1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D C 20549 FORM 10-K (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____to____ Commission File Number 1-13102 FIRST INDUSTRIAL REALTY TRUST, INC (Exact name of Registrant as specified in its Charter) MARYLAND 36-3935116 (State or other jurisdiction of (I R S Employer incorporation or organization) Identification No ) 311 S WACKER DRIVE, SUITE 4000, CHICAGO, ILLINOIS 60606 (Address of principal executive offices) (Zip Code) (312) 344-4300 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: COMMON STOCK (Title of class) NEW YORK STOCK EXCHANGE (Name of exchange on which registered) 91/2% SERIES A CUMULATIVE PREFERRED STOCK <TABLE> <S> <C> DEPOSITARY SHARES EACH REPRESENTING 1/100 OF A SHARE OF 8 3/4% SERIES B CUMULATIVE PREFERRED STOCK DEPOSITARY SHARES EACH REPRESENTING 1/100 OF A SHARE OF 85/8% SERIES C CUMULATIVE PREFERRED STOCK DEPOSITARY SHARES EACH REPRESENTING 1/100 OF A SHARE OF 7 95% SERIES D CUMULATIVE PREFERRED STOCK DEPOSITARY SHARES EACH REPRESENTING 1/100 OF A SHARE OF 7 90% SERIES E CUMULATIVE PREFERRED STOCK </TABLE> (Title of class) NEW YORK STOCK EXCHANGE (Name of exchange on which registered) Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days Yes X No --- --- Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K [ ] The aggregate market value of the voting and non-voting stock held by non-affiliates of the Registrant was approximately $1.2 billion based on the closing price on the New York Stock Exchange for such stock on March 16, 1998 At March 16, 1998, 36,551,087 shares of the Registrant's Common Stock, $ 01 par value, were outstanding DOCUMENTS INCORPORATED BY REFERENCE Part III incorporates certain information by reference to the Registrant's definitive proxy statement to be filed with respect to the Annual Meeting of Stockholders to be held on May 14, 1998
2 FIRST INDUSTRIAL REALTY TRUST, INC TABLE OF CONTENTS <TABLE> <CAPTION> PAGE ---- <S> <C> <C> PART I Item 1 Business.................................................................................... 3 Item 2 The Properties.............................................................................. 7 Item 3 Legal Proceedings........................................................................... 23 Item 4 Submission of Matters to a Vote of Security Holders......................................... 23 PART II Item 5 Market for Registrant's Common Equity and Related Stockholder Matters....................... 23 Item 6. Selected Financial Data .................................................................... 23 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations....... 26 Item 8. Financial Statements and Supplementary Data ................................................ 34 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures....... 34 PART III Item 10.Directors and Executive Officers of the Registrant ......................................... 34 Item 11.Executive Compensation ..................................................................... 34 Item 12.Security Ownership of Certain Beneficial Owners and Management ............................. 34 Item 13.Certain Relationships and Related Transactions ............................................. 34 PART IV Item 14.Exhibits, Financial Statements, Financial Statement Schedule and Reports on Form 8-K........ 35 SIGNATURES ............................................................................................. 40 </TABLE> 1
3 This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. First Industrial Realty Trust, Inc. (the "Company") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company on a consolidated basis include, but are not limited to, changes in: economic conditions generally and the real estate market specifically, legislative/regulatory changes (including changes to laws governing the taxation of REITs), availability of capital, interest rates, competition, supply and demand for industrial properties in the Company's current and proposed market areas and general accounting principles, policies and guidelines applicable to REITs. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included herein and in the Company's other filings with the Securities and Exchange Commission. 2
4 PART I ITEM 1. BUSINESS THE COMPANY GENERAL First Industrial Realty Trust, Inc. and its subsidiary partnerships (the "Company") is a self-administered and fully integrated real estate company which owns, manages, acquires and develops industrial real estate. The Company completed its initial public offering in June 1994 (the "Initial Offering"). Upon consummation of the Initial Offering, the Company owned 226 bulk warehouse and light industrial properties which contained an aggregate of 17.4 million square feet of gross leasable area ("GLA"). As of December 31, 1997, the Company's portfolio consisted of 769 in-service bulk warehouse and light industrial properties containing approximately 56.6 million square feet of GLA located in 22 states. The Company's interests in its properties and land parcels are held through partnerships controlled by the Company, including First Industrial, L.P. (the "Operating Partnership"), of which the Company is the sole general partner, as well as, among others, First Industrial Financing Partnership, L.P. (the "Financing Partnership"), First Industrial Securities, L.P. (the "Securities Partnership"), First Industrial Mortgage Partnership, L.P. (the "Mortgage Partnership"), First Industrial Pennsylvania, L.P. (the "Pennsylvania Partnership"), First Industrial Harrisburg, L.P. (the "Harrisburg Partnership"), First Industrial Indianapolis, L.P. (the "Indianapolis Partnership") and First Industrial Development Services, L.P., the sole general partner of each is a wholly-owned subsidiary of the Company, and the sole limited partner of each is the Operating Partnership. The Company's initial interest in the Operating Partnership was obtained in connection with the Initial Offering in exchange for the contribution of substantially all of the net proceeds thereof. Immediately prior to the Initial Offering, the Operating Partnership, which had previously been controlled by members of The Shidler Group, owned 23 properties. In connection with the Initial Offering, (1) entities affiliated with First Industrial Chairman of the Board Jay H. Shidler and other members of The Shidler Group contributed to the Operating Partnership 30 additional properties and the assets of certain property management operations and received $3.2 million in cash and ownership of 2,306,399 shares of the Company's common stock and 830,017 limited partnership interests in the Operating Partnership ("Units") having an aggregate value of $73.7 million (based on the initial public offering price of $23.50) and the assumption by the Operating Partnership of $107.4 million of indebtedness owed to affiliates of Jay H. Shidler and other members of The Shidler Group, (2) businesses of which First Industrial Executive Officers Michael G. Damone and Anthony Muscatello, and former Senior Regional Director Steven B. Hoyt were principals, contributed to the Operating Partnership 97 properties in the Detroit, central Pennsylvania and Minneapolis/St. Paul areas, respectively, and certain property management operations (such businesses, together with The Shidler Group, the "Contributing Businesses") and received $3.9 million in cash, 475,710 Units having a value of $11.2 million (based on the initial public offering price of $23.50) and the assumption of $131.4 million of indebtedness, (3) the Company and the Operating Partnership contributed a portion of the net proceeds of the Initial Offering to the Financing Partnership, (4) the Financing Partnership entered into a $300 million mortgage loan and (5) the Operating Partnership and the Financing Partnership acquired 76 additional properties from unaffiliated third parties. First Industrial Realty Trust, Inc. is a Maryland corporation organized on August 10, 1993, and is a real estate investment trust ("REIT") under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"). The Company is continuing and expanding the midwestern industrial property business of The Shidler Group, a national organization with over 20 years experience in the industrial real estate business. The Company utilizes an operating approach which combines the effectiveness of locally based, or decentralized, property management, acquisition and development functions with the cost efficiencies of centralized acquisition and development support, capital markets expertise, asset management and fiscal control systems. At March 16, 1998, the Company had 298 employees. The Company has grown and will seek to continue to grow through the acquisition of additional industrial properties and businesses, and through the development, primarily on a pre-leased basis, of build-to-suit properties. 3
5 BUSINESS OBJECTIVES AND GROWTH PLANS The Company's fundamental business objective is to maximize the total return to its stockholders through increases in per share distributions and increases in the value of the Company's properties and operations. The Company's growth plan includes the following elements: o Internal Growth. The Company seeks to grow internally by (i) increasing revenues by renewing or re-leasing spaces subject to expiring leases at higher rental levels; (ii) increasing occupancy levels at properties where vacancies exist and maintaining occupancy elsewhere; (iii) controlling and minimizing operating expenses; and (iv) renovating existing properties. o External Growth. The Company seeks to grow externally through (i) the acquisition of portfolios of industrial properties, industrial property businesses or individual properties which meet the Company's investment parameters; (ii) the development of primarily build-to-suit properties; and (iii) the expansion of its properties. BUSINESS STRATEGIES The Company utilizes the following seven strategies in connection with the operation of its business: o Organization Strategy. The Company implements its decentralized property operations strategy through the use of experienced regional management teams and local property managers. Each operating region is headed by a senior regional director, who is a senior executive officer of, and has an equity interest in, the Company. The Company provides acquisition, development and financing assistance, asset management oversight and financial reporting functions from its headquarters in Chicago to support its regional operations. The Company believes the size of its portfolio enables it to realize operating efficiencies by spreading overhead over many properties and by negotiating quantity purchasing discounts. o Market Strategy. The Company invests in markets where it can achieve size and economies of scale. Based on the size of its portfolios in its current markets, which as of December 31, 1997 averaged approximately 2.4 million square feet per market, and the experience of its senior regional directors, the Company believes that it has sufficient market presence and resources to compete effectively. As of December 31, 1997, the Company owned portfolios in the metropolitan areas of Atlanta, Georgia; Chicago, Illinois; Cincinnati, Ohio; Cleveland, Ohio; Columbus, Ohio; Dallas, Texas; Dayton, Ohio; Denver, Colorado; Des Moines, Iowa; Detroit, Michigan; Grand Rapids, Michigan; Houston, Texas; Indianapolis, Indiana; Milwaukee, Wisconsin; Minneapolis/St. Paul, Minnesota; Nashville, Tennessee; New Orleans, Louisiana; Phoenix, Arizona; Salt Lake City, Utah; St. Louis, Missouri and Tampa, Florida, as well as the regional areas of Central Pennsylvania, Long Island, New York and New Jersey. o Leasing and Marketing Strategy. The Company has an operational management strategy designed to enhance tenant satisfaction and portfolio performance. The Company pursues an active leasing strategy, which includes aggressively marketing available space, renewing existing leases at higher rents per square foot and seeking leases which provide for the pass-through of property-related expenses to the tenant. The Company also has local and national marketing programs which focus on the business and brokerage communities and national tenants. o Acquisition Strategy. The Company's acquisition strategy is to acquire properties in its current markets to capitalize on local market expertise and maximize operating effectiveness and efficiencies and, as appropriate opportunities arise, acquire additional properties in other markets where it can achieve sufficient size and scale, as well as hire top-quality management. o Development Strategy. Of the 769 properties in the Company's portfolio at December 31, 1997, 197 have been developed by its current or former management. The Company will continue to leverage the development capabilities of its management, many of whom are leading developers in their respective markets. In 1996, the Company formed a new subsidiary ("First Industrial Development Services, L.P.") to focus on development activities. o Disposition Strategy. The Company continually evaluates local market conditions and property-related factors and will sell a property when it believes it is to the Company's advantage to do so. 4
6 o Financing Strategy. The Company believes that the size of its portfolio, the diversity of its properties and tenants and the financial strength of the Company allow it access to the public capital markets which are not generally available to smaller, less diversified property owners because of the portfolio size and diversity requirements. RECENT DEVELOPMENTS In 1997, the Company acquired or completed development of 399 properties and two expansions for a total estimated investment of approximately $912.6 million ($115.2 million of which was issued as partnership Units) to expand the in-service portfolio by 73 percent. The Company also sold ten in-service properties, one property under redevelopment and several parcels of land for approximately $33.7 million of gross proceeds. At December 31, 1997, the Company owned 769 in-service properties containing approximately 56.6 million square feet. The Company improved its capital structure through the following activities: o The Company legally defeased the $300.0 million mortgage loan (the "1994 Defeased Mortgage Loan") in April 1997 and subsequently paid off and retired the 1994 Defeased Mortgage Loan on January 2, 1998. o The Company continued to pay down and retire secured debt and replace it with senior unsecured debt at lower interest rates. o The Company issued senior unsecured debt, through the Operating Partnership, with staggered maturity dates. During 1997, the Company, through the Operating Partnership, issued $650.0 million of senior unsecured debt with maturity dates ranging from 2005 to 2027. o The Company terminated its $200.0 million unsecured revolving credit facility (the "1996 Unsecured Acquisition Facility") and entered into a $300.0 million unsecured revolving credit facility (the "1997 Unsecured Acquisition Facility"). The 1997 Unsecured Acquisition Facility initially bears interest at the London Interbank Offered Rate ("LIBOR") plus .80% which is .20% less than the 1996 Unsecured Acquisition Facility for LIBOR borrowings. o The Company issued preferred stock. On May 14, 1997, the Company issued 4,000,000 depositary shares, representing 1/100th of a share of the Company's 8 3/4%, $.01 par value, Series B Cumulative Preferred Stock, at an initial offering price of $25 per depositary share, which resulted in gross proceeds of $100.0 million. On June 6, 1997, the Company issued 2,000,000 depositary shares, representing 1/100th of a share of the Company's 85/8%, $.01 par value, Series C Preferred Stock, at an initial offering price of $25 per depositary share which resulted in gross proceeds of $50.0 million. o The Company issued common stock and the Operating Partnership issued Units. The Company issued 637,440 shares of $.01 par value common stock on September 16, 1997, at an initial offering price of $31.375 per share which resulted in gross proceeds of $20.0 million. On October 15, 1997, the Company issued 5,400,000 shares of $.01 par value common stock at an initial offering price of $33.40 per share which resulted in gross proceeds of $180.4 million. In 1997, the Operating Partnership issued, in the aggregate, Units valued at approximately $115.2 million. During the period January 1, 1998 through March 16, 1998, the Company purchased 56 properties containing an aggregate of 2.9 million square feet of GLA for approximately $103.4 million, or $36.20 per square foot. The purchase price consisted of approximately $101.5 million cash and Units valued at approximately $1.9 million. On January 27, 1998, the Company registered approximately $789.2 million of common stock, preferred stock and depositary shares and $400.0 million of debt securities. On February 4, 1998, the Company issued 5,000,000 Depositary shares, each representing 1/100th of a share of the Company's 7.95%, $.01 par value, Series D Cumulative Preferred Stock at an initial offering price of $25 per Depositary Share, which resulted in gross proceeds of $125.0 million. On March 18, 1998, the Company issued 3,000,000 Depositary shares, each representing 1/100th of a share of the Company's 7.90%, $.01 par value, Series E Cumulative Preferred Stock at an initial offering price of $25 per Depositary Share, which resulted in gross proceeds of $75.0 million. 5
7 FUTURE ACQUISITIONS AND DEVELOPMENT The Company has an active acquisition and development program through which it is continually engaged in identifying, negotiating and consummating portfolio and individual industrial property acquisitions and developments. As a result, the Company is currently engaged in negotiations relating to the possible acquisitions and developments of a number of properties located in the Company's current markets and other markets into which the Company may expand. When evaluating potential acquisitions and development, the Company will consider such factors as: (i) the geographic area and type of property; (ii) the location, construction quality, condition and design of the property; (iii) the potential for capital appreciation of the property; (iv) the ability of the Company to improve the property's performance through renovation; (v) the terms of tenant leases, including the potential for rent increases; (vi) the potential for economic growth and the tax and regulatory environment of the area in which the property is located; (vii) the potential for expansion of the physical layout of the property and/or the number of sites; (viii) the occupancy and demand by tenants for properties of a similar type in the vicinity; and (ix) competition from existing properties and the potential for the construction of new properties in the area. INDUSTRY Industrial properties are typically used for the design, assembly, packaging, storage and distribution of goods and/or the provision of services. As a result, the demand for industrial space in the United States is related to the level of economic output. Historically, occupancy rates for industrial property in the United States have been higher than those for other types of commercial property. The Company believes that the higher occupancy rate in the industrial property sector is a result of the construction-on-demand nature of, and the comparatively short development time required for, industrial property. The following table summarizes the occupancy rates by region for industrial properties for the past five years: INDUSTRIAL SPACE OCCUPANCY RATES BY REGION <TABLE> <CAPTION> DECEMBER 31, ---------------------------------------------------- REGION 1993 1994 1995 1996 1997 - ------ ---- ---- ---- ---- ---- <S> <C> <C> <C> <C> <C> Midwest ................. 92.8% 93.9% 95.1% 94.3% 93.3% East .................... 91.6 91.7 92.1 91.6 90.4 South ................... 91.4 91.7 90.9 90.5 90.4 West .................... 91.0 92.5 93.0 93.3 91.7 United States ........... 91.7 92.6 93.1 92.7 91.6 </TABLE> - ----------- Source: CB Commercial Real Estate Group, Inc. 6
8 ITEM 2. THE PROPERTIES GENERAL At December 31, 1997, First Industrial owned 769 in-service properties containing approximately 56.6 million square feet of GLA in 22 states, with a diverse base of more than 2,500 tenants engaged in a wide variety of businesses, including manufacturing, retailing, wholesale trade, distribution and professional services. The properties are generally located in business parks which have convenient access to interstate highways and rail and air transportation. The median age of the properties as of December 31, 1997 was approximately 13 years. The Company classifies its properties into two industrial categories: bulk warehouse and light industrial. The Company's bulk warehouse properties are generally used for bulk storage of materials and manufactured goods and its light industrial properties are generally used for the design, assembly, packaging and distribution of goods and, in some cases, the provision of services. Each of the properties is wholly owned by the Company. The following table summarizes certain information as of December 31, 1997 with respect to the Company's properties. Information in the table excludes properties under development at December 31, 1997. PROPERTY SUMMARY <TABLE> <CAPTION> BULK WAREHOUSE LIGHT INDUSTRIAL TOTAL ----------------------------- --------------------------- ---------------------------- METROPOLITAN/ NUMBER OF NUMBER OF NUMBER OF REGIONAL AREA GLA PROPERTIES GLA PROPERTIES GLA PROPERTIES - ------------------ ----------- ---------- ----------- ---------- --------- ---------- <S> <C> <C> <C> <C> <C> <C> Atlanta 3,446,535 18 575,256 11 4,021,791 29 Central Pennsylvania 3,397,351 18 844,207 15 4,241,558 33 Chicago 3,969,361 25 1,647,151 21 5,616,512 46 Cincinnati 951,080 3 681,375 6 1,632,455 9 Cleveland -- -- 355,141 8 355,141 8 Columbus 1,608,804 4 56,849 1 1,665,653 5 Dallas 1,088,017 10 482,313 10 1,570,330 20 Dayton -- -- 322,746 6 322,746 6 Denver -- -- 3,651,688 95 3,651,688 95 Des Moines 879,043 5 54,000 1 933,043 6 Detroit 2,852,057 59 2,450,870 59 5,302,927 118 Grand Rapids 2,786,591 22 40,400 3 2,826,991 25 Houston 1,959,956 17 514,064 7 2,474,020 24 Indianapolis 2,249,853 8 1,588,319 29 3,838,172 37 Long Island 924,385 8 2,507,387 42 3,431,772 50 Milwaukee -- -- 464,292 10 464,292 10 Minneapolis/St Paul 1,864,987 16 3,241,993 45 5,106,980 61 Nashville 1,299,040 7 480,118 8 1,779,158 15 New Jersey 344,176 3 1,567,596 47 1,911,772 50 New Orleans -- -- 557,453 15 557,453 15 Phoenix -- -- 535,394 5 535,394 5 Salt Lake City -- -- 498,233 36 498,233 36 St. Louis 978,321 14 420,827 4 1,399,148 18 Tampa 153,377 2 919,841 28 1,073,218 30 Other (a) 837,055 8 520,204 10 1,357,259 18 ---------- ---------- ---------- ---------- ---------- ----- Total 31,589,989 247 24,977,717 522 56,567,706 769 ========== ========== ========== ========== ========== ===== <CAPTION> TOTAL ------------------------------- GLA AS A % OCCUPANCY OF TOTAL AT 12/31/97 PORTFOLIO ------------- ------------- <S> <C> <C> Atlanta 91% 7% Central Pennsylvania 100% 7% Chicago 94% 10% Cincinnati 90% 3% Cleveland 67% 1% Columbus 99% 3% Dallas 99% 3% Dayton 98% 1% Denver 94% 7% Des Moines 100% 2% Detroit 97% 9% Grand Rapids 96% 5% Houston 99% 4% Indianapolis 97% 7% Long Island 94% 6% Milwaukee 98% 1% Minneapolis/St Paul 96% 9% Nashville 99% 3% New Jersey 95% 3% New Orleans 89% 1% Phoenix 100% 1% Salt Lake City 88% 1% St. Louis 94% 2% Tampa 93% 2% Other (a) 99% 2% ---------- Total 96% 100% ========== </TABLE> (a) Properties are located in Denton and Abilene, Texas; Wichita, Kansas; West Lebanon, New Hampshire; Green Bay, Wisconsin; Shreveport and Baton Rouge, Louisiana and Clarion, Iowa 7
9 PROPERTY ACQUISITION ACTIVITY During 1997, the Company completed 56 separate property acquisition transactions totaling approximately 22 9 million square feet of GLA at a total purchase price of approximately $862 4 million, or $37 68 per square foot The 389 properties acquired have the following characteristics: <TABLE> <CAPTION> OCCUPANCY METROPOLITAN AREA GLA PROPERTY TYPE AT 12/31/97 ACQUISITION DATE - ------------------ ------------ ------------------------------------ ----------- ------------------ <S> <C> <C> <C> <C> Indianapolis, IN 482,400 Bulk Warehouse 100% January 9, 1997 Long Island, NY 2,733,751 Bulk Warehouse/Light Industrial 94% January 31, 1997 Dayton, OH 58,746 Light Industrial 100% February 20, 1997 York, PA 312,500 Bulk Warehouse 100% March 17, 1997 Detroit, MI 179,400 Bulk Warehouse 99% March 21, 1997 Mechanicsburg, PA 162,500 Light Industrial 100% March 24, 1997 Buffalo Grove, IL 84,956 Light Industrial 100% March 28, 1997 New Brighton, MN 112,082 Light Industrial 100% March 31, 1997 Brooklyn Park, MN 79,675 Light Industrial 82% March 31, 1997 Minneapolis, MN 49,190 Light Industrial 100% April 3, 1997 Columbus, OH 243,000 Bulk Warehouse 93% April 4, 1997 Alsip, IL 320,171 Bulk Warehouse 97% May 29, 1997 West Allis, WI 92,815 Light Industrial 100% June 2, 1997 Mechanicsburg, PA 178,600 Bulk Warehouse 100% June 2, 1997 Wauwatosa, WI 25,150 Light Industrial 100% June 5, 1997 Green Bay, WI 25,254 Light Industrial 100% June 13, 1997 LaGrange, IL 59,075 Light Industrial 100% June 20, 1997 Wauwatosa, WI 39,800 Light Industrial 100% June 26, 1997 Elk Grove, IL 212,040 Light Industrial 100% June 30, 1997 New Jersey 697,778 Bulk Warehouse/Light Industrial 96% June 30, 1997 Oakland, NJ 52,402 Light Industrial 100% July 11, 1997 New Jersey 75,000 Light Industrial 93% July 18, 1997 Indianapolis, IN 161,539 Light Industrial 100% July 30, 1997 New Jersey 458,666 Light Industrial 98% July 31, 1997 New Jersey 110,000 Light Industrial 100% August 1, 1997 Polk, IA 54,000 Light Industrial 100% August 29, 1997 New Jersey 118,750 Light Industrial 96% August 29, 1997 New Jersey 117,108 Light Industrial 100% August 29, 1997 Independence, OH 169,116 Light Industrial 92% September 19, 1997 Taylor, MI 102,400 Bulk Warehouse 100% September 23, 1997 Indianapolis, IN 353,000 Light Industrial 100% September 23, 1997 Atlanta, GA 97,518 Bulk Warehouse 100% September 26, 1997 Hazelwood, MO 35,114 Light Industrial 100% September 30, 1997 Florence, KY 570,000 Light Industrial 100% September 30, 1997 Cleveland, OH 51,525 Light Industrial 100% October 1, 1997 Ford City, IL 563,458 Bulk Warehouse/Light Industrial 68% October 11, 1997 Nashville, TN 480,118 Light Industrial 96% October 17, 1997 Hicksville, NY 68,635 Light Industrial 89% October 23, 1997 Ford City, IL 391,470 Bulk Warehouse/Light Industrial 93% October 23, 1997 Cleveland, OH 32,000 Light Industrial 100% October 28, 1997 Denver, CO 3,573,495 Light Industrial 94% October 30, 1997 Eden Prairie, MN 89,456 Light Industrial 100% October 31, 1997 Indianapolis, IN 100,000 Bulk Warehouse 92% November 19, 1997 Denver, CO 71,344 Light Industrial 100% December 4, 1997 New Jersey 175,820 Bulk Warehouse/Light Industrial 79% December 5, 1997 Phoenix, AZ 437,342 Light Industrial 100% December 5, 1997 Hicksville, NY 100,000 Light Industrial 100% December 9, 1997 Multiple Markets(a) 4,751,077 Bulk Warehouse/Light Industrial 98% December 9, 1997 Tampa, FL 919,841 Bulk Warehouse/Light Industrial 92% December 11, 1997 Phoenix, AZ 98,052 Light Industrial 100% December 19, 1997 Salt Lake City, UT 498,233 Light Industrial 88% December 23, 1997 Denver, PA 623,832 Bulk Warehouse 100% December 23, 1997 Houston, TX 346,819 Light Industrial 95% December 23, 1997 Hilliard, OH 255,470 Bulk Warehouse 100% December 29, 1997 Hauppauge, NY 21,900 Light Industrial 0% December 29, 1997 Ronkonkoma, NY 613,040 Light Industrial 94% December 29, 1997 ------------ Total 22,886,423 ============ </TABLE> (a) Markets include Dallas and Houston, Texas; New Orleans, Louisiana; Tampa, Florida and Atlanta, Georgia 8
10 PROPERTY DEVELOPMENT ACTIVITY During 1997, the Company completed ten developments and two expansions totaling approximately 1.7 million square feet of GLA at a total cost of approximately $50.2 million, or $28.88 per square foot The developed properties have the following characteristics: <TABLE> <CAPTION> OCCUPANCY METROPOLITAN AREA GLA PROPERTY TYPE AT 12/31/97 COMPLETION DATE - ----------------------------- --------------- -------------- ----------- ------------------ <S> <C> <C> <C> <C> Middleton, PA 216,387 Bulk Warehouse 100% March 1, 1997 Livonia, MI 140,365 Bulk Warehouse 100% March 1, 1997 Atlanta, GA 181,200 Bulk Warehouse (a) March 10, 1997 Grand Rapids, MI 17,000(b) Bulk Warehouse 100% April 1, 1997 Indianapolis, IN 10,000 Bulk Warehouse 100% April 1, 1997 Middleton, PA 321,333 Bulk Warehouse 100% June 1, 1997 Livonia, MI 127,800 Bulk Warehouse 100% November 21, 1997 Shreveport, LA 250,000 Bulk Warehouse 100% December 1, 1997 Atlanta, GA 24,660(b) Light Industrial 100% December 8, 1997 St Louis, MO 178,800 Bulk Warehouse 100% December 12, 1997 Clarion, IA 126,900 Bulk Warehouse 100% December 16, 1997 Livonia, MI 145,232 Bulk Warehouse 100% December 31, 1997 ----------- Total 1,739,677 =========== </TABLE> (a) Property was sold on June 30, 1997 (b) Expansion At December 31, 1997, the Company had 12 projects under development, with an estimated completion GLA of 2.5 million square feet and an estimated completion cost of approximately $90.4 million PROPERTY SALES During 1997, the Company sold ten in-service properties totaling approximately .8 million square feet of GLA, one property held for redevelopment and several land parcels Total gross sales proceeds approximated $33.7 million The in-service properties sold have the following characteristics: <TABLE> <CAPTION> METROPOLITAN AREA GLA PROPERTY TYPE SALE DATE - -------------------- --------- ---------------- ------------------- <S> <C> <C> <C> Atlanta, GA 202,880 Bulk Warehouse June 30, 1997 Atlanta, GA 181,200 Bulk Warehouse June 30, 1997 Nashville, TN(a) 227,267 Light Industrial June 30, 1997 Maryland Heights, MO 42,090 Light Industrial September 16, 1997 Farmington Hills, MI 17,564 Bulk Warehouse October 29, 1997 Troy, MI 54,675 Light Industrial December 15, 1997 Plymouth, MI 27,990 Light Industrial December 18, 1997 Maryland Heights, MO 31,484 Bulk Warehouse December 22, 1997 ---------- Total 785,150 ========== </TABLE> (a) Comprised of three properties PROPERTY ACQUISITIONS SUBSEQUENT TO YEAR END During the period January 1, 1998 through March 16, 1998, the Company completed 12 separate property transactions totaling approximately 2.9 million square feet of GLA for approximately $103.4 million, or $36.20 per square foot, with the following characteristics: <TABLE> <CAPTION> METROPOLITAN AREA GLA PROPERTY TYPE ACQUISITION DATE - ------------------ ---------- ------------------------------- ------------------- <S> <C> <C> <C> Chicago, IL 53,500 Light Industrial January 9, 1998 Chicago, IL 149,500 Light Industrial January 12, 1998 Chicago, IL 203,548 Bulk Warehouse/Light Industrial January 12, 1998 Minneapolis, MN 318,013 Light Industrial January 15, 1998 Chicago, IL 288,000 Bulk Warehouse January 16, 1998 West Valley, UT 183,772 Light Industrial January 28, 1998 Chicago, IL 309,386 Bulk Warehouse/Light Industrial January 30, 1998 Denver, CO 448,186 Light Industrial January 30, 1998 Springboro, OH 69,220 Light Industrial February 11, 1998 Garden City, NY 42,700 Light Industrial March 3, 1998 Detroit, MI 75,200 Light Industrial March, 12, 1998 Indianapolis, IN 181,950 Light Industrial March 4, 1998 Exton, PA 534,360 Light Industrial March 12, 1998 ---------- 2,857,335 ========== </TABLE> 9
11 DETAIL PROPERTY LISTING The following table lists all of the Company's properties as of December 31, 1997, by geographic market area <TABLE> <CAPTION> PROPERTY LISTING LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- ---------- ------------ --------- <S> <C> <C> <C> ATLANTA 4250 River Green Parkway Duluth, GA (c) 1988 3400 Corporate Parkway Duluth, GA (c) 1987 3450 Corporate Parkway Duluth, GA (c) 1988 3500 Corporate Parkway Duluth, GA (c) 1991 3425 Corporate Parkway Duluth, GA (c) 1990 1650 GA Highway 155 McDonough, GA 1991 415 Industrial Park Road Cartersville, GA 1986 434 Industrial Park Road Cartersville, GA 1988 435 Industrial Park Road Cartersville, GA 1986 14101 Industrial Park Blvd Covington, GA 1984 801-804 Blacklawn Road Conyers, GA 1982 1665 Dogwood Drive Conyers, GA 1973 1715 Dogwood Drive Conyers, GA 1973 11235 Harland Drive Covington, GA 1988 700 Westlake Parkway Atlanta, GA 1990 800 Westlake Parkway Atlanta, GA 1991 4050 Southmeadow Parkway Atlanta, GA 1991 4051 Southmeadow Parkway Atlanta, GA 1989 4071 Southmeadow Parkway Atlanta, GA 1991 4081 Southmeadow Parkway Atlanta, GA 1989 1875 Rockdale Industrial Blvd Conyers, GA 1966 370 Great Southwest Parkway (j) Atlanta, GA 1986 955 Cobb Place Kennesaw, GA 1991 6105 Boatrock Boulevard Atlanta, GA 1972 1640 Sands Place Marietta, GA 1977 3312 N Berkeley Lake Road Duluth, GA 1969 3495 Bankhead Highway (j) Atlanta, GA 1986 CENTRAL PENNSYLVANIA 1214-B Freedom Road Cranberry, PA 1982 401 Russell Drive Middletown, PA 1990 2700 Commerce Drive Middletown, PA 1990 2701 Commerce Drive Middletown, PA 1989 2780 Commerce Drive Middletown, PA 1989 5035 Ritter Road Mechanicsburg, PA 1988 5070-B Ritter Road(j) Mechanicsburg, PA 1989 6340 Flank Drive Harrisburg, PA 1988 6345 Flank Drive Harrisburg, PA 1989 6360 Flank Drive Harrisburg, PA 1988 6380 Flank Drive Harrisburg, PA 1991 6400 Flank Drive Harrisburg, PA 1992 6405 Flank Drive Harrisburg, PA 1991 100 Schantz Road Allentown, PA 1993 794 Roble Road Allentown, PA 1984 7355 Williams Avenue Allentown, PA 1989 2600 Beltline Avenue Reading, PA 1985 7125 Grayson Road Harrisburg, PA 1991 7253 Grayson Road Harrisburg, PA 1990 5 Keystone Drive Lebanon, PA 1995 5020 Louise Drive Mechanicsburg, PA (b) 1995 7195 Grayson Road Harrisburg, PA (b) 1994 400 First Street Middletown, PA 1963/96 401 First Street Middletown, PA 1963/96 600 Hunter Lane Middletown, PA 1997 300 Hunter Lane Middletown, PA 1996 3380 Susquehanna Trail North York, PA 1990 495 East Locust Lane York, PA 1993 350 Old Silver Spring Road Mechanicsburg, PA 1968 4500 Westport Drive Mechanicsburg, PA 1996 500 Industrial Lane Middletown, PA 1970/96 41 Weaver Road Denver, PA 1974 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- --------------- --------- --- -------- <S> <C> <C> <C> <C> ATLANTA 4250 River Green Parkway Light Industrial 2.14 28,942 100% 3400 Corporate Parkway Light Industrial 3.73 59,959 86% 3450 Corporate Parkway Light Industrial 2.38 37,346 67% 3500 Corporate Parkway Light Industrial 2.80 44,242 100% 3425 Corporate Parkway Light Industrial 3.49 42,978 77% 1650 GA Highway 155 Bulk Warehouse 12.80 228,400 100% 415 Industrial Park Road Bulk Warehouse 9.27 119,657 100% 434 Industrial Park Road Bulk Warehouse 8.07 57,493 100% 435 Industrial Park Road Bulk Warehouse 8.03 71,000 0% 14101 Industrial Park Blvd Bulk Warehouse 9.25 92,160 100% 801-804 Blacklawn Road Bulk Warehouse 6.67 111,090 91% 1665 Dogwood Drive Bulk Warehouse 9.46 198,000 100% 1715 Dogwood Drive Bulk Warehouse 4.61 100,000 100% 11235 Harland Drive Bulk Warehouse 5.39 32,361 100% 700 Westlake Parkway Light Industrial 3.50 56,400 82% 800 Westlake Parkway Bulk Warehouse 7.40 132,400 80% 4050 Southmeadow Parkway Light Industrial 6.60 87,328 100% 4051 Southmeadow Parkway Bulk Warehouse 11.20 171,671 0% 4071 Southmeadow Parkway Bulk Warehouse 17.80 209,918 100% 4081 Southmeadow Parkway Bulk Warehouse 12.83 254,172 100% 1875 Rockdale Industrial Blvd Bulk Warehouse 5.70 121,600 100% 370 Great Southwest Parkway (j) Light Industrial 8.06 150,536 81% 955 Cobb Place Bulk Warehouse 8.73 97,518 100% 6105 Boatrock Boulevard Light Industrial 1.79 32,000 100% 1640 Sands Place Light Industrial 1.97 35,525 100% 3312 N. Berkeley Lake Road Bulk Warehouse 52.11 1,040,276 100% 3495 Bankhead Highway (j) Bulk Warehouse 20.50 408,819 100% --------- ------ SUBTOTAL OR AVERAGE 4,021,791 91% --------- ------ CENTRAL PENNSYLVANIA 1214-B Freedom Road Bulk Warehouse 5.99 32,779 100% 401 Russell Drive Bulk Warehouse 5.20 52,800 100% 2700 Commerce Drive Bulk Warehouse 3.60 32,000 100% 2701 Commerce Drive Light Industrial 6.40 48,000 100% 2780 Commerce Drive Light Industrial 2.00 21,600 100% 5035 Ritter Road Light Industrial 5.50 56,000 96% 5070-B Ritter Road(j) Light Industrial 5.20 60,000 100% 6340 Flank Drive Light Industrial 6.70 68,200 100% 6345 Flank Drive Light Industrial 7.00 69,443 100% 6360 Flank Drive Light Industrial 5.30 46,500 98% 6380 Flank Drive Light Industrial 3.70 32,000 88% 6400 Flank Drive Light Industrial 5.30 53,439 100% 6405 Flank Drive Light Industrial 5.96 32,000 100% 100 Schantz Road Bulk Warehouse 12.37 100,000 100% 794 Roble Road Light Industrial 16.68 101,750 100% 7355 Williams Avenue Light Industrial 3.94 43,425 100% 2600 Beltline Avenue Bulk Warehouse 5.89 69,190 100% 7125 Grayson Road Bulk Warehouse 17.17 300,000 100% 7253 Grayson Road Bulk Warehouse 12.42 196,000 100% 5 Keystone Drive Bulk Warehouse 14.00 88,400 100% 5020 Louise Drive Light Industrial 5.06 49,350 100% 7195 Grayson Road Bulk Warehouse 6.02 100,000 100% 400 First Street Bulk Warehouse 14.88 167,500 100% 401 First Street Bulk Warehouse 43.55 490,140 100% 600 Hunter Lane Bulk Warehouse 14.77 216,387 100% 300 Hunter Lane Bulk Warehouse 16.71 321,333 100% 3380 Susquehanna Trail North Bulk Warehouse 10.00 112,500 100% 495 East Locust Lane Bulk Warehouse 15.00 200,000 100% 350 Old Silver Spring Road Light Industrial 20.00 162,500 100% 4500 Westport Drive Bulk Warehouse 11.20 178,600 100% 500 Industrial Lane Bulk Warehouse 10.29 115,890 100% 41 Weaver Road Bulk Warehouse 85.00 623,832 100% --------- ------ Subtotal or Average 4,241,558 100% --------- ------ </TABLE> 10
12 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- ---------- ------------ --------- <S> <C> <C> <C> CHICAGO 1330 West 43rd Street Chicago, IL 1977 2300 Hammond Drive Schaumburg, IL 1970 6500 North Lincoln Avenue Lincolnwood, IL 1965/88 3600 West Pratt Avenue Lincolnwood, IL 1953/88 917 North Shore Drive Lake Bluff, IL 1974 6750 South Sayre Avenue Bedford Park, IL 1975 7200 S. Leamington Bedford Park, IL 1950 585 Slawin Court Mount Prospect, IL 1992 2300 Windsor Court Addison, IL 1986 3505 Thayer Court Aurora, IL 1989 3600 Thayer Court Aurora, IL 1989 736-776 Industrial Drive Elmhurst, IL 1975 5310-5352 East Avenue Countryside, IL 1975 12330-12358 South LaTrobe Alsip, IL 1975 305-311 Era Drive Northbrook, IL 1978 700-714 Landwehr Road Northbrook, IL 1978 720-730 Landwehr Road Northbrook, IL (c) 1978 3170-3190 MacArthur Boulevard Northbrook, IL (c) 1978 4330 South Racine Avenue Chicago, IL 1978 13040 S. Crawford Avenue Alsip, IL 1976 20W201 101st Street Lemont, IL (c) 1988 11241 Melrose Street Franklin Park, IL 1969 280-296 Palatine Road Wheeling, IL (c) 1978 3150-3160 MacArthur Boulevard Northbrook, IL (b) 1978 2101-2125 Gardner Road Broadview, IL (b) 1950/69 365 North Avenue Carol Stream, IL (b) 1969 2942 MacArthur Boulevard Northbrook, IL (b) 1979 12301-12325 S. Laramie Avenue Alsip, IL 1975 6300 West Howard Street Niles, IL 1956/64 301 Hintz Wheeling, IL 1960 301 Alice Wheeling, IL 1965 1001 Commerce Court Buffalo Grove, IL 1989 11939 South Central Avenue Alsip, IL 1972 405 East Shawmut La Grange, IL 1965 2201 Lunt Elk Grove Village, IL 1963 1010-50 Sesame Street Bensenville, IL (g) 1976 5555 West 70th Place Bedford Park, IL 1973 3200-3250 South St. Louis (j) Chicago, IL 1968 3110-3130 South St. Louis Chicago, IL 1968 7301 South Hamlin Chicago, IL 1975/86 3740 West 74th Street Chicago, IL 1975/86 7401 South Pulaski Chicago, IL 1975/86 3900 West 74th Street Chicago, IL 1975/86 7501 South Pulaski Chicago, IL 1975/86 410 West 169th Street South Holland, IL 1974 CINCINNATI 9900-9970 Princeton-Glendale Cincinnati, OH (d) 1970 2940 Highland Avenue Cincinnati, OH (d) 1969/74 4700-4750 Creek Road Blue Ash, OH (d) 1960 4860 Duff Drive Cincinnati, OH 1979 4866 Duff Drive Cincinnati, OH 1979 4884 Duff Drive Cincinnati, OH 1979 4890 Duff Drive Cincinnati, OH 1979 9636-9643 Interocean Drive Cincinnati, OH 1983 7600 Empire Drive Florence, KY 1964 CLEVELAND 21510-21600 Alexander Rd (k) Oakwood, OH 1985 5405 & 5505 Valley Belt Rd (j) Independence, OH 1983 10145 Philipp Parkway Streetsboro, OH 1994 4410 Hamann Willoughby, OH 1975 6675 Parkland Boulevard Solon, OH 1991 COLUMBUS 6911 Americana Parkway Columbus, OH 1980 3800 Lockbourne Industrial Pky Columbus, OH 1986 1819 North Walcutt Road Columbus, OH 1973 3880 Groveport Road Obetz, OH 1986 4300 Cemetery Road Hilliard, OH 1968 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- ------- --- -------- <S> <C> <C> <C> <C> CHICAGO 1330 West 43rd Street Bulk Warehouse 4.25 109,728 100% 2300 Hammond Drive Bulk Warehouse 4.13 77,000 100% 6500 North Lincoln Avenue Light Industrial 2.52 63,050 10% 3600 West Pratt Avenue Bulk Warehouse 6.35 205,481 82% 917 North Shore Drive Bulk Warehouse 4.27 84,575 100% 6750 South Sayre Avenue Bulk Warehouse 2.51 63,383 100% 7200 S. Leamington Bulk Warehouse 12.24 310,752 100% 585 Slawin Court Light Industrial 3.71 38,150 100% 2300 Windsor Court Bulk Warehouse 6.80 105,100 100% 3505 Thayer Court Bulk Warehouse 4.60 64,220 100% 3600 Thayer Court Light Industrial 6.80 67,058 100% 736-776 Industrial Drive Bulk Warehouse 3.79 80,520 100% 5310-5352 East Avenue Bulk Warehouse 4.77 88,042 100% 12330-12358 South LaTrobe Bulk Warehouse 3.71 85,390 88% 305-311 Era Drive Light Industrial 1.82 27,549 100% 700-714 Landwehr Road Light Industrial 1.99 41,835 100% 720-730 Landwehr Road Light Industrial 4.29 66,912 100% 3170-3190 MacArthur Boulevard Light Industrial 2.14 41,820 58% 4330 South Racine Avenue Bulk Warehouse 5.57 168,000 100% 13040 S. Crawford Avenue Bulk Warehouse 15.12 400,076 100% 20W201 101st Street Light Industrial 8.72 160,200 100% 11241 Melrose Street Bulk Warehouse 2.47 77,031 100% 280-296 Palatine Road Bulk Warehouse 4.67 90,387 100% 3150-3160 MacArthur Boulevard Light Industrial 2.14 41,820 100% 2101-2125 Gardner Road Bulk Warehouse 9.98 323,425 100% 365 North Avenue Bulk Warehouse 28.65 225,000 100% 2942 MacArthur Boulevard Light Industrial 3.12 49,730 100% 12301-12325 S. Laramie Avenue Bulk Warehouse 8.83 204,586 100% 6300 West Howard Street Light Industrial 19.50 364,000 100% 301 Hintz Light Industrial 2.51 43,636 100% 301 Alice Light Industrial 2.88 65,450 100% 1001 Commerce Court Light Industrial 5.37 84,956 100% 11939 South Central Avenue Bulk Warehouse 12.60 320,171 97% 405 East Shawmut Light Industrial 3.39 59,075 100% 2201 Lunt Light Industrial 7.98 212,040 100% 1010-50 Sesame Street Bulk Warehouse 8.00 252,000 100% 5555 West 70th Place Light Industrial 2.50 41,531 100% 3200-3250 South St. Louis (j) Light Industrial 8.66 74,685 64% 3110-3130 South St. Louis Light Industrial 4.00 23,254 100% 7301 South Hamlin Bulk Warehouse 1.49 56,017 43% 3740 West 74th Street Light Industrial 2.14 80,400 100% 7401 South Pulaski Bulk Warehouse 5.36 201,420 97% 3900 West 74th Street Bulk Warehouse 2.13 79,907 100% 7501 South Pulaski Bulk Warehouse 3.88 145,714 0% 410 West 169th Street Bulk Warehouse 6.40 151,436 100% ---------- ----- SUBTOTAL OR AVERAGE 5,616,512 94% ---------- ----- CINCINNATI 9900-9970 Princeton-Glendale Bulk Warehouse 10.64 185,580 97% 2940 Highland Avenue Bulk Warehouse 17.08 500,500 75% 4700-4750 Creek Road Bulk Warehouse 15.32 265,000 96% 4860 Duff Drive Light Industrial 1.02 15,986 100% 4866 Duff Drive Light Industrial 1.02 16,000 100% 4884 Duff Drive Light Industrial 1.59 25,000 60% 4890 Duff Drive Light Industrial 1.59 25,018 100% 9636-9643 Interocean Drive Light Industrial 4.13 29,371 86% 7600 Empire Drive Light Industrial 38.73 570,000 100% ---------- ----- SUBTOTAL OR AVERAGE 1,632,455 90% ---------- ----- CLEVELAND 21510-21600 Alexander Rd (k) Light Industrial 5.70 106,721 98% 5405 & 5505 Valley Belt Rd (j) Light Industrial 6.23 62,395 83% 10145 Philipp Parkway Light Industrial 4.00 51,525 100% 4410 Hamann Light Industrial 1.40 32,000 100% 6675 Parkland Boulevard Light Industrial 10.41 102,500 0% ---------- ----- SUBTOTAL OR AVERAGE 355,141 67% ---------- ----- COLUMBUS 6911 Americana Parkway Light Industrial 4.05 56,849 89% 3800 Lockbourne Industrial Pky Bulk Warehouse 43.60 404,734 100% 1819 North Walcutt Road Bulk Warehouse 11.33 243,000 93% 3880 Groveport Road Bulk Warehouse 22.13 705,600 100% 4300 Cemetery Road Bulk Warehouse 62.71 255,470 100% ---------- ----- SUBTOTAL OR AVERAGE 1,665,653 99% ---------- ----- </TABLE> 11
