216,072 163,537 149,788
-------- ------- -------
Total $439,746 380,475 367,370
======== ======= =======
<FN>
(1) The terms of these tax-exempt 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 (4.15% for AMLI at Spring Creek and 3.97%
for AMLI at Poplar Creek at April 28, 1999). The credit enhancement for the AMLI at Spring Creek bonds was
provided by a $41,297 letter of credit from Wachovia Bank which expires on October 15, 2002 and the credit
enhancement for the AMLI at Poplar Creek bonds was provided by a $9,617 letter of credit from LaSalle National
Bank that expires December 18, 2002.
(2) This original $14,000 mortgage bears interest at 9.1%. For financial reporting purposes, it was valued at
$15,380 to reflect a 7.25% market rate of interest when assumed in connection with the acquisition of AMLI at
Bishop's Gate on October 17, 1997.
(3) $13,800 at 8.73% and $6,300 at 9.23%.
(4) These two properties secure the FNMA loan that was sold at a discount of $673. At March 31, 1999, the
unamortized discount amount is $477.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(5) All but $21,104 of the total is non-recourse to the partners of the Operating Partnership.
(6) The Company has used interest rate swaps on $50,000 of the outstanding amount to fix its base interest rate
(before current lender's spread) at an average of 6.12%.
(7) The Company's $200,000 unsecured line of credit has been provided by a group of six banks led by Wachovia
Bank, N.A. and the First National Bank of Chicago. The credit agreement provides for annual one-year extensions
and reductions in the interest rate based on the future credit rating the Company is able to obtain. In June
1998, the Company extended the maturity of the line of credit by one year to June 2001. This unsecured line of
credit 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. The unsecured line of credit is used
for acquisition and development activities and working capital needs.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
As of March 31, 1999, the scheduled maturities of the Company's debt are as follows:
<CAPTION>
FIXED RATE
MORTGAGE NOTES
NOTES PAYABLE UNSECURED PAYABLE TO
BOND TO FINANCIAL LINES SERVICE
FINANCINGS INSTITUTIONS OF CREDIT COMPANIES TOTAL
---------- ------------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
1999. . . . . . . . . . . . . . . . . . $ -- 2,029 -- 750 2,779
2000. . . . . . . . . . . . . . . . . . -- 3,034 -- -- 3,034
2001. . . . . . . . . . . . . . . . . . -- 3,281 147,500 -- 150,781
2002. . . . . . . . . . . . . . . . . . 50,250 3,534 -- -- 53,784
2003. . . . . . . . . . . . . . . . . . -- 65,785 -- 5,000 70,785
Thereafter. . . . . . . . . . . . . . . -- 99,312 -- -- 99,312
------- ------- ------- ------- -------
$50,250 176,975 147,500 5,750 380,475
======= ======= ======= ======= =======
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
6. COMMITMENTS AND CONTINGENCIES
The limited partnership agreements of AMLI at Verandah L.P. and AMLI on
Timberglen provide for the redemption (at an amount determined by formula)
by the partnerships of the limited partner's entire interest, in their sole
discretion, at any time after March 25, 2002 and December 16, 2003, or at
any time that there is a designated event of default on related
indebtedness of the partnerships, 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.
7. SEGMENT REPORTING
The revenues, net operating income, FFO and assets for the Company's
reportable segment are summarized as follows:
March 31,
-------------------------
1999 1998
---------- ----------
Multifamily segment revenues (1). . . . . . . $ 47,329 39,637
========== ==========
Multifamily segment net operating
income (1). . . . . . . . . . . . . . . . . $ 29,159 23,512
Reconciling items to FFO:
Reduce co-investment net operating
income to Company's share (2). . . . . . . (9,750) (7,138)
Interest income and share of income
(loss) from Service Companies . . . . . . 739 533
Other interest income . . . . . . . . . . . 327 191
Other revenues. . . . . . . . . . . . . . . 473 288
General and administrative expenses . . . . (1,046) (854)
Interest expense and loan cost
amortization. . . . . . . . . . . . . . . (5,427) (5,068)
---------- ----------
Consolidated FFO before minority
interest. . . . . . . . . . . . . . . . . . 14,475 11,464
---------- ----------
Reconciling items to net income:
Depreciation - wholly owned
Properties. . . . . . . . . . . . . . . . (4,790) (4,291)
Depreciation - share of
co-investment Properties. . . . . . . . . (1,157) (810)
Share of Service Company's
goodwill amortization . . . . . . . . . . (100) (104)
---------- ----------
Income before minority interest
and extraordinary items . . . . . . . . . . 8,428 6,259
Minority interest . . . . . . . . . . . . . . (1,148) (933)
---------- ----------
Income before extraordinary
items . . . . . . . . . . . . . . . . . . . $ 7,280 5,326
========== ==========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
March 31, December 31,
1999 1998
---------- ------------
Segment assets (1) (3). . . . . . . . . . . . $1,306,469 1,281,291
========== ==========
(1) Represents revenues from wholly owned and co-investment properties.
(2) Represents amount required to reduce co-investment properties' net
operating income to the Company's share of net operating income from
partnerships.
(3) Represents original acquisition costs of wholly owned and co-
investment properties.
The Company does not derive any of its consolidated revenues from
foreign countries and does not have any major customers that individually
account for 10% or more of the Company's consolidated revenues.
<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
March 31, 1999 and December 31, 1998 and for the three months ended
March 31, 1999 and 1998.
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.
The Company commenced operations upon completion of its initial public
offering in February 1994. 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. In November 1996, the Company completed a public
offering of 2,976,900 common shares. In July 1997, the Company closed on
an offering of 1,694,700 common shares. In February 1998, the Company
placed 3,125,000 convertible preferred shares for $24 per share with
Security Capital Preferred Growth Incorporated. 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 March 31, 1999, the Company owned an 86% general partnership interest
in AMLI Residential Properties, L.P. (the "Operating Partnership"), which
holds the operating assets of the Company. The limited partners hold
Operating Partnership units ("OP Units") that are convertible into common
shares of the Company on a one-for-one basis, subject to certain
limitations. At March 31, 1999, the Company owned 20,943,002 OP Units and
the limited partners owned 3,521,803 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, 1998 through March 31, 1999, growth
from property revenues and property operating expenses resulted from
increases at communities owned as of January 1, 1998, from communities
acquired and from the newly-constructed communities since January 1, 1998.
Since January 1, 1998, the Company has acquired a total of 1,102 units
of four stabilized communities (AMLI at Clairmont, AMLI at Centennial Park,
AMLI at Lexington Farms and AMLI at Eagle Creek) and developed and begun
rental operations on 456 apartment homes of two new communities (AMLI at
Park Creek and AMLI at Killian Creek). Property operations for the three
months ended March 31, 1999 and 1998 are summarized as follows:
Increase
1999 1998 (Decrease)
------- ------- ---------
Total Property Revenues
- -----------------------
Same Communities . . . . . . . $23,775 23,176 599
New Communities. . . . . . . . 1,769 653 1,116
Development and/or Lease-up
Communities . . . . . . . . . 188 73 115
Acquisition Communities. . . . 2,531 560 1,971
Communities Contributed
to Ventures/Sold. . . . . . . 1 968 (967)
------- ------- -------
Total . . . . . . . . . . . $28,264 25,430 2,834
======= ======= =======
<PAGE>
Increase
1999 1998 (Decrease)
------- ------- ---------
Total Property Operating Expenses
- ---------------------------------
Same Communities . . . . . . . $ 9,164 9,103 61
New Communities. . . . . . . . 544 323 221
Development and/or Lease-up
Communities . . . . . . . . . 146 50 96
Acquisition Communities. . . . 898 170 728
Communities Contributed
to Ventures/Sold. . . . . . . 10 544 (534)
------- ------- -------
Total . . . . . . . . . . . $10,762 10,190 572
======= ======= =======
Total Property Net Operating Income
- -----------------------------------
Same Communities . . . . . . . $14,611 14,073 538
New Communities. . . . . . . . 1,225 330 895
Development and/or Lease-up
Communities . . . . . . . . . 42 23 19
Acquisition Communities . . . 1,633 390 1,243
Communities Contributed
to Ventures/Sold. . . . . . . (9) 424 (433)
------- ------- -------
Total . . . . . . . . . . . $17,502 15,240 2,262
======= ======= =======
The term "New Communities" refers to completed properties owned since
the beginning of the earliest period for which comparative financial
information is presented.
Property Net Operating Income is computed before interest, taxes,
depreciation and amortization. This performance measure is not intended as
a replacement for net income determined in accordance with generally
accepted accounting principles ("GAAP").
In December 1998, the Company contributed AMLI on Timberglen, a 260-
unit property, to a 40% owned partnership. In addition, the Company in
joint venture with institutional investors, completed the development or
has under development and begun rental operations of five new communities
that contain a total of 2,320 apartment homes (AMLI at Northwinds, AMLI at
Wells Branch, AMLI at Oakhurst North, AMLI on the Parkway and AMLI at
Deerfield). Property operations for the three months ended March 31, 1999
and 1998 are summarized as follows:
Increase
1999 1998 (Decrease)
------- ------- ---------
Total Co-investment Property Revenues
- -------------------------------------
Same Communities . . . . . . . $14,391 13,798 593
New Communities. . . . . . . . 1,688 945 743
Development and/or Lease-up
Communities . . . . . . . . . 3,379 235 3,144
Acquisition Communities. . . . -- -- --
Communities Contributed
to Ventures/Sold. . . . . . . 463 -- 463
------- ------- -------
Total . . . . . . . . . . . $19,921 14,978 4,943
======= ======= =======
Company's share of co-invest-
ment total revenues . . . . . $ 5,372 3,949 1,423
======= ======= =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
Increase
1999 1998 (Decrease)
------- ------- ---------
Total Co-investment Property Operating Expenses
- -----------------------------------------------
Same Communities . . . . . . . $ 5,425 5,498 (73)
New Communities. . . . . . . . 664 621 43
Development and/or Lease-up
Communities . . . . . . . . . 1,425 172 1,253
Acquisition Communities. . . . -- -- --
Communities Contributed
to Ventures/Sold. . . . . . . 225 -- 225
------- ------- -------
Total . . . . . . . . . . . $ 7,739 6,291 1,448
======= ======= =======
Company's share of co-invest-
ment property operating
expenses. . . . . . . . . . . $ 2,048 1,636 412
======= ======= =======
Total Co-investment Property
Net Operating Income
- ----------------------------
Same Communities . . . . . . . $ 8,966 8,300 666
New Communities. . . . . . . . 1,024 324 700
Development and/or Lease-up
Communities . . . . . . . . . 1,954 63 1,891
Acquisition
Communities . . . . . . . . . -- -- --
Communities Contributed to
Ventures/Sold . . . . . . . . 238 -- 238
------- ------- -------
Total . . . . . . . . . . . $12,182 8,687 3,495
======= ======= =======
Company's share of co-invest-
ment property EBITDA . . . . . $ 3,388 2,363 1,025
======= ======= =======
For the three months ended March 31, 1999, net income attributable to
common shares was $5,407 or $.32 per share on total revenues of $30,453.
