As filed with the Securities and Exchange Commission on January 15, 1999
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: December 14, 1998
(Date of earliest event reported)
Inland Real Estate Corporation
(Exact name of registrant as specified in the charter)
Maryland 0-28382 36-3953261
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
2901 Butterfield Road
Oak Brook, Illinois 60523
(Address of Principal Executive Offices)
(630) 218-8000
(Registrant's telephone number including area code)
Not Applicable
(Former name or former address, if changed since last report)
-1-
The Company filed a Form 8-K on December 14, 1998 without the requisite
financial information. Accordingly, the Company is filing this Form 8 K/A.
Item 7. Financial Statements and Exhibits
Index to Financial Statements
Page
Pro Forma Balance Sheet (unaudited) at September 30, 1998........... F- 1
Notes to Pro Forma Balance Sheet (unaudited) at September 30, 1998.. F- 3
Pro Forma Statement of Operations (unaudited) of the Company
for the nine months ended September 30, 1998...................... F- 7
Notes to Pro Forma Statement of Operations (unaudited) for
the nine months ended September 30, 1998.......................... F- 9
Pro Forma Statement of Operations (unaudited) of the Company
for the year ended December 31, 1997.............................. F-15
Notes to Pro Forma Statement of Operations (unaudited) for
the year ended December 31, 1997.................................. F-17
-2-
SIGNATURE
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Inland Real Estate Corporation
(Registrant)
By:/s/ KELLY TUCEK
Kelly Tucek
Chief Financial and Accounting Officer
Date: January 15, 1999
-3-
Inland Real Estate Corporation
Pro Forma Balance Sheet
September 30, 1998
(unaudited)
The following unaudited Pro Forma Balance Sheet of the Company is presented to
give effect to the acquisitions of the properties indicated in Note B of the
Notes to the Pro Forma Balance Sheet as though these transactions occurred
September 30, 1998. No Pro Forma adjustment was made for the Staples Office
Supply Store which was under construction at September 30, 1998. This
unaudited Pro Forma Balance Sheet should be read in conjunction with the
September 30, 1998 Financial Statements and the notes thereto as filed on Form
10-Q.
This unaudited Pro Forma Balance Sheet is not necessarily indicative of what
the actual financial position would have been at September 30, 1998, nor does
it purport to represent the future financial position of the Company. Unless
otherwise defined, capitalized terms used herein shall have the same meaning as
in the Prospectus.
F-1
Inland Real Estate Corporation
Pro Forma Balance Sheet
September 30, 1998
(unaudited)
September 30, September 30,
1998 Pro Forma 1998
Historical(A) Adjustments(B) Pro Forma
------------- ------------- --------------
Assets
- ------
Net investment in
properties.................. $473,880,017 142,842,000 616,722,017
Cash and cash equivalents..... 106,277,855 - 106,277,855
Restricted cash............... 13,303,842 - 13,303,842
Accounts and rents
receivable.................. 10,935,833 1,260,180 12,196,013
Other assets.................. 9,891,843 - 9,891,843
------------- ------------- -------------
Total assets.................. $614,289,390 144,102,180 758,391,570
============= ============= =============
Liabilities and Stockholders' Equity
- ------------------------------------
Accounts payable and accrued
expenses.................... $ 1,733,869 - 1,733,869
Accrued real estate taxes..... 12,859,623 1,459,050 14,318,673
Distributions payable (C)..... 3,345,717 - 3,345,717
Security deposits............. 1,282,675 191,048 1,473,723
Mortgages payable............. 178,106,593 4,625,000 182,731,593
Unearned income............... 1,263,271 - 1,263,271
Other liabilities............. 2,297,130 - 2,297,130
Due to Affiliates............. 820,632 - 820,632
------------- ------------- -------------
Total liabilities............. 201,709,510 6,275,098 207,984,608
------------- ------------- -------------
Common Stock (D).............. 467,923 145,694 613,617
Additional paid in capital
(net of Offering costs) (D). 426,379,560 137,681,298 564,060,858
Accumulated distributions in
excess of net income........ (14,267,603) - (14,267,603)
------------- ------------- -------------
Total Stockholders' equity.... 412,579,880 137,827,082 550,406,872
------------- ------------- -------------
Total liabilities and
Stockholders' equity........ $614,289,390 144,102,180 758,391,480
============= ============= =============
See accompanying notes to pro forma balance sheet.
F-2
<TABLE> Inland Real Estate Corporation
Notes to Pro Forma Balance Sheet
(continued)
September 30, 1998
(unaudited)
(A) The September 30, 1998 Historical column represents the historical balance sheet as presented in
the September 30, 1998 10-Q as filed with the SEC.
(B) The following pro forma adjustment relates to the acquisition of the subject properties as
though they were acquired on September 30, 1998. The terms are described in the notes that
follow.
<CAPTION>
Pro Forma Adjustments
-----------------------------------------------------------------------------
Woodfield Edinburgh Springboro Riverplace Rose
Two Rivers Commons Festival Plaza Center Plaza
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C>
Assets
- ------
Net investment in
properties................ 6,770,000 $27,000,000 9,107,000 9,295,000 6,065,000 2,753,000
Accounts and rents
receivable................ 18,300 352,000 - 90,500 78,500 59,000
------------ ------------ ------------ ------------ ------------ ------------
Total assets................ 6,788,300 $27,352,000 9,107,000 9,385,500 6,143,500 2,812,000
============ ============ ============ ============ ============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Accrued real estate taxes... 18,300 374,750 - 90,500 78,500 59,000
Security deposits........... 6,666 100,355 8,402 6,134 11,924 -
Mortgage payable............ - - 4,625,000 - - -
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities........... 24,966 475,105 4,633,402 96,634 90,424 59,000
------------ ------------ ------------ ------------ ------------ ------------
Common Stock................ 7,149 28,411 4,729 9,819 6,399 2,910
Additional paid in capital
(net of Offering Costs)... 6,756,185 26,848,484 4,468,869 9,279,047 6,046,677 2,750,000
------------ ------------ ------------ ------------ ------------ ------------
Total Stockholders' equity.. 6,763,334 26,876,895 4,473,598 9,288,866 6,053,076 2,753,000
------------ ------------ ------------ ------------ ------------ ------------
Total liabilities and
Stockholders' equity...... 6,788,300 $27,352,000 9,107,000 9,385,500 6,143,500 2,812,000
============ ============ ============ ============ ============ ============
F-3
F-3
Inland Real Estate Corporation
Notes to Pro Forma Balance Sheet
(continued)
September 30, 1998
(unaudited)
Pro Forma Adjustments
-----------------------------------------------------------------------------
Marketplace Total
at Six CarMax CarMax Park Hollywood Plymouth Pro Forma
Corners Tinley Park Schaumburg Center Video Collection Adjustments
------------ ------------ ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
- ------
Net investment in
properties................ 18,875,000 18,900,000 20,600,000 15,500,000 1,351,000 6,626,000 142,842,000
Accounts and rents
receivable................ 172,000 - - 489,880 - - 1,260,180
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total assets................ 19,047,000 18,900,000 20,600,000 15,989,880 1,350,000 6,626,000 144,102,180
============ ============ ============ ============ ============ ============ ===========
Liabilities and Stockholders' Equity
- ------------------------------------
Accrued real estate taxes... 176,000 - - 662,000 - - 1,459,050
Security deposits........... - - - 43,317 - 14,250 191,048
Mortgage payable............ - - - - - - 4,625,000
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total liabilities........... 176,000 - - 705,317 - 14,250 6,275,098
------------ ------------ ------------ ------------ ------------ ------------ -----------
Common Stock................ 19,948 19,979 21,776 16,157 1,428 6,989 145,694
Additional paid in capital
(net of Offering Costs)... 18,851,052 18,880,021 20,578,224 15,268,406 1,349,572 6,604,761 137,681,298
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total Stockholders' equity.. 7,671,000 18,900,000 20,600,000 15,284,563 1,351,000 6,611,750 137,827,082
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total liabilities and
Stockholders' equity...... 19,047,000 18,900,000 20,600,000 15,989,880 1,351,000 6,626,000 144,102,180
============ ============ ============ ============ ============ ============ ===========
F-4
</TABLE>
F-4
Inland Real Estate Corporation
Notes to Pro Forma Balance Sheet
(continued)
September 30, 1998
(unaudited)
Acquisitions of Property:
On October 1, 1998, the Company acquired Two Rivers from an unaffiliated
third party for the purchase price of approximately $6,770,000 on an all
cash basis, funded from cash and cash equivalents.