13 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- ---------- ------------ --------- <S> <C> <C> <C> DALLAS 1275-1281 Roundtable Drive Dallas, TX 1966 2406-2416 Walnut Ridge Dallas, TX 1978 12750 Perimeter Drive Dallas, TX 1979 1324-1343 Roundtable Drive Dallas, TX 1972 1405-1409 Avenue II East Grand Prairie, TX 1969 2651-2677 Manana Dallas, TX 1966 2401-2419 Walnut Ridge Dallas, TX 1978 4248-4252 Simonton Farmers Ranch, TX 1973 900-906 Great Southwest Pkwy Arlington, TX 1972 2179 Shiloh Road Garland, TX 1982 2159 Shiloh Road Garland, TX 1982 2701 Shiloh Road Garland, TX 1981 12784 Perimeter Drive (k) Dallas, TX 1981 3000 West Commerce Dallas, TX 1980 3030 Hansboro Dallas, TX 1971 5222 Cockrell Hill Dallas, TX 1973 405-407 113th Arlington, TX 1969 816 111th Street Arlington, TX 1972 DAYTON 6094-6104 Executive Boulevard Huber Heights, OH 1975 6202-6220 Executive Boulevard Huber Heights, OH 1996 6268-6294 Executive Boulevard Huber Heights, OH 1989 5749-5753 Executive Boulevard Huber Heights, OH 1975 2200-2224 Sandridge Road Moriane, OH 1983 6230-6266 Executive Boulevard Huber Heights, OH 1979 DENVER 7100 North Broadway - Bldg 1 Denver, CO 1978 7100 North Broadway - Bldg 2 Denver, CO 1978 7100 North Broadway - Bldg 3 Denver, CO 1978 7100 North Broadway - Bldg 5 Denver, CO 1978 7100 North Broadway - Bldg 6 Denver, CO 1978 10691 East Bethany Drive Aurora, CO 1979 20100 East 32nd Avenue Parkway Aurora, CO 1997 15700 - 15820 West 6th Avenue Golden, CO 1978 12850-15884 West 6th Avenue Golden, CO 1978 5454 Washington Denver, CO 1985 5801 West 6th Avenue Lakewood, CO 1980 5805 West 6th Avenue Lakewood, CO 1980 5815 West 6th Avenue Lakewood, CO 1980 5825 West 6th Avenue Lakewood, CO 1980 5835 West 6th Avenue Lakewood, CO 1980 525 East 70th Street Denver, CO 1985 565 East 70th Street Denver, CO 1985 605 East 70th Street Denver, CO 1985 625 East 70th Street Denver, CO 1985 665 East 70th Street Denver, CO 1985 700 West 48th Street Denver, CO 1984 702 West 48th Street Denver, CO 1984 3370 North Peoria Street Aurora, CO 1978 3390 North Peoria Street Aurora, CO 1978 3508-3538 North Peoria Street Aurora, CO 1978 3568 North Peoria Street Aurora, CO 1978 3350 North Peoria Street Aurora, CO 1978 4785 Elati Denver, CO 1972 4770 Fox Street Denver, CO 1972 1550 West Evans Denver, CO 1975 12401-41 East 37th Avenue Denver, CO 1980 3751 - 71 Revere Street Denver, CO 1980 3871 Revere Street Denver, CO 1980 5454 Havana Street Denver, CO 1980 5500 Havana Street Denver, CO 1980 4570 Ivy Street Denver, CO 1985 5855 Stapleton Drive North Denver, CO 1985 5885 Stapleton Drive North Denver, CO 1985 5200-5280 North Broadway Denver, CO 1977 5977-5995 North Broadway Denver, CO 1978 2952-5978 North Broadway Denver, CO 1978 6400 North Broadway Denver, CO 1982 875 Parfer Street Lakewood, CO 1975 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- ------- --- -------- <S> <C> <C> <C> <C> DALLAS 1275-1281 Roundtable Drive Light Industrial 1.75 30,642 100% 2406-2416 Walnut Ridge Light Industrial 1.76 44,000 100% 12750 Perimeter Drive Light Industrial 6.72 178,200 100% 1324-1343 Roundtable Drive Light Industrial 2.09 47,000 100% 1405-1409 Avenue II East Light Industrial 1.79 36,000 100% 2651-2677 Manana Bulk Warehouse 2.55 82,229 100% 2401-2419 Walnut Ridge Light Industrial 1.20 30,000 100% 4248-4252 Simonton Bulk Warehouse 8.18 205,693 100% 900-906 Great Southwest Pkwy Bulk Warehouse 3.20 69,761 100% 2179 Shiloh Road Bulk Warehouse 3.63 65,700 100% 2159 Shiloh Road Light Industrial 1.15 20,800 100% 2701 Shiloh Road Bulk Warehouse 8.20 214,650 100% 12784 Perimeter Drive (k) Light Industrial 4.57 95,671 86% 3000 West Commerce Bulk Warehouse 11.23 128,478 100% 3030 Hansboro Bulk Warehouse 3.71 100,000 100% 5222 Cockrell Hill Bulk Warehouse 4.79 96,506 100% 405-407 113th Bulk Warehouse 2.75 60,000 100% 816 111th Street Bulk Warehouse 2.89 65,000 100% ---------- ------ SUBTOTAL OR AVERAGE 1,570,330 99% ---------- ------ DAYTON 6094-6104 Executive Boulevard Light Industrial 3.33 43,200 100% 6202-6220 Executive Boulevard Light Industrial 3.79 64,000 100% 6268-6294 Executive Boulevard Light Industrial 4.03 60,800 100% 5749-5753 Executive Boulevard Light Industrial 1.15 12,000 50% 2200-2224 Sandridge Road Light Industrial 2.96 58,746 100% 6230-6266 Executive Boulevard Light Industrial 5.30 84,000 100% ---------- ----- SUBTOTAL OR AVERAGE 322,746 98% ---------- ----- DENVER 7100 North Broadway - Bldg 1 Light Industrial 16.80 32,269 100% 7100 North Broadway - Bldg 2 Light Industrial 16.90 32,500 98% 7100 North Broadway - Bldg 3 Light Industrial 11.60 22,259 84% 7100 North Broadway - Bldg 5 Light Industrial 15.00 28,789 57% 7100 North Broadway - Bldg 6 Light Industrial 22.50 38,255 91% 10691 East Bethany Drive Light Industrial 1.84 25,026 91% 20100 East 32nd Avenue Parkway Light Industrial 4.10 51,300 90% 15700 - 15820 West 6th Avenue Light Industrial 1.92 52,758 96% 12850-15884 West 6th Avenue Light Industrial 1.92 31,856 100% 5454 Washington Light Industrial 4.00 34,740 88% 5801 West 6th Avenue Light Industrial 1.03 15,500 60% 5805 West 6th Avenue Light Industrial 1.03 20,358 93% 5815 West 6th Avenue Light Industrial 1.03 20,765 100% 5825 West 6th Avenue Light Industrial 1.03 20,748 100% 5835 West 6th Avenue Light Industrial 1.03 20,490 100% 525 East 70th Street Light Industrial 5.18 12,000 100% 565 East 70th Street Light Industrial 5.18 29,990 88% 605 East 70th Street Light Industrial 5.18 34,000 88% 625 East 70th Street Light Industrial 5.18 24,000 100% 665 East 70th Street Light Industrial 5.18 24,000 100% 700 West 48th Street Light Industrial 5.40 53,471 100% 702 West 48th Street Light Industrial 5.40 130,426 22% 3370 North Peoria Street Light Industrial 1.64 26,993 100% 3390 North Peoria Street Light Industrial 1.46 22,699 100% 3508-3538 North Peoria Street Light Industrial 2.61 40,653 100% 3568 North Peoria Street Light Industrial 2.24 34,775 85% 3350 North Peoria Street Light Industrial 2.16 33,573 100% 4785 Elati Light Industrial 3.34 34,777 100% 4770 Fox Street Light Industrial 3.38 26,565 100% 1550 West Evans Light Industrial 3.92 78,788 100% 12401-41 East 37th Avenue Light Industrial 1.19 26,922 77% 3751 - 71 Revere Street Light Industrial 2.41 54,666 100% 3871 Revere Street Light Industrial 3.19 75,625 100% 5454 Havana Street Light Industrial 2.68 42,504 100% 5500 Havana Street Light Industrial 2.19 34,776 100% 4570 Ivy Street Light Industrial 1.77 31,355 100% 5855 Stapleton Drive North Light Industrial 2.33 41,268 100% 5885 Stapleton Drive North Light Industrial 3.05 53,893 100% 5200-5280 North Broadway Light Industrial 1.54 31,780 100% 5977-5995 North Broadway Light Industrial 4.96 50,280 100% 2952-5978 North Broadway Light Industrial 7.91 88,977 100% 6400 North Broadway Light Industrial 4.51 69,430 100% 875 Parfer Street Light Industrial 3.06 49,216 100% </TABLE> 12
14 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- --------- ------------ --------- <S> <C> <C> <C> DENVER (CON'T ) 4721 Ironton Street Denver, CO 1969 833 Parfer Street Lakewood, CO 1974 11005 West 8th Avenue Lakewood, CO 1974 7100 North Broadway - 7 Denver, CO 1985 7100 North Broadway - 8 Denver, CO 1985 6804 East 48th Avenue Denver, CO 1973 15350 East Hinsdale Drive Denver, CO 1987 15353 East Hinsdale Drive Englewood, CO 1987 15373 East Hinsdale Drive Englewood, CO 1987 4611 East 46th Avenue Denver, CO 1974 East 47th Drive -A Denver, CO 1997 East 47th Drive - B Denver, CO 1997 Centennial Airport Business Pk Denver, CO 1997 9500 W. 49th Street - A Wheatridge, CO 1997 9500 W. 49th Street - B Wheatridge, CO 1997 9500 W. 49th Street - C Wheatridge, CO 1997 9500 W. 49th Street - D Wheatridge, CO 1997 8100 South Park Way - A Littleton, CO 1997 8100 South Park Way - B Littleton, CO 1984 8100 South Park Way - C Littleton, CO 1984 451-591 East 124th Avenue Littleton, CO 1979 14100 East Jewell Aurora, CO 1980 14190 East Jewell Aurora, CO 1980 608 Garrison Street Lakewood, CO 1984 610 Garrison Street Lakewood, CO 1984 1111 West Evans (A&C) Denver, CO 1986 1111 West Evans (B) Denver, CO 1986 15000 West 6th Avenue Golden, CO 1985 14998 West 6th Avenue E Golden, CO 1995 14998 West 6th Avenue F Englewood, CO 1995 12503 East Euclid Drive Denver, CO 1986 6547 South Racine Circle Englewood, CO 1996 7800 East Iliff Avenue Denver, CO 1983 2369 South Trenton Way Denver, CO 1983 2370 South Trenton Way Denver, CO 1983 2422 South Trenton Way Denver, CO 1983 2452 South Trenton Way Denver, CO 1983 8122 South Park Lane - A Littleton, CO 1986 8122 South Park Lane - B Littleton, CO 1986 1600 South Abilene Aurora, CO 1986 1620 South Abilene Aurora, CO 1986 1640 South Abilene Aurora, CO 1986 13900 East Florida Avenue Aurora, CO 1986 4301 South Federal Boulevard Englewood, CO 1997 14401-14492 East 33rd Place Aurora, CO 1979 11701 East 53rd Avenue Denver, CO 1985 5401 Oswego Street Denver, CO 1985 2630 West 2nd Avenue Denver, CO 1970 2650 West 2nd Avenue Denver, CO 1970 14818 West 6th Avenue Bldg A Golden, CO 1985 14828 West 6th Avenue Bldg B Golden, CO 1985 2075 South Valentia Denver, CO 1981 DES MOINES 1550 East Washington Avenue Des Moines, IA 1987 1600 East Washington Avenue Des Moines, IA 1987 5701 NE 17th Street Des Moines, IA 1968 4121 McDonald Avenue Des Moines, IA 1977 4141 McDonald Avenue Des Moines, IA 1976 4161 McDonald Avenue Des Moines, IA 1979 DETROIT 2654 Elliott Troy, MI (c) 1986 1731 Thorncroft Troy, MI (c) 1969 1653 E. Maple Troy, MI (c) 1990 47461 Clipper Plymouth, MI (c) 1992 47522 Galleon Plymouth, MI (c) 1990 4150 Varsity Drive Ann Arbor, MI (c) 1986 1330 Crooks Road Clawson, MI (c) 1960 12000 Merriman Road Livonia, MI 1975 238 Executive Drive Troy, MI 1973 256 Executive Drive Troy, MI 1974 301 Executive Drive Troy, MI 1974 449 Executive Drive Troy, MI 1975 501 Executive Drive Troy, MI 1984 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- -------- --- -------- <S> <C> <C> <C> <C> DENVER (CON'T ) 4721 Ironton Street Light Industrial 2.84 50,160 100% 833 Parfer Street Light Industrial 2.57 24,800 100% 11005 West 8th Avenue Light Industrial 2.57 25,672 100% 7100 North Broadway - 7 Light Industrial 2.30 24,822 97% 7100 North Broadway - 8 Light Industrial 2.30 9,107 100% 6804 East 48th Avenue Light Industrial 2.23 46,464 100% 15350 East Hinsdale Drive Light Industrial 3.18 20,800 100% 15353 East Hinsdale Drive Light Industrial 2.28 15,600 100% 15373 East Hinsdale Drive Light Industrial 0.85 6,240 100% 4611 East 46th Avenue Light Industrial 1.20 28,600 100% East 47th Drive -A Light Industrial 3.00 51,200 100% East 47th Drive - B Light Industrial 2.50 43,720 100% Centennial Airport Business Pk Light Industrial 3.20 59,270 100% 9500 W. 49th Street - A Light Industrial 1.74 19,217 100% 9500 W. 49th Street - B Light Industrial 1.74 15,441 100% 9500 W. 49th Street - C Light Industrial 1.74 29,174 100% 9500 W. 49th Street - D Light Industrial 1.74 41,615 100% 8100 South Park Way - A Light Industrial 3.33 52,160 100% 8100 South Park Way - B Light Industrial 0.78 12,259 100% 8100 South Park Way - C Light Industrial 4.28 67,520 100% 451-591 East 124th Avenue Light Industrial 4.96 59,711 100% 14100 East Jewell Light Industrial 3.67 58,553 100% 14190 East Jewell Light Industrial 1.84 29,442 92% 608 Garrison Street Light Industrial 2.17 25,000 86% 610 Garrison Street Light Industrial 2.17 25,000 89% 1111 West Evans (A&C) Light Industrial 2.00 36,894 100% 1111 West Evans (B) Light Industrial 0.50 4,725 100% 15000 West 6th Avenue Light Industrial 5.25 69,583 85% 14998 West 6th Avenue E Light Industrial 2.29 42,832 100% 14998 West 6th Avenue F Light Industrial 2.29 20,424 100% 12503 East Euclid Drive Light Industrial 10.90 97,871 100% 6547 South Racine Circle Light Industrial 3.92 60,112 59% 7800 East Iliff Avenue Light Industrial 3.06 22,296 96% 2369 South Trenton Way Light Industrial 4.80 33,267 100% 2370 South Trenton Way Light Industrial 3.27 22,735 100% 2422 South Trenton Way Light Industrial 3.94 27,413 73% 2452 South Trenton Way Light Industrial 6.78 47,931 100% 8122 South Park Lane - A Light Industrial 5.09 46,182 95% 8122 South Park Lane - B Light Industrial 2.28 20,389 100% 1600 South Abilene Light Industrial 3.53 47,930 100% 1620 South Abilene Light Industrial 2.04 27,666 100% 1640 South Abilene Light Industrial 2.80 37,948 100% 13900 East Florida Avenue Light Industrial 1.44 19,493 86% 4301 South Federal Boulevard Light Industrial 2.80 35,381 100% 14401-14492 East 33rd Place Light Industrial 4.75 100,100 100% 11701 East 53rd Avenue Light Industrial 4.19 81,981 100% 5401 Oswego Street Light Industrial 2.80 53,838 100% 2630 West 2nd Avenue Light Industrial 0.50 8,260 100% 2650 West 2nd Avenue Light Industrial 2.80 36,081 100% 14818 West 6th Avenue Bldg A Light Industrial 2.54 39,776 100% 14828 West 6th Avenue Bldg B Light Industrial 2.54 41,925 91% 2075 South Valentia Light Industrial 2.42 22,093 86% ---------- ----- SUBTOTAL OR AVERAGE 3,651,688 94% ---------- ----- DES MOINES 1550 East Washington Avenue Bulk Warehouse 13.25 192,466 100% 1600 East Washington Avenue Bulk Warehouse 6.78 81,866 100% 5701 NE 17th Street Light Industrial 2.30 54,000 100% 4121 McDonald Avenue Bulk Warehouse 11.02 177,431 100% 4141 McDonald Avenue Bulk Warehouse 11.03 263,196 100% 4161 McDonald Avenue Bulk Warehouse 11.02 164,084 100% ---------- ----- SUBTOTAL OR AVERAGE 933,043 100% ---------- ----- DETROIT 2654 Elliott Light Industrial 0.75 9,700 0% 1731 Thorncroft Light Industrial 2.26 38,000 100% 1653 E. Maple Light Industrial 1.38 23,392 100% 47461 Clipper Light Industrial 1.10 11,600 100% 47522 Galleon Light Industrial 0.90 13,507 100% 4150 Varsity Drive Light Industrial 4.32 26,400 100% 1330 Crooks Road Light Industrial 5.55 42,360 100% 12000 Merriman Road Bulk Warehouse 9.28 180,000 100% 238 Executive Drive Bulk Warehouse 1.32 13,740 100% 256 Executive Drive Bulk Warehouse 1.12 11,273 100% 301 Executive Drive Bulk Warehouse 1.27 20,411 100% 449 Executive Drive Bulk Warehouse 2.12 33,001 100% 501 Executive Drive Light Industrial 1.57 18,061 100% </TABLE> 13
15 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- -------- ------------ ---------- <S> <C> <C> <C> DETROIT (CON'T ) 645 Executive Drive Troy, MI 1972 451 Robbins Drive Troy, MI 1975 700 Stephenson Highway Troy, MI 1978 800 Stephenson Highway Troy, MI 1979 1150 Stephenson Highway Troy, MI 1982 1200 Stephenson Highway Troy, MI 1980 1035 Crooks Road Troy, MI 1980 1095 Crooks Road Troy, MI 1986 1416 Meijer Drive Troy, MI 1980 1624 Meijer Drive Troy, MI 1984 1972 Meijer Drive Troy, MI 1985 2112 Meijer Drive Troy, MI 1980 1621 Northwood Drive Troy, MI 1977 1707 Northwood Drive Troy, MI 1983 1749 Northwood Drive Troy, MI 1977 1788 Northwood Drive Troy, MI 1977 1821 Northwood Drive Troy, MI 1977 1826 Northwood Drive Troy, MI 1977 1864 Northwood Drive Troy, MI 1977 1902 Northwood Drive Troy, MI 1977 1921 Northwood Drive Troy, MI 1977 2230 Elliott Avenue Troy, MI 1974 2237 Elliott Avenue Troy, MI 1974 2277 Elliott Avenue Troy, MI 1975 2291 Elliott Avenue Troy, MI 1974 2451 Elliott Avenue Troy, MI 1974 2730 Research Drive Rochester Hills, MI 1988 2791 Research Drive Rochester Hills, MI 1991 2871 Research Drive Rochester Hills, MI 1991 2911 Research Drive Rochester Hills, MI 1992 3011 Research Drive Rochester Hills, MI 1988 2870 Technology Drive Rochester Hills, MI 1988 2890 Technology Drive Rochester Hills, MI 1991 2900 Technology Drive Rochester Hills, MI 1992 2920 Technology Drive Rochester Hills, MI 1992 2930 Technology Drive Rochester Hills, MI 1991 2950 Technology Drive Rochester Hills, MI 1991 2960 Technology Drive Rochester Hills, MI 1992 23014 Commerce Drive Farmington Hills, MI 1983 23028 Commerce Drive Farmington Hills, MI 1983 25065 Commerce Drive Farmington Hill, MI 1983 23035 Commerce Drive Farmington Hills, MI 1983 23042 Commerce Drive Farmington Hills, MI 1983 23070 Commerce Drive Farmington Hills, MI 1983 23079 Commerce Drive Farmington Hills, MI 1983 23093 Commerce Drive Farmington Hills, MI 1983 23135 Commerce Drive Farmington Hills, MI 1986 23149 Commerce Drive Farmington Hills, MI 1985 23163 Commerce Drive Farmington Hills, MI 1986 23177 Commerce Drive Farmington Hills, MI 1986 23192 Commerce Drive Farmington Hills, MI 1986 23206 Commerce Drive Farmington Hills, MI 1985 23290 Commerce Drive Farmington Hills, MI 1980 23370 Commerce Drive Farmington Hills, MI 1980 24492 Indoplex Circle Farmington Hills, MI 1976 24528 Indoplex Circle Farmington Hills, MI 1976 31800 Plymouth Road - Bldg 1 Livonia, MI (a) 1968/89 31800 Plymouth Road - Bldg 2 Livonia, MI (a) 1968/89 31800 Plymouth Road - Bldg 3 Livonia, MI (a) 1968/89 31800 Plymouth Road - Bldg 6 Livonia, MI (a) 1968/89 31800 Plymouth Road - Bldg 7 Livonia, MI (a) 1968/89 21477 Bridge Street Southfield, MI 1986 2965 Technology Drive Rochester Hills, MI (b) 1995 1451 Lincoln Avenue Madison Heights, MI (b) 1967 4400 Purks Drive Auburn Hills, MI (b) 1987 4177A Varsity Drive Ann Arbor, MI (b) 1993 6515 Cobb Drive Sterling Heights, MI (b) 1984 32450 N. Avis Drive Madison Heights, MI 1974 32200 N. Avis Drive Madison Heights, MI 1973 32440-32442 Industrial Drive Madison Heights, MI 1979 32450 Industrial Drive Madison Heights, MI 1979 11813 Hubbard Livonia, MI 1979 11844 Hubbard Livonia, MI 1979 11866 Hubbard Livonia, MI 1979 12050-12190 Hubbard (j) Livonia, MI 1981 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- -------- --- -------- <S> <C> <C> <C> <C> DETROIT (CON'T) 645 Executive Drive Light Industrial 2.27 32,470 100% 451 Robbins Drive Bulk Warehouse 1.88 28,401 100% 700 Stephenson Highway Light Industrial 3.13 29,344 100% 800 Stephenson Highway Light Industrial 4.39 48,200 0% 1150 Stephenson Highway Light Industrial 1.70 18,107 100% 1200 Stephenson Highway Light Industrial 2.65 25,025 100% 1035 Crooks Road Light Industrial 1.74 23,320 100% 1095 Crooks Road Light Industrial 2.83 35,042 100% 1416 Meijer Drive Light Industrial 1.20 17,944 100% 1624 Meijer Drive Light Industrial 3.42 44,040 100% 1972 Meijer Drive Light Industrial 2.36 37,075 100% 2112 Meijer Drive Bulk Warehouse 4.12 34,558 100% 1621 Northwood Drive Bulk Warehouse 1.54 24,900 100% 1707 Northwood Drive Light Industrial 1.69 28,750 100% 1749 Northwood Drive Bulk Warehouse 1.69 26,125 100% 1788 Northwood Drive Light Industrial 1.55 12,480 100% 1821 Northwood Drive Light Industrial 2.07 35,050 100% 1826 Northwood Drive Light Industrial 1.22 12,480 100% 1864 Northwood Drive Light Industrial 1.55 12,480 100% 1902 Northwood Drive Light Industrial 3.65 62,925 100% 1921 Northwood Drive Bulk Warehouse 2.33 42,000 100% 2230 Elliott Avenue Bulk Warehouse 0.90 12,612 100% 2237 Elliott Avenue Light Industrial 0.96 12,612 100% 2277 Elliott Avenue Light Industrial 0.96 12,612 100% 2291 Elliott Avenue Bulk Warehouse 1.06 12,200 100% 2451 Elliott Avenue Bulk Warehouse 1.68 24,331 100% 2730 Research Drive Bulk Warehouse 3.52 57,850 100% 2791 Research Drive Light Industrial 4.48 64,199 100% 2871 Research Drive Bulk Warehouse 3.55 49,543 100% 2911 Research Drive Bulk Warehouse 5.72 80,078 100% 3011 Research Drive Light Industrial 2.55 32,637 100% 2870 Technology Drive Bulk Warehouse 2.41 24,445 100% 2890 Technology Drive Light Industrial 1.76 24,410 100% 2900 Technology Drive Light Industrial 2.15 31,047 100% 2920 Technology Drive Bulk Warehouse 1.48 19,011 100% 2930 Technology Drive Bulk Warehouse 1.41 17,994 100% 2950 Technology Drive Light Industrial 1.48 19,996 100% 2960 Technology Drive Bulk Warehouse 3.83 41,565 100% 23014 Commerce Drive Light Industrial 0.65 7,200 100% 23028 Commerce Drive Bulk Warehouse 1.26 20,265 0% 25065 Commerce Drive Light Industrial 0.91 12,705 100% 23035 Commerce Drive Light Industrial 1.23 15,200 100% 23042 Commerce Drive Light Industrial 0.75 8,790 100% 23070 Commerce Drive Light Industrial 1.43 16,765 100% 23079 Commerce Drive Light Industrial 0.85 10,830 100% 23093 Commerce Drive Bulk Warehouse 3.87 49,040 100% 23135 Commerce Drive Light Industrial 2.02 23,969 100% 23149 Commerce Drive Bulk Warehouse 6.32 47,700 100% 23163 Commerce Drive Bulk Warehouse 1.51 19,020 100% 23177 Commerce Drive Bulk Warehouse 2.29 32,127 100% 23192 Commerce Drive Light Industrial 0.69 7,306 100% 23206 Commerce Drive Light Industrial 1.30 19,822 100% 23290 Commerce Drive Bulk Warehouse 2.56 42,930 100% 23370 Commerce Drive Light Industrial 0.67 8,741 0% 24492 Indoplex Circle Bulk Warehouse 1.63 24,000 100% 24528 Indoplex Circle Bulk Warehouse 2.26 34,650 100% 31800 Plymouth Road - Bldg 1 Light Industrial 42.71 705,829 99% 31800 Plymouth Road - Bldg 2 Bulk Warehouse 11.81 184,614 100% 31800 Plymouth Road - Bldg 3 Bulk Warehouse 6.13 98,024 96% 31800 Plymouth Road - Bldg 6 Bulk Warehouse 9.06 183,959 100% 31800 Plymouth Road - Bldg 7 Bulk Warehouse 1.64 26,836 100% 21477 Bridge Street Light Industrial 3.10 41,500 100% 2965 Technology Drive Light Industrial 4.92 66,395 100% 1451 Lincoln Avenue Light Industrial 3.92 75,000 100% 4400 Purks Drive Light Industrial 13.04 87,100 100% 4177A Varsity Drive Light Industrial 2.48 11,050 100% 6515 Cobb Drive Light Industrial 2.91 47,597 100% 32450 N. Avis Drive Light Industrial 3.23 55,820 100% 32200 N. Avis Drive Light Industrial 6.15 88,700 100% 32440-32442 Industrial Drive Light Industrial 1.41 19,200 63% 32450 Industrial Drive Light Industrial 0.76 10,350 100% 11813 Hubbard Light Industrial 1.95 33,300 100% 11844 Hubbard Light Industrial 2.16 38,500 100% 11866 Hubbard Light Industrial 2.32 41,380 100% 12050-12190 Hubbard (j) Light Industrial 6.10 85,086 100% </TABLE> 14
16 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- --------- ------------ --------- <S> <C> <C> <C> DETROIT (CON'T ) 38200 Plymouth Livonia, MI 1997 38220 Plymouth Livonia, MI 1988 38300 Plymouth Livonia, MI 1997 12707 Eckles Road Plymouth, MI 1990 9300-9328 Harrison Rd Romulus, MI 1978 9330-9358 Harrison Rd Romulus, MI 1978 28420-28448 Highland Rd Romulus, MI 1979 28450-28478 Highland Rd Romulus, MI 1979 28421-28449 Highland Rd Romulus, MI 1980 28451-28479 Highland Rd Romulus, MI 1980 28825-28909 Highland Rd Romulus, MI 1981 28933-29017 Highland Rd Romulus, MI 1982 28824-28908 Highland Rd Romulus, MI 1982 28932-29016 Highland Rd Romulus, MI 1982 9710-9734 Harrison Road Romulus, MI 1987 9740-9772 Harrison Road Romulus, MI 1987 9840-9868 Harrison Road Romulus, MI 1987 9800-9824 Harrison Road Romulus, MI 1987 29265-29285 Airport Drive Romulus, MI 1983 29185-29225 Airport Drive Romulus, MI 1983 29149-29165 Airport Drive Romulus, MI 1984 29101-29115 Airport Drive Romulus, MI 1985 29031-29045 Airport Drive Romulus, MI 1985 29050-29062 Airport Drive Romulus, MI 1986 29120-29134 Airport Drive Romulus, MI 1986 29200-29214 Airport Drive Romulus, MI 1985 9301-9339 Middlebelt Road Romulus, MI 1983 21405 Trolley Industrial Road Taylor, MI 1971 26980 Trolley Industrial Drive Taylor, MI 1997 GRAND RAPIDS 3232 Kraft Avenue Grand Rapids, MI (c) 1988 8181 Logistics Drive Grand Rapids, MI (c) 1990 5062 Kendrick Court Grand Rapids, MI (c) 1987 2 84th Street Byron Center, MI 1986 100 84th Street Byron Center, MI 1979 150 84th Street Byron Center, MI 1977 511 76th Street Grand Rapids, MI 1986 553 76th Street Grand Rapids, MI 1985 555 76th Street Grand Rapids, MI 1987 2925 Remico Avenue Grandville, MI 1988 2935 Walkent Court Grand Rapids, MI 1991 3300 Kraft Avenue Grand Rapids, MI 1987 3366 Kraft Avenue Grand Rapids, MI 1987 4939 Starr Avenue Grand Rapids, MI 1985 5001 Kendrick Court Grand Rapids, MI 1983 5050 Kendrick Court Grand Rapids, MI (a) 1988 5015 52nd Street Grand Rapids, MI (a) 1987 5025 28th Street Grand Rapids, MI 1967 5079 33rd Street Grand Rapids, MI 1990 5333 33rd Street Grand Rapids, MI 1991 5130 Patterson Ave Grand Rapids, MI 1987 425 Gordon Industrial Court Grand Rapids, MI (b) 1990 2851 Prairie Street Grandville, MI (b) 1989 2945 Walkent Court Grand Rapids, MI (b) 1993 537 76th Street Grand Rapids, MI (b) 1987 HOUSTON 2102-2314 Edwards Street Houston, TX 1961 4545 Eastpark Drive Houston, TX 1972 3351 Ranch Street Houston, TX 1970 3851 Yale Street Houston, TX 1971 3337-3347 Ranch Street Houston, TX 1970 8505 North Loop East Houston, TX 1981 4749-4799 Eastpark Dr Houston, TX 1979 4851 Homestead Road Houston, TX 1973 3365-3385 Ranch Street Houston, TX 1970 5050 Campbell Road Houston, TX 1970 4300 Pine Timbers Houston, TX 1980 10600 Hampstead Houston, TX 1974 2300 Fairway Park Drive Houston, TX 1974 7969 Blakenship Houston, TX 1972 8001 Kempwood Houston, TX 1972 7901 Blankenship Houston, TX 1972 2500-2530 Fairway Park Houston, TX 1974 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- ------- --- -------- <S> <C> <C> <C> <C> DETROIT (CON'T ) 38200 Plymouth Bulk Warehouse 11.43 140,365 100% 38220 Plymouth Bulk Warehouse 13.14 145,232 100% 38300 Plymouth Bulk Warehouse 6.95 127,800 100% 12707 Eckles Road Light Industrial 2.62 42,300 100% 9300-9328 Harrison Rd Bulk Warehouse 2.53 29,280 75% 9330-9358 Harrison Rd Bulk Warehouse 2.53 29,280 63% 28420-28448 Highland Rd Bulk Warehouse 2.53 29,280 100% 28450-28478 Highland Rd Bulk Warehouse 2.53 29,340 100% 28421-28449 Highland Rd Bulk Warehouse 2.53 29,280 88% 28451-28479 Highland Rd Bulk Warehouse 2.53 29,280 100% 28825-28909 Highland Rd Bulk Warehouse 2.53 29,284 100% 28933-29017 Highland Rd Bulk Warehouse 2.53 29,280 100% 28824-28908 Highland Rd Bulk Warehouse 2.53 29,280 100% 28932-29016 Highland Rd Bulk Warehouse 2.53 29,280 100% 9710-9734 Harrison Road Bulk Warehouse 2.22 25,925 100% 9740-9772 Harrison Road Bulk Warehouse 2.53 29,414 50% 9840-9868 Harrison Road Bulk Warehouse 2.53 29,280 100% 9800-9824 Harrison Road Bulk Warehouse 2.22 25,620 100% 29265-29285 Airport Drive Bulk Warehouse 2.05 23,707 100% 29185-29225 Airport Drive Bulk Warehouse 3.17 36,658 100% 29149-29165 Airport Drive Bulk Warehouse 2.89 33,440 100% 29101-29115 Airport Drive Bulk Warehouse 2.53 29,287 100% 29031-29045 Airport Drive Bulk Warehouse 2.53 29,280 100% 29050-29062 Airport Drive Bulk Warehouse 2.22 25,620 100% 29120-29134 Airport Drive Bulk Warehouse 2.53 29,282 100% 29200-29214 Airport Drive Bulk Warehouse 2.53 29,280 100% 9301-9339 Middlebelt Road Light Industrial 1.29 15,170 100% 21405 Trolley Industrial Road Bulk Warehouse 11.25 179,400 99% 26980 Trolley Industrial Drive Bulk Warehouse 5.43 102,400 100% ---------- ----- SUBTOTAL OR AVERAGE 5,302,927 97% ---------- ----- GRAND RAPIDS 3232 Kraft Avenue Bulk Warehouse 13.15 216,000 92% 8181 Logistics Drive Bulk Warehouse 10.00 222,000 100% 5062 Kendrick Court Bulk Warehouse 2.06 31,750 100% 2 84th Street Bulk Warehouse 3.01 30,000 67% 100 84th Street Bulk Warehouse 4.20 81,000 100% 150 84th Street Light Industrial 1.95 16,000 100% 511 76th Street Bulk Warehouse 14.44 202,500 100% 553 76th Street Light Industrial 1.16 10,000 59% 555 76th Street Bulk Warehouse 12.50 200,000 100% 2925 Remico Avenue Bulk Warehouse 3.40 66,505 100% 2935 Walkent Court Bulk Warehouse 6.13 64,961 42% 3300 Kraft Avenue Bulk Warehouse 11.57 200,000 100% 3366 Kraft Avenue Bulk Warehouse 12.35 200,000 94% 4939 Starr Avenue Bulk Warehouse 3.87 30,000 100% 5001 Kendrick Court Bulk Warehouse 4.00 61,500 100% 5050 Kendrick Court Bulk Warehouse 26.94 413,500 100% 5015 52nd Street Bulk Warehouse 4.11 61,250 100% 5025 28th Street Light Industrial 3.97 14,400 100% 5079 33rd Street Bulk Warehouse 6.74 109,875 100% 5333 33rd Street Bulk Warehouse 8.09 101,250 100% 5130 Patterson Ave Bulk Warehouse 6.57 30,000 100% 425 Gordon Industrial Court Bulk Warehouse 8.77 173,875 100% 2851 Prairie Street Bulk Warehouse 5.45 117,251 84% 2945 Walkent Court Bulk Warehouse 4.45 93,374 100% 537 76th Street Bulk Warehouse 5.26 80,000 100% ---------- ----- SUBTOTAL OR AVERAGE 2,826,991 96% ---------- ----- HOUSTON 2102-2314 Edwards Street Bulk Warehouse 5.02 115,248 100% 4545 Eastpark Drive Bulk Warehouse 3.80 81,295 100% 3351 Ranch Street Bulk Warehouse 4.04 82,500 100% 3851 Yale Street Bulk Warehouse 5.77 132,554 100% 3337-3347 Ranch Street Bulk Warehouse 2.29 60,085 100% 8505 North Loop East Bulk Warehouse 4.99 107,769 100% 4749-4799 Eastpark Dr Bulk Warehouse 7.75 182,563 100% 4851 Homestead Road Bulk Warehouse 3.63 142,250 90% 3365-3385 Ranch Street Bulk Warehouse 3.31 82,140 100% 5050 Campbell Road Bulk Warehouse 6.10 121,875 100% 4300 Pine Timbers Bulk Warehouse 4.80 113,400 100% 10600 Hampstead Light Industrial 1.26 19,063 100% 2300 Fairway Park Drive Light Industrial 1.25 19,008 100% 7969 Blakenship Light Industrial 2.27 48,140 100% 8001 Kempwood Light Industrial 1.45 33,034 100% 7901 Blankenship Light Industrial 2.17 48,000 100% 2500-2530 Fairway Park Bulk Warehouse 8.72 213,638 100% </TABLE> 15
17 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- --------- ------------ --------- HOUSTON (CON'T ) <S> <C> <C> <C> 6550 Longpointe Houston, TX 1980 1815 Turning Basin Drive Houston, TX 1980 1819 Turning Basin Drive Houston, TX 1980 4545 Mossford Drive Houston, TX 1975 1805 Turning Basin Drive Houston, TX 1980 7000 Empire Drive Houston, TX (i) 1980 9777 West Gulfbank Drive Houston, TX (i) 1980 INDIANAPOLIS 2900 North Shadeland Indianapolis, IN (d) 1957/1992 2400 North Shadeland Indianapolis, IN 1970 2402 North Shadeland Indianapolis, IN 1970 7901 West 21st Street Indianapolis, IN 1985 1445 Brookville Way Indianapolis, IN (d) 1989 1440 Brookville Way Indianapolis, IN (d) 1990 1240 Brookville Way Indianapolis, IN (d) 1990 1220 Brookville Way Indianapolis, IN (d) 1990 1345 Brookville Way Indianapolis, IN (e) 1992 1350 Brookville Way Indianapolis, IN (d) 1994 1315 Sadlier Circle East Drive Indianapolis, IN (e) 1970/1992 1341 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1322-1438 Sadlier Circle East Dr Indianapolis, IN (e) 1971/1992 1327-1441 Sadlier Circle West Dr Indianapolis, IN (e) 1992 1304 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1402 Sadlier Circle East Drive Indianapolis, IN (e) 1970/1992 1504 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1311 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1365 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1352-1354 Sadlier Circle E Drive Indianapolis, IN (e) 1970/1992 1335 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1327 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1425 Sadlier Circle East Drive Indianapolis, IN (e) 1971/1992 1230 Brookville Way Indianapolis, IN (d) 1995 6951 East 30th Street Indianapolis, IN 1995 6701 East 30th Street Indianapolis, IN 1995 6737 East 30th Street Indianapolis, IN 1995 1225 Brookville Way Indianapolis, IN 1997 6555 East 30th Street Indianapolis, IN 1969/1981 2432-2436 Shadeland Indianapolis, IN 1968 8402-8440 East 33rd Street Indianapolis, IN 1977 8520-8630 East 33rd Street Indianapolis, IN 1976 8710-8768 East 33rd Street Indianapolis, IN 1979 3316-3346 North Pagosa Court Indianapolis, IN 1977 3331 Raton Court Indianapolis, IN 1979 4430 Airport Expressway Indianapolis, IN 1970 6751 East 30th Street Indianapolis, IN 1997 LONG ISLAND 1140 Motor Parkway Huppauge, NY 1978 10 Edison Street Amityville, NY 1971 120 Secatogue Avenue Farmingdale, NY 1957 100 Lauman Lane Hicksville, NY 1968 200 Finn Court Farmingdale, NY 1965 243 Dixon Avenue Amityville, NY 1978 717 Broadway Avenue Holbrook, NY 1967 725 Broadway Avenue Holbrook, NY 1967 270 Duffy Avenue Hicksville, NY 1956 280 Duffy Avenue Hicksville, NY 1956 575 Underhill Boulevard Syosset, NY 1967 5 Sidney Court Lindenhurst, NY 1962 7 Sidney Court Lindenhurst, NY 1964 450 Commack Road Deer Park, NY 1964 99 Layfayette Drive Syosset, NY 1964 65 East Bethpage Road Plainview, NY 1960 171 Milbar Boulevard Farmingdale, NY 1961 95 Horseblock Road Yaphank, NY 1971 151-171 East 2nd Street Huntington, NY 1968 171-175 East 2nd Street Huntington, NY 1969 35 Bloomingdale Road Hicksville, NY 1962 15-39 Tec Street Hicksville, NY 1965 100 Tec Street Hicksville, NY 1965 51-89 Tec Street Hicksville, NY 1965 502 Old Country Road Hicksville, NY 1965 80-98 Tec Street Hicksville, NY 1965 201-233 Park Avenue Hicksville, NY 1962 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- ------- --- -------- HOUSTON (CON'T ) <S> <C> <C> <C> <C> 6550 Longpointe Bulk Warehouse 4.13 97,700 100% 1815 Turning Basin Drive Bulk Warehouse 6.34 139,630 100% 1819 Turning Basin Drive Bulk Warehouse 2.85 65,494 100% 4545 Mossford Drive Bulk Warehouse 3.56 66,565 100% 1805 Turning Basin Drive Bulk Warehouse 7.60 155,250 100% 7000 Empire Drive Light Industrial 6.25 94,781 94% 9777 West Gulfbank Drive Light Industrial 15.45 252,038 96% ---------- ----- SUBTOTAL OR AVERAGE 2,474,020 99% ---------- ----- INDIANAPOLIS 2900 North Shadeland Bulk Warehouse 60.00 976,273 98% 2400 North Shadeland Light Industrial 2.45 40,000 100% 2402 North Shadeland Light Industrial 7.55 121,539 100% 7901 West 21st Street Light Industrial 12.00 353,000 100% 1445 Brookville Way Light Industrial 8.79 115,200 100% 1440 Brookville Way Bulk Warehouse 9.64 166,400 100% 1240 Brookville Way Bulk Warehouse 3.50 63,000 100% 1220 Brookville Way Light Industrial 2.10 10,000 100% 1345 Brookville Way Light Industrial 5.50 132,000 100% 1350 Brookville Way Bulk Warehouse 2.87 38,460 100% 1315 Sadlier Circle East Drive Light Industrial 1.33 14,000 100% 1341 Sadlier Circle East Drive Light Industrial 2.03 32,400 100% 1322-1438 Sadlier Circle East Dr Light Industrial 3.79 36,000 100% 1327-1441 Sadlier Circle West Dr Light Industrial 5.50 54,000 100% 1304 Sadlier Circle East Drive Light Industrial 2.42 17,600 100% 1402 Sadlier Circle East Drive Light Industrial 4.13 40,800 100% 1504 Sadlier Circle East Drive Light Industrial 4.14 54,000 100% 1311 Sadlier Circle East Drive Light Industrial 1.78 13,200 100% 1365 Sadlier Circle East Drive Light Industrial 2.16 30,000 100% 1352-1354 Sadlier Circle E Drive Light Industrial 3.50 44,000 55% 1335 Sadlier Circle East Drive Light Industrial 1.20 20,000 100% 1327 Sadlier Circle East Drive Light Industrial 1.20 12,800 100% 1425 Sadlier Circle East Drive Light Industrial 2.49 5,000 100% 1230 Brookville Way Light Industrial 1.96 15,000 100% 6951 East 30th Street Light Industrial 3.81 44,000 100% 6701 East 30th Street Light Industrial 3.00 7,820 100% 6737 East 30th Street Bulk Warehouse 11.01 87,500 100% 1225 Brookville Way Light Industrial 1.00 10,000 100% 6555 East 30th Street Bulk Warehouse 37.00 331,826 78% 2432-2436 Shadeland Light Industrial 4.57 70,560 100% 8402-8440 East 33rd Street Light Industrial 4.70 55,200 100% 8520-8630 East 33rd Street Light Industrial 5.30 81,000 83% 8710-8768 East 33rd Street Light Industrial 4.70 43,200 100% 3316-3346 North Pagosa Court Light Industrial 5.10 81,000 100% 3331 Raton Court Light Industrial 2.80 35,000 100% 4430 Airport Expressway Bulk Warehouse 32.00 486,394 100% 6751 East 30th Street Bulk Warehouse 6.34 100,000 92% ---------- ----- SUBTOTAL OR AVERAGE 3,838,172 97% ---------- ----- LONG ISLAND 1140 Motor Parkway Bulk Warehouse 8.00 153,500 100% 10 Edison Street Light Industrial 1.40 34,400 100% 120 Secatogue Avenue Bulk Warehouse 2.60 63,571 66% 100 Lauman Lane Bulk Warehouse 1.90 36,700 74% 200 Finn Court Bulk Warehouse 5.00 105,000 100% 243 Dixon Avenue Light Industrial 1.30 22,250 100% 717 Broadway Avenue Bulk Warehouse 12.30 150,000 100% 725 Broadway Avenue Bulk Warehouse 8.00 122,160 82% 270 Duffy Avenue Light Industrial 8.40 134,382 97% 280 Duffy Avenue Light Industrial 2.60 49,200 100% 575 Underhill Boulevard Light Industrial 16.60 233,424 97% 5 Sidney Court Light Industrial 1.70 29,300 100% 7 Sidney Court Light Industrial 5.10 34,000 100% 450 Commack Road Light Industrial 5.10 60,005 96% 99 Layfayette Drive Bulk Warehouse 10.90 221,454 99% 65 East Bethpage Road Light Industrial 1.40 27,276 93% 171 Milbar Boulevard Light Industrial 2.30 62,600 99% 95 Horseblock Road Light Industrial 20.00 180,906 79% 151-171 East 2nd Street Light Industrial 2.70 42,725 100% 171-175 East 2nd Street Light Industrial 2.60 42,374 100% 35 Bloomingdale Road Light Industrial 1.40 32,850 100% 15-39 Tec Street Light Industrial 1.10 17,350 100% 100 Tec Street Light Industrial 1.20 25,000 100% 51-89 Tec Street Light Industrial 1.20 21,850 85% 502 Old Country Road Light Industrial 0.50 10,000 100% 80-98 Tec Street Light Industrial 0.75 13,050 100% 201-233 Park Avenue Light Industrial 1.70 36,917 100% </TABLE> 16
18 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- --------- ------------ --------- <S> <C> <C> <C> LONG ISLAND (CON'T ) 6851 Jericho Turnpike Syosset, NY 1969 One Fairchild Court Plainview, NY 1959 79 Express Street Plainview, NY 1972 92 Central Avenue Farmingdale, NY 1961 160 Engineer Drive Hicksville, NY 1966 260 Engineers Drive Hicksville, NY 1966 87-119 Engineers Drive (j) Hicksville, NY 1966 950-970 South Broadway Hicksville, NY 1966 290 Duffy Avenue Hicksville, NY (f) 1974 185 Price Parkway Farmingdale, NY 1969 62 Alpha Plaza Hicksville, NY 1968 90 Alpha Plaza Hicksville, NY 1969 325 Duffy Avenue Hicksville, NY 1970 939 Motor Parkway Hauppauge, NY 1977 2070 5th Avenue Ronkonkoma, NY 1975 200 13th Avenue Ronkonkoma, NY 1979 100 13th Avenue Ronkonkoma, NY 1979 1 Comac Loop Ronkonkoma, NY 1980 80 13th Avenue Ronkonkoma, NY 1983 90 13th Avenue Ronkonkoma, NY 1982 33 Comac Loop Ronkonkoma, NY 1983 101-125 Comac Street Ronkonkoma, NY 1985 MILWAUKEE N25 W23050 Paul Road Pewaukee, WI 1989 N25 W23255 Paul Road Pewaukee, WI 1987 N27 W23293 Roundy Drive Pewaukee, WI 1989 6523 North Sidney Place Glendale, WI 1978 8800 West Bradley Milwaukee, WI 1982 1435 North 113th Street Wauwatosa, WI 1993 11217-43 West Becher Street West Allis, WI 1979 2152 South 114th Street West Allis, WI 1980 4560 North 124th Street Wauwatosa, WI 1976 12221 West Feerick Street Wauwatosa, WI 1971 MINNEAPOLIS/ST. PAUL 2700 Freeway Boulevard Brooklyn Center, MN (c) 1981 6507-6545 Cecilia Circle Bloomington, MN 1980 6403-6545 Cecilia Drive Bloomington, MN 1980 1275 Corporate Center Drive Eagan, MN 1990 1279 Corporate Center Drive Eagan, MN 1990 2815 Eagandale Boulevard Eagan, MN 1990 6201 West 111th Street Bloomington, MN (a) 1987 6925-6943 Washington Avenue Edina, MN 1972 6955-6973 Washington Avenue Edina, MN 1972 7251-7267 Washington Avenue Edina, MN 1972 7301-7325 Washington Avenue Edina, MN 1972 7101 Winnetka Avenue North Brooklyn Park, MN (a) 1990 7600 Golden Triangle Drive Eden Prairie, MN 1989 7830-7848 12th Avenue South Bloomington, MN 1978 7850-7890 12th Avenue South Bloomington, MN 1978 7900 Main Street Northeast Fridley, MN 1973 7901 Beech Street Northeast Fridley, MN 1975 9901 West 74th Street Eden Prairie, MN 1983/88 10120 West 76th Street Eden Prairie, MN 1987 7615 Golden Triangle Eden Prairie, MN 1987 7625 Golden Triangle Drive Eden Prairie, MN 1987 2605 Fernbrook Lane North Plymouth, MN 1987 12155 Nicollet Avenue Burnsville, MN 1995 6655 Wedgewood Road Maple Grove, MN (b) 1989 900 Apollo Road Egan, MN (b) 1970 7316 Aspen Land Brooklyn Park, MN (b) 1978 10175-10205 Crosstown Circle Eden Prairie, MN 1980 11201 Hampshire Avenue South Bloomington, MN 1986 12220-12222 Nicollet Avenue Burnsville, MN 1989/90 12250-12268 Nicollet Avenue Burnsville, MN 1989/90 12224-12226 Nicollet Avenue Burnsville, MN 1989/90 305 2nd Street Northwest New Brighton, MN 1991 953 Westgate Drive St Paul, MN 1991 980 Lone Oak Road Eagan, MN 1992 990 Lone Oak Road Eagan, MN 1989 1030 Lone Oak Road Eagan, MN 1988 1060 Lone Oak Road Eagan, MN 1988 5400 Nathan Lane Plymouth, MN 1990 6464 Sycamore Court Maplegrove, MN 1990 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- -------- --- -------- <S> <C> <C> <C> <C> LONG ISLAND (CON'T ) 6851 Jericho Turnpike Light Industrial 11.80 134,991 91% One Fairchild Court Light Industrial 5.75 57,420 93% 79 Express Street Light Industrial 4.70 72,146 79% 92 Central Avenue Bulk Warehouse 4.70 72,000 92% 160 Engineer Drive Light Industrial 1.90 29,500 100% 260 Engineers Drive Light Industrial 2.80 52,900 100% 87-119 Engineers Drive (j) Light Industrial 1.70 36,800 100% 950-970 South Broadway Light Industrial 2.65 55,146 90% 290 Duffy Avenue Light Industrial 3.00 55,050 100% 185 Price Parkway Light Industrial 6.40 100,000 100% 62 Alpha Plaza Light Industrial 2.64 34,600 100% 90 Alpha Plaza Light Industrial 1.36 34,035 78% 325 Duffy Avenue Light Industrial 6.64 100,000 100% 939 Motor Parkway Light Industrial 1.50 21,900 0% 2070 5th Avenue Light Industrial 3.66 50,296 100% 200 13th Avenue Light Industrial 4.70 72,089 100% 100 13th Avenue Light Industrial 4.14 62,898 100% 1 Comac Loop Light Industrial 5.18 63,765 73% 80 13th Avenue Light Industrial 6.22 87,102 87% 90 13th Avenue Light Industrial 6.95 105,519 100% 33 Comac Loop Light Industrial 5.37 71,904 92% 101-125 Comac Street Light Industrial 8.42 99,467 95% ---------- ----- SUBTOTAL OR AVERAGE 3,431,772 94% ---------- ------ MILWAUKEE N25 W23050 Paul Road Light Industrial 4.50 37,765 100% N25 W23255 Paul Road Light Industrial 4.80 55,940 100% N27 W23293 Roundy Drive Light Industrial 3.64 39,468 100% 6523 North Sidney Place Light Industrial 4.00 43,440 83% 8800 West Bradley Light Industrial 8.00 78,000 100% 1435 North 113th Street Light Industrial 4.69 51,950 100% 11217-43 West Becher Street Light Industrial 1.74 29,099 100% 2152 South 114th Street Light Industrial 3.30 63,680 100% 4560 North 124th Street Light Industrial 1.31 25,150 100% 12221 West Feerick Street Light Industrial 1.90 39,800 100% ---------- ----- SUBTOTAL OR AVERAGE 464,292 98% ---------- ----- MINNEAPOLIS/ST. PAUL 2700 Freeway Boulevard Light Industrial 7.76 78,741 100% 6507-6545 Cecilia Circle Light Industrial 9.65 74,118 79% 6403-6545 Cecilia Drive Light Industrial 9.65 87,322 92% 1275 Corporate Center Drive Bulk Warehouse 1.50 19,675 100% 1279 Corporate Center Drive Bulk Warehouse 1.50 19,792 100% 2815 Eagandale Boulevard Bulk Warehouse 2.20 29,106 100% 6201 West 111th Street Bulk Warehouse 37.00 424,866 100% 6925-6943 Washington Avenue Light Industrial 2.75 37,169 88% 6955-6973 Washington Avenue Light Industrial 2.25 31,189 96% 7251-7267 Washington Avenue Light Industrial 1.82 26,250 100% 7301-7325 Washington Avenue Light Industrial 1.92 27,287 100% 7101 Winnetka Avenue North Light Industrial 14.18 252,978 100% 7600 Golden Triangle Drive Light Industrial 6.79 73,855 100% 7830-7848 12th Avenue South Light Industrial 8.11 82,837 100% 7850-7890 12th Avenue South Light Industrial 8.11 67,271 86% 7900 Main Street Northeast Bulk Warehouse 6.09 97,020 100% 7901 Beech Street Northeast Bulk Warehouse 6.07 97,020 100% 9901 West 74th Street Bulk Warehouse 8.86 150,000 100% 10120 West 76th Street Light Industrial 4.52 57,798 100% 7615 Golden Triangle Light Industrial 4.61 52,820 100% 7625 Golden Triangle Drive Light Industrial 4.61 73,125 97% 2605 Fernbrook Lane North Light Industrial 6.37 80,769 90% 12155 Nicollet Avenue Bulk Warehouse 5.80 48,000 100% 6655 Wedgewood Road Light Industrial 17.88 131,288 100% 900 Apollo Road Bulk Warehouse 39.00 312,265 100% 7316 Aspen Land Bulk Warehouse 6.63 97,640 100% 10175-10205 Crosstown Circle Light Industrial 2.30 30,335 98% 11201 Hampshire Avenue South Light Industrial 5.90 60,480 100% 12220-12222 Nicollet Avenue Light Industrial 1.80 17,116 100% 12250-12268 Nicollet Avenue Light Industrial 4.30 42,465 100% 12224-12226 Nicollet Avenue Light Industrial 2.40 23,607 78% 305 2nd Street Northwest Light Industrial 5.43 62,293 99% 953 Westgate Drive Light Industrial 3.17 51,906 100% 980 Lone Oak Road Light Industrial 11.40 154,950 100% 990 Lone Oak Road Light Industrial 11.41 153,607 100% 1030 Lone Oak Road Bulk Warehouse 6.30 83,076 100% 1060 Lone Oak Road Light Industrial 6.50 82,728 100% 5400 Nathan Lane Light Industrial 5.70 72,089 100% 6464 Sycamore Court Light Industrial 6.40 79,702 100% </TABLE> 17
19 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- ---------- ------------ --------- MINNEAPOLIS/ST. PAUL (CON'T) <S> <C> <C> <C> 6701 Parkway Circle Brooklyn Center, MN 1987 6601 Shingle Creek Brooklyn Center, MN 1985 6707 Shingle Creek Parkway Brooklyn Center, MN (b) 1986 9401 73rd Avenue North Brooklyn Park, MN 1995 1905 West Country Road C Roseville, MN 1993 2720 Arthur Street Roseville, MN 1995 10205 51st Avenue North Plymouth, MN 1990 4100 Peavey Road Chaska, MN 1988 11300 Hampshire Avenue South Bloomington, MN 1983 375 Rivertown Drive Woodbury, MN 1996 5205 Highway 169 Plymouth, MN 1960 6451-6595 Citywest Parkway Eden Prairie, MN 1984 7100-7198 Shady Oak Road (k) Eden Prairie, MN 1982 1565 First Avenue NW New Brighton, MN 1978 7125 Northland Terrace Brooklyn Park, MN 1996 6900 Shady Oak Road Eden Prairie, MN 1980 7550-7588 Washington Square Eden Prairie, MN 1975 7500-7546 Washington Square Eden Prairie, MN 1975 5240-5300 Valley Industrial Blvd Shakopee, MN 1973 6477-6525 City West Parkway Eden Prairie, MN 1984 NASHVILLE 1621 Heil Quaker Boulevard Nashville, TN (c) 1975 417 Harding Industrial Drive Nashville, TN (a) 1972 520 Harding Drive (j) Nashville, TN (a) 1975 3099 Barry Drive Portland, TN 1995 3150 Barry Drive Portland, TN 1993 1650 Elm Hill Pike Nashville, TN 1984 1821 Air Lane Drive Nashville, TN 1984 1102 Appleton Drive Nashville, TN 1984 1920 Air Lane Drive Nashville, TN 1985 1931 Air Lane Drive Nashville, TN 1984 470 Metroplex Drive (j) Nashville, TN 1986 1150 Antiock Pike Nashville, TN 1987 5599 Highway 31 West Portland, TN 1995 NEW JERSEY 116 Lehigh Drive Fairfield, NJ 1986 60 Ethel Road West Piscataway, NJ 1982 70 Ethel Road West Piscataway, NJ 1979 105 Neptune Boulevard Neptune, NJ 1989 140 Hanover Avenue Hanover, NJ 1964/1988 601-629 Montrose Avenue South Plainfield, NJ 1974 3 Marlen Hamilton, NJ 1981 5 Marlen Hamilton, NJ 1981 7 Marlen Hamilton, NJ 1982 8 Marlen Hamilton, NJ 1982 15 Marlen Hamilton, NJ 1982 17 Marlen Hamilton, NJ 1981 1 South Gold Drive Hamilton, NJ 1973 2 South Gold Drive Hamilton, NJ 1974 5 South Gold Drive Hamilton, NJ 1974 6 South Gold Drive Hamilton, NJ 1975 7 South Gold Drive Hamilton, NJ 1976 8 South Gold Drive Hamilton, NJ 1977 9 South Gold Drive Hamilton, NJ 1980 11 South Gold Drive Hamilton, NJ 1979 12 South Gold Drive Hamilton, NJ 1980 9 Princess Road Lawrenceville, NJ 1985 11 Princess Road Lawrenceville, NJ 1985 15 Princess Road Lawrenceville, NJ 1986 17 Princess Road Lawrenceville, NJ 1986 220 Hanover Avenue Hanover, NJ 1987 244 Shefield Street Mountainside, NJ 1965/1986 30 Troy Road Hanover, NJ 1972 15 Leslie Court Hanover, NJ 1971 20 Leslie Court Hanover, NJ 1974 25 Leslie Court Hanover, NJ 1975 130 Algonquin Parkway Hanover, NJ 1973 150 Algonquin Parkway Hanover, NJ 1973 55 Locust Avenue Roseland, NJ 1980 31 West Forest Street (j) Englewood, NJ 1978 25 World's Fair Drive Franklin, NJ 1986 14 World's Fair Drive Franklin, NJ 1980 16 World's Fair Drive Franklin, NJ 1981 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- -------- --- -------- <S> <C> <C> <C> <C> MINNEAPOLIS/ST. PAUL (CON'T) 6701 Parkway Circle Light Industrial 4.44 75,000 100% 6601 Shingle Creek Light Industrial 4.59 68,899 99% 6707 Shingle Creek Parkway Light Industrial 4.22 75,939 100% 9401 73rd Avenue North Light Industrial 4.46 59,782 100% 1905 West Country Road C Light Industrial 4.60 47,735 100% 2720 Arthur Street Light Industrial 6.06 74,337 100% 10205 51st Avenue North Light Industrial 2.00 30,476 100% 4100 Peavey Road Light Industrial 8.27 78,029 64% 11300 Hampshire Avenue South Bulk Warehouse 9.94 125,950 54% 375 Rivertown Drive Bulk Warehouse 11.33 172,800 100% 5205 Highway 169 Light Industrial 7.92 97,770 95% 6451-6595 Citywest Parkway Light Industrial 6.98 83,189 99% 7100-7198 Shady Oak Road (k) Bulk Warehouse 14.44 187,777 100% 1565 First Avenue NW Light Industrial 8.87 112,082 100% 7125 Northland Terrace Light Industrial 5.89 79,675 82% 6900 Shady Oak Road Light Industrial 4.60 49,190 100% 7550-7588 Washington Square Light Industrial 2.70 29,739 100% 7500-7546 Washington Square Light Industrial 5.40 44,600 100% 5240-5300 Valley Industrial Blvd Light Industrial 9.06 80,000 88% 6477-6525 City West Parkway Light Industrial 7.00 89,456 64% ---------- ------ SUBTOTAL OR AVERAGE 5,106,980 96% ---------- ------ NASHVILLE 1621 Heil Quaker Boulevard Bulk Warehouse 11.29 160,661 100% 417 Harding Industrial Drive Bulk Warehouse 13.70 207,440 100% 520 Harding Drive (j) Bulk Warehouse 16.64 392,128 100% 3099 Barry Drive Bulk Warehouse 6.20 109,058 100% 3150 Barry Drive Bulk Warehouse 26.32 268,253 100% 1650 Elm Hill Pike Light Industrial 3.46 41,228 100% 1821 Air Lane Drive Light Industrial 2.54 25,300 100% 1102 Appleton Drive Light Industrial 1.73 28,022 82% 1920 Air Lane Drive Light Industrial 3.19 49,912 81% 1931 Air Lane Drive Light Industrial 10.11 87,549 95% 470 Metroplex Drive (j) Light Industrial 8.11 102,052 99% 1150 Antiock Pike Light Industrial 9.83 146,055 100% 5599 Highway 31 West Bulk Warehouse 20.00 161,500 100% ---------- ------ SUBTOTAL OR AVERAGE 1,779,158 99% ---------- ------ NEW JERSEY 116 Lehigh Drive Bulk Warehouse 5.00 106,184 100% 60 Ethel Road West Light Industrial 3.93 42,802 100% 70 Ethel Road West Light Industrial 3.78 61,500 100% 105 Neptune Boulevard Light Industrial 10.00 20,440 80% 140 Hanover Avenue Light Industrial 2.95 25,261 72% 601-629 Montrose Avenue Light Industrial 5.83 75,000 93% 3 Marlen Light Industrial 1.11 13,174 100% 5 Marlen Light Industrial 1.56 21,000 100% 7 Marlen Light Industrial 2.05 28,400 100% 8 Marlen Light Industrial 4.36 60,001 100% 15 Marlen Light Industrial 1.19 13,562 100% 17 Marlen Light Industrial 1.32 20,030 100% 1 South Gold Drive Light Industrial 1.50 20,009 95% 2 South Gold Drive Light Industrial 1.15 33,928 62% 5 South Gold Drive Light Industrial 1.97 24,000 100% 6 South Gold Drive Light Industrial 1.00 13,580 100% 7 South Gold Drive Light Industrial 1.00 10,218 100% 8 South Gold Drive Light Industrial 1.14 16,907 100% 9 South Gold Drive Light Industrial 1.00 13,566 100% 11 South Gold Drive Light Industrial 1.97 33,114 100% 12 South Gold Drive Light Industrial 1.29 20,240 100% 9 Princess Road Light Industrial 2.36 24,375 100% 11 Princess Road Light Industrial 5.33 55,000 82% 15 Princess Road Light Industrial 2.00 20,625 100% 17 Princess Road Light Industrial 1.82 18,750 100% 220 Hanover Avenue Bulk Warehouse 29.27 158,242 100% 244 Shefield Street Light Industrial 2.20 23,000 100% 30 Troy Road Light Industrial 1.31 17,345 100% 15 Leslie Court Light Industrial 3.08 18,000 100% 20 Leslie Court Light Industrial 1.38 17,997 100% 25 Leslie Court Light Industrial 1.30 70,755 100% 130 Algonquin Parkway Light Industrial 5.50 29,008 100% 150 Algonquin Parkway Light Industrial 2.47 17,531 100% 55 Locust Avenue Bulk Warehouse 13.63 79,750 100% 31 West Forest Street (j) Light Industrial 6.00 110,000 100% 25 World's Fair Drive Light Industrial 1.81 20,000 100% 14 World's Fair Drive Light Industrial 4.53 60,000 100% 16 World's Fair Drive Light Industrial 3.62 43,400 100% </TABLE> 18
