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Previous: NUR MACROPRINTERS LTD, 20-F/A, 1998-11-10 |
Next: MERIDIAN INDUSTRIAL TRUST INC, 8-K, 1998-11-10 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: November 10, 1998
-----------------
MERIDIAN INDUSTRIAL TRUST, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-14166 94-3224765
- --------------------------------------------------------------------------------
(State of Organization) (Commission Number) (IRS Employer I.D. #)
455 Market Street, 17th Floor, San Francisco, California 94105
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (415) 281-3900
-----------------
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
Meridian Industrial Trust, Inc. (the "Company") is filing the attached
information in connection with the announcement of its third quarter results.
The attached information contains statements that constitute
forward-looking information. The forward-looking information includes
statements regarding development in progress and future lease expirations. The
Company's actual results may differ significantly from the results discussed in
these statements. Factors that could cause such differences include, but are
not limited to, the overall United States economy, local market conditions,
interest rates, competition, lease turnover, absorption rates and property
characteristics discovered during the development process. For further
information on these and other factors that could impact the Company and the
statements contained in the attached information, reference should be made to
the Company's filings with the Securities and Exchange Commission, including
risk factors discussed in the Company's Annual Report on Form 10-K for the year
ended December 31, 1997, as amended.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION, AND EXHIBITS.
(c) EXHIBITS. The following exhibit is attached to this report:
99-1 Supplemental Information dated September 30, 1998.
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MERIDIAN INDUSTRIAL TRUST, INC.
Date: November 10, 1998 By:
-----------------------------
Robert A. Dobbin
Secretary
<PAGE>
MERIDIAN INDUSTRIAL TRUST
SUPPLEMENTAL INFORMATION
SEPTEMBER 30, 1998
- --------------------------------------------------------------------------------
[LOGO] MERIDIAN INDUSTRIAL TRUST
455 Market Street, 17th Floor, San Francisco, California 94105
(415) 281-3900
ht.//www.MIT-REIT.com
<PAGE>
[LETTERHEAD]
<TABLE>
<CAPTION>
TABLE OF CONTENTS
Page
<S> <C>
Financial Highlights 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Funds From Operations 4
Portfolio Summary 5
Leasing Activity and Lease Expirations 6
Fifteen Largest Tenants 7
Investment Summary 8
Property Acquisitions and Divestitures 9
Completed Developments 10
Land Acquisitions and Land Inventory 11
Properties Under Development 12
Capital Structure 13
Debt Summary 14
</TABLE>
This Supplemental Information report contains statements which constitute
forward looking information regarding the (i) potential acquisitions and
property developments by the Company; (ii) trends affecting the Company's
financial condition or results of operations; and (iii) the Company's growth
strategy, operating strategy and financing strategy. The Company's actual
results may differ significantly from the results discussed in the forward
looking statements. Certain factors that might cause such a difference are
disclosed in the Company's filings with the Securities and Exchange Commission.
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
FINANCIAL HIGHLIGHTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
UNAUDITED
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- --------------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues $ 32,962 $ 15,033 $ 89,883 $ 39,901
Net Income (Loss) Allocable to Common (732) 4,178 20,686 10,445
Funds From Operations Allocable to Common (1) 16,860 7,365 48,262 20,476
PER SHARE FUNDS FROM OPERATIONS ALLOCABLE TO COMMON (1):
Basic $ 0.54 $ 0.51 $ 1.58 $ 1.47
Diluted $ 0.50 $ 0.42 $ 1.44 $ 1.23
Dividends per Common Share $ 0.33 $ 0.29 $ 0.99 $ 0.87
RATIOS:
Interest Coverage Ratio (2) 3.4 3.4 3.8 4.1
Funds From Operations Payout Ratio (1) 65.2% 91.4% 67.1% 78.3%
<CAPTION>
AS OF SEPTEMBER 30, AS OF DEC. 31,
1998 1997
------------------- -------------------
<S> <C> <C>
ASSETS:
Investments in Real Estate Assets Before Accumulated Depreciation $ 1,106,799 $ 844,739
Total Assets 1,177,627 863,512
CAPITALIZATION (3):
Mortgage Loans $ 87,312 $ 76,597
Unsecured Debt 395,402 180,609
------------------- -------------------
Total Debt $ 482,714 $ 257,206
------------------- -------------------
Total Shares Outstanding 33,780,490 32,438,389
Common Share Market Price $ 22.13 $ 25.50
Equity Value $ 797,393 $ 827,179
Total Market Capitalization $ 1,280,107 $ 1,084,385
------------------- -------------------
------------------- -------------------
Debt/Total Market Capitalization 37.7% 23.7%
</TABLE>
(1) See Funds From Operations schedule on page 4.
