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, 2000
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 17,032,346 as of March 31, 2000.
<PAGE>
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of
March 31, 2000 and December 31, 1999 . . . . . . . . 3
Consolidated Statements of Operations
for the three months ended
March 31, 2000 and 1999. . . . . . . . . . . . . . . 5
Consolidated Statements of
Shareholders' Equity
for the three months ended
March 31, 2000 . . . . . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows
for the three months ended
March 31, 2000 and 1999. . . . . . . . . . . . . . . 7
Notes to Consolidated Financial Statements . . . . . . 9
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations. . . . . . . . . . . . . . . . 30
Item 3. Quantitative and Qualitative Disclosures
About Market Risk. . . . . . . . . . . . . . . . . . 38
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 43
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2000 AND DECEMBER 31, 1999
(UNAUDITED)
(Dollars in thousands, except share data)
MARCH 31, DECEMBER 31,
2000 1999
---------- ------------
ASSETS:
Rental apartments:
Land . . . . . . . . . . . . . . . . . $ 93,442 87,903
Depreciable property . . . . . . . . . 606,378 566,509
---------- ----------
699,820 654,412
Less accumulated depreciation. . . . . (87,593) (82,626)
---------- ----------
612,227 571,786
Rental properties held for sale,
net of accumulated depreciation. . . . -- 19,784
Properties under development . . . . . . 60,159 47,314
Investments in partnerships. . . . . . . 118,291 107,518
Cash and cash equivalents. . . . . . . . 2,361 2,318
Deferred expenses, net . . . . . . . . . 3,223 3,377
Security deposits. . . . . . . . . . . . 1,576 1,541
Notes receivable from and advances
to Service Companies . . . . . . . . . 39,121 35,717
Other assets . . . . . . . . . . . . . . 10,890 15,263
---------- ----------
Total assets $ 847,848 804,618
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
LIABILITIES:
Debt (note 5). . . . . . . . . . . . . . $ 398,867 369,541
Accrued interest payable . . . . . . . . 1,759 1,743
Accrued real estate taxes payable. . . . 5,717 9,999
Construction costs payable . . . . . . . 1,075 2,068
Security deposits and prepaid rents. . . 2,936 2,807
Other liabilities. . . . . . . . . . . . 2,816 3,606
---------- ----------
Total liabilities. . . . . . . 413,170 389,764
---------- ----------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED BALANCE SHEETS - CONTINUED
MARCH 31, DECEMBER 31,
2000 1999
---------- ------------
Commitments and contingencies (note 6)
Minority interest. . . . . . . . . . . . 60,707 57,813
---------- ----------
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 outstanding
(aggregate liquidation preference
of $17,168 and $17,162,
respectively) . . . . . . . . . . . . . 9 9
Series B Cumulative Convertible
Preferred shares of beneficial
interest, $0.01 par value,
3,125,000 authorized, issued
and outstanding (aggregate
liquidation preference
of $76,438) . . . . . . . . . . . . . . 31 31
Shares of beneficial interest,
$0.01 par value, 145,375,000
authorized, 17,032,346 and
16,996,138 common shares issued
and outstanding, respectively . . . . . 170 170
Additional paid-in capital . . . . . . . 422,614 421,989
Employees' and Trustees' notes . . . . . (11,960) (12,000)
Dividends paid in excess
of earnings . . . . . . . . . . . . . . (36,893) (53,158)
---------- ----------
Total shareholders'
equity . . . . . . . . . . . 373,971 357,041
---------- ----------
Total liabilities and
shareholders' equity . . . . $ 847,848 804,618
========== ==========
See accompanying notes to consolidated financial statements.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
(Dollars in thousands, except share data)
2000 1999
-------- --------
Revenues:
Property:
Rental . . . . . . . . . . . . . . . . . . . $ 26,274 26,695
Other. . . . . . . . . . . . . . . . . . . . 1,537 1,569
Interest and share of loss from
Service Companies. . . . . . . . . . . . . . 831 639
Other interest . . . . . . . . . . . . . . . . 355 327
Income from partnerships . . . . . . . . . . . 1,185 750
Other. . . . . . . . . . . . . . . . . . . . . 643 473
-------- --------
Total revenues . . . . . . . . . . . . 30,825 30,453
-------- --------
Expenses:
Personnel. . . . . . . . . . . . . . . . . . . 2,743 2,643
Advertising and promotion. . . . . . . . . . . 521 619
Utilities. . . . . . . . . . . . . . . . . . . 773 1,022
Building repairs and maintenance
and services . . . . . . . . . . . . . . . . 1,381 1,292
Landscaping and grounds maintenance. . . . . . 554 594
Real estate taxes. . . . . . . . . . . . . . . 3,342 3,420
Insurance. . . . . . . . . . . . . . . . . . . 230 200
Property management fees . . . . . . . . . . . 695 707
Other operating expenses . . . . . . . . . . . 299 265
Interest . . . . . . . . . . . . . . . . . . . 5,642 5,316
Amortization of deferred costs . . . . . . . . 118 111
Depreciation . . . . . . . . . . . . . . . . . 4,966 4,790
General and administrative . . . . . . . . . . 928 1,046
-------- --------
Total expenses . . . . . . . . . . . . 22,192 22,025
-------- --------
Income before nonrecurring gains
and minority interest. . . . . . . . . . . . . 8,633 8,428
Gain on sale of residential property . . . . . . 22,316 --
-------- --------
Income before minority interest. . . . . . . . . 30,949 8,428
Minority interest. . . . . . . . . . . . . . . . 5,021 1,148
-------- --------
Net income . . . . . . . . . . . . . . 25,928 7,280
Less income attributable to preferred shares . . 1,829 1,873
-------- --------
Net income attributable to
common shares. . . . . . . . . . . . $ 24,099 5,407
======== ========
Net income per common share - basic . . . . . . $ 1.42 .32
======== ========
Net income per common share - diluted. . . . . . $ 1.23 .32
======== ========
Dividends declared and paid per common share . . $ .46 .45
======== ========
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 2000
(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, 1999. . . . . 20,971,138 $210 421,989 (12,000) (53,158) 357,041
Shares issued in
connection with:
Executive Share
Purchase Plan. . . . . . 5,821 -- 126 -- -- 126
Employees' and
Trustees' notes,
net of repayments. . . . -- -- -- 40 -- 40
Units converted
to shares. . . . . . . . 30,387 -- 492 -- -- 492
Reallocation of
minority interest. . . . . -- -- 7 -- -- 7
Earnings in excess of
dividends paid . . . . . . -- -- -- -- 16,265 16,265
---------- ---- ------- ------- ------- -------
Balance at
March 31, 2000 . . . . . . 21,007,346 $210 422,614 (11,960) (36,893) 373,971
========== ==== ======= ======= ======= =======
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
(Dollars in thousands)
2000 1999
-------- --------
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . $ 25,928 7,280
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization. . . . . . . 5,084 4,901
Cash distributions from partnerships
in excess of share of income . . . . . . 1,526 750
Loss from Service Companies. . . . . . . . 378 374
Gain on sale of residential property . . . (22,316) --
Minority interest. . . . . . . . . . . . . 5,021 1,148
Changes in assets and liabilities:
Increase in deferred costs . . . . . . . . (7) (131)
(Increase) decrease in
security deposits. . . . . . . . . . . . (35) 2
Decrease in other assets . . . . . . . . . 2,479 1,367
Decrease in accrued real estate taxes. . . (4,316) (3,965)
Increase in accrued interest payable . . . 16 43
Increase (decrease) in tenant security
deposits and prepaid rents . . . . . . . 129 (160)
Decrease in other liabilities. . . . . . . (790) (347)
-------- -------
Net cash provided by
operating activities . . . . . . . . 13,097 11,262
-------- -------
Cash flows from investing activities:
Net cash proceeds from sale of
residential property . . . . . . . . . . . . 42,105 --
Investments in partnerships. . . . . . . . . . (11,818) (2,108)
Repayments from (advances to) affiliates . . . 2,001 (4,655)
Earnest money deposits . . . . . . . . . . . . (3,400) 242
Acquisition properties . . . . . . . . . . . . (43,275) (754)
Capital expenditures - rehab properties. . . . (1,351) (547)
Capital expenditures - other properties. . . . (793) (421)
Properties under development, net of
co-investors' share of costs . . . . . . . . (13,732) (7,557)
(Decrease) increase in construction
costs payable. . . . . . . . . . . . . . . . (993) 443
-------- -------
Net cash used in
investing activities . . . . . . . . (31,256) (15,357)
-------- -------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
2000 1999
-------- --------
Cash flows from financing activities:
Debt proceeds, net of financing costs. . . . . 147,000 51,934
Debt repayments. . . . . . . . . . . . . . . . (117,674) (38,829)
Proceeds from issuance of Executive
Share Purchase Plan shares, net of
Employees' and Trustees' notes . . . . . . . 166 316
Distributions to partners. . . . . . . . . . . (1,627) (1,604)
Dividends paid . . . . . . . . . . . . . . . . (9,663) (9,400)
-------- -------
Net cash provided by
financing activities . . . . . . . . 18,202 2,417
-------- -------
Net increase (decrease) in cash and
cash equivalents . . . . . . . . . . . . . . . 43 (1,678)
Cash and cash equivalents at
beginning of period. . . . . . . . . . . . . . 2,318 4,546
-------- -------
Cash and cash equivalents at
end of period. . . . . . . . . . . . . . . . . $ 2,361 2,868
======== =======
Supplemental disclosure of cash flow
information:
Cash paid for mortgage and other interest,
net of amounts capitalized . . . . . . . . . $ 5,626 5,273
======== ========
See accompanying notes to consolidated financial statements.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000 AND 1999
(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, 2000 and December 31, 1999 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, 1999 Annual Report on Form 10-K filed with the Securities and Exchange
Commission. The results for the three months ended March 31, 2000 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, 2000. 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 1999, the Company commenced the rehab of three
additional properties, AMLI at Spring Creek, Atlanta, AMLI at North Dallas
and AMLI at Valley Ranch, Dallas. Through March 31, 2000, the Company has
spent $8,602 on rehab of these four properties. A rehab is a capital
improvement program involving significant repairs, replacements and
improvements at an aggregate cost of at least the greater of $3.0 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 are capitalized and depreciated over their policy
lives.
<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 "Properties 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 properties".
Regardless of whether or not 95% occupancy is achieved, a community
or new phase will be reported as "Rental properties" no later than six
months following substantial completion of construction.
At March 31, 2000, the Company's properties under development include
parcels of land in the initial phase of development on which physical
construction will commence later this year or in 2001. 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 3/31/00
- --------- -------- ------ ------ ------------
<S> <C> <C> <C> <C>
Wholly-Owned:
Development Communities:
AMLI:
at Bent Tree II Dallas, TX 10 200 $ 12,554
--- ----- --------
Total Development Communities 10 200 12,554
--- ----- --------
Land held for future development:
AMLI:
at Champions II (1) Houston, TX 14 288 2,772
at Kings Harbor (1) Houston, TX 15 300 2,713
at Mesa Ridge (1) Ft. Worth, TX 27 500 4,232
at Fossil Lake Ft. Worth, TX 19 324 3,156
at Fossil Lake II (1) Ft. Worth, TX 15 240 2,242
at Prairie Lakes I Noblesville, IN 17 228 990
at Prairie Lakes II-IV Noblesville, IN 103 1,100 5,131
at Peachtree City II (1) Peachtree City, GA 21 216 3,243
at Anderson Mill (1) Austin, TX 39 480 4,120
at Downtown Austin (1) Austin, TX 2 216 5,886
at Parmer (1) Austin, TX 28 520 3,289
at Vista Ridge (1) City of Lewisville, TX 15 300 2,943
at Cambridge Square (1) Overland Park, KS 34 408 3,862
at Westwood Ridge (1) Overland Park, KS 30 420 3,026
--- ----- --------
Total Land Held for Development 379 5,540 47,605
--- ----- --------
Total Wholly-Owned 389 5,740 60,159
--- ----- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NUMBER NUMBER TOTAL
OF OF EXPENDED
COMMUNITY LOCATION ACRES UNITS THRU 3/31/00
- --------- -------- ------ ------ ------------
Co-Investments
(Company Ownership Percentage):
Development Communities:
AMLI:
at Mill Creek (25%) Gwinnett County, GA 33 400 6,599
at Lost Mountain (75%) Paulding County, GA 17 164 4,925
at Park Bridge (25%) Atlanta, GA 35 352 11,133
at Oakhurst North (25%) (2) Aurora, IL 29 464 43,122
at Monterey Oaks (25%) Austin, TX 26 430 22,933
at St. Charles (25%) St. Charles, IL 25 400 41,335
Creekside (25%) Overland Park, KS 12 224 14,558
at Wynnewood Farms (25%) Overland Park, KS 20 232 15,783
at Regents Crest II (25%) Overland Park, KS 6 108 7,783
at Castle Creek (40%) Indianapolis, IN 16 276 16,115
at Lake Clearwater (25%) Indianapolis, IN 11 216 15,763
at Summit Ridge (25%) Lee's Summit, MO 24 432 11,651
--- ----- --------
Total Co-Investments (3) 254 3,698 211,700
--- ----- --------
Total Wholly-Owned and Co-Investments 643 9,438 $271,859
=== ===== ========
<FN>
(1) It is the Company's intention to develop these land parcels in partnership with one or more institutional
investors.
(2) This property is substantially complete at March 31, 2000 and is anticipated to be substantially leased
in the second quarter of this year.