For the three months ended March 31, 1998, net income attributable to
common shares was $4,722, or $.28 per share on total revenues of $26,662.
On a "same community" basis, weighted average occupancy of the apartment
homes owned wholly by the Company decreased slightly to 92.4% for the three
months ended March 31, 1999 from 93.3% in the prior year. Weighted average
collected rental rates increased by 3.1% to $726 from $705 per unit per
month for the three months ended March 31, 1999 and 1998, respectively.
Including Co-Investment Communities, weighted average occupancy of the
Company's apartment homes decreased to 92.6% for the three months ended
March 31, 1999 from 93.7% in the prior year, and weighted average collected
rental rates increased by 3.4% to $759 from $735 per unit per month for the
three months ended March 31, 1999 and 1998, respectively.
COMPARISON OF THREE MONTHS ENDED MARCH 31, 1999 TO THREE MONTHS ENDED
MARCH 31, 1998.
Income before minority interest increased to $8,428 for the three months
ended March 31, 1999 from $6,259 for the three months ended March 31, 1998.
This increase was primarily attributable to a $3,791 increase in total
revenues, reduced by a $2,668 increase in property operating expenses, a
$378 increase in interest expense and a $499 increase in depreciation. Net
income for the three months ended March 31, 1999 and 1998 was $7,280 and
$5,326, respectively.
<PAGE>
Total property revenues increased by $2,834, or 11.1%. This increase in
property revenues was primarily from the 1,102 apartment homes acquired
during 1988. In addition, leasing commenced on 456 apartment homes
developed by the Company during 1998. Furthermore, moderate increases in
rental rates were achieved while managing and maintaining just below 95%
average occupancy at the communities. Other property revenues include
increases in revenues from garages and carport ($226), telephone and cable
systems ($88) and other fees ($1,255) charged to residents. On the same
community basis total property revenues increased by $599, or 2.6%.
Interest and share of income from Service Companies increased 49% to $639
from $429 as a result of additional advances to the Service Companies to
fund the acquisition cost of non-residential land and the cost of computer
hardware and software.
Income from partnerships increased to $750 from $324, or 131.5%. This
increase was a result of the contribution of a 260-unit apartment community
into a co-investment partnership in 1998. In addition, five new co-
investment partnerships have invested in five development communities,
which has a total of 2,320 apartment homes that began rental operations in
late 1998 and 1999.
Other income increased to $473 from $288, or 64.2% as a result of fees
charged to newly formed co-investment partnerships that own properties
under development. This increase includes a $219 increase in development
fees.
Other interest income increased by $136. This increase was from additional
employee notes for purchase of the Company's shares, from increased short-
term advances to co-investment partnerships, and from a gap loan to one co-
investment partnership that is anticipated to be repaid by year end.
Property operating expenses increased by $572, or 5.6%. This increase is
principally due to the increase in the number of apartment homes through
acquisition or development. On the same community basis, property
operating expenses increased by $61 or .7%.
Interest expense, net of the amounts capitalized, increased to $5,316 from
$4,938 or 7.7%, primarily due to increased indebtedness incurred in
conjunction with properties under development and investments in joint
ventures.
General and administrative expenses increased to $1,046 for the three
months ended March 31, 1999 from $854 for the three months ended March 31,
1998. 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
At March 31, 1999, the Company had $2,868 in cash and cash equivalents and
$52,500 in availability under its $200,000 unsecured line of credit.
At March 31, 1999, nineteen of the Company's wholly-owned stabilized
Communities were unencumbered. There are no other fixed rate loans on
wholly-owned Communities with maturity dates prior to July 2003.
Net cash flows provided by operating activities for the three months ended
March 31, 1999 increased to $9,762 from $5,849 for the three months ended
March 31, 1998. The increase is primarily due to an increase in property
net operating income and an increase in other revenue, reduced by increases
in interest expense and general and administrative expense.
Cash flows used in investing activities for the three months ended
March 31, 1999 deceased to $13,857 from $52,129 for the three months ended
March 31, 1998. The decrease consisted primarily of fewer expenditures for
acquisition and development costs and more working capital advances to the
Service Companies.
<PAGE>
Net cash flows provided by financing activities for the three months ended
March 31, 1999 were $2,417, which reflect net proceeds of additional
borrowings and dividend payments. In 1998, cash flows include net proceeds
from preferred shares issued, net proceeds of borrowings and dividend
payments.
Funds from operations ("FFO") is defined as net income (computed in
accordance with GAAP), excluding gains (losses) from debt restructuring and
sales of property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships, joint ventures and other
affiliates. Adjustments for unconsolidated partnerships, joint ventures
and other affiliates are calculated to reflect FFO on the same basis.
FFO is widely accepted in measuring the performance of equity REITs. An
understanding of the Company's FFO 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. FFO 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.
FFO for the three months ended March 31, 1999 and 1998 is summarized as
follows:
MARCH 31,
------------------------
1999 1998
------- -------
Net income before minority
interest $ 8,428 6,259
Depreciation 4,790 4,291
Share of co-investment partner-
ships' depreciation 1,157 810
Share of Service Company's
goodwill amortization 100 104
------- ------
FFO $14,475 11,464
======= ======
Weighted average shares and
units including dilutive
shares 24,494 21,332
======= ======
FFO shown above is net of startup losses at newly-constructed communities.
At some communities, the initial lease-up was so rapid that there were no
startup losses.
In the typical situation, startup losses will be recorded between the time
the first apartment building is delivered from construction until occupancy
levels are adequate to recover all costs and expenses (including interest
but excluding depreciation). FFO, as shown above for the three months
ended March 31, 1999 and 1998, is shown net of startup losses of $158 and
$419, respectively. The startup losses for the three months ended
March 31, 1999 are attributable to the initial lease-up of AMLI at Wells
Branch, AMLI at Oakhurst North, AMLI at Killian Creek and AMLI at
Deerfield. Additional amounts will be recorded in future quarters of 1999
as initial lease-up is completed or continued at these and other
communities which will enter the lease-up period during 1999.
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.
<PAGE>
The Company intends to finance the majority of its future development
activities by co-investing these developments with institutional partners.
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 1999 estimated dividend payment
level equals an annual rate of $1.80 per common share. The Company
anticipates that all dividends to be paid in 1999 will be fully taxable.
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. Through March 31, 1999, 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.
COMPANY INDEBTEDNESS
The Company's debt as of March 31, 1999 includes $176,975 (46.5% of
the total) which is secured by first mortgages on 12 of the wholly-owned
communities and is summarized as follows:
SUMMARY DEBT TABLE
------------------
Type of Weighted Average Outstanding Percent
Indebtedness Interest Rate Balance of Total
- ------------ ---------------- ----------- --------
Fixed Rate
Mortgages 7.6% $176,975 46.5%
Tax-Exempt Tax-Exempt Rate + 1.23% 50,250 13.2%
Bonds (1) Tax-Exempt Rate + 1.15%
Lines of
Credit (2) LIBOR + 0.90% 147,500 38.8%
Notes payable
to Service
Companies Various 5,750 1.5%
-------- -----
Total $380,475 100.0%
======== =====
- --------------------
(1) The tax-exempt bonds bear interest at a variable tax-exempt rate that
is adjusted weekly based on the re-marketing of these bonds (4.15% % for
AMLI at Spring Creek and 3.97% for AMLI at Poplar Creek at April 28, 1999).
The AMLI at Spring Creek bonds mature on October 1, 2024 and the related
credit enhancement expires on October 15, 2002. The AMLI at Poplar Creek
bonds mature on February 1, 2024 and the related credit enhancement expires
on December 18, 2002.
(2) Amounts borrowed under lines of credit are due in 2001. The interest
rate on $50,000 has been fixed pursuant to interest rate swap contracts.
<PAGE>
DEVELOPMENT ACTIVITIES
At March 31, 1999, the Company has made capital contributions totalling
$83,243 to its existing co-investment partnerships and anticipates funding
substantially all of its remaining commitment of $19,248 during 1999 to
complete the 3,136 apartment homes being developed by co-investment
partnerships.
Two of the four wholly-owned communities currently under development, AMLI
at St. Charles and AMLI at Monterey Oaks, are anticipated to be contributed
to co-investment partnerships during 1999. These 830 apartment homes under
construction have estimated costs to complete of $55,061, that are
anticipated to be funded in 1999 and 2000. The Company expects to incur
$12,982 in 1999 to complete the 416 apartment homes in the remaining two
wholly-owned communities under development.
The Company owns land for the development of an additional 3,522 apartment
homes in Ft. Worth and Houston, Texas; Noblesville, Indiana; Lees Summit,
Missouri and Atlanta, Georgia. The Company has earnest money deposits of
$899 for seven land parcels anticipated to be acquired in 1999 for future
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.
REHAB EXPENDITURES
In September 1998, AMLI initiated its first community rehab since its
initial public offering. Rehab is a capital improvement program involving
significant repairs, replacements and improvements at an aggregate cost of
at least the greater of $3,000 per apartment home or 5% of the value of the
entire apartment community. All costs (except costs to routinely paint the
interiors of units at turnover) associated with a rehab will be capitalized
and depreciated over their policy lives.
AMLI's larger properties were built in phases, and the rehabs of these
larger properties are anticipated to be done in phases, each extending over
consecutive periods not exceeding 24 months.
