0-25739 |
58-2328421 | |
(Commission File Number) |
(IRS Employer Identification No.) |
FOR THE FISCAL YEAR ENDED | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS: |
DECEMBER 31, 2001 |
DECEMBER 31, 2000 |
DECEMBER 31, 1999 | ||||
(IN THOUSANDS) |
|||||||
Revenues |
$223,559 |
|
$194,975 |
$116,487 | |||
Operating Income |
$ (24,158 |
) |
$ 20,569 |
$ 2,700 | |||
Net Income |
$ (15,458 |
) |
$ 18,315 |
$ 7,490 | |||
CONSOLIDATED BALANCE SHEET DATA: |
DECEMBER 31, 2001 |
DECEMBER 31, 2000 | ||
(IN THOUSANDS) |
||||
Total Assets |
$500,984 |
$240,240 | ||
Stockholders Equity |
$426,935 |
$188,389 |
Page | ||
Unaudited Pro Forma Financial Statements |
||
Summary of Unaudited Pro Forma Financial Statements |
F-1 | |
Pro Forma Balance Sheet as of June 30, 2002 (unaudited) |
F-2 | |
Pro Forma Statement of Income for the year ended December 31, 2001 (unaudited) |
F-4 | |
Pro Forma Statement of Income for the six months ended June 30, 2002 (unaudited) |
F-5 |
WELLS REAL ESTATE INVESTMENT TRUST, INC. (Registrant) | ||
By: |
/s/ LEO F. WELLS, III
| |
Leo F. Wells, III President |
Pro Forma Adjustments |
Pro Forma Adjustments |
||||||||||||||||
Wells Real Estate Investment Trust, Inc.
(g) |
ISS Atlanta |
Pro Forma Subtotal |
Other Recent Acquisitions |
Pro Forma Total | |||||||||||||
REAL ESTATE ASSETS, at cost: |
|||||||||||||||||
Land |
$ |
110,330,449 |
$ |
2,700,000 |
(a) |
$ |
113,140,333 |
$ |
17,588,044 |
(a) |
$ |
131,444,168 | |||||
|
109,884 |
(b) |
|
715,791 |
(b) |
||||||||||||
Buildings, less accumulated depreciation of $37,717,737 |
|
689,490,969 |
|
38,065,159 |
(a) |
|
729,105,291 |
|
157,133,684 |
(a) |
|
892,633,950 | |||||
|
1,549,163 |
(b) |
|
6,394,975 |
(b) |
||||||||||||
Construction in progress |
|
16,081,841 |
|
0 |
|
|
16,081,841 |
|
379,901 |
(a) |
|
16,461,742 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total real estate assets |
|
815,903,259 |
|
42,424,206 |
|
|
858,327,465 |
|
182,212,395 |
|
$ |
1,040,539,860 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
CASH AND CASH EQUIVALENTS |
|
341,909,775 |
|
(40,606,422 |
)(a) |
|
306,072,046 |
|
(163,384,038 |
)(a) |
|
331,465,876 | |||||
|
4,941,651 |
(c) |
|
195,624,733 |
(d) |
||||||||||||
|
(172,958 |
) (e) |
|
(6,846,865 |
)(e) |
||||||||||||
INVESTMENT IN JOINT VENTURES |
|
76,217,870 |
|
0 |
|
|
76,217,870 |
|
0 |
|
|
76,217,870 | |||||
INVESTMENT IN BONDS |
|
22,000,000 |
|
32,500,000 |
(f) |
|
54,500,000 |
|
0 |
|
|
54,500,000 | |||||
ACCOUNTS RECEIVABLE |
|
10,709,104 |
|
0 |
|
|
10,709,104 |
|
0 |
|
|
10,709,104 | |||||
DEFERRED LEASE ACQUISITION COSTS, net |
|
1,790,608 |
|
0 |
|
|
1,790,608 |
|
0 |
|
|
1,790,608 | |||||
DEFERRED PROJECT COSTS |
|
14,314,914 |
|
(1,659,047 |
)(b) |
|
12,828,825 |
|
(7,110,766 |
)(b) |
|
12,564,924 | |||||
|
172,958 |
(e) |
|
6,846,865 |
(e) |
||||||||||||
DEFERRED OFFERING COSTS |
|
1,392,934 |
|
0 |
|
|
1,392,934 |
|
0 |
|
|
1,392,934 | |||||
DUE FROM AFFILIATES |
|
1,897,309 |
|
0 |
|
|
1,897,309 |
|
0 |
|
|
1,897,309 | |||||
NOTE RECEIVABLE |
|
5,149,792 |
|
0 |
|
|
5,149,792 |
|
0 |
|
|
5,149,792 | |||||
PREPAID EXPENSES AND OTHER ASSETS, net |
|
1,881,308 |
|
0 |
|
|
1,881,308 |
|
0 |
|
|
1,881,308 | |||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total assets |
$ |
1,293,166,873 |
$ |
37,600,388 |
|
$ |
1,330,767,261 |
$ |
207,342,324 |
|
$ |
1,538,109,585 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Adjustments |
Pro Forma Adjustments |
|||||||||||||||||||
Wells Real Estate Investment Trust, Inc.