(3) Excludes AMLI on Spring Mill, a 400 unit community located in Hamilton County, Indiana, in which a 20%
residual interest was acquired for $1,243 on June 16, 1999. Completed at a cost of $29,477, this property is 84%
leased at March 31, 2000 and is anticipated to be substantially leased in the second quarter of this year.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Acquisition
The table below summarizes the properties acquired by the Company during 1999-2000:
<CAPTION>
Company
Percen- Year
tage Number Com-
Owner- of pleted Date Purchase Total
Community ship Units (1) Acquired Price Debt Equity
- --------- -------- -------- -------- -------- -------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
WHOLLY-OWNED:
AMLI:
at StoneHollow
Austin, TX (2) . . 100% 606 1997 02/13/00 $ 36,806 -- 36,806
at Towne Creek
Gainesville,
GA (2)(3). . . . . 100% 150 1989 02/08/00 6,617 -- 6,617
------ -------- ------ -------
756 43,423 -- 43,423
------ -------- ------ -------
CO-INVESTMENTS:
AMLI:
at Spring Mill. . . 20%
Indianapolis,. . . (Resi-
IN (4) . . . . . . idual) 400 1999 06/30/99 29,475 -- 29,475
at Prestonwood
Hills
Dallas, TX . . . . 45% 272 1997 08/12/99 17,650 11,649 6,001
at Windward Park
Alpharetta, GA . . 45% 328 1999 08/26/99 27,485 18,183 9,302
at Oak Bend
Lewisville, TX . . 40% 426 1997 10/26/99 25,250 18,834 6,416
Midtown
Houston, TX. . . . 45% 419 1998 01/13/00 33,250 21,945 11,305
------ -------- ------ -------
1,845 133,110 70,611 62,499
------ -------- ------ -------
2,601 $176,533 70,611 105,922
====== ======== ====== =======
<FN>
(1) These acquisitions and the dispositions of older communities resulted in a lower weighted average age and
improved portfolio of apartment homes.
(2) These acquisitions completed a deferred third party exchange for Federal income tax purposes.
<PAGE>
(3) The company acquired the 99% interest in the community that it did not already own.
(4) The Company paid $1.3 million for the general partnership interest in the partnership.
Disposition
The Company selectively sells properties and reinvests the proceeds in new communities to continually improve
the quality of its portfolio and increase growth potential in net operating income. The gains on sale of
residential communities are reported separately in the accompanying Statements of Operations and neither the
properties' selling prices nor related gains are included in revenues in the accompanying consolidated Statements
of Operations.
</TABLE>
<PAGE>
<TABLE> AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The table below summarizes the properties sold by the Company during 1999-2000.
<CAPTION>
Net
Operating
Income in
Twelve
Company Months
Percen- Costs Immediately
tage Date Before Prior to
Owner- Number Acquired/ Date Depre- Sale Net Date of
Community ship of Units Developed Sold ciation Price Proceeds Gain Sale
- --------- -------- -------- --------- -------- -------- -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WHOLLY-OWNED:
AMLI at:
Park Sheridan
Chicago, IL 100% 253 09/01/89 10/12/99 $11,186 23,500 23,088 15,102 1,586
Crown Colony
Topeka, KS 100% 220 10/18/94-
06/30/97 10/14/99 10,239 11,288 11,194 1,959 1,027
Sherwood
Topeka, KS 100% 300 10/18/94 10/14/99 14,130 14,962 14,832 2,434 1,560
Sope Creek
Marietta, GA (1) 100% 695 1982/83/95 02/03/00 27,604 42,500 42,105 22,316 4,014
----- ------- ------- ------- ------- -------
1,468 63,159 92,250 91,219 41,811 8,187
----- ------- ------- ------- ------- -------
CO-INVESTMENTS:
AMLI at:
Park Place
Austin, TX 25% 588 05/16/94 12/15/99 21,419 25,750 24,832 6,001 2,396
Prairie Court
Chicago, IL 1% 125 09/01/87 08/16/99 9,129 13,500 12,850 6,717 911
----- ------- ------- ------- ------- -------
713 30,548 39,250 37,682 12,718 3,307
----- ------- ------- ------- ------- -------
2,181 $93,707 131,500 128,901 54,529 11,494
===== ======= ======= ======= ======= =======
<FN>
(1) The net proceeds from this sale were used to acquire AMLI at StoneHollow and AMLI at Towne Creek
which completed the deferred third party exchange for Federal income tax purposes.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
In addition, on April 28, 1999, the Company completed the sale of a
19.7 acre land parcel for cash of $1,477, resulting in a gain on sale of
$281. AMLI had originally planned to build an additional phase to an
existing apartment community on this land. AMLI subsequently determined
that value would be maximized through the sale of the vacant land.
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, 2000, the Company was a party to six 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 swap contracts at March 31, 2000.
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
<CAPTION>
Approximate
Cumulative Value at
Notional Fixed Term of Contract Cash March 31,
Amount(1) Rate(2) Contract Maturity Paid, Net 2000 (3)
- -------- ------- -------- --------- ---------- -------------
<S> <C> <C> <C> <C> <C>
$10,000 6.216% 5 years 11/01/02 $174 174
10,000 6.029% 5 years 11/01/02 130 220
20,000 6.145% 5 years 02/15/03 297 426
10,000 6.070% 5 years 02/18/03 133 234
15,000 6.405% 5 years 09/20/04 49 333
10,000 6.438% 5 years 10/04/04 27 210
- ------- ---- -----
$75,000 $810 1,597
======= ==== =====
<FN>
(1) On May 8, 2000, the Company entered into a swap agreement that fixed the rate from floating on an additional
$75,000 of borrowings under the Company's unsecured line of credit. This swap matures on May 2001.
(2) 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.
(3) Represents the approximate amount which the Company would have received as of March 31, 2000 if these
contracts were terminated. This amount is not recorded as an asset in the accompanying balance sheet as of March
31, 2000.
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, 2000 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,
------------------------
2000 1999
---------- -----------
Income before extraordinary items. . . . . . $ 25,928 7,280
Less income attributable to preferred
shares . . . . . . . . . . . . . . . . . . (1,829) (1,873)
---------- ----------
Income before extraordinary items
attributable to common shares - Basic . . . $ 24,099 5,407
========== ==========
Income before extraordinary items
- Diluted . . . . . . . . . . . . . . . . . $ 25,928 7,280
========== ==========
Weighted average common shares - Basic . . . 17,021,050 16,739,804
Dilutive Options and Other Plan shares . . . 54,060 38,253
Convertible preferred shares . . . . . . . . 3,975,000 N/A (1)
---------- ----------
Weighted average common shares
- Dilutive . . . . . . . . . . . . . . . . 21,050,110 16,778,057
========== ==========
Earnings per share before extra-
ordinary items:
Basic. . . . . . . . . . . . . . . . . . $ 1.42 0.32
Diluted. . . . . . . . . . . . . . . . . $ 1.23 0.32
========== ==========
(1) In 1999, convertible preferred shares were anti-dilutive.
3. INVESTMENTS IN PARTNERSHIPS AND SERVICE COMPANIES
INVESTMENTS IN PARTNERSHIPS
At March 31, 2000, the Operating Partnership is a general partner in
various co-investment partnerships. 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. The Operating Partnership has
received cash flow and has recorded operating income in excess of its
ownership percentages of $190 for the three months ended March 31, 2000.
Investments in partnerships at March 31, 2000 and the Company's 2000 share
of income or loss for the three months then ended 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 Greenwood
Forest 15% $15,952 4,276 641 624 26 4 18
at Champions
Park 15% 11,754 2,908 436 436 48 7 13
at Champions
Centre 15% 8,906 2,228 334 334 (4) (1) 11
at Windbrooke 15% 16,622 4,659 699 699 38 6 27
at Willeo Creek 30% 14,057 4,297 1,289 1,289 30 9 39
at Pleasant Hill 40% 24,574 9,227 3,670 3,215 287 115 83
at Barrett Lakes 35% 25,364 8,522 2,983 3,090 188 66 80
at Chevy Chase 33% 42,991 13,094 4,311 4,311 436 144 108
at Willowbrook 40% 35,520 10,889 4,355 4,271 225 90 117
at River Park 40% 14,210 5,092 2,037 1,993 139 56 44
at Fox Valley 25% 23,525 22,880 5,720 5,907 300 75 46
at Fossil Creek 25% 20,364 20,092 5,023 5,114 384 96 45
at Danada Farms 10% 45,909 19,975 1,998 1,988 435 44 34
at Verandah 35% 22,889 5,695 2,031 2,088 (27) 8 98
at Northwinds 35% 52,731 19,695 6,907 6,747 447 156 154
at Regents Crest 25% 32,267 15,986 4,003 4,078 63 37 52
at Oakhurst North 25% 42,463 41,680 10,420 10,422 144 36 84
at Wells Branch 25% 33,446 32,996 8,249 7,690 563 141 72
on the Parkway 25% 15,266 4,484 1,119 812 43 11 36
on Timberglen 40% 10,652 3,876 1,562 174 (21) 1 48
at Castle Creek 40% 18,228 16,137 6,455 6,604 (59) (24) 28
at Lake Clear-
water 25% 15,719 14,150 3,538 3,605 (38) (9) 29
Creekside 25% 14,507 13,366 3,342 3,446 (122) (30) 16
at Deerfield 25% 17,403 4,656 1,161 973 (52) (13) 38
at Wynnewood
Farms 25% 15,831 13,503 3,376 3,407 (119) (30) 16
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
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
- --------- ---------- ------- ------ --------- ---------- ----- ---------- ----------
at Monterey Oaks 25% 22,902 19,775 4,944 4,985 (102) (25) 9
at St. Charles 25% 43,517 37,160 9,290 9,305 93 23 50
at Park Bridge 25% 11,136 9,309 2,327 2,375 (2) (1) --
at Mill Creek 25% 6,664 6,466 1,617 1,663 -- -- --
at Lost Mountain 75% 6,289 364 365 454 (1) (1) --
on Spring Mill 20%
(Residual) 30,036 29,193 -- 1,306 358 -- --
at Prestwood
Hills 45% 18,011 6,175 2,832 2,796 55 35 53
at Windward Park 45% 28,133 9,595 4,355 4,346 82 53 82
at Summit Ridge 25% 11,799 1 -- (105) (1) -- --
at Oak Bend 40% 25,625 6,316 2,509 2,509 74 38 65
Midtown 45% 34,180 11,807 5,361 5,338 79 56 93
-------- ------- ------- ------- ----- ----- ------
829,442 450,524 119,259 118,289 3,989 1,173 1,688
Other -- -- -- 2 -- 12 --
-------- ------- ------- ------- ----- ----- ------
$829,442 450,524 119,259 118,291 3,989 1,185 1,688
======== ======= ======= ======= ===== ===== ======
</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,
purchase price basis differences and the elimination of the Company's share
of development fee income. These items are amortized over 40 years using
the straight-line method.
All but one debt financing has been obtained at fixed rates from
various insurance companies on behalf of these co-investment partnerships.
The following summarizes co-investment debt at March 31, 2000:
Total Outstanding Interest
Community Commitment at 3/31/00 Rate Maturity
- --------- ---------- ----------- -------- --------
AMLI:
at Champions Centre $ 6,700 6,503 8.93% January 2002
at Champions Park 9,500 8,667 7.49% January 2002
at Windbrooke 11,500 11,279 9.24% February 2002
at Greenwood Forest 11,625 11,421 8.95% May 2002
at Summit Ridge 18,940 9,809 L+1.75% December 2002
at Chevy Chase 29,767 28,276 6.67% April 2003
at Willeo Creek 10,000 9,522 6.77% May 2003
at Willowbrook 24,500 23,489 7.785% May 2003
at Regents Crest 16,500 15,679 7.50% December 2003
at Verandah 16,940 16,723 7.55% April 2004
on Timberglen 6,770 6,603 7.70% June 2004
at Prestonwood Hills 11,649 11,592 7.17% August 2006
at Windward Park 18,183 18,095 7.27% August 2006
at Oak Bend 18,834 18,794 7.81% December 2006
at Deerfield 12,600 12,579 7.56% January 2007
Midtown 21,945 21,909 7.52% January 2007
at Danada Farms 24,500 24,266 7.33% March 2007
at Pleasant Hill 15,500 14,924 9.15% March 2007
at River Park 9,100 8,852 7.75% June 2008
on the Parkway 10,800 10,596 6.75% January 2009
at Barrett Lakes 16,680 16,424 8.50% December 2009
at Northwinds 33,800 31,404 8.25% October 2010
at Lost Mountain 10,252 5,143 6.84% November 2040
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. Some loans provide for payments of interest only for
an initial period, with principal amortization commencing generally within
two years.
Investments in Service Companies
Summarized combined financial information of the Service Companies at
and for the three months ended March 31, 2000 and 1999 follows:
2000 1999
------- -------
Income (1) $ 4,335 2,751
General and adminis-
trative expenses (3,373) (2,075)
------- -------
EBITDA 962 676
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
2000 1999
------- -------
Interest (813) (704)
Depreciation (434) (362)
Income taxes 108 147
------- -------
Loss (2)(3) $ (177) (243)
======= =======
Total assets $52,729 38,279
======= =======
(1) Net of construction and landscaping costs.
(2) Net of tax effect includes $104 in amortization of goodwill
in both years.
(3) In 2000, includes $149 after-tax gain from sale of land.
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,
------------------
2000 1999
------ ------
Intercompany interest expensed . . . . . . . $1,122 704
Intercompany interest capitalized. . . . . . 88 309
Loss . . . . . . . . . . . . . . . . . . . . (191) (243)
Intercompany eliminations and
minority interests . . . . . . . . . . . . (188) (131)
------- ------
$ 831 639
======= ======
4. RELATED PARTY TRANSACTIONS
During the three months ended March 31, 2000 and 1999, the Company
accrued or paid to its affiliates fees and other costs and expenses as
follows:
2000 1999
------ -----
Management fees $ 695 707
General contractor fees 54 89
Interest expense 139 137
Landscaping and grounds maintenance 501 233
====== =====
In addition, at March 31, 2000 and December 31, 1999, the Company
owed Amli Residential Construction, Inc. $1,075 and $2,068, 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, 2000 and 1999, the Company
earned or received from its affiliates other income as follows:
2000 1999
------ -----
Development fees $ 385 320
Acquisition fees 110 --
Asset management fees 148 151
Accounting and administrative fees -- 2
Interest on advances to other
affiliates 127 79
Interest on notes and advances
to Service Companies 1,210 1,013
====== =====
In addition, during the three months ended March 31, 2000 and 1999,
total revenues of $495 and $656, respectively, were generated from leases
to AMLI Corporate Homes ("ACH"), a division of one of the Service
Companies.