At March 31, 1999, four communities were under rehab and have incurred
costs as follows:
AMLI:
at Riverbend $ 759
at Spring Creek 101
at North Dallas 110
at Valley Ranch 49
------
$1,019
======
<PAGE>
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) average approximately 40% of rental and
other property 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 (including the
Company's proportionate share of its co-investment partnerships' expense)
to rising interest rates is mitigated by the existing debt level of
approximately 43% of the Company's total market capitalization at March 31,
1999 (47% including the Company's share of co-investment partnerships'
debt), the high percentage of intermediate term fixed rate debt (47% of
total debt), and the use of interest rate swaps to effectively fix the
interest rate on $20 million of floating rate debt through November 2002
and $30 million through February 2003 (13% of total 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.
YEAR 2000 READINESS
The Chairman of the Securities and Exchange Commission has asked all public
companies to provide thorough, meaningful disclosure regarding their Year
2000 readiness. This topic is getting increasing attention as January 1,
2000 gets closer. As is now widely understood, there is real potential for
malfunction by computers and other equipment whose performance is dependent
in part on microprocessors.
The Company and the Service Companies have replaced all primary data
processing systems within the last thirty months and believe the new
systems are Year 2000 compliant. The Company has commenced testing of its
data processing systems; some testing has been complete by March 31, 1999,
and all testing is now anticipated to be complete by September 30, 1999.
Little remedial action is anticipated. Some external consultants are being
engaged by the Service Companies to assist these testing efforts and
remedial action, if any is required. Total costs for using outside
consultants in this effort is estimated at less than $100,000, none of
which has yet been incurred.
The Company has undertaken a review of other aspects of its operations that
may be affected by the Year 2000 problem. In the currently expected worst
case scenarios, either a computer program or software could malfunction, or
mechanical operations, such as elevators, electronic locking or entry
systems and HVAC systems, could malfunction. AMLI believes that each of
these problems can be temporarily corrected manually, and repaired
permanently in a short period of time. The Company has contacted all its
significant vendors, including banks and companies providing outsourcing
services for payroll and benefits administration, to ensure that these
vendors are satisfactorily addressing the problem. The Company continues
to be of the opinion that there will be no direct material effect on its
operating performance or results of operations from the Year 2000 problem.
Although the Company intends to diligently continue preparations for Year
2000, it is not possible to quantify potential indirect effects resulting
from the lack of readiness on the part of others with whom the Company
conducts its business.
<PAGE>
Contingency plans have been prepared for use by all community locations and
for all departments at AMLI's corporate offices. In general, these plans
provide for ensuring that hard copy of all significant reports is made at
the end of 1999; they describe the manual procedures that will have to be
performed during any period of disruption of services or communication; and
they provide for inventorying a larger than usual quantity of supplies
including computer supplies and fax machines, in case replacements are
required as a result of any Year 2000 casualty.
OTHER MATTERS
Statement of Financial Accounting Standards No. 133 "Accounting for
Derivative Instruments and Hedging Activities" becomes effective for all
fiscal quarters for fiscal years beginning after June 15, 1999 and is not
currently expected to have a material impact on the Company's financial
statements.
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.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
<PAGE>
<TABLE>
OCCUPANCY
The following is a listing of approximate physical occupancy levels by quarter for the Company's Wholly-Owned
Communities and Co-Investment Communities:
<CAPTION>
1999 1998
LOCATION/COMMUNITY COMPANY'S NUMBER -------------------------- --------------------------
- ------------------ PERCENTAGE OF AT AT AT AT AT AT AT AT
WHOLLY-OWNED COMMUNITIES OWNERSHIP 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> <C>
DALLAS/FT. WORTH, TEXAS
AMLI:
at AutumnChase . . . . . . 690 91% 92% 93% 90% 97%
at Bent Tree . . . . . . . 300 93% 97% 91% 93% 93%
at Bishop's Gate . . . . . 266 94% 91% 92% 97% 100%
at Chase Oaks. . . . . . . 250 92% 92% 93% 93% 98%
at Gleneagles. . . . . . . 590 94% 92% 93% 98% 97%
on the Green . . . . . . . 424 93% 88% 93% 92% 96%
at Nantucket . . . . . . . 312 94% 91% 93% 97% 98%
of North Dallas. . . . . . 1,032 92% 91% 93% 93% 96%
on Rosemeade . . . . . . . 236 95% 94% 94% 95% 96%
at Valley Ranch. . . . . . 460 91% 90% 92% 97% 98%
------ ----- ----- ----- ----- ----- ----- ----- -----
4,560 93% 92% 93% 94% 97%
------ ----- ----- ----- ----- ----- ----- ----- -----
AUSTIN, TEXAS
AMLI:
at the Arboretum . . . . . 231 97% 94% 97% 96% 97%
in Great Hills . . . . . . 344 93% 89% 99% 97% 98%
at Lantana Ridge . . . . . 354 92% 90% 92% 92% 94%
at Martha's Vineyard . . . 360 96% 93% 96% 97% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,289 94% 91% 95% 96% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
ATLANTA, GEORGIA
AMLI:
at Peachtree City . . . . . 312 94% 90% 96% 99% N/A
at Clairmont. . . . . . . . 288 94% 96% 95% 96% 96%
lease lease
at Park Creek . . . . . . . 200 88% 97% up up N/A
at Sope Creek . . . . . . . 695 93% 94% 97% 95% 94%
at Spring Creek . . . . . . 1,180 91% 92% 94% 93% 94%
at Vinings. . . . . . . . . 360 96% 92% 94% 96% 95%
at West Paces . . . . . . . 337 94% 95% 97% 99% 98%
------ ----- ----- ----- ----- ----- ----- ----- -----
3,372 93% 93% 95% 95% 95%
------ ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
1999 1998
COMPANY'S NUMBER -------------------------- --------------------------
PERCENTAGE OF AT AT AT AT AT AT AT AT
LOCATION/COMMUNITY OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
- ------------------ ---------- ------- ----- ----- ----- ------ ----- ----- ------ ------
EASTERN KANSAS
AMLI:
at Alvamar . . . . . . . . 152 93% 90% 94% 94% 95%
at Centennial Park . . . . 170 89% 89% N/A N/A N/A
at Crown Colony. . . . . . 220 91% 88% 91% 89% 96%
at Lexington Farms . . . . 404 91% 85% N/A N/A N/A
at Regents Center. . . . . 424 97% 95% 93% 95% 90%
at Sherwood. . . . . . . . 300 91% 93% 89% 93% 92%
at Town Center . . . . . . 156 96% 91% 96% 94% 93%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,826 93% 90% 92% 93% 93%
------ ----- ----- ----- ----- ----- ----- ----- -----
INDIANAPOLIS, INDIANA
AMLI:
at Conner Farms. . . . . . 300 96% 89% 93% 86% 90%
at Eagle Creek . . . . . . 240 94% 87% N/A N/A N/A
at Riverbend . . . . . . . 996 87% 88% 92% 93% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,536 90% 88% 92% 92% 95%
------ ----- ----- ----- ----- ----- ----- ----- -----
CHICAGO, ILLINOIS
AMLI:
at Park Sheridan . . . . . 253 93% 93% 98% 97% 100%
at Poplar Creek. . . . . . 196 90% 93% 94% 95% 98%
------ ----- ----- ----- ----- ----- ----- ----- -----
449 92% 93% 96% 96% 99%
------ ----- ----- ----- ----- ----- ----- ----- -----
13,032 92.4% 91.4% 93.6% 94.2% 95.1%
====== ===== ===== ===== ===== ===== ===== ===== =====
CO-INVESTMENT COMMUNITIES:
- --------------------------
ATLANTA, GA
AMLI:
at Barrett Lakes . . . . . 35% 446 94% 88% 93% 93% 96%
at Pleasant Hill . . . . . 40% 502 90% 91% 94% 95% 93%
at River Park. . . . . . . 40% 222 93% 91% 96% 95% 98%
at Towne Creek . . . . . . 1% 150 86% 83% 89% 92% 95%
at Willeo Creek. . . . . . 30% 242 91% 86% 96% 94% 98%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,562 91% 89% 94% 94% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
1999 1998
COMPANY'S NUMBER -------------------------- --------------------------
PERCENTAGE OF AT AT AT AT AT AT AT AT
LOCATION/COMMUNITY OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
- ------------------ ---------- ------- ----- ----- ----- ------ ----- ----- ------ ------
CHICAGO, IL
AMLI:
at Chevy Chase . . . . . . 33% 592 96% 95% 97% 98% 97%
at Danada Farms. . . . . . 10% 600 96% 94% 94% 96% 98%
lease
at Fox Valley. . . . . . . 25% 272 94% 86% 89% 87% up
at Prairie Court . . . . . 1% 125 95% 94% 96% 93% 96%
at Willowbrook . . . . . . 40% 488 95% 96% 95% 98% 98%
at Windbrooke. . . . . . . 15% 236 99% 98% 99% 95% 100%
------- ----- ----- ----- ----- ----- ----- ----- -----
2,313 96% 94% 95% 95% 98%
------- ----- ----- ----- ----- ----- ----- ----- -----
EASTERN KANSAS
AMLI:
at Regents Crest . . . . . 25% 368 93% 96% 96% 94% 92%
------- ----- ----- ----- ----- ----- ----- ----- -----
DALLAS, TX
AMLI: lease lease lease
at Fossil Creek. . . . . . 25% 384 91% 90% up up up
on Timberglen. . . . . . . 40% 260 92% 92% N/A N/A N/A
at Verandah. . . . . . . . 35% 538 95% 94% 93% 96% 97%
lease lease lease lease
on the Parkway . . . . . . 25% 240 95% up up up up
------- ----- ----- ----- ----- ----- ----- ----- -----
1,422 94% 92% 93% 96% 97%
------- ----- ----- ----- ----- ----- ----- ----- -----
AUSTIN, TX
AMLI:
at Park Place. . . . . . . 25% 588 96% 92% 95% 95% 95%
------- ----- ----- ----- ----- ----- ----- ----- -----
HOUSTON, TX
AMLI:
at Champions Centre. . . . 15% 192 92% 93% 95% 97% 98%
at Champions Park. . . . . 15% 246 85% 91% 98% 95% 95%
at Greenwood Forest. . . . 15% 316 93% 92% 98% 96% 97%
------- ----- ----- ----- ----- ----- ----- ----- -----
754 90% 92% 97% 96% 97%
------- ----- ----- ----- ----- ----- ----- ----- -----
Total Co-Investment
Communities . . . . . . . . 7,007 93.6% 92.1% 94.8% 94.8% 96.4%
------- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL . . . . . . . . . . . . 20,039 92.8% 91.6% 94.1% 94.4% 95.9%
======= ===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K have been filed during the quarter ended March 31,