20 <TABLE> <CAPTION> LOCATION YEAR BUILT- BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED ---------------- ---------- ------------ --------- <S> <C> <C> <C> NEW JERSEY (CON'T ) 18 World's Fair Drive Franklin, NJ 1982 23 World's Fair Drive Franklin, NJ 1982 12 World's Fair Drive Franklin, NJ 1981 1 World's Fair Drive Franklin, NJ 1983 2 World's Faire Drive Franklin, NJ 1982 49 Napoleon Court Franklin, NJ 1982 50 Napoleon Court Franklin, NJ 1982 22 World's Fair Drive Franklin, NJ 1983 26 World's Fair Drive Franklin, NJ 1984 24 World's Fair Drive Franklin, NJ 1984 12 Wright Way Oakland, NJ 1981 NEW ORLEANS 520-524 Elmwood Park Blvd (j) Jefferson, LA 1986 125 Mallard St St. Rose, LA (h) 1984 107 Mallard St. Rose, LA (h) 1985 125 James Drive West St. Rose, LA (h) 1990 161 James Drive West St. Rose, LA 1986 150 James Drive East St. Rose, LA 1986 115 James Drive West St. Rose, LA (h) 1986 100 James Drive St. Rose, LA (h) 1980 143 Mallard St St. Rose, LA (h) 1982 160 James Drive East St. Rose, LA (h) 1981 190 James Drive East St. Rose, LA (h) 1987 120 Mallard St St. Rose, LA (h) 1981 110 James Drive West St. Rose, LA (h) 1983 150 Canvasback Drive St. Rose, LA 1986 PHOENIX 7340 South Kyrene Road Tempe, AZ 1996 7350 S Kyrene Road Tempe, AZ 1996 7360 South Kyrene Road Tempe, AZ 1996 7343 South Hardy Drive Tempe, AZ 1997 7333 South Hardy Drive Tempe, AZ 1997 SALT LAKE CITY 2255 South 300 West (m) Salt Lake City, UT 1980 512 Lawndale Drive (n) Salt Lake City, UT 1981 ST LOUIS 8921-8957 Frost Avenue Hazelwood, MO (c) 1971 9043-9083 Frost Avenue Hazelwood, MO (c) 1970 2121 Chapin Industrial Drive Vinita Park, MO 1969/87 1200 Andes Boulevard Olivette, MO 1967 1248 Andes Boulevard Olivette, MO 1967 1208-1226 Ambassador Blvd Olivette, MO 1966 1250 Ambassador Boulevard Olivette, MO 1967 1503-1525 Fairview Industrial Olivette, MO 1967 2462-2470 Schuetz Road St. Louis, MO 1965 10431-10449 Midwest Industrial Olivette, MO 1967 10751 Midwest Industrial Blvd Olivette, MO 1965 11652-11666 Fairgrove Industrial St. Louis, MO 1966 11674-11688 Fairgrove Industrial St. Louis, MO 1967 2337 Centerline Drive Maryland Heights, MO 1967 6951 North Hanley Road (j) Hazelwood, MO 1965 4560 Anglum Road Hazelwood, MO 1970 2760 South 1st Street St. Louis, MO 1997 TAMPA 6614 Adamo Drive Tampa, FL 1967 202 Kelsey Tampa, FL 1989 6202 Benjamin Road Tampa, FL 1981 6204 Benjamin Road Tampa, FL 1982 6206 Benjamin Road Tampa, FL 1983 6302 Benjamin Road Tampa, FL 1983 6304 Benjamin Road Tampa, FL 1984 6306 Benjamin Road Tampa, FL 1984 6308 Benjamin Road Tampa, FL 1984 5313 Johns Road Tampa, FL 1991 5602 Thompson Center Court Tampa, FL 1972 5411 Johns Road Tampa, FL 1997 5525 Johns Road Tampa, FL 1993 5607 Johns Road Tampa, FL 1991 </TABLE> <TABLE> <CAPTION> LAND AREA OCCUPANCY AT BUILDING ADDRESS BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ------------- ------- --- -------- <S> <C> <C> <C> <C> NEW JERSEY (CON'T ) 18 World's Fair Drive Light Industrial 1.12 12,809 100% 23 World's Fair Drive Light Industrial 1.20 15,540 100% 12 World's Fair Drive Light Industrial 3.85 65,000 100% 1 World's Fair Drive Light Industrial 3.85 53,372 100% 2 World's Faire Drive Light Industrial 2.06 59,310 75% 49 Napoleon Court Light Industrial 2.06 32,487 0% 50 Napoleon Court Light Industrial 1.52 20,158 100% 22 World's Fair Drive Light Industrial 3.52 50,000 90% 26 World's Fair Drive Light Industrial 3.41 47,000 100% 24 World's Fair Drive Light Industrial 3.45 47,000 100% 12 Wright Way Light Industrial 6.52 52,402 100% ---------- ----- SUBTOTAL OR AVERAGE 1,911,772 95% ---------- ----- NEW ORLEANS 520-524 Elmwood Park Blvd (j) Light Industrial 5.32 102,209 81% 125 Mallard St Light Industrial 1.38 23,436 33% 107 Mallard Light Industrial 1.48 23,436 94% 125 James Drive West Light Industrial 3.30 38,692 100% 161 James Drive West Light Industrial 2.80 47,474 93% 150 James Drive East Light Industrial 3.60 49,275 100% 115 James Drive West Light Industrial 2.07 21,408 100% 100 James Drive Light Industrial 6.66 48,000 100% 143 Mallard St Light Industrial 1.48 23,436 100% 160 James Drive East Light Industrial 3.66 25,772 23% 190 James Drive East Light Industrial 4.47 36,357 100% 120 Mallard St Light Industrial 3.41 53,440 100% 110 James Drive West Light Industrial 1.57 24,018 96% 150 Canvasback Drive Light Industrial 2.80 40,500 100% --------- ------ SUBTOTAL OR AVERAGE 557,453 89% --------- ------ PHOENIX 7340 South Kyrene Road Light Industrial 7.20 63,720 100% 7350 S Kyrene Road Light Industrial 5.36 99,384 100% 7360 South Kyrene Road Light Industrial 5.42 99,384 100% 7343 South Hardy Drive Light Industrial 7.84 174,854 100% 7333 South Hardy Drive Light Industrial 7.90 98,052 100% --------- ------ SUBTOTAL OR AVERAGE 535,394 100% --------- ------ SALT LAKE CITY 2255 South 300 West (m) Light Industrial 4.56 102,942 100% 512 Lawndale Drive (n) Light Industrial 35.00 395,291 85% --------- ------ SUBTOTAL OR AVERAGE 498,233 88% --------- ------ ST LOUIS 8921-8957 Frost Avenue Bulk Warehouse 2.00 100,000 100% 9043-9083 Frost Avenue Bulk Warehouse 2.69 145,000 100% 2121 Chapin Industrial Drive Light Industrial 23.40 280,905 100% 1200 Andes Boulevard Bulk Warehouse 2.77 66,600 100% 1248 Andes Boulevard Light Industrial 3.15 60,708 100% 1208-1226 Ambassador Blvd Bulk Warehouse 2.11 49,600 100% 1250 Ambassador Boulevard Bulk Warehouse 1.52 31,500 100% 1503-1525 Fairview Industrial Bulk Warehouse 2.18 46,431 89% 2462-2470 Schuetz Road Bulk Warehouse 2.28 43,868 100% 10431-10449 Midwest Industrial Bulk Warehouse 2.40 55,125 99% 10751 Midwest Industrial Blvd Light Industrial 1.70 44,100 100% 11652-11666 Fairgrove Industrial Bulk Warehouse 1.92 31,484 100% 11674-11688 Fairgrove Industrial Bulk Warehouse 1.53 31,500 100% 2337 Centerline Drive Bulk Warehouse 3.46 75,600 100% 6951 North Hanley Road (j) Bulk Warehouse 9.50 122,813 33% 4560 Anglum Road Light Industrial 2.60 35,114 98% 2760 South 1st Street Bulk Warehouse 11.00 178,800 100% ---------- ----- SUBTOTAL OR AVERAGE 1,399,148 94% ---------- ------ TAMPA 6614 Adamo Drive Bulk Warehouse 2.78 41,377 100% 202 Kelsey Bulk Warehouse 6.30 112,000 100% 6202 Benjamin Road Light Industrial 2.04 29,845 100% 6204 Benjamin Road Light Industrial 4.16 60,975 72% 6206 Benjamin Road Light Industrial 3.94 57,708 100% 6302 Benjamin Road Light Industrial 2.03 29,747 100% 6304 Benjamin Road Light Industrial 2.04 29,845 100% 6306 Benjamin Road Light Industrial 2.58 37,861 99% 6308 Benjamin Road Light Industrial 3.22 47,256 80% 5313 Johns Road Light Industrial 1.36 25,690 100% 5602 Thompson Center Court Light Industrial 1.39 14,914 100% 5411 Johns Road Light Industrial 1.98 30,204 100% 5525 Johns Road Light Industrial 1.46 24,139 100% 5607 Johns Road Light Industrial 1.34 13,500 50% </TABLE> 19
21 <TABLE> <CAPTION> LOCATION YEAR BUILT- LAND AREA OCCUPANCY AT BUILDING ADDRESS CITY/STATE ENCUMBRANCES RENOVATED BUILDING TYPE (ACRES) GLA 12/31/97 ---------------- ---------- ------------ ---------- ------------- --------- --- ------------ TAMPA (CON'T.) - -------------- <S> <C> <C> <C> <C> <C> <C> 5709 Johns Road Tampa, FL 1990 Light Industrial 1.80 25,480 100% 5711 Johns Road Tampa, FL 1990 Light Industrial 1.80 25,455 100% 4410 East Adamo Drive Tampa, FL 1990 Light Industrial 5.60 101,744 100% 4420 East Adamo Drive Tampa, FL 1990 Light Industrial 1.40 26,650 100% 4430 East Adamo Drive Tampa, FL 1987 Light Industrial 3.75 64,551 79% 4440 East Adamo Drive Tampa, FL 1988 Light Industrial 3.75 64,800 100% 4450 East Adamo Drive Tampa, FL 1969 Light Industrial 4.00 46,462 48% 5453 West Waters Avenue Tampa, FL 1987 Light Industrial 0.66 7,200 63% 5455 West Waters Avenue Tampa, FL 1987 Light Industrial 2.97 32,424 100% 5553 West Waters Avenue Tampa, FL 1987 Light Industrial 2.97 32,424 100% 5501 West Waters Avenue Tampa, FL 1990 Light Industrial 1.53 15,870 100% 5503 West Waters Avenue Tampa, FL 1990 Light Industrial 0.68 7,060 100% 5555 West Waters Avenue Tampa, FL 1990 Light Industrial 2.31 23,947 100% 5557 West Waters Avenue Tampa, FL 1990 Light Industrial 0.57 5,860 100% 5903 Johns Road Tampa, FL 1987 Light Industrial 1.20 11,600 100% 4107 North Himes Avenue Tampa, FL 1990 Light Industrial 1.86 26,630 92% ---------- ----- SUBTOTAL OR AVERAGE 1,073,218 93% ---------- ----- OTHER - ----- 2800 Airport Road (l) Denton, TX 1965 Light Industrial 29.91 222,403 100% 3501 Maple Street Abilene, TX 1980 Bulk Warehouse 34.42 123,700 100% 4200 West Harry Street (k) Wichita, KS (a) 1972 Bulk Warehouse 21.45 177,655 100% Industrial Park No. 2 West Lebanon, NH 1968 Light Industrial 10.27 156,200 100% 931 Discovery Road Green Bay, WI 1997 Light Industrial 4.22 25,254 100% 11200 Industriplex Boulevard Baton Rouge, LA 1986 Light Industrial 3.00 42,355 100% 11441 Industriplex Boulevard Baton Rouge, LA 1987 Light Industrial 2.40 35,596 77% 11301 Industriplex Boulevard Baton Rouge, LA 1985 Light Industrial 2.50 38,396 100% 6565 Exchequer Drive Baton Rouge, LA 1986 Bulk Warehouse 5.30 108,800 100% 2675 Valley View Drive Shreveport, LA 1997 Bulk Warehouse 12.00 250,000 100% 300 10th Street NW Clarion, IA 1997 Bulk Warehouse 8.63 126,900 100% 9580 Interport Drive Shreveport, LA 1989 Bulk Warehouse 3.00 50,000 100% ---------- ----- SUBTOTAL OR AVERAGE 1,357,259 99% ---------- ----- TOTAL 56,567,706 96% ========== ===== </TABLE> (a) These properties collateralize the 1994 Defeased Mortgage Loan (hereinafter defined). On January 2, 1998, the 1994 Defeased Mortgage Loan was paid off and retired and the remaining 15 properties were released. (b) These properties are owned by the Securities Partnership. The Securities Partnership guarantees the payment on the Series A Cumulative Preferred Stock of dividends and amounts upon redemption, liquidation, dissolution or winding-up. (c) These properties collateralize the 1995 Mortgage Loan (hereinafter defined). (d) These properties collateralize the CIGNA Loan (hereinafter defined). (e) These properties collateralize the Assumed Loans (hereinafter defined). (f) This property collateralizes the LB Mortgage Loan II (hereinafter defined). (g) This property collateralizes the Acquisition Mortgage Loan I (hereinafter defined). (h) These properties collateralize the Acquisition Mortgage Loan II (hereinafter defined). (i) These properties collateralize the Acquisition Mortgage Loan III (hereinafter defined). (j) Comprised of two properties. (k) Comprised of three properties. (l) Comprised of five properties. (m) Comprised of seven properties. (n) Comprised of 29 properties. 20
22 TENANT AND LEASE INFORMATION The Company has a diverse base of more than 2,500 tenants engaged in a wide variety of businesses including manufacturing, retail, wholesale trade, distribution and professional services. Most leases have an initial term of between three and five years and provide for periodic rental increases that are either fixed or based on changes in the Consumer Price Index. Industrial tenants typically have net or semi-net leases and pay as additional rent their percentage of the property's operating costs, including the costs of common area maintenance, property taxes and insurance. As of December 31, 1997, approximately 96% of the GLA of the properties was leased, and no single tenant or group of related tenants accounted for more than 1.1% of the Company's rent revenues, nor did any single tenant or group of related tenants occupy more than 1.8%, of the Company's total GLA as of December 31, 1997. The following table shows scheduled lease expirations for all leases for the Company's properties as of December 31, 1997. <TABLE> <CAPTION> ANNUAL BASE RENT NUMBER OF PERCENTAGE OF UNDER EXPIRING PERCENTAGE OF TOTAL YEAR OF LEASES GLA GLA LEASES ANNUAL BASE RENT EXPIRATION (1) EXPIRING EXPIRING (2) EXPIRING (IN THOUSANDS) EXPIRING (2) -------------- ------------ --------------- ---------------- -------------------- --------------------- <S> <C> <C> <C> <C> <C> 1998 771 10,468,035 19.4% $ 46,468 19.8% 1999 583 10,304,946 19.1% 44,971 19.3% 2000 533 9,110,048 16.9% 40,048 17.2% 2001 295 7,325,683 13.6% 30,479 13.1% 2002 253 5,745,269 10.6% 25,181 10.8% 2003 78 2,836,997 5.2% 12,365 5.3% 2004 41 2,401,969 4.4% 9,156 3.9% 2005 26 1,539,413 2.8% 7,417 3.2% 2006 19 707,094 1.3% 3,585 1.5% 2007 19 1,623,218 3.0% 5,288 2.3% Thereafter 17 2,023,561 3.7% 8,372 3.6% ------------ --------------- ---------------- -------------------- --------------------- Total 2,635 54,086,233 100.0% $ 233,332 100.0% ============ =============== ================ ==================== ===================== </TABLE> - --------------- (1) Lease expirations as of December 31, 1997 assume tenants do not exercise existing renewal, termination, or purchase options. (2) Does not include existing vacancies of 2,481,473 aggregate square feet. MORTGAGE LOANS/PREFERRED STOCK GUARANTEE Contemporaneously with the consummation of the Initial Offering, the Company, through the Financing Partnership, entered into a $300.0 million mortgage loan. On April 4, 1997, the Company purchased U.S. Government securities as substitute collateral to execute a legal defeasance of the $300.0 million mortgage loan (the "1994 Defeased Mortgage Loan"). Upon execution of the legal defeasance, 180 of the 195 properties collateralizing the 1994 Defeased Mortgage Loan were released, leaving 15 properties and the U.S. Government securities as collateral. On January 2, 1998, the Company used the gross proceeds from the maturity of the U.S. Government securities to pay off and retire the 1994 Defeased Mortgage Loan. Due to the retirement of the 1994 Defeased Mortgage Loan, the remaining collateral of 15 properties was released on January 2, 1998. In 1995, the Company issued 1,650,000 shares of 9.5%, $.01 par value, Series A Cumulative Preferred Stock (the "Series A Preferred Stock") at an initial offering price of $25 per share. The Series A Preferred Stock is not redeemable prior to November 17, 2000. On or after November 17, 2000, the Series A Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at $25 per share, or $41.3 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series A Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. The payment of dividends on, and payments on liquidation or redemption of, the Series A Preferred Stock is guaranteed by the Securities Partnership ("the Guarantor") which holds 19 properties pursuant to a Guarantee and Payment Agreement (the "Guarantee Agreement"). The Series A Preferred Stock is the only class of securities of the Company which has the benefit of such guarantee. To the extent the Company fails to make any payment of dividends or pay any portion of the liquidation preference on or the redemption price of any shares of Series A 21
23 Preferred Stock, the Guarantor will be obligated to pay an amount to each holder of Series A Preferred Stock equal to any such shortfall. On December 29, 1995, the Company, through the Mortgage Partnership, entered into a $40.2 million mortgage loan (the "1995 Mortgage Loan"). In the first quarter of 1996, the Company, through the Mortgage Partnership, made a one-time paydown of $.2 million on the 1995 Mortgage Loan which decreased the outstanding balance to $40.0 million. The 1995 Mortgage Loan matures on January 11, 2026. The 1995 Mortgage Loan is collateralized by first mortgage liens on 23 properties owned by the Mortgage Partnership. The 1995 Mortgage Loan may be prepaid only after January 11, 2003. On March 20, 1996, the Company, through the Operating Partnership and the Indianapolis Partnership, entered into a $36.8 million mortgage loan (the "CIGNA Loan") that is collateralized by first mortgage liens on seven properties in Indianapolis, Indiana and three properties in Cincinnati, Ohio. The CIGNA Loan matures on April 1, 2003. The CIGNA Loan may be prepaid only after April 30, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. On March 20, 1996, the Company, through the Operating Partnership, assumed a $6.4 million mortgage loan and a $3.0 million mortgage loan (together, the "Assumed Loans") that are collateralized by 13 properties in Indianapolis, Indiana and one property in Indianapolis, Indiana, respectively. The Assumed Loans mature on January 1, 2013. The Assumed Loans may be prepaid only after December 22, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. On January 31, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $.7 million (the "LB Mortgage Loan II"), which is collateralized by a property located in Long Island, New York. The LB Mortgage Loan II matures 180 days after the completion of a contingent event relating to the environmental status of the property collaterizing the loan. On October 23, 1997, the Company, through the Operating Partnership, assumed a $4.2 million mortgage loan (the "Acquisition Mortgage Loan I") which is collateralized by a property in Bensenville, Illinois. The Acquisition Mortgage Loan I matures on August 1, 2008. The Acquisition Mortgage Loan I may be prepaid after July 15, 1998 in exchange for a prepayment fee. On December 9, 1997, the Company, through the Operating Partnership, assumed a $8.0 million mortgage loan (the "Acquisition Mortgage Loan II") that is collateralized by ten properties in St. Charles, Louisiana. The Acquisition Mortgage Loan II matures on April 1, 2006. The Acquisition Mortgage Loan II may be prepaid only after April 9, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. On December 23, 1997, the Company, through the Operating Partnership, assumed a $3.6 million mortgage loan (the "Acquisition Mortgage Loan III") that is collateralized by two properties in Houston, Texas. The Acquisition Mortgage Loan III matures on June 1, 2003. The Acquisition Mortgage Loan III may be prepaid only after June 30, 1998 in exchange for the greater of a 2% prepayment fee or a yield maintenance premium. PROPERTY MANAGEMENT At December 31, 1997, Company employees managed 755 of the Company's 769 properties and 14 properties were managed at the local level by parties other than the Company, with oversight by the Company's Senior Regional Directors. In each of these cases, the Company retains control over all leasing, capital investment decisions, rent collection, accounting and most operational decisions, allowing its local third-party managers limited operational authority. 22
24 ITEM 3 LEGAL PROCEEDINGS The Company is involved in legal proceedings arising in the ordinary course of business All such proceedings, taken together, are not expected to have a material impact on the Company. ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. PART II ITEM 5 MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS MARKET INFORMATION The following table sets forth for the periods indicated the high and low closing prices per share and distributions declared per share for the Company's common stock which trades on the New York Stock Exchange under the trading symbol "FR". <TABLE> <CAPTION> DISTRIBUTION QUARTER ENDED HIGH LOW DECLARED ------------- ---- --- -------- <S> <C> <C> <C> December 31, 1997 $ 37 3/8 $ 32 1/8 $.5300 September 30, 1997 34 28 1/2 .5050 June 30, 1997 31 1/8 29 1/4 .5050 March 31, 1997 32 3/8 29 .5050 December 31, 1996 30 7/8 24 7/8 .5050 September 30, 1996 26 22 1/2 .4875 June 30, 1996 24 5/8 21 3/4 .4875 March 31, 1996 25 21 3/8 .4875 </TABLE> The Company had 307 common stockholders of record as of March 16, 1998. The Company has determined that, for federal income tax purposes, approximately 62.3% of the total $2.045 in distributions per share paid with respect to 1997 represents ordinary dividend income to its stockholders, approximately 2.1% represents 28% long-term capital gain and the remaining 35.6% represents a return of capital. In order to maintain its status as a REIT, the Company is required to meet certain tests, including distributing at least 95% of its REIT taxable income, or approximately $1.54 per share for 1997. ITEM 6 SELECTED FINANCIAL DATA The following sets forth selected financial and operating data for the Company on a pro forma and historical consolidated basis and the Contributing Businesses on a historical combined basis. The following data should be read in conjunction with the financial statements and notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-K. The pro forma statement of operations for the year ended December 31, 1994 includes the historical results of the Company's operations from July 1, 1994 to December 31, 1994 and the operations of the Contributing Businesses for the period of January 1, 1994 to June 30, 1994 and were prepared as if the Initial Offering and the related transactions had occurred on January 1, 1994. The historical statements of operations for the years ended December 31, 1997, 1996 and 1995 and the six months ended December 31, 1994 include the results of operations of the Company as derived from the Company's audited financial statements. The historical balance sheet data and other data as of December 31, 1997, 1996, 1995 and 1994 include the balances of the Company. The historical balance sheet data as of June 30, 1994 and December 31, 1993 and the combined statements of operations for the six months ended June 30, 1994 and the year ended December 31, 1993 have been derived from the historical financial statements of the Contributing Businesses. In the opinion of management, financial data as of and for the periods ended June 30, 1994 and December 31, 1993 include all adjustments necessary to present fairly the information set forth therein. 23
25 <TABLE> <CAPTION> THE COMPANY CONTRIBUTING BUSINESSES ================================================================== ======================= HISTORICAL ------------------------ HISTORICAL HISTORICAL HISTORICAL PRO FORMA HISTORICAL SIX YEAR YEAR YEAR YEAR SIX MONTHS MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED ENDED ---------- ---------- ---------- --------- ---------- ------ ----- 12/31/97 12/31/96 12/31/95 12/31/94 12/31/94 6/30/94 12/31/93 (IN THOUSANDS, EXCEPT PER SHARE, RATIO AND PROPERTY DATA) <S> <C> <C> <C> <C> <C> <C> <C> STATEMENTS OF OPERATIONS DATA: Total Revenues ................ $ 223,203 $ 140,055 $ 106,486 $ 87,923 $ 46,570 $ 22,816 $ 33,237 Property Expenses ............. 59,762 39,224 28,302 22,714 11,853 6,036 8,832 General & Administrative Expense ..................... 6,248 4,018 3,135 2,310 1,097 795 1,416 Interest Expense .............. 49,859 28,954 28,591 19,528 10,588 11,773 18,187 Amortization of Interest Rate Protection Agreements and Deferred Financing Cost ..... 2,812 3,286 4,438 6,113 2,904 858 997 Depreciation & Other Amortization ................ 39,573 28,049 22,264 19,189 9,802 4,744 7,105 Gain (Loss) from Disposition of Interest Rate Protection Agreements (a) ... 1,430 -- (6,410) -- -- -- -- Management and Construction Income (Loss), Net .......... -- -- -- -- -- (81) (99) Gain on Sales of Properties ... 5,003 4,344 -- -- -- -- -- Minority Interest ............. 5,312 2,931 997 1,405 778 -- -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Income (Loss) Before Extraordinary Items ......... 66,070 37,937 12,349 16,664 9,548 (1,471) (3,399) Extraordinary Loss (b) ........ 14,124 2,273 -- -- -- 1,449 -- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Net Income (Loss) ............. $ 51,946 $ 35,664 $ 12,349 $ 16,664 $ 9,548 $ (2,920) $ (3,399) ========== ========== Preferred Stock Dividends ..... (11,856) (3,919) (468) -- -- ---------- ---------- ---------- ---------- ---------- Net Income Available to Common Stockholders ................ $ 40,090 $ 31,745 $ 11,881 $ 16,664 $ 9,548 ========== ========== ========== ========== ========== Net Income Available to Common Stockholders Before Extraordinary Loss Per Share (Basic) ..................... $ 1.72 $ 1.37 $ .63 $ .92 $ .51 ========== ========== ========== ========== ========== Net Income Available to Common Stockholders Before Extraordinary Loss Per Share (Diluted) ................... $ 1.70 $ 1.37 $ .63 $ .92 $ .51 ========== ========== ========== ========== ========== Net Income Available to Common Stockholders Per Share (Basic) ..................... $ 1.27 $ 1.28 $ .63 $ .92 $ .51 ========== ========== ========== ========== ========== Net Income Available to Common Stockholders Per Share (Diluted) ..................... $ 1.26 $ 1.28 $ .63 $ .92 $ .51 ========== ========== ========== ========== ========== Distributions Per Share ....... $ 2.045 $ 1.9675 $ 1.905 $ .945 ========== ========== ========== ========== Weighted Average Number of Common Shares Outstanding (Basic) ....................... 31,508 24,756 18,889 18,182 18,881 ========== ========== ========== ========== ========== Weighted Average Number of Common Shares Outstanding- (Diluted) ................... 31,814 24,842 18,889 18,182 18,881 ========== ========== ========== ========== ========== BALANCE SHEET DATA (END OF PERIOD): Real Estate, Before Accumulated Depreciation................... $1,994,346 $1,050,779 $ 757,516 $ 669,608 597,504 $ 209,177 Real Estate, After Accumulated Depreciation ................ 1,873,316 959,322 688,767 620,294 556,902 171,162 Total Assets .................. 2,272,163 1,022,600 753,904 691,081 616,767 189,789 Mortgage Loans, Acquisition Facilities Payable, Senior Unsecured Debt, Construction Loans and Promissory Notes Payable ..................... 879,592 406,401 399,958 348,700 305,000 179,568 Mortgage Loans ................ -- -- -- -- -- 7,624 (affiliated) Defeased Mortgage Loan Payable 300,000 -- -- -- -- -- Total Liabilities ............. 1,266,079 447,178 426,972 374,849 323,703 227,553 Stockholders' Equity/ (Net Deficit) .................... 854,590 532,561 306,023 292,420 269,326 (37,764) OTHER DATA: Cash Flows From Operating Activities .................. $ 102,635 62,621 38,541 18,033 5,026 8,700 Cash Flows From Investing Activities .................. (805,505) (240,571) (84,159) (73,840) (374,757) (17,124) Cash Flows From Financing Activities .................. 708,446 176,677 45,420 57,475 374,152 9,093 Funds From Operations ("FFO") (c) ......................... 92,361 60,546 41,428 20,128 3,273 3,706 Ratio of Earnings to Fixed Charges and Preferred Stock Dividends (d) ............... 1.79 x 1.88 x 1.56 x 1.76 x -- (e) -- (e) Total Properties (f) .......... 769 379 271 246 226 124 Total GLA in sq. ft (f) ....... 56,567,706 32,700,069 22,562,755 19,169,321 17,393,813 6,376,349 Occupancy % f) ................ 96% 97% 97% 97% 97% 94% ==================================================================================================================== </TABLE> 24
26 (a) Gain (loss) from disposition of Interest Rate Protection Agreements. (b) Upon consummation of the Initial Offering in June 1994, certain Contributing Businesses' loans were repaid and the related unamortized deferred financing fees totaling $1.5 million were written off. In 1996, the Company terminated certain revolving credit facilities. The Company recorded an extraordinary loss of $2.3 million which is comprised of a prepayment fee, the write-off of unamortized deferred financing fees, legal costs and other expenses. In 1997, the Company terminated certain mortgage loans, an unsecured loan and a revolving credit facility and obtained a commitment to pay off and retire another mortgage loan. The Company recorded an extraordinary loss of $14.1 million which is comprised of prepayment fees, the write-off of unamortized deferred financing fees, legal costs and other expenses. (c) Management considers funds from operations to be one financial measure of the operating performance of an equity REIT that provides a relevant basis for comparison among REITs and it is presented to assist investors in analyzing the performance of the Company. In accordance with the National Association of Real Estate Investment Trusts' definition of funds from operations, the Company calculates funds from operations to be equal to net income, excluding gains (or losses) from debt restructuring and sales of property, plus depreciation and amortization, excluding amortization of deferred financing costs and interest rate protection agreements, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs, including the payment of dividends and distributions. Funds from operations should not be considered as a substitute for net income as a measure of results of operations or for cash flow from operating activities calculated in accordance with generally accepted accounting principles as a measure of liquidity. Funds from operations as calculated by the Company may not be comparable to similarly titled but differently calculated measures of other REITs. The following is a reconciliation of net income to funds from operations: <TABLE> <CAPTION> The Company Contributing Businesses --------------------------------------------------------- --------------------------- Six Months Six Months Year Ended Year Ended Year Ended Ended Ended Year Ended 12/31/97 12/31/96 12/31/95 12/31/94 6/30/94 12/31/93 ----------- ---------- ---------- ---------- ----------- ---------- <S> <C> <C> <C> <C> <C> <C> Net Income (Loss) Available to Common Stockholders............ $ 40,090 31,745 11,881 9,548 (2,920) (3,399) Adjustments: Depreciation and Other Amortization............ 39,268 27,941 22,140 9,802 4,744 7,105 Disposition of Interest Rate Protection Agreement............... (1,430) -- 6,410 -- -- -- Gain on Sales of Properties............ (5,003) (4,344) -- -- -- -- Extraordinary Items..... 14,124 2,273 -- -- 1,449 -- Minority Interest....... 5,312 2,931 997 778 -- -- --------- --------- --------- --------- --------- --------- Funds From Operations..... $ 92,361 $ 60,546 $ 41,428 $ 20,128 $ 3,273 $ 3,706 ========= ========= ========= ========= ========= ========= </TABLE> (d) For purposes of computing the ratios of earnings to fixed charges and preferred stock dividends, earnings have been calculated by adding fixed charges (excluding capitalized interest) to income (loss) before disposition of interest rate protection agreement, gain on sales of properties, minority interest and extraordinary items. Fixed charges consist of interest costs, whether expensed or capitalized, and amortization of interest rate protection agreement(s) and deferred financing costs. (e) Earnings were inadequate to cover fixed charges by approximately $1.4 million and $3.4 million for the six months ended June 30, 1994 and the year ended December 31, 1993 respectively, which periods were prior to the Company's initial public offering. (f) As of end of period and excludes properties under development. 25
27 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with "Selected Financial and Operating Data" and the historical Consolidated and Combined Financial Statements and Notes thereto appearing elsewhere in this Form 10-K. RESULTS OF OPERATIONS COMPARISON OF YEAR ENDED DECEMBER 31, 1997 TO YEAR ENDED DECEMBER 31, 1996 At December 31, 1997, the Company owned 769 in-service properties containing approximately 56.6 million square feet of GLA, compared to 379 in-service properties with approximately 32.7 million square feet of GLA at December 31, 1996. During 1997, the Company acquired 389 properties containing approximately 22.9 million square feet of GLA, completed development of ten properties and expansions of two properties totaling 1.7 million square feet of GLA and sold ten in-service properties totaling .8 million square feet of GLA, one property held for redevelopment and several land parcels. Rental income and tenant recoveries and other income increased in 1997 over 1996 by $70.4 million or 50.2% due primarily to the properties acquired after December 31, 1995. Revenues from properties owned prior to January 1, 1996 increased in 1997 over 1996 by $2.1 million or 2.0% due primarily to increased rental rates upon renewal or replacement of tenant leases. Interest income-defeasance in 1997 represents interest income earned on U.S. Government securities and cash proceeds from such securities upon maturity that were pledged as collateral to legally defease the 1994 Defeased Mortgage Loan. Property expenses, which include real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses, increased in 1997 over 1996 by $20.5 million or 52.4% due primarily to properties acquired after December 31, 1995. For properties owned prior to January 1, 1996, property expenses remained relatively unchanged. General and administrative expense increased in 1997 over 1996 by $2.2 million due primarily to the additional expenses associated with managing the Company's growing operations including additional professional fees relating to additional properties owned and personnel to manage and expand the Company's business. Interest expense increased by $20.9 million for the year ended December 31, 1997 compared to the year ended December 31, 1996 due primarily to a higher average debt balance to fund the purchase of U.S. Government securities to legally defease the 1994 Defeased Mortgage Loan and to fund the acquisition and development of additional properties. Depreciation and other amortization increased in 1997 over 1996 by $11.5 million due primarily to the additional depreciation and amortization related to the properties acquired and placed in service after December 31, 1995. The $1.4 million gain on the disposition of interest rate protection agreements represents the sale of the Company's interest rate protection agreements in April 1997. The Company entered into a new interest rate protection agreement at a cost of approximately $.2 million with a notional value of $300 million which expired at the end of 1997. The $5.0 million gain on sales of properties resulted from the sale of ten in-service properties, one property under redevelopment and several parcels of land. Gross proceeds for these property sales totaled approximately $33.7 million. The $14.1 million extraordinary loss in 1997 represents the write-off of unamortized deferred financing costs, prepayment fees, legal fees and other costs incurred to terminate various mortgage loans, an unsecured loan and a revolving line of credit and the commitment to retire the 1994 Defeased Mortgage Loan. COMPARISON OF YEAR ENDED DECEMBER 31, 1996 TO YEAR ENDED DECEMBER 31, 1995 At December 31, 1996, the Company owned 379 in-service properties containing approximately 32.7 million square feet of GLA, compared to 271 in-service properties with approximately 22.6 million square feet of GLA at December 31, 1995. During 1996, the Company acquired 112 properties containing approximately 10.4 million square 26
28 feet of GLA, completed development of two properties totaling .2 million square feet of GLA and sold six properties totaling .4 million square feet of GLA. Rental income and tenant recoveries and other income increased in 1996 over 1995 by $33.6 million or 31.5% due primarily to the properties acquired after December 31, 1994. Revenues from properties owned prior to January 1, 1995 increased in 1996 over 1995 by $3.2 million or 3.3% due primarily to increased rental rates upon renewal or replacement of tenant leases and additional amounts charged to tenants for additional property expenses incurred in 1996. Property expenses, which include real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses, increased in 1996 over 1995 by $10.9 million or 38.6% due primarily to properties acquired after December 31, 1994. For properties owned prior to January 1, 1995, property expenses increased in 1996 over 1995 by $1.2 million or 4.8% due to additional snow removal expenses incurred in the Minneapolis and Harrisburg metropolitan areas, additional repair and maintenance expenses incurred in the Chicago metropolitan area and increased real estate taxes in the majority of the Company's geographical markets. General and administrative expense increased in 1996 over 1995 by $.9 million due primarily to the additional expenses associated with managing the Company's growing operations, including additional professional fees relating to additional properties owned and personnel to manage and expand the Company's business. Interest expense increased by $.4 million for the year ended December 31, 1996 compared to the year ended December 31, 1995 due primarily to a higher average outstanding debt balance to fund the acquisition of additional properties, however, the resulting impact on interest expense was partially offset by lower interest rates in 1996 on the Company's $150 million secured revolving line of credit. Depreciation and amortization increased in 1996 over 1995 by $5.8 million due primarily to the additional depreciation and amortization related to the properties acquired after December 31, 1994. The $6.4 million loss from disposition of interest rate protection agreement in 1995 resulted from the replacement of the Company's interest rate protection agreement entered into in connection with the 1994 Mortgage Loan with new interest rate protection agreements. Approximately $6.3 million of the loss is a non-cash loss, representing the difference between the unamortized cost of the replaced interest rate protection agreement and the cost of the new interest rate agreements. The $4.3 million gain on sales of properties in 1996 resulted from the sale of six properties. Gross proceeds for these property sales totaled approximately $15.0 million. The $2.3 million extraordinary loss in 1996 represents the write-off of unamortized deferred financing costs, a prepayment fee, legal fees and other costs that were incurred to terminate various mortgage loans and various revolving lines of credit. LIQUIDITY AND CAPITAL RESOURCES At December 31, 1997, the Company's unrestricted cash and cash equivalents totaled $13.2 million and restricted cash totaled $313.1 million. Included in restricted cash are $3.9 million of cash reserves required to be set aside under the 1995 Mortgage Loan for payments of security deposit refunds, tenant improvements, capital expenditures, interest, real estate taxes and insurance. The portion of cash reserves relating to security deposit refunds is adjusted as tenants turn over. The portion of cash reserves relating to payments for tenant improvements, capital expenditures, interest, real estate taxes and insurance is established monthly, distributed to the Company as such expenditures are made and is replenished to a level adequate to make the next periodic payment of such expenditures. Also included in restricted cash are $306.0 million of reserves that were used to defease the Company's $300.0 million mortgage loan (the "1994 Defeased Mortgage Loan"). On January 2, 1998, $306.0 million of this cash reserve was used to pay off and retire the 1994 Defeased Mortgage Loan and to fund a $6.0 million prepayment fee. The remaining $3.2 million of reserves was returned to the Company in January 1998. 27
29 Net cash provided by operating activities was $102.6 million for the year ended December 31, 1997 compared to $62.6 million for the year ended December 31, 1996 and $38.5 million for the year ended December 31, 1995. The increases are primarily due to increased net operating income (which is defined as total revenues less property related expenses) as discussed in the "Results of Operations" above. Net cash used in investing activities was $805.5 million for the year ended December 31, 1997 compared to $240.6 million for the year ended December 31, 1996 and $84.2 million for the year ended December 31, 1995. The majority of the cash used in investing activities was for the acquisition of new properties offset by proceeds from the sales of real estate. Net cash provided by financing activities for the year ended December 31, 1997 increased to $708.5 million from $176.7 million for the year ended December 31, 1996, reflecting the issuance of 6.0 million shares of common stock, 6.0 million depositary shares representing .06 million shares of preferred stock and $650.0 million of senior unsecured debt offset, in part, by increased distributions to the common stockholders and First Industrial L.P. unitholders (the "Unitholders") and dividends to the preferred stockholders due to the issuance of additional preferred stock. Net cash provided by financing activities for the year ended December 31, 1996 was $176.7 million, compared to $45.4 million for the year ended December 31, 1995, reflecting the issuance of 10.9 million shares of common stock offset in part by increased distributions to the common stockholders and Unitholders, dividends to the preferred stockholders and a net pay down on the Company's $150.0 million revolving line of credit. Funds from operations increased by $31.8 million or 52.6% in 1997 compared to 1996 and increased by $19.1 million or 46.2% in 1996 compared to 1995 as a result of the factors discussed in the analysis of operating results above. Management considers funds from operations to be one financial measure of the operating performance of an equity REIT that provides a relevant basis for comparison among REITs and it is presented to assist investors in analyzing the performance of the Company. In accordance with the National Association of Real Estate Investment Trusts' definition of funds from operations, the Company calculates funds from operations to be equal to net income, excluding gains (or losses) from debt restructuring and sales of property, plus depreciation and amortization, excluding amortization of deferred financing costs and interest rate protection agreements, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs, including the payment of dividends and distributions. Funds from operations should not be considered as a substitute for net income as a measure of results of operations or for cash flow from operating activities (calculated in accordance with generally accepted accounting principles) as a measure of liquidity. Funds from operations as calculated by the Company may not be comparable to similarly titled but differently calculated measures of other REITs. The ratio of earnings to fixed charges and preferred stock dividends was 1.79 for the year ended December 31, 1997 compared to 1.88 for the year ended December 31, 1996 and 1.56 for the year ended December 31, 1995. The decrease in the earnings to fixed charges and preferred stock dividends between fiscal years 1997 and 1996 is primarily due to additional interest expense and preferred stock dividends incurred in fiscal year 1997 from additional debt and preferred stock issued to fund property acquisitions and to legally defease the 1994 Mortgage Loan, which is partially offset by higher net operating income from the property acquisitions as discussed in "Results of Operations" above. The increase in the earnings to fixed charges and preferred stock dividends between fiscal year 1996 and 1995 is primarily due to increased net operating income as discussed in "Results of Operations" above. In 1997, the Company acquired 389 industrial properties comprising approximately 22.9 million square feet of GLA for a total purchase price of approximately $862.4 million, completed the development of ten properties and expansions of two properties comprising approximately 1.7 million square feet of GLA at a cost of approximately $50.2 million and sold ten in-service properties comprising approximately .8 million square feet of GLA, one property held for redevelopment and several land parcels for gross proceeds of $33.7 million. The Company has committed to the construction of 12 industrial properties with an estimated completion GLA of approximately 2.5 million square feet. The estimated total construction costs are approximately $90.4 million. These developments are expected to be funded with cash flow from operations, as well as borrowings under the 1997 Unsecured Acquisition Facility. 28