<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 3/31/00 Rate Date 12/31/99
- ---------------------- -------- -------- -------- -------- --------
<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 12,434 7.00% 6/15/03 12,498
AMLI at Riverbend 31,000 29,166 7.30% 7/1/03 29,307
AMLI in Great Hills 11,000 10,353 7.34% 7/1/03 10,402
AMLI at Valley Ranch 11,500 10,166 7.625% 7/10/03 10,229
AMLI at Nantucket 7,735 7,544 7.70% 6/1/04 7,573
AMLI at Bishop's Gate 15,380 14,734 (2) 8/1/05 14,803
AMLI at Regents Center 20,100 19,413 (3) 9/1/05 19,463
AMLI on the Green/AMLI of North Dallas (4) 43,234 40,946 7.789% 5/1/06 41,120
AMLI at Clairmont 12,880 12,855 6.95% 2/15/08 12,880
AMLI at Park Creek 10,322 10,256 7.875% 12/1/38 10,266
-------- ------- --------
Total Mortgage Notes Payable 176,426 167,867(5) 168,541
-------- ------- --------
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Balance Balance
Original at Interest Maturity at
Encumbered Properties Amount 3/31/00 Rate Date 12/31/99
- --------------------- -------- -------- -------- -------- --------
OTHER NOTES PAYABLE:
Unsecured line of credit (6)(7) 250,000 175,000 L+1.05% 10/11/02 145,000
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 255,750 180,750 150,750
-------- ------- -------
Total $482,426 398,867 369,541
======== ======= =======
<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 (5.10% for AMLI at Spring Creek and 5.13%
for AMLI at Poplar Creek at April 26, 2000). 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 11, 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 note bears interest at 9.1%. For financial reporting purposes, this mortgage
note 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, 2000, the
unamortized discount amount is $410.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(5) All but $20,913 of the total is non-recourse to the partners of the Operating Partnership.
(6) The Company has used interest rate swaps on $75,000 of the outstanding amount to fix its base interest rate
(before current lender's spread) at an average of 6.22%.
(7) The Company's unsecured line of credit has been provided by a group of eight banks led by Wachovia Bank,
N.A. and Bank One, N.A. In October 1999, the Company increased the line of credit by $50,000 to $250,000,
expandible to $300,000, and extended the maturity of the line of credit by one year to October 2002 with two one-
year renewal options. In addition, the interest rate, which is based in part on the credit rating assigned to
unsecured borrowings, increased to LIBOR plus 1.05% from LIBOR plus 0.90%. 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, 2000, 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>
2000 . . . . . . . . . . . . . . . . . . $ -- 2,136 -- 750 2,886
2001 . . . . . . . . . . . . . . . . . . -- 3,039 -- -- 3,039
2002 . . . . . . . . . . . . . . . . . . 50,250 3,273 175,000 -- 228,523
2003 . . . . . . . . . . . . . . . . . . -- 60,117 -- 5,000 65,117
2004 . . . . . . . . . . . . . . . . . . -- 8,933 -- -- 8,933
Thereafter . . . . . . . . . . . . . . . -- 90,369 -- -- 90,369
------- ------- ------- ------- -------
$50,250 167,867 175,000 5,750 398,867
======= ======= ======= ======= =======
</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.
8. SEGMENT REPORTING
The revenues, net operating income, FFO and assets for the Company's
reportable segment are summarized as follows:
Three Months Ended
March 31,
------------------------
2000 1999
---------- ----------
Multifamily segment revenues (1) . . . . . . . . . $ 54,491 47,329
========== ==========
Multifamily segment net operating income (1) . . . $ 33,370 29,159
Reconciling items to FFO:
Reduce co-investment net operating income
to Company's share (2) . . . . . . . . . . . . (13,224) (9,750)
Interest income and share of income (loss)
from Service Companies . . . . . . . . . . . . 935 739
Other interest income. . . . . . . . . . . . . . 355 327
Other revenues . . . . . . . . . . . . . . . . . 643 473
General and administrative expenses. . . . . . . (928) (1,046)
Interest expense and loan cost amortization. . . (5,760) (5,427)
---------- ----------
Consolidated FFO before minority interest. . . . . 15,391 14,475
---------- ----------
Reconciling items to net income:
Depreciation - wholly owned properties . . . . . (4,966) (4,790)
Depreciation - share of co-investment
properties . . . . . . . . . . . . . . . . . . (1,688) (1,157)
Share of Service Company's goodwill
amortization . . . . . . . . . . . . . . . . . (104) (100)
Gain on sale of residential property . . . . . . 22,316 --
---------- ----------
Income before minority interest and
extraordinary items. . . . . . . . . . . . . . . 30,949 8,428
Minority interest. . . . . . . . . . . . . . . . . 5,021 1,148
---------- ----------
Net income . . . . . . . . . . . . . . . . . . . . $ 25,928 7,280
========== ==========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
March 31, December 31,
2000 1999
---------- ------------
Segment assets (1) (3) . . . . . . . . . . . . . . $1,524,620 1,462,051
========== ==========
(1) In 2000, represents all properties in which the Company has an
ownership interest; in 1999, excludes AMLI at Prairie Court and AMLI at
Towne Creek, in which the Company had a 1% GP interest.
(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, 2000 and December 31, 1999 and for the three months ended
March 31, 2000 and 1999.
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 Series A convertible preferred shares for $20 per share, or
$24,000, directly to four institutional investors and Amli Realty Co.
("ARC") in a registered offering. Through March 31, 2000, 350,000 Series A
convertible preferred shares have been converted to common shares. 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 Series B 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, 2000, 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. Through March 31, 2000, 320,455 OP Units
have been converted to common shares. At March 31, 2000, the Company owned
3,537,129 OP Units and the limited partners owned 21,007,346 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, 1999 through March 31, 2000, growth
from property revenues and property operating expenses resulted from
increases at communities owned as of January 1, 1999, from communities
acquired and from the newly-constructed communities since January 1, 1999.
Since January 1, 1999, the Company has acquired a total of 756 units
of two stabilized communities (AMLI at StoneHollow and AMLI at Towne Creek)
and developed and begun rental operations on 200 apartment homes of one
community (AMLI at Bent Tree II). During the same period, the Company has
sold four stabilized communities containing a total of 1,468 apartment
homes. Property operations for the three months ended March 31, 2000 and
1999 are summarized as follows:
<PAGE>
Increase
2000 1999 (Decrease)
------- ------ ---------
Total Property Revenues
- -----------------------
Same Communities. . . . . . . . . $25,389 24,871 518
New Communities . . . . . . . . . 619 188 431
Development and/or Lease-up
Communities. . . . . . . . . . . 123 -- 123
Acquisition Communities . . . . . 1,148 -- 1,148
Communities Contributed
to Ventures/Sold . . . . . . . . 532 3,204 (2,672)
------- ------- -------
Total. . . . . . . . . . . . . $27,811 28,263 (452)
======= ======= =======
Total Property Operating Expenses
- ---------------------------------
Same Communities. . . . . . . . . $ 9,666 9,380 286
New Communities . . . . . . . . . 198 146 52
Development and/or Lease-up
Communities. . . . . . . . . . . 87 -- 87
Acquisition Communities . . . . . 401 -- 401
Communities Contributed
to Ventures/Sold . . . . . . . . 186 1,236 (1,050)
------- ------- -------
Total. . . . . . . . . . . . . $10,538 10,762 (224)
======= ======= =======
Total Property Net Operating Income
- -----------------------------------
Same Communities. . . . . . . . . $15,723 15,491 232
New Communities . . . . . . . . . 421 42 379
Development and/or Lease-up
Communities. . . . . . . . . . . 36 -- 36
Acquisition Communities. . . . . 747 -- 747
Communities Contributed
to Ventures/Sold . . . . . . . . 346 1,968 (1,622)
------- ------- -------
Total. . . . . . . . . . . . . $17,273 17,501 (228)
======= ======= =======
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").
Since January 1999, the Company has invested in four co-investment
partnerships which acquired four stabilized communities: AMLI at
Prestonwood Hills, a 272-unit community, AMLI at Windward Park, a 328-unit
community, AMLI at Oak Bend, a 426-unit community, and AMLI at Midtown, a
419-unit community. In addition, the Company in joint venture with
institutional investors, completed the development or has under development
and begun rental operations of seven new communities and one additional
phase to an existing stabilized community, that contain a total of 2,350
apartment homes (AMLI at Oakhurst North, AMLI at St. Charles, AMLI at
Clearwater, AMLI at Castle Creek, AMLI Creekside, AMLI at Wynnewood, AMLI
at Monterey Oaks and AMLI at Regents Crest II). Property operations for
all co-investment properties for the three months ended March 31, 2000 and
1999 are summarized as follows:
<PAGE>
Increase
2000 1999 (Decrease)
------- ------- ---------
Total Co-investment Property Revenues
- -------------------------------------
Same Communities. . . . . . . . . $15,219 14,613 606
New Communities . . . . . . . . . 6,056 3,527 2,529
Development and/or Lease-up
Communities. . . . . . . . . . . 1,140 -- 1,140
Acquisition Communities . . . . . 4,545 -- 4,545
Communities Contributed
to Ventures/Sold . . . . . . . . 117 1,782 (1,665)
------- ------- -------
Total. . . . . . . . . . . . . $27,077 19,922 7,155
======= ======= =======
Company's share of co-invest-
ment total revenues. . . . . . . $ 7,878 5,372 2,506
======= ======= =======
Total Co-investment
Property Operating Expenses
- ---------------------------
Same Communities. . . . . . . . . $ 5,540 5,417 123
New Communities . . . . . . . . . 2,302 1,466 836
Development and/or Lease-up
Communities. . . . . . . . . . . 918 -- 918
Acquisition Communities . . . . . 1,722 -- 1,722
Communities Contributed
to Ventures/Sold . . . . . . . . 80 793 (713)
------- ------- -------
Total. . . . . . . . . . . . . $10,562 7,676 2,886
======= ======= =======
Company's share of co-invest-
ment property operating
expenses . . . . . . . . . . . . $ 3,029 2,048 981
======= ======= =======
Total Co-investment Property
Net Operating Income
- ----------------------------
Same Communities. . . . . . . . . $ 9,679 9,196 483
New Communities . . . . . . . . . 3,754 2,061 1,693
Development and/or Lease-up
Communities. . . . . . . . . . . 222 -- 222
Acquisition
Communities. . . . . . . . . . . 2,823 -- 2,823
Communities Contributed to
Ventures/Sold. . . . . . . . . . 37 989 (952)
------- ------- -------
Total. . . . . . . . . . . . . $16,515 12,246 4,269
======= ======= =======
Company's share of co-invest-
ment property EBITDA. . . . . . . $ 5,039 3,388 1,651
======= ======= =======
For the three months ended March 31, 2000, total revenues were $30,825
and net income was $25,928 including a gain of $22,316 from the sale of
AMLI at Sope Creek. For the three months ended March 31, 1999, total
revenues were $30,453 and net income was $7,280. First quarter of 2000
diluted earnings per common share included a gain from the sale of AMLI at
Sope Creek ($0.90 per diluted share) and increased to $1.23 from $0.32 for
the first quarter of 1999. Basic earnings per common share for the three
months ended March 31, 2000 increased to $1.42 ($0.33 excluding the gain)
from $0.32 for the three months ended March 31, 1999.
<PAGE>
On a "same community" basis, weighted average occupancy of the
apartment homes owned wholly by the Company decreased slightly to 91.1% for
the three months ended March 31, 2000 from 91.9% in the prior year.
Weighted average collected rental rates increased by 2.4% to $757 from $739
per unit per month for the three months ended March 31, 2000 and 1999,
respectively. Including Co-Investment Communities, weighted average
occupancy of the Company's apartment homes decreased to 92.2% for the three
months ended March 31, 2000 from 92.3% in the prior year, and weighted
average collected rental rates increased by 2.1% to $789 from $773 per unit
per month for the three months ended March 31, 2000 and 1999, respectively.
COMPARISON OF THREE MONTHS ENDED MARCH 31, 2000 TO THREE MONTHS ENDED
MARCH 31, 1999.
Income before minority interest increased to $30,949 for the three
months ended March 31, 2000 from $8,428 for the three months ended March
31, 1999. This increase was primarily attributable to a $22,316 gain on
sale of a residential property, a $372 increase in total revenues and a
$224 decrease in property operating expenses, reduced by a $326 increase in
interest expense and a $176 increase in depreciation. Net income for the
three months ended March 31, 2000 and 1999 was $25,928 and $7,280,
respectively. Total property revenues decreased by $453, or 1.6%. This
increase in property revenues was primarily from the 756 apartment homes
acquired during 2000. In addition, the Company commenced leasing of 200
apartment homes under development during 1999 and 2000. 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 various fees charged to residents.
On the same community basis total property revenues increased by $518 or
2.1% and property operating income increased by $233 or 1.5%.
Interest and share of income from Service Companies increased 30% to
$831 from $639 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 and a $149 gain from sales of two land
parcels.
Income from partnerships increased to $1,185 from $750, or 58%. This
increase was a result of the acquisition of four stabilized communities
containing a total of 1,445 units through four new co-investment
partnerships. In addition, eight new co-investment partnerships have
invested in seven development communities and a second phase to an existing
stabilized community, which have a total of 2,350 apartment homes that
began rental operations in late 1998, 1999 and 2000. On the same community
basis, the Company's share of total property revenues increased by $91 or
4.2% and share of property net operating income increased by $124 or 4.8%.
