EX-99 4 rex992.htm EXHIBIT 99.2 <TABLE>

EXHIBIT 99.2

 

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

SECOND QUARTER 2003

OTHER FINANCIAL AND OPERATING DATA (unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2003 vs. 2002

2003 vs. 2002

FINANCIAL AND ANALYTICAL DATA:

(in thousands, except per share data)

Total FFO - Incr (decr) - 2003 compared to 2002:

$ 000

$ per share

$ 000

$ per share

Base rents from anchors and mall shops

$

554

$

0.014

$

1,138

$

0.028

Percentage rents from anchors and mall shops

(71)

(0.002)

95

0.002

Temporary and promotional leasing income

124

0.003

245

0.006

Mall operating costs, net of tenant recovery income

(781)

(0.020)

(1,876)

(0.047)

Utility income, miscellaneous mall income, equity in joint venture

303

0.008

466

0.012

Straight line rental income

(188)

(0.005)

(308)

(0.008)

Interest expense

720

0.019

1,592

0.039

Core mall operations

661

0.017

1,352

0.032

Property admin. and general & admin. expenses

(195)

(0.005)

(231)

(0.006)

Cash flow support earned

(684)

(0.018)

(658)

(0.016)

Gain on sale of outparcel land

80

0.002

(11)

-

Depreciation and amortization expense

(40)

(0.001)

(23)

(0.001)

FFO from mall acquisitions, net of interest expense

1,716

0.045

3,440

0.085

Loss from discontinued operations, net of depreciation

(158)

(0.004)

(232)

(0.006)

Lease buyout income

(148)

(0.004)

(350)

(0.009)

Expensing of costs related to the proposed merger

(1,597)

(0.042)

(2,988)

(0.074)

Loss on early extinguishment of debt

-

-

4,314

0.107

Other items

61

0.002

61

0.002

Change in FFO before pref'd div's and minority interest

(304)

(0.008)

4,674

0.114

Allocation to minority interest in Operating Partnership

1,383

-

561

-

Net dilution per share due to change in shares & units outstanding

-

(0.004)

-

(0.042)

Rounding to whole cents

-

0.002

-

(0.002)

Change in FFO allocable to common shareholders

$

1,079

$

(0.010)

$

5,235

$

0.070

Three Months Ended June 30,

Six Months Ended June 30,

2003

2002

2003

2002

Funds from Operations ($000 except per share data):

Net income (loss)

$

1,170

$

2,222

$

(13,736)

$

(17)

Adjustments:

Minority Interest in Operating Partnership

1,750

1,300

6,343

2,756

Depreciation and amortization - real estate

12,084

10,679

23,755

21,673

Depreciation - joint ventures and other line items

466

488

919

910

Cash flow support amounts

80

764

871

1,529

Loss on asset sales

-

-

13,787

Depreciation from discontinued operations

-

401

387

801

FFO before allocations to minority interest and pref'd shares

15,550

15,854

32,326

27,652

Allocation to preferred shareholders (preferred dividends)

(3,404)

(3,404)

(6,806)

(6,806)

Allocation to minority interest in Operating Partnership

(1,855)

(3,238)

(4,972)

(5,533)

FFO allocable to common shares

$

10,291

$

9,212

$

20,548

$

15,313

FFO per common share

$

0.32

$

0.33

$

0.63

$

0.56

Avg. common shares outstanding during the period

32,170

27,619

32,110

26,918

Avg. common shares and units outstanding during the period

38,094

37,576

40,018

36,874

Avg. common shares outstanding during the period for diluted FFO

32,537

28,075

32,436

27,331

Avg. common shares & units during the period for diluted FFO

38,461

38,032

40,344

37,287

Components of Minimum Rents:

Anchor - contractual or base rents

$

5,692

$

5,978

$

11,413

$

11,955

Mall shops - contractual or base rents

23,141

20,288

46,148

40,471

Mall shops - percentage rent in lieu of fixed base rent

851

644

1,808

1,353

Straight line rental income

98

220

284

458

Ground lease - contractual or base rents

582

525

1,142

1,050

Lease buyout income

100

248

219

569

Total minimum rents

$

30,464

$

27,903

$

61,014

$

55,856

Components of Percentage Rents:

Anchors

$

472

$

624

$

1,175

$

1,160

Mall shops and ground leases

964

883

1,977

1,884

Total percentage rents

$

1,436

$

1,507

$

3,152

$

3,044

</TABLE>

 

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

SECOND QUARTER 2003

OTHER FINANCIAL AND OPERATING DATA (unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2003

2002

2003

2002

(in thousands, except as noted)

EBITDA: earnings (including gain on sale of outparcel land)

before interest, taxes and all depreciation and amortization

$

28,431

$

28,447

$

57,451

$

57,242

Debt and Interest:

Fixed rate debt at period end

$

578,961

$

590,707

$

578,961

$

590,707

Variable rate debt at period end

174,728

64,528

174,728

64,528

Total debt at period end

$

753,689

$

655,235

$

753,689

$

655,235

Weighted avg. interest rate on fixed rate debt for the period

7.4

%

7.6

%

7.4

%

7.6

%

Weighted avg. interest rate on variable rate debt for the period

3.5

%

4.1

%

3.5

%

4.1

%

Total interest expense for period

$

12,743

$

12,616

$

25,411

$

25,317

Amort. of deferred debt cost for period (incl. in interest exp)

463

435

926

869

Capitalized interest costs during period

-

-

-

-

Capital Expenditures Incurred:

Mall shop tenant allowances

$

3,022

$

1,836

$

3,509

$

3,180

Anchor/Big Box tenant allowances

4,343

-

6,843

400

Leasing costs and commissions

733

558

1,517

963

Operational capital expenditures at properties

958

1,638

2,076

2,161

Expansions and major renovations

756

146

1,434

351

All other capital expenditures (included in Other Assets)

401

222

667

358

Total Capital Expenditures during the period

$

10,213

$

4,400

$

16,046

$

7,413

OPERATING DATA:

Mall shop GLA at period end (000 sq. ft.)