1999. 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: May 12, 1999 By: /s/ CHARLES C. KRAFT
-----------------------------------
Charles C. Kraft
Principal Accounting 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: May 12, 1999 By: /s/ GREGORY T. MUTZ
-----------------------------------
Gregory T. Mutz
Chairman of the Board of Trustees
Date: May 12, 1999 By: /s/ ALLAN J. SWEET
-----------------------------------
Allan J. Sweet
President and Trustee
Date: May 12, 1999 By: /s/ ROBERT J. CHAPMAN
-----------------------------------
Robert J. Chapman
Principal Financial Officer
Date: May 12, 1999 By: /s/ CHARLES C. KRAFT
-----------------------------------
Charles C. Kraft
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 2,868
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 748,840
<DEPRECIATION> 82,945
<TOTAL-ASSETS> 792,434
<CURRENT-LIABILITIES> 0
<BONDS> 380,475
0
40
<COMMON> 169
<OTHER-SE> 341,276
<TOTAL-LIABILITY-AND-EQUITY> 792,434
<SALES> 0
<TOTAL-REVENUES> 30,453
<CGS> 0
<TOTAL-COSTS> 22,025
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,316
<INCOME-PRETAX> 7,280
<INCOME-TAX> 0
<INCOME-CONTINUING> 7,280
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,280
<EPS-PRIMARY> .32
<EPS-DILUTED> .32
</TABLE>
EXHIBIT 99
- ----------
AMLI RESIDENTIAL PROPERTIES TRUST
FINANCIAL AND OPERATING DATA
March 31, 1999
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 March 31, 1999 and 1998
8. Same Community Comparison - Wholly-Owned
and Co-Investments
- three months ended March 31, 1999 and 1998
9. Property Information
10. Property EBITDA
11. Development Activities
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------
1999 1998
-------- --------
<S> <C> <C>
REVENUES
- --------
Property revenues:
Rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,695 $ 24,138
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,569 1,292
-------- --------
Total Property Revenues . . . . . . . . . . . . . . . . . . 28,264 25,430
-------- --------
Property operating expenses . . . . . . . . . . . . . . . . . . . . (10,055) (9,552)
Property management fees. . . . . . . . . . . . . . . . . . . . . . (707) (638)
-------- --------
Property expenses . . . . . . . . . . . . . . . . . . . . . (10,762) (10,190)
Operating expense ratio . . . . . . . . . . . . . . . . . . . . . . 38.1% 40.1%
-------- --------
Net operating income. . . . . . . . . . . . . . . . . . . . 17,502 15,240
-------- --------
OTHER INCOME
- ------------
Share of Service Cos. FFO (1) . . . . . . . . . . . . . . . . . . (274) (12)
Interest from Service Companies (2) . . . . . . . . . . . . . . . 1,013 545
Other interest. . . . . . . . . . . . . . . . . . . . . . . . . . 327 191
Share of partnerships FFO (3) . . . . . . . . . . . . . . . . . . 1,907 1,134
Fee income - acquisitions and dispositions. . . . . . . . . . . . -- --
Fee income - developments . . . . . . . . . . . . . . . . . . . . 320 101
Fee income - asset management . . . . . . . . . . . . . . . . . . 151 151
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 36
-------- --------
Total other income. . . . . . . . . . . . . . . . . . . . . 3,446 2,146
General and administrative. . . . . . . . . . . . . . . . . . . . . (1,046) (854)
-------- --------
EBITDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,902 16,532
-------- --------
Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . (5,316) (4,938)
Amortization of deferred costs. . . . . . . . . . . . . . . . . . . (111) (130)
-------- --------
FUNDS FROM OPERATIONS (FFO) . . . . . . . . . . . . . . . . . . . . $ 14,475 $ 11,464
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
-----------------------
1999 1998
-------- --------
Capital expenditures paid from FFO (4). . . . . . . . . . . . . . . (968) (792)
Other - share of Co-investments Cap exp . . . . . . . . . . . . . . (89) (44)
-------- --------
Funds available for distribution (FAD). . . . . . . . . . . . . . . $ 13,418 $ 10,628
======== ========
FFO per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.59 $ 0.54
FAD per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.55 $ 0.50
Dividend per share. . . . . . . . . . . . . . . . . . . . . . . . . $ 0.45 $ 0.44
Dividend as a % of FFO. . . . . . . . . . . . . . . . . . . . . . . 76.1% 81.9%
Dividend as a % of FAD. . . . . . . . . . . . . . . . . . . . . . . 82.2% 88.3%
======== ========
<FN>
NOTES:
(1) Includes share of income before goodwill amortization of $100 for the three months ended March 31, 1999 and
1998, respectively.
(2) Interest on 13% notes receivable and working capital advances.
(3) Includes share of income and share of depreciation of $1,157 and $810 for the three months ended March 31,
1999 and 1998, respectively.
(4) Rehab costs of approximately $547 in 1999 are not reflected in cap ex paid from FFO.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENT OF OPERATIONS
Unaudited - Dollars in thousands except per share data
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------
1999 1998
-------- --------
<S> <C> <C>
REVENUES
- --------
Property revenues:
Rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,695 $ 24,138
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,569 1,292
Interest and share of income (loss) from Service Cos. . . . . . . . 639 429
Other interest. . . . . . . . . . . . . . . . . . . . . . . . . . . 327 191
Share of income from co-investment partnerships . . . . . . . . . . 750 324
Fees from co-investment partnerships. . . . . . . . . . . . . . . . 473 288
-------- --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . 30,453 26,662
-------- --------
EXPENSES
- --------
Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,643 2,317
Advertising and promotion . . . . . . . . . . . . . . . . . . . . . 619 708
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,022 1,085
Building repairs and maintenance. . . . . . . . . . . . . . . . . . 1,292 1,255
Landscaping and grounds maintenance . . . . . . . . . . . . . . . . 594 442
Real estate taxes . . . . . . . . . . . . . . . . . . . . . . . . . 3,420 3,180
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 221
Other operating expenses. . . . . . . . . . . . . . . . . . . . . . 265 344
Property management fees. . . . . . . . . . . . . . . . . . . . . . 707 638
Interest, net of capitalized. . . . . . . . . . . . . . . . . . . . 5,316 4,938
Amortization of deferred costs. . . . . . . . . . . . . . . . . . . 111 130
Depreciation of real property . . . . . . . . . . . . . . . . . . . 3,529 3,170
Depreciation of personal property . . . . . . . . . . . . . . . . . 1,261 1,121
General and administrative. . . . . . . . . . . . . . . . . . . . . 1,046 854
-------- --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . 22,025 20,403
-------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENT OF OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
-----------------------
1999 1998
-------- --------
Non-recurring item - gain on sale of properties and rate caps . . . -- --
-------- --------
Income before taxes, minority interest and extraordinary item . . . 8,428 6,259
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . 1,148 933
-------- --------
Income before and extraordinary items . . . . . . . . . . . . . . . 7,280 5,326
Extraordinary items net of minority interest. . . . . . . . . . . . -- --
-------- --------
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,280 $ 5,326
======== ========
Net income allocable to preferred shares. . . . . . . . . . . . . . 1,873 604
-------- --------
Net income allocable to common shares . . . . . . . . . . . . . . . $ 5,407 $ 4,722
======== ========
INCOME PER COMMON SHARE:
- -----------------------
Before extraordinary items. . . . . . . . . . . . . . . . . . . . . $ 0.32 $ 0.28
Extraordinary item. . . . . . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 0.00
Income per common share . . . . . . . . . . . . . . . . . . . . . . $ 0.32 $ 0.28
======== ========
FUNDS FROM OPERATIONS
- ---------------------
Income before taxes, minority interest and
extraordinary item. . . . . . . . . . . . . . . . . . . . . . . . $ 8,428 $ 6,259
-------- --------
Depreciation of real property . . . . . . . . . . . . . . . . . . . 3,529 3,170
Depreciation of personal property . . . . . . . . . . . . . . . . . 1,261 1,121
Non-recurring items - gain on sale of properties
and rate caps . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
Share of Co-investments depreciation. . . . . . . . . . . . . . . . 1,157 810
Share of Service Company amortization of goodwill . . . . . . . . . 100 104
-------- --------
Funds from operations (FFO) . . . . . . . . . . . . . . . . . . . . $ 14,475 $ 11,464
FFO per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.59 $ 0.54
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENT OF OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
-----------------------
1999 1998
-------- --------
Capital expenditures paid from FFO. . . . . . . . . . . . . . . . . (968) (792)
Other - Share Co-investments Cap exp. . . . . . . . . . . . . . . . (89) (44)
-------- --------
Funds available for distribution (FAD). . . . . . . . . . . . . . . $ 13,418 $ 10,628
FAD per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.55 $ 0.50
======== ========
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . $ 0.45 $ 0.44
======== ========
Dividends as a % of FFO . . . . . . . . . . . . . . . . . . . . . . 76.1% 81.9%
Dividends as a % of FAD . . . . . . . . . . . . . . . . . . . . . . 82.2% 88.3%
======== ========
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS
Unaudited - Dollars in thousands except per share data
<CAPTION>
MAR. 31, DEC. 31,
1999 1998
-------- --------
<S> <C> <C>
ASSETS
- ------
Rental apartments
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 92,914 $ 91,459
Depreciable property. . . . . . . . . . . . . . . . . . . . . . . 600,778 586,507
-------- --------
693,692 677,966
Less accumulated depreciation . . . . . . . . . . . . . . . . . . (82,945) (78,143)
-------- --------
610,747 599,823
Properties under development. . . . . . . . . . . . . . . . . . . . 55,148 61,798
Investments in partnerships . . . . . . . . . . . . . . . . . . . . 73,731 72,150