30 In 1997, the Company and the Operating Partnership paid a quarterly distribution of $.505 per share/Unit related to each of the first, second and third quarters. In addition, the Company and Operating Partnership paid a fourth quarter 1997 distribution of $.53 per share/Unit on January 20, 1998. The total distributions paid to the Company's stockholders and the Operating Partnership's limited partners related to 1997 totaled $73.8 million. In 1997, the Company paid a quarterly preferred dividend of $.59375 per share on its Series A Cumulative Preferred Stock related to each of the first, second, third and fourth quarters. The total preferred dividends paid to the Company's Series A Cumulative Preferred Stock stockholders related to 1997 totaled $3.9 million. In 1997, the Company paid a period prorated preferred dividend of $27.95 per share (equivalent to $.2795 per Depositary Share) on its Series B Cumulative Preferred Stock related to the second quarter and a $54.688 per share (equivalent to $.54688 per Depositary Share) for each of the third and fourth quarters. The total preferred dividends paid to the Company's Series B Cumulative Preferred Stock stockholders related to 1997 totaled $5.5 million. In 1997, the Company paid a period prorated preferred dividend of $68.123 per share (equivalent to $.68123 per Depositary Share) on its Series C Cumulative Preferred Stock related to each of the second and third quarters and $53.906 per share (equivalent to $.53906 per Depositary Share) for the fourth quarter. The total preferred dividends paid to the Company's Series C Cumulative Preferred Stock stockholders related to 1997 totaled $2.4 million. In conjunction with an acquisition of a portfolio of properties on January 31, 1997, the Company, through the Operating Partnership, assumed two mortgage loans in the amount of $3.8 million (the "LB Mortgage Loan I") and $.7 million (the "LB Mortgage Loan II"). The LB Mortgage Loan I, which was collateralized by a property located in Long Island, New York and provided for interest only payments prior to its maturity date of July 11, 1998, was paid off and retired by the Company on December 19, 1997. The LB Mortgage Loan II, which is collateralized by a property located in Long Island, New York, is interest free until February, 1998, at which time the LB Mortgage Loan II bears interest at 8.00% and provides for interest only payments prior to maturity. The LB Mortgage Loan II matures 180 days after the completion of a contingent event relating to the environmental status of the property collateralizing the loan. In conjunction with the acquisition of a portfolio of properties on October 23, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $4.2 million (the "Acquisition Mortgage Loan I"). The Acquisition Mortgage Loan I is collateralized by a property in Bensenville, Illinois, bears interest at a fixed rate of 8.50% and provides for monthly principal and interest payments based on a 15-year amortization schedule. The Acquisition Mortgage Loan I matures on August 1, 2008. The Acquisition Mortgage Loan I may be prepaid after July 15, 1998 in exchange for a prepayment fee. In conjunction with the acquisition of a portfolio of properties on December 9, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $8.0 million (the "Acquisition Mortgage Loan II"). The Acquisition Mortgage Loan II is collateralized by ten properties in St. Charles, Louisiana, bears interest at a fixed rate of 7.75% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan II matures April 1, 2006. The Acquisition Mortgage Loan II may be prepaid only after April 9, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. In conjunction with the acquisition of a portfolio of properties on December 23, 1997, the Company, through the Operating Partnership, assumed a Mortgage Loan in the amount of $3.6 million (the "Acquisition Mortgage Loan III"). The Acquisition Mortgage Loan III is collateralized by two properties in Houston, Texas, bears interest at a fixed interest rate of 8.875% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan III matures on June 1, 2003. The Acquisition Mortgage Loan III may be prepaid only after June 30, 1998 in exchange for the greater of a 2% prepayment fee or a yield maintenance premium. On April 4, 1997, the Company, through the Operating Partnership, entered into a $309.8 million unsecured loan (the "Defeasance Loan"). The Defeasance Loan bore interest at LIBOR plus 1% and had a scheduled maturity of July 1, 1999. The gross proceeds from the Defeasance Loan were used to purchased U.S. Government Securities as substitute collateral to execute a legal defeasance of the 1994 Mortgage Loan (the "1994 Defeased Mortgage Loan"). The Defeasance Loan was paid off and retired in May 1997. 29
31 On May 13, 1997, the Company, through the Operating Partnership, issued $150.0 million of senior unsecured debt which matures on May 15, 2007 and bears a coupon interest rate of 7.60% (the "2007 Notes"). The issue price of the 2007 Notes was 99.965%. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2007 Notes prior to issuance. The debt issue discount and the settlement cost of the interest rate protection agreement are being amortized over the life of the 2007 Notes as an adjustment to the interest expense. The 2007 Notes contain certain covenants, including limitation on incurrence of debt and debt service coverage. On May 13, 1997, the Company, through the Operating Partnership, issued $100.0 million of senior unsecured debt which matures on May 15, 2027, and bears a coupon interest rate of 7.15% (the "2027 Notes"). The issue price of the 2027 Notes was 99.854%. The 2027 Notes are redeemable, at the option of the holders thereof, on May 15, 2002. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2027 Notes prior to issuance. The debt issue discount and the settlement cost of the interest rate protection agreement are being amortized over the life of the 2027 Notes as an adjustment to interest expense. The 2027 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On May 22, 1997, the Company, through the Operating Partnership, issued $100.0 million of senior unsecured debt which matures on May 15, 2011 and bears a coupon interest rate of 7.375% (the "2011 Notes"). The issue price of the 2011 Notes was 99.348%. Interest is paid semi-annually in arrears on May 15 and November 15. The 2011 Notes are redeemable, at the option of the holder thereof, on May 15, 2004 (the "Put Option"). The Company received approximately $1.8 million of proceeds from the holder of the 2011 Notes as consideration for the Put Option. The Company will amortize the Put Option proceeds over the life of the Put Option as an adjustment to interest expense. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 Notes prior to issuance. The debt issue discount and the proceeds from the settlement of the interest rate protection agreement are being amortized over the life of the 2011 Notes as an adjustment to interest expense. The 2011 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On November 20, 1997, the Company, through the Operating Partnership, issued $50.0 million of senior unsecured debt which matures on November 21, 2005 and bears a coupon interest rate of 6.90% (the "2005 Notes"). The issue price of the 2005 Notes was 100%. Interest is paid semi-annually in arrears on May 21 and November 21. The 2005 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On November 24, 1997, the Company, through the Operating Partnership, entered into a $25.0 million unsecured loan (the "November 1997 Unsecured Loan"). The November 1997 Unsecured Loan bore interest at LIBOR plus .8% and had a scheduled maturity date of December 31, 1997. The November 1997 Unsecured Loan was paid off and retired on December 5, 1997. On December 8, 1997, the Company, through the Operating Partnership, issued $150.0 million of senior unsecured debt which matures on December 1, 2006 and bears a coupon interest rate of 7.0% (the "2006 Notes"). The issue price of the 2006 Notes was 100%. Interest is paid semi-annually in arrears on June 1 and December 1. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2006 Notes prior to issuance. The settlement cost of the interest rate protection agreement is being amortized over the life of the 2006 Notes as an adjustment to interest expense. The 2006 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On December 8, 1997, the Company, through the Operating Partnership, issued $100.0 million of unsecured debt which matures on December 1, 2017 and bears a coupon interest rate of 7.5% (the "2017 Notes"). The issue price of the 2017 Notes was 99.808%. Interest is paid semi-annually in arrears on June 1 and December 1. The Operating Partnership will amortize the debt issue discount over the life of the 2017 Notes as an adjustment to interest expense. The 2017 Notes may be redeemed at any time at the option of the Company, in whole or in part, at a redemption price equal to the sum of the principal amount of the 2017 Notes being redeemed plus accrued interest thereon to the redemption date and any make-whole amount, as defined in the Prospectus Supplement relating to the 2017 Notes. In December 1997, the Operating Partnership terminated the 1996 Unsecured Acquisition Facility and entered into a $300 million unsecured revolving credit facility (the "1997 Unsecured Acquisition Facility") which initially bears interest at LIBOR plus .8% or a "Corporate Base Rate" and provides for interest only payments until maturity. The 30
32 Operating Partnership may borrow under the facility to finance the acquisition of additional properties and for other corporate purposes, including to obtain additional working capital. The 1997 Unsecured Acquisition Facility contains certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness. On September 16, 1997, the Company issued 637,440 shares of $.01 par value Common Stock (the "September 1997 Equity Offering"). The price per share in the September 1997 Equity Offering was $31.38, resulting in gross offering proceeds of $20.0 million. Proceeds to the Company, net of underwriters' discount and total offering expenses, were approximately $18.9 million. On October 15, 1997, the Company issued 5,400,000 shares of $.01 par value Common Stock (the "October 1997 Equity Offering"). The price per share was $33.40 resulting in gross offering proceeds of $180.4 million. Proceeds to the Company, net of underwritings' discount and the total offering expenses, were approximately $176.6 million. On May 14, 1997, the Company issued 4,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 8 3/4%, $.01 par value, Series B Cumulative Preferred Stock (the "Series B Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series B Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series B Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock and Series C Preferred Stock (hereinafter defined); however, the Series A Preferred Stock has the benefit of a guarantee by First Industrial Securities, L.P. The Series B Preferred Stock is not redeemable prior to May 14, 2002. On or after May 14, 2002, the Series B Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $100.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series B Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. On June 6, 1997, the Company issued 2,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 8 5/8%, $.01 par value, Series C Cumulative Preferred Stock (the "Series C Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series C Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series C Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock and Series B Preferred Stock; however, the Series A Preferred Stock has the benefit of a guarantee by First Industrial Securities, L.P. The Series C Preferred Stock is not redeemable prior to June 6, 2007. On or after June 6, 2007, the Series C Preferred Stock are redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $50.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series C Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. On September 4, 1997, the Board of Directors of the Company declared a dividend distribution of one Preferred Share Purchase Right ("Right") for each outstanding share of common stock, par value $.01 per share, of the Company (the "Common Stock"). The dividend distribution was made on October 20, 1997 to stockholders of record as of the close of business on October 19, 1997. In addition, a Right will attach to each share of Common Stock issued in the future. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Junior Participating Preferred Stock (the "Junior Preferred Stock"), at a price of $125 per one one-hundredth of a share (the "Purchase Price"), subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an "Acquiring Person") acquires, or obtains the right to acquire, beneficial ownership of Common Stock or other voting securities ("Voting Stock") that have 15% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commences or makes an announcement of an intention to commence a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that have 15% or more of the voting power of the outstanding shares of Voting Stock. The Rights will expire on October 19, 2007, unless redeemed earlier by the Company at $.001 per Right, or exchanged by the Company at an exchange ratio of one share of Common Stock per Right. 31
33 In the event that a person becomes an Acquiring Person, each holder of a Right, other than the Acquiring Person, is entitled to receive, upon exercise, (1) Common Stock having a value equal to two times the Purchase Price of the Right or (2) common stock of the acquiring company having a value equal to two times the Purchase Price of the Right. The Junior Preferred Stock ranks junior to all other series of the Company's preferred stock with respect to payment of dividends and as to distributions of assets in liquidation. Each share of Junior Preferred Stock has a quarterly dividend rate per share equal to the greater of $1.00 or 100 times the per share amount of any dividend (other than a dividend payable in shares of Common Stock or a subdivision of the Common Stock) declared on the Common Stock, subject to certain adjustments. In the event of liquidation, the holder of the Junior Preferred Stock is entitled to receive a preferred liquidation payment per share of $1.00 (plus accrued and unpaid dividends) or, if greater, an amount equal to 100 times the payment to be made per share of Common Stock, subject to certain adjustments. On February 4, 1998, the Company issued 5,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 7.95%, $.01 par value, Series D Cumulative Preferred Stock (the "Series D Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series D Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series D Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock; however, the Series A Preferred Stock has the benefit of a guarantee by First Industrial Securities, L.P. The Series D Preferred Stock is not redeemable prior to February 4, 2003. On or after February 4, 2003, the Series D Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $125.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series D Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. On March 18, 1998, the Company issued 3,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 7.90%, $.01 par value, Series E Cumulative Preferred Stock (the "Series E Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series E Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series E Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock; however, the Series A Preferred Stock has the benefit of a guarantee by First Industrial Securities, L.P. The Series E Preferred Stock is not redeemable prior to March 18, 2003. On or after March 18, 2003, the Series E Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $75.0 million in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series E Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. In March 1998, the Company declared a first quarter dividend of $.53 per share on its common stock which is payable on April 20, 1998. The Company also declared a first quarter dividend of $.59375 per share, $54.688 per share ($.54688 per depositary share), $53.906 per share ($.53906 per depositary share) and a partial period dividend of $30.365 per share ($.30365 per depositary share) on its Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively, which is payable on March 31, 1998. The Company has considered its short-term (one year or less) liquidity needs and the adequacy of its estimated cash flow from operations and other expected liquidity sources to meet these needs. The Company believes that its principal short-term liquidity needs are to fund normal recurring expenses, debt service requirements and the minimum distribution required to maintain the Company's REIT qualification under the Internal Revenue Code. The Company anticipates that these needs will be met with cash flows provided by operating activities. The Company expects to meet long-term (greater than one year) liquidity requirements such as property acquisitions, scheduled debt maturities, major renovations, expansions and other non-recurring capital improvements through long-term unsecured indebtedness and the issuance of additional equity securities. On January 27, 1998, the Company registered under the Securities Act of 1933, as amended (the "Securities Act"), approximately $789.2 million 32
34 of common stock, preferred stock and depository shares and $400.0 million of debt securities. As of March 18, 1998, $589.2 million of common stock, preferred stock and depositary shares and $400.0 million of debt securities remained registered under the Securities Act and were unissued. The Company may finance the acquisition or development of additional properties through borrowings under the 1997 Unsecured Acquisition Facility. At December 31, 1997, borrowings under the 1997 Unsecured Acquisition Facility bore interest at a weighted average interest rate of 6.77%. As of March 18, 1998, the Company had $229.6 million available in additional borrowings under the 1997 Unsecured Acquisition Facility. While the Company may sell properties if property or market conditions make it desirable, the Company does not expect to sell assets in the foreseeable future to satisfy its liquidity requirements. ENVIRONMENTAL The Company incurred environmental costs of $.3 million and $.1 million in 1997 and 1996, respectively. The Company estimates 1998 costs of approximately $.2 million. The Company estimates that the aggregate cost which needs to be expended in 1998 and beyond with regard to currently identified environmental issues will not exceed approximately $.6 million, a substantial amount of which will be the primary responsibility of the tenant, the seller to the Company or another responsible party. This estimate was determined by a third party evaluation. YEAR 2000 CONCERNS The Company believes, based on discussions with its current systems' vendor, that its software applications and operational programs will properly recognize calendar dates beginning in the Year 2000. In addition, the Company is discussing with its major vendors and customers the possibility of any interface difficulties relating to the Year 2000 which may affect the Company. To date, no significant concerns have been identified; however, there can be no assurance that there will not be any Year 2000-related operating problems or expenses that will arise with the Company's computer systems and software or in connection with the Company's interface with the computer systems and software of its vendors and customers. OTHER In June 1997, the FASB issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." This statement, effective for fiscal years beginning after December 15, 1997, requires the Company to report components of comprehensive income in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income is defined by Concepts Statement No. 6, " Elements of Financial Statements" as the change in the equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company has not yet determined its comprehensive income. In June 1997, the FASB issued Statement of Financial Accounting Standards No. 131, " Disclosures about Segments of an Enterprise and Related Information." This statement, effective for financial statements for periods beginning after December 15, 1997, requires that a public business enterprise report financial and descriptive information about its reportable operating segments. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. The Company has not yet determined the impact of this statement on its financial statements. INFLATION For the last several years, inflation has not had a significant impact on the Company because of the relatively low inflation rates in the Company's markets of operation. Most of the Company's leases require the tenants to pay their share of operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing the Company's exposure to increases in costs and operating expenses resulting from inflation. In addition, many of the outstanding leases expire within five years which may enable the Company to replace existing leases with new leases at higher base rentals if rents of existing leases are below the then-existing market rate. 33
35 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See Index to Financial Statements and Financial Statement Schedule on page F-1 of this Form 10-K. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES None. PART III ITEM 10, 11, 12, 13. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, EXECUTIVE COMPENSATION, SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The information required by Item 10, Item 11, Item 12 and Item 13 will be contained in a definitive proxy statement which the Registrant anticipates will be filed no later than April 10, 1998, and thus is incorporated herein by reference in accordance with General Instruction G(3) to Form 10-K. 34
36 PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULE AND REPORTS ON FORM 8-K (a) FINANCIAL STATEMENTS, FINANCIAL STATEMENT SCHEDULE AND EXHIBITS (1 & 2) See Index to Financial Statements and Financial Statement Schedule on page F-1 of this Form 10-K (3) Exhibits: <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 3.1 Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.2 Amended and Restated Bylaws of the Company, dated September 4, 1997 (incorporated by reference to Exhibit 1 of the Company's Form 8-K, dated September 4, 1997, as filed on September 29, 1997, File No. 1-13102) 3.3 Articles of Amendment to the Company's Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.4 Articles Supplementary relating to the Company's 9 1/2% Series A Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.4 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.5 Articles of Amendment to the Company's Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.6 Articles Supplementary relating to the Company's 8 3/4% Series B Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102) 3.7 Articles Supplementary relating to the Company's 8 5/8% Series C Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company dated June 6, 1997, File No. 1-13102) 3.8 Articles Supplementary relating to the Company's 7.95% Series D Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated February 6, 1997, File No. 1-13102) 3.9* Articles Supplementary relating to the Company's 7.90% Series E Cumulative Preferred Stock, $.01 par value. 3.10 Articles Supplementary relating to the Company's Junior Participating Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879) 4.1 Form of Amended and Restated Articles of Incorporation of First Industrial Securities Corporation (incorporated by reference to Exhibit 4.5 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.2 Form of Articles Supplementary of First Industrial Securities Corporation (incorporated by reference to Exhibit 4.6 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.3 Loan Agreement by and between Nomura Asset Capital Corporation and First Industrial Financing Partnership, L.P. (incorporated by reference to Exhibit 4.1 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 4.4 Amendment to Loan Agreement by and between Nomura Asset Capital Corporation and First Industrial Financing Partnership, L.P. (incorporated by reference to Exhibit 4.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) </TABLE> 35 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 4.5 Form of Guarantee and Payment Agreement between First Industrial Securities, L.P. and First Industrial Securities Corporation for the benefit of American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.8 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.6 Form of Agency and Advance Agreement among First Industrial Realty Trust, Inc., First Industrial Securities, L.P. and American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.9 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.7 Form of Guarantee Agency Agreement among First Industrial Realty Trust, Inc., First Industrial Securities, L.P. and American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.10 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.8 Form of Limited Partnership Agreement of First Industrial Securities, L.P. (incorporated by reference to Exhibit 4.3 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.9 Deposit Agreement, dated May 14, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.3 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102) 4.10 Deposit Agreement, dated June 6, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated June 6, 1997, File No. 1-13102) 4.11 Deposit Agreement, dated February 6, 1998, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated February 6, 1998, File No. 1-13102) 4.12 * Deposit Agreement, Dated March 18, 1998, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts. 4.13 Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102) 4.14 Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $150 million of 7.60% Notes due 2007 and $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102). 4.15 Supplemental Indenture No. 2, dated as of May 22, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 7 3/8% Notes due 2011 (incorporated by reference to Exhibit 4.4 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873) 4.16 Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873) 4.17* 6.90% Medium-Term Note due 2005 in principal amount of $50 million issued by First Industrial, L.P. 4.18* 7.00% Medium-Term Note due 2006 in principal amount of $150 million issued by First Industrial, L.P. 4.19* 7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. 4.20 Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of the Operating Partnership for the fiscal quarter ended March 31, 1997, File No. 333-21873) 4.21 Rights Agreement, dated as of September 16, 1997, between the Company and First Chicago Trust Company of New York, as Rights Agent (incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on September 24, 1997, File No. 1-13102) </TABLE> 36
37 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 4.22* Unsecured Revolving Credit Agreement (the "Unsecured Revolving Credit Agreement"), dated as of December 15, 1997, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and The First National Bank of Chicago, Union Bank of Switzerland, New York Branch and certain other banks 10.1 * Sixth Amended and Restated Limited Partnership Agreement of First Industrial, L.P., dated March 18, 1998. 10.2 Non-Competition Agreement between Jay H. Shidler and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.16 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.3 Form of Non-Competition Agreement between each of Michael T. Tomasz, Paul T. Lambert, Michael J. Havala, Michael W. Brennan, Michael G. Damone, Duane H. Lund, and Johannson L. Yap and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.14 to the Company's Registration Statement on Form S-11, File No. 33-77804) 10.4+ 1994 Stock Incentive Plan (incorporated by reference to Exhibit 10.37 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.5 Letter of Resignation from Paul T. Lambert to First Industrial, dated January 10, 1996 (incorporated by reference to Exhibit 10.40 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.6+ Employee Stock Option Agreement Amendment for Paul T. Lambert, dated December 31, 1995 (incorporated by reference to Exhibit 10.41 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.7+ Separation Agreement, dated January 10, 1996, between First Industrial and Paul T. Lambert (incorporated by reference to Exhibit 10.42 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.8 Noncompetition Agreement between First Industrial and Paul T. Lambert, dated January 1, 1996 (incorporated by reference to Exhibit 10.43 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.9 Interest Rate Protection Agreement (incorporated by reference to Exhibit 10.40 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.10 Interest Rate Protection Termination Agreement between First Industrial Financing Partnership, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.45 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.11 Interest Rate Protection Agreement between First Industrial Financing Partnership, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.46 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.12 Interest Rate Swap Agreement between First Industrial, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.47 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.13 First Industrial Realty Trust, Inc. Deferred Income Plan (incorporated by reference to Exhibit 10 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1996, File No. 1-13102) 10.14 Contribution Agreement, dated March 19, 1996, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company, dated April 3, 1996, File No. 1-13102) 10.15 Contribution Agreement, dated January 31, 1997, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.58 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.16+ Employment Agreement, dated December 4, 1996, between the Company and Michael T. Tomasz (incorporated by reference to Exhibit 10.59 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.17+ Employment Agreement, dated February 1, 1997, between the Company and Michael W. Brennan (incorporated by reference to Exhibit 10.60 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) </TABLE> 37
38 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 10.18+ Employment Agreement, dated January 31, 1997, between the Company and Jan Burman (incorporated by reference to Exhibit 10.61 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.19*+ Employment Agreement, dated December 9, 1997, between the Company and Scott P. Sealy, Sr. 10.20*+ Employment Agreement, dated December 10, 1997, between the Company and Donald Thompson 10.21+ 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10.62 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 12.1* Computation of ratios of earnings to fixed charges and preferred stock dividends of the Company 21.1* Subsidiaries of the Registrant 23* Consent of Coopers & Lybrand L.L.P. 27* Financial Data Schedule * Filed herewith. + Indicates a compensatory plan or arrangement contemplated by Item 14 a (3) of Form 10-K. </TABLE> (B) REPORTS ON FORM 8-K AND FORM 8-K/A Report on Form 8-K/A No. 2 filed October 16, 1997, dated June 30, 1997, relating to the acquisition of 68 properties, one parking lot and land parcels for future development. The reports include Combined Historical Statements of Revenues and Certain Expenses for the acquired properties and Pro Forma Statements of Operations for First Industrial Realty Trust, Inc. Report on Form 8-K filed October 21, 1997, dated October 15, 1997, Underwriting Agreement dated October 6, 1997 for 5,400,000 shares of the Company's Common Stock, par value $.01 per share. Report on Form 8-K filed November 14, 1997, dated October 30, 1997, relating to the acquisition of 127 properties, the negotiations to acquire an additional 79 properties and the acquisition of land parcels for future development. The reports include Combined Historical Statements of Revenues and Certain Expenses for the acquired and to be acquired properties and Pro Forma Statements of Operations for First Industrial Realty Trust, Inc. Report on Form 8-K dated December 11, 1997, as amended by the report on Form 8-K/A No. 1 filed January 22, 1998, as further amended by the report on Form 8-K/A No. 2 filed February 26, 1998, relating to the acquisition of 85 properties, the negotiations to acquire an additional property and the acquisition of land parcels for future development. The reports include Combined Historical Statements of Revenues and Certain Expenses for the acquired and to be acquired properties and Pro Forma Balance Sheet and Pro Forma Statements of Operations for First Industrial Realty Trust, Inc. 38
39 - -------------------------------------------------------------------------------- The Company has prepared supplemental financial and operating information which is available without charge upon request to the Company. Please direct requests as follows: First Industrial Realty Trust, Inc. 311 S. Wacker, Suite 4000 Chicago, IL 60606 Attention: Investor Relations 39
40 SIGNATURES 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, thereunto duly authorized. FIRST INDUSTRIAL REALTY TRUST, INC. <TABLE> <S> <C> Date: March 23, 1998 By: /s/ Michael T. Tomasz ----------------------------------------------- Michael T. Tomasz President, Chief Executive Officer and Director (Principal Executive Officer) Date: March 23, 1998 By: /s/ Michael J. Havala ----------------------------------------------- Michael J. Havala Chief Financial Officer (Principal Financial and Accounting Officer) </TABLE> Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. <TABLE> <CAPTION> Signature Title Date - --------- ----- ---- <S> <C> <C> /s/ Jay H. Shidler Chairman of the Board of Directors March 23, 1998 - ----------------------------------------- Jay H. Shidler /s/ Michael T. Tomasz President, Chief Executive Officer March 23, 1998 - ----------------------------------------- and Director Michael T. Tomasz /s/ Michael W. Brennan Chief Operating Officer and Director March 23, 1998 - ----------------------------------------- Michael W. Brennan /s/ Michael G. Damone Director of Strategic Planning March 23, 1998 - ----------------------------------------- and Director Michael G. Damone /s/ John L. Lesher Director March 23, 1998 - ----------------------------------------- John L. Lesher /s/ Kevin W. Lynch Director March 23, 1998 - ----------------------------------------- Kevin W. Lynch /s/ John E. Rau Director March 23, 1998 - ----------------------------------------- John E. Rau /s/ Robert J. Slater Director March 23, 1998 - ----------------------------------------- Robert J. Slater /s/ J. Steven Wilson Director March 23, 1998 - ----------------------------------------- J. Steven Wilson </TABLE> 40
41 EXHIBIT INDEX <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 3.1 Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.2 Amended and Restated Bylaws of the Company, dated September 4, 1997 (incorporated by reference to Exhibit 1 of the Company's Form 8-K, dated September 4, 1997, as filed on September 29, 1997, File No. 1-13102) 3.3 Articles of Amendment to the Company's Articles of Incorporation, dated June 20, 1994 (incorporated by reference to Exhibit 3.2 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.4 Articles Supplementary relating to the Company's 91/2% Series A Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.4 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.5 Articles of Amendment to the Company's Articles of Incorporation, dated May 31, 1996 (incorporated by reference to Exhibit 3.3 of the Form 10-Q of the Company for the fiscal quarter ended June 30, 1996, File No. 1-13102) 3.6 Articles Supplementary relating to the Company's 8 3/4% Series B Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102) 3.7 Articles Supplementary relating to the Company's 8 5/8% Series C Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 3.1 of the Form 8-K of the Company dated June 6, 1997, File No. 1-13102) 3.8 Articles Supplementary relating to the Company's 7.95% Series D Cumulative Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.1 of the Form 8-K of the Company dated February 6, 1997, File No. 1-13102) 3.9* Articles Supplementary relating to the Company's 7.90% Series E Cumulative Preferred Stock, $.01 par value. 3.10 Articles Supplementary relating to the Company's Junior Participating Preferred Stock, $.01 par value (incorporated by reference to Exhibit 4.10 of Form S-3 of the Company and First Industrial, L.P. dated September 24, 1997, Registration No. 333-29879) 4.1 Form of Amended and Restated Articles of Incorporation of First Industrial Securities Corporation (incorporated by reference to Exhibit 4.5 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.2 Form of Articles Supplementary of First Industrial Securities Corporation (incorporated by reference to Exhibit 4.6 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.3 Loan Agreement by and between Nomura Asset Capital Corporation and First Industrial Financing Partnership, L.P. (incorporated by reference to Exhibit 4.1 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 4.4 Amendment to Loan Agreement by and between Nomura Asset Capital Corporation and First Industrial Financing Partnership, L.P. (incorporated by reference to Exhibit 4.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 4.5 Form of Guarantee and Payment Agreement between First Industrial Securities, L.P. and First Industrial Securities Corporation for the benefit of American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.8 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.6 Form of Agency and Advance Agreement among First Industrial Realty Trust, Inc., First Industrial Securities, L.P. and American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.9 of the Company's Registration Statement on Form S-3, File No. 33-97014) </TABLE> 41
42 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 4.7 Form of Guarantee Agency Agreement among First Industrial Realty Trust, Inc., First Industrial Securities, L.P. and American National Bank and Trust Company of Chicago (incorporated by reference to Exhibit 4.10 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.8 Form of Limited Partnership Agreement of First Industrial Securities, L.P. (incorporated by reference to Exhibit 4.3 of the Company's Registration Statement on Form S-3, File No. 33-97014) 4.9 Deposit Agreement, dated May 14, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.3 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102) 4.10 Deposit Agreement, dated June 6, 1997, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated June 6, 1997, File No. 1-13102) 4.11 Deposit Agreement, dated February 6, 1998, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts (incorporated by reference to Exhibit 4.2 of the Form 8-K of the Company, dated February 6, 1998, File No. 1-13102) 4.12 * Deposit Agreement dated March 18, 1998, by and among the Company, First Chicago Trust Company of New York and holders from time to time of Depositary Receipts. 4.13 Indenture, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102). 4.14 Supplemental Indenture No. 1, dated as of May 13, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $150 million of 7.60% Notes due 2007 and $100 million of 7.15% Notes due 2027 (incorporated by reference to Exhibit 4.2 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1997, as amended by Form 10-Q/A No. 1 of the Company filed May 30, 1997, File No. 1-13102). 4.15 Supplemental Indenture No. 2, dated as of May 22, 1997, between First Industrial, L.P. and First Trust National Association as Trustee relating to $100 million of 7 3/8% Notes due 2011 (incorporated by reference to Exhibit 4.4 of the Form 10-Q of First Industrial, L.P. for the fiscal quarter ended March 31, 1997, File No. 333-21873) 4.16 Supplemental Indenture No. 3 dated October 28, 1997 between First Industrial, L.P. and First Trust National Association providing for the issuance of Medium-term Notes due Nine Months or more from Date of Issue (incorporated by reference to Exhibit 4 of Form 8-K of First Industrial, L.P., dated November 3, 1997, as filed November 3, 1997, File No. 333-21873) 4.17* 6.90% Medium-Term Note due 2005 in principal amount of $50 million issued by First Industrial, L.P. 4.18* 7.00% Medium-Term Note due 2006 in principal amount of $150 million issued by First Industrial, L.P. 4.19* 7.50% Medium-Term Note due 2017 in principal amount of $100 million issued by First Industrial, L.P. 4.20 Trust Agreement, dated as of May 16, 1997, between First Industrial, L.P. and First Bank National Association, as Trustee (incorporated by reference to Exhibit 4.5 of the Form 10-Q of the Operating Partnership for the fiscal quarter ended March 31, 1997, File No. 333-21873) 4.21 Rights Agreement, dated as of September 16, 1997, between the Company and First Chicago Trust Company of New York, as Rights Agent (incorporated by reference to Exhibit 99.1 of Form 8-A12B as filed on September 24, 1997, File No. 1-13102) 4.22* Unsecured Revolving Credit Agreement (the "Unsecured Revolving Credit Agreement"), dated as of December 15, 1997, by and among First Industrial, L.P., First Industrial Realty Trust, Inc. and The First National Bank of Chicago, Union Bank of Switzerland, New York Branch and certain other banks 10.1 * Sixth Amended and Restated Limited Partnership Agreement of First Industrial, L.P., dated March 18, 1998 </TABLE> 42
43 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 10.2 Non-Competition Agreement between Jay H. Shidler and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.16 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.3 Form of Non-Competition Agreement between each of Michael T. Tomasz, Paul T. Lambert, Michael J. Havala, Michael W. Brennan, Michael G. Damone, Duane H. Lund, and Johannson L. Yap and First Industrial Realty Trust, Inc. (incorporated by reference to Exhibit 10.14 to the Company's Registration Statement on Form S-11, File No. 33-77804) 10.4+ 1994 Stock Incentive Plan (incorporated by reference to Exhibit 10.37 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.5 Letter of Resignation from Paul T. Lambert to First Industrial, dated January 10, 1996 (incorporated by reference to Exhibit 10.40 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.6+ Employee Stock Option Agreement Amendment for Paul T. Lambert, dated December 31, 1995 (incorporated by reference to Exhibit 10.41 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.7+ Separation Agreement, dated January 10, 1996, between First Industrial and Paul T. Lambert (incorporated by reference to Exhibit 10.42 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.8 Noncompetition Agreement between First Industrial and Paul T. Lambert, dated January 1, 1996 (incorporated by reference to Exhibit 10.43 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.9 Interest Rate Protection Agreement (incorporated by reference to Exhibit 10.40 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994, File No. 1-13102) 10.10 Interest Rate Protection Termination Agreement between First Industrial Financing Partnership, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.45 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.11 Interest Rate Protection Agreement between First Industrial Financing Partnership, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.46 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.12 Interest Rate Swap Agreement between First Industrial, L.P. and UBS Securities (Swaps) Inc. (incorporated by reference to Exhibit 10.47 of the Company's Annual Report on Form 10-K for the year ended December 31, 1995, File No. 1-13102) 10.13 First Industrial Realty Trust, Inc. Deferred Income Plan (incorporated by reference to Exhibit 10 of the Form 10-Q of the Company for the fiscal quarter ended March 31, 1996, File No. 1-13102) 10.14 Contribution Agreement, dated March 19, 1996, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.1 of the Form 8-K of the Company, dated April 3, 1996, File No. 1-13102) 10.15 Contribution Agreement, dated January 31, 1997, among FR Acquisitions, Inc. and the parties listed on the signature pages thereto (incorporated by reference to Exhibit 10.58 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.16+ Employment Agreement, dated December 4, 1996, between the Company and Michael T. Tomasz (incorporated by reference to Exhibit 10.59 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.17+ Employment Agreement, dated February 1, 1997, between the Company and Michael W. Brennan (incorporated by reference to Exhibit 10.60 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.18+ Employment Agreement, dated January 31, 1997, between the Company and Jan Burman (incorporated by reference to Exhibit 10.61 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 10.19*+ Employment Agreement, dated December 9, 1997, between the Company and Scott P. Sealy, Sr. 10.20*+ Employment Agreement, dated December 10, 1997, between the Company and Donald Thompson 10.21+ 1997 Stock Incentive Plan (incorporated by reference to Exhibit 10.62 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996, File No. 1-13102) 12.1* Computation of ratios of earnings to fixed charges and preferred stock dividends of the Company 21.1* Subsidiaries of the Registrant </TABLE> 43