On October 8, 1998, the Company acquired Woodfield Commons from an
unaffiliated third party for the purchase price of approximately
$27,000,000 on an all cash basis, funded from cash and cash equivalents.
On October 14, 1998, the Company acquired Edinburgh Festival Center from an
unaffiliated third party for the purchase price of approximately
$9,107,000. As part of the acquisition, the Company assumed an existing
first mortgage with a balance of $4,625,000. The balance of the purchase
price was funded from cash and cash equivalents.
On November 12, 1998, the Company acquired Springboro Plaza from an
unaffiliated third party for the purchase price of approximately $9,295,000
on an all cash basis, funded from cash and cash equivalents.
On November 12, 1998, the Company acquired Riverplace Center from an
unaffiliated third party for the purchase price of approximately $6,065,000
on an all cash basis, funded from cash and cash equivalents.
On November 16, 1998, the Company acquired Rose Plaza from an unaffiliated
third party for the purchase price of approximately $2,753,000 on an all
cash basis, funded from cash and cash equivalents.
On November 30, 1998, the Company acquired Marketplace at Six Corners from
an unaffiliated third party for the purchase price of approximately
$18,875,000 on an all cash basis, funded from cash and cash equivalents.
On December 2, 1998, the Company acquired Carmax-Tinley Park from an
unaffiliated third party for the purchase price of approximately
$18,900,000 on an all cash basis, funded from cash and cash equivalents.
On December 2, 1998, the Company acquired Carmax-Schaumburg from an
unaffiliated third party for the purchase price of approximately
$20,600,000 on an all cash basis, funded from cash and cash equivalents.
On December 4, 1998, the Company acquired Park Center from an unaffiliated
third party for the purchase price of approximately $15,500,000 on an all
cash basis, funded from cash and cash equivalents.
On December 18, 1998, the Company acquired Hollywood Video-Hammond from an
unaffiliated third party for the purchase price of approximately $1,351,000
on an all cash basis, funded from cash and cash equivalents.
F-5
Inland Real Estate Corporation
Notes to Pro Forma Balance Sheet
(continued)
September 30, 1998
(unaudited)
On January 6, 1999, the Company acquired Plymouth Collection from an
unaffiliated third party for the purchase price of approximately $6,626,000
on an all cash basis, funded from cash and cash equivalents.
(C) No pro forma assumptions have been made for the additional payment of
distributions resulting from the additional proceeds raised.
(D) Additional Offering Proceeds of $160,263,400, net of additional Offering
costs of $22,436,318 are reflected as received as of September 30, 1998,
prior to the purchase of the properties. Offering costs consist
principally of registration costs, printing and selling costs, including
commissions.
F-6
Inland Real Estate Corporation
Pro Forma Statement of Operations
For the nine months ended September 30, 1998
(unaudited)
The following unaudited Pro Forma Statement of Operations of the Company is
presented to effect the acquisitions of the properties indicated in Note B of
the Notes to the Pro Forma Statement of Operations as though they occurred on
the earlier of January 1, 1997 or the date operations commenced. Pro forma
adjustments for Oak Forest Commons, Downers Grove Market and Hollywood Video-
Hammond are as of March 5, 1998, March 25, 1998, and May 1, 1998, respectively,
as these are the dates that operations commenced. Construction was completed
in the third quarter of 1998 for Carmax-Tinley Park, Carmax-Schaumburg and
Plymouth Collection and significant operations had not commenced. Therefore no
pro forma adjustments were made for these centers. Construction was not
completed on the Staples Office Supply Store and therefore, no pro forma
adjustment has been made. This unaudited Pro Forma Statement of Operations
should be read in conjunction with the September 30, 1998 Financial Statements
and the notes thereto as filed on Form 10-Q.
This unaudited Pro Forma Statement of Operations is not necessarily indicative
of what the actual results of operations would have been for the nine months
ended September 30, 1998, nor does it purport to represent the future financial
position of the Company. Unless otherwise defined, capitalized terms used
herein shall have the same meaning as in the Prospectus.
F-7
Inland Real Estate Corporation
Pro Forma Statement of Operations
For the nine months ended September 30, 1998
(unaudited)
Pro Forma
Adjustments
-----------
September 30,
1998 1998 September 30,
Historical Acquisitions 1998
(A) (B) Pro Forma
------------ ------------ -----------
Rental income..... $34,964,084 11,326,590 46,290,674
Additional rental
income.......... 11,767,354 4,851,172 16,618,526
Interest
income(C)....... 3,270,815 - 3,270,815
Other income...... 115,432 - 115,432
------------ ------------ ------------
Total income.... 50,117,685 16,177,762 66,295,447
------------ ------------ ------------
Professional services
and general and
administrative
fees............ 557,689 - 557,689
Advisor asset
management fee.(F) 1,252,815 1,115,902 2,368,717
Property operating
expenses........ 15,022,998 5,788,587 20,811,585
Interest expense.. 8,570,847 435,944 9,006,791
Depreciation (D).. 8,087,624 3,055,505 11,143,129
Amortization...... 157,892 - 157,892
Acquisition costs
expensed........ 212,129 - 212,129
------------ ------------ ------------
Total expenses.... 33,861,994 10,395,938 44,257,932
------------ ------------ ------------
Net income...... $16,255,691 5,781,824 22,037,515
============ ============ ============
Weighted average
common stock
outstanding (E). 36,811,187 51,380,587
============ ============
Net income per weighted
average common stock
outstanding, basic and
diluted (E)..... $ .44 .43
============ ============
See accompanying notes to pro forma statement of operations.
F-8
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
For the nine months ended September 30, 1998
(unaudited)
(A) The 1998 Historical column represents the historical statement of
operations of the Company for the nine months ended September 30, 1998
(unaudited), as filed with the SEC on Form 10-Q.
(B) Total pro forma adjustments for the six months ended June 30, 1998 are as
though the 1998 acquisitions of the following properties occurred the
earlier of January 1, 1997 or the date operations commenced and are based
on information provided by the seller. All properties were purchased on an
all cash basis except for Mill Creek, Schaumburg Plaza and Edinburgh
Festival. Pro forma adjustments for interest expense on these properties
were based on the following terms.
Mill Creek Shopping Center
As part of the acquisition of Mill Creek Shopping Center, the Company
assumed the existing mortgage loan of $9,500,000, maturing September 10,
1999, with the balance funded with cash and cash equivalents. The loan
requires interest only monthly payments at a rate of 8% per annum.
Schaumburg Plaza
As part of the acquisition of Schaumburg Plaza, the Company assumed the
existing debt of $3,924,183. The debt requires monthly interest only
payments at a rate of 9.25% per annum through September 2004 and then
requires principal and interest payments through December 2009 at a rate of
9.25% per annum based on a 30 year amortization schedule.
Edinburgh Festival
As part of the acquisition of Edinburgh Festival, the Company will assume
the existing first mortgage loan, maturing September 30, 2008, with a
balance of $4,625,000. The loan requires interest only monthly payments at
a rate of 6.30% per annum.