Other income increased to $643 from $473, or 35.9% as a result of fees
charged to newly formed co-investment partnerships that own properties
under development and newly acquired communities. This increase also
includes a $110 increase in acquisition fees and a $66 increase in
development fees.
Property operating expenses decreased by $224, or 2.1%. This increase
is principally due to the decrease in utilities expense largely as a result
of increased collections from residents. On the same community basis,
property operating expenses increased by $285 or 3.0%.
Interest expense, net of the amounts capitalized, increased to $5,642
from $5,316 or 6.1%, primarily due to increased indebtedness incurred in
conjunction with investments in joint ventures which own stabilized
properties.
General and administrative expenses decreased to $928 for the three
months ended March 31, 2000 from $1,046 for the three months ended
March 31, 1999. The decrease is primarily attributable to lower than
anticipated expenses of transfer agent.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2000, the Company had $2,361 in cash and cash equivalents
and $75,000 in availability under its $250,000 unsecured line of credit.
At March 31, 2000, twenty 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, 2000 increased to $13,097 from $11,262 for the three months
ended March 31, 1999. The increase is primarily due to an increase in
other revenues from acquisition and development fees, reduced by an
increase in interest expense.
Cash flows used in investing activities for the three months ended
March 31, 2000 increased to $31,256 from $15,357 for the three months ended
March 31, 1999. The increase consisted primarily of increased expenditures
for acquisitions and development costs and increased investments in
partnerships offset in part by net proceeds from the sales of rental
communities.
Net cash flows used in financing activities for the three months ended
March 31, 2000 were $18,202, which reflect net proceeds of additional
borrowings and dividend payments.
Funds from operations ("FFO") is defined as net income (computed in
accordance with GAAP), excluding extraordinary gains (losses) from debt
restructuring and gains (losses) from sales of depreciable operating
properties, 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 does not
represent cash flows from operations, as defined by GAAP; is not indicative
that cash flows are adequate to fund all cash needs; and is not to be
considered an alternative to net income or any other GAAP measure as a
measurement of the results of the Company's operations or the Company's
cash flows or liquidity as defined by GAAP.
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 for the three months ended March 31, 2000 and 1999 is summarized
as follows:
March 31,
-----------------------
2000 1999
------- -------
Net income before minority
interest and extraordinary
item $30,949 8,428
Depreciation 4,966 4,790
Share of co-investment partner-
ships' depreciation 1,688 1,157
Share of Service Company's
goodwill amortization 104 100
Gain on sale of residential
property (22,316) --
------- ------
FFO $15,391 14,475
======= ======
Weighted average shares and units
including dilutive shares 24,596 24,494
======= ======
<PAGE>
The Company expects to pay quarterly dividends from cash available for
distribution. Until distributed, funds available for distribution will be
invested in short-term investment-grade securities or used to temporarily
reduce outstanding balances on the Company's revolving lines of credit.
The Company 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. The Company qualifies as a REIT
under Sections 856 through 860 of the Internal Revenue Code of 1986, as
amended. A REIT will generally not be subject to Federal income taxation
on that portion of its income that qualifies as REIT taxable income to the
extent that it distributes at least 95% of its taxable income to its
shareholders and complies with certain other requirements. In 1999, the
Company distributed approximately 90% of its taxable income and will
designate a portion of its dividends being paid during 2000 as a throw back
dividend to 1999. The Company's 2000 estimated dividend payment level
equals an annual rate of $1.84 per common share. The Company anticipates
that all dividends paid in 2000 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, 2000, 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, 2000 includes $167,867 (42.1% of
the total) which is secured by first mortgages on eleven 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% $167,867 42.1%
Tax-Exempt Tax-Exempt Rate + 1.23% 50,250 12.6%
Bonds (1) Tax-Exempt Rate + 1.15%
Lines of
Credit (2) LIBOR + 1.05% 175,000 43.9%
Notes payable
to Service
Companies Various 5,750 1.4%
-------- -----
Total $398,867 100.0%
======== =====
- --------------------
<PAGE>
(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 (5.10% for AMLI
at Spring Creek and 5.13% for AMLI at Poplar Creek at April 26, 2000). 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 2002. The interest
rate on $75,000 has been fixed pursuant to interest rate swap contracts.
On May 8, 2000, the Company entered into a swap agreement that fixed the
rate from floating on an additional $75,000. This swap matures in May
2001.
DEVELOPMENT ACTIVITIES
At March 31, 2000, the Company has made capital contributions totaling
$131,618 to its existing co-investment partnerships and anticipates funding
substantially all of its remaining commitment of $20,823 during 2000 to
complete the 4,098 apartment homes being developed by co-investment
partnerships.
Currently 200 apartment homes in a wholly-owned community is under
development. At March 31, 2000, the Company expects to incur $1,346 in
2000 to complete construction of this community.
The Company owns land for the development of an additional 5,540
apartment homes in Ft. Worth, Houston and Austin, Texas; Indianapolis,
Indiana; Kansas City, Kansas and Atlanta, Georgia. The Company has earnest
money deposits of $5,237 for six land parcels anticipated to be acquired in
2000 for 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 $3.0 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.
<PAGE>
At March 31, 2000, four communities were under rehab and have incurred
costs as follows:
AMLI:
at Riverbend $4,273
at Spring Creek 1,399
at North Dallas 2,103
at Valley Ranch 827
------
$8,602
======
INFLATION
Virtually all apartment leases at the wholly-owned 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
37.9% 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 44% of the Company's total market
capitalization at March 31, 2000 (50% including the Company's share of co-
investment partnerships' debt), the high percentage of intermediate term
fixed rate debt (42% 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, $30 million through February 2003, $15 million
through September 2004 and $10 million through October 2004 (19% 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.
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, 2000 and is not
currently expected to have a material impact on the Company's financial
statements.
<PAGE>
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
Certain statements set forth herein or incorporated by reference
herein from the Company's filings under the Securities Exchange Act of
1934, as amended, contain forward-looking statements, including, without
limitation, statements relating to the timing and anticipated capital
expenditures of the Company's development programs. Although the Company
believes that the expectations reflected in such forward-looking statements
are based on reasonable assumptions, the actual results may differ
materially from that set forth in the forward-looking statements. Certain
factors that might cause such differences include general economic
conditions, local real estate conditions, construction delays due to the
unavailability of construction materials, weather conditions or other
delays beyond the control of the Company. Consequently, such forward-
looking statements should be regarded solely as reflections of the
Company's current operating and development plans and estimates. These
plans and estimates are subject to revision from time to time as additional
information becomes available, and actual results may differ from those
indicated in the referenced statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Since March 31, 2000, there have been no significant changes in the
Company's exposure to interest rate changes or other market risks.
<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>
2000 1999
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 88% 92% 91% 91% 91%
at Bent Tree. . . . . . . . . 300 95% 92% 92% 93% 93%
at Bishop's Gate. . . . . . . 266 91% 93% 96% 93% 94%
at Chase Oaks . . . . . . . . 250 95% 97% 93% 92% 92%
at Gleneagles . . . . . . . . 590 92% 94% 95% 95% 94%
on the Green. . . . . . . . . 424 95% 94% 95% 94% 93%
at Nantucket. . . . . . . . . 312 94% 97% 95% 95% 94%
of North Dallas . . . . . . . 1,032 90% 90% 91% 90% 92%
on Rosemeade. . . . . . . . . 236 96% 95% 97% 95% 95%
at Valley Ranch . . . . . . . 460 97% 95% 96% 96% 91%
------ ----- ----- ----- ----- ----- ----- ----- -----
4,560 92% 93% 93% 93% 93%
------ ----- ----- ----- ----- ----- ----- ----- -----
AUSTIN, TEXAS
AMLI:
at the Arboretum. . . . . . . 231 95% 96% 91% 96% 97%
in Great Hills. . . . . . . . 344 97% 97% 94% 97% 93%
at Lantana Ridge. . . . . . . 354 94% 94% 97% 92% 92%
at Martha's Vineyard. . . . . 360 98% 96% 96% 98% 96%
at StoneHollow. . . . . . . . 606 98% N/A N/A N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
1,895 97% 96% 95% 96% 94%
------ ----- ----- ----- ----- ----- ----- ----- -----
ATLANTA, GEORGIA
AMLI:
at Clairmont . . . . . . . . . 288 97% 96% 96% 95% 94%
lease lease
at Killian Creek . . . . . . . 256 97% 98% 96% up up
at Park Creek. . . . . . . . . 200 95% 88% 90% 95% 88%
at Peachtree City. . . . . . . 312 94% 94% 93% 97% 94%
at Sope Creek. . . . . . . . . N/A N/A 96% 95% 92% 93%
at Spring Creek. . . . . . . . 1,180 90% 92% 93% 91% 91%
at Vinings . . . . . . . . . . 360 89% 94% 92% 96% 96%
at West Paces. . . . . . . . . 337 92% 91% 94% 95% 94%
at Towne Creek . . . . . . . . 150 93% N/A N/A N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
3,083 92% 94% 94% 93% 93%
------ ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
2000 1999
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 86% 86% 99% 95% 93%
at Centennial Park. . . . . . 170 84% 85% 92% 94% 89%
at Crown Colony . . . . . . . N/A N/A N/A 87% 92% 91%
at Lexington Farms. . . . . . 404 91% 84% 89% 94% 91%
at Regents Center . . . . . . 424 92% 89% 94% 97% 97%
at Sherwood . . . . . . . . . N/A N/A N/A 93% 92% 91%
at Town Center. . . . . . . . 156 83% 83% 88% 92% 96%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,306 89% 86% 92% 94% 93%
------ ----- ----- ----- ----- ----- ----- ----- -----
INDIANAPOLIS, INDIANA
AMLI:
at Conner Farms . . . . . . . 300 94% 95% 94% 95% 96%
at Eagle Creek. . . . . . . . 240 94% 91% 91% 91% 94%
at Riverbend. . . . . . . . . 996 79% 77% 79% 91% 87%
------ ----- ----- ----- ----- ----- ----- ----- -----
1,536 84% 83% 84% 92% 90%
------ ----- ----- ----- ----- ----- ----- ----- -----
CHICAGO, ILLINOIS
AMLI:
at Park Sheridan. . . . . . . N/A N/A N/A 96% 96% 93%
at Poplar Creek . . . . . . . 196 99% 92% 93% 96% 90%
------ ----- ----- ----- ----- ----- ----- ----- -----
196 99% 92% 94% 96% 92%
------ ----- ----- ----- ----- ----- ----- ----- -----
12,576 91.7% 91.5% 92.2% 93.3% 92.4%
====== ===== ===== ===== ===== ===== ===== ===== =====
CO-INVESTMENT COMMUNITIES:
- --------------------------
ATLANTA, GA
AMLI:
at Barrett Lakes. . . . . . . 35% 446 96% 95% 95% 94% 94%
lease lease lease
at Northwinds . . . . . . . . 35% 800 96% 93% up up up
at Pleasant Hill. . . . . . . 40% 502 97% 98% 95% 93% 90%
at River Park . . . . . . . . 40% 222 93% 96% 95% 95% 93%
at Towne Creek. . . . . . . . N/A N/A N/A 95% 96% 96% 86%
at Willeo Creek . . . . . . . 30% 242 95% 93% 96% 99% 91%
at Windward Park. . . . . . . 45% 328 93% 95% 95% N/A N/A
------ ----- ----- ----- ----- ----- ----- ----- -----
2,540 95% 95% 95% 95% 91%
------ ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
2000 1999
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 97% 92% 96% 97% 96%
at Danada Farms . . . . . . . 10% 600 93% 96% 93% 94% 96%
at Fox Valley . . . . . . . . 25% 272 92% 91% 88% 92% 94%
at Prairie Court. . . . . . . N/A N/A N/A N/A N/A 97% 95%
at Willowbrook. . . . . . . . 40% 488 90% 90% 91% 96% 95%
at Windbrooke . . . . . . . . 15% 236 98% 99% 98% 97% 99%
------- ----- ----- ----- ----- ----- ----- ----- -----
2,188 94% 93% 93% 96% 96%
------- ----- ----- ----- ----- ----- ----- ----- -----
EASTERN KANSAS
AMLI:
at Regents Crest. . . . . . . 25% 368 86% 87% 92% 93% 93%
------- ----- ----- ----- ----- ----- ----- ----- -----
DALLAS, TX
AMLI: lease lease lease
at Deerfield. . . . . . . . . 25% 240 93% 98% up up up
at Fossil Creek . . . . . . . 25% 384 94% 95% 95% 96% 91%
at Oak Bend . . . . . . . . . 40% 426 90% 93% N/A N/A N/A
on the Parkway. . . . . . . . 25% 240 95% 93% 89% 92% 95%
at Prestonwood Hills. . . . . 45% 272 93% 92% 93% N/A N/A
on Timberglen . . . . . . . . 40% 260 94% 94% 97% 95% 92%
at Verandah . . . . . . . . . 35% 538 95% 97% 95% 93% 95%
------- ----- ----- ----- ----- ----- ----- ----- -----
2,360 93% 95% 94% 94% 94%
------- ----- ----- ----- ----- ----- ----- ----- -----
AUSTIN, TX
AMLI:
at Park Place . . . . . . . . N/A N/A N/A N/A 95% 96% 96%
lease
at Wells Branch . . . . . . . 25% 576 94% 92% 93% 89% up
------- ----- ----- ----- ----- ----- ----- ----- -----
576 94% 92% 94% 92% 96%
------- ----- ----- ----- ----- ----- ----- ----- -----
<PAGE>
2000 1999
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
- ------------------ ---------- ------- ----- ----- ----- ------ ----- ----- ------ ------
HOUSTON, TX
AMLI:
at Champions Centre . . . . . 15% 192 94% 93% 93% 92% 92%
at Champions Park . . . . . . 15% 246 96% 94% 91% 95% 85%
at Greenwood Forest . . . . . 15% 316 94% 95% 92% 96% 93%
Midtown . . . . . . . . . . . 45% 419 94% N/A N/A N/A N/A
------- ----- ----- ----- ----- ----- ----- ----- -----
1,173 94% 94% 92% 94% 90%
------- ----- ----- ----- ----- ----- ----- ----- -----
Total Co-Investment