44 <TABLE> <CAPTION> Exhibit No. Description - ----------- ----------- <S> <C> 23* Consent of Coopers & Lybrand L.L.P. 27* Financial Data Schedule * Filed herewith. + Indicates a compensatory plan or arrangement contemplated by Item 14 a (3) of Form 10-K. </TABLE> 44
45 FIRST INDUSTRIAL REALTY TRUST, INC. INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE <TABLE> <CAPTION> PAGE <S> <C> FINANCIAL STATEMENTS Report of Independent Accountants ................................................ F-2 Consolidated Balance Sheets of First Industrial Realty Trust, Inc. (the "Company") as of December 31, 1997 and 1996 ............................................... F-3 Consolidated Statements of Operations of the Company for the Years Ended December 31, 1997, 1996 and 1995 ............................................... F-4 Consolidated Statements of Changes in Stockholders' Equity of the Company for the Years Ended December 31, 1997, 1996 and 1995 ................................... F-5 Consolidated Statements of Cash Flows of the Company for the Years Ended December 31, 1997, 1996 and 1995 ............................................... F-6 Notes to Consolidated Financial Statements ....................................... F-7 FINANCIAL STATEMENT SCHEDULE Schedule III: Real Estate and Accumulated Depreciation .......................... S-1 </TABLE> F-1
46 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Stockholders of First Industrial Realty Trust, Inc. We have audited the consolidated financial statements and the financial statement schedule of First Industrial Realty Trust, Inc. (the "Company") as listed on page F-1 of this Form 10-K. These financial statements and the financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and the financial statement schedule based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of First Industrial Realty Trust, Inc. as of December 31, 1997 and 1996, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles. In addition, in our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information required to be included therein. COOPERS & LYBRAND L.L.P. Chicago, Illinois February 17, 1998 F-2
47 FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) <TABLE> <CAPTION> December 31, December 31, 1997 1996 ----------- ----------- ASSETS <S> <C> <C> Assets: Investment in Real Estate: Land .................................................... $ 299,020 $ 153,390 Buildings and Improvements .............................. 1,663,731 880,924 Furniture, Fixtures and Equipment ....................... 1,437 1,662 Construction in Progress ................................ 30,158 14,803 Less: Accumulated Depreciation .......................... (121,030) (91,457) ----------- ----------- Net Investment in Real Estate ...................... 1,873,316 959,322 Cash and Cash Equivalents ................................... 13,222 7,646 Restricted Cash ............................................. 313,060 11,837 Tenant Accounts Receivable, Net ............................. 6,280 4,667 Deferred Rent Receivable .................................... 10,144 8,290 Interest Rate Protection Agreements, Net .................... -- 8,376 Deferred Financing Costs, Net ............................... 8,594 7,442 Prepaid Expenses and Other Assets, Net ...................... 47,547 15,020 ----------- ----------- Total Assets ....................................... $ 2,272,163 $ 1,022,600 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage Loans Payable ...................................... $ 101,198 $ 392,082 Defeased Mortgage Loan Payable .............................. 300,000 -- Senior Unsecured Debt, Net .................................. 648,994 -- Acquisition Facilities Payable .............................. 129,400 4,400 Promissory Notes Payable .................................... -- 9,919 Accounts Payable and Accrued Expenses ....................... 50,373 18,374 Rents Received in Advance and Security Deposits ............. 14,104 6,122 Dividends/Distributions Payable ............................. 22,010 16,281 ----------- ----------- Total Liabilities .................................. 1,266,079 447,178 ----------- ----------- Minority Interest ............................................ 151,494 42,861 Commitments and Contingencies ................................ -- -- Stockholders' Equity: Preferred Stock ($.01 par value, 10,000,000 shares authorized, 1,650,000, 40,000 and 20,000 shares of Series A, B and C Cumulative Preferred Stock, respectively, issued and outstanding at December 31, 1997 having a liquidation preference of $25 per share ($41,250), $2,500 per share ($100,000) and $2,500 per share ($50,000), respectively, and 1,650,000 shares of Series A Cumulative Preferred Stock issued and outstanding at December 31, 1996 having a liquidation preference of $25 per share ($41,250)) ......... 17 17 Common Stock ($.01 par value, 100,000,000 shares authorized, 36,433,859 and 29,939,417 shares issued and outstanding at December 31, 1997 and 1996, respectively ................... 364 299 Additional Paid-in-Capital ................................... 934,622 584,009 Distributions in Excess of Accumulated Earnings .............. (76,996) (51,764) Unearned Value of Restricted Stock Grants .................... (3,417) -- ----------- ----------- Total Stockholders' Equity ......................... 854,590 532,561 ----------- ----------- Total Liabilities and Stockholders' Equity ......... $ 2,272,163 $ 1,022,600 =========== =========== </TABLE> The accompanying notes are an integral part of the financial statements. F-3
48 FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) <TABLE> <CAPTION> Year Ended Year Ended Year Ended December 31, December 31, December 31, 1997 1996 1995 --------- --------- --------- <S> <C> <C> <C> Revenues: Rental Income .................................. $ 164,389 $ 109,113 $ 83,522 Tenant Recoveries and Other Income ............. 46,028 30,942 22,964 Interest Income- Defeasance .................... 12,786 -- -- --------- --------- --------- Total Revenues ............................... 223,203 140,055 106,486 --------- --------- --------- Expenses: Real Estate Taxes .............................. 34,653 23,371 16,998 Repairs and Maintenance ........................ 8,278 5,408 3,872 Property Management ............................ 7,850 5,067 3,539 Utilities ...................................... 5,801 3,582 2,060 Insurance ...................................... 568 877 903 Other .......................................... 2,612 919 930 General and Administrative ..................... 6,248 4,018 3,135 Interest Expense ............................... 49,859 28,954 28,591 Amortization of Interest Rate Protection Agreements and Deferred Financing Costs ....... 2,812 3,286 4,438 Depreciation and Other Amortization ............ 39,573 28,049 22,264 --------- --------- --------- Total Expenses ............................... 158,254 103,531 86,730 --------- --------- --------- Income Before Gain (Loss) on Disposition of Interest Rate Protection Agreements, Gain on Sales of Properties, Minority Interest and Extraordinary 64,949 36,524 19,756 Loss Gain (Loss) on Disposition of Interest Rate Protection Agreements ......................... 1,430 -- (6,410) Gain on Sales of Properties ....................... 5,003 4,344 -- --------- --------- --------- Income Before Minority Interest and Extraordinary Loss ............................................. 71,382 40,868 13,346 Income Allocated to Minority Interest ............. (5,312) (2,931) (997) --------- --------- --------- Income Before Extraordinary Loss .................. 66,070 37,937 12,349 Extraordinary Loss ................................ (14,124) (2,273) -- --------- --------- --------- Net Income ........................................ 51,946 35,664 12,349 Preferred Stock Dividends ......................... (11,856) (3,919) (468) --------- --------- --------- Net Income Available to Common Stockholders ....... $ 40,090 $ 31,745 $ 11,881 ========= ========= ========= Net Income Available to Common Stockholders Before Extraordinary Loss Per Weighted Average Common Share Outstanding Basic .......................................... $ 1.72 $ 1.37 $ .63 ========= ========= ========= Diluted ........................................ $ 1.70 $ 1.37 $ .63 ========= ========= ========= Extraordinary Loss Per Weighted Average Common Share Outstanding Basic .......................................... $ (.45) $ (.09) $--- ========= ========= ========= Diluted ........................................ $ (.44) $ (.09) $--- ========= ========= ========= Net Income Available to Common Stockholders Per Weighted Average Common Share Outstanding Basic .......................................... $ 1.27 $ 1.28 $ .63 ========= ========= ========= Diluted ........................................ $ 1.26 $ 1.28 $. 63 ========= ========= ========= </TABLE> The accompanying notes are an integral part of the financial statements. F-4
49 FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DOLLARS IN THOUSANDS, except per Share data) <TABLE> <CAPTION> Additional Distributions Unearned Preferred Common Paid-In Retained In Excess of Value of Rest. Total Stock Stock Capital Earnings Accum. Earnings Stock Grants --------- --------- --------- --------- --------- --------------- ------------ <S> <C> <C> <C> <C> <C> <C> <C> Balance at December 31, 1994 .. $ 292,420 $ -- $ 189 $ 301,201 $ -- $ (8,970) $ -- Net Proceeds from Issuance of Preferred Stock ............. 36,719 17 -- 36,702 -- -- -- Preferred Stock Dividends ($.2837 per Series A Share).. (468) -- -- -- (468) -- -- Distributions ($1.905 per Share/Unit) ..... (38,898) -- -- -- (12,878) (26,020) -- Net Income Before Minority Interest .................... 13,346 -- -- -- 13,346 -- -- Minority Interest: Allocation of Income ......... (997) -- -- -- -- (997) -- Distributions ($1.905 per Unit)........................ 2,896 -- -- -- -- 2,896 -- Conversion of Units to Common Stock ....................... 1,005 -- 1 1,004 -- -- -- --------- --------- --------- --------- --------- --------- --------- Balance at December 31, 1995 . 306,023 17 190 338,907 -- (33,091) -- Net Proceeds from Issuance of Common Stock ................ 244,040 -- 109 243,931 -- -- -- Preferred Stock Dividends ($2.375 per Series A Share) . (3,919) -- -- -- (3,919) -- -- Distributions ($1.9675 per Share/Unit) .... (54,318) -- -- -- (34,676) (19,642) -- Exercise of Stock Options .... 228 -- -- 228 -- -- -- Net Income Before Minority Interest .................... 38,595 -- -- -- 38,595 -- -- Minority Interest: ........... -- Allocation of Income ......... (2,931) -- -- -- -- (2,931) -- Distributions ($1.9675 per Unit) ....................... 3,900 -- -- -- -- 3,900 -- Conversion of Units to Common Stock ....................... 943 -- -- 943 -- -- -- --------- --------- --------- --------- --------- --------- --------- Balance at December 31, 1996... 532,561 17 299 584,009 -- (51,764) -- Net Proceeds from Issuance of Preferred Stock ............. 144,289 -- -- 144,289 -- -- -- Net Proceeds from Issuance of Common Stock ................ 195,456 -- 60 195,396 -- -- -- Issuance of Restricted Stock . -- -- 1 3,654 -- -- (3,655) Amortization of Restricted Stock ....................... 238 -- -- -- -- -- 238 Grants Preferred Stock Dividends ($2.375 per Series A Share, $137.326 per Series B Share and $122.029 per Series C Share) ............. (11,856) -- -- -- (11,856) -- -- Distributions ($2.045 per Share/Unit ...... (73,836) -- -- -- (45,402) (28,434) -- Exercise of Stock Options .... 3,883 -- 2 3,881 -- -- -- Net Income Before Minority Interest .................... 57,258 -- -- -- 57,258 -- -- Minority Interest: Allocation of Income ......... (5,312) -- -- -- -- (5,312) -- Distributions ($2.045 per Unit 8,514 -- -- -- -- 8,514 -- Conversion of Units to Common Stock ....................... 3,395 -- 2 3,393 -- -- -- --------- --------- --------- --------- --------- --------- --------- Balance at December 31, 1997 .. $ 854,590 $ 17 $ 364 $ 934,622 $ -- $ (76,996) $ (3,417) ========= ========= ========= ========= ========= ========= ========= </TABLE> The accompanying notes are an integral part of the financial statements. F-5
50 FIRST INDUSTRIAL REALTY TRUST, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS) <TABLE> <CAPTION> Year Ended Year Ended Year Ended December 31, December 31, December 31, 1997 1996 1995 --------- --------- --------- <S> <C> <C> <C> CASH FLOWS FROM OPERATING ACTIVITIES: Net Income ................................................ $ 51,946 $ 35,664 $ 12,349 Income Allocated to Minority Interest ..................... 5,312 2,931 997 --------- --------- --------- Income Before Minority Interest ........................... 57,258 38,595 13,346 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation .............................................. 35,286 24,542 19,440 Amortization of Interest Rate Protection Agreement and Deferred Financing Costs ................................ 2,812 3,286 4,438 Other Amortization ........................................ 4,353 3,507 2,824 Provision for Bad Debts ................................... 850 100 352 Gain on Sales of Properties ............................... (5,003) (4,344) -- (Gain)Loss from Disposition of Interest Rate Protection Agreements .............................................. (1,430) -- 6,410 Extraordinary Loss ........................................ 14,124 2,273 -- Increase in Tenant Accounts Receivable, Prepaid Expenses and Other Assets ........................................ (23,034) (4,448) (5,207) Increase in Deferred Rent Receivable ...................... (2,075) (1,189) (1,584) Increase in Accounts Payable and Accrued Expenses and Rents Received in Advance and Security Deposits ............... 17,644 2,085 953 Increase in Organization Costs ............................ (185) (68) (153) Decrease (Increase) in Restricted Cash .................... 2,035 (1,718) (2,278) --------- --------- --------- Net Cash Provided by Operating Activities .............. 102,635 62,621 38,541 --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of and Additions to Investment in Real Estate .... (827,871) (257,156) (87,908) Proceeds from Sale of Investment in Real Estate ........... 33,658 14,972 -- Funding of Mortgage Loans Receivable ...................... (18,785) -- -- Repayment of Mortgage Loans Receivable .................... 4,751 -- -- (Increase) Decrease in Restricted Cash .................... 2,742 1,613 3,749 --------- --------- --------- Net Cash Used in Investing Activities .................. (805,505) (240,571) (84,159) --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Sale of Common Stock ........................ 200,360 260,703 -- Common Stock Underwriting Discounts/Offering Costs ........ (5,221) (15,190) -- Proceeds from Exercise of Employee Stock Options .......... 3,883 -- -- Proceeds from Sale of Preferred Stock ..................... 150,000 -- 41,250 Preferred Stock Underwriting Discounts/Offering Costs ..... (5,710) (408) (4,123) Proceeds from Sale of Interest Rate Protection Agreements . 9,950 -- -- Purchase of Interest Rate Protection Agreements ........... (150) -- -- Purchase of U.S. Government Securities .................... (300,000) -- -- Proceeds from Maturity of U.S. Government Securities ...... 300,000 -- -- Increase in Restricted Cash- Defeasance ................... (306,000) -- -- Proceeds from Senior Unsecured Debt ....................... 983,757 -- -- Repayment of Senior Unsecured Debt ........................ (334,800) -- -- Other Proceeds from Senior Unsecured Debt ................. 2,377 -- -- Other Costs of Senior Unsecured Debt ...................... (2,294) -- -- Dividends/Distributions ................................... (68,107) (47,991) (38,592) Preferred Stock Dividends ................................. (11,856) (4,387) -- Proceeds from Mortgage Loans Payable ...................... -- 36,750 52,850 Repayments on Mortgage Loans Payable ...................... (11,156) (935) (6,000) Proceeds from Acquisition Facilities Payable .............. 540,100 103,523 83,943 Repayments on Acquisition Facilities Payable .............. (415,100) (147,357) (84,408) Proceeds from Construction Loans Payable .................. -- -- 4,873 Repayment of Construction Loans Payable ................... -- (4,873) -- Repayment of Promissory Notes Payable ..................... (9,919) -- -- Cost of Debt Issuance and Retirement of Debt .............. (11,668) (3,158) (4,373) --------- --------- --------- Net Cash Provided by Financing Activities ............. 708,446 176,677 45,420 --------- --------- --------- Net Increase (Decrease) in Cash and Cash Equivalents ...... 5,576 (1,273) (198) Cash and Cash Equivalents, Beginning of Period ............ 7,646 8,919 9,117 --------- --------- --------- Cash and Cash Equivalents, End of Period .................. $ 13,222 $ 7,646 $ 8,919 ========= ========= ========= </TABLE> The accompanying notes are an integral part of the financial statements. F-6
51 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 1. ORGANIZATION AND FORMATION OF COMPANY First Industrial Realty Trust, Inc. was organized in the state of Maryland on August 10, 1993. First Industrial Realty Trust, Inc. is a real estate investment trust ("REIT") as defined in the Internal Revenue Code. First Industrial Realty Trust, Inc. and its subsidiaries (as discussed below) (the "Company") is continuing and expanding the midwestern industrial property business of The Shidler Group and the properties and businesses contributed by three other contributing businesses (the "Contributing Businesses"). The Company began operations on July 1, 1994. The Company's operations are conducted primarily through First Industrial, L.P. (the "Operating Partnership") of which the Company is the sole general partner. As of December 31, 1997, the Company owned 769 in-service properties located in 22 states, containing an aggregate of approximately 56.6 million square feet (unaudited) of gross leasable area ("GLA"). Of the 769 properties owned by the Company, 193 are held by First Industrial Financing Partnership, L.P. (the "Financing Partnership"), 522 are held by the Operating Partnership, six are held by First Industrial Pennsylvania, L.P. (the "Pennsylvania Partnership"), five are held by First Industrial Harrisburg, L.P. (the "Harrisburg Partnership"), 19 are held by First Industrial Securities, L.P. (the "Securities Partnership"), 23 are held by First Industrial Mortgage Partnership, L.P. (the "Mortgage Partnership") and one is held by First Industrial Indianapolis, L.P. (the "Indianapolis Partnership"). 2. BASIS OF PRESENTATION First Industrial Realty Trust, Inc. is the sole general partner of the Operating Partnership, with an approximate 86.0% ownership interest at December 31, 1997. Minority interest at December 31, 1997, represents the approximately 14.0% aggregate partnership interest in the Operating Partnership held by the limited partners thereof. First Industrial Realty Trust, Inc. is the sole stockholder of First Industrial Finance Corporation, First Industrial Pennsylvania Corporation, First Industrial Harrisburg Corporation, First Industrial Securities Corporation, First Industrial Mortgage Corporation, First Industrial Indianapolis Corporation and FI Development Services Corporation, which are the sole general partners of the Financing Partnership, the Pennsylvania Partnership, the Harrisburg Partnership, the Securities Partnership, the Mortgage Partnership, the Indianapolis Partnership, and First Industrial Development Services, L.P., respectively. The Operating Partnership is the sole limited partner of the Financing Partnership, the Pennsylvania Partnership, the Harrisburg Partnership, the Securities Partnership, the Mortgage Partnership, the Indianapolis Partnership, and First Industrial Development Services, L.P. The Operating Partnership is also the sole member of FR Development Services, LLC, and the majority stockholder of First Industrial Enterprises of Michigan and FR Development Services, Inc. The consolidated financial statements of the Company at December 31, 1997 and 1996 and for each of the three years ended December 31, 1997 include the accounts and operations of the Company and its subsidiaries. All significant intercompany transactions have been eliminated in consolidation. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In order to conform with generally accepted accounting principles, management, in preparation of the Company's financial statements, is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, 1997 and 1996, and the reported amounts of revenues and expenses for the years ended December 31, 1997, 1996 and 1995. Actual results could differ from those estimates. F-7
52 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Cash and Cash Equivalents: Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short maturity of these investments. Investment in Real Estate and Depreciation: Purchase accounting has been applied when ownership interests in properties were acquired for cash. The historical cost basis of properties has been carried over when the Contributing Businesses' ownership interests were exchanged for Operating Partnership units on July 1, 1994 and purchase accounting has been used for all other properties that were subsequently acquired for Operating Partnership units. The Company reviews its properties on a quarterly basis for impairment and provides a provision if impairments are determined. First, to determine if impairment may exist, the Company reviews its properties and identifies those which have had either an event of change or event of circumstances warranting further assessment of recoverability. Then, the Company estimates the fair value of those properties on an individual basis by capitalizing the expected net operating income. Such amounts are then compared to the property's depreciated cost to determine whether an impairment exists. Interest expense, real estate taxes and other directly related expenses incurred during construction periods are capitalized and depreciated commencing with the date placed in service, on the same basis as the related assets. Depreciation expense is computed using the straight-line method based on the following useful lives: <TABLE> <CAPTION> Years ---------- <S> <C> Buildings and Improvements.............. 31.5 to 40 Land Improvements....................... 15 Furniture, Fixtures and Equipment....... 5 to 10 </TABLE> Construction expenditures for tenant improvements and leasing commissions are capitalized and amortized over the terms of each specific lease. Repairs and maintenance are charged to expense when incurred. Expenditures for improvements are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss. Deferred Financing Costs: Deferred financing costs include fees and costs incurred to obtain long-term financing. These fees and costs are being amortized over the terms of the respective loans. Accumulated amortization of deferred financing costs was $1,672 and $4,549 at December 31, 1997 and 1996, respectively. Unamortized deferred financing fees are written-off when debt is retired before the maturity date (see Note 9). F-8
53 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Revenue Recognition: Rental income is recognized on a straight-line method under which contractual rent increases are recognized evenly over the lease term. Tenant recovery income includes payments from tenants for taxes, insurance and other property operating expenses and is recognized as revenues in the same period the related expenses are incurred by the Company. The Company provides an allowance for doubtful accounts against the portion of tenant accounts receivable which is estimated to be uncollectible. Accounts receivable in the consolidated balance sheets are shown net of an allowance for doubtful accounts of $1,450 and $600 as of December 31, 1997 and December 31, 1996, respectively. Income Taxes: The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, the Company generally is not subject to federal income taxation at the corporate level to the extent it distributes annually at least 95% of its REIT taxable income, as defined in the Code, to its stockholders and satisfies certain other requirements. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. The provision for such state and local taxes has been reflected in general and administrative expense in the consolidated statements of operations and has not been separately stated due to its insignificance. For federal income tax purposes, the cash distributions paid to stockholders may be characterized as ordinary income, return of capital (generally non-taxable) or capital gains. Distributions paid for the year ended December 31, 1997, totaling $65,322, are characterized 62.30% ($1.274 per share) as ordinary income, 35.60% ($.728 per share) as return of capital and 2.10% ($.043 per share) as 28% long-term capital gain. Distributions paid for the year ended December 31, 1996 totaling $50,418 are characterized 65.97% ($1.300 per share) as ordinary income and 34.03% ($.670 per share) as return of capital. Distributions paid for the year ended December 31, 1995 totaling $36,003 are characterized 40.17% ($.765 per share) as ordinary income and 59.83% ($1.140 per share) as return of capital. Earnings Per Common Share: The Company has adopted the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 128, "Earnings Per Share" ("FAS 128"). Net income per weighted average share - basic is based on the weighted average common shares outstanding. Net income per weighted average share - diluted is based on the weighted average common shares outstanding plus the effect of in-the-money employee stock options. See Note 10 for the disclosure required under FAS 128. Fair Value of Financial Instruments: The Company's financial instruments include short-term investments, tenant accounts receivable, accounts payable, other accrued expenses, mortgage loans payable, acquisition facilities payable, senior unsecured debt and interest rate protection agreements. The fair value of the short-term investments, tenant accounts receivable, accounts payable and other accrued expenses were not materially different from their carrying or contract values. F-9
54 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED See Note 4 for the fair values of the mortgage loans payable, acquisition facilities payable, senior unsecured debt and interest rate protection agreements. Derivative Financial Instruments: The Company's interest rate protection agreements (the "Agreements") are used to limit the interest rate on the Company's $300,000 mortgage loan and fix the interest rate on anticipated offerings of senior unsecured debt. Receipts or payments resulting from the Agreements used to limit the interest rate on the Company's $300,000 mortgage loan are recognized as adjustments to interest expense. In the event that the Company terminates these Agreements, the Company would recognize a gain (loss) from the disposition of the Agreements equal to the amount of cash received or paid at termination less the carrying value of the Agreements on the Company's balance sheet. Receipts or payments resulting from the settlement of Agreements used to fix the interest rate on anticipated offerings of senior unsecured debt are amortized over the life of the senior unsecured debt that the Agreements were used to hedge as an adjustment to interest expense using the effective interest method (or the straight line method if this method is not materially different from the effective interest method). The credit risks associated with the Agreements are controlled through the evaluation and monitoring of the creditworthiness of the counterparty. In the event that the counterparty fails to meet the terms of the Agreements, the Company's exposure is limited to the current value of the interest rate differential, not the notional amount, and the Company's carrying value of the Agreements on the balance sheet. The Agreements have been executed with creditworthy financial institutions. As such, the Company considers the risk of nonperformance to be remote. Recent Accounting Pronouncements: In June 1997, the FASB issued Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income." This statement, effective for fiscal years beginning after December 15, 1997, requires the Company to report components of comprehensive income in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income is defined by Concepts Statement No. 6, " Elements of Financial Statements" as the change in the equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company has not yet determined its comprehensive income. In June 1997, the FASB issued Statement of Financial Accounting Standards No. 131, " Disclosures about Segments of an Enterprise and Related Information." This statement, effective for financial statements for periods beginning after December 15, 1997, requires that a public business enterprise report financial and descriptive information about its reportable operating segments. Generally, financial information is required to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. The Company has not yet determined the impact of this statement on its financial statements. Reclassification: Certain 1996 items have been reclassified to conform to the 1997 presentation. F-10
55 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS Mortgage Loans: On June 30, 1994, the Company, through the Financing Partnership, entered into a $300,000 mortgage loan (the "1994 Mortgage Loan"). On April 4, 1997, the Company purchased U.S. Government securities as substitute collateral to execute a legal defeasance of the $300,000 mortgage loan (the "1994 Defeased Mortgage Loan") (See Note 9). Upon the execution of the legal defeasance, 180 of the 195 properties collateralizing the 1994 Defeased Mortgage Loan were released leaving 15 properties and the U.S. Government securities as collateral. On January 2, 1998, the Company used the gross proceeds from the maturity of the U.S. Government securities to pay off and retire the 1994 Defeased Mortgage Loan. Due to the retirement of the 1994 Defeased Mortgage Loan, the remaining 15 properties were released on January 2, 1998. The 1994 Defeased Mortgage Loan provided for interest only payments at a floating interest rate of LIBOR plus 1.40% which such interest rate had been limited to 7.2% from June 30, 1994 through June 30, 1995 through the use of the 1994 Interest Rate Protection Agreement (hereinafter defined). From July 1, 1995 through May 15, 1997, the 1994 Defeased Mortgage Loan's interest rate had been effectively fixed at the rate of 6.97% through the use of the 1995 Interest Rate Protection Agreements (hereinafter defined). From May 16, 1997 through December 31, 1997, the 1994 Defeased Mortgage Loan's interest rate had been limited to 7.2% through the use of the 1997 Interest Rate Protection Agreement (hereinafter defined). Under the terms of the 1994 Defeased Mortgage Loan, certain cash reserves were required to be and had been set aside for payment of tenant improvements, capital expenditures, interest, real estate taxes, insurance and potential environmental costs as well as certain other cash reserves to pay off and retire the 1994 Defeased Mortgage Loan. The amount of cash reserves for payment of potential environmental costs was determined by the lender and was established at the closing of the 1994 Defeased Mortgage Loan. The amounts included in the cash reserves relating to payments of tenant improvements, capital expenditures, interest, real estate taxes and insurance were determined by the lender and approximated the next periodic payment of such items. At December 31, 1997 and 1996, these reserves totaled $310,943 and $10,223, respectively, and are included in Restricted Cash. Such cash reserves were invested in a money market fund at December 31, 1997. The maturity of these investments is one day; accordingly, cost approximates fair market value. On January 2, 1998, $300,000 of these cash reserves were used to pay down and retire the 1994 Defeased Mortgage Loan, $6,000 of these cash reserves were used to pay a prepayment fee on the 1994 Defeased Mortgage Loan and the remaining cash reserves were returned to the Company. On December 29, 1995, the Company, through the Mortgage Partnership, entered into a $40,200 mortgage loan (the"1995 Mortgage Loan"). In the first quarter of 1996, the Company made a one time paydown of $200 on the 1995 Mortgage Loan which decreased the outstanding balance to $40,000. The 1995 Mortgage Loan matures on January 11, 2026 and provides for interest only payments through January 11, 1998, after which monthly principal and interest payments are required based on a 28-year amortization schedule. The interest rate under the 1995 Mortgage Loan is fixed at 7.22% per annum through January 11, 2003. After January 11, 2003, the interest rate adjusts through a predetermined formula based on the applicable Treasury rate. The 1995 Mortgage Loan is collateralized by 23 properties held by the Mortgage Partnership. The 1995 Mortgage Loan may be prepaid after January 11, 2003. Under the terms of the 1995 Mortgage Loan, certain cash reserves are required to be and have been set aside for refunds of security deposits and payments of capital expenditures, interest, real estate taxes and insurance. The amount of cash reserves segregated for security deposits is adjusted as tenants turn over. The amounts included in the cash reserves relating to payments of capital expenditures, interest, real estate taxes and insurance were determined by the lender and approximate the next periodic payment of such items. At December 31, 1997 and 1996, these reserves totaled $2,117 and $1,614, respectively, and are included in Restricted Cash. Such cash reserves F-11
56 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED were invested in a money market fund at December 31, 1997. The maturity of these investments is one day; accordingly, cost approximates fair market value. On December 14, 1995, the Company, through First Industrial Harrisburg, L.P., entered into a $6,650 mortgage loan (the "Harrisburg Mortgage Loan") that was collateralized by first mortgage liens on three properties in Harrisburg, Pennsylvania. The Harrisburg Mortgage Loan bore interest at a rate based on LIBOR plus 1.5% or prime plus 2.25%, at the Company's option, and provided for interest only payments through May 31, 1996, with monthly principal and interest payments required subsequently based on a 26.5-year amortization schedule. On December 15, 1997, the Company paid off and retired the Harrisburg Mortgage Loan (see Note 9). On March 20, 1996, the Company, through the Operating Partnership, and the Indianapolis Partnership, entered into a $36,750 mortgage loan (the "CIGNA Loan") that is collateralized by seven properties in Indianapolis, Indiana and three properties in Cincinnati, Ohio. The CIGNA Loan bears interest at a fixed interest rate of 7.50% and provides for monthly principal and interest payments based on a 25-year amortization schedule. The CIGNA Loan matures on April 1, 2003. The CIGNA Loan may be prepaid only after April 30, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. On March 20, 1996, the Company, through the Operating Partnership, assumed a $6,424 mortgage loan and a $2,993 mortgage loan (together, the "Assumed Loans") that are collateralized by 13 properties in Indianapolis, Indiana and one property in Indianapolis, Indiana, respectively. The Assumed Loans bear interest at a fixed rate of 9.25% and provide for monthly principal and interest payments based on a 16.75-year amortization schedule. The Assumed Loans mature on January 1, 2013. The Assumed Loans may be prepaid only after December 22, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. In conjunction with an acquisition of a portfolio of properties on January 31, 1997, the Company, through the Operating Partnership, assumed two mortgage loans in the amount of $3,800 (the "LB Mortgage Loan I") and $705 (the "LB Mortgage Loan II"). The LB Mortgage Loan I, which was collateralized by a property located in Long Island, New York and provided for interest only payments prior to its maturity date of July 11, 1998, was paid off and retired by the Company on December 19, 1997 (see Note 9). The LB Mortgage Loan II, which is collateralized by a property located in Long Island, New York, is interest free until February, 1998, at which time the LB Mortgage Loan II bears interest at 8.00% and provides for interest only payments prior to maturity. The LB Mortgage Loan II matures 180 days after the completion of a contingent event relating to the environmental status of the property collateralizing the loan. In conjunction with the acquisition of a portfolio of properties on October 23, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $4,153 (the "Acquisition Mortgage Loan I"). The Acquisition Mortgage Loan I is collateralized by a property in Bensenville, Illinois, bears interest at a fixed rate of 8.50% and provides for monthly principal and interest payments based on a 15-year amortization schedule. The Acquisition Mortgage Loan I matures on August 1, 2008. The Acquisition Mortgage Loan I may be prepaid after July 15, 1998 in exchange for a prepayment fee. In conjunction with the acquisition of a portfolio of properties on December 9, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $7,997 (the "Acquisition Mortgage Loan II"). The Acquisition Mortgage Loan II is collateralized by ten properties in St. Charles, Louisiana, bears interest at a fixed F-12
57 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED rate of 7.75% and provides for monthly principal and interest payments based on a 22-year amortization schedule. The Acquisition Mortgage Loan II matures on April 1, 2006. The Acquisition Mortgage Loan II may be prepaid only after April 9, 1999 in exchange for the greater of a 1% prepayment fee or a yield maintenance premium. In conjunction with the acquisition of a portfolio of properties on December 23, 1997, the Company, through the Operating Partnership, assumed a mortgage loan in the amount of $3,598 (the "Acquisition Mortgage Loan III"). The Acquisition Mortgage Loan III is collateralized by two properties in Houston, Texas, bears interest at a fixed interest rate of 8.875% and provides for monthly principal and interest payments based on a 20-year amortization schedule. The Acquisition Mortgage Loan III matures on June 1, 2003. The Acquisition Mortgage Loan III may be prepaid only after June 30, 1998 in exchange for the greater of a 2% prepayment fee or a yield maintenance premium. Senior Unsecured Debt: On April 4, 1997, the Company, through the Operating Partnership, entered into a $309,800 unsecured loan (the "Defeasance Loan"). The Defeasance Loan bore interest at LIBOR plus 1% and had a scheduled maturity of July 1, 1999. The gross proceeds from the Defeasance Loan were used to purchase U.S. Government Securities as substitute collateral to execute a legal defeasance of the 1994 Defeased Mortgage Loan. The Defeasance Loan was paid off and retired in May, 1997 (See Note 9). On May 13, 1997, the Company, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on May 15, 2007 and bears a coupon interest rate of 7.60% (the "2007 Notes"). The issue price of the 2007 Notes was 99.965%. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2007 Notes prior to issuance. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2007 Notes as an adjustment to the interest expense. The 2007 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On May 13, 1997, the Company, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on May 15, 2027, and bears a coupon interest rate of 7.15% (the "2027 Notes"). The issue price of the 2027 Notes was 99.854%. The 2027 Notes are redeemable, at the option of the holders thereof, on May 15, 2002. Interest is paid semi-annually in arrears on May 15 and November 15. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2027 Notes prior to issuance. The debt issue discount and the settlement amount of the interest rate protection agreement are being amortized over the life of the 2027 Notes as an adjustment to interest expense. The 2027 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On May 22, 1997, the Company, through the Operating Partnership, issued $100,000 of senior unsecured debt which matures on May 15, 2011 and bears a coupon interest rate of 7.375% (the "2011 Notes"). The issue price of the 2011 Notes was 99.348%. Interest is paid semi-annually in arrears on May 15 and November 15. The 2011 Notes are redeemable, at the option of the holder thereof, on May 15, 2004 (the "Put Option"). The Company received approximately $1,781 of proceeds from the holder of the 2011 Notes as consideration for the Put Option. The Company amortizes the Put Option amount over the life of the Put Option as an adjustment to interest expense. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2011 Notes prior to issuance. The debt issue discount and the settlement amount of the interest rate protection F-13
58 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED agreement are being amortized over the life of the 2011 Notes as an adjustment to interest expense. The 2011 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On November 20, 1997, the Company, through the Operating Partnership, issued $50,000 of senior unsecured debt which matures on November 21, 2005 and bears a coupon interest rate of 6.90% (the "2005 Notes"). The issue price of the 2005 Notes was 100%. Interest is paid semi-annually in arrears on May 21 and November 21. The 2005 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On November 24, 1997, the Company, through the Operating Partnership, entered into a $25,000 unsecured loan (the "November 1997 Unsecured Loan"). The November 1997 Unsecured Loan bore interest at LIBOR plus .80% and had a scheduled maturity date of December 31, 1997. The November 1997 Unsecured Loan was paid off and retired on December 5, 1997 (see Note 9). On December 8, 1997, the Company, through the Operating Partnership, issued $150,000 of senior unsecured debt which matures on December 1, 2006 and bears a coupon interest rate of 7.00% (the "2006 Notes"). The issue price of the 2006 Notes was 100%. Interest is paid semi-annually in arrears on June 1 and December 1. The Company also entered into an interest rate protection agreement which was used to fix the interest rate on the 2006 Notes prior to issuance. The settlement amount of the interest rate protection agreement is being amortized over the life of the 2006 Notes as an adjustment to interest expense. The 2006 Notes contain certain covenants including limitation on incurrence of debt and debt service coverage. On December 8, 1997, the Company, through the Operating Partnership, issued $100,000 of unsecured debt which matures on December 1, 2017 and bears a coupon interest rate of 7.50% (the "2017 Notes"). The issue price of the 2017 Notes was 99.808%. Interest is paid semi-annually in arrears on June 1 and December 1. The Operating Partnership will amortize the debt issue discount over the life of the 2017 Notes as an adjustment to interest expense. The 2017 Notes may be redeemed at any time at the option of the Company, in whole or in part, at a redemption price equal to the sum of the principal amount of the 2017 Notes being redeemed plus accrued interest thereon to the redemption date and any make-whole amount, as defined in the Prospectus Supplement relating to the 2017 Notes. Acquisition Facilities: In connection with the Initial Offering, the Company, through the Operating Partnership, entered into a $100,000 collateralized revolving credit facility (the "1994 Acquisition Facility"). During the quarter ended June 30, 1995, the capacity of the 1994 Acquisition Facility was increased to $150,000. Borrowings under the 1994 Acquisition Facility bore interest at a floating rate equal to LIBOR plus 2.00% or a "Corporate Base Rate" plus .50%, at the Company's election. Effective July 12, 1996, the lenders reduced the interest rate to LIBOR plus 1.75%. In December 1996, the Company terminated the 1994 Acquisition Facility (see Note 9) and entered into a $200,000 unsecured revolving credit facility (the "1996 Unsecured Acquisition Facility") which initially bore interest at LIBOR plus 1.10% or a "Corporate Base Rate" plus .25% and provided for interest only payments until the maturity date. In December 1997, the Company terminated the 1996 Unsecured Acquisition Facility (see Note 9) and entered into a $300,000 unsecured revolving credit facility (the "1997 Unsecured Acquisition Facility") which initially bears interest at LIBOR plus .80% or a "Corporate Base Rate" at the Company's election, and provides for interest only payments until maturity. The Company may borrow under the facility to finance the acquisition of additional properties and for other corporate purposes, including to obtain additional working capital. The 1997 Unsecured Acquisition Facility contains certain financial covenants relating to debt service coverage, market value net worth, dividend payout ratio and total funded indebtedness. F-14