F-9
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the nine months ended September 30, 1998
(unaudited)
(B) Total pro forma adjustments for 1998 acquisitions are as though they were
acquired the earlier of January 1, 1997 or the date operations commenced.
West
Coopers Chicago Maple Lake Park Orland
Grove Dominick's Plaza Plaza Park
----------- ----------- ----------- ----------- -----------
Rental income..... $ 12,649 36,150 30,776 130,540 11,631
Additional rental
income.......... 9,364 - 11,154 49,688 5,600
----------- ----------- ----------- ----------- -----------
Total income...... 22,013 36,150 41,930 180,228 17,231
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 1,271 3,625 2,638 13,452 2,083
Property operating
expenses........ 10,754 1,085 13,041 60,970 7,200
Interest expense.. - - - - -
Depreciation...... 3,213 9,062 6,950 33,000 5,208
----------- ----------- ----------- ----------- -----------
Total expenses.... 15,238 13,772 22,629 107,422 14,492
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 6,775 22,378 19,301 72,806 2,739
=========== =========== =========== =========== ===========
Homewood Wisner Mill Prairie Elmhurst
Plaza Plaza Creek Square City Center
----------- ----------- ----------- ----------- -----------
Rental income..... $ 29,096 29,958 180,896 78,950 84,667
Additional rental
income.......... 22,945 12,915 123,799 29,500 15,971
----------- ----------- ----------- ----------- -----------
Total income...... 52,041 42,873 304,695 108,450 100,637
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 2,812 2,738 18,933 7,750 3,979
Property operating
expenses........ 25,287 14,844 142,668 34,380 23,473
Interest expense.. - - 126,667 - -
Depreciation...... 6,970 6,880 45,417 21,950 9,948
----------- ----------- ----------- ----------- -----------
Total expenses.... 35,069 24,462 333,685 64,080 37,400
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 16,972 18,411 (28,990) 44,370 63,238
=========== =========== =========== =========== ===========
F-10
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the nine months ended September 30, 1998
(unaudited)
St. James Chestnut Bergen Berwyn Western &
Crossing Court Plaza Plaza Howard
----------- ----------- ----------- ----------- -----------
Rental income..... $ 189,704 319,057 490,456 60,841 70,092
Additional rental
income.......... 54,985 82,340 190,947 50,285 24,948
----------- ----------- ----------- ----------- -----------
Total income...... 244,689 401,397 681,403 111,126 95,040
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 18,693 40,360 43,119 6,888 6,377
Property operating
expenses........ 65,996 134,035 227,516 57,382 34,369
Interest expense.. - - - - -
Depreciation...... 46,750 100,900 125,767 17,222 15,942
----------- ----------- ----------- ----------- -----------
Total expenses.... 131,439 275,295 396,402 81,492 56,688
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 113,250 126,102 285,001 29,634 38,352
=========== =========== =========== =========== ===========
High Point Woodland Walgreens Schaumburg
Wauconda Center Heights Woodstock Plaza
----------- ----------- ----------- ----------- -----------
Rental income..... $ 80,746 331,704 342,420 48,013 373,663
Additional rental
income.......... 21,603 78,007 313,058 - 177,341
----------- ----------- ----------- ----------- -----------
Total income...... 102,349 409,711 655,478 48,013 551,004
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 6,313 32,787 46,400 5,035 34,935
Property operating
expenses........ 26,209 80,420 363,700 - 215,485
Interest expense.. - - - - 180,746
Depreciation...... 22,094 97,672 112,778 10,978 86,667
----------- ----------- ----------- ----------- -----------
Total expenses.... 54,616 210,879 522,878 16,013 517,833
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 47,733 198,832 132,600 32,000 33,171
=========== =========== =========== =========== ===========
F-11
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the nine months ended September 30, 1998
(unaudited)
Winnetka Fairview Orland
Commons Eastgate Heights Greens
----------- ----------- ----------- -----------
Rental income..... $ 225,717 422,415 960,161 331,752
Additional rental
income.......... 161,656 123,597 239,250 446,300
----------- ----------- ----------- -----------
Total income...... 387,373 546,012 1,199,411 778,052
----------- ----------- ----------- -----------
Advisor asset
management fee.. 22,175 38,655 84,300 36,570
Property operating
expenses........ 134,458 148,597 295,680 365,860
Interest expense.. - - - -
Depreciation...... 46,667 86,250 210,769 91,425
----------- ----------- ----------- -----------
Total expenses.... 203,300 273,502 590,749 493,855
----------- ----------- ----------- -----------
Net income (loss). $ 184,073 272,510 608,662 284,197
=========== =========== =========== ===========
Bakers Edinburgh Woodfield Two
Shoes Festival Commons Rivers
----------- ----------- ----------- -----------
Rental income..... $ 75,000 620,500 1,441,375 509,060
Additional rental
income.......... - 277,719 666,497 109,400
----------- ----------- ----------- -----------
Total income...... 75,000 898,219 2,107,872 618,460
----------- ----------- ----------- -----------
Advisor asset
management fee.. 7,568 69,375 202,500 50,775
Property operating
expenses........ 3,375 309,407 768,083 138,290
Interest expense.. - 218,531 - -
Depreciation...... 18,919 173,438 506,250 126,938
----------- ----------- ----------- -----------
Total expenses.... 29,862 770,751 1,476,833 316,003
----------- ----------- ----------- -----------
Net income (loss). $ 45,138 127,468 631,039 302,457
=========== =========== =========== ===========
F-12
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the nine months ended September 30, 1998
(unaudited)
Marketplace
Park at Springboro Riverplace
Center Six Corners Plaza Center
----------- ----------- ----------- -----------
Rental income..... $1,040,235 1,339,500 673,355 450,186
Additional rental
income.......... 816,335 437,176 121,104 119,583
----------- ----------- ----------- -----------
Total income...... 1,856,570 1,776,676 794,459 569,769
----------- ----------- ----------- -----------
Advisor asset
management fee.. 16,250 141,563 69,713 45,488
Property operating
expenses........ 1,249,738 460,186 158,077 146,430
Interest expense.. - - - -
Depreciation...... 290,625 353,906 174,281 113,719
----------- ----------- ----------- -----------
Total expenses.... 1,556,613 955,655 402,071 305,637
----------- ----------- ----------- -----------
Net income (loss). $ 299,957 821,021 392,388 264,132
=========== =========== =========== ===========
Total 1998
Rose Hollywood Acquisitions
Plaza Video Pro Forma
----------- ----------- ------------
Rental income..... $ 198,621 106,704 11,326,590
Additional rental
income.......... 56,244 1,861 4,851,172
----------- ----------- ------------
Total income...... 254,865 108,565 16,177,762
----------- ----------- ------------
Advisor asset
management fee.. 20,648 10,133 1,115,902
Property operating
expenses........ 64,846 6,746 5,788,587
Interest expense.. - - 435,944
Depreciation...... 51,619 25,331 3,055,505
----------- ----------- ------------
Total expenses.... 137,113 42,210 10,395,938
----------- ----------- ------------
Net income (loss). $ 117,752 66,355 5,781,824
=========== =========== ============
F-13
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the nine months ended September 30, 1998
(unaudited)
(C) No pro forma adjustment has been made relating to interest income which
would have been earned on the additional Offering Proceeds raised.
(D) Depreciation expense is computed using the straight-line method, based upon
an estimated useful life of thirty years.
(E) The pro forma weighted average common stock shares for the nine months
ended September 30, 1998 was calculated by estimating the additional shares
sold to purchase each of the Company's properties on a weighted average
basis.
(F) Advisor Asset Management Fees are calculated as 1% per annum of the Average
Invested Assets (as defined).