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . 2,868 4,546
Security deposits . . . . . . . . . . . . . . . . . . . . . . . . . 1,682 1,684
Deferred costs, net . . . . . . . . . . . . . . . . . . . . . . . . 2,938 2,942
Notes receivable and advances to Service Companies. . . . . . . . . 31,814 31,277
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,506 11,372
-------- --------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . $792,434 $785,592
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $380,475 $367,370
Accrued interest payable. . . . . . . . . . . . . . . . . . . . . . 2,213 2,170
Accrued real estate taxes . . . . . . . . . . . . . . . . . . . . . 6,159 10,141
Construction costs payable. . . . . . . . . . . . . . . . . . . . . 2,410 1,967
Security deposits and prepaid rents . . . . . . . . . . . . . . . . 3,260 3,420
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 2,749 3,096
-------- --------
Total liabilities . . . . . . . . . . . . . . . . . . . . . $397,266 $388,164
-------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS - CONTINUED
Unaudited - Dollars in thousands except per share data
MAR. 31, DEC. 31,
1999 1998
-------- --------
Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . $ 53,683 $ 54,574
-------- --------
Shareholders' equity
Preferred shares, $.01 par value. . . . . . . . . . . . . . . . . 40 42
Shares of beneficial interest, $.01 par value . . . . . . . . . . 169 167
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . 421,108 420,303
Employees and trustees notes. . . . . . . . . . . . . . . . . . . (10,722) (10,668)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . 55,877 48,597
Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . (124,987) (115,587)
-------- --------
Total shareholders' equity. . . . . . . . . . . . . . . . . 341,485 342,854
-------- --------
Total liabilities and shareholders' equity. . . . . . . . . $792,434 $785,592
======== ========
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
Selected Quarterly Financial Information
March 31, 1999
(dollars in thousands except for share data)
<CAPTION>
Quarter Ending
-------------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
1999 1998 1998 1998 1998
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Debt $ 380,475 $ 367,370 $ 336,190 $ 337,108 $ 361,305
Debt including share of co-investment
debt 454,348 439,172 402,972 400,485 422,393
Total Shares and Units Outstanding (2) 24,464,805 24,445,827 24,130,128 23,085,101 22,028,680
Value per Common Share - end of quarter $ 20.625 $ 22.25 $ 21.3125 $ 21.4375 $ 22.9375
Total Equity (Market Value) -
end of quarter $504,587 $543,920 $514,273 $494,887 $505,283
Market Capitalization $885,062 $911,290 $850,463 $831,995 $866,588
Market Capitalization including share
of Co-investment debt $958,935 $983,092 $917,245 $895,372 $927,676
Market Capitalization including
Co-investment at cost $1,431,730 $1,455,887 $1,313,940 $1,279,707 $1,252,510
========== ========== ========== ========== ==========
Total Revenues (2) $ 30,453 $ 31,227 $ 30,155 $ 29,309 $ 26,662
EBITDA (3) $ 19,902 $ 20,167 $ 19,213 $ 18,048 $ 16,532
FFO $ 14,475 $ 14,796 $13,842 $ 13,130 $ 11,464
FAD $ 13,418 $ 13,772 $ 12,546 $ 11,965 $ 10,628
Dividends Paid $ 10,765 $ 10,323 $ 9,719 $ 9,356 $ 9,224
Debt service (net of capitalized interest) $ 5,995 $ 5,924 $ 5,932 $ 5,441 $ 5,571
Interest Expense $ 5,316 $ 5,270 $ 5,255 $ 4,800 $ 4,938
G & A Expense $ 1,046 $ 1,190 $ 837 $ 1,112 $ 854
Total Shares and Units Outstanding
- Wtd. Avg. 24,455,709 24,355,803 23,097,922 22,050,967 21,238,186
========== ========== ========== ========== ==========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
Selected Quarterly Financial Information - CONTINUED
March 31, 1999
(dollars in thousands except for share data)
Quarter Ending
-------------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
1999 1998 1998 1998 1998
-------- -------- -------- -------- --------
Interest Coverage Ratio 3.74 3.83 3.66 3.76 3.35
Debt as % of Total Market
Capitalization 42.99% 40.31% 39.53% 40.52% 41.69%
Debt (incl. Share of Co-investment
debt) as % of Total Market Cap 47.38% 44.67% 43.93% 44.73% 45.53%
EBITDA as % of Total Market
Capitalization 8.99% 8.85% 9.04% 8.68% 7.63%
FFO as % of Total Market Equity 11.47% 10.88% 10.77% 10.61% 9.08%
G&A as % of Total Market
Capitalization 0.47% 0.52% 0.39% 0.53% 0.39%
G&A as % of Total Revenues 3.43% 3.81% 2.78% 3.79% 3.20%
Dividends as % of FFO (4) 76.1% 74.2% 73.6% 74.1% 81.9%
Dividends as % of FAD (4) 82.2% 79.7% 81.2% 81.3% 88.3%
========== ========== ========== ========== ==========
Apartment Units - In Operation
Wholly Owned 13,032 12,792 12,250 12,250 11,938
Co-investments 7,007 6,767 6,123 6,123 5,851
---------- ---------- ---------- ---------- ----------
20,039 19,559 18,373 18,373 17,789
---------- ---------- ---------- ---------- ----------
Apartment Units - Under Development
Wholly Owned 1,246 1,486 2,352 2,100 2,488
Co-investments 3,136 3,376 2,464 2,224 1,456
---------- ---------- ---------- ---------- ----------
4,382 4,862 4,816 4,324 3,944
---------- ---------- ---------- ---------- ----------
Total Units 24,421 24,421 23,189 22,697 21,733
========== ========== ========== ========== ==========
<FN>
(1) At March 31, 1999, includes 3,975,000 preferred shares convertible to common shares.
(2) Excluding non-recurring gain of $3,621 in 1998.
(3) Includes other income, net of G & A expenses.
(4) Based on per share amounts.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PORTFOLIO INDEBTEDNESS SUMMARY
March 31, 1999
(Dollars in thousands)
<CAPTION>
Weighted
Avg.
Percent of Interest Years to
Type of Indebtedness Balance Total Interest Rate Maturity
- -------------------- -------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Conventional Fixed Rate $176,975 46.5% Fixed 7.63% 7.8
Tax-exempt Variable Rate (1) 50,250 13.2% Variable 4.43% 3.6
Credit Facilities (2) 147,500 38.8% Variable 6.30% 2.2
Service Companies 5,750 1.5% Fixed 9.22% 3.3
-------- ------ ----- ---
Total $380,475 100.0% 6.72% 5.0
======== ====== ===== ===
Weighted
Balance including Avg.
share of Co- Percent of Interest Years to
Type of Indebtedness investment debt(3) Total Interest Rate Maturity
- -------------------- ----------------- ----------- ---------- --------- ----------
Conventional Fixed Rate $250,848 55.2% Fixed 7.68% 7.4
Tax-exempt Variable Rate (1) 50,250 11.1% Variable 4.43% 3.6
Credit Facilities (2) 147,500 32.4% Variable 6.30% 2.2
Service Companies 5,750 1.3% Fixed 9.22% 3.3
-------- ------ ----- ---
Total $454,348 100.0% 6.89% 5.2
======== ====== ===== ===
<FN>
(1) Maturity Date shown is expiration date of Credit Enhancement. Bonds mature in 2024.
(2) $50,000 has been swapped to a fixed rate ($20,000 maturing in November 2002 and $30,000 maturing in February
2003). Effective interest rate includes swap costs.
(3) Co-Investment debt represents Amli Residential's pro rata share of debt. Interest rate and maturity reflect
average numbers based on Amli's pro rata share.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES
MARCH 31, 1999
Unaudited - dollars in thousands
<CAPTION>
There- % to
1999 2000 2001 2002 2003 after Total Total
-------- -------- -------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Rate Mortgages $ 2,029 3,034 3,281 3,534 65,785 99,312 176,975 46.5%
Tax Exempt Bonds* 50,250 50,250 13.2%
Wachovia/First Chicago
Line of Credit 147,500 147,500 38.8%
Other 750 5,000 5,750 1.5%
-------- -------- -------- -------- -------- -------- -------- -------
Total Loans $ 2,779 3,034 150,781 53,784 70,785 99,312 380,475 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 0.7% 0.8% 39.6% 14.1% 18.6% 26.2% 100.0% 83.7%
======== ======== ======== ======== ======== ======== ======== =======
SHARE OF CO-INVESTMENT DEBT
Prudential Ins. -
Park Place (25%) 3,040 0 0 0 0 0 3,040 4.1%
Nationwide Life Ins. -
Greenwood Forest (15%) 13 19 20 1,678 0 0 1,730 2.3%
Lincoln National Ins. -
Champions Park (15%) 16 22 24 1,259 0 0 1,321 1.8%
Prudential Ins. -
Champions Centre (15%) 8 11 12 955 0 0 986 1.3%
Allstate Life Ins. -
Windbrooke (15%) 14 18 20 1,657 0 0 1,709 2.3%
CIGNA -
Chevy Chase (33%) 134 189 202 216 8,770 0 9,511 12.9%
Northwestern Mutual Life Ins. -
Willowbrook (40%) 114 162 175 189 8,908 0 9,548 12.9%
Phoenix Mutual -
Willeo Creek (30%) 40 57 61 65 2,687 0 2,910 4.0%
Northwestern Mutual Life Ins. -
Pleasant Hill (40%) 59 88 96 106 116 5,585 6,050 8.2%
Northwestern Mutual Life Ins. -
Barrett Lakes (35%) 52 77 84 91 99 5,416 5,819 7.9%
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES - CONTINUED
There- % to
1999 2000 2001 2002 2003 after Total Total
-------- -------- -------- -------- -------- -------- -------- -------
Erie Insurance -
River Park (40%) 20 50 54 59 63 3,325 3,571 4.9%
Prudential Ins. -
Amli at Danada (10%) 17 25 27 29 31 2,321 2,450 3.3%
Phoenix Home Life -
Amli at Verandah (35%) 55 88 94 102 110 5,480 5,929 8.0%
Northwestern Mutual Life
Ins. - Northwinds (35%) 0 15 95 103 112 8,021 8,346 11.3%
Northwestern Mutual Life
Ins. - Regents Crest (25%) 48 70 76 82 3,710 0 3,986 5.4%
Northwestern Mutual Life
Ins. - Parkway (25%) 32 45 49 52 56 2,458 2,692 3.6%
Jackson National Life
Ins. - Timberglen (40%) 29 42 45 49 52 2,463 2,680 3.6%
Amli Residential - Deerfield
(25%) 1,472 0 0 0 0 0 1,472 2.0%
Central Bank, Trustee -
Prairie Court (1%) 73 0 0 0 0 0 73 0.1%
Erie Insurance -
Towne Creek (1%) 50 0 0 0 0 0 50 0.1%
-------- -------- -------- -------- -------- -------- -------- -------
Total Share of
Co-Investment Loans $ 5,286 978 1,134 6,692 24,714 35,069 73,873 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 7.2% 1.3% 1.5% 9.1% 33.4% 47.5% 100.0% 16.3%
======== ======== ======== ======== ======== ======== ======== =======
Total Including Share
of Co-Investment Debt $ 8,065 4,012 151,915 60,476 95,499 134,381 454,348 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 1.8% 0.9% 33.4% 13.3% 21.0% 29.6% 100.0% 100.0%
======== ======== ======== ======== ======== ======== ======== =======
<FN>
* The Spring Creek Bonds mature in October 2024, but the credit enhancement expires on October 15, 2002.
