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<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: FEBRUARY 18, 1998
MERIDIAN INDUSTRIAL TRUST, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-14166 94-3224765
- --------------------------------------------------------------------------------
(State or Other Jurisdiction) (Commission File Number) (IRS Employer I.D. #)
of Incorporation
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)
This document contains ___ sequentially numbered pages.
The exhibit index is located on page ____.
<PAGE>
ITEM 5. OTHER EVENTS.
The company is filing the attached information in connection with its
announcement of 1997 year-end results of operations.
The attached information contains statements that constitute forward-
looking information. This 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.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION, AND EXHIBITS.
(c) EXHIBITS. The following exhibits are attached to this report:
99.1 Supplemental Information dated December 31, 1997
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.
By: MERIDIAN INDUSTRIAL TRUST, INC.
Date: February 20, 1998 By: /s/ ROBERT A. DOBBIN
-------------------------------
Robert A. Dobbin
Secretary
<PAGE>
MERIDIAN INDUSTRIAL TRUST
SUPPLEMENTAL INFORMATION
December 31, 1997
- --------------------------------------------------------------------------------
MERIDIAN INDUSTRIAL TRUST
455 Market Street, 17th Floor, San Francisco, California 94105
(415) 281-3900
http://www.MIT-REIT.com
<PAGE>
MERIDIAN INDUSTRIAL TRUST
TABLE OF CONTENTS
Page
Financial Highlights 1
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Funds From Operations 4
Portfolio Summary 5
Leasing Activity & Lease Expirations 6
Fifteen Largest Tenants 7
Investment Summary 8
Property Acquisitions 9
Completed Developments 10
Property Dispositions 11
Development In Progress 12
Land Inventory 13
Capital Structure 14
Debt Summary 15
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>
MERIDIAN INDUSTRIAL TRUST
FINANCIAL HIGHLIGHTS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 1997 AND 1996
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended December 31, Year ended December 31,
----------------------------- ------------------------------
1997 1996 1997 1996 (5)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues $ 26,249 $ 11,108 $ 66,150 $ 35,041
Net Income (1) 10,126 3,383 23,958 11,161
Funds from Operations 14,591 5,089 35,067 16,076
Funds from Operations per Share (2) $ 0.46 $ 0.38 $ 1.75 $ 1.50
Dividends per Common Share $ 0.29 $ 0.29 $ 1.16 $ 0.99
Ratios:
Interest Coverage Ratio (3) 4.5 : 1 3.9 : 1 4.2 : 1 3.8 : 1
Funds from Operations Payout Ratio (2) 63.6% 91.3% 67.3% 80.6%
As of December 31,
1997 1996
-------------- --------------
ASSETS:
Investments in Real Estate Assets Before Depreciation $ 844,739 $ 326,349
Total Assets 863,512 333,063
CAPITALIZATION:
Mortgage Loans 76,597 66,094
Unsecured Debt 180,609 11,500
-------------- --------------
Total Debt $ 257,206 $ 77,594
Total Shares Outstanding (4) 32,438 15,868
Common Share Market Price $ 25.50 $ 21.00
Equity Value (4) $ 827,179 $ 333,234
Total Market Capitalization (4) $ 1,084,385 $ 410,828
Debt/Total Market Capitalization 23.7% 18.9%
</TABLE>
(1) Net income is before sale of properties, extraordinary item and preferred
stock dividends declared.
(2) See Funds From Operations schedule on page 4.
(3) Funds from Operations plus interest expense divided by interest expense.
Interest expense excludes amortization of deferred loan fees.
(4) See summary of capital structure on page 14.
(5) The Company commenced real estate operations on February 23, 1996.