F-14
Inland Real Estate Corporation
Pro Forma Statement of Operations
For the year ended December 31, 1997
(unaudited)
The following unaudited Pro Forma Statement of Operations of the Company is
presented to effect the acquisitions of the properties indicated in Note B and
Note C of the Notes to the Pro Forma Statement of Operations as though they
occurred the earlier of January 1, 1997 or the date operations commenced. No
pro forma adjustments have been made for Orland Park, Oak Forest Commons,
Downers Grove Market, Marketplace at Six Corners, Carmax-Tinley Park, Carmax-
Schaumburg, Hollywood Video-Hammond and Plymouth Collection as these centers
were completed in 1997 and 1998 and no significant operations existed for the
year ended December 31, 1997. Construction had not begun on Staples Office
Supply Store and Stuarts Crossing and therefore, there were no operations for
the year ended December 31, 1997. This unaudited Pro Forma Statement of
Operations should be read in conjunction with the December 31, 1997 Financial
Statements and the notes thereto as filed on Form 10-K.
This unaudited Pro Forma Statement of Operations is not necessarily indicative
of what the actual results of operations would have been for the year ended
December 31, 1997, nor does it purport to represent the future financial
position of the Company. Unless otherwise defined, capitalized terms used
herein shall have the same meaning as in the Prospectus.
F-15
Inland Real Estate Corporation
Pro Forma Statement of Operations
For the year ended December 31, 1997
(unaudited)
Pro Forma Adjustments
---------------------------
1997 1997 1998
Historical Acquisitions Acquisitions 1997
(A) (B) (C) Pro Forma
------------ ------------ ------------ ------------
Rental income..... $21,112,365 9,903,951 23,298,526 54,314,842
Additional rental
income.......... 6,592,983 3,622,583 9,096,603 19,312,169
Interest
income(D)....... 1,615,520 - - 1,615,520
Other income...... 100,717 - - 100,717
------------ ------------ ------------ ------------
Total income.... 29,421,585 13,526,534 32,395,129 75,343,248
------------ ------------ ------------ ------------
Professional services
and general and
administrative
fees............ 482,954 - - 482,954
Advisor asset
management fee.(G) 843,000 1,832,719 2,448,446 5,124,165
Property operating
expenses........ 8,863,024 4,476,786 11,987,265 25,327,075
Interest expense.. 5,654,564 1,338,640 1,284,941 8,278,145
Depreciation (E).. 4,556,445 2,371,640 6,093,041 13,021,126
Amortization...... 124,884 - - 124,884
Acquisition costs
expensed........ 249,493 - - 249,493
------------ ------------ ------------ ------------
Total expenses.... 20,774,364 10,019,785 21,813,693 52,607,842
------------ ------------ ------------ ------------
Net income...... $ 8,647,221 3,506,749 10,581,436 22,735,406
============ ============ ============ ============
Weighted average
common stock
outstanding (F). 15,225,983 40,867,701
============ ============
Net income per weighted
average common stock
outstanding, basic and
diluted (F)..... $ .57 .56
============ ============
See accompanying notes to pro forma statement of operations.
F-16
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
For the year ended December 31, 1997
(unaudited)
(A) The 1997 Historical column represents the historical statement of
operations of the Company for the year ended December 31, 1997, as filed
with the SEC on Form 10-K.
(B) Total pro forma adjustments for the year ended December 31, 1997 are as
though the 1997 acquisitions of the following properties occurred the
earlier of January 1, 1997 or the date operations commenced (May 13, 1997
for the Glendale Heights Dominick's). All properties were purchased on an
all cash basis except for Maple Park, Aurora Commons, Lincoln Park Place
and Rivertree Court. Pro forma adjustments for interest expense on these
properties were based on the following terms:
Maple Park Shopping Center
The Company funded the purchase using (i) the proceeds of a short-term loan
maturing April 7, 1997 in the amount of $8 million from Inland Mortgage
Investment Corporation ("IMIC"), an affiliate of the Company (the "Short-
Term Loan"), and (ii) cash and cash equivalents. The Short-Term Loan bears
interest at a rate of 9.0% per annum and requires a loan fee of 1/4%.
Aurora Commons Shopping Center
As part of the acquisition of Aurora Commons Shopping Center, the Company
assumed the existing mortgage loan, maturing December 31, 2001, with the
balance funded with cash and cash equivalents. The loan bears interest at
a rate of 9% per annum with monthly payments of principal and interest on
the first day of each month.
Lincoln Park Place Shopping Center
The Company funded the purchase of Lincoln Park Place Shopping Center using
the proceeds of a short-term loan maturing February 7, 1997 in the amount
of $2,016,110 from Inland Mortgage Investment Corporation ("IMIC"), an
affiliate of the Company (the "Short-Term Loan"). The Company did not pay
any fees in connection with the Short-Term Loan, which bears interest at a
rate of 9% per annum.
F-17
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
For the year ended December 31, 1997
(unaudited)
Rivertree Court
As part of the acquisition of Rivertree Court, the Company assumed the
existing first mortgage loan, maturing January 1, 1999, with a balance of
$15,700,000. The loan requires interest only monthly payments at a rate of
10.03% per annum.
Fashion Square
As part of the acquisition of Fashion Square, the Company assumed the
existing bond financing, in the remaining principal balance of $6,200,000.
Monthly interest only payments are due on the financing through December 1,
2014 maturity date. The interest rate changes weekly and is currently
4.1%. The bond financing is secured by a Letter of Credit issued by
LaSalle National Bank, who receives an annual fee of 1.25% of the
outstanding principal balance.
F-18
<TABLE>
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
(B) Total pro forma adjustments for 1997 acquisitions are as though they were acquired the earlier of January 1, 1997 or
the date operations commenced.
<CAPTION>
Niles
Maple Park Aurora Lincoln Shopping Cobblers Mallard Calumet Ameritech
Place Commons Park Place Center Mall Mall Square Outlot
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Rental income..... $ 39,736 82,740 14,159 98,780 341,053 356,037 130,663 36,768
Additional rental
income.......... 8,168 26,594 5,714 39,507 189,843 138,412 146,565 8,091
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Total income...... 47,904 109,334 19,873 138,287 530,896 494,449 277,228 44,859
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Advisor asset
management fee.. - - - - - - - -
Property operating
expenses........ 10,039 30,055 6,352 43,952 205,189 161,720 152,445 9,746
Interest expense.. - - - - - - - -
Depreciation...... - - - - - - - -
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Total expenses.... 10,039 30,055 6,352 43,952 205,189 161,720 152,445 9,746
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Net income (loss). $ 37,865 79,279 13,521 94,335 325,707 332,729 124,783 35,113
=========== =========== =========== =========== =========== ============ =========== ===========
Highland Glendale
Schaumburg Sequoia Park River Rivertree Shorecrest Heights
Dominicks Plaza Dominicks Square Court Plaza Dominicks Party City
----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Rental income..... $ 269,510 182,563 405,156 358,182 1,923,392 311,714 303,692 166,666
Additional rental
income.......... - 67,441 - 157,773 588,600 128,728 - 33,000
----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
Total income...... 269,510 250,004 405,156 515,955 2,511,992 440,442 303,692 199,666
----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
Advisor asset
management fee.. - - - - - - - -
Property operating
expenses........ 5,390 78,364 8,103 166,076 732,510 154,027 7,592 39,000
Interest expense.. - - - - - - - -
Depreciation...... - - - - - - - -
----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
Total expenses.... 5,390 78,364 8,103 166,076 732,510 154,027 7,592 39,000
----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
Net income (loss). $ 264,120 171,640 397,053 349,879 1,779,482 286,415 296,099 160,666
=========== =========== =========== =========== =========== ============ ============ ===========
F-18
F-19
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
(B) Total pro forma adjustments for 1997 acquisitions are as though they were acquired the earlier of January 1, 1997 or
the date operations commenced.