* The Poplar Creek Bonds mature in February 2024, but credit enhancement expires December 18, 2002.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
THREE MONTHS ENDED MARCH 31, 1999 VERSUS THREE MONTHS ENDED MARCH 31, 1998
(Excludes all properties acquired or stabilized after 1/1/98, Reflections and Timberglen)
<CAPTION>
1/1/99-3/31/99 1/1/98-3/31/98
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 4,320 92.3% -1.8% 94.0%
Atlanta 2,572 93.0% -0.9% 93.8%
Austin 1,289 92.8% 0.1% 92.7%
Indianapolis 1,296 88.8% -2.1% 90.8%
Kansas 1,252 94.1% 2.3% 92.0%
Chicago 449 93.9% -1.9% 95.8%
------ ----- ----- -----
Weighted Average 92.4% -1.0% 93.3%
===== ===== =====
Total 11,178
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $713 1.9% $700
Atlanta $765 4.9% $729
Austin $710 3.3% $688
Indianapolis $647 5.1% $616
Kansas $710 2.9% $690
Chicago $956 -0.2% $958
---- ---- ----
Weighted Average $726 3.1% $705
==== ==== ====
TOTAL PROPERTY REVENUES Per Month Per Month
- ----------------------- ---------- ----------
Dallas $ 8,961,278 $ 692 $0.80 0.2% $ 8,944,429 $690 $0.80
Atlanta $ 5,733,023 $ 743 $0.80 4.1% $ 5,504,670 $713 $0.76
Austin $ 2,725,215 $ 705 $0.91 5.5% $ 2,582,640 $668 $0.86
Indianapolis $ 2,358,287 $ 607 $0.69 2.5% $ 2,301,622 $592 $0.67
Kansas $ 2,665,546 $ 710 $0.78 6.4% $ 2,506,063 $667 $0.74
Chicago $ 1,331,338 $ 988 $1.12 -0.4% $ 1,336,465 $992 $1.13
------------ ------ ----- ----- ----------- ---- -----
Total $ 23,774,688 $ 709 $0.81 2.6% $23,175,889 $691 $0.79
============ ===== ===== ===== =========== ==== =====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/98, Reflections and Timberglen)
1/1/99-3/31/99 1/1/98-3/31/98
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 3,716,597 $3,451 $3.99 1.5% $3,661,551 $3,390 $3.92
Atlanta $ 1,920,027 $2,986 $3.20 -1.7% $1,952,585 $3,037 $3.25
Austin $ 1,064,262 $3,303 $4.26 -6.8% $1,142,314 $3,545 $4.57
Indianapolis $ 896,628 $2,767 $3.13 12.9% $ 794,489 $2,452 $2.77
Kansas $ 885,504 $2,829 $3.13 2.3% $ 865,870 $2,766 $3.06
Chicago $ 681,454 $6,071 $6.90 -0.7% $ 686,260 $6,114 $6.95
------------ ------ ----- ----- ---------- ------ -----
Total $ 9,164,471 $3,283 $3.74 0.7% $9,103,069 $3,257 $3.71
============ ====== ===== ===== ========== ====== =====
Operating Efficiency 38.5% 39.3%
============ ==========
</TABLE>
<TABLE>
<CAPTION>
PER MONTH PER MONTH
--------- ----------
NOI 1999% 1998%
- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dallas 58.5% 59.1% $ 5,244,682 $404 $0.47 -0.7% $ 5,282,878 $408 $0.47
Atlanta 66.5% 64.5% $ 3,812,996 $494 $0.53 7.3% $ 3,552,085 $460 $0.49
Austin 60.9% 55.8% $ 1,660,953 $430 $0.55 15.3% $ 1,440,326 $372 $0.48
Indianapolis 62.0% 65.5% $ 1,461,660 $376 $0.43 -3.0% $ 1,507,133 $388 $0.44
Kansas 66.8% 65.4% $ 1,780,043 $474 $0.52 8.5% $ 1,640,192 $437 $0.48
Chicago 48.8% 48.7% $ 649,884 $482 $0.55 0.0% $ 650,205 $483 $0.55
----- ----- ------------ ---- ----- ----- ----------- ---- -----
Total 61.5% 60.7% $ 14,610,217 $435 $0.50 3.8% $14,072,820 $420 $0.48
===== ===== ============ ==== ===== ===== =========== ==== =====
Operating Margin 61.5% 60.7%
============ ==========
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 298,977 $277 $0.32 -21.1% $ 379,086 $351 $0.41
Atlanta $ 112,381 $175 $0.19 -34.5% $ 171,626 $267 $0.29
Austin $ 298,609 $927 $1.19 408.9% $ 58,677 $182 $0.23
Indianapolis $ 61,374 $189 $0.21 92.4% $ 31,898 $ 98 $0.11
Kansas $ 76,833 $245 $0.27 8.8% $ 70,623 $226 $0.25
Chicago $ 84,871 $756 $0.86 173.5% $ 31,030 $276 $0.31
------------ ---- ----- ------ ---------- ---- -----
Total $ 933,044 $334 $0.38 25.6% $ 742,940 $266 $0.30
============ ==== ===== ====== ========== ==== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/98, Reflections and Timberglen)
<CAPTION>
1/1/99-3/31/99 1/1/98-3/31/98
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 396,169 $ 371 $0.43 -2.6% $ 406,949 $ 377 $0.44
Atlanta $ 256,967 $ 400 $0.43 -5.0% $ 270,509 $ 421 $0.45
Austin $ 115,676 $ 359 $0.46 -10.9% $ 129,781 $ 403 $0.52
Indianapolis $ 162,144 $ 500 $0.57 30.2% $ 124,494 $ 384 $0.43
Kansas $ 106,275 $ 340 $0.38 -0.9% $ 107,249 $ 343 $0.38
Chicago $ 104,172 $ 928 $1.06 -3.0% $ 107,375 $ 957 $1.09
------------ ------ ----- ------ ---------- ------ -----
Total $ 1,141,402 $ 410 $0.47 -0.4% $1,146,358 $ 410 $0.47
============ ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,398,716 $1,295 $1.50 4.2% $1,342,121 $1,243 $1.44
Atlanta $ 455,838 $ 709 $0.76 1.8% $ 447,867 $ 697 $0.75
Austin $ 341,435 $1,060 $1.37 -13.2% $ 393,465 $1,221 $1.57
Indianapolis $ 219,011 $ 676 $0.76 18.9% $ 184,177 $ 568 $0.64
Kansas $ 250,122 $ 799 $0.88 -5.1% $ 263,448 $ 842 $0.93
Chicago $ 279,501 $2,490 $2.83 1.5% $ 275,364 $2,453 $2.79
------------ ------ ----- ----- ---------- ------ -----
Total $ 2,944,623 $1,054 $1.20 1.3% $2,906,442 $1,040 $1.19
============ ====== ===== ==== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED MARCH 31, 1999 VERSUS THREE MONTHS ENDED MARCH 31, 1998
(Excludes all properties acquired, sold or stabilized after 1/1/98)
<CAPTION>
1/1/99-3/31/99 1/1/98-3/31/98
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 5,118 92.5% -1.8% 94.1%
Atlanta 4,134 91.6% -1.4% 92.9%
Austin 1,877 92.7% -1.5% 94.1%
Houston 754 91.3% -4.0% 95.1%
Indianapolis 1,296 88.8% -2.1% 90.8%
Kansas 1,620 94.4% 2.1% 92.5%
Chicago 2,490 95.6% 0.0% 95.6%
------ ----- ----- -----
Weighted Average 92.6% -1.2% 93.7%
Total 17,289 ===== ===== =====
======
WEIGHTED AVG. RENTAL RATE
- -------------------------
Dallas $704 1.8% $692
Atlanta $786 4.2% $754
Austin $676 3.5% $653
Houston $765 4.0% $736
Indianapolis $647 5.1% $616
Kansas $720 2.8% $701
Chicago $972 4.1% $934
---- ---- ----
Weighted Average $759 3.4% $735
==== ==== ====
TOTAL PROPERTY REVENUES PER MONTH PER MONTH
- ----------------------- --------- ---------
Dallas 5,118 $10,501,102 $684 $0.81 0.1% $10,491,788 $683 $0.81
Atlanta 4,134 $ 9,390,296 $757 $0.78 3.5% $ 9,073,263 $732 $0.75
Austin 1,877 $ 3,777,482 $671 $0.90 4.7% $ 3,609,259 $641 $0.86
Houston 754 $ 1,664,171 $736 $0.80 0.4% $ 1,657,123 $733 $0.79
Indianapolis 1,296 $ 2,358,287 $607 $0.69 2.5% $ 2,301,622 $592 $0.67
Kansas 1,620 $ 3,513,551 $723 $0.79 6.8% $ 3,289,505 $677 $0.74
Chicago 2,490 $ 7,424,270 $994 $1.16 5.6% $ 7,027,972 $941 $1.10
------ ----------- ---- ----- ---- ---------- ---- -----
Total $38,629,159 $745 $0.85 3.1% $37,450,531 $722 $0.82
17,289 =========== ==== ===== ==== =========== ==== =====
======
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED MARCH 31, 1999 VERSUS THREE MONTHS ENDED MARCH 31, 1998
(Excludes all properties acquired, sold or stabilized after 1/1/98)
1/1/99-3/31/99 1/1/98-3/31/98
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ -----------
Dallas $ 4,453,696 $3,481 $4.11 1.2% $ 4,402,153 $3,441 $4.07
Atlanta $ 3,259,896 $3,154 $3.25 -3.4% $ 3,373,023 $3,264 $3.37
Austin $ 1,530,637 $3,262 $4.38 -4.8% $ 1,608,126 $3,427 $4.60
Houston $ 744,628 $3,950 $4.27 5.3% $ 707,026 $3,751 $4.06
Indianapolis $ 896,628 $2,767 $3.13 12.9% $ 794,489 $2,452 $2.77
Kansas $ 1,174,163 $2,899 $3.17 4.0% $ 1,129,007 $2,788 $3.05
Chicago $ 2,755,101 $4,426 $5.16 -1.4% $ 2,794,467 $4,489 $5.24
------------ ------ ----- ----- ----------- ------ -----
Total $ 14,814,748 $3,428 $3.90 0.0% $14,808,290 $3,426 $3.90
============ ====== ===== ===== =========== ====== =====
Operating Efficiency 38.4% 39.5%
===== =====
</TABLE>