Page 1 of 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1997 AND 1996
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSETS 1997 1996
(Unaudited) (Audited)
--------------------- --------------------
<S> <C> <C>
Investment in Real Estate Assets:
Rental Properties Held for Investment $ 813,389 $ 318,671
Less: Accumulated Depreciation (14,374) (4,217)
Rental Properties Held for Sale, Net of Accumulated Depreciation 9,492 7,530
--------------------- --------------------
808,507 321,984
Investment in Unconsolidated Joint Venture 21,500 -
--------------------- --------------------
Total Investment in Real Estate Assets 830,007 321,984
Cash and Cash Equivalents 8,847 2,942
Restricted Cash and Cash Held in Escrow 11,267 2,314
Accounts Receivable, Net 3,460 1,659
Capitalized Loan Fees, Lease Commissions and Other Assets, Net 9,931 4,164
--------------------- --------------------
TOTAL ASSETS $ 863,512 $ 333,063
--------------------- --------------------
--------------------- --------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Unsecured Notes, Net $ 160,109 $ -
Mortgage Loans, Net 76,597 66,094
Unsecured Credit Facility 20,500 11,500
Accrued Dividends Payable 9,473 4,648
Accounts Payable, Prepaid Rent and Other Liabilities 21,562 7,308
--------------------- --------------------
TOTAL LIABILITIES 288,241 89,550
--------------------- --------------------
MINORITY INTEREST IN CONSOLIDATED LIMITED PARTNERSHIPS 5,132 -
--------------------- --------------------
STOCKHOLDERS' EQUITY:
Series B Preferred Shares at $0.001 par value 2 2
Common Shares at $0.001 par value 30 14
Additional Paid-in Capital 574,848 243,683
Distributions in Excess of Income (4,741) (186)
--------------------- --------------------
TOTAL STOCKHOLDERS' EQUITY 570,139 243,513
--------------------- --------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 863,512 $ 333,063
--------------------- --------------------
--------------------- --------------------
</TABLE>
PAGE 2 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 1997 AND 1996
UNAUDITED
(IN THOUSANDS)
<TABLE>
<CAPTION>
Three months ended December 31, Year ended December 31,
------------------------------------ ------------------------------------
REVENUES: 1996 (1)
1997 1996 1997 (Audited)
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Rentals from Real Estate Investments (2) $ 24,220 $ 11,001 $ 63,491 $ 34,465
Interest and Other Income 1,384 107 2,014 576
Income From Unconsolidated Joint Venture 645 - 645 -
----------------- ----------------- ----------------- -----------------
TOTAL REVENUES 26,249 11,108 66,150 35,041
----------------- ----------------- ----------------- -----------------
EXPENSES:
Interest Expense 4,154 1,897 11,022 6,065
Property Taxes 2,896 1,500 8,194 4,769
Property Operating Costs 2,252 1,337 5,540 3,821
General and Administrative 2,298 1,273 6,212 4,273
Depreciation and Amortization 4,493 1,718 11,194 4,952
----------------- ----------------- ----------------- -----------------
TOTAL EXPENSES 16,093 7,725 42,162 23,880
----------------- ----------------- ----------------- -----------------
Income Before Minority Interests, Gain (Loss)
on Sale of Properties and Extraordinary Item 10,156 3,383 23,988 11,161
Minority Interests' Share in Net Income (30) - (30) -
Gain (Loss) on Sale of Properties, Net 3 3,136 (462) 3,313
----------------- ----------------- ----------------- -----------------
Income Before Extraordinary Item 10,129 6,519 23,496 14,474
Extraordinary Item - Expenses Incurred in
Connection with Debt Restructuring and Retirements - - (808) (411)
----------------- ----------------- ----------------- -----------------
NET INCOME $ 10,129 $ 6,519 $ 22,688 $ 14,063
Less: Preferred Dividends Declared (704) (704) (2,818) (2,412)
----------------- ----------------- ----------------- -----------------
NET INCOME ALLOCABLE TO COMMON $ 9,425 $ 5,815 $ 19,870 $ 11,651
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
</TABLE>
(1) The Company commenced real estate operations on February 23, 1996.
(2) Includes $566 and $179 for straight-line rents for the three months ended
December 31, 1997 and 1996, respectively. For the year ended December 31,
1997 and 1996, includes straight-line rents of $2,067 and $732,
respectively.