59 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED In December 1995, the Company, through the Operating Partnership, entered into a $24,219 collateralized revolving credit facility (the "1995 Credit Line"). The 1995 Credit Line bore interest at a floating rate of LIBOR plus 2.45%. The Company terminated the 1995 Credit Line in February 1996 (See Note 9). In May 1996, the Company, through the Operating Partnership, entered into a $10,000 collateralized revolving credit facility (the "1996 Credit Line"). The 1996 Credit Line bore interest at a floating rate from LIBOR plus 2.45% to LIBOR plus 2.75%, depending on the term of the interest rate option. The Company terminated the 1995 Credit Line in November 1996 (See Note 9). In September 1996, the Company, through the Operating Partnership, entered into a $40,000 revolving credit facility ("1996 Acquisition Facility"). Borrowings under the 1996 Acquisition Facility bore interest at a floating rate equal to LIBOR plus 2.00% or a "Corporate Base Rate" plus .50%, at the Company's election. The Company terminated the 1996 Acquisition Facility in November 1996 (see Note 9). Promissory Notes Payable: On September 30, 1996, the Company, through the Operating Partnership, entered into a $6,489 promissory note and a $3,430 promissory note (collectively referred to as "Promissory Notes") as partial consideration for the purchase of two properties in Columbus, Ohio. Both Promissory Notes bore interest at 8.00%. The Promissory Notes were paid off and retired on January 6, 1997. F-15
60 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED The following table discloses certain information regarding the Company's mortgage loans, senior unsecured debt, acquisition facility and promissory notes payable: <TABLE> <CAPTION> OUTSTANDING BALANCE ACCRUED INTEREST INTEREST AT PAYABLE AT RATE AT --------------------- --------------------- ---------- DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER MATURITY 31, 1997 31, 1996 31, 1997 31, 1996 31, 1997 DATE --------- --------- --------- --------- ---------- ---------- MORTGAGE LOANS PAYABLE <S> <C> <C> <C> <C> <C> <C> 1994 Mortgage Loan ..... $ -- $ 300,000 $ -- $ 1,750 N/A N/A --------- --------- --------- --------- 1995 Mortgage Loan ..... 40,000 40,000 168 168 7.22% 1/11/26 Harrisburg Mortgage Loan -- 6,504 -- 39 N/A N/A CIGNA Loan ............. 35,813 36,363 -- -- 7.50% 4/01/03 Assumed Loans .......... 8,950 9,215 -- -- 9.25% 1/01/13 LB Mortgage Loan II .... 705 -- -- -- (1) (1) Acquisition Mortgage Loan I ............... 4,135 -- 29 -- 8.50% 8/01/08 Acquisition Mortgage Loan II .............. 7,997 -- 52 -- 7.75% 4/01/06 Acquisition Mortgage Loan III ............. 3,598 -- 27 -- 8.875% 6/01/03 --------- --------- --------- --------- Total .................. $ 101,198 $ 392,082 $ 276 $ 1,957 ========= ========= ========= ========= DEFEASED MORTGAGE LOAN 1994 Defeased Mortgage Loan (formerly definedas the 1994 Mortgage Loan . $ 300,000 -- 1,831 -- 7.09% 1/02/98 ========= ========= ========= ========= SENIOR UNSECURED DEBT 2005 Notes ............. $ 50,000 $ -- $ 393 $ -- 6.90% 11/21/05 2006 Notes ............. 150,000 -- 671 -- 7.00% 12/01/06 2007 Notes ............. 149,951(2) -- 1,457 -- 7.60% 5/15/07 2011 Notes ............. 99,377(2) -- 942 -- 7.375% 5/15/11(3) 2017 Notes ............. 99,809(2) -- 479 -- 7.50% 12/01/17(4) 2027 Notes ............. 99,857(2) -- 914 -- 7.15% 5/15/27(5) --------- --------- --------- --------- Total .................. $ 648,994 $ -- $ 4,856 $ -- ========= ========= ========= ========= ACQUISITION FACILITY PAYABLE 1996 Unsecured Acquisition Facility .. $ -- $ 4,400 $ -- $ 3 N/A N/A 1997 Unsecured Acquisition Facility .. 129,400 -- 297 -- 6.77% 4/30/01 --------- --------- --------- --------- Total .................. $ 129,400 $ 4,400 $ 297 $ 3 ========= ========= ========= ========= PROMISSORY NOTES PAYABLE Promissory Notes ....... $ -- $ 9,919 $ -- $ 68 N/A N/A ========= ========= ========= ========= </TABLE> (1) The LB Mortgage Loan II is interest free until February 1998 at which time the mortgage loan bears interest at 8%. The loan matures as described above. (2) The 2007 Notes, 2011 Notes, 2017 Notes and 2027 Notes are net of unamortized discounts of $49, $623, $191 and $143, respectively. (3) The 2011 Notes are redeemable at the option of the holder thereof, on May 15, 2004. (4) The 2017 notes are redeemable at the option of the Company at any time based upon a predetermined formula. (5) The 2027 Notes are redeemable at the option of the holders thereof, on May 15, 2002. F-16
61 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED Fair Value: At December 31, 1996 the fair value of the Company's mortgage loans payable, acquisition facility payable and promissory notes payable were not materially different from their carrying values. The value of the interest rate protection agreements was approximately $7,959. At December 31, 1997, the fair value of the Company's mortgage loans payable, senior unsecured debt, acquisition facility payable and interest rate protection agreements were as follows: <TABLE> <CAPTION> Carrying Fair Amount Value ----------- ----------- <S> <C> <C> Mortgage Loans Payable . $ 101,198 $ 105,838 Defeased Mortgage Loan Payable ................ 300,000 300,000 Senior Unsecured Debt .. 648,994 666,954 Acquisition Facility ... 129,400 129,400 Payable ................ Interest Rate Protection Agreements ............. -- (4,974) ----------- ----------- Total .................. $ 1,179,592 $ 1,197,218 =========== =========== </TABLE> The following is a schedule of maturities of the mortgage loans, senior unsecured debt and acquisition facility payable for the next five years ending December 31, and thereafter: <TABLE> <CAPTION> Amount ----------- <S> <C> 1998 $ 301,843 1999 2,036 2000 2,203 2001 131,764 2002 2,559 Thereafter 739,488 ---------- Total $1,179,893 ========== </TABLE> The above table presents the 1994 Defeased Mortgage Loan maturing in 1998 due to its prepayment on January 2, 1998. Interest Rate Protection Agreements: In conjunction with obtaining the 1994 Mortgage Loan, the Company, through the Financing Partnership, purchased an interest rate protection agreement (the "1994 Interest Rate Protection Agreement") which effectively limited the interest rate during the initial five-year term of the 1994 Mortgage Loan to 7.20% per annum. Prior to the subsequent replacement of the 1994 Interest Rate Protection Agreement, its cost of $18,450 had been capitalized and was being amortized over the five-year term of the agreement. Effective July 1, 1995, the Company replaced the 1994 Interest Rate Protection Agreement with new interest rate protection agreements and entered into interest rate swap agreements (together, the "1995 Interest Rate Protection Agreements") with a notional value of $300,000, which together effectively fixed the annual interest rate on the 1994 Mortgage Loan at 6.97% for six years through June 30, 2001. As a result of the replacement of the interest rate protection agreement, the Company incurred a one-time loss of $6,400. The costs of the 1995 Interest Rate Protection Agreements had been capitalized and were being amortized over the respective terms of the 1995 Interest Rate Protection Agreements. On May 16, 1997, the F-17
62 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 4. MORTGAGE LOANS, SENIOR UNSECURED DEBT, ACQUISITION FACILITIES, PROMISSORY NOTES PAYABLE AND INTEREST RATE PROTECTION AGREEMENTS, CONTINUED Company sold the 1995 Interest Rate Protection Agreements and entered into a new interest rate protection agreement (the "1997 Interest Rate Protection Agreement") at a cost of $150 with a notional value of $300,000 which expired at the end of 1997. The 1997 Interest Rate Protection Agreement effectively limited the interest rate on the 1994 Defeased Mortgage Loan to 7.20% until December 31, 1997. The cost of the 1997 Interest Rate Protection Agreement had been capitalized and was being amortized on a straight-line basis over the remaining life of the 1997 Interest Rate Protection Agreement. Accumulated amortization on the interest rate protection agreements was $223 as of December 31, 1996. As of December 31, 1997 the interest rate protection agreements were fully amortized and written off. The Company, from time to time, enters into interest rate protection agreements which are used to lock into a fixed interest rate on anticipated offerings of senior unsecured debt. At December 31, 1997, the following interest rate protection agreements were outstanding: <TABLE> <CAPTION> Notional Value Interest Rate Valuation Basis Settlement Date - -------------- ------------- ---------------- --------------- <S> <C> <C> <C> $100,000 6.037% 10-Year Treasury July 1, 1998 $100,000 6.317% 30-Year Treasury July 1, 1998 $100,000 5.999% 30-Year Treasury January 4, 1999 </TABLE> 5. STOCKHOLDERS' EQUITY Common Stock: On February 2, 1996, the Company issued 5,175,000 shares of $.01 par value common stock (the "February 1996 Equity Offering") inclusive of the underwriters' over-allotment option. The price per share in the February 1996 Equity Offering was $22, resulting in gross offering proceeds of $113,850. Proceeds to the Company, net of underwriters' discount and total offering expenses, were approximately $106,343. On October 25, 1996, the Company issued 5,750,000 shares of $.01 par value common stock (the "October 1996 Equity Offering") inclusive of the underwriters' over-allotment option. The price per share in the October 1996 Equity Offering was $25.50, resulting in gross offering proceeds of $146,625. Proceeds to the Company, net of underwriters' discount and total offering expenses, were approximately $137,697. On September 16, 1997, the Company issued 637,440 shares of $.01 par value common stock (the "September 1997 Equity Offering"). The price per share in the September 1997 Equity Offering was $31.38, resulting in gross offering proceeds of $20,000. Proceeds to the Company, net of underwriters' discount and total offering expenses, were approximately $18,900. On October 15, 1997, the Company issued 5,400,000 shares of $.01 par value common stock (the "October 1997 Equity Offering"). The price per share was $33.40 resulting in gross offering proceeds of $180,360. Proceeds to the Company, net of underwritings' discount and the total offering expenses, were approximately $176,556. F-18
63 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 5. STOCKHOLDERS' EQUITY, CONTINUED Preferred Stock: In 1995, the Company issued 1,650,000 shares of 9.5%, $.01 par value, Series A Cumulative Preferred Stock (the "Series A Preferred Stock") at an initial offering price of $25 per share. Dividends on the Series A Preferred Stock are cumulative from the date of initial issuance and are payable quarterly in arrears. The payment of dividends and amounts upon liquidation, dissolution or winding-up ranks senior to the payments on the Company's $.01 par value common stock ("Common Stock"). The Series A Preferred Stock is not redeemable prior to November 17, 2000. On or after November 17, 2000, the Series A Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at $25.00 per share, or $41,250 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series A Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. The payment of dividends on, and payments on liquidation or redemption of, the Series A Preferred Stock is guaranteed by the Securities Partnership (the "Guarantor") pursuant to a Guarantee and Payment Agreement (the "Guarantee Agreement"). The Series A Preferred Stock is the only class of securities of the Company which has the benefit of such guarantee. To the extent the Company fails to make any payment of dividend or pay any portion of the liquidation preference on or the redemption price of any shares of Series A Preferred Stock, the Guarantor will be obligated to pay an amount to each holder of Series A Preferred Stock equal to any such shortfall. On May 14, 1997, the Company issued 4,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 8 3/4%, $.01 par value, Series B Cumulative Preferred Stock (the "Series B Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series B Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series B Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock and Series C Preferred Stock (hereinafter defined). The Series B Preferred Stock is not redeemable prior to May 14, 2002. On or after May 14, 2002, the Series B Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $100,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series B Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. On June 6, 1997, the Company issued 2,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 8 5/8%, $.01 par value, Series C Cumulative Preferred Stock (the "Series C Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series C Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series C Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock and Series B Preferred Stock. The Series C Preferred Stock is not redeemable prior to June 6, 2007. On or after June 6, 2007, the Series C Preferred Stock are redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $50,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series C Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. F-19
64 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 5. STOCKHOLDERS' EQUITY, CONTINUED The following table summarizes certain information regarding the Company's preferred stock: <TABLE> <CAPTION> Stated Value at -------------------------- Initial Optional December 31, December 31, Dividend Redemption 1997 1996 Rate Date ------------ ------------ -------- ---------- <S> <C> <C> <C> <C> Series A Preferred Stock $ 41,250 $ 41,250 9.5% 11/17/00 Series B Preferred Stock 100,000 -- 8.75% 5/14/02 Series C Preferred Stock 50,000 -- 8.625% 6/06/07 -------- -------- Total $191,250 $ 41,250 ======== ======== </TABLE> Shareholders' Rights Plan: On September 4, 1997, the Board of Directors of the Company declared a dividend distribution of one Preferred Share Purchase Right ("Right") for each outstanding share of common stock, par value $.01 per share, of the Company (the "Common Stock"). The dividend distribution was made on October 20, 1997 to stockholders of record as of the close of business on October 19, 1997. In addition, a Right will attach to each share of Common Stock issued in the future. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Junior Participating Preferred Stock (the "Junior Preferred Stock"), at a price of $125 per one one-hundredth of a share (the "Purchase Price"), subject to adjustment. The Rights become exercisable only if a person or group of affiliated or associated persons (an "Acquiring Person") acquires, or obtains the right to acquire, beneficial ownership of Common Stock or other voting securities ("Voting Stock") that have 15% or more of the voting power of the outstanding shares of Voting Stock, or if an Acquiring Person commences or makes an announcement of an intention to commence a tender offer or exchange offer to acquire beneficial ownership of Voting Stock that have 15% or more of the voting power of the outstanding shares of Voting Stock. The Rights will expire on October 19, 2007, unless redeemed earlier by the Company at $.001 per Right, or exchanged by the Company at an exchange ratio of one share of Common Stock per Right. In the event that a person becomes an Acquiring Person, each holder of a Right, other than the Acquiring Person, is entitled to receive, upon exercise, (1) Common Stock having a value equal to two times the Purchase Price of the Right or (2) common stock of the acquiring company having a value equal to two times the Purchase Price of the Right. The Junior Preferred Stock ranks junior to all other series of the Company's preferred stock with respect to payment of dividends and as to distributions of assets in liquidation. Each share of Junior Preferred Stock has a quarterly dividend rate per share equal to the greater of $1.00 or 100 times the per share amount of any dividend (other than a dividend payable in shares of Common Stock or a subdivision of the Common Stock) declared on the Common Stock, subject to certain adjustments. In the event of liquidation, the holder of the Junior Preferred Stock is entitled to receive a preferred liquidation payment per share of $1.00 (plus accrued and unpaid dividends) or, if greater, an amount equal to 100 times the payment to be made per share of Common Stock, subject to certain adjustments. F-20
65 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 5. STOCKHOLDERS' EQUITY, CONTINUED Dividends/Distributions: The following table summarizes dividends/distributions for the past two years: <TABLE> <CAPTION> Common Stock/Operating Partnership Units - ---------------------------------------- Dividend/ Distribution Total per Share/ Dividend/ Record Date Payable Date Unit Distribution -------------------- ----------------------- ------------- --------------- <S> <C> <C> <C> <C> First Quarter 1996 March 29, 1996 April 22, 1996 $.48750 $12,477 Second Quarter 1996 June 28, 1996 July 22, 1996 $.48750 $12,759 Third Quarter 1996 September 27, 1996 October 21, 1996 $.48750 $12,801 Fourth Quarter 1996 December 31, 1996 January 20, 1997 $.50500 $16,281 First Quarter 1997 March 31, 1997 April 21, 1997 $.50500 $16,904 Second Quarter 1997 June 30, 1997 July 21, 1997 $.50500 $17,222 Third Quarter 1997 September 30, 1997 October 20, 1997 $.50500 $17,703 Fourth Quarter 1997 December 31, 1997 January 20, 1998 $.53000 $22,010 Series A Preferred Stock - ------------------------ Dividend Record Date Payable Date per Share Total Dividend -------------------- ----------------------- ------------- --------------- First Quarter 1996 March 15, 1996 March 31, 1996 $ .59375 $ 980 Second Quarter 1996 June 14, 1996 June 30, 1996 $ .59375 $ 980 Third Quarter 1996 September 16, 1996 September 30, 1996 $ .59375 $ 980 Fourth Quarter 1996 December 13, 1996 December 31, 1996 $ .59375 $ 980 First Quarter 1997 March 14, 1997 March 31, 1997 $ .59375 $ 980 Second Quarter 1997 June 13, 1997 June 30, 1997 $ .59375 $ 980 Third Quarter 1997 September 15, 1997 September 30, 1997 $ .59375 $ 980 Fourth Quarter 1997 December 15, 1997 December 31, 1997 $ .59375 $ 980 Series B Preferred Stock - ------------------------ Dividend Record Date Payable Date per Share Total Dividend -------------------- ----------------------- ------------- --------------- Second Quarter 1997 June 13, 1997 June 30, 1997 $ 27.95000 $ 1,119 Third Quarter 1997 September 15, 1997 September 30, 1997 $ 54.68750 $ 2,188 Fourth Quarter 1997 December 15, 1997 December 31, 1997 $ 54.68750 $ 2,188 Series C Preferred Stock - ------------------------ Dividend Record Date Payable Date per Share Total Dividend -------------------- ----------------------- ------------- --------------- Third Quarter 1997 September 15, 1997 September 30, 1997 $ 68.12300(1) $ 1,363 Fourth Quarter 1997 December 15, 1997 December 31, 1997 $ 53.90600 $ 1,078 </TABLE> (1) $14.217 of this dividend relates to the second quarter of 1997. F-21
66 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 6. ACQUISITION AND DEVELOPMENT OF REAL ESTATE In 1997, the Company acquired 389 industrial properties comprising approximately 22.9 million square feet (unaudited) of GLA for a total purchase price of approximately $862,350 and completed the development of ten properties and two expansions comprising approximately 1.7 million square feet (unaudited) of GLA at a cost of approximately $50,246 . 7. SALES OF REAL ESTATE In 1996, the Company sold six properties. Gross proceeds from these sales totaled approximately $14,972. The gain on sales totaled approximately $4,344. In 1997, the Company sold ten in-service properties, one property held for redevelopment and several parcels of land. Gross proceeds from these sales totaled approximately $33,658. The gain on sales totaled approximately $5,003. 8. DISPOSITION OF INTEREST RATE PROTECTION AGREEMENT In July 1995, the Company sold the 1994 Interest Rate Protection Agreement for approximately $12,852. The loss on disposition of the 1994 Interest Rate Protection Agreement totaled approximately $6,410. In May 1997, the Company sold the 1995 Interest Rate Protection Agreements for approximately $9,950. The gain on disposition of the 1995 Interest Rate Protection Agreement totaled approximately $1,430. 9. EXTRAORDINARY ITEMS In 1996, the Company terminated the 1994 Acquisition Facility, the 1995 Credit Line, the 1996 Credit Line and the 1996 Acquisition Facility before their contractual maturity date. As a result of these early retirements, the Company recorded an extraordinary loss of $2,273 comprised of a prepayment fee, the write-off of unamortized deferred financing fees, legal costs and other expenses. In 1997, the Company terminated the Harrisburg Mortgage Loan, the LB Mortgage Loan I, the Defeasance Loan and the 1996 Unsecured Acquisition Facility before their contractual maturity date. Also, the Company entered into a commitment to pay down and retire the 1994 Defeased Mortgage Loan on January 2, 1998. As a result of the early retirements and the commitment for early retirement of the 1994 Defeased Mortgage Loan, the Company recorded an extraordinary loss of $14,124 comprised of prepayment fees, the write off of unamortized deferred financing fees, legal costs and other expenses. F-22
67 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 10. EARNINGS PER SHARE In February 1997, the Financial Accounting Standards Board (the "FASB") issued Statement of Financial Accounting Standards No. 128, "Earnings per Share" ("FAS 128"), effective for financial statements ending after December 15, 1997. As required by this statement, the Company adopted the new standard for computing and presenting earnings per share (EPS) for the year ended December 31, 1997, and for all prior-periods' EPS data presented herein. The outstanding Operating Partnership units have been excluded from the diluted earnings per share calculation as there would be no effect on the amounts since the minority interests' share of income would also be added back to net income. The computation of basic and diluted EPS, as prescribed by FAS 128, is presented below: <TABLE> <CAPTION> Year Ended Year Ended Year Ended December 31, December 31, December 31, 1997 1996 1995 ------------ ------------ ------------ <S> <C> <C> <C> Numerator: Income Before Extraordinary Loss ............ $ 66,070 $ 37,937 $ 12,349 Less: Preferred Stock Dividends ............ (11,856) (3,919) (468) ------------ ------------ ------------ Net Income Available to Common Stockholders Before Extraordinary Loss- For Basic and Diluted EPS .................. 54,214 34,018 11,881 Extraordinary Loss .......................... (14,124) (2,273) -- ------------ ------------ ------------ Net Income Available to Common Stockholders- For Basic and Diluted EPS .... $ 40,090 $ 31,745 $ 11,881 ============ ============ ============ Denominator: Weighted Average Common Shares Outstanding at December 31, 1997, 1996 and 1995, respectively- Basic ........................ 31,508,240 24,755,953 18,889,013 Effect of Dilutive Securities: Employee Common Stock Options .............. 305,686 86,447 -- ------------ ------------ ------------ Weighted Average Common Shares Outstanding at December 31, 1997, 1996 and 1995, respectively- Diluted ...................... 31,813,926 24,842,400 18,889,013 ============ ============ ============ Basic EPS: Net Income Available to Common Stockholders Before Extraordinary Loss ..... $ 1.72 $ 1.37 $ .63 ============ ============ ============ Extraordinary Loss .......................... $ (.45) $ (.09) $ -- ============ ============ ============ Net Income Available to Common Stockholders . $ 1.27 $ 1.28 $ .63 ============ ============ ============ Diluted EPS: Net Income Available to Common Stockholders Before Extraordinary Loss ..... $ 1.70 $ 1.37 $ .63 ============ ============ ============ Extraordinary Loss .......................... $ (.44) $ (.09) $ -- ============ ============ ============ Net Income Available to Common Stockholders . $ 1.26 $ 1.28 $ .63 ============ ============ ============ </TABLE> F-23
68 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 11. FUTURE RENTAL REVENUES The Company's properties are leased to tenants under net and semi-net operating leases. Minimum lease payments receivable, excluding tenant reimbursements of expenses, under noncancelable operating leases in effect as of December 31, 1997 are approximately as follows: <TABLE> <S> <C> 1998 $ 229,229 1999 190,315 2000 145,075 2001 108,223 2002 78,566 Thereafter 187,289 ------------- Total $ 938,697 ============== </TABLE> 12. EMPLOYEE BENEFIT PLANS The Company maintains two stock incentive plans (the "Stock Incentive Plans") which are administered by the Compensation Committee of the Board of Directors. Only officers and other employees of the Company and its affiliates generally are eligible to participate in the Stock Incentive Plans. However, Independent Directors of the Company receive automatic annual grants of options to purchase 10,000 shares at a per share exercise price equal to the fair market value of a share on the date of grant. The Stock Incentive Plans authorize (i) the grant of stock options that qualify as incentive stock options under Section 422 of the Code, (ii) the grant of stock options that do not so qualify, (iii) restricted stock awards, (iv) performance share awards and (v) dividend equivalent rights. The exercise price of stock options will be determined by the Compensation Committee, but may not be less than 100% of the fair market value of the shares on the date of grant. Special provisions apply to awards granted under the Stock Incentive Plans in the event of a change in control in the Company. As of January 30, 1998, the Company has authorized 7.7 million shares for issuance under the Stock Incentive Plans, of which, 1.7 million shares are available for future grants. The outstanding stock options generally vest over one to two year periods and have lives of ten years. Stock option transactions are summarized as follows: <TABLE> <CAPTION> Weighted Average Exercise Exercise Price Price Per Share per Share Share -------------- ------------------ --------------- <S> <C> <C> <C> Granted at Initial Offering .... 637,500 $ 23.50 $ 23.50 -------------- Outstanding at December 31, 1994 637,500 $ 23.50 $ 23.50 Granted ..................... 274,500 $ 19.98 $18.25 - $20.25 Expired or Terminated ....... (54,000) $ 23.50 $ 23.50 -------------- Outstanding at December 31, 1995 858,000 $ 22.37 $18.25 - $23.50 Granted ..................... 263,500 $ 22.94 $22.75 - $25.63 Exercised ................... (16,000) $ 23.50 $ 23.50 Expired or Terminated ....... (12,000) $ 23.50 $ 23.50 -------------- Outstanding at December 31, 1996 1,093,500 $ 22.49 $18.25 - $25.63 Granted ..................... 538,000 $ 30.32 $28.50 - $30.375 Exercised or Converted....... (300,000) $ 22.50 $18.25 - $23.50 -------------- Outstanding at December 31, 1997 1,331,500 $ 25.67 $18.25 - $30.375 ============== </TABLE> F-24
69 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 12. EMPLOYEE BENEFIT PLANS, CONTINUED The following table summarizes currently outstanding and exercisable options as of December 31, 1997: <TABLE> <CAPTION> Options Outstanding Options Exercisable ---------------------------------------------------- -------------------------------- Weighted Average Weighted Weighted Number Remaining Average Number Average Range of Exercise Price Outstanding Contractual Exercise Exercisable Exercise Life Price Price - -------------------------- ------------- --------------- -------------- -------------- -------------- <S> <C> <C> <C> <C> <C> $18.25-$25.63 793,500 7.28 $22.52 793,500 $22.52 $28.50-$30.50 538,000 9.37 $30.32 229,000 $30.375 </TABLE> The Company applies Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees", in accounting for its Stock Incentive Plans. Accordingly, no compensation expense has been recognized in the consolidated statements of operations. Had compensation cost for the Company's Stock Incentive Plans been determined based upon the fair value at the grant date for awards under the Stock Incentive Plans consistent with the methodology prescribed under Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation", net income and earnings per share would have been the pro forma amounts indicated in the table below: <TABLE> <CAPTION> For the Year Ended -------------------------------------- 1997 1996 1995 --------- --------- ---------- <S> <C> <C> <C> Net Income Available to Common Stockholders- as reported .................. $ 40,090 $ 31,745 $ 11,881 Net Income Available to Common Stockholders- pro forma .................... $ 38,810 $ 31,239 $ 11,881 Net Income Available to Common Stockholders per Share- as reported- Basic . $ 1.27 $ 1.28 $ .63 Net Income Available to Common Stockholders per Share- pro forma- Basic ... $ 1.23 $ 1.26 $ .63 Net Income Available to Common Stockholders per Share- as reported- Diluted $ 1.26 $ 1.28 $ .63 Net Income Available to Common Stockholders per Share- pro forma- Diluted . $ 1.22 $ 1.26 $ .63 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Expected dividend yield ................................................ 8.15% 7.16% 7.16% Expected stock price volatility ........................................ 20.01% 18.12% 18.12% Risk-free interest rate ................................................ 6.48% 6.81% 6.05% Expected life of options ............................................... 3.78 7.37 5.51 </TABLE> The weighted average fair value of options granted during 1997, 1996 and 1995 is $2.72, $2.43 and $1.84 per option, respectively. In September 1994, the Board of Directors approved and the Company adopted a 401(k)/Profit Sharing Plan. Under the Company's 401(k)/Profit Sharing Plan, all eligible employees may participate by making voluntary contributions. The Company may make, but is not required to make, matching contributions. For the years ended December 31, 1996 and 1995, the Company did not make any matching contributions. For the year ended December 31, 1997, the Company made a matching contribution of approximately $108. In March 1996, the Board of Directors approved and the Company adopted a Deferred Income Plan (the "Plan"). Under the Plan, 194,164 unit awards and 138,500 unit awards were granted for the years ended December 31, 1997 and 1996 respectively, providing the recipients with deferred income benefits which vest in three equal annual installments. The expense related to these deferred income benefits is included in general and administrative expenses in the consolidated statements of operations. During 1997, the Company awarded 59,946 shares of restricted Common Stock to certain employees, 1,274 of restricted Common Stock to certain Directors and certain other employees of the Company converted certain employee stock options to 54,936 shares of restricted Common Stock. These restricted shares of Common Stock had F-25
70 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 12. EMPLOYEE BENEFIT PLANS, CONTINUED a fair value of $3,654 on the date of grant. The restricted Common Stock vests over a period from two to ten years. Compensation expense will be charged to earnings over the vesting period. 13. RELATED PARTY TRANSACTIONS The Company often obtains title insurance coverage for its properties from an entity for which an independent Director of the Company became the President, Chief Executive Officer and a Director in 1996. On November 19, 1997, the Company exercised an option that was granted on March 19, 1996 to purchase a 100,000 square foot (unaudited) bulk warehouse property located in Indianapolis, Indiana for approximately $3,338. The property was purchased from a partnership in which one of the Company's Senior Regional Directors was a limited partner. From time to time, the Company utilizes real estate brokerage services from CB Commercial for which a relative of one of the Company's senior executive officers is an employee. 14. SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS Supplemental disclosure of cash flow information: <TABLE> <CAPTION> Year Ended Year Ended Year Ended December 31, December 31, December 31, 1997 1996 1995 --------- --------- --------- <S> <C> <C> <C> Interest paid, net of capitalized interest ........ $ 44,627 $ 29,309 $ 28,248 ========= ========= ========= Interest capitalized ........... $ 1,151 $ 501 $ 324 ========= ========= ========= Supplemental schedule of noncash investing and financing activities: Distribution payable on common stock/units ......... $ 22,010 $ 16,281 $ 9,954 ========= ========= ========= Dividend payable on preferred stock ............ $ -- $ -- $ 468 ========= ========= ========= Exchange of units for common shares: Minority interest .......... $ (3,395) $ (943) $ (1,005) Common stock ............... 2 -- 1 Additional paid in capital . 3,393 943 1,004 --------- --------- --------- $ -- $ -- $ -- ========= ========= ========= Sale of interest rate protection agreement ....... $ -- $ -- $ (12,852) Purchase of interest rate protection and swap agreements ................. -- -- 12,852 --------- --------- --------- $ -- $ -- $ -- ========= ========= ========= In conjunction with the property acquisitions, the following assets and liabilities were assumed: Purchase of real estate ........ $ 862,350 $ 252,991 $ 63,855 Mortgage loans ................. (20,272) (9,417) -- Promissory notes ............... -- (9,919) -- Operating partnership units .... (115,230) (23,863) -- Accounts receivable ............ -- -- 153 Accounts payable and accrued expenses ........... (11,414) (2,626) (1,115) --------- --------- --------- Acquisition of real estate ..... $ 715,434 $ 207,166 $ 62,893 ========= ========= ========= </TABLE> F-26
71 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 15. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company is involved in legal actions arising from the ownership of its properties. In management's opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a materially adverse effect on the consolidated financial position, operations or liquidity of the Company. Thirty-four properties have leases granting the tenants options to purchase the property. Such options are exercisable at various times and at appraised fair market value or at a fixed purchase price generally in excess of the Company's net book value of the asset. The Company has no notice of any exercise of any tenant purchase option. The Company has committed to the construction of 12 industrial properties totaling approximately 2.5 million square feet (unaudited). The estimated total construction costs are approximately $90.4 million (unaudited). These developments are expected to be funded with cash flow from operations as well as borrowings under the 1997 Unsecured Acquisition Facility. At December 31, 1997, the Company had two letters of credit outstanding in the amounts of $980 and $329. The $980 letter of credit was required under the original issuance of the Series A Preferred Stock to guarantee the payment of one quarter's dividend on the Series A Preferred Stock. The Guarantee Agent of the Series A Preferred Stock is the beneficiary of this letter of credit which expires on June 29, 1998. The $329 letter of credit is pledged to a municipality to guarantee the completion of certain site improvements at one of the Company's property developments. It expires on August 31, 1998. 16. SUBSEQUENT EVENTS (UNAUDITED) During the period January 1, 1998 through March 16, 1998, the Company purchased 56 industrial properties containing an aggregate of 2.9 million square feet of GLA for approximately $103,441, or $36.20 per square foot. The aggregate purchase price consisted of approximately $101,470 million in cash and Operating Partnership units valued at approximately $1,971. On January 2, 1998, the Company entered into an interest rate protection agreement to lock into a fixed interest rate on an anticipated offering of senior unsecured debt. The interest rate protection agreement had a notional value of $50,000, an interest rate of 5.937% and a settlement date of October 2, 1998. This interest rate protection agreement's value is based on the 30-year Treasury. On January 27, 1998, the Company registered approximately $789,165 of common stock, preferred stock and depositary shares and $400,000 of debt securities. On February 4, 1998, the Company issued 5,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 7.95%, $.01 par value, Series D Cumulative Preferred Stock (the "Series D Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series D Preferred Stock represented by the Depositary Shares are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the dividends and amounts upon liquidation, dissolution or winding up, the Series D Preferred Stock ranks senior to payments on the Company's $.01 par value common stock and pari passu with the Company's Series A, B and C Preferred Stock. The Series D Preferred Stock is not redeemable prior to February 4, 2003. On or after February 4, 2003, the Series D Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $125,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series D Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. F-27
72 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 16. SUBSEQUENT EVENTS (UNAUDITED), CONTINUED On March 18, 1998, the Company issued 3,000,000 Depositary Shares, each representing 1/100th of a share of the Company's 7.90%, $.01 par value, Series E Cumulative Preferred Stock (the "Series E Preferred Stock"), at an initial offering price of $25 per Depositary Share. Dividends on the Series E Preferred Stock, represented by the Depositary Shares, are cumulative from the date of initial issuance and are payable quarterly in arrears. With respect to the payment of dividends and amounts upon liquidation, dissolution or winding up, the Series E Preferred Stock ranks senior to payments on the Company's Common Stock and pari passu with the Company's Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock; however, the Series A Preferred Stock has the benefit of a guarantee by First Industrial Securities, L.P. The Series E Preferred Stock is not redeemable prior to March 18, 2003. On or after March 18, 2003, the Series E Preferred Stock is redeemable for cash at the option of the Company, in whole or in part, at a redemption price equivalent to $25 per Depositary Share, or $75,000 in the aggregate, plus dividends accrued and unpaid to the redemption date. The Series E Preferred Stock has no stated maturity and is not convertible into any other securities of the Company. In March 1998, the Company declared a first quarter dividend of $.53 per share on its common stock which is payable on April 20, 1998. The Company also declared a first quarter dividend of $.59375 per share, $54.688 per share ($.54688 per depositary share), $53.906 per share ($.53906 per depositary share) and a partial period dividend of $30.365 per share ($.30365 per depositary share) on its Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively, which is payable on March 31, 1998. F-28
73 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 17. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) <TABLE> <CAPTION> YEAR ENDED DECEMBER 31, 1997 -------------------------------------------------------- FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER -------- -------- -------- -------- <S> <C> <C> <C> <C> Total Revenues ................................... $ 46,143 $ 52,648 $ 56,377 $ 68,035 Income Before Disposition of Interest Rate Protection Agreements, Gain on Sales of Properties, ...... 13,190 15,091 17,180 19,488 Minority Interest and Extraordinary Loss Disposition of Interest Rate Protection Agreements -- 1,430 -- -- Gain on Sales of Properties ...................... -- 3,999 187 817 Income Before Minority Interest and Extraordinary 13,190 20,520 17,367 20,305 Loss Minority Interest ................................ (1,356) (594) (1,552) (1,810) Income Before Extraordinary Loss ................. 11,834 19,926 15,815 18,495 Extraordinary Loss ............................... -- (12,563) -- (1,561) Net Income ....................................... 11,834 7,363 15,815 16,934 Preferred Stock Dividends ........................ (980) (2,385) (4,245) (4,246) -------- -------- -------- -------- Net Income Available to Common Stockholders ...... $ 10,854 $ 4,978 $ 11,570 $ 12,688 ======== ======== ======== ======== Earnings Per Share: Net Income Available to Common Stockholders Before Extraordinary Loss per Weighted Average Common Share Outstanding: Basic ............ $ .36 $ .58 $ .38 $ .40 ======== ======== ======== ======== Diluted .......... $ .36 $ .58 $ .38 $ .40 ======== ======== ======== ======== Net Income Available to Common Stockholders per Weighted Average Common Share Outstanding: Basic ............ $ .36 $ .17 $ .38 $ .36 ======== ======== ======== ======== Diluted .......... $ .36 $ .16 $ .38 $ .35 ======== ======== ======== ======== </TABLE> <TABLE> <CAPTION> YEAR ENDED DECEMBER 31, 1996 -------------------------------------------------------- FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER -------- -------- -------- -------- <S> <C> <C> <C> <C> Total Revenues .................................. $ 30,645 $ 34,779 $ 36,175 $ 38,456 Income Before Gain on Sales of Properties, Minority Interest ............................... 6,986 8,558 9,419 11,561 and Extraordinary Loss Gain on Sales of Properties ..................... -- 4,320 -- 24 Income Before Minority Interest and Extraordinary 6,986 12,878 9,419 11,585 Loss Minority Interest ............................... (404) (1,001) (759) (767) Income Before Extraordinary Loss ................ 6,582 11,877 8,660 10,818 Extraordinary Loss .............................. (821) -- -- (1,452) Net Income ...................................... 5,761 11,877 8,660 9,366 Preferred Stock Dividends ....................... (980) (980) (980) (979) -------- -------- -------- -------- Net Income Available to Common Stockholders ..... $ 4,781 $ 10,897 $ 7,680 $ 8,387 ======== ======== ======== ======== Earnings Per Share: Net Income Available to Common Stockholders Before Extraordinary Loss per Weighted Average Common Share Outstanding: Basic ........... $ .25 $ .45 $ .32 $ .35 ======== ======== ======== ======== Diluted ......... $ .25 $ .45 $ .32 $ .34 ======== ======== ======== ======== Net Income Available to Common Stockholders per Weighted Average Common Share Outstanding: Basic ........... $ .21 $ .45 $ .32 $ .30 ======== ======== ======== ======== Diluted ......... $ .21 $ .45 $ .32 $ .29 ======== ======== ======== ======== </TABLE> F-29
74 FIRST INDUSTRIAL REALTY TRUST, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT FOR PER SHARE DATA) 18. PRO FORMA FINANCIAL INFORMATION (UNAUDITED) The following Pro Forma Condensed Statements of Operations for the years ended December 31, 1997 and 1996 are presented as if the acquisition of 501 properties between January 1, 1996 and December 31, 1997 had been acquired on either January 1, 1996 or the lease commencement date if the property was developed and as if the February 1996 Equity Offering, the October 1996 Equity Offering, the Series B Preferred Stock Offering, the Series C Preferred Stock Offering, the September 1997 Equity Offering, the October 1997 Equity Offering, the assumption of secured debt, the issuance of the 2005 Notes, the issuance of the 2006 Notes and the issuance of the 2017 Notes had been completed on January 1, 1996. PRO FORMA CONDENSED STATEMENTS OF OPERATIONS <TABLE> <CAPTION> Year Ended -------------------------- December December 31, 1997 31, 1996 --------- --------- <S> <C> <C> Total Revenues ....................................... $ 293,404 $ 262,175 Property Expenses .................................... 80,234 76,536 General and Administrative Expense ................... 6,248 4,018 Interest Expense ..................................... 62,135 47,383 Depreciation and Other Amortization .................. 50,908 47,362 Amortization of Interest Rate Protection Agreements and Deferred Financing Costs ...................... 2,812 3,286 --------- --------- Income Before Disposition of Interest Rate Protection Agreements, Gain on Sales of Properties, Minority Interest and Extraordinary Item .......... 91,067 83,590 Disposition of Interest Rate Protection Agreements ... 1,430 -- Gain on Sales of Properties .......................... 5,003 4,344 --------- --------- Income Before Minority Interest and Extraordinary Item 97,500 87,934 Income Allocated to Minority Interest ................ (11,361) (10,074) --------- --------- Income Before Extraordinary Item ..................... 86,139 77,860 Preferred Stock Dividends ............................ (16,984) (16,984) --------- --------- Income Before Extraordinary Item Available to Common Stockholders ...................................... $ 69,155 $ 60,876 ========= ========= Income Before Extraordinary Item Available to Common Stockholders Per Weighted Average Common Share Outstanding- Basic ................................ $ 1.91 $ 1.68 ========= ========= Income Before Extraordinary Item Available to Common Stockholders Per Weighted Average Common Share Outstanding- Diluted .............................. $ 1.89 $ 1.68 ========= ========= </TABLE> F-30