(2) Funds From Operations plus interest expense divided by interest expense.
Interest expense excludes amortization of deferred loan fees.
(3) Includes 2,000,000 shares of Series D Redeemable Preferred Stock valued at
$50,000 and 483,087 limited partnership units which are convertible to
Common Stock as of September 30, 1998. See summary of capital structure on
page 13.
MERIDIAN INDUSTRIAL TRUST
PAGE 1 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 1998 AND DECEMBER 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSETS SEPTEMBER 30, 1998 DECEMBER 31,1997
(UNAUDITED) (AUDITED)
------------------ ----------------
<S> <C> <C>
INVESTMENT IN REAL ESTATE ASSETS:
Rental Properties Held for Investment $ 1,085,299 $ 813,389
Less: Accumulated Depreciation (29,005) (14,374)
Rental Properties Held for Divestiture - 9,492
------------------ ----------------
1,056,294 808,507
Investment in Unconsolidated Joint Venture 21,500 21,500
------------------ ----------------
TOTAL INVESTMENT IN REAL ESTATE ASSETS 1,077,794 830,007
OTHER ASSETS:
Investments in and Advances to Unconsolidated Subsidiaries 45,907 -
Cash and Cash Equivalents 6,091 8,847
Restricted Cash and Cash Held in Escrow 8,356 11,267
Note Receivable 8,000 -
Accounts Receivable, Net 6,989 3,460
Capitalized Loan Fees, Lease Commissions and Other Assets, Net 24,490 9,931
------------------ ----------------
TOTAL ASSETS $ 1,177,627 $ 863,512
------------------ ----------------
------------------ ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unsecured Notes, Net $ 160,102 $ 160,109
Mortgage Loans, Net 87,312 76,597
Unsecured Credit Facility 235,300 20,500
Accrued Dividends Payable 11,714 9,473
Accounts Payable, Prepaid Rent, Tenant Deposits and Other Liabilities 38,157 21,562
------------------ ----------------
TOTAL LIABILITIES 532,585 288,241
------------------ ----------------
MINORITY INTEREST IN CONSOLIDATED LIMITED PARTNERSHIPS 17,605 5,132
------------------ ----------------
STOCKHOLDERS' EQUITY:
Series B Preferred Stock at $0.001 par value 2 2
Series D Preferred Stock at $0.001 par value 2 -
Common Stock at $0.001 par value 31 30
Additional Paid-in Capital 642,041 574,848
Distributions in Excess of Income (14,639) (4,741)
------------------ ----------------
TOTAL STOCKHOLDERS' EQUITY 627,437 570,139
------------------ ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,177,627 $ 863,512
------------------ ----------------
------------------ ----------------
</TABLE>
MERIDIAN INDUSTRIAL TRUST
PAGE 2 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
UNAUDITED
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- --------------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Rentals from Real Estate Investments (1) $ 31,073 $ 14,707 $ 85,726 $ 39,271
Interest and Other Income 609 326 1,138 630
Income From Unconsolidated Subsidiaries and
Joint Venture 1,280 - 3,019 -
---------- ---------- ---------- ----------
TOTAL REVENUES 32,962 15,033 89,883 39,901
---------- ---------- ---------- ----------
EXPENSES:
Interest (2) 7,007 3,084 17,488 6,868
Interest on Hedge Contract (3) 12,633 - 12,633 -
Property Taxes 4,076 1,905 10,900 5,298
Property Operating 2,316 1,246 6,579 3,288
General and Administrative 2,040 1,413 6,015 3,914
Depreciation and Amortization 6,259 2,485 16,729 6,701
---------- ---------- ---------- ----------