PAGE 3 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 1997 AND 1996
UNAUDITED
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
Three months ended December 31, Year ended December 31,
------------------------------------ ------------------------------------
1997 1996 1997 1996 (4)
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Net Income $ 10,129 $ 6,519 $ 22,688 $ 14,063
Add back:
Real Estate Depreciation 4,465 1,706 11,109 4,915
Loss (Gain) on Sale of Properties (3) (3,136) 462 (3,313)
Extraordinary Item - - 808 411
----------------- ----------------- ----------------- -----------------
Funds from Operations (1) $ 14,591 $ 5,089 $ 35,067 $ 16,076
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Funds from Operations per Share $ 0.46 $ 0.38 $ 1.75 $ 1.50
Dividends per Common Share $ 0.29 $ 0.29 $ 1.16 $ 0.99
Funds from Operations Payout Ratio (2) 63.6% 91.3% 67.3% 80.6%
Weighted Average Shares Outstanding (3) 31,536,073 13,375,573 20,064,031 10,749,188
</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 and sales of property, plus
depreciation and amortization relating to real property, and after
adjustment from unconsolidated partnerships and joint ventures.
(2) Includes annual dividends paid to Series B Preferred Stockholders of $1.24
per share. 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 number of shares outstanding was calculated as if the 2,272,727
outstanding shares of Series B Convertible Preferred Stock was converted
to Common Stock, which is consistent with the methodology used in prior
periods.
(4) The Company commenced real estate operations on February 23, 1996.
PAGE 4 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
PORTFOLIO SUMMARY (1)
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
REGION NO. OF OCCUPANCY RENTABLE % OF TOTAL ANNUALIZED % OF TOTAL
PROPERTIES RATE SQUARE FEET SQUARE FEET BASE RENT BASE RENT
- ------------------------- ------------- ------------- ------------- ----------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
LA Basin 48 97% 5,584,211 23.2% $ 22,871,083 25.4%
Dallas 41 94% 4,636,593 19.3% 14,220,860 15.8%
Chicago 22 95% 2,655,142 11.0% 10,017,325 11.1%
Memphis 10 100% 1,943,287 8.1% 5,751,038 6.4%
Columbus 6 100% 1,968,283 8.2% 5,746,495 6.4%
Atlanta 7 97% 1,064,591 4.4% 5,639,430 6.3%
SF Bay Area 6 98% 1,124,276 4.7% 5,465,419 6.1%
Houston 10 94% 1,134,445 4.7% 3,339,151 3.7%
Detroit 13 91% 654,321 2.7% 2,840,698 3.2%
New Jersey/I-95 10 100% 579,267 2.4% 2,271,673 2.5%
Phoenix 5 100% 587,105 2.4% 2,259,047 2.5%
Nashville 3 100% 437,552 1.8% 1,402,522 1.6%
Richmond 2 92% 145,799 0.6% 1,320,808 1.5%
San Diego 2 100% 191,451 0.8% 1,260,016 1.4%
Miami 3 99% 219,379 0.9% 1,085,006 1.2%
Seattle 1 75% 237,281 1.0% 1,079,366 1.2%
Orlando 1 100% 242,160 1.0% 1,075,992 1.2%
Indianapolis 1 100% 219,104 0.9% 724,428 0.8%
Little Rock 2 100% 235,250 1.0% 599,642 0.7%
St. Louis 1 100% 126,642 0.5% 499,991 0.6%
Minneapolis 1 100% 100,000 0.4% 421,787 0.4%
------------- ------------- ------------- ----------------- ------------- -------------
TOTAL 195 97% 24,086,139 100% $ 89,891,777 100%
------------- ------------- ------------- ----------------- ------------- -------------
------------- ------------- ------------- ----------------- ------------- -------------
</TABLE>
(1) Does not include properties under development.