<TABLE>
<CAPTION>
PER MONTH PER MONTH
1999 1998 --------- ----------
NOI % %
- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dallas 57.6% 58.0% $ 6,047,406 $394 $0.47 -0.7% $ 6,089,636 $397 $0.47
Atlanta 65.3% 62.8% $ 6,130,400 $494 $0.51 7.5% $ 5,700,239 $460 $0.47
Austin 59.5% 55.4% $ 2,246,845 $399 $0.54 12.3% $ 2,001,133 $355 $0.48
Houston 55.3% 57.3% $ 919,543 $407 $0.44 -3.2% $ 950,097 $420 $0.45
Indianapolis 62.0% 65.5% $ 1,461,660 $376 $0.43 -3.0% $ 1,507,133 $388 $0.44
Kansas 66.6% 65.7% $ 2,339,388 $481 $0.53 8.3% $ 2,160,498 $445 $0.49
Chicago 62.9% 60.2% $ 4,669,169 $625 $0.73 10.3% $ 4,233,505 $567 $0.66
----- ----- ------------ ---- ----- ----- ----------- ---- -----
Total 61.6% 60.5% $ 23,814,410 $459 $0.52 5.2% $22,642,241 $437 $0.50
===== ===== ============ ==== ===== ===== =========== ==== =====
Operating Margin 61.6% 60.5%
===== =====
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED MARCH 31, 1999 VERSUS THREE MONTHS ENDED MARCH 31, 1998
(Excludes all properties acquired, sold or stabilized after 1/1/98)
1/1/99-3/31/99 1/1/98-3/31/98
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------- ------------
Dallas $ 357,410 $279 $0.33 -17.7% $ 434,239 $339 $0.40
Atlanta $ 149,308 $144 $0.15 -23.9% $ 196,231 $190 $0.20
Austin $ 340,676 $726 $0.97 356.5% $ 74,634 $159 $0.21
Houston $ 40,237 $213 $0.23 20.0% $ 33,532 $178 $0.19
Indianapolis $ 61,374 $189 $0.21 92.4% $ 31,898 $ 98 $0.11
Kansas $ 83,102 $205 $0.22 10.2% $ 75,398 $186 $0.20
Chicago $ 248,319 $399 $0.47 128.4% $ 108,701 $175 $0.20
------------ ---- ----- ------ ---------- ---- -----
Total $ 1,280,426 $296 $0.34 34.1% $ 954,634 $221 $0.25
============ ==== ===== ====== ========== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 494,799 $387 $0.46 -2.4% $ 507,006 $ 396 $0.47
Atlanta $ 401,335 $388 $0.40 -7.5% $ 433,711 $ 420 $0.43
Austin $ 177,856 $379 $0.51 -10.4% $ 198,459 $ 423 $0.57
Houston $ 37,942 $201 $0.22 -13.6% $ 43,916 $ 233 $0.25
Indianapolis $ 162,144 $500 $0.57 30.2% $ 124,494 $ 384 $0.43
Kansas $ 127,996 $316 $0.35 1.1% $ 126,621 $ 313 $0.34
Chicago $ 368,946 $593 $0.69 -6.0% $ 392,633 $ 631 $0.74
------------ ---- ----- ----- ---------- ------ -----
Total $ 1,771,017 $410 $0.47 -3.1% $1,826,840 $ 423 $0.48
============ ==== ===== ===== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,641,127 $1,283 $1.52 4.4% $1,571,771 $1,228 $1.45
Atlanta $ 818,985 $ 792 $0.82 3.0% $ 795,114 $ 769 $0.79
Austin $ 489,350 $1,043 $1.40 -9.6% $ 541,026 $1,153 $1.55
Houston $ 341,485 $1,812 $1.96 25.3% $ 272,580 $1,446 $1.56
Indianapolis $ 219,011 $ 676 $0.76 18.9% $ 184,177 $ 568 $0.64
Kansas $ 335,880 $ 829 $0.91 2.2% $ 328,761 $ 812 $0.89
Chicago $ 1,051,500 $1,689 $1.97 5.9% $ 992,676 $1,595 $1.86
------------ ------ ----- ----- ---------- ------ -----
Total $ 4,897,338 $1,133 $1.29 4.5% $4,686,105 $1,084 $1.23
============ ====== ===== ==== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION
As of March 31, 1999
<CAPTION>
Qtr ended
Mar. 31, 1999
Approx- Average Qtr ended
imate Rental Rates Mar. 31,
Number Rentable Average ------------- 1999
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>
WHOLLY OWNED
PROPERTIES
- ------------
DALLAS/FT.
WORTH, TX
- ----------
Amli:
at Autumn Chase Carrollton, TX 1991 87/96/99 690 596,448 864 732 $0.85 90.5%
at Bent Tree Dallas, TX 1997 1996 300 282,303 941 834 0.89 96.7%
at Bishop's Gate West Plano, TX 1997 1997 266 292,094 1,098 1,024 0.93 91.4%
at Chase Oaks Plano, TX 1994 1986 250 193,736 775 683 0.88 93.2%
at Gleneagles Dallas, TX 1988 87/97 590 521,302 884 717 0.81 91.8%
on the Green Ft. Worth, TX 1994 90/93 424 358,560 846 688 0.81 91.4%
at Nantucket Dallas, TX 1988 1986 312 222,208 712 560 0.79 94.8%
of North Dallas Dallas, TX 89/90 85/86 1,032 905,590 878 668 0.76 91.6%
on Rosemeade Dallas, TX 1990 1987 236 205,334 870 677 0.78 92.0%
at Valley Ranch Irving TX 1990 1985 460 389,940 848 713 0.84 91.7%
----- --------- --- ---- ----- ------
Subtotal-Dallas/
Ft. Worth, TX 4,560 3,967,515 870 716 $0.82 92.1%
----- --------- --- ---- ----- ------
ATLANTA, GA
- -----------
Amli:
at Sope Creek Marietta, GA 82/83/95 695 632,425 910 705 $0.77 94.2%
at Spring Creek Dunwoody, GA 85/86/87/89 1,180 1,080,568 916 745 0.81 91.9%
at Vinings Atlanta, GA 92/97 1985 360 374,768 1,041 810 0.78 92.6%
at West Paces Atlanta, GA 1993 1992 337 314,470 933 911 0.98 94.6%
at Peachtree City Fayette County, GA 1998 312 305,756 980 884 0.90 94.3%
at Park Creek Gainesville, GA 1998 200 195,146 976 721 0.74 91.5%
at Clairmont Atlanta, GA 1998 1988 288 229,938 798 780 0.98 94.3%
------ --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 3,372 3,133,071 929 775 $0.83 93.1%
------ --------- ----- ---- ----- ------
<PAGE>
Qtr ended
Mar. 31, 1999
Approx- Average Qtr ended
imate Rental Rates Mar. 31,
Number Rentable Average ------------- 1999
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 231 178,116 771 704 $0.91 94.7%
in Great Hills Austin, TX 1991 1985 344 257,984 750 706 0.94 90.3%
at Lantana Ridge Austin, TX 1997 1997 354 311,857 881 815 0.93 92.5%
at Martha's
Vineyard Austin, TX 1992 1986 360 260,380 723 615 0.85 94.2%
----- --------- --- ---- ----- -----
Subtotal-
Austin, TX 1,289 1,008,337 782 710 $0.91 92.8%
----- --------- --- ---- ----- -----
EASTERN KANSAS
- --------------
Amli:
at Alvamar Lawrence, KS 1994 1989 152 125,800 828 679 $0.82 93.4%
at Centennial Overland Park, KS 1998 1998 170 204,858 1,205 953 0.79 89.2%
at Crown Colony Topeka, KS 1994 86/97 220 172,284 783 607 0.77 92.4%
at Lexington Farms Overland Park, KS 1998 1998 404 392,693 972 784 0.81 88.1%
at Regents Center Overland Park, KS 1994 91/95/97 424 398,674 940 745 0.79 95.4%
at Sherwood Topeka, KS 1994 1993 300 260,340 868 628 0.72 94.2%
at Town Center Overland Park, KS 1997 1997 156 176,914 1,134 949 0.84 93.4%
----- --------- ----- ----- ----- -----
Subtotal
-Eastern KS 1,826 1,731,563 948 749 $0.79 92.3%
----- --------- ----- ----- ----- -----
INDIANAPOLIS, IN
- ----------------
Amli:
at Riverbend Indianapolis, IN 92/93 83/85 996 820,712 824 601 $0.73 88.3%
at Conner Farms Indianapolis, IN 1997 1993 300 327,396 1,091 797 0.73 90.7%
at Eagle Creek Indianapolis, IN 1998 1998 240 233,432 973 731 0.75 89.7%
----- --------- ----- ---- ----- -----
Subtotal
-Indianapolis,
IN 1,536 1,381,540 899 660 $0.73 89.0%
----- --------- ----- ---- ----- -----
<PAGE>
Qtr ended
Mar. 31, 1999
Approx- Average Qtr ended
imate Rental Rates Mar. 31,
Number Rentable Average ------------- 1999
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
CHICAGO, IL
- ------------
Amli:
at Park Sheridan Chicago, IL 1989 1986 253 216,315 855 966 $1.13 92.8%
at Poplar Creek Schaumburg, IL 1997 1985 196 177,630 906 942 1.04 95.4%
----- ---------- ----- ----- ----- -----
Subtotal
-Chicago, IL 449 393,945 877 956 $1.09 93.9%
------ ---------- ----- ----- ----- -----
TOTAL
WHOLLY OWNED
PROPERTIES 13,032 11,615,971 891 737 $0.83 92.1%
====== ========== ==== ==== ===== =====
<PAGE>
Qtr ended
Mar. 31, 1999
Approx- Average Qtr ended
imate Rental Rates Mar. 31,
Number Rentable Average ------------- 1999
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 Gwinnett County, GA 1996 502 501,816 1,000 804 $0.80 90.0%
at Barrett Lakes Cobb County, GA 1997 446 462,368 1,037 862 0.83 88.6%
at River Park Norcross, GA 1997 222 226,632 1,021 888 0.87 93.1%
at Towne Creek Gainesville, GA 1989 150 121,722 811 620 0.76 87.3%