TOTAL EXPENSES 34,331 10,133 70,344 26,069
---------- ---------- ---------- ----------
Income (Loss) Before Minority Interest, Gain (Loss) on
Divestiture of Properties and Extraordinary Item (1,369) 4,900 19,539 13,832
Minority Interest in Net (Income) (176) - (423) -
Gain (Loss) on Divestiture of Properties, Net 2,442 (17) 4,497 (465)
Extraordinary Item - - - (808)
---------- ---------- ---------- ----------
NET INCOME $ 897 $ 4,883 $ 23,613 $ 12,559
Less Preferred Stock Dividends Declared:
Series B Preferred Stock (535) (705) (1,821) (2,114)
Series D Preferred Stock (1,094) - (1,106) -
---------- ---------- ---------- ----------
NET INCOME (LOSS) ALLOCABLE TO COMMON $ (732) $ 4,178 $ 20,686 $ 10,445
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
(1) Includes $1,386 and $650 for straight-line rents for the three months ended
September 30, 1998 and 1997, respectively, and $3,279 and $1,501 for the
nine months ended September 30, 1998 and 1997, respectively.
(2) Includes $102 and $44 of amortization of loan fees for the three months
ended September 30, 1998 and 1997, respectively and $304 and $220 for the
nine months ended September 30, 1998 and 1997, respectively.
(3) Represents the cost incurred in terminating an interest rate protection
agreement that the Company entered into in May 1998 in anticipation of a
public debt offering. As the result of unfavorable market conditions, the
Company currently has no plans for a debt offering in 1998.
MERIDIAN INDUSTRIAL TRUST
PAGE 3 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
UNAUDITED
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- --------------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
NET INCOME $ 897 $ 4,883 $ 23,613 $ 12,559
ADD (SUBTRACT):
Real Estate Depreciation and Amortization 6,690 2,465 17,240 6,644
(Gain) Loss on Divestiture of Properties (2,442) 17 (4,497) 465
Extraordinary Item - - - 808
Minority Interest in Net Income 176 - 379 -
Interest on Hedge Contract 12,633 - 12,633 -
---------- ---------- ---------- ----------
FUNDS FROM OPERATIONS 17,954 7,365 49,368 20,476
Series D Preferred Stock Dividends (1,094) - (1,106) -
---------- ---------- ---------- ----------
FUNDS FROM OPERATIONS ALLOCABLE TO COMMON (1) $ 16,860 $ 7,365 $ 48,262 $ 20,476
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
PER SHARE FUNDS FROM OPERATIONS ALLOCABLE TO COMMON:
Basic $ 0.54 $ 0.51 $ 1.58 $ 1.47
Diluted $ 0.50 $ 0.42 $ 1.44 $ 1.23
Dividends per Common Share $ 0.33 $ 0.29 $ 0.99 $ 0.87
Funds From Operations Payout Ratio (2) 65.2% 91.4% 67.1% 78.3%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 31,492,559 14,569,981 30,622,741 13,925,269
Diluted (3) 33,923,657 17,339,432 33,450,207 16,652,223
</TABLE>
(1) The Company calculates funds from operations (FFO) in accordance with the
white paper published by the National Association of Real Estate Investment
Trusts, Inc. FFO means net income (loss), (computed in accordance with
generally accepted accounting principles), excluding gains (or losses) from
debt restructuring, divestiture of property and significant non-recurring
items that materially distort the comparative measurement of the Company
over time, plus depreciation and amortization relating to real property,
and after adjustments from unconsolidated partnerships and joint ventures.