PAGE 5 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
LEASING ACTIVITY (1)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C>
No. of Leases 67
Square Feet of Leases 2,295,738
Base Rent % Change 4.53%
Average T.I. & L.C. per SF $0.60
Tenant Retention 52%
</TABLE>
LEASE EXPIRATIONS (2)
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
% 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 3,952,200 17% $ 15,369,667 18%
1999 3,134,235 14% 13,001,375 15%
2000 3,136,308 14% 11,758,995 14%
2001 2,800,194 12% 11,293,304 13%
2002 2,088,003 9% 8,083,992 9%
2003 705,670 3% 3,003,324 3%
2004 428,178 2% 1,449,682 2%
2005 1,982,393 9% 6,223,757 7%
2006 2,167,077 9% 7,866,543 9%
2007 1,005,764 4% 3,644,840 4%
Thereafter 1,508,859 7% 5,352,492 6%
----------------------- -------------------------- ------------------------ -------------------------
Total 22,908,881 100% $ 87,047,971 100%
----------------------- -------------------------- ------------------------ -------------------------
----------------------- -------------------------- ------------------------ -------------------------
</TABLE>
(1) Includes new and renewed leases for second generation space commenced
during the period. Excludes two retail properties in Atlanta consisting of
384,875 square feet. Also excludes month-to-month tenants.
(2) Excludes two retail properties in Atlanta consisting of 384,875 square
feet, which were 92% occupied at 12/31/97. Month-to-month tenants are
included as 1998 expirations.
PAGE 6 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
FIFTEEN LARGEST TENANTS
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
TENANT NUMBER OF SQUARE FEET % OF TOTAL ANNUALIZED % OF TOTAL
LEASES LEASED PORTFOLIO BASE RENT (1) PORTFOLIO
- ---------------------------------------- --------------- ------------------- -------------- ----------------- -----------
<S> <C> <C> <C> <C>
Sears Roebuck And Co. 3 1,814,592 7.5% $ 4,966,448 5.5%
General Tire, Inc. 2 632,790 2.6% 2,120,916 2.4%
Blockbuster Music Corp. 1 260,000 1.1% 1,771,448 2.0%
S.C. Johnson & Son, Inc. 2 502,500 2.1% 1,665,385 1.9%
Kirk Paper Corp. 1 315,705 1.3% 1,412,712 1.6%
Allegiance Healthcare Corp. 1 361,690 1.5% 1,294,127 1.4%
Kraft Foods, Inc. 1 351,788 1.5% 1,278,262 1.4%
Technicolor Videocassette, Inc. 1 310,736 1.3% 1,132,585 1.3%
Cumberland Swan, Inc. 2 341,552 1.4% 1,127,122 1.3%
L.D. Brinkman & Co., Inc. 1 367,744 1.5% 1,055,676 1.2%
Moog Automotive, Inc. 1 209,682 0.9% 966,215 1.1%
International Business Machine 1 150,000 0.6% 937,500 1.0%
AmeriSource Health Corporation 1 181,370 0.8% 936,747 1.0%
Mattel Toys 1 275,169 1.1% 924,576 1.0%
Core-Mark Distirbutors, Inc. 1 201,380 0.9% 852,000 0.9%
--------------- ------------------- -------------- ----------------- -----------
Total 20 6,276,698 26.1% $ 22,441,719 25.0%
--------------- ------------------- -------------- ----------------- -----------
--------------- ------------------- -------------- ----------------- -----------
</TABLE>
(1) Represents annualized base rent from leases in effect as of
December 31, 1997.
PAGE 7 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
INVESTMENT SUMMARY
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Quarter Ended
----------------------------------------------------------------------------------------- ---------------
March 31, 1997 June 30, 1997 September 30, 1997 (2) December 31, 1997 1997 Total
------------------ ------------------- ------------------------- --------------------- ---------------
<S> <C> <C> <C> <C> <C>
Property Acquisitions
Square Feet - 1,383,089 9,648,483 3,680,481 14,712,053
Total Investment (1) $ - $ 50,095,902 $ 348,298,561 $ 111,846,895 $ 510,241,358
Completed Developments
Square Feet 100,000 - 279,800 407,160 786,960
Total Investment (1) $ 4,157,332 $ - $ 12,066,427 $ 19,391,520 $ 35,615,279
Property Dispositions
Square Feet 157,095 386,629 1,692,721 - 2,236,445
Sales Price $ 3,400,000 $ 8,433,000 $ 49,709,845 $ - $ 61,542,845
</TABLE>
(1) Total investment includes all costs incurred to date for the property
acquisition or development.
(2) Includes the acquisition of thirteen industrial properties in a property
for stock transaction, which were directly conveyed in a simultaneous sale
by the Company to a single buyer for a total sales price of $49,709,845.