Communities. . . . . . . . . . 9,205 93.9% 93.8% 93.8% 94.4% 93.6%
------- ----- ----- ----- ----- ----- ----- ----- -----
TOTAL. . . . . . . . . . . . . . 21,781 92.6% 92.4% 92.8% 93.7% 92.8%
======= ===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K have been filed during the quarter ended
March 31, 2000. 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, 2000 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, 2000 By: /s/ GREGORY T. MUTZ
-----------------------------------
Gregory T. Mutz
Chairman of the Board of Trustees
Date: May 12, 2000 By: /s/ ALLAN J. SWEET
-----------------------------------
Allan J. Sweet
President and Trustee
Date: May 12, 2000 By: /s/ ROBERT J. CHAPMAN
-----------------------------------
Robert J. Chapman
Principal Financial Officer
Date: May 12, 2000 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, 2000 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-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 2,361
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 759,979
<DEPRECIATION> 87,593
<TOTAL-ASSETS> 847,848
<CURRENT-LIABILITIES> 0
<BONDS> 398,867
0
40
<COMMON> 170
<OTHER-SE> 373,761
<TOTAL-LIABILITY-AND-EQUITY> 847,848
<SALES> 0
<TOTAL-REVENUES> 30,825
<CGS> 0
<TOTAL-COSTS> 22,192
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,642
<INCOME-PRETAX> 25,928
<INCOME-TAX> 0
<INCOME-CONTINUING> 25,928
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 25,928
<EPS-BASIC> 1.42
<EPS-DILUTED> 1.23
</TABLE>
EXHIBIT 99
- ----------
AMLI RESIDENTIAL PROPERTIES TRUST
FINANCIAL AND OPERATING DATA
March 31, 2000
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, 2000 and 1999
8. Same Community Comparison - Wholly-Owned
and Co-Investments
- three months ended March 31, 2000 and 1999
9. Property Information
10. Property EBITDA
11. Development Activities
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
----------------------
2000 1999
--------- --------
REVENUES
- --------
Property revenues:
Rental . . . . . . . . . . . . . . . . . . . $ 26,274 26,695
Other. . . . . . . . . . . . . . . . . . . . 1,537 1,569
-------- --------
Total Property Revenues. . . . . . . . 27,811 28,264
-------- --------
Property operating expenses. . . . . . . . . . (9,843) (10,055)
Property management fees . . . . . . . . . . . (695) (707)
-------- --------
Property expenses. . . . . . . . . . . (10,538) (10,762)
Operating expense ratio. . . . . . . . . . . . 37.9% 38.1%
-------- --------
Net operating income . . . . . . . . . 17,273 17,502
-------- --------
OTHER INCOME
- ------------
Share of Service Cos. FFO (1)(2) . . . . . . (275) (274)
Interest from Service Companies (3). . . . . 1,210 1,013
Other interest . . . . . . . . . . . . . . . 355 327
Share of partnerships FFO (4). . . . . . . . 2,873 1,907
Fee income - acquisitions and
dispositions . . . . . . . . . . . . . . . 110 --
Fee income - developments. . . . . . . . . . 385 320
Fee income - asset management. . . . . . . . 148 151
Other (6). . . . . . . . . . . . . . . . . . -- 2
-------- --------
Total other income . . . . . . . . . . 4,806 3,446
General and administrative . . . . . . . . . . (928) (1,046)
-------- --------
EBITDA . . . . . . . . . . . . . . . . . . . . 21,151 19,902
-------- --------
Interest expense . . . . . . . . . . . . . . . (5,642) (5,316)
Amortization of deferred costs . . . . . . . . (118) (111)
-------- --------
FUNDS FROM OPERATIONS (FFO) (6). . . . . . . . $ 15,391 14,475
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
FUNDS FROM OPERATIONS - CONTINUED
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
----------------------
2000 1999
--------- --------
Capital expenditures paid from FFO (5) . . . . (793) (968)
Other - share of Co-investments Cap exp. . . . (93) (89)
-------- --------
Funds available for distribution (FAD) . . . . $ 14,505 13,418
======== ========
FFO per share. . . . . . . . . . . . . . . . . $ 0.63 0.59
FAD per share. . . . . . . . . . . . . . . . . $ 0.59 0.55
Dividend per share . . . . . . . . . . . . . . $ 0.46 0.45
Dividend as a % of FFO . . . . . . . . . . . . 73.5% 76.2%
Dividend as a % of FAD . . . . . . . . . . . . 78.0% 82.2%
======== ========
NOTES:
(1) Includes share of income before goodwill amortization of $104 and
$100 for the three months ended March 31, 2000 and 1999, respectively.
(2) Includes $149 gain on sale of non-residential land by a Service
Company subsidiary for the three months ended March 31, 2000.
(3) Interest on 13% notes receivable and working capital advances.
(4) Includes share of income and share of depreciation of $1,688 and
$1,157 for the three months ended March 31, 2000 and 1999, respectively.
(5) Rehab costs of approximately $1,351 and $547 for the three months
ended March 31, 2000 and 1999, respectively, are not reflected in cap ex
paid from FFO.
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS
Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED
MARCH 31,
----------------------
2000 1999
--------- --------
REVENUES
- --------
Property revenues:
Rental . . . . . . . . . . . . . . . . . . . $ 26,274 26,695
Other. . . . . . . . . . . . . . . . . . . . 1,537 1,569
Interest and share of income (loss)
from Service Cos.. . . . . . . . . . . . . . 831 639
Other interest . . . . . . . . . . . . . . . . 355 327
Share of income from co-investment
partnerships . . . . . . . . . . . . . . . . 1,185 750
Fees from co-investment partnerships
and other. . . . . . . . . . . . . . . . . . 643 473
-------- --------
Total revenues . . . . . . . . . . . . 30,825 30,453
-------- --------
EXPENSES
- --------
Personnel. . . . . . . . . . . . . . . . . . . 2,743 2,643
Advertising and promotion. . . . . . . . . . . 521 619
Utilities. . . . . . . . . . . . . . . . . . . 773 1,022
Building repairs and maintenance . . . . . . . 1,381 1,292
Landscaping and grounds maintenance. . . . . . 554 594
Real estate taxes. . . . . . . . . . . . . . . 3,342 3,420
Insurance. . . . . . . . . . . . . . . . . . . 230 200
Other operating expenses . . . . . . . . . . . 299 265
Property management fees . . . . . . . . . . . 695 707
Interest, net of capitalized . . . . . . . . . 5,642 5,316
Amortization of deferred costs . . . . . . . . 118 111
Depreciation of real property. . . . . . . . . 3,511 3,529
Depreciation of personal property. . . . . . . 1,455 1,261
General and administrative . . . . . . . . . . 928 1,046
-------- --------
Total expenses . . . . . . . . . . . . 22,192 22,025
-------- --------
Non-recurring item - gains on sale of
properties (1) . . . . . . . . . . . . . . . 22,316 --
-------- --------
Income before taxes, minority interest
and extraordinary item . . . . . . . . . . . 30,949 8,428
Minority interest. . . . . . . . . . . . . . . 5,021 1,148
-------- --------
Income before extraordinary items. . . . . . . 25,928 7,280
Extraordinary items, net of
minority interest. . . . . . . . . . . . . . -- --
-------- --------
Net income . . . . . . . . . . . . . . . . . . 25,928 7,280
Net income allocable to preferred shares . . . 1,829 1,873
-------- --------
Net income allocable to common shares. . . . . $ 24,099 5,407
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
STATEMENTS OF OPERATIONS - CONTINUED
THREE MONTHS ENDED
MARCH 31,
----------------------
2000 1999
--------- --------
INCOME PER COMMON SHARE:
- -----------------------
Before extraordinary items . . . . . . . . . . $ 1.42 0.32
Extraordinary item . . . . . . . . . . . . . . $ 0.00 0.00
-------- --------
Income per common share. . . . . . . . . . . . $ 1.42 0.32
======== ========
Income per common share - diluted. . . . . . . $ 1.23 0.32
======== ========
FUNDS FROM OPERATIONS
- ---------------------
Income before taxes, minority interest and
extraordinary item . . . . . . . . . . . . . $ 30,949 8,428
-------- --------
Depreciation of real property. . . . . . . . . 3,511 3,529
Depreciation of personal property. . . . . . . 1,455 1,261
Non-recurring item - gains on sale
of properties. . . . . . . . . . . . . . . . (22,316) --
Share of Co-investments depreciation . . . . . 1,688 1,157
Share of Service Company amortization of
goodwill . . . . . . . . . . . . . . . . . . 104 100
-------- --------
Funds from operations (FFO). . . . . . . . . . $ 15,391 14,475
FFO per share. . . . . . . . . . . . . . . . . $ 0.63 0.59
======== ========
Capital expenditures paid from FFO . . . . . . $ (793) (968)
Other - Share Co-investments Cap exp . . . . . (93) (89)
-------- --------
Funds available for distribution (FAD) . . . . $ 14,505 13,418
FAD per share. . . . . . . . . . . . . . . . . $ 0.59 0.55
-------- --------
Dividends per share. . . . . . . . . . . . . . $ 0.46 0.45
======== ========
Dividends as a % of FFO. . . . . . . . . . . . 73.5% 76.2%
Dividends as a % of FAD. . . . . . . . . . . . 78.0% 82.2%
======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
CONDENSED BALANCE SHEETS
Unaudited - Dollars in thousands except per share data
Mar. 31, Dec. 31,
2000 1999
--------- --------
ASSETS
- ------
Rental apartments
Land . . . . . . . . . . . . . . . . . . . . $ 93,442 87,903
Depreciable property . . . . . . . . . . . . 606,378 566,509
-------- --------
699,820 654,412
Less accumulated depreciation. . . . . . . . (87,593) (82,626)
-------- --------
612,227 571,786
Rental apartments held for sale,
net of accumulated depreciation. . . . . . . -- 19,784
Properties under development . . . . . . . . . 60,159 47,314
Investments in partnerships. . . . . . . . . . 118,291 107,518
Cash and cash equivalents. . . . . . . . . . . 2,361 2,318
Security deposits. . . . . . . . . . . . . . . 1,576 1,541
Deferred costs, net. . . . . . . . . . . . . . 3,223 3,377
Notes receivable and advances
to Service Companies . . . . . . . . . . . . 39,121 35,717
Other assets . . . . . . . . . . . . . . . . . 10,890 15,263
-------- --------
Total assets . . . . . . . . . . . . . $847,848 804,618
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Debt . . . . . . . . . . . . . . . . . . . . . $398,867 369,541
Accrued interest payable . . . . . . . . . . . 1,759 1,743
Accrued real estate taxes. . . . . . . . . . . 5,717 9,999
Construction costs payable . . . . . . . . . . 1,075 2,068
Security deposits and prepaid rents. . . . . . 2,936 2,807
Other liabilities. . . . . . . . . . . . . . . 2,816 3,606
-------- --------
Total liabilities. . . . . . . . . . . 413,170 389,764
-------- --------
Minority interest. . . . . . . . . . . . . . . 60,707 57,813
-------- --------
Shareholders' equity
Preferred shares, $.01 par value . . . . . . 40 40
Shares of beneficial interest,
$.01 par value . . . . . . . . . . . . . . 170 170
Additional paid-in capital . . . . . . . . . 422,614 421,989
Employees and trustees notes . . . . . . . . (11,960) (12,000)
Retained earnings. . . . . . . . . . . . . . 126,262 100,334
Dividends paid . . . . . . . . . . . . . . . (163,155) (153,492)
-------- --------
Total shareholders' equity . . . . . . 373,971 357,041
-------- --------
Total liabilities and
shareholders' equity . . . . . . . . $847,848 804,618
======== ========
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
Selected Quarterly Financial Information
December 31, 2000
(dollars in thousands except for share data)
<CAPTION>
Quarter ending
-----------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun 30, Mar. 31,
2000 1999 1999 1999 1999
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Debt $ 398,867 369,541 410,177 382,320 380,475
Debt including share of Co-investment debt $ 510,230 468,609 502,770 458,682 454,348
Total Shares and Units Outstanding (1) 24,544,475 24,538,654 24,529,449 24,524,849 24,464,805
Value per Common Share - end of quarter $ 20.50 20.1875 21.00 22.375 20.625
Total Equity (Market Value) -
end of quarter $ 503,162 495,374 515,118 548,743 504,587
Market Capitalization $ 902,029 864,915 925,295 931,063 885,062
Market Capitalization including
share of Co-investment debt $1,013,392 963,983 1,017,888 1,007,425 958,935
Market Capitalization including
Co-investment at completed cost $1,678,237 1,610,307 1,679,212 1,554,018 1,431,730
========== ========== ========== ========== ==========
Total Revenues (2) $ 30,825 31,843 33,851 32,961 30,453
EBITDA (3) $ 21,151 21,961 22,283 22,044 19,902
FFO $ 15,391 16,412 16,370 16,322 14,475
FAD $ 14,505 15,275 15,232 14,857 13,418
Dividends Paid $ 11,290 11,287 11,038 11,011 11,004
Debt service (net of capitalized interest) $ 6,316 6,075 6,497 6,280 5,995
Interest Expense $ 5,642 5,439 5,821 5,625 5,316
G & A Expense $ 928 823 1,225 948 1,046
Total Shares and Units Outstanding -
Wtd. Avg. 24,541,971 24,534,912 24,527,610 24,467,931 24,455,709
========== ========== ========== ========== ==========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
Selected Quarterly Financial Information - CONTINUED
December 31, 2000
(dollars in thousands except for share data)
Quarter ending
-----------------------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun 30, Mar. 31,
2000 1999 1999 1999 1999
---------- ---------- ---------- ---------- ----------
Interest Coverage Ratio 3.75 4.04 3.83 3.92 3.74
Debt as % of Total Market
Capitalization 44.22% 42.73% 44.33% 41.06% 42.99%
Debt (incl. Share of Co-investment
debt) as % of Total Market Cap 50.35% 48.61% 49.39% 45.53% 47.38%
EBITDA as % of Total Market
Capitalization 9.38% 10.16% 9.63% 9.47% 8.99%
FFO as % of Total Market Equity 12.24% 13.25% 12.71% 11.90% 11.47%
G&A as % of Total Market Capitalization 0.41% 0.38% 0.53% 0.41% 0.47%
G&A as % of Total Revenues 3.01% 2.58% 3.62% 2.88% 3.43%
Dividends as % of FFO (4) 73.5% 68.9% 69.1% 67.7% 76.2%
Dividends as % of FAD (4) 78.0% 74.0% 74.3% 74.3% 82.2%
========== ========== ========== ========== ==========
Apartment Units - In Operation
Wholly Owned 12,576 12,515 13,288 13,032 13,032
Co-investments 9,205 8,936 8,058 7,583 7,007
---------- ---------- ---------- ---------- ----------
21,781 21,451 21,346 20,615 20,039
---------- ---------- ---------- ---------- ----------
Apartment Units - Under Development or
in lease up
Wholly Owned 200 200 200 416 1,246
Co-investments 4,098 4,098 5,138 4,306 3,136
---------- ---------- ---------- ---------- ----------
4,298 4,298 5,338 4,722 4,382
---------- ---------- ---------- ---------- ----------
Total Units 26,079 25,749 26,684 25,337 24,421
========== ========== ========== ========== ==========
<FN>
(1) Includes 3,975,000 preferred shares convertible to common shares.