(2) Includes quarterly dividends paid to Series B Preferred Stockholders of
$0.33 per share and $0.31 per share in 1998 and 1997, respectively. Also,
reflects cash refunded in connection with three property for stock
transactions completed in 1997 representing dividends for the period prior
to closing, which were accounted for as a purchase price adjustment.
(3) The diluted weighted average common shares outstanding was calculated as if
the outstanding shares of Series B Convertible Preferred Stock, stock
options, warrants and limited partnership units had been converted into
shares of Common Stock. The number of weighted average options, warrants
and limited partnership units outstanding were 807,722 and 496,724 for the
three months ended September 30, 1998 and 1997, respectively, and 778,325
and 454,227 for the nine months ended September 30, 1998 and 1997,
respectively.
MERIDIAN INDUSTRIAL TRUST
PAGE 4 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
PORTFOLIO SUMMARY (1)
AS OF SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
NO. OF OCCUPANCY RENTABLE % OF TOTAL ANNUALIZED % OF TOTAL
MARKET PROPERTIES RATE SQUARE FEET SQUARE FEET BASE RENT BASE RENT
- ------------------- ----------- ---------- ----------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Atlanta 6 100% 759,036 2.6% $ 3,347,840 3.2%
Boston 1 100% 106,964 0.4% 481,338 0.5%
Charlotte 1 100% 558,900 1.9% 1,710,240 1.6%
Chicago 24 93% 2,839,176 9.9% 10,417,470 9.8%
Columbus 8 100% 2,562,941 8.9% 7,968,675 7.5%
Dallas/Ft Worth 48 93% 5,358,940 18.6% 17,107,565 16.1%
Detroit 13 81% 654,338 2.3% 2,728,406 2.6%
Houston 10 98% 1,134,445 3.9% 3,823,328 3.6%
Indianapolis 2 100% 351,629 1.2% 1,174,428 1.1%
LA Basin 56 91% 6,443,884 22.3% 25,473,009 24.0%
Las Vegas 3 100% 612,495 2.1% 3,056,480 2.9%
Little Rock 2 79% 235,250 0.8% 437,138 0.4%
Memphis 14 94% 2,229,353 7.7% 6,213,682 5.9%
Miami 3 91% 219,379 0.8% 1,026,940 1.0%
Minneapolis 1 100% 100,000 0.4% 409,165 0.4%
New Jersey/I-95 11 100% 844,267 2.9% 4,327,526 4.1%
Orlando 2 100% 362,160 1.3% 1,585,992 1.5%
Phoenix 5 100% 587,105 2.0% 2,265,792 2.1%
Richmond 2 97% 145,966 0.5% 1,271,497 1.2%
San Diego 1 100% 186,157 0.7% 1,527,997 1.4%
Seattle 1 65% 237,281 0.8% 951,360 0.9%
SF Bay Area 9 99% 2,185,393 7.6% 8,149,408 7.7%
St. Louis 1 100% 126,642 0.4% 499,992 0.5%
----------- ---------- ----------- ----------- ------------- ------------
Total 224 94% 28,841,701 100.0% $ 105,955,268 100.0%
----------- ---------- ----------- ----------- ------------- ------------
----------- ---------- ----------- ----------- ------------- ------------
</TABLE>
(1) Does not include properties under development and refrigerated distribution
services.