PAGE 8 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
PROPERTY ACQUISITIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Total
Property Location Square Feet Acquisition Date Investment (1)
- --------------------------------------- ------------------- --------------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Meyer Circle LA Basin 201,380 4/97 $ 8,358,207
South Arlington Indianapolis 219,104 4/97 7,554,351
80th Avenue Chicago 302,500 4/97 9,304,514
Eucalyptus Avenue LA Basin 169,719 5/97 5,039,816
Yates Avenue LA Basin 373,361 5/97 16,497,870
2501 N. Great Southwest Pkwy. Dallas 117,025 5/97 3,341,144
425 South Rockefeller LA Basin 110,000 7/97 3,938,912
100 Friars Lane New Jersey/I-95 181,370 7/97 10,032,407
2200 Cedars Road Atlanta 201,600 8/97 6,054,227
PREI Portfolio I Various 825,568 8/97 32,885,005
Prudential Portfolio Various 5,231,406 9/97 180,311,297
PREI Portfolio II Columbus 953,691 9/97 32,037,746
Ameritech Portfolio Group A Various 2,144,848 9/97 83,038,967
Ameritech Portfolio Group B Various 1,960,334 10/97 62,921,444
3050-3080 Enterprise Street LA Basin 64,640 12/97 3,578,282
2190 Hanson Way SF Bay Area 200,000 12/97 7,077,041
4647 Pine Timbers Houston 143,550 12/97 3,665,641
4660 Pine Timbers Houston 306,785 12/97 7,772,613
Estate of James Campbell Portfolio Dallas 607,275 12/97 15,844,135
UBS Portfolio New Jersey/I-95 397,897 12/97 10,987,739
-------------------- ----------------
Total 14,712,053 $ 510,241,358
-------------------- ----------------
-------------------- ----------------
</TABLE>
(1) Total investments includes all costs incurred to date for the property
acquisition.
PAGE 9 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
COMPLETED DEVELOPMENTS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Construction Total
Property Location Square Feet Completion Stabilization Date Investment (1)
- ------------------------------- ------------- ------------- ------------ -------------------- --------------
<S> <C> <C> <C> <C> <C>
Boulder Avenue Minneapolis 100,000 3/97 3/97 $ 4,157,332
Highlands Parkway Atlanta 150,000 7/97 7/97 7,818,932
Enterprise Building A Dallas 129,800 9/97 10/97 4,247,495
2200 Consulate Drive Orlando 242,160 10/97 10/97 9,853,326
Skylab Road LA Basin 165,000 12/97 12/97 9,538,194
------------- --------------
Total 786,960 $ 35,615,279
------------- --------------
------------- --------------
</TABLE>
(1) Total investments includes all costs incurred to date for the development
project.
PAGE 10 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
PROPERTY DISPOSITIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Property Location Square Feet Disposition Date Sale Price
- --------------------- ------------------ ------------------- ------------------ --------------
<S> <C> <C> <C> <C>
Birmingham I Birmingham, AL 78,000 1/97 $ 1,767,000
Birmingham II Birmingham, AL 79,095 1/97 1,633,000
Wildwood/Pioneer Irving, TX 269,768 5/97 4,555,000
Golden Cove Palos Verdes, CA 75,881 6/97 3,000,000
Phoenix N. 23rd Phoenix, AZ 40,980 6/97 878,000
Bulk sale (1) Jacksonville, FL 1,692,721 9/97 49,709,845
New Orleans, LA
------------------- --------------
Total 2,236,445 $ 61,542,845
------------------- --------------
------------------- --------------
</TABLE>
(1) In conjunction with a property for stock transaction, thirteen industrial
properties were directly conveyed in a simultaneous sale by the Company to
a single buyer for a total sales price of $49,709,845.