(2) Excluding gains on sales of completed rental properties.
(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, 2000
(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 $167,867 42.1% Fixed 7.63% 6.9
Tax-exempt Variable Rate (1) 50,250 12.6% Variable 5.39% 2.6
Credit Facilities (2) 175,000 43.9% Variable 7.15% 2.5
Service Companies 5,750 1.4% Fixed 9.22% 2.4
-------- ------ ----- ---
Total $398,867 100.0% 7.16% 4.4
======== ====== ===== ===
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 $279,230 54.7% Fixed 7.63% 7.0
Tax-exempt Variable Rate (1) 50,250 9.8% Variable 5.39% 2.6
Credit Facilities (2) 175,000 34.4% Variable 7.15% 2.5
Service Companies 5,750 1.1% Fixed 9.22% 2.4
-------- ------ ----- ---
Total $510,230 100.0% 7.26% 5.0
======== ====== ===== ===
<FN>
(1) Maturity Date shown is expiration date of Credit Enhancement. Bonds mature in 2024.
(2) $75,000 has been swapped to a fixed rate ($20,000 maturing in November 2002, $30,000 maturing in February 2003 and
$25,000 maturing in September 2004). 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, 2000
Unaudited - dollars in thousands
<CAPTION>
There- % to
2000 2001 2002 2003 2004 after Total Total
-------- -------- -------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Rate Mortgages $ 2,136 3,039 3,273 60,117 8,933 90,369 167,867 42.1%
Tax Exempt Bonds* 50,250 50,250 12.6%
Wachovia/First Chicago
Line of Credit** 175,000 175,000 43.9%
Other 750 5,000 5,750 1.4%
-------- -------- -------- -------- -------- -------- -------- -------
Total Loans $ 2,886 3,039 228,523 65,117 8,933 90,369 398,867 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 0.7% 0.8% 57.3% 16.3% 2.2% 22.7% 100.0% 78.2%
======== ======== ======== ======== ======== ======== ======== =======
SHARE OF CO-INVESTMENT DEBT
Nationwide Life Ins. -
Greenwood Forest (15%) 14 20 1,679 0 0 0 1,713 1.5%
Lincoln National Ins. -
Champions Park (15%) 17 24 1,259 0 0 0 1,300 1.2%
Prudential Ins. -
Champions Centre (15%) 8 12 955 0 0 0 975 0.9%
Allstate Life Ins. -
Windbrooke (15%) 14 20 1,658 0 0 0 1,692 1.5%
CIGNA - Chevy Chase (33%) 143 202 216 8,770 0 0 9,331 8.4%
Northwestern Mutual Life
Ins. - Willowbrook (40%) 123 175 189 8,909 0 0 9,396 8.4%
Phoenix Mutual -
Willeo Creek (30%) 43 61 65 2,688 0 0 2,857 2.6%
Northwestern Mutual Life
Ins. - Pleasant Hill (40%) 66 96 106 116 127 5,459 5,970 5.4%
Northwestern Mutual Life
Ins. - Barrett Lakes (35%) 58 83 91 99 108 5,309 5,748 5.1%
Erie Insurance -
River Park (40%) 36 52 56 60 65 3,272 3,541 3.2%
Prudential Ins. -
Amli at Danada (10%) 19 27 29 31 33 2,288 2,427 2.2%
Phoenix Home Life -
Amli at Verandah (35%) 66 94 102 110 5,481 0 5,853 5.2%
Northwestern Mutual Life
Ins. - Northwinds (35%) 15 95 103 112 122 10,544 10,991 9.9%
Northwestern Mutual Life
Ins. - Regents Crest (25%) 53 76 82 3,709 0 0 3,920 3.5%
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEBT MATURITIES - CONTINUED
There- % to
2000 2001 2002 2003 2004 after Total Total
-------- -------- -------- -------- -------- -------- -------- -------
Northwestern Mutual Life
Ins. - Parkway (25%) 34 49 52 56 60 2,398 2,649 2.4%
Jackson National Life
Ins. - Timberglen (40%) 32 45 49 52 2,463 0 2,641 2.4%
Northwestern Mutual Life -
Deerfield (25%) 21 30 33 36 39 2,986 3,145 2.8%
AMI Capital, Inc. -
Lost Mountain (75%) 3 38 41 44 47 3,684 3,857 3.5%
Amli Residential -
Summit Ridge (25%) 0 0 2,452 0 0 0 2,452 2.2%
Northwestern Mutual Life
Ins. - Prestonwood Hills
(45.3%) 39 57 61 65 70 4,958 5,250 4.7%
Northwestern Mutual Life
Ins. - Windward Park
(45.3%) 59 87 93 101 108 7,755 8,203 7.4%
FNMA - Oakbend (40%) 49 71 76 83 89 7,150 7,518 6.7%
Northwestern Mutual Life
Ins. - Midtown (45.3%) 66 98 105 114 123 9,428 9,934 8.9%
-------- -------- -------- -------- -------- -------- -------- -------
Total Share of
Co-investment Loans $ 978 1,512 9,552 25,155 8,935 65,231 111,363 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 0.9% 1.4% 8.6% 22.6% 8.0% 58.5% 100.0% 21.8%
======== ======== ======== ======== ======== ======== ======== =======
Total Including Share
of Co-Investment Debt $ 3,864 4,551 238,075 90,272 17,868 155,600 510,230 100.0%
======== ======== ======== ======== ======== ======== ======== =======
Percent to Total 0.7% 0.9% 46.7% 17.7% 3.5% 30.5% 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.
** In October, the Unsecured Line of Credit maturity was extended to Oct. 2002 with two one-year extensions.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES)
THREE MONTHS ENDED MARCH 31, 2000 VS. THREE MONTHS ENDED MARCH 31, 1999
(Excludes all properties acquired or stabilized after 1/1/99)
<CAPTION>
1/1/00-3/31/00 1/1/99-3/31/99
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 4,560 93.1% 1.3% 91.9%
Atlanta 2,677 92.2% -0.7% 92.8%
Austin 1,289 95.5% 2.9% 92.8%
Indianapolis 1,536 82.2% -7.6% 89.0%
Kansas 1,306 86.8% -5.6% 91.9%
Chicago 196 96.3% 0.9% 95.4%
------ ----- ----- -----
Weighted Average 91.1% -0.9% 91.9%
===== ===== =====
Total 11,564
======
WEIGHTED AVG.
RENTAL RATE
- -------------
Dallas $ 721 0.7% $716
Atlanta $ 818 3.2% $793
Austin $ 751 5.8% $710
Indianapolis $ 673 2.0% $660
Kansas $ 820 2.4% $801
Chicago $1,013 7.5% $942
------ ---- ----
Weighted Average $ 757 2.4% $739
==== ==== ====
TOTAL PROPERTY
REVENUES Per Month Per Month
- --------------- ---------- ----------
Dallas $ 9,666,147 $ 707 $ 0.81 2.2% $ 9,458,496 $ 691 $ 0.79
Atlanta $ 6,419,546 $ 799 $ 0.84 3.4% $ 6,210,946 $ 773 $ 0.82
Austin $ 2,950,647 $ 763 $ 0.98 8.3% $ 2,725,215 $ 705 $ 0.90
Indianapolis $ 2,753,883 $ 598 $ 0.66 -4.0% $ 2,869,988 $ 623 $ 0.69
Kansas $ 3,004,116 $ 767 $ 0.77 -1.8% $ 3,059,220 $ 781 $ 0.79
Chicago $ 595,060 $1,012 $ 1.12 8.7% $ 547,265 $ 931 $ 1.03
----------- ------ ------ ----- ----------- ------ ------
Total $25,389,399 $ 732 $ 0.82 2.1% $24,871,130 $ 717 $ 0.80
=========== ====== ===== ===== =========== ====== ======
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/99)
1/1/00-3/31/00 1/1/99-3/31/99
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 4,031,821 $3,537 $4.06 3.1% $3,909,412 $3,429 $3.94
Atlanta $ 2,149,430 $3,212 $3.39 6.0% $2,028,074 $3,030 $3.20
Austin $ 1,191,938 $3,699 $4.73 12.0% $1,064,262 $3,303 $4.22
Indianapolis $ 1,085,200 $2,826 $3.14 0.8% $1,077,115 $2,805 $3.12
Kansas $ 981,965 $3,008 $3.02 -6.5% $1,050,620 $3,218 $3.24
Chicago $ 225,465 $4,601 $5.08 -10.2% $ 250,982 $5,122 $5.65
------------ ------ ----- ----- ---------- ------ -----
Total $ 9,665,818 $3,343 $3.73 3.0% $9,380,465 $3,245 $3.62
============ ====== ===== ===== ========== ====== =====
Operating Efficiency 38.1% 37.7%
============ ==========
</TABLE>
<TABLE>
<CAPTION>
PER MONTH PER MONTH
--------- ----------
NOI 2000% 1999%
- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dallas 58.3% 58.7% $ 5,634,326 $412 $0.47 1.5% $ 5,549,084 $406 $0.47
Atlanta 66.5% 67.3% $ 4,270,116 $532 $0.56 2.1% $ 4,182,873 $521 $0.55
Austin 59.6% 60.9% $ 1,758,708 $455 $0.58 5.9% $ 1,660,953 $430 $0.55
Indianapolis 60.6% 62.5% $ 1,668,683 $362 $0.40 -6.9% $ 1,792,872 $389 $0.43
Kansas 67.3% 65.7% $ 2,022,151 $516 $0.52 0.7% $ 2,008,600 $513 $0.52
Chicago 62.1% 54.1% $ 369,595 $629 $0.69 24.7% $ 296,283 $504 $0.56
----- ----- ------------ ---- ----- ----- ----------- ---- -----
Total 61.9% 62.3% $ 15,723,580 $453 $0.51 1.5% $15,490,666 $447 $0.50
===== ===== ============ ==== ===== ===== =========== ==== =====
Operating Margin 61.9% 62.3%
============ ===========
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 380,393 $ 334 $0.38 27.1% $ 299,368 $263 $0.30
Atlanta $ 152,058 $ 227 $0.24 46.8% $ 103,551 $155 $0.16
Austin $ 103,214 $ 320 $0.41 -65.4% $ 298,609 $927 $1.18
Indianapolis $ 43,719 $ 114 $0.13 -32.6% $ 64,911 $169 $0.19
Kansas $ 60,124 $ 184 $0.19 38.7% $ 43,335 $133 $0.13
Chicago $ 18,346 $ 374 $0.41 14.4% $ 16,039 $327 $0.36
------------ ------ ----- ------ ---------- ---- -----
Total $ 757,854 $ 262 $0.29 -8.2% $ 825,811 $286 $0.32
============ ====== ===== ====== ========== ==== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/99)
<CAPTION>
3/1/00-3/31/00 3/1/99-3/31/99
--------------------------------- % --------------------------------
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 $ 531,693 $ 466 $0.54 31.8% $ 403,484 $ 354 $0.41
Atlanta $ 325,897 $ 487 $0.51 20.8% $ 269,863 $ 403 $0.43
Austin $ 166,501 $ 517 $0.66 43.9% $ 115,676 $ 359 $0.46
Indianapolis $ 144,023 $ 375 $0.42 -19.4% $ 178,645 $ 465 $0.52
Kansas $ 87,247 $ 267 $0.27 -14.4% $ 101,979 $ 312 $0.31
Chicago $ 30,428 $ 621 $0.69 -8.1% $ 33,111 $ 676 $0.75
------------ ------ ----- ------ ---------- ------ -----
Total $ 1,285,789 $ 445 $0.50 16.6% $1,102,757 $ 381 $0.43
============ ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,451,563 $1,273 $1.46 -1.7% $1,476,753 $1,295 $1.49
Atlanta $ 504,150 $ 753 $0.79 -0.4% $ 506,064 $ 756 $0.80
Austin $ 445,475 $1,382 $1.77 30.5% $ 341,435 $1,060 $1.35
Indianapolis $ 306,540 $ 798 $0.89 9.9% $ 279,011 $ 727 $0.81
Kansas $ 267,528 $ 819 $0.82 -15.5% $ 316,635 $ 970 $0.98
Chicago $ 101,239 $2,066 $2.28 -23.3% $ 132,000 $2,694 $2.97
------------ ------ ----- ----- ---------- ------ -----
Total $ 3,076,495 $1,064 $1.19 0.8% $3,051,898 $1,056 $1.18
============ ====== ===== ===== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES)
THREE MONTHS ENDED MARCH 31, 2000 VS. THREE MONTHS ENDED MARCH 31, 1999
(Excludes all properties acquired or stabilized after 1/1/99)
<CAPTION>
1/1/00-3/31/00 1/1/99-3/31/99
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 5,982 93.7% 1.6% 92.2%
Atlanta 4,089 93.5% 1.8% 91.8%
Austin 1,289 95.5% 2.9% 92.8%
Houston 754 95.2% 4.3% 91.3%
Indianapolis 1,536 82.2% -7.6% 89.0%
Kansas 1,674 86.7% -6.4% 92.7%
Chicago 2,112 94.4% -1.5% 95.9%
------ ----- ----- -----
Weighted Average 92.2% -0.1% 92.3%
===== ===== =====
Total 17,436
======
WEIGHTED AVG.