<CAPTION>
Roselle Wilson Terramere Iroquois Fashion Naper West
Eagle Countryside Plaza Plaza Center Square Plaza
----------- ----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Rental income..... $ 307,980 256,000 136,100 419,563 1,376,053 808,935 1,578,508
Additional rental
income.......... 77,500 - 50,500 376,745 446,667 543,963 588,773
----------- ----------- ----------- ----------- ----------- ------------ ------------
Total income...... 385,480 256,000 186,600 793,309 1,822,720 1,352,897 2,167,281
----------- ----------- ----------- ----------- ----------- ------------ ------------
Advisor asset
management fee.. - - - - - - -
Property operating
expenses........ 100,000 87,000 61,100 406,416 551,333 741,680 718,696
Interest expense.. - - - - - - -
Depreciation...... - - - - - - -
----------- ----------- ----------- ----------- ----------- ------------ ------------
Total expenses.... 100,000 87,000 61,100 406,416 551,333 741,680 718,696
----------- ----------- ----------- ----------- ----------- ------------ ------------
Net income (loss). $ 285,480 169,000 125,500 389,892 1,271,387 611,217 1,448,585
=========== =========== =========== =========== =========== ============ ============
Total
1997
Pro Forma Acquisitions
Adjustments Pro Forma
----------- -------------
<S> <C> <C>
Rental income..... $ - 9,903,951
Additional rental
income.......... - 3,622,583
----------- ------------
Total income...... - 13,526,534
----------- ------------
Advisor asset
management fee.. 1,832,719 1,832,719
Property operating
expenses........ - 4,476,786
Interest expense.. 1,338,640 1,338,640
Depreciation...... 2,371,640 2,371,640
----------- ------------
Total expenses.... 5,542,999 10,019,785
----------- ------------
Net income (loss). $(5,542,999) 3,506,749
=========== ============
</TABLE>
F-19
F-20
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
(C) Total pro forma adjustments for 1998 acquisitions are as though they were
acquired the earlier of January 1, 1997 or the date operations commenced.
All properties were purchased on an all cash basis except Edinburgh
Festival. The pro forma adjustment for interest expense on this property
was based on the following terms:
As part of the acquisition of Edinburgh Festival, the Company assumed the
existing first mortgage loan, maturing September 30, 2008, with a balance
of $4,625,000. The loan requires interest only monthly payments at a rate
of 6.30% per annum.
West
Woodfield Coopers Chicago Maple Lake Park
Plaza Grove Dominick's Plaza Plaza
----------- ----------- ----------- ----------- -----------
Rental income..... $2,235,315 577,096 628,320 369,317 1,216,080
Additional rental
income.......... 755,071 401,492 - 129,431 472,163
----------- ----------- ----------- ----------- -----------
Total income...... 2,990,386 978,588 628,320 498,748 1,688,243
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 192,000 58,000 63,000 31,650 122,750
Property operating
expenses........ 873,792 488,067 18,850 133,667 543,398
Interest expense.. - - - - -
Depreciation...... 483,000 146,600 157,500 83,400 293,000
----------- ----------- ----------- ----------- -----------
Total expenses.... 1,548,792 692,667 239,350 248,717 959,148
----------- ----------- ----------- ----------- -----------
Net income (loss). $1,441,594 285,921 388,970 250,031 729,095
=========== =========== =========== =========== ===========
F-21
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
December 31, 1997
(unaudited)
Homewood Wisner Elmhurst Mill Prairie
Plaza Plaza City Center Creek Square
----------- ----------- ----------- ----------- -----------
Rental income..... $ 220,375 206,312 508,377 1,085,374 315,796
Additional rental
income.......... 132,016 59,636 95,827 725,135 87,777
----------- ----------- ----------- ----------- -----------
Total income...... 332,391 265,948 604,204 1,810,509 403,573
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 19,363 18,853 47,750 113,600 31,000
Property operating
expenses........ 166,951 101,312 140,836 823,792 130,448
Interest expense.. - - - 760,000 -
Depreciation...... 46,500 45,900 119,375 272,500 87,800
----------- ----------- ----------- ----------- -----------
Total expenses.... 232,814 166,065 307,961 1,969,892 249,248
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 99,577 99,883 296,243 (159,383) 154,325
=========== =========== =========== =========== ===========
St. James Chestnut Bergen Western & Berwyn
Crossing Court Plaza Howard Plaza
----------- ----------- ----------- ----------- -----------
Rental income..... $ 720,615 1,197,317 1,681,564 210,288 176,345
Additional rental
income.......... 183,197 306,682 980,649 69,180 131,460
----------- ----------- ----------- ----------- -----------
Total income...... 903,812 1,503,999 2,662,213 279,468 307,805
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 74,770 161,440 172,477 19,130 18,370
Property operating
expenses........ 265,225 593,967 1,105,206 88,145 147,830
Interest expense.. - - - - -
Depreciation...... 187,000 403,600 431,200 47,825 45,925
----------- ----------- ----------- ----------- -----------
Total expenses.... 526,995 1,159,007 1,708,883 155,100 212,125
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 376,817 344,992 953,330 124,368 95,680
=========== =========== =========== =========== ===========
F-22
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
December 31, 1997
(unaudited)
High Point Woodland Walgreens Winnetka
Wauconda Center Heights Woodstock Commons
----------- ----------- ----------- ----------- -----------
Rental income..... $ 230,703 1,078,701 684,840 110,800 453,321
Additional rental
income.......... 72,913 251,518 754,544 - 343,033
----------- ----------- ----------- ----------- -----------
Total income...... 303,616 1,330,219 1,439,384 110,800 796,354
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 25,250 103,540 96,000 11,620 44,350
Property operating
expenses........ 72,912 305,583 844,901 4,986 327,566
Interest expense.. - - - - -
Depreciation...... 63,125 308,437 233,333 25,333 93,333
----------- ----------- ----------- ----------- -----------
Total expenses.... 161,287 717,560 1,174,234 41,939 465,249
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 142,329 612,659 265,150 68,861 331,105
=========== =========== =========== =========== ===========
Fairview
Schaumburg Park Heights Orland
Plaza Eastgate Center Plaza Greens
----------- ----------- ----------- ----------- -----------
Rental income..... $ 734,658 844,830 1,386,980 1,280,215 442,337
Additional rental
income.......... 315,191 200,749 532,465 315,356 492,656
----------- ----------- ----------- ----------- -----------
Total income...... 1,049,849 1,045,579 1,919,445 1,595,571 934,993
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 69,873 77,310 155,000 112,410 51,000
Property operating
expenses........ 511,999 436,950 1,210,493 385,880 469,956
Interest expense.. 379,254 - - - -
Depreciation...... 173,333 172,500 387,500 283,333 126,667
----------- ----------- ----------- ----------- -----------
Total expenses.... 1,134,459 686,760 1,752,993 781,623 647,623
----------- ----------- ----------- ----------- -----------
Net income (loss). $ (84,610) 358,819 166,452 813,948 287,370
=========== =========== =========== =========== ===========
F-23
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
December 31, 1997
(unaudited)
Edinburgh
Bakers Festival Woodfield Two Springboro
Shoes Center Commons Rivers Plaza
----------- ----------- ----------- ----------- -----------
Rental income..... $ 100,000 413,667 1,921,834 678,750 897,806
Additional rental
income.......... - 168,097 643,583 147,199 129,002
----------- ----------- ----------- ----------- -----------
Total income...... 100,000 581,764 2,565,417 825,949 1,026,808
----------- ----------- ----------- ----------- -----------
Advisor asset
management fee.. 9,630 45,535 270,000 67,700 92,946
Property operating
expenses........ 4,500 201,513 976,853 179,718 203,712
Interest expense.. - 145,687 - - -
Depreciation...... 10,667 113,333 675,000 163,333 232,366
----------- ----------- ----------- ----------- -----------
Total expenses.... 24,797 506,068 1,921,853 410,751 529,024
----------- ----------- ----------- ----------- -----------
Net income (loss). $ 75,203 75,696 643,564 415,198 497,784
=========== =========== =========== =========== ===========
Total 1998
Riverplace Rose Acquisitions
Center Place Pro Forma
----------- ----------- ------------
Rental income..... 600,248 110,345 23,298,526
Additional rental
income.......... 169,381 31,200 9,096,603
----------- ----------- ------------
Total income...... 769,629 141,545 32,395,129
----------- ----------- ------------
Advisor asset
management fee.. 60,659 11,470 2,448,446
Property operating
expenses........ 190,688 37,569 11,987,265
Interest expense.. - - 1,284,941
Depreciation...... 151,647 28,676 6,093,041
----------- ----------- ------------
Total expenses.... 402,994 77,715 21,813,693
----------- ----------- ------------
Net income (loss). 366,635 63,830 10,581,436
=========== =========== ============
F-24
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Woodfield Plaza, Schaumburg, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Woodfield Plaza
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $2,235,315 - 2,235,315
Additional rental income.. 755,071 - 755,071
----------- ----------- -----------
Total income.............. 2,990,386 - 2,990,386
----------- ----------- -----------
Advisor asset
management fee.......... - 192,000 192,000
Property operating
expenses................ 801,632 72,160 873,792
Depreciation.............. - 483,000 483,000
----------- ----------- -----------
Total expenses............ 801,632 747,160 1,548,792
----------- ----------- -----------
Net income (loss)......... $2,188,754 (747,160) 1,441,594