MERIDIAN INDUSTRIAL TRUST
PAGE 5 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
LEASING ACTIVITY (1)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, 1998 ENDED SEPTEMBER 30, 1998
------------------------ ------------------------
<S> <C> <C>
No. of Leases 38 132
Square Feet of Leases 932,502 3,463,981
Average Lease Term in Years 4.28 3.94
Base Rent % Change 8.92% 6.72%
Average TI's & LC's per SF $0.68 $0.95
Tenant Retention 76% 77%
<CAPTION>
LEASE EXPIRATIONS (2)
AS OF SEPTEMBER 30, 1998
% OF TOTAL % OF TOTAL
RENTABLE SQUARE SQUARE FEET ANNUAL BASE ANNUAL BASE
YEAR OF FEET SUBJECT TO REPRESENTED BY RENTS UNDER RENTS REPRESENTED BY
LEASE EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES
------------------ ----------------- ----------------- ----------------- ----------------------
<S> <C> <C> <C> <C>
1998 988,187 4% $ 4,088,998 4%
1999 3,159,733 12% 14,228,125 13%
2000 3,640,165 13% 13,241,559 13%
2001 3,441,585 13% 14,420,987 14%
2002 2,971,204 11% 11,113,773 10%
2003 2,408,858 9% 9,434,288 9%
2004 617,263 2% 2,788,448 3%
2005 2,512,353 9% 8,430,759 8%
2006 2,020,572 8% 7,390,343 7%
2007 1,187,134 4% 5,024,516 5%
Thereafter 4,147,992 15% 15,293,472 14%
----------------- ----------------- ----------------- ----------------------
Total 27,095,046 100% $ 105,455,268 100%
----------------- ----------------- ----------------- ----------------------
----------------- ----------------- ----------------- ----------------------
</TABLE>
(1) Includes new and renewed leases for second generation space signed during
the period. Excludes a retail property in Atlanta consisting of 79,320
square feet.
(2) Excludes a retail property in Atlanta consisting of 79,320 square feet,
which was 100% occupied as of September 30, 1998. Month-to-month tenants
are included as 1998 expirations.
MERIDIAN INDUSTRIAL TRUST
PAGE 6 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
FIFTEEN LARGEST TENANTS
AS OF SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
NUMBER OF SQUARE FEET % OF TOTAL ANNUALIZED % OF TOTAL
TENANT LEASES LEASED PORTFOLIO BASE RENT (1) PORTFOLIO
- ------------------------------------ ----------- ------------- -------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Kraft Foods, Inc. 3 1,127,196 3.9% $ 5,043,574 4.8%
Sears Roebuck & Co. 3 1,814,592 6.3% 4,966,448 4.7%
Freeman Decorating Co. 3 642,238 2.2% 2,552,712 2.4%
General Tire, Inc. 2 632,790 2.2% 2,120,916 2.0%
Leiner Health Products, Inc. 1 558,900 1.9% 1,710,240 1.6%
S.C. Johnson & Sons, Inc. 2 502,500 1.7% 1,660,765 1.6%
Kirk Paper Corp. 1 315,705 1.1% 1,596,456 1.5%
Conopco, Inc. 1 500,004 1.7% 1,475,012 1.4%
Allegiance Healthcare Corp. 1 361,690 1.3% 1,294,127 1.2%
IMI Cornelius, Inc. 2 311,444 1.1% 1,276,920 1.2%
Technicolor Videocassette, Inc. 1 310,736 1.1% 1,132,585 1.1%
Chrysler Corporation 1 317,952 1.1% 1,111,572 1.0%
L.D. Brinkman & Co., Inc. 1 367,744 1.3% 1,055,676 1.0%
Moog Automotive, Inc. 1 209,682 0.7% 966,215 0.9%
International Business Machines 1 150,000 0.5% 966,000 0.9%
----------- ------------- -------------- -------------- ------------
Total 24 8,123,173 28.1% $ 28,929,218 27.3%
----------- ------------- -------------- -------------- ------------
----------- ------------- -------------- -------------- ------------
</TABLE>
(1) Represents annualized base rent from leases in effect as of September 30,
1998.