RENTAL RATE
- -------------
Dallas $ 723 0.6% $719
Atlanta $ 831 2.6% $810
Austin $ 751 5.8% $710
Houston $ 730 -4.6% $765
Indianapolis $ 673 2.0% $660
Kansas $ 810 2.4% $791
Chicago $1,007 4.4% $965
------ ---- ----
Weighted Average $ 789 2.1% $773
====== ==== ====
TOTAL PROPERTY
REVENUES Per Month Per Month
- --------------- ---------- ----------
Dallas $12,828,750 $ 715 $ 0.83 2.3% $12,538,393 $ 699 $ 0.81
Atlanta $10,109,856 $ 824 $ 0.84 5.3% $ 9,599,683 $ 783 $ 0.79
Austin $ 2,950,647 $ 763 $ 0.98 8.3% $ 2,725,215 $ 705 $ 0.90
Houston $ 1,672,020 $ 739 $ 0.80 0.5% $ 1,664,171 $ 736 $ 0.80
Indianapolis $ 2,753,883 $ 598 $ 0.66 -4.0% $ 2,869,988 $ 623 $ 0.69
Kansas $ 3,808,536 $ 758 $ 0.77 -2.5% $ 3,907,224 $ 778 $ 0.79
Chicago $ 6,485,157 $1,024 $ 1.19 5.0% $ 6,179,007 $ 975 $ 1.14
----------- ------ ------ ----- ----------- ------ ------
Total $40,608,849 $ 776 $ 0.86 2.8% $39,483,682 $ 755 $ 0.84
=========== ====== ====== ===== =========== ====== ======
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/99)
1/1/00-3/31/00 1/1/99-3/31/99
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED)
- --------------------------- ------------ ------------
Dallas $ 5,428,077 $3,630 $4.20 3.5% $ 5,246,841 $3,508 $4.06
Atlanta $ 3,450,781 $3,376 $3.43 7.0% $ 3,225,505 $3,155 $3.20
Austin $ 1,191,938 $3,699 $4.73 12.0% $ 1,064,262 $3,303 $4.22
Houston $ 674,695 $3,579 $3.87 -8.5% $ 737,604 $3,913 $4.23
Indianapolis $ 1,085,200 $2,826 $3.14 0.8% $ 1,077,115 $2,805 $3.12
Kansas $ 1,277,459 $3,052 $3.11 -4.4% $ 1,336,229 $3,193 $3.25
Chicago $ 2,098,049 $3,974 $4.63 -0.6% $ 2,109,744 $3,996 $4.66
------------ ------ ----- ----- ----------- ------ -----
Total $ 15,206,199 $3,488 $3.86 2.8% $14,797,300 $3,395 $3.76
============ ====== ===== ===== =========== ====== =====
Operating Efficiency 37.4% 37.5%
============ ==========
</TABLE>
<TABLE>
<CAPTION>
PER MONTH PER MONTH
--------- ----------
NOI 2000% 1999%
- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dallas 57.7% 58.2% $ 7,400,673 $412 $0.48 1.5% $ 7,291,552 $406 $0.47
Atlanta 65.9% 66.4% $ 6,659,075 $543 $0.55 4.5% $ 6,374,178 $520 $0.53
Austin 59.6% 60.9% $ 1,758,708 $455 $0.58 5.9% $ 1,660,953 $430 $0.55
Houston 59.6% 55.7% $ 997,325 $441 $0.48 7.6% $ 926,567 $410 $0.44
Indianapolis 60.6% 62.5% $ 1,668,683 $362 $0.40 -6.9% $ 1,792,872 $389 $0.43
Kansas 66.5% 65.8% $ 2,531,077 $504 $0.51 -1.6% $ 2,570,995 $512 $0.52
Chicago 67.6% 65.9% $ 4,387,108 $692 $0.81 7.8% $ 4,069,264 $642 $0.75
----- ----- ------------ ---- ----- ----- ----------- ---- -----
Total 62.6% 62.5% $ 25,402,650 $486 $0.54 2.9% $24,686,381 $472 $0.52
===== ===== ============ ==== ===== ===== =========== ==== =====
Operating Margin 62.6% 62.5%
============ ===========
<PAGE>
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES) - CONTINUED
(Excludes all properties acquired or stabilized after 1/1/99)
1/1/00-3/31/00 1/1/99-3/31/99
--------------------------------- % --------------------------------
Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft
-------- -------- ---------- ------ ---------- -------- ---------
CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED)
- -------------------- ------------ ------------
Dallas $ 465,400 $ 311 $0.36 21.8% $ 382,140 $256 $0.30
Atlanta $ 185,139 $ 181 $0.18 39.2% $ 132,990 $130 $0.13
Austin $ 103,214 $ 320 $0.41 -65.4% $ 298,609 $927 $1.18
Houston $ 19,471 $ 103 $0.11 -51.6% $ 40,237 $213 $0.23
Indianapolis $ 43,719 $ 114 $0.13 -32.6% $ 64,911 $169 $0.19
Kansas $ 75,913 $ 181 $0.18 53.0% $ 49,604 $119 $0.12
Chicago $ 131,548 $ 249 $0.29 -26.1% $ 178,115 $337 $0.39
------------ ------ ----- ------ ---------- ---- -----
Total $ 1,024,403 $ 235 $0.26 -10.7% $1,146,605 $263 $0.29
============ ====== ===== ====== ========== ==== =====
REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED)
- ----------------------- ------------ ------------
Dallas $ 701,215 $ 469 $0.54 31.4% $ 533,706 $ 357 $0.41
Atlanta $ 453,161 $ 443 $0.45 13.0% $ 400,900 $ 392 $0.40
Austin $ 166,501 $ 517 $0.66 43.9% $ 115,676 $ 359 $0.46
Houston $ 45,371 $ 241 $0.26 19.6% $ 37,942 $ 201 $0.22
Indianapolis $ 144,023 $ 375 $0.42 -19.4% $ 178,645 $ 465 $0.52
Kansas $ 107,624 $ 257 $0.26 -13.0% $ 123,700 $ 296 $0.30
Chicago $ 274,797 $ 520 $0.61 -2.4% $ 281,549 $ 533 $0.62
------------ ------ ----- ------ ---------- ------ -----
Total $ 1,892,692 $ 434 $0.48 13.2% $1,672,118 $ 384 $0.42
============ ====== ===== ====== ========== ====== =====
REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED)
- ----------------- ------------ ------------
Dallas $ 1,965,316 $1,314 $1.52 0.3% $1,958,579 $1,310 $1.51
Atlanta $ 849,109 $ 831 $0.84 -0.6% $ 854,211 $ 836 $0.85
Austin $ 445,475 $1,382 $1.77 30.5% $ 341,435 $1,060 $1.35
Houston $ 280,160 $1,486 $1.61 -18.0% $ 341,485 $1,812 $1.96
Indianapolis $ 306,540 $ 798 $0.89 9.9% $ 279,011 $ 727 $0.81
Kansas $ 351,648 $ 840 $0.85 -12.6% $ 402,393 $ 962 $0.98
Chicago $ 798,527 $1,512 $1.76 -2.8% $ 821,499 $1,556 $1.81
------------ ------ ----- ----- ---------- ------ -----
Total $ 4,996,774 $1,146 $1.27 0.0% $4,998,613 $1,147 $1.27
============ ====== ===== ===== ========== ====== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
PROPERTY INFORMATION
As of March 31, 2000
<CAPTION>
Qtr ended
Mar 31, 2000
Approx- Average Qtr ended
imate Rental Rates March 31,
Number Rentable Average ------------- 2000
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 87/96/99 690 598,128 867 $735 $0.85 90.5%
at Bent Tree Dallas, TX 1997 1996 300 282,774 943 827 0.88 93.8%
at Bishop's Gate West Plano, TX 1997 1997 266 292,094 1,098 1,005 0.92 90.7%
at Chase Oaks Plano, TX 1994 1986 250 193,736 775 684 0.88 96.1%
at Gleneagles Dallas, TX 1988 87/97 590 520,357 882 716 0.81 92.6%
on the Green Ft. Worth, TX 1994 90/93 424 358,560 846 695 0.82 93.9%
at Nantucket Dallas, TX 1988 1986 312 222,208 712 576 0.81 97.2%
of North Dallas Dallas, TX 89/90 85/86 1,032 906,808 879 684 0.78 90.1%
on Rosemeade Dallas, TX 1990 1987 236 205,334 870 686 0.79 94.7%
at Valley Ranch Irving, TX 1990 1985 460 389,940 848 719 0.85 97.0%
----- --------- --- ---- ----- ------
Subtotal-Dallas/
Ft. Worth, TX 4,560 3,969,939 871 721 $0.83 92.9%
----- --------- --- ---- ----- ------
Atlanta, GA
- -----------
AMLI:
at Clairmont Atlanta, GA 1998 1988 288 229,335 796 807 1.01 96.2%
at Killian Farms Snellville, GA 1999 256 262,785 1,027 783 0.76 98.5%
at Park Creek Gainesville, GA 1998 200 195,146 976 777 0.80 92.5%
at Peachtree City Fayette County, GA 1998 312 305,756 980 928 0.95 95.9%
at Spring Creek Dunwoody, GA 85/86/
87/89 1,180 1,080,568 916 760 0.83 91.6%
at Vinings Atlanta, GA 92/97 1985 360 374,240 1,040 825 0.79 92.6%
at West Paces Atlanta, GA 1993 1992 337 353,700 1,050 948 0.90 90.6%
at Towne Creek Gainesville, GA 1989 150 121,722 811 623 0.77 93.8%
------ --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 3,083 2,923,252 948 806 0.85 93.2%
------ --------- ----- ---- ----- ------
<PAGE>
Qtr ended
Mar 31, 2000
Approx- Average Qtr ended
imate Rental Rates March 31,
Number Rentable Average ------------- 2000
Year Year of Area Unit Size Per Per Average
PROPERTIES Location Acquired Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy
- ---------- -------- -------- --------- ------ --------- --------- ---- ----- -----------
Austin, TX
- ----------
AMLI:
at the Arboretum Austin, TX 1986 1983 231 178,116 771 730 $0.95 96.3%
in Great Hills Austin, TX 1991 1985 344 257,984 750 738 0.98 97.0%
at Lantana Ridge Austin, TX 1997 1997 354 311,857 881 867 0.98 94.0%
at Martha's
Vineyard Austin, TX 1992 1986 360 260,380 723 663 0.92 96.1%
at Stonehollow Austin, TX 2000 1997 606 524,660 866 812 0.94 95.7%
----- --------- --- ---- ----- -----
Subtotal-
Austin, TX 1,895 1,532,997 809 771 0.95 95.7%
----- --------- --- ---- ----- -----
Eastern Kansas
- --------------
AMLI:
at Alvamar Lawrence, KS 1994 1989 152 125,800 828 700 $0.85 86.7%
at Centennial Overland Park, KS 1998 1998 170 204,858 1,205 960 0.80 86.2%
at Lexington Farms Overland Park, KS 1998 1998 404 392,693 972 803 0.83 88.2%
at Regents Center Overland Park, KS 1994 91/95/97 424 398,674 940 771 0.82 89.0%
at Town Center Overland Park, KS 1997 1997 156 176,914 1,134 961 0.85 83.9%
----- --------- ----- ----- ----- -----
Subtotal
-Eastern KS 1,306 1,298,939 995 820 0.82 87.5%
----- --------- ----- ----- ----- -----
Indianapolis, IN
- ----------------
AMLI:
at Conner Farms Indianapolis, IN 1997 1993 300 327,396 1,091 828 $0.76 94.9%
at Eagle Creek Indianapolis, IN 1998 1998 240 233,432 973 755 0.78 90.0%
at Riverbend Indianapolis, IN 92/93 83/85 996 820,712 824 607 0.74 75.7%
----- --------- ----- ---- ----- -----
Subtotal
-Indianapolis,
IN 1,536 1,381,540 899 673 0.75 81.7%
----- --------- ----- ---- ----- -----
<PAGE>
Qtr ended
Mar 31, 2000
Approx- Average Qtr ended
imate Rental Rates March 31,
Number Rentable Average ------------- 2000
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 Poplar Creek Schaumburg, IL 1997 1985 196 177,630 906 1,013 1.12 96.8%
----- ---------- ----- ----- ----- -----
TOTAL
WHOLLY OWNED
PROPERTIES 12,576 11,284,297 897 $758 $0.85 91.5%
====== ========== ==== ==== ===== =====
<PAGE>
Qtr ended
Mar 31, 2000
Approx- Average Qtr ended
imate Rental Rates March 31,
Number Rentable Average ------------- 2000
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 Barrett Lakes Cobb County, GA 1997 446 462,368 1,037 872 $0.84 95.8%
at Pleasant Hill Gwinnett County, GA 1996 502 501,816 1,000 804 0.80 98.0%
at River Park Norcross, GA 1997 222 226,632 1,021 930 0.91 95.8%
at Willeo Creek Rosewell, GA 1995 1989 242 297,302 1,229 856 0.70 93.3%
at Northwinds Alpharetta, GA 1999 800 818,432 1,023 886 0.87 93.9%
at Windward Park Alpharetta, GA 1999 1999 328 354,900 1,082 908 0.84 94.2%
----- --------- ----- ---- ----- ------
Subtotal-
Atlanta, GA 2,540 2,661,450 1,048 871 0.83 95.2%
----- --------- ----- ---- ----- ------
Chicago, IL
- -----------
AMLI:
at Chevy Chase Buffalo Grove, IL 1996 1988 592 480,820 812 1,030 $1.27 94.4%
at Danada Wheaton, IL 1997 89/91 600 521,499 869 975 1.12 96.9%
at Fox Valley Aurora, IL 1998 272 269,237 990 965 0.97 90.2%
at Willowbrook Willowbrook, IL 1996 1987 488 418,404 857 989 1.15 92.4%
at Windbrooke Buffalo Grove, IL 1995 1987 236 213,160 903 1,061 1.17 96.9%
----- --------- --- ----- ----- -----
Subtotal-
Chicago, IL 2,188 1,903,120 870 1,001 $1.15 94.4%