(h) |
ISS Atlanta |
Pro Forma Subtotal |
Other Recent Acquisitions |
Pro Forma Total |
||||||||||||||||
LIABILITIES: |
||||||||||||||||||||
Accounts payable and accrued expenses |
$ |
11,840,214 |
|
$ |
158,737 |
(a) |
$ |
11,998,951 |
|
$ |
14,830 |
(a) |
$ |
12,013,781 |
| |||||
Notes payable |
|
15,658,141 |
|
|
0 |
|
|
15,658,141 |
|
|
11,702,761 |
(a) |
|
27,360,902 |
| |||||
Obligations under capital lease |
|
22,000,000 |
|
|
32,500,000 |
(g) |
|
54,500,000 |
|
|
0 |
|
|
54,500,000 |
| |||||
Dividends payable |
|
4,538,635 |
|
|
0 |
|
|
4,538,635 |
|
|
0 |
|
|
4,538,635 |
| |||||
Due to affiliate |
|
2,106,790 |
|
|
0 |
|
|
2,106,790 |
|
|
0 |
|
|
2,106,790 |
| |||||
Deferred rental income |
|
1,013,544 |
|
|
0 |
|
|
1,013,544 |
|
|
0 |
|
|
1,013,544 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total liabilities |
|
57,157,324 |
|
|
32,658,737 |
|
|
89,816,061 |
|
|
11,717,591 |
|
|
101,533,652 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||||||||||||
MINORITY INTEREST OF UNIT HOLDER IN OPERATING PARTNERSHIP |
|
200,000 |
|
|
0 |
|
|
200,000 |
|
|
0 |
|
|
200,000 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
SHAREHOLDERS EQUITY: |
||||||||||||||||||||
Common shares, $.01 par value; 125,000,000 shares authorized, 145,589,053 shares issued and 144,366,772 outstanding at
June 30, 2002 |
|
1,455,890 |
|
|
4,942 |
(c) |
|
1,460,832 |
|
|
195,624 |
(d) |
|
1,656,456 |
| |||||
Additional paid-in capital |
|
1,290,858,515 |
|
|
4,936,709 |
(c) |
|
1,295,795,224 |
|
|
195,429,109 |
(d) |
|
1,491,224,333 |
| |||||
Cumulative distributions in excess of earnings |
|
(43,991,669 |
) |
|
0 |
|
|
(43,991,669 |
) |
|
0 |
|
|
(43,991,669 |
) | |||||
Treasury stock, 1,222,381 at cost, shares |
|
(12,223,808 |
) |
|
0 |
|
|
(12,223,808 |
) |
|
0 |
|
|
(12,223,808 |
) | |||||
Other comprehensive loss |
|
(289,379 |
) |
|
0 |
|
|
(289,379 |
) |
|
0 |
|
|
(289,379 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total shareholders equity |
|
1,235,809,549 |
|
|
4,941,651 |
|
|
1,240,751,200 |
|
|
195,624,733 |
|
|
1,436,375,933 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total liabilities and shareholders equity |
$ |
1,293,166,873 |
|
$ |
37,600,388 |
|
$ |
1,330,767,261 |
|
$ |
207,342,324 |
|
$ |
1,538,109,585 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Reflects Wells Real Estate Investment Trust, Inc.s purchase price for the land, building and liabilities assumed. |
(b) |
Reflects deferred project costs applied to the land and building at approximately 4.07% of the cash paid for purchase. |
(c) |
Reflects capital raised through issuance of additional shares subsequent to June 30, 2002 through ISS Atlanta acquisition date. |
(d) |
Reflects capital raised through issuance of additional shares subsequent to ISS Atlanta acquisition date of the latest Other Recent Acquisitions.