MERIDIAN INDUSTRIAL TRUST
PAGE 7 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
INVESTMENT SUMMARY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------- ----------------------------------------------------------------
YEAR-TO-DATE SEPTEMBER 30, 1998 JUNE 30, 1998 MARCH 31, 1998
------------------- ------------------ -------------------- --------------------
PROPERTY ACQUISITIONS:
<S> <C> <C> <C> <C>
Rentable Square Feet 3,680,390 1,320,578 1,585,215 774,597
Total Investment Cost (1) $ 146,533,901 $ 45,670,579 $ 56,778,048 $ 44,085,274
Number of Property Acquisitions 30 8 14 8
COMPLETED DEVELOPMENTS:
Rentable Square Feet 2,137,123 1,334,308 802,815 -
Total Investment Cost (1) $ 90,631,016 $ 60,190,786 $ 30,440,230 $ -
Number of Completed Developments 6 3 3 -
LAND ACQUISITIONS:
Acres 245 73 116 56
Total Investment Cost (1) $ 27,870,852 $ 5,959,645 $ 10,912,791 $ 10,998,416
Number of Land Acquisitions 12 3 4 5
PROPERTY DIVESTITURES:
Rentable Square Feet 1,063,817 310,849 571,904 181,064
Sales Price $ 40,425,297 $ 21,785,000 $ 16,760,297 $ 1,880,000
Number of Property Divestitures 7 2 4 1
PROPERTIES UNDER DEVELOPMENT (AS OF THE
END OF THE QUARTER):
Rentable Square Feet N/A 3,112,641 4,446,949 3,781,614
Estimated Development Cost (2) N/A $ 116,860,000 $ 171,409,000 $ 129,481,211
Number of Properties Under Development N/A 8 11 10
MERIDIAN REFRIGERATED, INC.
Acquisitions $ 50,816,000 $ - $ 29,741,000 $ 21,075,000
Cubic Feet 16,400,000 - 9,200,000 7,200,000
Square Feet 631,924 - 332,924 299,000
</TABLE>
(1) Total investment cost includes all costs incurred to date for the property
acquisitions, completed developments and land acquisitions.
(2) Estimated development cost includes all estimated costs to complete
development.
MERIDIAN INDUSTRIAL TRUST
PAGE 8 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
PROPERTY ACQUISITIONS AND DIVESTITURES
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
RENTABLE INVESTMENT
PROPERTY NAME MARKET SQUARE FEET ACQUISITION DATE COST (1)
- ----------------------------- ------------ ------------- ------------------ -------------
<S> <C> <C> <C> <C>
PROPERTY ACQUISITIONS:
8399 Zionsville Rd. Indianapolis 132,525 7/2/98 $ 4,691,751
701 Malaga Place LA Basin 250,000 8/20/98 7,130,490
815 Forestwood Drive Chicago 75,250 8/27/98 3,085,715
260 E. RocBaar Drive Chicago 108,000 8/27/98 4,771,370
20191 Windrow Drive LA Basin 59,338 9/11/98 3,802,490
550 N. Pioneer Avenue SF Bay Area 319,800 9/29/98 10,404,219
6300 S. Watt Avenue SF Bay Area 217,600 9/29/98 6,775,777
2015 N. Mac Arthur Drive SF Bay Area 158,065 9/29/98 5,008,767
------------- -------------
8- PROPERTY ACQUISITIONS 1,320,578 $ 45,670,579
------------- -------------
------------- -------------
<CAPTION>
RENTABLE
PROPERTY NAME MARKET SQUARE FEET DIVESTITURE DATE SALES PRICE
- ----------------------------- ------------ ------------- ------------------ -------------
<S> <C> <C> <C> <C>
PROPERTY DIVESTITURES:
6355 Nancy Ridge Drive LA Basin 5,294 7/31/98 $ 335,000
Marietta Trade Center Atlanta 305,555 9/17/98 21,450,000
------------- -------------
2- PROPERTY DIVESTITURES 310,849 $ 21,785,000
------------- -------------
------------- -------------
</TABLE>
(1) Investment cost includes all costs incurred to date for the property
acquisition.