75 FIRST INDUSTRIAL REALTY TRUST, INC. SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 1997 (DOLLARS IN THOUSANDS) <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> ATLANTA 4250 River Green Parkway Duluth, GA (e) $ 264 $ 1,522 3400 Corporate Parkway Duluth, GA (e) 281 1,621 3450 Corporate Parkway Duluth, GA (e) 506 2,904 3500 Corporate Parkway Duluth, GA (e) 260 1,500 3425 Corporate Parkway Duluth, GA (e) 385 2,212 1650 GA Highway 155 McDonough, GA 788 4,544 415 Industrial Park Road Cartersville, GA 544 3,140 434 Industrial Park Road Cartersville, GA 234 1,365 435 Industrial Park Road Cartersville, GA 281 1,638 14101 Industrial Park Boulevard Covington, GA 285 1,658 801-804 Blacklawn Road Conyers, GA 361 2,095 1665 Dogwood Drive Conyers, GA 635 3,662 1715 Dogwood Drive Conyers, GA 288 1,675 11235 Harland Drive Covington, GA 125 739 700 Westlake Parkway Atlanta, GA 213 1,551 800 Westlake Parkway Atlanta, GA 450 2,645 4050 Southmeadow Parkway Atlanta, GA 401 2,813 4051 Southmeadow Parkway Atlanta, GA 697 3,486 4071 Southmeadow Parkway Atlanta, GA 750 4,460 4081 Southmeadow Parkway Atlanta, GA 1,012 5,450 1875 Rockdale Industrial Blvd. Conyers, GA 386 2,264 370 Great Southwest Parkway (l) Atlanta, GA 527 2,984 955 Cobb Place Kennesaw, GA 780 4,420 6105 Boatrock Blvd Atlanta, GA 89 504 1640 Sands Place Marietta, GA 162 920 3312 N. Berkeley Lake Road Duluth, GA 2,937 16,644 3495 Bankhead Highway (l) Atlanta, GA 983 5,568 CENTRAL PENNSYLVANIA 1214-a Freedom Road Cranberry Township, PA 31 994 401 Russell Drive Middletown, PA 262 857 2700 Commerce Drive Middletown, PA 196 997 2701 Commerce Drive Middletown, PA 141 859 2780 Commerce Drive Middletown, PA 113 743 5035 Ritter Road Mechanicsburg, PA 360 1,442 5070-B Ritter Road (l) Mechanicsburg, PA 395 2,322 6340 Flank Drive Harrisburg, PA 361 2,363 6345 Flank Drive Harrisburg, PA 293 2,297 6360 Flank Drive Harrisburg, PA 218 2,286 6380 Flank Drive Harrisburg, PA 109 1,317 6400 Flank Drive Harrisburg, PA 153 1,312 6405 Flank Drive Harrisburg, PA 221 1,462 100 Schantz Spring Road Allentown, PA 532 3,144 794 Roble Road Allentown, PA 915 5,391 7355 Williams Avenue Allentown, PA 291 1,725 2600 Beltline Avenue Reading, PA 341 2,038 7125 Grayson Road Harrisburg, PA 1,514 8,779 7253 Grayson Road Harrisburg, PA 894 5,168 5 Keystone Drive Lebanon, PA 678 - 5020 Louise Drive Mechanicsburg, PA (d) 707 - 7195 Grayson Harrisburg, PA (d) 478 2,771 400 First Street Middletown, PA 280 1,839 401 First Street Middletown, PA 819 5,381 600 Hunter Lane Middletown, PA 191 - 300 Hunter Lane Middletown, PA 216 - 3380 Susquehanna Trail North York, PA 450 2,550 495 East Locust Lane York, PA 810 4,590 350 Old Silver Spring Road Mechanicsburg, PA 510 2,890 4500 Westport Drive Mechanicsburg, PA 690 3,970 500 Industrial Lane Middletown, PA 194 1,272 41 Weaver Road Denver, PA 2,501 14,171 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> ATLANTA 4250 River Green Parkway $ 21 $ 264 $ 1,543 $ 1,807 3400 Corporate Parkway 106 281 1,727 2,008 3450 Corporate Parkway 18 506 2,922 3,428 3500 Corporate Parkway 16 260 1,516 1,776 3425 Corporate Parkway 145 385 2,357 2,742 1650 GA Highway 155 165 788 4,709 5,497 415 Industrial Park Road 51 544 3,191 3,735 434 Industrial Park Road 72 234 1,437 1,671 435 Industrial Park Road 9 281 1,647 1,928 14101 Industrial Park Boulevard 515 285 2,173 2,458 801-804 Blacklawn Road 164 361 2,259 2,620 1665 Dogwood Drive 11 635 3,673 4,308 1715 Dogwood Drive 94 288 1,769 2,057 11235 Harland Drive 30 125 769 894 700 Westlake Parkway 510 223 2,051 2,274 800 Westlake Parkway 402 479 3,018 3,497 4050 Southmeadow Parkway 158 425 2,947 3,372 4051 Southmeadow Parkway 686 726 4,143 4,869 4071 Southmeadow Parkway 715 828 5,097 5,925 4081 Southmeadow Parkway 611 1,157 5,916 7,073 1875 Rockdale Industrial Blvd. 30 386 2,294 2,680 370 Great Southwest Parkway (l) 214 546 3,179 3,725 955 Cobb Place 167 804 4,563 5,367 6105 Boatrock Blvd 13 91 516 606 1640 Sands Place 34 166 951 1,116 3312 N. Berkeley Lake Road 788 3,046 17,323 20,369 3495 Bankhead Highway (l) 184 1,005 5,730 6,735 CENTRAL PENNSYLVANIA 1214-a Freedom Road 617 205 1,437 1,642 401 Russell Drive 1,496 287 2,328 2,615 2700 Commerce Drive 671 206 1,658 1,864 2701 Commerce Drive 1,171 164 2,007 2,171 2780 Commerce Drive 1,033 209 1,680 1,889 5035 Ritter Road 2,401 442 3,761 4,203 5070-B Ritter Road (l) 1,897 506 4,108 4,614 6340 Flank Drive 2,522 563 4,683 5,246 6345 Flank Drive 2,767 587 4,770 5,357 6360 Flank Drive 849 359 2,994 3,353 6380 Flank Drive 795 234 1,987 2,221 6400 Flank Drive 1,257 281 2,441 2,722 6405 Flank Drive 1,256 313 2,626 2,939 100 Schantz Spring Road 75 533 3,218 3,751 794 Roble Road 45 915 5,436 6,351 7355 Williams Avenue 203 291 1,928 2,219 2600 Beltline Avenue 212 356 2,235 2,591 7125 Grayson Road 6 1,514 8,785 10,299 7253 Grayson Road 27 894 5,195 6,089 5 Keystone Drive 4,747 683 4,742 5,425 5020 Louise Drive 2,773 716 2,764 3,480 7195 Grayson 77 479 2,847 3,326 400 First Street 576 192 2,503 2,695 401 First Street 1,666 563 7,303 7,866 600 Hunter Lane 4,393 191 4,393 4,584 300 Hunter Lane 6,059 216 6,059 6,275 3380 Susquehanna Trail North 137 467 2,670 3,137 495 East Locust Lane 237 838 4,799 5,637 350 Old Silver Spring Road 243 542 3,101 3,643 4500 Westport Drive 196 727 4,129 4,856 500 Industrial Lane 264 133 1,597 1,730 41 Weaver Road 194 2,530 14,336 16,866 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> ATLANTA 4250 River Green Parkway $ 127 1988 (q) 3400 Corporate Parkway 177 1987 (q) 3450 Corporate Parkway 237 1988 (q) 3500 Corporate Parkway 123 1991 (q) 3425 Corporate Parkway 211 1990 (q) 1650 GA Highway 155 468 1991 (q) 415 Industrial Park Road 278 1986 (q) 434 Industrial Park Road 121 1988 (q) 435 Industrial Park Road 147 1986 (q) 14101 Industrial Park Boulevard 149 1984 (q) 801-804 Blacklawn Road 256 1982 (q) 1665 Dogwood Drive 325 1973 (q) 1715 Dogwood Drive 195 1973 (q) 11235 Harland Drive 71 1988 (q) 700 Westlake Parkway 227 1990 (q) 800 Westlake Parkway 285 1991 (q) 4050 Southmeadow Parkway 276 1991 (q) 4051 Southmeadow Parkway 399 1989 (q) 4071 Southmeadow Parkway 480 1991 (q) 4081 Southmeadow Parkway 543 1989 (q) 1875 Rockdale Industrial Blvd. 202 1966 (q) 370 Great Southwest Parkway (l) 87 1986 (q) 955 Cobb Place 38 1991 (q) 6105 Boatrock Blvd 1 1972 (q) 1640 Sands Place 2 1977 (q) 3312 N. Berkeley Lake Road 823 1969 (q) 3495 Bankhead Highway (l) 150 1986 (q) CENTRAL PENNSYLVANIA 1214-a Freedom Road 450 1982 (q) 401 Russell Drive 611 1990 (q) 2700 Commerce Drive 366 1990 (q) 2701 Commerce Drive 346 1989 (q) 2780 Commerce Drive 370 1989 (q) 5035 Ritter Road 915 1988 (q) 5070-B Ritter Road (l) 917 1989 (q) 6340 Flank Drive 1,049 1988 (q) 6345 Flank Drive 1,065 1989 (q) 6360 Flank Drive 692 1988 (q) 6380 Flank Drive 423 1991 (q) 6400 Flank Drive 527 1992 (q) 6405 Flank Drive 552 1991 (q) 100 Schantz Spring Road 278 1993 (q) 794 Roble Road 474 1984 (q) 7355 Williams Avenue 238 1989 (q) 2600 Beltline Avenue 335 1985 (q) 7125 Grayson Road 814 1991 (q) 7253 Grayson Road 482 1990 (q) 5 Keystone Drive 291 1995 (q) 5020 Louise Drive 257 1995 (q) 7195 Grayson 219 1994 (q) 400 First Street 140 1963/96 (q) 401 First Street 405 1963/96 (q) 600 Hunter Lane 73 1997 (q) 300 Hunter Lane 75 1996 (q) 3380 Susquehanna Trail North 55 1990 (q) 495 East Locust Lane 99 1993 (q) 350 Old Silver Spring Road 64 1968 (q) 4500 Westport Drive 60 1996 (q) 500 Industrial Lane 88 1970/96 (q) 41 Weaver Road 30 1974 (q) </TABLE> S-1
76 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ----------------------------- BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> CHICAGO 720-730 Landwehr Road Northbrook, IL (e) 521 2,985 3170-3190 MacArthur Boulevard Northbrook, IL (e) 370 2,126 20W201 101st Street Lemont, IL (e) 967 5,554 280-296 Palatine Road Wheeling, IL (e) 305 1,735 1330 West 43rd Street Chicago, IL 369 1,464 2300 Hammond Drive Schaumburg, IL 442 1,241 6500 North Lincoln Avenue Lincolnwood, IL 613 1,336 3600 West Pratt Avenue Lincolnwood, IL 1,050 5,767 917 North Shore Drive Lake Bluff, IL 556 3,212 6750 South Sayre Avenue Bedford Park, IL 224 1,309 585 Slawin Court Mount Prospect, IL 611 3,505 2300 Windsor Court Addison, IL 688 3,943 3505 Thayer Court Aurora, IL 430 2,472 3600 Thayer Court Aurora, IL 636 3,645 736-776 Industrial Drive Elmhurst, IL 349 1,994 5310-5352 East Avenue Countryside, IL 382 2,036 12330-12358 South Latrobe Alsip, IL 381 2,067 305-311 Era Drive Northbrook, IL 200 1,154 700-714 Landwehr Road Northbrook, IL 357 2,052 4330 South Racine Avenue Chicago, IL 448 1,893 13040 S. Crawford Ave. Alsip, IL 1,073 6,193 11241 Melrose Street Franklin Park, IL 332 1,931 3150-3160 MacArthur Boulevard Northbrook, IL (d) 439 2,518 2101-2125 Gardner Road Broadview, IL (d) 1,177 6,818 365 North Avenue Carol Stream, IL (d) 1,208 6,961 2942 MacArthur Boulevard Northbrook, IL (d) 315 1,803 7200 S Leamington Bedford Park, IL 798 4,595 12301-12325 S Laramie Ave Alsip, IL 650 3,692 6300 W Howard Street Niles, IL 743 4,208 301 Hintz Wheeling, IL 160 905 301 Alice Wheeling, IL 218 1,236 1001 Commerce Court Buffalo Grove, IL 615 3,485 11939 S Central Avenue Alsip, IL 1,208 6,843 405 East Shawmut La Grange, IL 368 2,083 2201 Lunt Elk Grove Village, IL 469 2,656 1010-50 Sesame Street Bensenville, IL (i) 979 5,546 5555 West 70th Place Bedford Park, IL 146 829 3200-3250 South St. Louis (l) Chicago, IL 110 625 3110-3130 South St. Louis Chicago, IL 115 650 7301 South Hamlin Chicago, IL 149 846 3740 West 74th Street Chicago, IL 190 1,075 7401 South Pulaski Chicago, IL 664 3,763 3900 West 74th Street Chicago, IL 137 778 7501 S. Pulaski Chicago, IL 360 2,038 410 W 169th Street South Holland, IL 462 2,618 CINCINNATI 9900-9970 Princeton-Glendale Cincinnati, OH (f) 545 3,088 2940 Highland Avenue Cincinnati, OH (f) 1,717 9,730 4700-4750 Creek Road Blue Ash, OH (f) 1,080 6,118 4860 Duff Drive Cincinnati, OH 67 378 4866 Duff Drive Cincinnati, OH 67 379 4884 Duff Drive Cincinnati, OH 104 591 4890 Duff Drive Cincinnati, OH 104 592 9636-9643 Interocean Drive Cincinnati, OH 123 695 7600 Empire Drive Florence, KY 900 5,100 CLEVELAND 21510-21600 Alexander Road (m) Oakwood, OH 509 2,883 5405 & 5505 Valley Belt Road (l) Independence, OH 371 2,101 10145 Philipp Parkway Streetsboro, OH 334 1,891 4410 Hamann Willoughby, OH 138 782 6675 Parkland Blvd Solon, OH 548 3,103 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> CHICAGO 720-730 Landwehr Road 9 521 2,994 3,515 3170-3190 MacArthur Boulevard 199 370 2,325 2,695 20W201 101st Street 432 968 5,985 6,953 280-296 Palatine Road 148 310 1,878 2,188 1330 West 43rd Street 527 375 1,985 2,360 2300 Hammond Drive 546 444 1,785 2,229 6500 North Lincoln Avenue 939 615 2,273 2,888 3600 West Pratt Avenue 462 1,050 6,229 7,279 917 North Shore Drive 48 556 3,260 3,816 6750 South Sayre Avenue 36 224 1,345 1,569 585 Slawin Court 1 611 3,506 4,117 2300 Windsor Court 180 688 4,123 4,811 3505 Thayer Court 17 430 2,489 2,919 3600 Thayer Court 52 636 3,697 4,333 736-776 Industrial Drive 256 349 2,250 2,599 5310-5352 East Avenue 537 382 2,573 2,955 12330-12358 South Latrobe 209 381 2,276 2,657 305-311 Era Drive 144 205 1,293 1,498 700-714 Landwehr Road 207 357 2,259 2,616 4330 South Racine Avenue 239 468 2,112 2,580 13040 S. Crawford Ave. 24 1,073 6,217 7,290 11241 Melrose Street 1,072 469 2,866 3,335 3150-3160 MacArthur Boulevard 30 439 2,548 2,987 2101-2125 Gardner Road 110 1,228 6,877 8,105 365 North Avenue 81 1,208 7,042 8,250 2942 MacArthur Boulevard 15 315 1,818 2,133 7200 S Leamington 466 818 5,041 5,859 12301-12325 S Laramie Ave 424 659 4,107 4,766 6300 W Howard Street 343 782 4,512 5,294 301 Hintz 71 167 969 1,136 301 Alice 58 225 1,287 1,512 1001 Commerce Court 99 626 3,573 4,199 11939 S Central Avenue 140 1,224 6,967 8,191 405 East Shawmut 104 379 2,176 2,555 2201 Lunt 1,145 560 3,710 4,270 1010-50 Sesame Street 171 1,003 5,693 6,696 5555 West 70th Place 80 157 898 1,055 3200-3250 South St. Louis (l) 47 116 666 782 3110-3130 South St. Louis 53 120 698 818 7301 South Hamlin 55 154 896 1,050 3740 West 74th Street 50 196 1,119 1,315 7401 South Pulaski 450 685 4,192 4,877 3900 West 74th Street 40 142 813 955 7501 S. Pulaski 86 371 2,113 2,484 410 W 169th Street 124 476 2,728 3,204 CINCINNATI 9900-9970 Princeton-Glendale 750 566 3,817 4,383 2940 Highland Avenue 705 1,772 10,380 12,152 4700-4750 Creek Road 288 1,109 6,377 7,486 4860 Duff Drive 11 68 388 456 4866 Duff Drive 10 68 388 456 4884 Duff Drive 16 106 605 711 4890 Duff Drive 21 107 610 717 9636-9643 Interocean Drive 28 125 721 846 7600 Empire Drive 104 915 5,189 6,104 CLEVELAND 21510-21600 Alexander Road (m) 122 526 2,988 3,514 5405 & 5505 Valley Belt Road (l) 107 385 2,194 2,579 10145 Philipp Parkway 55 342 1,938 2,280 4410 Hamann 49 145 824 969 6675 Parkland Blvd 172 571 3,252 3,823 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> CHICAGO 720-730 Landwehr Road 262 1978 (q) 3170-3190 MacArthur Boulevard 206 1978 (q) 20W201 101st Street 611 1988 (q) 280-296 Palatine Road 133 1978 (q) 1330 West 43rd Street 1,072 1977 (q) 2300 Hammond Drive 1,068 1970 (q) 6500 North Lincoln Avenue 1,036 1965/88 (q) 3600 West Pratt Avenue 561 1953/88 (q) 917 North Shore Drive 298 1974 (q) 6750 South Sayre Avenue 116 1975 (q) 585 Slawin Court 307 1992 (q) 2300 Windsor Court 418 1986 (q) 3505 Thayer Court 220 1989 (q) 3600 Thayer Court 328 1989 (q) 736-776 Industrial Drive 250 1975 (q) 5310-5352 East Avenue 234 1975 (q) 12330-12358 South Latrobe 203 1975 (q) 305-311 Era Drive 123 1978 (q) 700-714 Landwehr Road 201 1978 (q) 4330 South Racine Avenue 1,207 1978 (q) 13040 S. Crawford Ave. 517 1976 (q) 11241 Melrose Street 249 1969 (q) 3150-3160 MacArthur Boulevard 224 1978 (q) 2101-2125 Gardner Road 571 1950/69 (q) 365 North Avenue 571 1969 (q) 2942 MacArthur Boulevard 159 1979 (q) 7200 S Leamington 249 1950 (q) 12301-12325 S Laramie Ave 208 1975 (q) 6300 W Howard Street 226 1956/1964 (q) 301 Hintz 48 1960 (q) 301 Alice 64 1965 (q) 1001 Commerce Court 75 1989 (q) 11939 S Central Avenue 115 1972 (q) 405 East Shawmut 31 1965 (q) 2201 Lunt 42 1963 (q) 1010-50 Sesame Street 35 1976 (q) 5555 West 70th Place 6 1973 (q) 3200-3250 South St. Louis (l) 4 1968 (q) 3110-3130 South St. Louis 4 1968 (q) 7301 South Hamlin 7 1975/86 (q) 3740 West 74th Street 3 1975/86 (q) 7401 South Pulaski 28 1975/86 (q) 3900 West 74th Street 7 1975/86 (q) 7501 S. Pulaski 11 1975/86 (q) 410 W 169th Street 124 1974 (q) CINCINNATI 9900-9970 Princeton-Glendale 167 1970 (q) 2940 Highland Avenue 479 1969/1974 (q) 4700-4750 Creek Road 291 1960 (q) 4860 Duff Drive 11 1979 (q) 4866 Duff Drive 10 1979 (q) 4884 Duff Drive 16 1979 (q) 4890 Duff Drive 17 1979 (q) 9636-9643 Interocean Drive 20 1983 (q) 7600 Empire Drive 43 1964 (q) CLEVELAND 21510-21600 Alexander Road (m) 25 1985 (q) 5405 & 5505 Valley Belt Road (l) 18 1983 (q) 10145 Philipp Parkway 12 1994 (q) 4410 Hamann 5 1975 (q) 6675 Parkland Blvd 101 1991 (q) </TABLE> S-2
77 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> COLUMBUS 6911 Americana Parkway Columbus, OH 314 1,777 3800 Lockbourne Industrial Parkway Columbus, OH 1,133 6,421 1819 North Walcutt Road Columbus, OH 810 4,590 3800 Groveport Road Obetz, OH 2,145 12,154 4300 Cemetery Road Hilliard, OH 1,103 6,248 DALLAS 1275-1281 Roundtable Drive Dallas, TX 148 839 2406-2416 Walnut Ridge Dallas, TX 178 1,006 12750 Perimiter Drive Dallas, TX 638 3,618 1324-1343 Roundtable Drive Dallas, TX 178 1,006 1405-1409 Avenue II East Grand Prairie, TX 118 671 2651-2677 Manana Dallas, TX 266 1,510 2401-2419 Walnut Ridge Dallas, TX 148 839 4248-4252 Simonton Farmers Ranch, TX 888 5,032 900-906 Great Southwest Pkwy Arlington, TX 237 1,342 2179 Shiloh Road Garland, TX 251 1,424 2159 Shiloh Road Garland, TX 108 610 2701 Shiloh Road Garland, TX 818 4,636 12784 Perimeter Drive (m) Dallas, TX 350 1,986 3000 West Commerce Dallas, TX 456 2,584 3030 Hansboro Dallas, TX 266 1,510 5222 Cockrell Hill Dallas, TX 296 1,677 405-407 113th Arlington, TX 181 1,026 816 111th Street Arlington, TX 251 1,421 DAYTON 6094-6104 Executive Blvd Huber Heights, OH 181 1,025 6202-6220 Executive Blvd Huber Heights, OH 268 1,521 6268-6294 Executive Blvd Huber Heights, OH 255 1,444 5749-5753 Executive Blvd Huber Heights, OH 50 282 2200-2224 Sandridge Road Moriane, OH 218 1,233 6230-6266 Executive Blvd Huber Heights, OH 271 1,534 DENVER 7100 North Broadway - 1 Denver, CO 201 1141 7100 North Broadway - 2 Denver, CO 203 1150 7100 North Broadway - 3 Denver, CO 139 787 7100 North Broadway - 5 Denver, CO 180 1018 7100 North Broadway - 6 Denver, CO 269 1526 10691 East Bethany Drive Aurora, CO 186 1054 20100 East 32nd Avenue Parkway Aurora, CO 333 1888 15700-15820 West 6th Avenue Golden, Co 333 1887 12850-15884 West 6th Avenue Golden, Co 201 1139 5454 Washington Denver, CO 154 873 5801 West 6th Avenue Lakewood, CO 74 418 5805 West 6th Avenue Lakewood, CO 97 549 5815 West 6th Avenue Lakewood, CO 99 560 5825 West 6th Avenue Lakewood, CO 99 559 5835 West 6th Avenue Lakewood, CO 97 552 525 East 70th Street Denver, CO 68 384 565 East 70th Street Denver, CO 169 960 605 East 70th Street Denver, CO 192 1089 625 East 70th Street Denver, CO 136 768 665 East 70th Street Denver, CO 136 768 700 West 48th Street Denver, CO 302 1711 702 West 48th Street Denver, CO 135 763 3370 North Peoria Street Aurora, CO 163 924 3390 North Peoria Street Aurora, CO 145 822 3508-3538 North Peoria Street Aurora, CO 260 1472 3568 North Peoria Street Aurora, CO 222 1260 3350 North Peoria Street Aurora, CO 215 1216 4785 Elati Denver, CO 173 981 4770 Fox Street Denver, CO 132 750 1550 W. Evans Denver, CO 388 2200 12401-41 East 37th Ave Denver, CO 129 732 3751-71 Revere Street Denver, CO 262 1486 3871 Revere Street Denver, CO 361 2047 5454 Havana Street Denver, CO 204 1156 5500 Havana Street Denver, CO 167 946 4570 Ivy Street Denver, CO 219 1239 5855 Stapleton Drive North Denver, CO 288 1630 5885 Stapleton Drive North Denver, CO 376 2129 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> COLUMBUS 6911 Americana Parkway 122 321 1,892 2,213 3800 Lockbourne Industrial Parkway 184 1,155 6,583 7,738 1819 North Walcutt Road 140 830 4,710 5,540 3800 Groveport Road 204 2,165 12,338 14,503 4300 Cemetery Road 80 1,160 6,271 7,431 DALLAS 1275-1281 Roundtable Drive 36 154 870 1,023 2406-2416 Walnut Ridge 39 184 1,040 1,223 12750 Perimiter Drive 137 659 3,735 4,393 1324-1343 Roundtable Drive 40 184 1,041 1,224 1405-1409 Avenue II East 28 123 695 817 2651-2677 Manana 58 275 1,560 1,834 2401-2419 Walnut Ridge 34 153 869 1,021 4248-4252 Simonton 208 919 5,210 6,128 900-906 Great Southwest Pkwy 53 245 1,388 1,632 2179 Shiloh Road 33 256 1,453 1,708 2159 Shiloh Road 16 110 625 734 2701 Shiloh Road 695 923 5,227 6,149 12784 Perimeter Drive (m) 65 360 2,042 2,401 3000 West Commerce 87 469 2,659 3,127 3030 Hansboro 73 276 1,574 1,849 5222 Cockrell Hill 67 306 1,735 2,040 405-407 113th 26 185 1,049 1,233 816 111th Street 48 258 1,463 1,720 DAYTON 6094-6104 Executive Blvd 75 187 1,094 1,281 6202-6220 Executive Blvd 96 275 1,610 1,885 6268-6294 Executive Blvd 97 262 1,534 1,796 5749-5753 Executive Blvd 46 53 325 378 2200-2224 Sandridge Road 103 226 1,328 1,554 6230-6266 Executive Blvd 99 281 1,623 1,904 DENVER 7100 North Broadway - 1 13 203 1,152 1,355 7100 North Broadway - 2 12 205 1,160 1,365 7100 North Broadway - 3 8 140 794 934 7100 North Broadway - 5 22 181 1,039 1,220 7100 North Broadway - 6 17 272 1,540 1,812 10691 East Bethany Drive 12 188 1,064 1,252 20100 East 32nd Avenue Parkway 73 338 1,956 2,294 15700-15820 West 6th Avenue 31 338 1,913 2,251 12850-15884 West 6th Avenue 13 203 1,150 1,353 5454 Washington 13 156 884 1,040 5801 West 6th Avenue 0 74 418 492 5805 West 6th Avenue 0 97 549 646 5815 West 6th Avenue 0 99 560 659 5825 West 6th Avenue 0 99 559 658 5835 West 6th Avenue 0 97 552 649 525 East 70th Street 5 69 388 457 565 East 70th Street 12 171 970 1,141 605 East 70th Street 13 194 1,100 1,294 625 East 70th Street 9 137 776 913 665 East 70th Street 9 137 776 913 700 West 48th Street 31 307 1,737 2,044 702 West 48th Street 33 140 791 931 3370 North Peoria Street 10 165 932 1,097 3390 North Peoria Street 8 146 829 975 3508-3538 North Peoria Street 29 263 1,498 1,761 3568 North Peoria Street 18 224 1,276 1,500 3350 North Peoria Street 12 216 1,227 1,443 4785 Elati 13 175 992 1,167 4770 Fox Street 10 134 758 892 1550 W. Evans 46 395 2,239 2,634 12401-41 East 37th Ave 10 131 740 871 3751-71 Revere Street 31 267 1,512 1,779 3871 Revere Street 41 367 2,082 2,449 5454 Havana Street 15 206 1,169 1,375 5500 Havana Street 12 169 956 1,125 4570 Ivy Street 11 220 1,249 1,469 5855 Stapleton Drive North 15 290 1,643 1,933 5885 Stapleton Drive North 35 380 2,160 2,540 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> COLUMBUS 6911 Americana Parkway 87 1980 (q) 3800 Lockbourne Industrial Parkway 214 1986 (q) 1819 North Walcutt Road 88 1973 (q) 3800 Groveport Road 406 1986 (q) 4300 Cemetery Road 13 1968 (q) DALLAS 1275-1281 Roundtable Drive 2 1966 (q) 2406-2416 Walnut Ridge 2 1978 (q) 12750 Perimiter Drive 8 1979 (q) 1324-1343 Roundtable Drive 2 1972 (q) 1405-1409 Avenue II East 1 1969 (q) 2651-2677 Manana 3 1966 (q) 2401-2419 Walnut Ridge 2 1978 (q) 4248-4252 Simonton 11 1973 (q) 900-906 Great Southwest Pkwy 3 1972 (q) 2179 Shiloh Road 3 1982 (q) 2159 Shiloh Road 1 1982 (q) 2701 Shiloh Road 11 1981 (q) 12784 Perimeter Drive (m) 4 1981 (q) 3000 West Commerce 6 1980 (q) 3030 Hansboro 3 1971 (q) 5222 Cockrell Hill 4 1973 (q) 405-407 113th 2 1969 (q) 816 111th Street 3 1972 (q) DAYTON 6094-6104 Executive Blvd 43 1975 (q) 6202-6220 Executive Blvd 63 1996 (q) 6268-6294 Executive Blvd 60 1989 (q) 5749-5753 Executive Blvd 12 1975 (q) 2200-2224 Sandridge Road 30 1983 (q) 6230-6266 Executive Blvd 55 1979 (q) DENVER 7100 North Broadway - 1 7 1978 (q) 7100 North Broadway - 2 7 1978 (q) 7100 North Broadway - 3 5 1978 (q) 7100 North Broadway - 5 7 1978 (q) 7100 North Broadway - 6 10 1978 (q) 10691 East Bethany Drive 7 1979 (q) 20100 East 32nd Avenue Parkway 13 1997 (q) 15700-15820 West 6th Avenue 12 1978 (q) 12850-15884 West 6th Avenue 7 1978 (q) 5454 Washington 5 1985 (q) 5801 West 6th Avenue 3 1980 (q) 5805 West 6th Avenue 3 1980 (q) 5815 West 6th Avenue 3 1980 (q) 5825 West 6th Avenue 3 1980 (q) 5835 West 6th Avenue 3 1980 (q) 525 East 70th Street 2 1985 (q) 565 East 70th Street 6 1985 (q) 605 East 70th Street 7 1985 (q) 625 East 70th Street 5 1985 (q) 665 East 70th Street 5 1985 (q) 700 West 48th Street 11 1984 (q) 702 West 48th Street 5 1984 (q) 3370 North Peoria Street 6 1978 (q) 3390 North Peoria Street 5 1978 (q) 3508-3538 North Peoria Street 9 1978 (q) 3568 North Peoria Street 8 1978 (q) 3350 North Peoria Street 8 1978 (q) 4785 Elati 6 1972 (q) 4770 Fox Street 5 1972 (q) 1550 W. Evans 14 1975 (q) 12401-41 East 37th Ave 5 1980 (q) 3751-71 Revere Street 9 1980 (q) 3871 Revere Street 13 1980 (q) 5454 Havana Street 7 1980 (q) 5500 Havana Street 6 1980 (q) 4570 Ivy Street 8 1985 (q) 5855 Stapleton Drive North 10 1985 (q) 5885 Stapleton Drive North 13 1985 (q) </TABLE> S-3
78 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 5200-5280 North Broadway Denver, CO 169 960 5977-5995 North Broadway Denver, CO 268 1518 2952-5978 North Broadway Denver, CO 414 2346 6400 North Broadway Denver, CO 318 1804 875 Parfer Street Lakewood, CO 288 1633 4721 Ironton Street Denver, CO 232 1313 833 Parfer Street Lakewood, CO 196 1112 11005 West 8th Avenue Lakewood, CO 102 580 7100 North Broadway - 7 Denver, CO 215 1221 7100 North Broadway - 8 Denver, CO 79 448 6804 East 48th Avenue Denver, CO 253 1435 15350 East Hindsdale Drive Denver, CO 129 732 15353 East Hinsdale Drive Englewood, CO 97 549 15373 East Hinsdale Drive Englewood, CO 39 219 4611 East 46th Avenue Denver, CO 129 732 East 47th Drive - A Denver, CO 474 2689 East 47th Drive - B Denver, CO 405 2296 Centenial Airport Business Pk. Denver, CO 640 3629 9500 West 49th Street - A Wheatridge, CO 432 2448 9500 West 49th Street - B Wheatridge, CO 235 1330 9500 West 49th Street - C Wheatridge, CO 602 3409 9500 West 49th Street - D Wheatridge, CO 271 1537 8100 South Park Way - A Littleton, CO 442 2507 8100 South Park Way - B Littleton, CO 103 582 8100 South Park Way - C Littleton, CO 568 3219 451-591 East 124th Avenue Littleton, CO 386 2188 14100 East Jewell Aurora, CO 395 2240 14190 East Jewell Aurora, CO 199 1126 608 Garrison Street Lakewood, CO 265 1501 610 Garrison Street Lakewood, CO 264 1494 1111 West Evans (A&C) Denver, CO 233 1321 1111 West Evans (B) Denver, CO 30 169 15000 West 6th Avenue Golden, Co 913 5174 14998 West 6th Avenue Bldg E Golden, Co 565 3199 14998 West 6th Avenue Bldg F Englewood, CO 269 1525 12503 East Euclid Drive Denver, CO 1,219 6905 6547 South Racine Circle Englewood, CO 748 4241 7800 East Iliff Avenue Denver, CO 196 1110 2369 South Trenton Way Denver, CO 292 1656 2370 South Trenton Way Denver, CO 200 1132 2422 South Trenton Way Denver, CO 241 1364 2452 South Trenton Way Denver, CO 421 2386 8122 South Park Lane - A Littleton, CO 394 2232 8122 South Park Lane - B Littleton, CO 186 1054 1600 South Abilene Aurora, CO 465 2633 1620 South Abilene Aurora, CO 268 1520 1640 South Abilene Aurora, CO 368 2085 13900 East Florida Ave Aurora, CO 189 1071 4301 South Federal Boulevard Englewood, CO 237 1341 14401-14492 East 33rd Place Aurora, CO 445 2519 11701 East 53rd Avenue Denver, CO 416 2355 5401 Oswego Street Denver, CO 273 1547 2630 West 2nd Avenue Denver, CO 53 299 2650 West 2nd Avenue Denver, CO 221 1252 14818 West 6th Avenue Bldg A Golden, Co 494 2799 14828 West 6th Avenue Bldg B Golden, Co 519 2942 2075 South Valentia Denver, CO 131 743 DES MOINES 1550 East Washington Avenue Des Moines, IA 610 4,251 1600 East Washington Avenue Des Moines, IA 209 1,557 5701 NE 17th Street Des Moines, IA 162 918 4121 McDonald Avenue Des Moines, IA 390 2,931 4141 McDonald Avenue Des Moines, IA 706 5,518 4161 McDonald Avenue Des Moines, IA 389 3,046 DETROIT 2654 Elliott Troy, MI (e) 57 334 1731 Thorncroft Troy, MI (e) 331 1,904 1653 E. Maple Troy, MI (e) 192 1,104 47461 Clipper Plymouth, MI (e) 122 723 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> 5200-5280 North Broadway 11 171 969 1,140 5977-5995 North Broadway 28 272 1,542 1,814 2952-5978 North Broadway 49 421 2,388 2,809 6400 North Broadway 38 324 1,836 2,160 875 Parfer Street 28 292 1,657 1,949 4721 Ironton Street 27 236 1,336 1,572 833 Parfer Street 17 199 1,126 1,325 11005 West 8th Avenue 9 104 587 691 7100 North Broadway - 7 11 217 1,230 1,447 7100 North Broadway - 8 4 80 451 531 6804 East 48th Avenue 18 256 1,450 1,706 15350 East Hindsdale Drive 8 130 739 869 15353 East Hinsdale Drive 6 98 554 652 15373 East Hinsdale Drive 3 39 222 261 4611 East 46th Avenue 11 131 741 872 East 47th Drive - A 165 477 2,851 3,328 East 47th Drive - B 7 406 2,302 2,708 Centenial Airport Business Pk. 98 646 3,721 4,367 9500 West 49th Street - A 14 434 2,460 2,894 9500 West 49th Street - B 8 236 1,337 1,573 9500 West 49th Street - C 226 605 3,632 4,237 9500 West 49th Street - D 9 273 1,544 1,817 8100 South Park Way - A 31 447 2,533 2,980 8100 South Park Way - B 130 103 712 815 8100 South Park Way - C 39 574 3,252 3,826 451-591 East 124th Avenue 34 391 2,217 2,608 14100 East Jewell 34 400 2,269 2,669 14190 East Jewell 11 200 1,136 1,336 608 Garrison Street 12 267 1,511 1,778 610 Garrison Street 11 265 1,504 1,769 1111 West Evans (A&C) 14 235 1,333 1,568 1111 West Evans (B) 2 30 171 201 15000 West 6th Avenue 57 920 5,224 6,144 14998 West 6th Avenue Bldg E 21 568 3,217 3,785 14998 West 6th Avenue Bldg F 11 271 1,534 1,805 12503 East Euclid Drive 65 1,228 6,961 8,189 6547 South Racine Circle 40 754 4,275 5,029 7800 East Iliff Avenue 9 197 1,118 1,315 2369 South Trenton Way 14 294 1,668 1,962 2370 South Trenton Way 9 201 1,140 1,341 2422 South Trenton Way 12 243 1,374 1,617 2452 South Trenton Way 29 425 2,411 2,836 8122 South Park Lane - A 28 398 2,256 2,654 8122 South Park Lane - B 9 187 1,062 1,249 1600 South Abilene 30 469 2,659 3,128 1620 South Abilene 27 270 1,545 1,815 1640 South Abilene 20 370 2,103 2,473 13900 East Florida Ave 8 190 1,078 1,268 4301 South Federal Boulevard 14 239 1,353 1,592 14401-14492 East 33rd Place 171 452 2,683 3,135 11701 East 53rd Avenue 43 422 2,392 2,814 5401 Oswego Street 28 277 1,571 1,848 2630 West 2nd Avenue 3 53 302 355 2650 West 2nd Avenue 14 223 1,264 1,487 14818 West 6th Avenue Bldg A 47 497 2,843 3,340 14828 West 6th Avenue Bldg B 20 522 2,959 3,481 2075 South Valentia 10 133 751 884 DES MOINES 1550 East Washington Avenue 771 623 5,009 5,632 1600 East Washington Avenue 165 221 1,710 1,931 5701 NE 17th Street 110 175 1,015 1,190 4121 McDonald Avenue 303 416 3,208 3,624 4141 McDonald Avenue 641 787 6,078 6,865 4161 McDonald Avenue 648 467 3,616 4,083 DETROIT 2654 Elliott 46 57 380 437 1731 Thorncroft 20 331 1,924 2,255 1653 E. Maple 44 192 1,148 1,340 47461 Clipper 104 122 827 949 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 5200-5280 North Broadway 6 1977 (q) 5977-5995 North Broadway 10 1978 (q) 2952-5978 North Broadway 15 1978 (q) 6400 North Broadway 11 1982 (q) 875 Parfer Street 10 1975 (q) 4721 Ironton Street 8 1969 (q) 833 Parfer Street 7 1974 (q) 11005 West 8th Avenue 4 1974 (q) 7100 North Broadway - 7 8 1985 (q) 7100 North Broadway - 8 3 1985 (q) 6804 East 48th Avenue 9 1973 (q) 15350 East Hindsdale Drive 5 1987 (q) 15353 East Hinsdale Drive 3 1987 (q) 15373 East Hinsdale Drive 1 1987 (q) 4611 East 46th Avenue 5 1974 (q) East 47th Drive - A 7 1997 (q) East 47th Drive - B 5 1997 (q) Centenial Airport Business Pk. 24 1997 (q) 9500 West 49th Street - A 15 1997 (q) 9500 West 49th Street - B 8 1997 (q) 9500 West 49th Street - C 28 1997 (q) 9500 West 49th Street - D 10 1997 (q) 8100 South Park Way - A 16 1997 (q) 8100 South Park Way - B 6 1984 (q) 8100 South Park Way - C 20 1984 (q) 451-591 East 124th Avenue 14 1979 (q) 14100 East Jewell 14 1980 (q) 14190 East Jewell 7 1980 (q) 608 Garrison Street 10 1984 (q) 610 Garrison Street 9 1984 (q) 1111 West Evans (A&C) 8 1986 (q) 1111 West Evans (B) 1 1986 (q) 15000 West 6th Avenue 33 1985 (q) 14998 West 6th Avenue Bldg E 20 1995 (q) 14998 West 6th Avenue Bldg F 10 1995 (q) 12503 East Euclid Drive 43 1986 (q) 6547 South Racine Circle 27 1996 (q) 7800 East Iliff Avenue 7 1983 (q) 2369 South Trenton Way 10 1983 (q) 2370 South Trenton Way 7 1983 (q) 2422 South Trenton Way 9 1983 (q) 2452 South Trenton Way 15 1983 (q) 8122 South Park Lane - A 14 1986 (q) 8122 South Park Lane - B 7 1986 (q) 1600 South Abilene 17 1986 (q) 1620 South Abilene 10 1986 (q) 1640 South Abilene 13 1986 (q) 13900 East Florida Ave 7 1986 (q) 4301 South Federal Boulevard 8 1997 (q) 14401-14492 East 33rd Place 16 1979 (q) 11701 East 53rd Avenue 15 1985 (q) 5401 Oswego Street 10 1985 (q) 2630 West 2nd Avenue 2 1970 (q) 2650 West 2nd Avenue 8 1970 (q) 14818 West 6th Avenue Bldg A 18 1985 (q) 14828 West 6th Avenue Bldg B 18 1985 (q) 2075 South Valentia 5 1981 (q) DES MOINES 1550 East Washington Avenue 543 1987 (q) 1600 East Washington Avenue 160 1987 (q) 5701 NE 17th Street 10 1968 (q) 4121 McDonald Avenue 301 1977 (q) 4141 McDonald Avenue 571 1976 (q) 4161 McDonald Avenue 339 1979 (q) DETROIT 2654 Elliott 29 1986 (q) 1731 Thorncroft 160 1969 (q) 1653 E. Maple 97 1990 (q) 47461 Clipper 123 1992 (q) </TABLE> S-4
79 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 47522 Galleon Plymouth, MI (e) 85 496 4150 Varsity Drive Ann Arbor, MI (e) 168 969 1330 Crooks Road Clawson, MI (e) 234 1,348 12000 Merriman Road Livonia, MI 453 3,651 238 Executive Drive Troy, MI 52 173 256 Executive Drive Troy, MI 44 146 301 Executive Drive Troy, MI 71 293 449 Executive Drive Troy, MI 125 425 501 Executive Drive Troy, MI 71 236 645 Executive Drive Troy, MI 184 940 451 Robbins Drive Troy, MI 96 448 700 Stephenson Highway Troy, MI 250 854 800 Stephenson Highway Troy, MI 558 2,341 1150 Stephenson Highway Troy, MI 178 966 1200 Stephenson Highway Troy, MI 246 1,115 1035 Crooks Road Troy, MI 114 414 1095 Crooks Road Troy, MI 331 1,017 1416 Meijer Drive Troy, MI 94 394 1624 Meijer Drive Troy, MI 236 1,406 1972 Meijer Drive Troy, MI 315 1,301 2112 Meijer Drive Troy, MI 141 714 1621 Northwood Drive Troy, MI 85 351 1707 Northwood Drive Troy, MI 95 262 1749 Northwood Drive Troy, MI 107 477 1788 Northwood Drive Troy, MI 50 196 1821 Northwood Drive Troy, MI 132 523 1826 Northwood Drive Troy, MI 55 208 1864 Northwood Drive Troy, MI 57 190 1902 Northwood Drive Troy, MI 234 807 1921 Northwood Drive Troy, MI 135 589 2230 Elliott Avenue Troy, MI 46 174 2237 Elliott Avenue Troy, MI 48 159 2277 Elliott Avenue Troy, MI 48 188 2291 Elliott Avenue Troy, MI 52 209 2451 Elliott Avenue Troy, MI 78 319 2730 Research Drive Rochester Hills, MI 915 4,215 2791 Research Drive Rochester Hills, MI 557 2,731 2871 Research Drive Rochester Hills, MI 324 1,487 2911 Research Drive Rochester Hills, MI 505 2,136 3011 Research Drive Rochester Hills, MI 457 2,104 2870 Technology Drive Rochester Hills, MI 275 1,262 2890 Technology Drive Rochester Hills, MI 199 902 2900 Technology Drive Rochester Hills, MI 214 977 2920 Technology Drive Rochester Hills, MI 149 671 2930 Technology Drive Rochester Hills, MI 131 594 2950 Technology Drive Rochester Hills, MI 178 819 2960 Technology Drive Rochester Hills, MI 281 1,277 23014 Commerce Drive Farmington Hills, MI 39 203 23028 Commerce Drive Farmington Hills, MI 98 507 23035 Commerce Drive Farmington Hills, MI 71 355 23042 Commerce Drive Farmintgon Hills, MI 67 277 23065 Commerce Drive Farmington Hills, MI 71 408 23070 Commerce Drive Farmington Hills, MI 112 442 23079 Commerce Drive Farmington Hills, MI 68 301 23093 Commerce Drive Farmington Hills, MI 211 1,024 23135 Commerce Drive Farmington Hills, MI 146 701 23149 Commerce Drive Farmington Hills, MI 266 1,005 23163 Commerce Drive Farmington Hills, MI 111 513 23177 Commerce Drive Farmington Hills, MI 175 1,007 23192 Commerce Drive Farmington Hills, MI 41 205 23206 Commerce Drive Farmington Hills, MI 125 531 23290 Commerce Drive Farmington Hills, MI 124 707 23370 Commerce Drive Farmington Hills, MI 59 233 24492 Indoplex Circle Farmington Hills, MI 67 370 24528 Indoplex Circle Farmington Hills, MI 91 536 31800 Plymouth Road - Building 1 Livonia, MI (c) 3,415 19,481 31800 Plymouth Road - Building 2 Livonia, MI (c) 671 3,860 31800 Plymouth Road - Building 3 Livonia, MI (c) 322 1,869 31800 Plymouth Road - Building 6 Livonia, MI (c) 557 3,207 31800 Plymouth Road - Building 7 Livonia, MI (c) 139 832 21477 Bridge Street Southfield, MI 244 1,386 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> 47522 Galleon 9 85 505 590 4150 Varsity Drive 8 168 977 1,145 1330 Crooks Road 14 234 1,362 1,596 12000 Merriman Road 1,375 440 5,039 5,479 238 Executive Drive 426 100 551 651 256 Executive Drive 359 85 464 549 301 Executive Drive 487 133 718 851 449 Executive Drive 829 218 1,161 1,379 501 Executive Drive 526 129 704 833 645 Executive Drive 358 234 1,248 1,482 451 Robbins Drive 963 192 1,315 1,507 700 Stephenson Highway 1,361 386 2,079 2,465 800 Stephenson Highway 1,278 654 3,523 4,177 1150 Stephenson Highway 277 200 1,221 1,421 1200 Stephenson Highway 604 284 1,681 1,965 1035 Crooks Road 475 143 860 1,003 1095 Crooks Road 947 360 1,935 2,295 1416 Meijer Drive 388 121 755 876 1624 Meijer Drive 800 373 2,069 2,442 1972 Meijer Drive 726 372 1,970 2,342 2112 Meijer Drive 608 229 1,234 1,463 1621 Northwood Drive 1,041 215 1,262 1,477 1707 Northwood Drive 1,156 239 1,274 1,513 1749 Northwood Drive 464 164 884 1,048 1788 Northwood Drive 461 103 604 707 1821 Northwood Drive 745 220 1,180 1,400 1826 Northwood Drive 395 103 555 658 1864 Northwood Drive 441 107 581 688 1902 Northwood Drive 2,163 511 2,693 3,204 1921 Northwood Drive 1,164 291 1,597 1,888 2230 Elliott Avenue 419 95 544 639 2237 Elliott Avenue 419 90 536 626 2277 Elliott Avenue 438 104 570 674 2291 Elliott Avenue 324 86 499 585 2451 Elliott Avenue 671 164 904 1,068 2730 Research Drive 545 903 4,772 5,675 2791 Research Drive 290 560 3,018 3,578 2871 Research Drive 265 327 1,749 2,076 2911 Research Drive 375 504 2,512 3,016 3011 Research Drive 321 457 2,425 2,882 2870 Technology Drive 231 279 1,489 1,768 2890 Technology Drive 206 206 1,101 1,307 2900 Technology Drive 491 219 1,463 1,682 2920 Technology Drive 155 153 822 975 2930 Technology Drive 382 138 969 1,107 2950 Technology Drive 256 185 1,068 1,253 2960 Technology Drive 242 283 1,517 1,800 23014 Commerce Drive 124 56 310 366 23028 Commerce Drive 213 125 693 818 23035 Commerce Drive 178 93 511 604 23042 Commerce Drive 304 89 559 648 23065 Commerce Drive 134 93 520 613 23070 Commerce Drive 658 125 1,087 1,212 23079 Commerce Drive 181 79 471 550 23093 Commerce Drive 628 295 1,568 1,863 23135 Commerce Drive 226 158 915 1,073 23149 Commerce Drive 459 274 1,456 1,730 23163 Commerce Drive 238 138 724 862 23177 Commerce Drive 513 254 1,441 1,695 23192 Commerce Drive 134 58 322 380 23206 Commerce Drive 463 137 982 1,119 23290 Commerce Drive 531 210 1,152 1,362 23370 Commerce Drive 139 66 365 431 24492 Indoplex Circle 724 175 986 1,161 24528 Indoplex Circle 1,081 263 1,445 1,708 31800 Plymouth Road - Building 1 2,261 3,417 21,740 25,157 31800 Plymouth Road - Building 2 172 674 4,029 4,703 31800 Plymouth Road - Building 3 151 324 2,018 2,342 31800 Plymouth Road - Building 6 989 560 4,193 4,753 31800 Plymouth Road - Building 7 29 141 859 1,000 21477 Bridge Street 219 253 1,596 1,849 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 47522 Galleon 42 1990 (q) 4150 Varsity Drive 81 1986 (q) 1330 Crooks Road 115 1960 (q) 12000 Merriman Road 2,219 1975 (q) 238 Executive Drive 227 1973 (q) 256 Executive Drive 184 1974 (q) 301 Executive Drive 293 1974 (q) 449 Executive Drive 461 1975 (q) 501 Executive Drive 219 1984 (q) 645 Executive Drive 558 1972 (q) 451 Robbins Drive 437 1975 (q) 700 Stephenson Highway 760 1978 (q) 800 Stephenson Highway 1,269 1979 (q) 1150 Stephenson Highway 396 1982 (q) 1200 Stephenson Highway 534 1980 (q) 1035 Crooks Road 311 1980 (q) 1095 Crooks Road 640 1986 (q) 1416 Meijer Drive 246 1980 (q) 1624 Meijer Drive 706 1984 (q) 1972 Meijer Drive 637 1985 (q) 2112 Meijer Drive 460 1980 (q) 1621 Northwood Drive 501 1977 (q) 1707 Northwood Drive 435 1983 (q) 1749 Northwood Drive 346 1977 (q) 1788 Northwood Drive 231 1977 (q) 1821 Northwood Drive 465 1977 (q) 1826 Northwood Drive 214 1977 (q) 1864 Northwood Drive 225 1977 (q) 1902 Northwood Drive 1,087 1977 (q) 1921 Northwood Drive 655 1977 (q) 2230 Elliott Avenue 222 1974 (q) 2237 Elliott Avenue 198 1974 (q) 2277 Elliott Avenue 219 1975 (q) 2291 Elliott Avenue 209 1974 (q) 2451 Elliott Avenue 359 1974 (q) 2730 Research Drive 1,535 1988 (q) 2791 Research Drive 921 1991 (q) 2871 Research Drive 533 1991 (q) 2911 Research Drive 799 1992 (q) 3011 Research Drive 776 1988 (q) 2870 Technology Drive 471 1988 (q) 2890 Technology Drive 332 1991 (q) 2900 Technology Drive 458 1992 (q) 2920 Technology Drive 241 1992 (q) 2930 Technology Drive 265 1991 (q) 2950 Technology Drive 312 1991 (q) 2960 Technology Drive 455 1992 (q) 23014 Commerce Drive 96 1983 (q) 23028 Commerce Drive 238 1983 (q) 23035 Commerce Drive 165 1983 (q) 23042 Commerce Drive 181 1983 (q) 23065 Commerce Drive 165 1983 (q) 23070 Commerce Drive 298 1983 (q) 23079 Commerce Drive 153 1983 (q) 23093 Commerce Drive 539 1983 (q) 23135 Commerce Drive 290 1986 (q) 23149 Commerce Drive 482 1985 (q) 23163 Commerce Drive 229 1986 (q) 23177 Commerce Drive 502 1986 (q) 23192 Commerce Drive 94 1986 (q) 23206 Commerce Drive 242 1985 (q) 23290 Commerce Drive 439 1980 (q) 23370 Commerce Drive 124 1980 (q) 24492 Indoplex Circle 386 1976 (q) 24528 Indoplex Circle 598 1976 (q) 31800 Plymouth Road - Building 1 1,951 1968/89 (q) 31800 Plymouth Road - Building 2 369 1968/89 (q) 31800 Plymouth Road - Building 3 189 1968/89 (q) 31800 Plymouth Road - Building 6 375 1968/89 (q) 31800 Plymouth Road - Building 7 77 1968/89 (q) 21477 Bridge Street 119 1986 (q) </TABLE> S-5
80 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 2965 Technology Drive Rochester Hills, MI (d) 964 2,277 1451 Lincoln Avenue Madison Heights, MI (d) 299 1,703 4400 Purks Drive Auburn Hills, MI (d) 602 3,410 4177A Varsity Drive Ann Arbor, MI (d) 90 536 6515 Cobb Drive Sterling Heights, MI (d) 305 1,753 32450 N Avis Drive Madison Heights, MI 281 1,590 32200 N Avis Drive Madison Heights, MI 408 2,311 32440-32442 Industrial Drive Madison Heights, MI 120 679 32450 Industrial Drive Madison Heights, MI 65 369 11813 Hubbard Livonia, MI 177 1,001 11844 Hubbard Livonia, MI 189 1,069 11866 Hubbard Livonia, MI 189 1,073 12050-12190 Hubbard (l) Livonia, MI 425 2,410 38200 Plymouth Road Livonia, MI 1,215 -- 38220 Plymouth Road Livonia, MI 756 -- 38300 Plymouth Road Livonia, MI 729 -- 12707 Eckles Road Plymouth, MI 255 1,445 9300-9328 Harrison Rd Romulus, MI 147 834 9330-9358 Harrison Rd Romulus, MI 81 456 28420-28448 Highland Rd Romulus, MI 143 809 28450-28478 Highland Rd Romulus, MI 81 461 28421-28449 Highland Rd Romulus, MI 109 617 28451-28479 Highland Rd Romulus, MI 107 608 28825-28909 Highland Rd Romulus, MI 70 395 28933-29017 Highland Rd Romulus, MI 112 634 28824-28908 Highland Rd Romulus, MI 134 760 28932-29016 Highland Rd Romulus, MI 123 694 9710-9734 Harrison Rd Romulus, MI 125 706 9740-9772 Harrison Rd Romulus, MI 132 749 9840-9868 Harrison Rd Romulus, MI 144 815 9800-9824 Harrison Rd Romulus, MI 117 664 29265-29285 Airport Dr Romulus, MI 140 794 29185-29225 Airport Dr Romulus, MI 140 792 29149-29165 Airport Dr Romulus, MI 216 1,225 29101-29115 Airport Dr Romulus, MI 130 738 29031-29045 Airport Dr Romulus, MI 124 704 29050-29062 Airport Dr Romulus, MI 127 718 29120-29134 Airport Dr Romulus, MI 161 912 29200-29214 Airport Dr Romulus, MI 170 963 9301-9339 Middlebelt Rd Romulus, MI 124 703 21405 Trolley Industrial Drive Taylor, MI 758 4,293 26980 Trolley Industrial Drive Taylor, MI 450 2,550 GRAND RAPIDS 3232 Kraft Avenue Grand Rapids, MI (e) 810 4,792 8181 Logistics Drive Grand Rapids, MI (e) 803 5,263 5062 Kendrick Court SE Grand Rapids, MI (e) 142 815 2 84th Street SW Byron Center, MI 117 685 100 84th Street SW Byron Center, MI 255 1,477 150 84th Street SW Byron Center, MI 47 286 511 76th Street SW Grand Rapids, MI 758 4,355 553 76th Street SW Grand Rapids, MI 32 191 555 76th Street SW Grand Rapids, MI 776 4,458 2925 Remico Avenue SW Grandville, MI 281 1,617 2935 Walkent Court NW Grand Rapids, MI 285 1,663 3300 Kraft Avenue SE Grand Rapids, MI 838 4,810 3366 Kraft Avenue SE Grand Rapids, MI 833 4,780 4939 Starr Avenue Grand Rapids, MI 117 681 5001 Kendrick Court SE Grand Rapids, MI 210 1,221 5050 Kendrick Court SE Grand Rapids, MI (c) 1,721 11,433 5015 52nd Street SE Grand Rapids, MI (c) 234 1,321 5025 28th Street Grand Rapids, MI 77 488 5079 33rd Street SE Grand Rapids, MI 525 3,018 5333 33rd Street SE Grand Rapids, MI 480 2,761 5130 Patterson Avenue SE Grand Rapids, MI 137 793 425 Gordon Industrial Court Grand Rapids, MI (d) 611 3,747 2851 Prairie Street Grandville, MI (d) 377 2,778 2945 Walkent Court Grand Rapids, MI (d) 310 2,074 537 76th Street Grand Rapids, MI (d) 255 1,456 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> 2965 Technology Drive 123 964 2,400 3,364 1451 Lincoln Avenue 452 305 2,149 2,454 4400 Purks Drive 112 612 3,512 4,124 4177A Varsity Drive 78 90 614 704 6515 Cobb Drive 29 305 1,782 2,087 32450 N Avis Drive 63 286 1,648 1,934 32200 N Avis Drive 94 411 2,402 2,813 32440-32442 Industrial Drive 83 123 759 882 32450 Industrial Drive 36 66 404 470 11813 Hubbard 42 180 1,040 1,220 11844 Hubbard 72 191 1,139 1,330 11866 Hubbard 28 191 1,099 1,290 12050-12190 Hubbard (l) 275 428 2,682 3,110 38200 Plymouth Road 4,610 1,268 4,557 5,825 38220 Plymouth Road 2,487 756 2,487 3,243 38300 Plymouth Road 3,268 729 3,268 3,997 12707 Eckles Road 106 267 1,539 1,806 9300-9328 Harrison Rd 118 154 945 1,099 9330-9358 Harrison Rd 90 85 542 627 28420-28448 Highland Rd 122 149 925 1,074 28450-28478 Highland Rd 180 85 637 722 28421-28449 Highland Rd 186 114 798 912 28451-28479 Highland Rd 98 112 701 813 28825-28909 Highland Rd 112 73 504 577 28933-29017 Highland Rd 117 117 746 863 28824-28908 Highland Rd 189 140 943 1,083 28932-29016 Highland Rd 99 128 788 916 9710-9734 Harrison Rd 131 130 832 962 9740-9772 Harrison Rd 120 138 863 1,001 9840-9868 Harrison Rd 112 150 921 1,071 9800-9824 Harrison Rd 88 123 746 869 29265-29285 Airport Dr 163 147 950 1,097 29185-29225 Airport Dr 226 146 1,012 1,158 29149-29165 Airport Dr 233 226 1,448 1,674 29101-29115 Airport Dr 214 136 946 1,082 29031-29045 Airport Dr 96 130 794 924 29050-29062 Airport Dr 91 133 803 936 29120-29134 Airport Dr 150 168 1,055 1,223 29200-29214 Airport Dr 240 178 1,195 1,373 9301-9339 Middlebelt Rd 111 130 808 938 21405 Trolley Industrial Drive 126 774 4,403 5,177 26980 Trolley Industrial Drive 96 463 2,633 3,096 GRAND RAPIDS 3232 Kraft Avenue 1,062 874 5,790 6,664 8181 Logistics Drive 675 864 5,877 6,741 5062 Kendrick Court SE 13 142 828 970 2 84th Street SW 287 117 972 1,089 100 84th Street SW 101 255 1,578 1,833 150 84th Street SW 45 47 331 378 511 76th Street SW 215 758 4,570 5,328 553 76th Street SW 22 32 213 245 555 76th Street SW 97 776 4,555 5,331 2925 Remico Avenue SW 8 281 1,625 1,906 2935 Walkent Court NW 46 285 1,709 1,994 3300 Kraft Avenue SE 130 838 4,940 5,778 3366 Kraft Avenue SE 380 833 5,160 5,993 4939 Starr Avenue 29 117 710 827 5001 Kendrick Court SE 38 210 1,259 1,469 5050 Kendrick Court SE 4,568 1,721 16,001 17,722 5015 52nd Street SE 34 234 1,355 1,589 5025 28th Street 17 77 505 582 5079 33rd Street SE 4 525 3,022 3,547 5333 33rd Street SE 48 480 2,809 3,289 5130 Patterson Avenue SE 20 137 813 950 425 Gordon Industrial Court 1,331 644 5,045 5,689 2851 Prairie Street 240 445 2,950 3,395 2945 Walkent Court 296 352 2,328 2,680 537 76th Street 330 258 1,783 2,041 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 2965 Technology Drive 172 1995 (q) 1451 Lincoln Avenue 142 1967 (q) 4400 Purks Drive 226 1987 (q) 4177A Varsity Drive 92 1993 (q) 6515 Cobb Drive 148 1984 (q) 32450 N Avis Drive 78 1974 (q) 32200 N Avis Drive 113 1973 (q) 32440-32442 Industrial Drive 44 1979 (q) 32450 Industrial Drive 19 1979 (q) 11813 Hubbard 50 1979 (q) 11844 Hubbard 85 1979 (q) 11866 Hubbard 52 1979 (q) 12050-12190 Hubbard (l) 131 1981 (q) 38200 Plymouth Road 93 1997 (q) 38220 Plymouth Road 1 1988 (q) 38300 Plymouth Road 1 1997 (q) 12707 Eckles Road 54 1990 (q) 9300-9328 Harrison Rd 26 1978 (q) 9330-9358 Harrison Rd 15 1978 (q) 28420-28448 Highland Rd 26 1979 (q) 28450-28478 Highland Rd 15 1979 (q) 28421-28449 Highland Rd 21 1980 (q) 28451-28479 Highland Rd 19 1980 (q) 28825-28909 Highland Rd 14 1981 (q) 28933-29017 Highland Rd 22 1982 (q) 28824-28908 Highland Rd 25 1982 (q) 28932-29016 Highland Rd 22 1982 (q) 9710-9734 Harrison Rd 27 1987 (q) 9740-9772 Harrison Rd 26 1987 (q) 9840-9868 Harrison Rd 27 1987 (q) 9800-9824 Harrison Rd 21 1987 (q) 29265-29285 Airport Dr 26 1983 (q) 29185-29225 Airport Dr 26 1983 (q) 29149-29165 Airport Dr 39 1984 (q) 29101-29115 Airport Dr 27 1985 (q) 29031-29045 Airport Dr 22 1985 (q) 29050-29062 Airport Dr 22 1986 (q) 29120-29134 Airport Dr 29 1986 (q) 29200-29214 Airport Dr 31 1985 (q) 9301-9339 Middlebelt Rd 23 1983 (q) 21405 Trolley Industrial Drive 91 1971 (q) 26980 Trolley Industrial Drive 22 1997 (q) GRAND RAPIDS 3232 Kraft Avenue 551 1988 (q) 8181 Logistics Drive 561 1990 (q) 5062 Kendrick Court SE 77 1987 (q) 2 84th Street SW 97 1986 (q) 100 84th Street SW 151 1979 (q) 150 84th Street SW 39 1977 (q) 511 76th Street SW 418 1986 (q) 553 76th Street SW 20 1985 (q) 555 76th Street SW 409 1987 (q) 2925 Remico Avenue SW 142 1988 (q) 2935 Walkent Court NW 151 1991 (q) 3300 Kraft Avenue SE 540 1987 (q) 3366 Kraft Avenue SE 483 1987 (q) 4939 Starr Avenue 72 1985 (q) 5001 Kendrick Court SE 118 1983 (q) 5050 Kendrick Court SE 1,312 1988 (q) 5015 52nd Street SE 118 1987 (q) 5025 28th Street 76 1967 (q) 5079 33rd Street SE 264 1990 (q) 5333 33rd Street SE 282 1991 (q) 5130 Patterson Avenue SE 78 1987 (q) 425 Gordon Industrial Court 411 1990 (q) 2851 Prairie Street 277 1989 (q) 2945 Walkent Court 219 1993 (q) 537 76th Street 117 1987 (q) </TABLE> S-6