|
(e) |
Reflects deferred project costs capitalized as a result of additional capital raised described in notes (c) and (d) above. |
(f) |
Reflects investment in bonds for which 100% of the principal balance becomes payable on December 1, 2015. |
(g) |
Reflects mortgage note secured by the Deed of Trust to the ISS Atlanta Buildings for which 100% of the principal balance becomes payable on December 1, 2015.
|
(h) |
Historical financial information derived from quarterly report on Form 10-Q. |
Pro Forma Adjustments |
Pro Forma Adjustments |
||||||||||||||||||||||||
Wells Real Estate Investment Trust, Inc. (f) |
2001 Acquisitions |
2002 Acquisitions |
ISS Atlanta |
Pro Forma Subtotal |
Other Recent Acquisitions |
Pro Forma Total | |||||||||||||||||||
REVENUES: |
|||||||||||||||||||||||||
Rental income |
$ |
44,204,279 |
$ |
11,349,076 |
(a) |
$ |
14,846,431 |
(a) |
$ |
4,398,278 |
(a) |
$ |
74,798,064 |
|
16,538,740 |
(a) |
$ |
91,336,804 | |||||||
Equity in income of joint ventures |
|
3,720,959 |
|
1,111,850 |
(b) |
|
0 |
|
|
0 |
|
|
4,832,809 |
|
0 |
|
|
4,832,809 | |||||||
Interest income |
|
1,246,064 |
|
0 |
|
|
0 |
|
|
0 |
|
|
1,246,064 |
|
0 |
|
|
1,246,064 | |||||||
Take out fee |
|
137,500 |
|
0 |
|
|
0 |
|
|
0 |
|
|
137,500 |
|
0 |
|
|
137,500 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
49,308,802 |
|
12,460,926 |
|
|
14,846,431 |
|
|
4,398,278 |
|
|
81,014,437 |
|
16,538,740 |
|
|
97,553,177 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
EXPENSES: |
|||||||||||||||||||||||||
Depreciation |
|
15,344,801 |
|
5,772,761 |
(c) |
|
5,356,374 |
(c) |
|
1,584,573 |
(c) |
|
28,058,509 |
|
6,198,640 |
(c) |
|
34,257,149 | |||||||
Interest |
|
3,411,210 |
|
0 |
|
|
0 |
|
|
0 |
|
|
3,411,210 |
|
0 |
|
|
3,411,210 | |||||||
Operating costs, net of reimbursements |
|
4,128,883 |
|
2,854,275 |
(d) |
|
1,505,269 |
(d) |
|
0 |
|
|
8,488,427 |
|
5,452 |
(d) |
|
8,493,879 | |||||||
Management and leasing fees |
|
2,507,188 |
|
510,708 |
(e) |
|
668,090 |
(e) |
|
197,923 |
(e) |
|
3,883,909 |
|
744,242 |
(e) |
|
4,628,151 | |||||||
General and administrative |
|
973,785 |
|
0 |
|
|
0 |
|
|
0 |
|
|
973,785 |
|
0 |
|
|
973,785 | |||||||
Amortization of deferred financing costs |
|
770,192 |
|
0 |
|
|
0 |
|
|
0 |
|
|
770,192 |
|
0 |
|
|
770,192 | |||||||
Legal and accounting |
|
448,776 |
|
0 |
|
|
0 |
|
|
0 |
|
|
448,776 |
|
0 |
|
|
448,776 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
27,584,835 |
|
9,137,744 |
|
|
7,529,733 |
|
|
1,782,496 |
|
|
46,034,808 |
|
6,948,334 |
|
|
52,983,142 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
NET INCOME |
$ |
21,723,967 |
$ |
3,323,182 |
|
$ |
7,316,698 |
|
$ |
2,615,782 |
|
$ |
34,979,629 |
$ |
9,590,406 |
|
$ |
44,570,035 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
EARNINGS PER SHARE, basic and diluted |
$ |
0.43 |
$ |
0.24 |
$ |
0.27 | |||||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
WEIGHTED AVERAGE SHARES, basic and diluted |
|
50,520,853 |
|
144,860,936 |
|
164,423,411 | |||||||||||||||||||
|
|
|
|
|
|
(a) |
Rental income is recognized on a straight-line basis. |
(b) |