=========== =========== ===========
Acquisition of Coopers Grove, Country Club Hills, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Coopers Grove
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 577,096 - 577,096
Additional rental income.. 401,492 - 401,492
----------- ----------- -----------
Total income.............. 978,588 - 978,588
----------- ----------- -----------
Advisor asset
management fee.......... - 58,000 58,000
Property operating
expenses................ 428,031 60,036 488,067
Depreciation.............. - 146,600 146,600
----------- ----------- -----------
Total expenses............ 428,031 264,636 692,667
----------- ----------- -----------
Net income (loss)......... $ 550,557 (264,636) 285,921
=========== =========== ===========
F-25
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of West Chicago Dominick's, West Chicago, Illinois
This pro forma adjustment reflects the purchase of West Chicago Dominick's
as if the Company had acquired the property as of January 1, 1997, and is
based on information provided by the Seller.
West Chicago Dominick's
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 628,320 - 628,320
Additional rental income.. - - -
----------- ----------- -----------
Total income.............. 628,320 - 628,320
----------- ----------- -----------
Advisor asset
management fee.......... - 63,000 63,000
Property operating
expenses................ - 18,850 18,850
Depreciation.............. - 157,500 157,500
----------- ----------- -----------
Total expenses............ - 239,350 239,350
----------- ----------- -----------
Net income (loss)......... $ 628,320 (239,350) 388,970
=========== =========== ===========
Acquisition of Maple Plaza, Downers Grove, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Maple Plaza
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 369,317 - 369,317
Additional rental income.. 129,431 - 129,431
----------- ----------- -----------
Total income.............. 498,748 - 498,748
----------- ----------- -----------
Advisor asset
management fee.......... - 31,650 31,650
Property operating
expenses................ 133,667 - 133,667
Depreciation.............. - 83,400 83,400
----------- ----------- -----------
Total expenses............ 133,667 115,050 248,717
----------- ----------- -----------
Net income (loss)......... $ 365,081 (115,050) 250,031
=========== =========== ===========
F-26
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Lake Park Plaza, Michigan City, Indiana
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Lake Park Plaza
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,216,080 - 1,216,080
Additional rental income.. 472,163 - 472,163
----------- ----------- -----------
Total income.............. 1,688,243 - 1,688,243
----------- ----------- -----------
Advisor asset
management fee.......... - 122,750 122,750
Property operating
expenses................ 467,427 75,971 543,398
Depreciation.............. - 293,000 293,000
----------- ----------- -----------
Total expenses............ 467,427 491,721 959,148
----------- ----------- -----------
Net income (loss)......... $1,220,816 (491,721) 729,095
=========== =========== ===========
Acquisition of Homewood Plaza, Homewood, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X to the Pro Forma Adjustments:
Homewood Plaza
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 200,375 - 200,375
Additional rental income.. 132,016 - 132,016
----------- ----------- -----------
Total income.............. 332,391 - 332,391
----------- ----------- -----------
Advisor asset
management fee.......... - 19,363 19,363
Property operating
expenses................ 166,951 - 166,951
Depreciation.............. - 46,500 46,500
----------- ----------- -----------
Total expenses............ 166,951 65,863 232,814
----------- ----------- -----------
Net income (loss)......... $ 165,440 (65,863) 99,577
=========== =========== ===========
F-27
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Wisner Plaza, Chicago, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X to the Pro Forma Adjustments:
Wisner Plaza
-----------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 206,312 - 206,312
Additional rental income.. 59,636 - 59,636
----------- ----------- -----------
Total income.............. 265,948 - 265,948
----------- ----------- -----------
Advisor asset
management fee.......... - 18,853 18,853
Property operating
expenses................ 101,312 - 101,312
Depreciation.............. - 45,900 45,900
----------- ----------- -----------
Total expenses............ 101,312 64,753 166,065
----------- ----------- -----------
Net income (loss)......... $ 164,636 (64,753) 99,883
=========== =========== ===========
Acquisition of Elmhurst City Center, Elmhurst, Illinois
This pro forma adjustment reflects the purchase of Elmhurst City Center as
if the Company had acquired the property as of January 1, 1997, and is
based on information provided by the Seller.
Elmhurst City Center
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 508,377 - 508,377
Additional rental income.. 95,827 - 95,827
----------- ----------- -----------
Total income.............. 604,204 - 604,204
----------- ----------- -----------
Advisor asset
management fee.......... - 47,750 47,750
Property operating
expenses................ 140,836 - 140,836
Depreciation.............. - 119,375 119,375
----------- ----------- -----------
Total expenses............ 140,836 167,125 307,961
----------- ----------- -----------
Net income (loss)......... $ 463,368 (167,125) 296,243
=========== =========== ===========
F-28
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Mill Creek, Palos Park, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Mill Creek
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,085,374 - 1,085,374
Additional rental income.. 725,135 - 725,135
----------- ----------- -----------
Total income.............. 1,810,509 - 1,810,509
----------- ----------- -----------
Advisor asset
management fee.......... - 113,600 113,600
Property operating
expenses................ 778,792 45,000 823,792
Interest expense.......... - 760,000 760,000
Depreciation.............. - 272,500 272,500
----------- ----------- -----------
Total expenses............ 778,792 1,191,100 1,969,892
----------- ----------- -----------
Net income (loss)......... $1,031,537 (1,191,100) (159,383)
=========== =========== ===========
Acquisition of Prairie Square, Sun Prairie, Wisconsin
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X to the Pro Forma Adjustments:
Prairie Square
-----------------------------------
Year Ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 315,796 - 315,796
Additional rental income.. 87,777 - 87,777
----------- ----------- -----------
Total income.............. 403,573 - 403,573
----------- ----------- -----------
Advisor asset
management fee.......... - 31,000 31,000
Property operating
expenses................ 130,448 - 130,448
Depreciation.............. - 87,800 87,800
----------- ----------- -----------
Total expenses............ 130,448 118,800 249,248
----------- ----------- -----------
Net income (loss)......... $ 273,125 (118,800) 154,325
=========== =========== ===========
F-29
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of St. James Crossing, Westmont, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
St. James Crossing
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 720,615 - 720,615
Additional rental income.. 183,197 - 183,197
----------- ----------- -----------
Total income.............. 903,812 - 903,812
----------- ----------- -----------
Advisor asset
management fee.......... - 74,770 74,770
Property operating
expenses................ 257,225 8,000 265,225
Depreciation.............. - 187,000 187,000
----------- ----------- -----------
Total expenses............ 257,225 269,770 526,995
----------- ----------- -----------
Net income (loss)......... $ 646,587 (269,770) 376,817
=========== =========== ===========
Acquisition of Chestnut Court, Darien, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Chestnut Court
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,197,317 - 1,197,317
Lease termination income.. 765,504 (765,504) -
Additional rental income.. 306,682 - 306,682
----------- ----------- -----------
Total income.............. 2,269,503 (765,504) 1,503,999
----------- ----------- -----------
Advisor asset
management fee.......... - 161,440 161,440
Property operating
expenses................ 593,967 - 593,967
Depreciation.............. - 403,600 403,600
----------- ----------- -----------
Total expenses............ 593,967 565,040 1,159,007
----------- ----------- -----------
Net income (loss)......... $1,675,536 (1,330,544) 344,992
=========== =========== ===========
F-30
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Bergen Plaza, Oakdale, Minnesota
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Bergen Plaza
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,681,564 - 1,681,564
Additional rental income.. 980,649 - 980,649
----------- ----------- -----------
Total income.............. 2,662,213 - 2,662,213
----------- ----------- -----------
Advisor asset
management fee.......... - 172,477 172,477
Property operating
expenses................ 1,105,206 - 1,105,206
Depreciation.............. - 431,200 431,200
----------- ----------- -----------
Total expenses............ 1,105,206 603,677 1,708,883
----------- ----------- -----------
Net income (loss)......... $1,557,007 (603,677) 953,330
=========== =========== ===========
Acquisition of Western & Howard, Chicago, Illinois
This pro forma adjustment reflects the purchase of Western & Howard as if
the Company had acquired the property as of January 1, 1997, and is based
on information provided by the Seller.