----- --------- --- ----- ----- -----
Eastern Kansas
- --------------
AMLI:
at Regents Crest Overland Park, KS 1997 1997 368 346,632 942 772 0.82 86.2%
----- --------- --- ---- ----- -----
<PAGE>
Qtr ended
Mar 31, 2000
Approx- Average Qtr ended
imate Rental Rates March 31,
Number Rentable Average ------------- 2000
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 Deerfield Ft. Worth, TX 1999 240 238,972 996 861 0.86 96.4%
at Fossil Creek Ft. Worth, TX 1998 384 384,358 1,001 811 0.81 95.8%
at Oakbend Lewisville, TX 1997 426 382,690 898 777 0.86 92.7%
on the Parkway Dallas, TX 1999 240 225,248 939 862 0.92 94.1%
at Prestonwood
Hills Dallas, TX 1999 1997 272 245,696 903 843 0.93 93.9%
on Timberglen Dallas, TX 1990 1985 260 201,198 774 628 0.81 91.5%
at Varandah Arlington, TX 1997 86/91 538 394,304 733 664 0.91 96.9%
----- --------- --- ---- ----- -----
Subtotal -
Dallas/
Ft. Worth, TX 2,360 2,072,466 878 765 0.87 94.7%
----- --------- --- ---- ----- -----
Austin, TX
- ----------
AMLI:
at Wells Branch Austin, TX 1999 576 554,582 963 850 0.88 93.6%
----- --------- --- ---- ----- -----
Houston, TX
- -----------
AMLI:
at Champions
Centre Houston, TX 1994 1994 192 164,480 857 723 $0.84 94.5%
at Champions Park Houston, TX 1994 1991 246 221,986 902 708 0.78 95.7%
at Greenwood
Forest Houston, TX 1995 1995 316 310,844 984 752 0.76 96.4%
Midtown Houston, TX 2000 1998 419 368,818 880 945 1.07 94.3%
------ --------- --- ---- ----- -----
Subtotal-
Houston, TX 1,173 1,066,128 909 807 0.89 95.2%
------ --------- ---- ---- ----- -----
TOTAL CO-INVESTMENT
PROPERTIES 9,205 8,604,378 935 861 0.92 94.4%
====== ========= === ==== ===== =====
TOTAL WHOLLY OWNED
AND CO-INVESTMENT
PROPERTIES 21,781 19,888,675 913 $802 $0.88 92.7%
====== ========== === ==== ===== =====
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
------------------------------- ------------------------------- -------------------------------
% % %
2000 1999 CHANGE 2000 1999 CHANGE 2000 1999 CHANGE
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PROPERTY REVENUES
- -----------------
Rental Income
- -------------
Same Store Com-
munities (1). . . $ 23,978 23,557 1.8% 14,255 13,774 3.5% 38,233 37,331 2.4%
New Communities (2) 592 173 242.7% 5,594 3,301 69.5% 6,186 3,473 78.1%
Development and/or
Lease-up Com
-munities (3). . . 111 -- 1,003 -- 1,114 --
Acquisition Com-
munities (4) . . . 1,096 -- 4,234 -- 5,329 --
Communities Sold/
Contributed
to Ventures (5). . 498 2,965 109 1,660 607 4,625
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total. . . . . . $ 26,274 26,695 (1.6%) 25,195 18,735 34.5% 51,469 45,430 13.3%
======== ======== ======== ======== ======== ======== ======== ======== ========
Other Revenues
- --------------
Same Store
Communities. . . . $ 1,412 1,314 7.5% 964 839 15.0% 2,376 2,152 10.4%
New Communities . . 27 16 72.1% 462 227 103.8% 488 242 101.8%
Development and/or
Lease-up Com-
munities . . . . . 12 -- 137 -- 149 --
Acquisition Com-
munities . . . . . 52 -- 311 -- 364 --
Communities Sold/
Contributed
to Ventures. . . . 34 239 8 122 42 361
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total. . . . . . $ 1,537 1,569 (2.0%) 1,883 1,187 58.7% 3,419 2,755 24.1%
======== ======== ======== ======== ======== ======== ======== ======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
THREE MONTHS ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
------------------------------- ------------------------------- -------------------------------
% % %
2000 1999 CHANGE 2000 1999 CHANGE 2000 1999 CHANGE
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total Property Revenues
- -----------------------
Same Store Communities. $ 25,389 24,871 2.1% 15,219 14,613 4.2% 40,609 39,484 2.8%
New Communities . . . . 619 188 228.6% 6,056 3,527 71.7% 6,675 3,716 79.6%
Development and/or
Lease-up Communities . 123 -- 1,140 -- 1,263 --
Acquisition Communities 1,148 -- 4,545 -- 5,693 --
Communities Sold/Contri-
buted to Ventures. . . 532 3,204 117 1,782 649 4,986
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total. . . . . . . . $ 27,811 28,263 (1.6%) 27,078 19,922 35.9% 54,889 48,185 13.9%
======== ======== ======== ======== ======== ======== ======== ======== ========
Company's share of
Co-investment total
revenues. . . . . . . . 7,878 5,372
======== ========
Total Operating Expenses
- ------------------------
Same Store Communities. $ 9,666 9,380 3.0% 5,540 5,417 2.3% 15,206 14,797 2.8%
New Communities . . . . 198 146 35.6% 2,302 1,466 57.0% 2,500 1,612 55.1%
Development and/or
Lease-up Communities . 87 -- 918 -- 1,005 --
Acquisition Communities 401 -- 1,722 -- 2,123 --
Communities Sold/Contri-
buted to Ventures. . . 186 1,236 80 793 266 2,029
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total. . . . . . . . $ 10,538 10,763 (2.1%) 10,563 7,676 37.6% 21,100 18,439 14.4%
======== ======== ======== ======== ======== ======== ======== ======== ========
Company's Share of Co-
Investment Total
Revenues. . . . . . . . 3,029 2,048 47.9%
======== ======== ========
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
COMPONENTS OF PROPERTY EBITDA - CONTINUED
THREE MONTHS ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100%
------------------------------- ------------------------------- -------------------------------
% % %
2000 1999 CHANGE 2000 1999 CHANGE 2000 1999 CHANGE
-------- -------- -------- -------- -------- -------- -------- -------- --------
Property EBITDA
- ---------------
Same Store Communities. $ 15,724 15,491 1.5% 9,679 9,196 5.3% 25,403 24,686 2.9%
New Communities . . . . 421 42 896.5% 3,754 2,061 82.1% 4,175 2,103 98.5%
Development and/or
Lease-up Communities . 36 -- 223 -- 258 --
Acquisition Communities 747 -- 2,823 -- 3,570 --
Communities Sold/Contri-
buted to Ventures. . . 346 1,968 37 989 383 2,957
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total. . . . . . . . $ 17,273 17,501 (1.3%) 16,515 12,246 34.9% 33,789 29,747 13.6%
======== ======== ======== ======== ======== ======== ======== ======== ========
Company's Share of Co-
Investment EBITDA
(incl. share of
cash flow in excess of
ownership %). . . . . $ 5,039 3,394 48.4% 5,039 3,394 48.4%
======== ======== ======== ======== ======== ========
Percent of Co-Investment
EBITDA. . . . . . . . 31% 28% 10.1% 15% 11%
======== ======== ======== ======== ========
<FN>
(1) Stabilized Communities at 1/1/99.
(2) Development Communities stabilized after 1/1/99 but before 1/1/00.
(3) Development Communities not yet stabilized.
(4) Stabilized Communities acquired after 1/1/99.
(5) Communities sold or contributed to co-investment ventures.
</TABLE>
<PAGE>
<TABLE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITIES
First Quarter 2000
<CAPTION>
Construc- Percent Percent
tion First Comple- Stabili- Construc- Leased
Community Number Costs Percent Start Units tion zation tion as of
Name of Units (millions) Ownership Date Occupied Date Date Complete 4/23/00
- ---------- -------- ---------- --------- --------- -------- ------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Completed and
In Initial
Lease Up
- -------------
INDIANAPOLIS, IN
- ----------------
AMLI
on Spring Mill* 400 $ 29.5 20% 2Q/97 1Q/98 2Q/99 2Q/00 100% 88%
at Oakhurst North 464 43.3 25% 1Q/97 2Q/98 3Q/99 2Q/00 100% 99%
Under Construction
And/Or In Initial
Lease Up
- ------------------
ATLANTA, GA
- -----------
AMLI
at Mill Creek 400 27.1 25% 3Q/99 4Q/00 3Q/01 2Q/02 11% N/A
at Park Bridge 352 24.6 25% 2Q/99 2Q/00 1Q/01 4Q/01 36% N/A
at Lost Mountain 164 11.4 74% 2Q/99 2Q/00 4Q/00 2Q/01 67% 9%
DALLAS/FT WORTH, TX
- -------------------
AMLI at
Bent Tree II 200 13.9 100% 4Q/98 4Q/99 2Q/00 3Q/00 95% 56%
AUSTIN, TX
- ----------
AMLI at
Monterey Oaks 430 30.4 25% 4Q/98 1Q/00 3Q/00 3Q/01 71% 34%
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITIES - CONTINUED
Construc- Percent Percent
tion First Comple- Stabili- Construc- Leased
Community Number Costs Percent Start Units tion zation tion as of
Name of Units (millions) Ownership Date Occupied Date Date Complete 4/23/00
- ---------- -------- ---------- --------- --------- -------- ------- -------- --------- --------
CHICAGO (METRO),
IL
- ----------------
AMLI at
St. Charles 400 43.4 25% 3Q/98 3Q/99 2Q/00 1Q/01 93% 62%
OVERLAND PARK, KS
- -----------------
AMLI at
Wynnewood Farms 232 18.2 25% 2Q/98 4Q/99 2Q/00 4Q/00 86% 52%
at Regents Crest II 108 7.8 25% 2Q/98 3Q/99 2Q/00 2Q/00 97% 47%
Creekside 224 16.2 25% 2Q/98 4Q/99 2Q/00 4Q/00 88% 48%
LEE'S SUMMIT, MO
- ----------------
AMLI at
Summit Ridge 432 29.3 25% 2Q/99 2Q/00 1Q/01 1Q/02 37% N/A
INDIANAPOLIS, IN
- ----------------
AMLI at
Lake Clearwater 216 16.7 25% 3Q/98 3Q/99 2Q/00 3Q/00 93% 71%
at Castle Creek 276 20.7 40% 3Q/98 3Q/99 2Q/00 4Q/00 86% 42%
----- ------
TOTAL 4,298 $332.5
===== ======
<FN>
* AMLI's ownership percentage of AMLI at Spring Mill is a Residual Ownership Interest.
</TABLE>
<PAGE>
AMLI RESIDENTIAL PROPERTIES TRUST
DEVELOPMENT ACTIVITIES (continued)
PLANNING STAGES
Number
Community Name of Units
- -------------- ----------
ATLANTA, GA
- -----------
AMLI:
at Peachtree City II 216
INDIANAPOLIS, IN
- ----------------
AMLI
at Prairie Lakes 228
at Prairie Lakes (phases II-IV) 1,100
AUSTIN, TX
- ----------
AMLI
at Anderson Mill 540
Downtown Austin - Block 20 216
Parmer Park 520
DALLAS/FT WORTH, TX
- -------------------
AMLI
at Mesa Ridge (Fossil Creek II) 520
Fossil Lake 324
Fossil Creek IV-A 240
Vista Ridge 360
HOUSTON, TX
- -----------
AMLI
at King's Harbour 300
at Champions II 288
OVERLAND PARK, KS
- -----------------
AMLI
at Cambridge Square 402
at Westwood Ridge 428
The following is a "Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995 and Section 21E of the Securities Exchange
Act of 1934. The projections contained in the table above that are not
historical facts are forward-looking statements. Risks associated with the
Company's development, construction and lease-up activities, which could
impact the forward-looking statements may include: development
opportunities may be abandoned; construction costs of a community may
exceed original estimates, possibly making the community uneconomical;
construction and lease-up may not be completed on schedule, resulting in
increased debt service and construction costs; estimates of the costs of
improvements to bring an acquired property up to the standards established
for the market position intended for that property may prove inaccurate.