Reflects Wells Real Estate Investment Trust, Inc.s equity in income of Wells XII-REIT Joint Venture related to the acquisition of the Comdata Building and
equity in income of Wells XIII-REIT Joint Venture related to the acquisition of the AmeriCredit Building and the ADIC Building. |
(c) |
Depreciation expense on the buildings is recognized using the straight-line method and a 25-year life. |
(d) |
Consists of nonreimbursable operating expenses. |
(e) |
Management and leasing fees are calculated at 4.5% of rental income. |
(f) |
Historical financial information derived from annual report on Form 10-K. |
Pro Forma Adjustments |
Pro Forma Adjustments |
||||||||||||||||||||
Wells Real Estate Investment Trust, Inc. (e) |
2002 Acquisitions |
ISS Atlanta |
Pro Forma Subtotal |
Other Recent Acquisitions |
Pro Forma Total | ||||||||||||||||
REVENUES: |
|||||||||||||||||||||
Rental income |
$ |
38,571,815 |
$ |
7,307,774 |
(a) |
$ |
2,199,139 |
(a) |
$ |
48,078,728 |
$ |
8,911,649 |
(a) |
$ |
56,990,377 | ||||||
Equity in income of joint ventures |
|
2,478,686 |
|
0 |
|
|
0 |
|
$ |
2,478,686 |
|
0 |
|
|
2,478,686 | ||||||
Interest income |
|
2,648,351 |
|
0 |
|
|
0 |
|
$ |
2,648,351 |
|
0 |
|
|
2,648,351 | ||||||
Take out fee |
|
134,102 |
|
0 |
|
|
0 |
|
|
134,102 |
|
0 |
|
|
134,102 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
43,832,954 |
|
7,307,774 |
|
|
2,199,139 |
|
|
53,339,867 |
|
8,911,649 |
|
|
62,251,516 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
EXPENSES: |
|||||||||||||||||||||
Depreciation |
|
12,903,282 |
|
2,588,546 |
(b) |
|
792,286 |
(b) |
|
16,284,114 |
|
3,270,573 |
(b) |
|
19,554,687 | ||||||
Interest |
|
880,002 |
|
0 |
|
|
0 |
|
|
880,002 |
|
0 |
|
|
880,002 | ||||||
Operating costs, net of reimbursements |
|
2,063,997 |
|
300,018 |
(c) |
|
0 |
|
|
2,364,015 |
|
79,067 |
(c) |
|
2,443,082 | ||||||
Management and leasing fees |
|
1,903,082 |
|
328,850 |
(d) |
|
98,961 |
(d) |
|
2,330,893 |
|
401,024 |
(d) |
|
2,731,917 | ||||||
General and administrative |
|
1,121,457 |
|
0 |
|
|
0 |
|
|
1,121,457 |
|
0 |
|
|
1,121,457 | ||||||
Amortization of deferred financing costs |
|
424,992 |
|
0 |
|
|
0 |
|
|
424,992 |
|
0 |
|
|
424,992 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
19,296,812 |
|
3,217,414 |
|
|
891,247 |
|
|
23,405,473 |
|
3,750,664 |
|
|
27,156,137 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
NET INCOME |
$ |
24,536,142 |
$ |
4,090,360 |
|
$ |
1,307,892 |
|
$ |
29,934,394 |
$ |
5,160,985 |
|
$ |
35,095,379 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
EARNINGS PER SHARE, basic and diluted |
$ |
0.22 |
$ |
0.21 |
$ |
0.21 | |||||||||||||||
|
|
|
|
|
| ||||||||||||||||
WEIGHTED AVERAGE SHARES, basic and diluted |
|
110,885,641 |
|
144,860,936 |
|
164,423,411 | |||||||||||||||
|
|
|
|
|
|
(a) |
Rental income is recognized on a straight-line basis. |
(b) |
Depreciation expense on the buildings is recognized using the straight-line method and a 25-year life. |
(c) |
Consists of nonreimbursable operating expenses. |
(d) |
Management and leasing fees are calculated at 4.5% of rental income. |
(e) |
Historical financial information derived from quarterly report on Form 10-Q. |