Western & Howard
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 210,288 - 210,288
Additional rental income.. 69,180 - 69,180
----------- ----------- -----------
Total income.............. 279,468 - 279,468
----------- ----------- -----------
Advisor asset
management fee.......... - 19,130 19,130
Property operating
expenses................ 88,145 - 88,145
Depreciation.............. - 47,825 47,825
----------- ----------- -----------
Total expenses............ 88,145 66,955 155,100
----------- ----------- -----------
Net income (loss)......... $ 191,323 (66,955) 124,368
=========== =========== ===========
F-31
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Berwyn Plaza, Berwyn, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Berwyn Plaza
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 176,345 - 176,345
Additional rental income.. 131,460 - 131,460
----------- ----------- -----------
Total income.............. 307,805 - 307,805
----------- ----------- -----------
Advisor asset
management fee.......... - 18,370 18,730
Property operating
expenses................ 135,830 12,000 147,830
Depreciation.............. - 45,925 45,925
----------- ----------- -----------
Total expenses............ 135,830 76,295 212,125
----------- ----------- -----------
Net income (loss)......... $ 171,975 (76,295) 95,680
=========== =========== ===========
Acquisition of Wauconda, Wauconda, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Wauconda
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 230,703 - 230,703
Additional rental income.. 72,913 - 72,913
----------- ----------- -----------
Total income.............. 303,616 - 303,616
----------- ----------- -----------
Advisor asset
management fee.......... - 25,250 25,250
Property operating
expenses................ 72,912 - 72,912
Depreciation.............. - 63,125 63,125
----------- ----------- -----------
Total expenses............ 72,912 88,375 161,287
----------- ----------- -----------
Net income (loss)......... $ 230,704 (88,375) 142,329
=========== =========== ===========
F-32
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of High Point Centre, Madison, Wisconsin
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
High Point Centre
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,078,701 - 1,078,701
Additional rental income.. 251,518 - 251,518
----------- ----------- -----------
Total income.............. 1,330,219 - 1,330,219
----------- ----------- -----------
Advisor asset
management fee.......... - 103,540 103,540
Property operating
expenses................ 258,583 47,000 305,583
Depreciation.............. - 308,437 308,437
----------- ----------- -----------
Total expenses............ 258,583 458,977 717,560
----------- ----------- -----------
Net income (loss)......... $1,071,636 (458,977) 612,659
=========== =========== ===========
Acquisition of Woodland Heights, Streamwood, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Woodland Heights
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 684,840 - 684,840
Additional rental income.. 754,544 - 754,544
----------- ----------- -----------
Total income.............. 1,439,384 - 1,439,384
----------- ----------- -----------
Advisor asset
management fee.......... - 96,000 96,000
Property operating
expenses................ 844,901 - 844,901
Depreciation.............. - 233,333 233,333
----------- ----------- -----------
Total expenses............ 844,901 329,333 1,174,234
----------- ----------- -----------
Net income (loss)......... $ 594,483 (329,333) 265,150
=========== =========== ===========
F-33
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Walgreens, Woodstock, Illinois
This pro forma adjustment reflects the purchase of the Walgreens property
as if the Company had acquired the property as of January 1, 1997, and is
based on information provided by the seller.
Walgreens
------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 110,800 - 110,800
Additional rental income.. - - -
----------- ----------- -----------
Total income.............. 110,800 - 110,800
----------- ----------- -----------
Advisor asset
management fee.......... - 11,620 11,620
Property operating
expenses................ - 4,986 4,986
Depreciation.............. - 25,333 25,333
----------- ----------- -----------
Total expenses............ - 41,939 41,939
----------- ----------- -----------
Net income (loss)......... $ 110,800 (41,939) 68,861
=========== =========== ===========
Acquisition of Winnetka Commons, New Hope, Minnesota
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Winnetka Commons
-----------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 453,321 - 453,321
Additional rental income.. 343,033 - 343,033
----------- ----------- -----------
Total income.............. 796,354 - 796,354
----------- ----------- -----------
Advisor asset
management fee.......... - 44,350 44,350
Property operating
expenses................ 327,566 - 327,566
Depreciation.............. - 93,333 93,333
----------- ----------- -----------
Total expenses............ 327,566 137,683 465,249
----------- ----------- -----------
Net income (loss)......... $ 468,788 (137,683) 331,105
=========== =========== ===========
F-34
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Schaumburg Plaza, Schaumburg, Illinois
This pro forma adjustment reflects the purchase of Schaumburg Plaza as if
the Company had acquired the property as of January 1, 1997, and is based
on information provided by the Seller.