MERIDIAN INDUSTRIAL TRUST
PAGE 9 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
COMPLETED DEVELOPMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
RENTABLE DATE OF INVESTMENT
PROPERTY NAME MARKET SQUARE FEET STABILIZATION COST (1)
- ----------------------------- ------------ ------------- ------------------ -------------
<S> <C> <C> <C> <C>
2235 Spiegel Drive Columbus 510,408 7/98 $ 19,269,897
Carowinds Boulevard Charlotte 558,900 8/98 21,822,323
4000 Miller Circle North New Jersey/I-95 265,000 9/98 19,098,566
------------- -------------
3- COMPLETED DEVELOPMENTS 1,334,308 $ 60,190,786
------------- -------------
------------- -------------
</TABLE>
(1) Investment cost includes all costs incurred to date for the completed
development.
MERIDIAN INDUSTRIAL TRUST
PAGE 10 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL
LAND AQUISITIONS
FOR THE MONTHS ENDED SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
APPROX. RENTABLE ACQUISITION INVESTMENT
MARKET ACRES SQUARE FEET DATE COST (1)
- ----------------------------- ------------ ----------------- ------------------ -------------
<S> <C> <C> <C> <C>
Indianapolis 58.4 751,840 07/02/98 $ 4,162,442
Orlando 2.5 25,000 07/31/98 599,522
LA Basin 11.6 243,840 09/25/98 1,197,681
------------ --------------- --------------
3- LAND ACQUISITIONS 72.5 1,020,680 $ 5,959,645
------------ --------------- --------------
------------ --------------- --------------
<CAPTION>
LAND INVENTORY
AS OF SEPTEMBER 30, 1998
UNAUDITED
APPROX. RENTABLE
MARKET ACRES SQUARE FEET
------------ ------------- ----------------
<S> <C> <C>
Chicago 47.0 614,000
Dallas 17.7 219,000
Detroit (2) 102.1 1,250,000
Indianapolis 58.4 752,000
LA Basin (3) 122.6 2,405,000
Orlando 71.9 1,043,000
------------- ----------------
Total 419.7 6,283,000
------------- ----------------
------------- ----------------
</TABLE>
(1) Investment cost includes all costs incurred to date for the land
acquisition.
(2) A Purchase and Sale Agreement for this land parcel has been executed.
(3) Includes 77.3 acres which have been acquired and a purchase option for 45.3
acres.
MERIDIAN INDUSTRIAL TRUST
PAGE 11 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
PROPERTIES UNDER DEVELOPMENT
AS OF SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
ESTIMATED ESTIMATED ESTIMATED
RENTABLE DATE OF DATE OF DEVELOPMENT
PROPERTY NAME MARKET SQUARE FEET COMPLETION STABILIZATION (1) COST (2)
- -------------------------- ---------------- ----------- ---------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
2100 Consulate Drive Orlando 75,000 1/98 1/99 $ 3,916,000
Lebanon Pike Circle Nashville 178,630 7/98 12/98 7,282,000
Frankford Trade Center Dallas 709,920 7/98 7/99 19,315,000
2225 Cedars Road Atlanta 249,600 9/98 9/99 6,872,000
Kraft Foods, Inc. New Jersey/I-95 528,670 10/98 10/98 25,169,000
Kraft Foods, Inc. Columbus 163,270 12/98 12/98 12,640,000
Lever Atlanta Atlanta 600,798 12/98 12/98 22,040,000
Meridian Distribution Center LA Basin 606,753 12/98 12/98 19,626,000
----------- ------------
8- PROPERTIES UNDER DEVELOPMENT 3,112,641 $116,860,000
----------- ------------
----------- ------------
</TABLE>
(1) Represents the Company's estimate of the date that the property will reach
stabilization. Properties are considered stabilized for financial
reporting purposes upon the earlier of substantial lease-up or one year
from shell completion. However, there can be no assurance that these
properties will reach stabilization by the date shown.
(2) Estimated development cost includes all estimated costs to complete
development.