at Willeo Creek Rosewell, GA 1995 1989 242 297,302 1,229 844 0.69 88.7%
----- --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 1,562 1,609,840 1,031 821 $0.80 89.6%
----- --------- ----- ---- ----- ------
CHICAGO, IL
- -----------
Amli:
at Prairie
Court Oak Park, IL 1987 125 105,578 845 1,110 $1.31 96.3%
at Windbrooke Buffalo Grove, IL 1995 1987 236 213,160 903 1,002 1.11 98.2%
at Chevy Chase Buffalo Grove, IL 1996 1988 592 480,820 812 987 1.22 96.8%
at Danada Wheaton, IL 1997 89/91 600 521,499 869 936 1.08 93.9%
at Fox Valley Aurora, IL 1998 272 269,237 990 957 0.97 89.0%
at Willowbrook Willowbrook, IL 1996 1987 488 418,404 857 964 1.12 96.2%
----- --------- --- ---- ----- -----
Subtotal-
Chicago, IL 2,313 2,008,698 868 974 $1.12 95.1%
----- --------- --- ---- ----- -----
EASTERN KANSAS
- --------------
AMLI:
at Regents Crest Overland Park, KS 1997 1997 368 346,632 942 756 $0.80 95.4%
----- --------- --- ---- ----- -----
<PAGE>
Qtr ended
Mar. 31, 1999
Approx- Average Qtr ended
imate Rental Rates Mar. 31,
Number Rentable Average ------------- 1999
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
DALLAS/FT. WORTH
- ----------------
AMLI:
at Fossil Creek Ft. Worth, TX 1998 384 384,358 1,001 826 $0.83 89.2%
on the Parkway Dallas, TX 1999 240 225,248 939 864 0.92 92.2%
on Timberglen Dallas, TX 1990 1985 260 201,198 774 621 0.80 92.1%
at Varandah Arlington, TX 1997 86/91 538 394,444 733 672 0.92 93.7%
----- --------- --- ---- ----- -----
Subtotal -
Dallas/
Ft. Worth, TX 1,422 1,205,248 848 737 $0.87 92.0%
----- --------- --- ---- ----- -----
AUSTIN, TX
- ----------
AMLI:
at Park Place Austin, TX 1994 1985 588 397,968 677 602 $0.89 92.6%
----- --------- --- ---- ----- -----
HOUSTON, TX
- -----------
Amli:
at Champions
Centre Houston, TX 1994 1994 192 164,480 857 757 $0.88 92.0%
at Champions Park Houston, TX 1994 1991 246 221,986 902 744 0.82 90.5%
at Greenwood
Forest Houston, TX 1995 1995 316 310,844 984 792 0.81 91.6%
----- --------- --- ---- ----- -----
Subtotal-
Houston, TX 754 697,310 925 768 $0.83 91.3%
---- ---------- ---- ---- ----- -----
TOTAL CO-INVESTMENT
PROPERTIES 7,007 6,265,696 894 827 $0.92 92.6%
====== ========== === ==== ===== =====
TOTAL WHOLLY OWNED
AND CO-INVESTMENT
PROPERTIES 20,039 17,881,667 892 768 $0.86 92.3%
====== ========== === ==== ===== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA
<CAPTION>
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
---------------------------- -------------------------- --------------------------
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31,
---------------------------- -------------------------- --------------------------
% % %
1999 1998 Change 1999 1998 Change 1999 1998 Change
------- ------- ------ ------- ------- ------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PROPERTY REVENUES
- -----------------
Rental Income
- -------------
Same Store
Communities (1) . . . $22,485 22,016 2.1% 13,571 13,165 3.1% 36,500 35,637 2.4%
New Communities (2). . 1,643 594 176.3% 1,564 857 82.5% 3,206 1,451 120.9%
Development and/
or Lease-up
Communities (3) . . . 173 73 138.0% 3,156 206 1435.2% 3,329 278 1096.7%
Acquisition
Communities (4) . . . 2,393 549 335.7% -- -- -- 2,393 549 335.7%
Communities Sold/
Contributed to
Ventures (5). . . . . 1 906 -- 445 -- -- 446 906 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total . . . . . . . $26,695 24,138 10.6% 18,735 14,228 31.7% 45,875 38,822 18.2%
======= ======= ======= ======= ======= ======= ======= ======= =======
Other Revenues
- --------------
Same Store
Communities . . . . . $ 1,290 1,160 11.2% 821 633 29.6% 2,129 1,814 17.4%
New Communities. . . . 126 59 113.8% 124 88 41.9% 250 146 70.8%
Development and/
or Lease-up
Communities . . . . . 16 1 -- 223 29 663.1% 239 30 699.1%
Acquisition
Communities . . . . . 137 10 1210.6% -- -- -- 137 10 1210.6%
Communities Sold/
Contributed to
Ventures. . . . . . . -- 62 -- 18 -- -- 18 62 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total . . . . . . . $ 1,569 1,292 21.4% 1,187 750 58.3% 2,774 2,062 34.5%
======= ======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
---------------------------- ---------------------------- ----------------------------
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31,
---------------------------- ---------------------------- ----------------------------
% % %
1999 1998 Change 1999 1998 Change 1999 1998 Change
------- ------- ------ ------- ------- ------ ------- ------- -------
Total Property
Revenues
- ---------------
Same Store
Communities . . . . . $23,775 23,176 2.6% 14,391 13,798 4.3% 38,629 37,451 3.1%
New Communities. . . . 1,768 653 170.7% 1,688 945 78.7% 3,456 1,598 116.3%
Development and/
or Lease-up
Communities . . . . . 188 73 157.2% 3,379 235 1338.9% 3,568 308 1058.1%
Acquisition
Communities . . . . . 2,531 560 352.0% -- -- -- 2,531 560 352.0%
Communities Sold/
Contributed to
Ventures. . . . . . . 1 968 -- 463 -- -- 464 968 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total . . . . . . . $28,263 25,430 11.1% 19,922 14,978 33.0% 48,648 40,884 19.0%
======= ======= ======= ======= ======= ======= ======= ======= =======
Total Operating
Expenses
- ---------------
Same Store
Communities . . . . . $ 9,164 9,103 0.7% 5,425 5,498 -1.3% 14,815 14,808 0.0%
New Communities. . . . 543 323 68.4% 664 621 6.9% 1,207 944 27.9%
Development and/
or Lease-up
Communities . . . . . 146 50 189.6% 1,425 172 727.9% 1,571 223 606.0%
Acquisition
Communities . . . . . 898 170 429.3% -- -- -- 898 170 429.3%
Communities Sold/
Contributed to
Ventures. . . . . . . 10 544 -- 225 -- -- 235 544 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total . . . . . . . $10,761 10,190 5.6% 7,740 6,291 23.0% 18,726 16,688 12.2%
======= ======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
---------------------------- ---------------------------- ----------------------------
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31,
---------------------------- ---------------------------- ----------------------------
% % %
1999 1998 Change 1999 1998 Change 1999 1998 Change
------- ------- ------ ------- ------- ------ ------- ------- -------
Property EBITDA
- ---------------
Same Store
Communities . . . . . $14,611 14,073 3.8% 8,966 8,300 8.0% 23,815 22,642 5.2%
New Communities. . . . 1,225 330 271.7% 1,024 323 216.7% 2,249 653 244.5%
Development and/
or Lease-up
Communities . . . . . 42 23 -- 1,954 63 3016.1% 1,996 85 2235.3%
Acquisition
Communities . . . . . 1,633 390 318.5% -- -- -- 1,633 390 318.5%
Communities Sold/
Contributed to
Ventures. . . . . . . (9) 424 -- 238 -- -- 229 424 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total . . . . . . . $17,502 15,240 14.8% 12,182 8,686 40.2% 29,922 24,195 23.7%
======= ======= ======= ======= ======= ======= ======= ======= =======
Company's share
of Co-investment
EBITDA (incl.
share of cash flow
in excess of
ownership %) . . . . . 3,388 2,363 43.4% 3,388 2,363 43.4%
======= ======= ======= ======= ======= =======
Percent of
Co-investment
EBITDA . . . . . . . . 28% 27% 11% 10%
======= ======= ======= =======
<FN>
(1) Stabilized Communities at 1/1/98.
(2) Development Communities stabilized after 1/1/98 but before 1/1/99.
(3) Development Communities not yet stabilized.
(4) Stabilized Communities acquired after 1/1/98.
(5) Communities sold or contributed to co-investment ventures.
</TABLE>