PAGE 11 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
DEVELOPMENT IN PROGRESS
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Estimated
Construction Estimated Estimated
Development Start Location Square Feet Completion Stabilization Date (1) Investment
- -------------------------------- ------------------- ---------------- --------------- ---------------------- ---------------
<S> <C> <C> <C> <C> <C>
Enterprise Building B Dallas 124,798 4/98 5/98 $ 4,134,000
Gateway One SF Bay Area 500,000 4/98 6/98 16,400,294
Enterprise Building C Dallas 178,013 5/98 6/98 7,052,092
2100 Consulate Drive Orlando 75,000 1/98 7/98 3,915,580
Lebanon Pike Circle Nashville 178,630 4/98 9/98 7,281,528
Carrowinds Boulevard Charlotte 558,900 7/98 9/98 21,600,000
2225 Cedars Road Atlanta 249,600 3/98 3/99 6,871,508
Meridian Distribution Center LA Basin 606,753 4/98 4/99 19,626,000
Frankford Trade Center Dallas 709,920 6/98 6/99 20,560,209
---------------- ---------------
Total 3,181,614 $ 107,441,211
---------------- ---------------
---------------- ---------------
</TABLE>
(1) Represents the Company's estimate of the date the building 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 showen.
PAGE 12 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
LAND INVENTORY
<TABLE>
<CAPTION>
Location Status Acres
- ------------------------------------- ----------------------- -----------------------
<S> <C> <C>
Chicago Contract (1) 49.9
Dallas Option (2) 43.0
Detroit Contract (1) 102.1
LA - Cedarpointe Closed 27.4
LA - Magnolia Closed 19.2
LA - Bridgestone Option (2) 45.3
LA - Fujita Contract (1) 19.0
------------------------
Total 305.9
------------------------
------------------------
</TABLE>
(1) A Purchase and Sale Agreement for this land parcel has been executed.
(2) A Purchase Option Agreement for this land parcel has been executed.
PAGE 13 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
CAPITAL STRUCTURE
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
DEBT Aggregate Principal
Outstanding at
December 31, 1997
------------------
<S> <C> <C> <C> <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 108,880
----------------
Total Unsecured Notes Including Debt Premium 160,108,880
----------------
Mortgage Loans (including unamortized debt premium of $153,140) 76,596,936
Unsecured Credit Facility 20,500,000
---------------
Total Debt $ 257,205,816
---------------
---------------
EQUITY Shares Conversion Common Stock Market Value
Outstanding (1) Ratio Equivalents Equivalents (1)
- ------------------------------------------------- ----------------- ----------- -------------- ----------------
Series B Convertible Preferred Shares (2) 2,272,727 1 : 1 2,272,727 $ 57,954,539
Common Stock (2) 30,165,662 N/A 30,165,662 769,224,381
----------------- ----------------
Total Shares and Equity Capitalization 32,438,389 $ 827,178,920
----------------- ----------------
----------------- ----------------
Total Market Capitalization $1,084,384,736
----------------
----------------
</TABLE>
(1) The number of common shares outstanding was calculated as if the
outstanding shares of Series B Convertible Preferred Stock had been
converted to Common Stock, which is consistent with the methodology used
in prior periods.
(2) Value based on December 31, 1997 Common Stock closing price of $25.50.
PAGE 14 OF 15
<PAGE>
MERIDIAN INDUSTRIAL TRUST
DEBT SUMMARY
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
Principal Maturities
of Unsecured Notes
Debt Maturity Schedule and Mortgage Loans Unsecured Credit Facility
---------------------- -------------------- -------------------------
<S> <C> <C> <C> <C>
1998 $ 10,349,548 Facility Capacity $ 250,000,000
1999 - Outstanding @ 12/31/97 20,500,000
---------------
2000 - Remaining Capacity $ 229,500,000
---------------
---------------
2001 -
2002 -
2003 -
2004 -
2005 66,094,248
2006 -
2007 135,000,000
2008 -
2009 25,000,000
-------------------
Total $ 236,443,796
-------------------
-------------------
</TABLE>
<TABLE>
<CAPTION>
DEBT ANALYSIS % of Total Weighted Weighted
Debt Average Rate Average Maturity
---------------- -------------- ---------------------
<S> <C> <C> <C>
Unsecured - Fixed Rate 62.3% 7.26% 10.2 Yrs
Unsecured - Variable Rate 8.0% 7.33% 2.2 Yrs
Secured - Fixed Rate 29.7% 8.80% 6.5 Yrs
</TABLE>
PAGE 15 OF 15
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