81 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> HOUSTON 2102-2314 Edwards Street Houston, TX 348 1,973 4545 Eastpark Drive Houston, TX 235 1,331 3351 Ranch St Houston, TX 272 1,541 3851 Yale St Houston, TX 413 2,343 3337-3347 Ranch Street Houston, TX 227 1,287 8505 N Loop East Houston, TX 439 2,489 4749-4799 Eastpark Dr Houston, TX 594 3,368 4851 Homestead Road Houston, TX 491 2,782 3365-3385 Ranch Street Houston, TX 284 1,611 5050 Campbell Road Houston, TX 461 2,610 4300 Pine Timbers Houston, TX 489 2,769 10600 Hampstead Houston, TX 105 597 2300 Fairway Park Dr Houston, TX 86 488 7969 Blakenship Houston, TX 174 987 8001 Kempwood Houston, TX 98 558 7901 Blankenship Houston, TX 136 772 2500-2530 Fairway Park Drive Houston, TX 766 4,342 6550 Longpointe Houston, TX 362 2,050 1815 Turning Basin Dr Houston, TX 487 2,761 1819 Turning Basin Dr Houston, TX 231 1,308 4545 Mossford Dr Houston, TX 237 1,342 1805 Turning Basin Drive Houston, TX 564 3,197 7000 Empire Drive Houston, TX (k) 450 2,552 9777 West Gulfbank Drive Houston, TX (k) 1,217 6,899 INDIANAPOLIS 2900 N Shadeland Avenue Indianapolis, IN (f) 2,394 13,565 2400 N Shadeland Avenue Indianapolis, IN 142 802 2402 N Shadeland Avenue Indianapolis, IN 466 2,640 7901 West 21st Street Indianapolis, IN 1,064 6,027 1445 Brookville Way Indianapolis, IN (f) 459 2,603 1440 Brookville Way Indianapolis, IN (f) 665 3,770 1240 Brookville Way Indianapolis, IN (f) 247 1,402 1220 Brookville Way Indianapolis, IN (f) 223 40 1345 Brookville Way Indianapolis, IN (g) 586 3,321 1350 Brookville Way Indianapolis, IN (f) 205 1,161 1315 Sadlier Circle E Dr Indianapolis, IN (g) 57 322 1341 Sadlier Circle E Dr Indianapolis, IN (g) 131 743 1322-1438 Sadlier Circle E Dr Indianapolis, IN (g) 145 822 1327-1441 Sadlier Circle E Dr Indianapolis, IN (g) 218 1,234 1304 Sadlier Circle E Dr Indianapolis, IN (g) 71 405 1402 Sadlier Circle E Dr Indianapolis, IN (g) 165 934 1504 Sadlier Circle E Dr Indianapolis, IN (g) 219 1,238 1311 Sadlier Circle E Dr Indianapolis, IN (g) 54 304 1365 Sadlier Circle E Dr Indianapolis, IN (g) 121 688 1352-1354 Sadlier Circle E Dr Indianapolis, IN (g) 178 1,008 1335 Sadlier Circle E Dr Indianapolis, IN (g) 81 460 1327 Sadlier Circle E Dr Indianapolis, IN (g) 52 295 1425 Sadlier Circle E Dr Indianapolis, IN (g) 21 117 1230 Brookville Way Indianapolis, IN (f) 103 586 6951 E 30th St Indianapolis, IN 256 1,449 6701 E 30th St Indianapolis, IN 78 443 6737 E 30th St Indianapolis, IN 385 2,181 1225 Brookville Way Indianapolis, IN 60 -- 6555 E 30th St Indianapolis, IN 840 4,760 2432-2436 Shadeland Indianapolis, IN 212 1,199 8402-8440 E 33rd St Indianapolis, IN 222 1,260 8520-8630 E 33rd St Indianapolis, IN 326 1,848 8710-8768 E 33rd St Indianapolis, IN 175 993 3316-3346 N. Pagosa Court Indianapolis, IN 325 1,842 3331 Raton Court Indianapolis, IN 138 802 4430 Airport Expressway Indianapolis, IN 1,068 6,789 6751 E 30th St Indianapolis, IN 728 2,837 LONG ISLAND 1140 Motor Parkway Hauppauge, NY 1,034 5,861 10 Edison Street Amityville, NY 183 1,036 120 Secatogue Ave Farmingdale, NY 375 2,123 100 Lauman Lane Hicksville, NY 216 1,226 200 Finn Court Farmingdale, NY 619 3,506 243 Dixon Avenue Amityville, NY 93 527 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> HOUSTON 2102-2314 Edwards Street 71 359 2,034 2,392 4545 Eastpark Drive 33 240 1,360 1,599 3351 Ranch St 38 278 1,574 1,851 3851 Yale St 71 424 2,404 2,827 3337-3347 Ranch Street 36 233 1,318 1,550 8505 N Loop East 66 449 2,546 2,994 4749-4799 Eastpark Dr 107 611 3,459 4,069 4851 Homestead Road 87 504 2,857 3,360 3365-3385 Ranch Street 38 290 1,644 1,933 5050 Campbell Road 61 470 2,663 3,132 4300 Pine Timbers 69 499 2,829 3,327 10600 Hampstead 25 109 619 727 2300 Fairway Park Dr 22 90 507 596 7969 Blakenship 31 179 1,014 1,192 8001 Kempwood 20 102 575 676 7901 Blankenship 26 140 795 934 2500-2530 Fairway Park Drive 168 792 4,485 5,276 6550 Longpointe 53 370 2,096 2,465 1815 Turning Basin Dr 290 531 3,008 3,538 1819 Turning Basin Dr 133 251 1,422 1,672 4545 Mossford Dr 54 245 1,389 1,633 1805 Turning Basin Drive 341 616 3,487 4,102 7000 Empire Drive 23 454 2,571 3,025 9777 West Gulfbank Drive 59 1,226 6,949 8,175 INDIANAPOLIS 2900 N Shadeland Avenue 1,786 2,496 15,249 17,745 2400 N Shadeland Avenue 51 149 846 995 2402 N Shadeland Avenue 231 490 2,847 3,337 7901 West 21st Street 114 1,079 6,126 7,205 1445 Brookville Way 266 476 2,852 3,328 1440 Brookville Way 248 685 3,998 4,683 1240 Brookville Way 190 258 1,581 1,839 1220 Brookville Way 31 226 68 294 1345 Brookville Way 268 601 3,574 4,175 1350 Brookville Way 80 211 1,235 1,446 1315 Sadlier Circle E Dr 48 61 366 427 1341 Sadlier Circle E Dr 50 134 790 924 1322-1438 Sadlier Circle E Dr 104 152 919 1,071 1327-1441 Sadlier Circle E Dr 101 225 1,328 1,553 1304 Sadlier Circle E Dr 50 75 451 526 1402 Sadlier Circle E Dr 84 171 1,012 1,183 1504 Sadlier Circle E Dr 74 226 1,305 1,531 1311 Sadlier Circle E Dr 84 57 385 442 1365 Sadlier Circle E Dr 57 126 740 866 1352-1354 Sadlier Circle E Dr 88 184 1,090 1,274 1335 Sadlier Circle E Dr 49 85 505 590 1327 Sadlier Circle E Dr 25 55 317 372 1425 Sadlier Circle E Dr 24 23 139 162 1230 Brookville Way 46 109 626 735 6951 E 30th St 93 265 1,533 1,798 6701 E 30th St 40 82 479 561 6737 E 30th St 143 398 2,311 2,709 1225 Brookville Way 396 68 388 456 6555 E 30th St 427 484 5,543 6,027 2432-2436 Shadeland 178 230 1,359 1,589 8402-8440 E 33rd St 55 230 1,307 1,537 8520-8630 E 33rd St 249 336 2,087 2,423 8710-8768 E 33rd St 37 187 1,018 1,205 3316-3346 N. Pagosa Court 140 335 1,972 2,307 3331 Raton Court 40 144 836 980 4430 Airport Expressway 900 1,238 7,519 8,757 6751 E 30th St 106 741 2,930 3,671 LONG ISLAND 1140 Motor Parkway 157 1,051 6,001 7,052 10 Edison Street 74 188 1,105 1,293 120 Secatogue Ave 65 382 2,181 2,563 100 Lauman Lane 66 222 1,286 1,508 200 Finn Court 132 630 3,627 4,257 243 Dixon Avenue 44 96 568 664 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> HOUSTON 2102-2314 Edwards Street 4 1961 (q) 4545 Eastpark Drive 3 1972 (q) 3351 Ranch St 3 1970 (q) 3851 Yale St 5 1971 (q) 3337-3347 Ranch Street 3 1970 (q) 8505 N Loop East 5 1981 (q) 4749-4799 Eastpark Dr 7 1979 (q) 4851 Homestead Road 6 1973 (q) 3365-3385 Ranch Street 3 1970 (q) 5050 Campbell Road 6 1970 (q) 4300 Pine Timbers 6 1980 (q) 10600 Hampstead 1 1974 (q) 2300 Fairway Park Dr 1 1974 (q) 7969 Blakenship 2 1972 (q) 8001 Kempwood 1 1972 (q) 7901 Blankenship 2 1972 (q) 2500-2530 Fairway Park Drive 9 1974 (q) 6550 Longpointe 4 1980 (q) 1815 Turning Basin Dr 6 1980 (q) 1819 Turning Basin Dr 3 1980 (q) 4545 Mossford Dr 3 1975 (q) 1805 Turning Basin Drive 7 1980 (q) 7000 Empire Drive 5 1980 (q) 9777 West Gulfbank Drive 14 1980 (q) INDIANAPOLIS 2900 N Shadeland Avenue 721 1957/1992 (q) 2400 N Shadeland Avenue 11 1970 (q) 2402 N Shadeland Avenue 36 1970 (q) 7901 West 21st Street 51 1985 (q) 1445 Brookville Way 138 1989 (q) 1440 Brookville Way 181 1990 (q) 1240 Brookville Way 86 1990 (q) 1220 Brookville Way 3 1990 (q) 1345 Brookville Way 166 1992 (q) 1350 Brookville Way 56 1994 (q) 1315 Sadlier Circle E Dr 16 1970/1992 (q) 1341 Sadlier Circle E Dr 36 1971/1992 (q) 1322-1438 Sadlier Circle E Dr 44 1971/1992 (q) 1327-1441 Sadlier Circle E Dr 66 1992 (q) 1304 Sadlier Circle E Dr 22 1971/1992 (q) 1402 Sadlier Circle E Dr 46 1970/1992 (q) 1504 Sadlier Circle E Dr 59 1971/1992 (q) 1311 Sadlier Circle E Dr 26 1971/1992 (q) 1365 Sadlier Circle E Dr 33 1971/1992 (q) 1352-1354 Sadlier Circle E Dr 49 1970/1992 (q) 1335 Sadlier Circle E Dr 23 1971/1992 (q) 1327 Sadlier Circle E Dr 15 1971/1992 (q) 1425 Sadlier Circle E Dr 6 1971/1992 (q) 1230 Brookville Way 28 1995 (q) 6951 E 30th St 70 1995 (q) 6701 E 30th St 22 1995 (q) 6737 E 30th St 106 1995 (q) 1225 Brookville Way 5 1997 (q) 6555 E 30th St 210 1969/1981 (q) 2432-2436 Shadeland 50 1968 (q) 8402-8440 E 33rd St 41 1977 (q) 8520-8630 E 33rd St 75 1976 (q) 8710-8768 E 33rd St 33 1979 (q) 3316-3346 N. Pagosa Court 61 1977 (q) 3331 Raton Court 26 1979 (q) 4430 Airport Expressway 209 1970 (q) 6751 E 30th St 12 1997 (q) LONG ISLAND 1140 Motor Parkway 149 1978 (q) 10 Edison Street 27 1971 (q) 120 Secatogue Ave 54 1957 (q) 100 Lauman Lane 32 1968 (q) 200 Finn Court 89 1965 (q) 243 Dixon Avenue 14 1978 (q) </TABLE> S-7
82 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ----------------------------- BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 717 Broadway Avenue Holbrook, NY 790 4,474 725 Broadway Avenue Holbrook, NY 643 3,644 270 Duffy Avenue Hicksville, NY 1,305 7,393 280 Duffy Avenue Hicksville, NY 478 2,707 575 Underhill Boulevard Syosset, NY 2,714 15,382 5 Sidney Court Lindenhurst, NY 148 840 7 Sidney Court Lindenhurst, NY 172 975 450 Commack Road Deer Park, NY 304 1,720 99 Layfayette Drive Syosset, NY 1,607 9,106 65 East Bethpage Road Plainview, NY 198 1,122 171 Milbar Boulevard Farmingdale, NY 454 2,574 95 Horseblock Road Yaphank, NY 1,313 7,439 151-171 East 2nd Street Huntington, NY 497 2,815 171-175 East 2nd Street Huntington, NY 493 2,792 35 Bloomingdale Road Hicksville, NY 190 1,076 15-39 Tec Street Hicksville, NY 164 930 100 Tec Street Hicksville, NY 237 1,340 51-89 Tec Street Hicksville, NY 207 1,171 502 Old Country Road Hicksville, NY 95 536 80-98 Tec Street Hicksville, NY 123 700 201-233 Park Avenue Hicksville, NY 349 1,979 6851 Jericho Turnpike Syosset, NY 1,570 8,896 One Fairchild Court Plainview, NY 315 1,786 79 Express Street Plainview, NY 417 2,363 92 Central Avenue Farmingdale, NY 837 4,745 160 Engineer Drive Hicksville, NY 148 836 260 Engineers Drive Hicksville, NY 264 1,494 87-119 Engineers Dr (l) Hicksville, NY 181 1,023 950-970 South Broadway Hicksville, NY 250 1,418 290 Duffy Avenue Hicksville, NY (h) 383 2,171 185 Price Parkway Farmingdale, NY 611 3,464 62 Alpha Plaza Hicksville, NY 155 877 90 Alpha Plaza Hicksville, NY 127 717 325 Duffy Avenue Hicksville, NY 480 2,720 939 Motor Parkway Hauppauge, NY 105 596 2070 5th Avenue Ronkonkoma, NY 383 2,171 200 13th Avenue Ronkonkoma, NY 313 1,776 100 13th Avenue Ronkonkoma, NY 348 1,973 1 Comac Loop Ronkonkoma, NY 348 1,973 80 13th Avenue Ronkonkoma, NY 418 2,368 90 13th Avenue Ronkonkoma, NY 383 2,171 33 Comac Loop Ronkonkoma, NY 383 2,171 101-125 Comac Street Ronkonkoma, NY 905 5,131 MILWAUKEE N25 W23050 Paul Road Pewaukee, WI 474 2,723 N25 W23255 Paul Road Pewaukee, WI 571 3,270 N27 W23293 Roundy Drive Pewaukee, WI 412 2,837 6523 N. Sydney Place Glendale, WI 172 976 8800 W Bradley Milwaukee, WI 375 2,125 1435 North 113th St Wauwatosa, WI 300 1,699 11217-43 W. Becher St West Allis, WI 148 841 2152 S 114th Street West Allis, WI 326 1,846 4560 N. 124th Street Wauwatosa, WI 118 667 12221 W. Feerick Street Wauwatosa, WI 210 1,190 MINNEAPOLIS 2700 Freeway Boulevard Brooklyn Center, MN (e) 392 2,318 6507-6545 Cecilia Circle Bloomington, MN 357 1,320 6403-6545 Cecilia Drive Bloomington, MN 366 1,363 1275 Corporate Center Drive Eagan, MN 80 357 1279 Corporate Center Drive Eagan, MN 105 357 2815 Eagandale Boulevard Eagan, MN 80 357 6201 West 111th Street Bloomington, MN (c) 1,358 8,622 6925-6943 Washington Avenue Edina, MN 117 504 6955-6973 Washington Avenue Edina, MN 117 486 7251-7267 Washington Avenue Edina, MN 129 382 7301-7325 Washington Avenue Edina, MN 174 391 7101 Winnetka Avenue North Brooklyn Park, MN (c) 2,195 6,084 7600 Golden Triangle Drive Eden Prairie, MN 566 1,394 7830-7848 12th Avenue South Bloomington, MN 376 1,346 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> 717 Broadway Avenue 135 805 4,594 5,399 725 Broadway Avenue 118 656 3,749 4,405 270 Duffy Avenue 156 1,319 7,535 8,854 280 Duffy Avenue 47 483 2,749 3,232 575 Underhill Boulevard 301 2,741 15,656 18,397 5 Sidney Court 63 152 899 1,051 7 Sidney Court 46 176 1,017 1,193 450 Commack Road 80 310 1,794 2,104 99 Layfayette Drive 221 1,629 9,305 10,934 65 East Bethpage Road 44 202 1,162 1,364 171 Milbar Boulevard 88 461 2,655 3,116 95 Horseblock Road 227 1,331 7,648 8,979 151-171 East 2nd Street 66 503 2,875 3,378 171-175 East 2nd Street 80 498 2,867 3,365 35 Bloomingdale Road 61 194 1,133 1,327 15-39 Tec Street 54 167 981 1,148 100 Tec Street 33 240 1,370 1,610 51-89 Tec Street 38 210 1,206 1,416 502 Old Country Road 20 97 554 651 80-98 Tec Street 23 126 720 846 201-233 Park Avenue 70 354 2,044 2,398 6851 Jericho Turnpike 231 1,586 9,111 10,697 One Fairchild Court 80 322 1,859 2,181 79 Express Street 69 425 2,424 2,849 92 Central Avenue 111 846 4,847 5,693 160 Engineer Drive 45 152 877 1,029 260 Engineers Drive 58 270 1,546 1,816 87-119 Engineers Dr (l) 57 185 1,076 1,261 950-970 South Broadway 117 256 1,529 1,785 290 Duffy Avenue 258 389 2,423 2,812 185 Price Parkway 98 622 3,551 4,173 62 Alpha Plaza 29 159 902 1,061 90 Alpha Plaza 31 130 745 875 325 Duffy Avenue 53 488 2,765 3,253 939 Motor Parkway 47 112 636 748 2070 5th Avenue 18 386 2,186 2,572 200 13th Avenue 18 316 1,791 2,107 100 13th Avenue 19 351 1,989 2,340 1 Comac Loop 19 351 1,989 2,340 80 13th Avenue 22 421 2,387 2,808 90 13th Avenue 24 387 2,191 2,578 33 Comac Loop 20 386 2,188 2,574 101-125 Comac Street 43 912 5,167 6,079 MILWAUKEE N25 W23050 Paul Road 12 474 2,735 3,209 N25 W23255 Paul Road 1 571 3,271 3,842 N27 W23293 Roundy Drive 1 412 2,838 3,250 6523 N. Sydney Place 140 176 1,112 1,288 8800 W Bradley 130 388 2,242 2,630 1435 North 113th St 99 310 1,788 2,098 11217-43 W. Becher St 59 155 893 1,048 2152 S 114th Street 97 339 1,930 2,269 4560 N. 124th Street 84 129 740 869 12221 W. Feerick Street 81 221 1,260 1,481 MINNEAPOLIS 2700 Freeway Boulevard 422 415 2,717 3,132 6507-6545 Cecilia Circle 352 386 1,643 2,029 6403-6545 Cecilia Drive 446 395 1,780 2,175 1275 Corporate Center Drive 41 93 385 478 1279 Corporate Center Drive 90 109 443 552 2815 Eagandale Boulevard 172 97 512 609 6201 West 111th Street 3,763 1,499 12,244 13,743 6925-6943 Washington Avenue 538 237 922 1,159 6955-6973 Washington Avenue 386 191 798 989 7251-7267 Washington Avenue 422 182 751 933 7301-7325 Washington Avenue 476 193 848 1,041 7101 Winnetka Avenue North 2,141 2,229 8,191 10,420 7600 Golden Triangle Drive 1,269 615 2,614 3,229 7830-7848 12th Avenue South 206 381 1,547 1,928 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 717 Broadway Avenue 114 1967 (q) 725 Broadway Avenue 93 1967 (q) 270 Duffy Avenue 188 1956 (q) 280 Duffy Avenue 68 1956 (q) 575 Underhill Boulevard 384 1967 (q) 5 Sidney Court 22 1962 (q) 7 Sidney Court 25 1964 (q) 450 Commack Road 44 1964 (q) 99 Layfayette Drive 227 1964 (q) 65 East Bethpage Road 29 1960 (q) 171 Milbar Boulevard 66 1961 (q) 95 Horseblock Road 192 1971 (q) 151-171 East 2nd Street 71 1968 (q) 171-175 East 2nd Street 71 1969 (q) 35 Bloomingdale Road 30 1962 (q) 15-39 Tec Street 26 1965 (q) 100 Tec Street 34 1965 (q) 51-89 Tec Street 35 1965 (q) 502 Old Country Road 14 1965 (q) 80-98 Tec Street 18 1965 (q) 201-233 Park Avenue 50 1962 (q) 6851 Jericho Turnpike 240 1969 (q) One Fairchild Court 47 1959 (q) 79 Express Street 60 1972 (q) 92 Central Avenue 120 1961 (q) 160 Engineer Drive 21 1966 (q) 260 Engineers Drive 38 1966 (q) 87-119 Engineers Dr (l) 27 1966 (q) 950-970 South Broadway 40 1966 (q) 290 Duffy Avenue 59 1974 (q) 185 Price Parkway 88 1969 (q) 62 Alpha Plaza 6 1968 (q) 90 Alpha Plaza 5 1969 (q) 325 Duffy Avenue 6 1970 (q) 939 Motor Parkway 1 1977 (q) 2070 5th Avenue 5 1975 (q) 200 13th Avenue 4 1979 (q) 100 13th Avenue 4 1979 (q) 1 Comac Loop 4 1980 (q) 80 13th Avenue 5 1983 (q) 90 13th Avenue 5 1982 (q) 33 Comac Loop 5 1983 (q) 101-125 Comac Street 11 1985 (q) MILWAUKEE N25 W23050 Paul Road 171 1989 (q) N25 W23255 Paul Road 286 1987 (q) N27 W23293 Roundy Drive 247 1989 (q) 6523 N. Sydney Place 57 1978 (q) 8800 W Bradley 88 1982 (q) 1435 North 113th St 56 1993 (q) 11217-43 W. Becher St 13 1979 (q) 2152 S 114th Street 28 1980 (q) 4560 N. 124th Street 11 1976 (q) 12221 W. Feerick Street 16 1971 (q) MINNEAPOLIS 2700 Freeway Boulevard 291 1981 (q) 6507-6545 Cecilia Circle 653 1980 (q) 6403-6545 Cecilia Drive 704 1980 (q) 1275 Corporate Center Drive 128 1990 (q) 1279 Corporate Center Drive 150 1990 (q) 2815 Eagandale Boulevard 147 1990 (q) 6201 West 111th Street 1,808 1987 (q) 6925-6943 Washington Avenue 489 1972 (q) 6955-6973 Washington Avenue 431 1972 (q) 7251-7267 Washington Avenue 399 1972 (q) 7301-7325 Washington Avenue 448 1972 (q) 7101 Winnetka Avenue North 3,088 1990 (q) 7600 Golden Triangle Drive 960 1989 (q) 7830-7848 12th Avenue South 661 1978 (q) </TABLE> S-8
83 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ----------------------------- BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 7850-7890 12th Avenue South Bloomington, MN 347 1,242 7900 Main Street Northeast Fridley, MN 480 1,604 7901 Beech Street Northeast Fridley, MN 405 1,554 9901 West 74th Street Eden Prairie, MN 621 3,289 10175-10205 Crosstown Circle Eden Prairie, MN 132 686 11201 Hampshire Avenue South Bloomington, MN 495 1,035 12220-12222 Nicollet Avenue Burnsville, MN 105 425 12250-12268 Nicollet Avenue Burnsville, MN 260 1,054 12224-12226 Nicollet Avenue Burnsville, MN 190 770 305 2nd Street Northwest New Brighton, MN 460 2,744 953 Westgate Drive St. Paul, MN 193 1,178 980 Lone Oak Road Eagan, MN 683 4,103 990 Lone Oak Road Eagan, MN 883 5,575 1030 Lone Oak Road Eagan, MN 456 2,703 1060 Lone Oak Road Eagan, MN 624 3,700 5400 Nathan Lane Plymouth, MN 749 4,461 6464 Sycamore Court Maple Grove, MN 457 2,730 6701 Parkway Circle Brooklyn Center, MN 350 2,131 6601 Shingle Creek Parkway Brooklyn Center, MN 411 2,813 10120 W 76th Street Eden Prairie, MN 315 1,804 7615 Golden Triangle Eden Prairie, MN 268 1,532 7625 Golden Triangle Eden Prairie, MN 415 2,375 2605 Fernbrook Lane North Plymouth, MN 443 2,533 12155 Nicollet Ave. Burnsville, MN 286 - 6655 Wedgewood Road Maple Grove, MN (d) 1,466 8,342 900 Apollo Road Eagan, MN (d) 1,029 5,855 7316 Aspen Lane Brooklyn Park, MN (d) 368 2,156 6707 Shingle Creek Parkway Brooklyn Center, MN (d) 376 2,101 9401 73rd Avenue North Brooklyn Park, MN 504 2,856 1905 W Country Road C Roseville, MN 402 2,278 2720 Arthur Street Roseville, MN 824 4,671 10205 51st Avenue North Plymouth, MN 180 1,020 4100 Peavey Road Chaska, MN 399 2,261 11300 Hamshire Ave South Bloomington, MN 527 2,985 375 Rivertown Drive Woodbury, MN 1,083 6,135 5205 Highway 169 Plymouth, MN 446 2,525 6451-6595 Citywest Parkway Eden Prairie, MN 525 2,975 7100-7198 Shady Oak Rd (m) Eden Prairie, MN 1,118 6,333 1565 First Avenue NW New Brighton, MN 485 2,750 7125 Northland Terrace Brooklyn Park, MN 660 3,740 7102 Winnetka Brooklyn Park, MN 1,334 - 6900 Shady Oak Road Eden Prairie, MN 310 1,756 7550-7588 Washington Square Eden Prairie, MN 153 867 7500-7546 Washington Square Eden Prairie, MN 229 1,300 5240-5300 Valley Industrial Blvd S Shakopee, MN 362 2,049 6477-6525 City West Parkway Eden Prairie, MN 810 4,590 NASHVILLE 1621 Heil Quaker Boulevard Nashville, TN (e) 413 2,348 417 Harding Industrial Drive Nashville, TN (c) 1,006 6,586 520 Harding Industrial Drive (l) Nashville, TN (c) 645 3,382 3099 Barry Drive Portland, TN 418 2,368 3150 Barry Drive Portland, TN 941 5,333 1650 Elm Hill Pike Nashville, TN 329 1,867 1821 Air Lane Drive Nashville, TN 151 858 1102 Appleton Drive Nashville, TN 154 873 1920 Air Lane Drive Nashville, TN 250 1,415 1931 Air Lane Drive Nashville, TN 491 2,785 470 Metroplex Drive (l) Nashville, TN 619 3,507 1150 Antiock Pike Nashville, TN 667 3,748 5599 Highway 31 West Portland, TN 564 3,196 NEW JERSEY 116 Lehigh Drive Fairfield, NJ 851 4,823 60 Ethel Road West Piscataway, NJ 252 1,426 70 Ethel Road West Piscataway, NJ 431 2,443 105 Neptune Boulevard Neptune, NJ 245 1,386 140 Hanover Avenue Hanover, NJ 457 2,588 601-629 Montrose Avenue South Plainfield, NJ 487 2,762 3 Marlen Hamilton, NJ 71 404 </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------ --------- <C> <C> <C> <C> <C> 7850-7890 12th Avenue South 220 358 1,451 1,809 7900 Main Street Northeast 499 497 2,086 2,583 7901 Beech Street Northeast 442 428 1,973 2,401 9901 West 74th Street 1,961 639 5,232 5,871 10175-10205 Crosstown Circle 102 174 746 920 11201 Hampshire Avenue South 848 501 1,877 2,378 12220-12222 Nicollet Avenue 47 114 463 577 12250-12268 Nicollet Avenue 96 284 1,126 1,410 12224-12226 Nicollet Avenue 102 207 855 1,062 305 2nd Street Northwest 41 460 2,785 3,245 953 Westgate Drive 2 193 1,180 1,373 980 Lone Oak Road 45 683 4,148 4,831 990 Lone Oak Road 119 883 5,694 6,577 1030 Lone Oak Road 45 456 2,748 3,204 1060 Lone Oak Road 137 624 3,837 4,461 5400 Nathan Lane 44 749 4,505 5,254 6464 Sycamore Court 103 457 2,833 3,290 6701 Parkway Circle 344 377 2,448 2,825 6601 Shingle Creek Parkway 495 502 3,217 3,719 10120 W 76th Street 98 318 1,899 2,217 7615 Golden Triangle 342 268 1,874 2,142 7625 Golden Triangle 143 415 2,518 2,933 2605 Fernbrook Lane North 315 445 2,846 3,291 12155 Nicollet Ave. 1,678 288 1,676 1,964 6655 Wedgewood Road 142 1,466 8,484 9,950 900 Apollo Road 194 1,030 6,048 7,078 7316 Aspen Lane 180 377 2,327 2,704 6707 Shingle Creek Parkway 364 379 2,462 2,841 9401 73rd Avenue North 73 512 2,921 3,433 1905 W Country Road C 65 409 2,336 2,745 2720 Arthur Street 77 832 4,740 5,572 10205 51st Avenue North 69 187 1,082 1,269 4100 Peavey Road 124 415 2,369 2,784 11300 Hamshire Ave South 223 541 3,194 3,735 375 Rivertown Drive 676 1,503 6,391 7,894 5205 Highway 169 2,157 739 4,389 5,128 6451-6595 Citywest Parkway 237 538 3,199 3,737 7100-7198 Shady Oak Rd (m) 485 1,149 6,787 7,936 1565 First Avenue NW 173 496 2,912 3,408 7125 Northland Terrace 96 673 3,823 4,496 7102 Winnetka - 1,334 -- 1,334 6900 Shady Oak Road 219 340 1,945 2,285 7550-7588 Washington Square 29 157 891 1,049 7500-7546 Washington Square 40 235 1,333 1,569 5240-5300 Valley Industrial Blvd S 93 371 2,132 2,504 6477-6525 City West Parkway 70 820 4,650 5,470 NASHVILLE 1621 Heil Quaker Boulevard 413 430 2,744 3,174 417 Harding Industrial Drive 880 1,116 7,356 8,472 520 Harding Industrial Drive (l) 1,092 699 4,420 5,119 3099 Barry Drive 52 424 2,414 2,838 3150 Barry Drive 329 987 5,616 6,603 1650 Elm Hill Pike 39 333 1,902 2,235 1821 Air Lane Drive 12 153 868 1,021 1102 Appleton Drive 9 153 883 1,036 1920 Air Lane Drive 18 252 1,431 1,683 1931 Air Lane Drive 49 497 2,828 3,325 470 Metroplex Drive (l) 44 625 3,545 4,170 1150 Antiock Pike 45 669 3,791 4,460 5599 Highway 31 West 64 571 3,253 3,824 NEW JERSEY 116 Lehigh Drive 98 862 4,910 5,772 60 Ethel Road West 126 264 1,540 1,804 70 Ethel Road West 143 451 2,566 3,017 105 Neptune Boulevard 70 255 1,446 1,701 140 Hanover Avenue 325 475 2,895 3,370 601-629 Montrose Avenue 186 514 2,921 3,435 3 Marlen 32 74 433 507 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 7850-7890 12th Avenue South 653 1978 (q) 7900 Main Street Northeast 996 1973 (q) 7901 Beech Street Northeast 788 1975 (q) 9901 West 74th Street 913 1983/88 (q) 10175-10205 Crosstown Circle 282 1980 (q) 11201 Hampshire Avenue South 732 1986 (q) 12220-12222 Nicollet Avenue 159 1989/90 (q) 12250-12268 Nicollet Avenue 412 1989/90 (q) 12224-12226 Nicollet Avenue 300 1989/90 (q) 305 2nd Street Northwest 261 1991 (q) 953 Westgate Drive 105 1991 (q) 980 Lone Oak Road 406 1992 (q) 990 Lone Oak Road 730 1989 (q) 1030 Lone Oak Road 263 1988 (q) 1060 Lone Oak Road 400 1988 (q) 5400 Nathan Lane 402 1990 (q) 6464 Sycamore Court 259 1990 (q) 6701 Parkway Circle 239 1987 (q) 6601 Shingle Creek Parkway 339 1985 (q) 10120 W 76th Street 136 1987 (q) 7615 Golden Triangle 266 1987 (q) 7625 Golden Triangle 223 1987 (q) 2605 Fernbrook Lane North 266 1987 (q) 12155 Nicollet Ave. 89 1995 (q) 6655 Wedgewood Road 713 1989 (q) 900 Apollo Road 427 1970 (q) 7316 Aspen Lane 166 1978 (q) 6707 Shingle Creek Parkway 275 1986 (q) 9401 73rd Avenue North 128 1995 (q) 1905 W Country Road C 102 1993 (q) 2720 Arthur Street 207 1995 (q) 10205 51st Avenue North 49 1990 (q) 4100 Peavey Road 93 1988 (q) 11300 Hamshire Ave South 214 1983 (q) 375 Rivertown Drive 207 1996 (q) 5205 Highway 169 122 1960 (q) 6451-6595 Citywest Parkway 129 1984 (q) 7100-7198 Shady Oak Rd (m) 204 1982 (q) 1565 First Avenue NW 60 1978 (q) 7125 Northland Terrace 79 1996 (q) 7102 Winnetka 1 (s) 6900 Shady Oak Road 36 1980 (q) 7550-7588 Washington Square 24 1975 (q) 7500-7546 Washington Square 36 1975 (q) 5240-5300 Valley Industrial Blvd S 58 1973 (q) 6477-6525 City West Parkway 29 1984 (q) NASHVILLE 1621 Heil Quaker Boulevard 213 1975 (q) 417 Harding Industrial Drive 911 1972 (q) 520 Harding Industrial Drive (l) 413 1975 (q) 3099 Barry Drive 75 1995 (q) 3150 Barry Drive 175 1993 (q) 1650 Elm Hill Pike 12 1984 (q) 1821 Air Lane Drive 5 1984 (q) 1102 Appleton Drive 6 1984 (q) 1920 Air Lane Drive 9 1985 (q) 1931 Air Lane Drive 18 1984 (q) 470 Metroplex Drive (l) 22 1986 (q) 1150 Antiock Pike 24 1987 (q) 5599 Highway 31 West 101 1995 (q) NEW JERSEY 116 Lehigh Drive 122 1986 (q) 60 Ethel Road West 19 1982 (q) 70 Ethel Road West 32 1979 (q) 105 Neptune Boulevard 18 1989 (q) 140 Hanover Avenue 37 1964/1988 (q) 601-629 Montrose Avenue 36 1974 (q) 3 Marlen 1 1981 (q) </TABLE> S-9
84 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ----------------------------- BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> 5 Marlen Hamilton, NJ 116 655 7 Marlen Hamilton, NJ 128 728 8 Marlen Hamilton, NJ 230 1,302 15 Marlen Hamilton, NJ 53 302 17 Marlen Hamilton, NJ 104 588 1 South Gold Drive Hamilton, NJ 106 599 2 South Gold Drive Hamilton, NJ 200 1,131 5 South Gold Drive Hamilton, NJ 106 602 6 South Gold Drive Hamilton, NJ 59 332 7 South Gold Drive Hamilton, NJ 32 182 8 South Gold Drive Hamilton, NJ 103 584 9 South Gold Drive Hamilton, NJ 60 342 11 South Gold Drive Hamilton, NJ 183 1,039 12 South Gold Drive Hamilton, NJ 84 475 9 Princess Road Lawrenceville, NJ 221 1,254 11 Princess Road Lawrenceville, NJ 491 2,780 15 Princess Road Lawrenceville, NJ 234 1,328 17 Princess Road Lawrenceville, NJ 342 1,936 220 Hanover Avenue Hanover, NJ 1,361 7,715 244 Shefield Street Mountainside, NJ 201 1,141 30 Troy Road Hanover, NJ 128 727 15 Leslie Court Hanover, NJ 126 716 20 Leslie Court Hanover, NJ 84 474 25 Leslie Court Hanover, NJ 512 2,899 130 Algonquin Parkway Hanover, NJ 157 888 150 Algonquin Parkway Hanover, NJ 85 479 55 Locust Avenue Roseland, NJ 535 3,034 31 West Forest Street (l) Englewood, NJ 941 5,333 25 World's Fair Drive Franklin, NJ 285 1,616 14 World's Fair Drive Franklin, NJ 483 2,735 16 World's Fair Drive Franklin, NJ 174 988 18 World's Fair Drive Franklin, NJ 123 699 23 World's Fair Drive Franklin, NJ 134 758 12 World's Fair Drive Franklin, NJ 572 3,240 1 World's Fair Drive Franklin, NJ 632 3,581 2 World's Fair Drive Franklin, NJ 625 3,539 49 Napoleon Court Franklin, NJ 230 1,306 50 Napoleon Court Franklin, NJ 149 842 22 World's Fair Drive Franklin, NJ 364 2,064 26 World's Fair Drive Franklin, NJ 361 2,048 24 World's Fair Drive Franklin, NJ 347 1,968 12 Wright Way Oakland, NJ 410 2,321 NEW ORLEANS 520-524 Elmwood Park Blvd (l) Jefferson, LA 926 5,248 125 Mallard St St. Rose, LA (j) 103 586 107 Mallard St. Rose, LA (j) 164 928 125 James Drive West St. Rose, LA (j) 246 1,392 161 James Drive West St. Rose, LA 298 1,687 150 James Drive East St. Rose, LA 399 2,258 115 James Drive West St. Rose, LA (j) 163 922 100 James Drive St. Rose, LA (j) 430 2,435 143 Mallard St St. Rose, LA (j) 143 812 160 James Drive East St. Rose, LA (j) 102 580 190 James Drive East St. Rose, LA (j) 205 1,160 120 Mallard St St. Rose, LA (j) 348 1,971 110 James Drive West St. Rose, LA (j) 143 812 150 Canvasback Dr St. Rose, LA 165 937 PHOENIX 7340 South Kyrene Rd Tempe, AZ 1,495 8,469 7350 S Kyrene Road Tempe, AZ 818 4,634 7360 South Kyrene Rd Tempe, AZ 508 2,876 7343 South Hardy Drive Tempe, AZ 1,119 6,341 7333 South Hardy Drive Tempe, AZ 1,549 8,779 SALT LAKE 2255 South 300 West (o) Salt Lake City, UT 618 3,504 512 Lawndale Drive (p) Salt Lake City, UT 2,779 15,749 </TABLE> <TABLE> <CAPTION> COSTS GROSMOUNTS CARRIED CAPITALIZED AT CLOSF PERIOD 12/31/97 SUBSEQUENT TO ----------------------------------------------------------- ACQUISITION ILDING AND BUILDING ADDRESS OR COMPLETION LAND PROVEMENTS TOTAL - ---------------- ------------- ----------- ---------- ------------- <C> <C> <C> <C> 5 Marlen 40 121 690 811 7 Marlen 52 135 773 908 8 Marlen 41 234 1,339 1,573 15 Marlen 31 57 329 386 17 Marlen 44 110 626 736 1 South Gold Drive 43 112 636 748 2 South Gold Drive 67 209 1,189 1,398 5 South Gold Drive 54 113 649 762 6 South Gold Drive 32 63 360 423 7 South Gold Drive 26 36 204 240 8 South Gold Drive 43 109 621 730 9 South Gold Drive 34 65 371 436 11 South Gold Drive 65 192 1,095 1,287 12 South Gold Drive 65 89 535 624 9 Princess Road 72 231 1,316 1,547 11 Princess Road 152 510 2,913 3,423 15 Princess Road 270 244 1,588 1,832 17 Princess Road 105 353 2,030 2,383 220 Hanover Avenue 410 1,419 8,067 9,486 244 Shefield Street 63 210 1,195 1,405 30 Troy Road 38 133 760 893 15 Leslie Court 42 132 752 884 20 Leslie Court 32 88 502 590 25 Leslie Court 112 526 2,997 3,523 130 Algonquin Parkway 46 163 928 1,091 150 Algonquin Parkway 31 89 506 595 55 Locust Avenue 171 559 3,181 3,740 31 West Forest Street (l) 239 974 5,539 6,513 25 World's Fair Drive 82 297 1,686 1,983 14 World's Fair Drive 206 503 2,921 3,424 16 World's Fair Drive 75 183 1,054 1,237 18 World's Fair Drive 44 129 737 866 23 World's Fair Drive 47 140 799 939 12 World's Fair Drive 150 593 3,369 3,962 1 World's Fair Drive 156 654 3,715 4,369 2 World's Fair Drive 192 650 3,706 4,356 49 Napoleon Court 49 238 1,347 1,585 50 Napoleon Court 40 154 877 1,031 22 World's Fair Drive 77 375 2,130 2,505 26 World's Fair Drive 113 377 2,145 2,522 24 World's Fair Drive 108 361 2,062 2,423 12 Wright Way 107 424 2,414 2,838 NEW ORLEANS 520-524 Elmwood Park Blvd (l) 149 949 5,375 6,323 125 Mallard St 33 109 614 722 107 Mallard 49 171 971 1,141 125 James Drive West 76 257 1,458 1,714 161 James Drive West 40 304 1,722 2,025 150 James Drive East 70 409 2,319 2,727 115 James Drive West 53 171 968 1,138 100 James Drive 137 451 2,552 3,002 143 Mallard St 49 151 854 1,004 160 James Drive East 37 108 612 719 190 James Drive East 64 215 1,215 1,429 120 Mallard St 113 365 2,068 2,432 110 James Drive West 45 150 851 1,000 150 Canvasback Dr 30 170 963 1,132 PHOENIX 7340 South Kyrene Rd 29 1,499 8,494 9,993 7350 S Kyrene Road 24 821 4,655 5,476 7360 South Kyrene Rd 21 511 2,894 3,405 7343 South Hardy Drive 48 1,126 6,382 7,508 7333 South Hardy Drive 38 1,555 8,811 10,366 SALT LAKE 2255 South 300 West (o) 27 622 3,527 4,149 512 Lawndale Drive (p) 113 2,797 15,844 18,641 </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> 5 Marlen 8 1981 (q) 7 Marlen 9 1982 (q) 8 Marlen 3 1982 (q) 15 Marlen 4 1982 (q) 17 Marlen 8 1981 (q) 1 South Gold Drive 8 1973 (q) 2 South Gold Drive 15 1974 (q) 5 South Gold Drive 8 1974 (q) 6 South Gold Drive 4 1975 (q) 7 South Gold Drive 2 1976 (q) 8 South Gold Drive 8 1977 (q) 9 South Gold Drive 4 1980 (q) 11 South Gold Drive 13 1979 (q) 12 South Gold Drive 6 1980 (q) 9 Princess Road 13 1985 (q) 11 Princess Road 31 1985 (q) 15 Princess Road 23 1986 (q) 17 Princess Road 23 1986 (q) 220 Hanover Avenue 100 1987 (q) 244 Shefield Street 15 1965/1986 (q) 30 Troy Road 8 1972 (q) 15 Leslie Court 9 1971 (q) 20 Leslie Court 6 1974 (q) 25 Leslie Court 31 1975 (q) 130 Algonquin Parkway 9 1973 (q) 150 Algonquin Parkway 6 1973 (q) 55 Locust Avenue 39 1980 (q) 31 West Forest Street (l) 57 1978 (q) 25 World's Fair Drive 21 1986 (q) 14 World's Fair Drive 39 1980 (q) 16 World's Fair Drive 13 1981 (q) 18 World's Fair Drive 9 1982 (q) 23 World's Fair Drive 10 1982 (q) 12 World's Fair Drive 42 1981 (q) 1 World's Fair Drive 46 1983 (q) 2 World's Fair Drive 47 1982 (q) 49 Napoleon Court 3 1982 (q) 50 Napoleon Court 2 1982 (q) 22 World's Fair Drive 4 1983 (q) 26 World's Fair Drive 27 1984 (q) 24 World's Fair Drive 26 1984 (q) 12 Wright Way 30 1981 (q) NEW ORLEANS 520-524 Elmwood Park Blvd (l) 11 1986 (q) 125 Mallard St 1 1984 (q) 107 Mallard 2 1985 (q) 125 James Drive West 3 1990 (q) 161 James Drive West 4 1986 (q) 150 James Drive East 5 1986 (q) 115 James Drive West 2 1986 (q) 100 James Drive 5 1980 (q) 143 Mallard St 2 1982 (q) 160 James Drive East 1 1981 (q) 190 James Drive East 3 1987 (q) 120 Mallard St 4 1981 (q) 110 James Drive West 2 1983 (q) 150 Canvasback Dr 2 1986 (q) PHOENIX 7340 South Kyrene Rd 18 1996 (q) 7350 S Kyrene Road 10 1996 (q) 7360 South Kyrene Rd 6 1996 (q) 7343 South Hardy Drive 13 1997 (q) 7333 South Hardy Drive 18 1997 (q) SALT LAKE 2255 South 300 West (o) 7 1980 (q) 512 Lawndale Drive (p) 33 1981 (q) </TABLE> S-10
85 <TABLE> <CAPTION> (b) INITIAL COST LOCATION (a) ------------ BUILDING ADDRESS (CITY/STATE) ENCUMBRANCES LAND BUILDINGS - ---------------- ------------ ------------ ---- --------- <S> <C> <C> <C> <C> ST. LOUIS 8921-8957 Frost Avenue Hazelwood, MO (e) 431 2,479 9043-9083 Frost Avenue Hazelwood, MO (e) 319 1,838 2121 Chapin Industrial Drive Vinita Park, MO 606 4,384 1200 Andes Boulevard Olivette, MO 246 1,412 1248 Andes Boulevard Olivette, MO 156 907 1208-1226 Ambassador Boulevard Olivette, MO 235 1,351 1250 Ambassador Boulevard Olivette, MO 119 694 1503-1525 Fairview Industrial Olivette, MO 112 658 2462-2470 Schuetz Road St. Louis, MO 174 1,004 10431-10449 Midwest Industrial Blvd Olivette, MO 237 1,360 10751 Midwest Industrial Boulevard Olivette, MO 193 1,119 11652-11666 Fairgrove Industrial Blvd St. Louis, MO 103 599 11674-11688 Fairgrove Industrial Blvd St. Louis, MO 118 689 2337 Centerline Drive Maryland Heights, MO 216 1,242 6951 N Hanley (l) Hazelwood, MO 405 2,295 4560 Anglum Road Hazelwood, MO 150 849 2760 South 1st Street St. Louis, MO 800 - TAMPA 6614 Adamo Drive Tampa, FL 177 1,005 202 Kelsey Tampa, FL 602 3,409 6202 Benjamin Road Tampa, FL 203 1,151 6204 Benjamin Road Tampa, FL 432 2,445 6206 Benjamin Road Tampa, FL 397 2,251 6302 Benjamin Road Tampa, FL 214 1,212 6304 Benjamin Road Tampa, FL 201 1,138 6306 Benjamin Road Tampa, FL 257 1,457 6308 Benjamin Road Tampa, FL 345 1,958 5313 Johns Road Tampa, FL 204 1,159 5602 Thompson Center Court Tampa, FL 115 652 5411 Johns Road Tampa, FL 230 1,304 5525 Johns Road Tampa, FL 192 1,086 5607 Johns Road Tampa, FL 102 579 5709 Johns Road Tampa, FL 192 1,086 5711 Johns Road Tampa, FL 243 1,376 4410 E Adamo Drive Tampa, FL 523 2,962 4420 E Adamo Drive Tampa, FL 127 718 4430 E Adamo Drive Tampa, FL 333 1,885 4440 E Adamo Drive Tampa, FL 348 1,975 4450 E Adamo Drive Tampa, FL 253 1,436 5453 W Waters Avenue Tampa, FL 71 402 5455 W Waters Avenue Tampa, FL 307 1,742 5553 W Waters Avenue Tampa, FL 307 1,742 5501 W Waters Avenue Tampa, FL 154 871 5503 W Waters Avenue Tampa, FL 71 402 5555 W Waters Avenue Tampa, FL 213 1,206 5557 W Waters Avenue Tampa, FL 59 335 5903 Johns Road Tampa, FL 88 497 4107 N Himes Avenue Tampa, FL 568 3,220 OTHER 2800 Airport Road (n) Denton, TX 369 1,935 3501 Maple Street Abilene, TX 67 1,057 4200 West Harry Street (m) Wichita, KS (c) 193 2,224 Industrial Park No. 2 West Lebanon, NH 723 5,208 931 Discovery Road Green Bay, WI 121 685 11200 Industiplex Blvd Baton Rouge, LA 463 2,624 11441 Indsutriplex Blvd Baton Rouge, LA 331 1,874 11301 Industriplex Blvd Baton Rouge, LA 265 1,499 6565 Exchequer Drive Baton Rouge, LA 461 2,614 2675 Valley View Drive Shreveport, LA 144 - 300 10th Street NW Clarion, IA 35 - 9580 Interport Dr Shreveport, LA 113 639 Developments/Redevelopments/Land 15,826 2,763 ----------- --------- $ 285,681 $1,477,137 =========== ========== </TABLE> <TABLE> <CAPTION> COSTS GROSS AMOUNTS CARRIED CAPITALIZED AT CLOSE OF PERIOD 12/31/97 SUBSEQUENT TO -------------------------------------------------------------- ACQUISITION BUILDING AND BUILDING ADDRESS OR COMPLETION LAND IMPROVEMENTS TOTAL - ---------------- ------------- ----------- ------------- ------------- <C> <C> <C> <C> <C> ST. LOUIS 8921-8957 Frost Avenue 10 431 2,489 2,920 9043-9083 Frost Avenue 27 319 1,865 2,184 2121 Chapin Industrial Drive 1,205 614 5,581 6,195 1200 Andes Boulevard 83 319 1,422 1,741 1248 Andes Boulevard (199) 157 958 1,115 1208-1226 Ambassador Boulevard 1 235 1,352 1,587 1250 Ambassador Boulevard 2 119 696 815 1503-1525 Fairview Industrial 48 112 706 818 2462-2470 Schuetz Road 1 174 1,005 1,179 10431-10449 Midwest Industrial Blvd 198 237 1,558 1,795 10751 Midwest Industrial Boulevard 13 193 1,132 1,325 11652-11666 Fairgrove Industrial Blvd 89 103 688 791 11674-11688 Fairgrove Industrial Blvd 27 118 716 834 2337 Centerline Drive (40) 216 1,353 1,569 6951 N Hanley (l) 562 419 2,843 3,262 4560 Anglum Road 86 161 924 1,085 2760 South 1st Street 4,087 821 4,066 4,887 TAMPA 6614 Adamo Drive 20 180 1,022 1,202 202 Kelsey 94 616 3,489 4,105 6202 Benjamin Road 37 209 1,182 1,391 6204 Benjamin Road 103 445 2,535 2,980 6206 Benjamin Road 80 409 2,319 2,728 6302 Benjamin Road 39 220 1,245 1,465 6304 Benjamin Road 36 206 1,169 1,375 6306 Benjamin Road 54 265 1,503 1,768 6308 Benjamin Road 70 356 2,017 2,373 5313 Johns Road 38 210 1,191 1,401 5602 Thompson Center Court 24 119 672 791 5411 Johns Road 41 236 1,339 1,575 5525 Johns Road 36 197 1,117 1,314 5607 Johns Road 23 106 598 704 5709 Johns Road 36 197 1,117 1,314 5711 Johns Road 64 252 1,431 1,683 4410 E Adamo Drive 129 542 3,072 3,614 4420 E Adamo Drive 34 132 747 879 4430 E Adamo Drive 87 346 1,959 2,305 4440 E Adamo Drive 91 362 2,052 2,414 4450 E Adamo Drive 73 264 1,498 1,762 5453 W Waters Avenue 20 74 419 493 5455 W Waters Avenue 78 319 1,808 2,127 5553 W Waters Avenue 76 319 1,806 2,125 5501 W Waters Avenue 48 161 912 1,073 5503 W Waters Avenue 20 74 419 493 5555 W Waters Avenue 47 220 1,246 1,466 5557 W Waters Avenue 18 62 350 412 5903 Johns Road 29 92 522 614 4107 N Himes Avenue 140 589 3,339 3,928 OTHER 2800 Airport Road (n) 1,572 490 3,386 3,876 3501 Maple Street 941 260 1,805 2,065 4200 West Harry Street (m) 1,751 528 3,640 4,168 Industrial Park No. 2 175 776 5,330 6,106 931 Discovery Road 117 138 785 923 11200 Industiplex Blvd 82 476 2,694 3,169 11441 Indsutriplex Blvd 59 340 1,925 2,264 11301 Industriplex Blvd 49 272 1,542 1,813 6565 Exchequer Drive 78 473 2,681 3,153 2675 Valley View Drive 4,481 276 4,349 4,625 300 10th Street NW 2,058 162 1,931 2,093 9580 Interport Dr 15 115 653 767 Developments / Vacant Land 4,301 16,900 3,244 20,144 ------------- ----------- ------------- ------------- $ 199,932 $ 299,020 $ 1,663,731 $ 1,962,750 ============= =========== ============= ============= </TABLE> <TABLE> <CAPTION> ACCUMULATED DEPRECIATION YEAR BUILT/ DEPRECIABLE BUILDING ADDRESS 12/31/97 RENOVATED LIVES (YEARS) - ---------------- ----------- --------- ------------- <S> <C> <C> <C> ST. LOUIS 8921-8957 Frost Avenue 218 1971 (q) 9043-9083 Frost Avenue 163 1970 (q) 2121 Chapin Industrial Drive 3,545 1969/87 (q) 1200 Andes Boulevard 124 1967 (q) 1248 Andes Boulevard 118 1967 (q) 1208-1226 Ambassador Boulevard 118 1966 (q) 1250 Ambassador Boulevard 61 1967 (q) 1503-1525 Fairview Industrial 78 1967 (q) 2462-2470 Schuetz Road 88 1965 (q) 10431-10449 Midwest Industrial Blvd 139 1967 (q) 10751 Midwest Industrial Boulevard 100 1965 (q) 11652-11666 Fairgrove Industrial Blvd 74 1966 (q) 11674-11688 Fairgrove Industrial Blvd 72 1967 (q) 2337 Centerline Drive 124 1967 (q) 6951 N Hanley (l) 72 1965 (q) 4560 Anglum Road 8 1970 (q) 2760 South 1st Street 1 1997 (q) TAMPA 6614 Adamo Drive 2 1967 (q) 202 Kelsey 7 1989 (q) 6202 Benjamin Road 2 1981 (q) 6204 Benjamin Road 6 1982 (q) 6206 Benjamin Road 5 1983 (q) 6302 Benjamin Road 3 1983 (q) 6304 Benjamin Road 2 1984 (q) 6306 Benjamin Road 3 1984 (q) 6308 Benjamin Road 4 1984 (q) 5313 Johns Road 2 1991 (q) 5602 Thompson Center Court 1 1972 (q) 5411 Johns Road 3 1997 (q) 5525 Johns Road 2 1993 (q) 5607 Johns Road 1 1991 (q) 5709 Johns Road 2 1990 (q) 5711 Johns Road 3 1990 (q) 4410 E Adamo Drive 6 1990 (q) 4420 E Adamo Drive 2 1990 (q) 4430 E Adamo Drive 4 1987 (q) 4440 E Adamo Drive 4 1988 (q) 4450 E Adamo Drive 3 1969 (q) 5453 W Waters Avenue 1 1987 (q) 5455 W Waters Avenue 4 1987 (q) 5553 W Waters Avenue 4 1987 (q) 5501 W Waters Avenue 2 1990 (q) 5503 W Waters Avenue 1 1990 (q) 5555 W Waters Avenue 3 1990 (q) 5557 W Waters Avenue 1 1990 (q) 5903 Johns Road 1 1987 (q) 4107 N Himes Avenue 7 1990 (q) OTHER 2800 Airport Road (n) 1,081 1965 (q) 3501 Maple Street 569 1980 (q) 4200 West Harry Street (m) 1,152 1972 (q) Industrial Park No. 2 1,677 1968 (q) 931 Discovery Road 11 1997 (q) 11200 Industiplex Blvd 6 1986 (q) 11441 Indsutriplex Blvd 4 1987 (q) 11301 Industriplex Blvd 3 1985 (q) 6565 Exchequer Drive 6 1986 (q) 2675 Valley View Drive 1 1997 (q) 300 10th Street NW 1 1997 (q) 9580 Interport Dr 1 1989 (q) DEVELOPMENTS / VACANT LAND - (r) ----------- $ 121,030 =========== </TABLE> S-11
86 NOTES: (a) See description of encumbrances in Note 4 to Notes to Consolidated Financial statements. (b) Initial cost for each respective property is total acquisition costs associated with its purchase. (c) Collateralizes the 1994 Defeased Mortgage Loan. On January 2, 1998, the 1994 Defeased Mortgage Loan was paid off and retired and the remaining 15 properties were released. (d) These properties are owned by the Securities Partnership. The Securities Partnership guarantees the payment on the Series A Preferred Stock of dividends and amounts upon redemption, liquidation, dissolution or winding-up. (e) These properties collateralize the 1995 Mortgage Loan. (f) These properties collateralize the CIGNA Loan. (g) These properties collateralize the Assumed Loans. (h) This property collateralizes the LB Mortgage Loan II. (i) This property collateralizes the Acquisition Mortgage Loan I. (j) These properties collateralize the Acquisition Mortgage Loan II. (k) These properties collateralize the Acquisition Mortgage Loan III. (l) Comprised of two properties. (m) Comprised of three properties. (n) Comprised of five properties. (o) Comprised of seven properties. (p) Comprised of 29 properties. (q) Depreciation is computed based upon the following estimated lives: Buildings, Improvements 31.5 to 40 years Tenant Improvements, Leasehold Improvements Life of lease Furniture, Fixtures and equipment 5 to 10 years (r) These properties represent vacant land, developments and redevelopments that haven't been placed in service. (s) Parking Lot (t) Excludes $30,158 of Construction in Progress At December 31, 1997, the aggregate cost of land and buildings and equipment for federal income tax purpose was approximately $1,749 million. S-12
87 FIRST INDUSTRIAL REALTY TRUST, INC. SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) AS OF DECEMBER 31, 1997 (DOLLARS IN THOUSANDS) The changes in total real estate assets for the three years ended December 31, 1997 are as follows: <TABLE> <CAPTION> 1997 1996 1995 ----------- ----------- ----------- <S> <C> <C> <C> Balance, Beginning of Year ................................. $ 1,050,779 $ 757,516 $ 669,608 Transfer of Assets Between Contributing Businesses ......... -- -- -- Acquisition, Construction Costs and Improvements ........... 975,168 305,153 87,908 Disposition of Assets ...................................... (31,601) (11,890) -- ----------- ----------- ----------- Balance, End of Year ....................................... $ 1,994,346 $ 1,050,779 $ 757,516 =========== =========== =========== </TABLE> The changes in accumulated depreciation for the three years ended December 31, 1997 are as follows: <TABLE> <CAPTION> 1997 1996 1995 --------- --------- --------- <S> <C> <C> <C> Balance, Beginning of Year ................................. $ 91,457 $ 68,749 $ 49,314 Transfer of Assets Between Contributing Businesses ......... -- -- -- Depreciation for Year ...................................... 35,286 24,542 19,435 Disposition of Assets ...................................... (5,713) (1,834) -- --------- --------- --------- Balance, End of Year ....................................... $ 121,030 $ 91,457 $ 68,749 ========= ========= ========= </TABLE> S-13