Schaumburg Plaza
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 734,658 - 734,658
Additional rental income.. 315,191 - 315,191
----------- ----------- -----------
Total income.............. 1,049,849 - 1,049,849
----------- ----------- -----------
Advisor asset
management fee.......... - 69,873 69,873
Property operating
expenses................ 511,999 - 511,999
Interest expense.......... 379,254 - 379,254
Depreciation.............. - 173,333 173,333
----------- ----------- -----------
Total expenses............ 891,253 243,206 1,134,459
----------- ----------- -----------
Net income (loss)......... $ 158,596 (243,206) (84,610)
=========== =========== ===========
Acquisition of Eastgate, Lombard, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Eastgate
------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 844,830 - 844,830
Additional rental income.. 200,749 - 200,749
----------- ----------- -----------
Total income.............. 1,045,579 - 1,045,579
----------- ----------- -----------
Advisor asset
management fee.......... - 77,310 77,310
Property operating
expenses................ 436,950 - 436,950
Depreciation.............. - 172,500 172,500
----------- ----------- -----------
Total expenses............ 436,950 249,810 686,760
----------- ----------- -----------
Net income (loss)......... $ 608,629 (249,810) 358,819
=========== =========== ===========
F-35
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Park Center, Tinley Park, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Park Center
------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,386,980 - 1,386,980
Additional rental income.. 532,465 - 532,465
----------- ----------- -----------
Total income.............. 1,919,445 - 1,919,445
----------- ----------- -----------
Advisor asset
management fee.......... - 155,000 155,000
Property operating
expenses................ 1,191,299 19,194 1,210,493
Depreciation.............. - 387,500 387,500
----------- ----------- -----------
Total expenses............ 1,191,299 561,694 1,752,993
----------- ----------- -----------
Net income (loss)......... $ 728,146 (561,694) 166,452
=========== =========== ===========
Acquisition of Fairview Heights Plaza, Fairview Heights, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Fairview Heights
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,280,215 - 1,280,215
Additional rental income.. 315,356 - 315,356
----------- ----------- -----------
Total income.............. 1,595,571 - 1,595,571
----------- ----------- -----------
Advisor asset
management fee.......... - 112,410 112,410
Property operating
expenses................ 377,902 7,978 385,880
Depreciation.............. - 283,333 283,333
----------- ----------- -----------
Total expenses............ 377,902 403,721 781,623
----------- ----------- -----------
Net income (loss)......... $1,217,669 (403,721) 813,948
=========== =========== ===========
F-36
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Orland Greens, Orland Park, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Orland Greens
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 442,337 - 442,337
Additional rental income.. 492,656 - 492,656
----------- ----------- -----------
Total income.............. 934,993 - 934,993
----------- ----------- -----------
Advisor asset
management fee.......... - 51,000 51,000
Property operating
expenses................ 465,281 4,675 469,956
Depreciation.............. - 126,667 126,667
----------- ----------- -----------
Total expenses............ 465,281 182,342 647,623
----------- ----------- -----------
Net income (loss)......... $ 469,712 (182,342) 287,370
=========== =========== ===========
Acquisition of Bakers Shoes, Chicago, Illinois
This pro forma adjustment reflects the purchase of Bakers Shoes as if the
Company had acquired the property as of January 1, 1997, and is based on
information provided by the Seller.
Bakers Shoes
------------------------------------
Year Ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 100,000 - 100,000
Additional rental income.. - - -
----------- ----------- -----------
Total income.............. 100,000 - 100,000
----------- ----------- -----------
Advisor asset
management fee.......... - 9,630 9,630
Property operating
expenses................ 4,500 - 4,500
Depreciation.............. - 10,667 10,667
----------- ----------- -----------
Total expenses............ 4,500 20,297 24,797
----------- ----------- -----------
Net income (loss)......... $ 95,500 (20,297) 75,203
=========== =========== ===========
F-37
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Edinburgh Festival Center, Brooklyn Park, Minnesota
Reconciliation of Gross income and Direct Operating Expenses for the period
from July 1, 1997 (commencement of operations) to December 31, 1997
prepared in accordance with Rule 3.14 of Regulation S-X (*) to the Pro
Forma Adjustments:
Edinburgh Festival Center
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 413,667 - 413,667
Additional rental income.. 168,097 - 168,097
----------- ----------- -----------
Total income.............. 581,764 - 581,764
----------- ----------- -----------
Advisor asset
management fee.......... - 45,535 45,535
Property operating
expenses................ 201,513 - 201,513
Interest expense.......... 145,687 - 145,687
Depreciation.............. - 113,333 113,333
----------- ----------- -----------
Total expenses............ 347,200 158,868 506,068
----------- ----------- -----------
Net income (loss)......... $ 234,564 (158,868) 75,696
=========== =========== ===========
Acquisition of Woodfield Commons, Schaumburg, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Woodfield Commons
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $1,921,834 - 1,921,834
Additional rental income.. 643,583 - 643,583
----------- ----------- -----------
Total income.............. 2,565,417 - 2,565,417
----------- ----------- -----------
Advisor asset
management fee.......... - 270,000 270,000
Property operating
expenses................ 931,032 45,821 976,853
Depreciation.............. - 675,000 675,000
----------- ----------- -----------
Total expenses............ 931,032 990,821 1,921,853
----------- ----------- -----------
Net income (loss)......... $1,634,385 (990,821) 643,564
=========== =========== ===========
F-38
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Two Rivers, Bolingbrook, Illinois
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X (*) to the Pro Forma Adjustments:
Two Rivers
-------------------------------------
*As Pro Forma
Reported Adjustments Total
----------- ----------- -----------
Rental income............. $ 678,750 - 678,750
Additional rental income.. 147,199 - 147,199
----------- ----------- -----------
Total income.............. 825,949 - 825,949
----------- ----------- -----------
Advisor asset
management fee.......... - 67,700 67,700
Property operating
expenses................ 179,718 - 179,718
Depreciation.............. - 163,333 163,333
----------- ----------- -----------
Total expenses............ 179,718 231,033 410,751
----------- ----------- -----------
Net income (loss)......... $ 646,231 (231,033) 415,198
=========== =========== ===========
Acquisition of Springboro Plaza, Springboro, Ohio
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X to the Pro Forma Adjustments:
Springboro Plaza
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 897,806 - 897,806
Additional rental income.. 129,002 - 129,002
----------- ----------- -----------
Total income.............. 1,026,808 - 1,026,808
----------- ----------- -----------
Advisor asset
management fee.......... - 92,946 92,946
Property operating
expenses................ 184,841 18,871 203,712
Depreciation.............. - 232,366 232,366
----------- ----------- -----------
Total expenses............ 184,841 344,183 529,024
----------- ----------- -----------
Net income (loss)......... $ 841,967 (344,183) 497,784
=========== =========== ===========
F-39
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
Acquisition of Riverplace Center, Noblesville, Indiana
Reconciliation of Gross income and Direct Operating Expenses for the year
ended December 31, 1997 prepared in accordance with Rule 3.14 of Regulation
S-X to the Pro Forma Adjustments:
Riverplace Center
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 600,248 - 600,248
Additional rental income.. 169,381 - 169,381
----------- ----------- -----------
Total income.............. 769,629 - 769,629
----------- ----------- -----------
Advisor asset
management fee.......... - 60,659 60,659
Property operating
expenses................ 173,304 17,384 190,688
Depreciation.............. - 151,647 151,647
----------- ----------- -----------
Total expenses............ 173,304 229,690 402,994
----------- ----------- -----------
Net income (loss)......... $ 596,325 (229,690) 366,635
=========== =========== ===========
Acquisition of Rose Plaza, Elmwood Park, Illinois
This pro forma adjustment reflects the purchase of Rose Plaza as if the
Company had acquired the property as of August 1, 1997 (the date operations
commenced), and is based on information provided by the Seller.
Rose Plaza
-------------------------------------
Year ended
December 31, Pro Forma
1997 Adjustments Total
----------- ----------- -----------
Rental income............. $ 110,345 - 110,345
Additional rental income.. 31,200 - 31,200
----------- ----------- -----------
Total income.............. 141,545 - 141,545
----------- ----------- -----------
Advisor asset
management fee.......... - 11,470 11,470
Property operating
expenses................ 37,569 - 37,569
Depreciation.............. - 28,676 28,676
----------- ----------- -----------
Total expenses............ 37,569 40,146 77,715
----------- ----------- -----------
Net income (loss)......... $ 103,976 (40,146) 63,830
=========== =========== ===========
F-40
Inland Real Estate Corporation
Notes to Pro Forma Statement of Operations
(continued)
For the year ended December 31, 1997
(unaudited)
(D) No pro forma adjustment has been made relating to interest income which
would have been earned on the additional Offering Proceeds raised.
(E) Depreciation expense is computed using the straight-line method, based upon
an estimated useful life of thirty years.
(F) The pro forma weighted average common stock shares for the year ended
December 31, 1997 was calculated by estimating the additional shares sold
to purchase each of the Company's properties on a weighted average basis.
(G) Advisor Asset Management Fees are calculated as 1% of the Average Invested
Assets (as defined).
F-41