MERIDIAN INDUSTRIAL TRUST
PAGE 12 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
CAPITAL STRUCTURE
AS OF SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
AGGREGATE
PRINCIPAL
OUTSTANDING AT
DEBT SEPTEMBER 30, 1998
------------------
<S> <C>
Unsecured Notes 7.25% due November 20, 2007 $ 135,000,000
Unsecured Notes 7.30% due November 20, 2009 25,000,000
------------------
Total Unsecured Notes 160,000,000
Add: Unamortized Debt Premium 102,427
------------------
Total Unsecured Notes Including Debt Premium 160,102,427
------------------
Mortgage Loans 87,312,212
Unsecured Credit Facility 235,300,000
------------------
Total Debt $ 482,714,639
------------------
------------------
<CAPTION>
EQUITY SHARES CONVERSION COMMON STOCK MARKET VALUE
OUTSTANDING (1) RATIO EQUIVALENTS EQUIVALENTS
- ---------------------------------------- ---------------- ------------ -------------- ------------------
<S> <C> <C> <C> <C>
Series B Convertible Preferred Stock (2) 1,623,376 1 : 1 1,623,376 $ 35,917,194
Series D Redeemable Preferred Stock (3) 2,000,000 N/A N/A 50,000,000
Limited Partnership Units (2) 483,087 1 : 1 483,087 10,688,300
Common Stock (2) 31,674,027 N/A 31,674,027 700,787,847
---------------- ------------------
Total Shares and Equity Capitalization 35,780,490 $ 797,393,341
---------------- ------------------
---------------- ------------------
Total Market Capitalization $ 1,280,107,980
------------------
------------------
</TABLE>
(1) The number of common shares outstanding was calculated as if the
outstanding shares of Series B Convertible Preferred Stock and limited
partnership units had been converted to Common Stock, which is consistent
with the methodology used in prior periods.
(2) Market Value Equivalents based on the September 30, 1998 Common Stock
closing price of $22.13.
(3) Based on the liquidation value of $25.00 per share.
MERIDIAN INDUSTRIAL TRUST
PAGE 13 OF 14 SUPPLEMENTAL INFORMATION
<PAGE>
[LOGO] MERIDIAN INDUSTRIAL TRUST
DEBT SUMMARY
AS OF SEPTEMBER 30, 1998
UNAUDITED
<TABLE>
<CAPTION>
PRINCIPAL MATURITIES
OF UNSECURED NOTES
DEBT MATURITY SCHEDULE AND MORTGAGE LOANS UNSECURED CREDIT FACILITY (1)
---------------------- -------------------- -----------------------------
<S> <C> <C> <C>
1998 $ 88,880 Facility Capacity $ 350,000,000
1999 373,162 Outstanding Balance @ 9/30/98 235,300,000
2000 403,092 Remaining Capacity ---------------
2001 435,442 $ 114,700,000
2002 470,389 ---------------
2003 508,161 ---------------
2004 548,982
2005 66,687,344
2006 6,814,830
2007 135,463,519
2008 501,790
THEREAFTER 35,016,621
-------------------
TOTAL $ 247,312,212
-------------------
-------------------
<CAPTION>
% OF TOTAL WEIGHTED WEIGHTED
DEBT ANALYSIS DEBT AVERAGE RATE AVERAGE MATURITY
- ------------- -------------- -------------- ----------------
<S> <C> <C> <C>
Unsecured - Fixed Rate 33.2% 7.26% 9.5 Yrs
Unsecured - Variable Rate 48.7% 6.88% 3.0 Yrs
Secured - Fixed Rate 18.1% 8.42% 7.7 Yrs
</TABLE>
(1) Reflects the Unsecured Credit Facility as amended on October 8, 1998.
The facility amendment included an increase in the facility capacity to
$350,000,000 and an extension of the maturity date to October 8, 2001.
MERIDIAN INDUSTRIAL TRUST
PAGE 14 OF 14 SUPPLEMENTAL INFORMATION
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