5,669

5,289

Mall shop Occupancy percentage at period end

90

%

89

%

Comp. Store Mall shop sales - 6 months ($ per sq. ft.)

$

117.95

$

115.67

Mall shop occupancy cost percentage at period end

10.2

%

10.0

%

Average mall shop base rent at period end ($ per sq. ft.)

$

21.23

$

20.54

Mall shop leasing for the period:

New leases - sq. feet (000)

52

90

176

154

New leases - $ per sq. ft.

$

26.86

$

22.21

$

20.66

$

24.02

Number of new leases signed.

36

47

80

89

Net effective rent for new leases signed in the period (per sq. ft.)

$

23.14

$

20.59

$

17.51

$

21.88

Renewal leases - sq. feet (000)

117

81

263

214

Renewal leases - $ per sq. ft.

$

22.13

$

17.75

$

20.23

$

17.34

Number of renewal leases signed

58

33

111

83

Tenant Allowances for leases signed during the period:

First Generation Space - per sq. ft.

$

25.70

$

-

$

18.16

$

-

Second Generation Space - per sq. ft.

$

5.97

$

4.75

$

8.70

$

4.83

Leases Signed during the period by:

First Generation Space - sq. feet (000)

3

-

5

-

Second Generation Space - sq. feet (000)

166

171

434

368

Theater and free-standing leasing for the period:

New leases - sq. feet (000)

-

19

-

38

New leases - $ per sq. ft.

$

-

$

7.89

$

-

$

8.03

Tenant allowances -- $ per sq. ft.

$

-

$

17.32

$

-

$

13.79

</TABLE>

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

LEASE EXPIRATION SUMMARY FOR 2003 TO 2012

MALL STORES

AS OF JUNE 30, 2003

NUMBER OF

AVG. BASE

LEASES

SQUARE

RENT PER

YEAR

EXPIRING

FEET

SQUARE FOOT

2003 (6 months)

103

246,132

$15.70

2004

248

594,990

17.30

2005

199

427,192

21.26

2006

239

537,247

20.10

2007

209

620,772

19.73

2008

188

634,972

19.64

2009

159

450,621

20.87

2010

151

445,836

22.81

2011

114

373,971

20.59

2012

99

335,528

21.22

TOTALS

1,709

4,667,261

$19.92

</TABLE>

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

TOP 25 REVENUE-GENERATING TENANTS

FOR THE TWELVE MONTHS ENDED JUNE 30, 2003

PERCENT OF

NUMBER OF

TOTAL

TOTAL

OPEN STORES

SQ FT

TENANT

NOTES

REVENUES

AT JUNE 30

OCCUPIED

Sears, Roebuck and Co.

4.7%

22

2,281,226

The Limited Stores Inc.

(1)

4.3%

62

299,584

J C Penney Inc.

(2)

4.1%

25

2,062,538

The Gap

(3)

3.3%

29

330,383

The Bon-Ton

(4)

2.6%

16

1,162,553

Footlocker, Inc.

(5)

2.2%

40

156,932

Transworld Entertainment

(6)

2.0%

27

121,245

Shoe Show of Rocky Mt. Inc.

1.7%

26

130,809

American Eagle Outfitters

1.7%

21

95,149

Sterling Jewelers

(7)

1.7%

29

39,240

Hallmark-Owned Stores

1.6%

27

104,900

Fashion Bug

(8)

1.5%

19

142,521

Borders

(9)

1.5%

25

106,750

Zales

(10)

1.5%

48

33,456

KB Toys (Bain Capital)

(11)

1.3%

26

90,539

The Finish Line Inc.

1.3%

17

86,673

Regis Stores

(12)

1.3%

57

65,414

Christopher & Banks

1.1%

25

86,585

Payless Shoesource Inc.

1.1%

23

80,634

May Department Stores Co.

(13)

1.0%

14

1,524,226

Deb Shops Inc.

1.0%

17

103,371

Value City Department Stores

0.9%

5

372,713

Tandy Corporation

(14)

0.9%

28

69,510

Cole National

(15)

0.9%

31

33,341

Pacific Sunwear

0.8%

19

61,565

46.0%

9,641,857

Notes:

(1) Includes Limited Express, The Limited (core division), Bath & Body Works,

Victoria's Secret and Structures.

(2) Includes 23 J.C. Penney department stores and three Eckerd stores.

(3) Includes Gap, Gap Kids, and Old Navy.

(4) Includes fifteen department stores and two home stores. One department store is tenant owned and does not pay base or percentage rent and one department store is leased from a third party and is subleased to The Bon-Ton.

(5) Includes Footlocker, Lady Footlocker, Champs, and Kids Footlocker

(6) Includes Camelot Music, Disc Jockey, and FYE Stores.

(7) Operates as Kay Jewelers, Belden Jewelers, J.B. Robinson Jewelers and Shaw Jewelers.

(8) Includes Fashion Bug, Fashion Bug Plus, and Lane Bryant.

(9) Operates as Borders and Waldenbooks.

(10) Operates as Gemstone Jewelry, Piercing Pagoda, Plumb Gold, Gordons Jewelers, and Zales Jewelers.

(11) Operates as Kay-Bee Toys and KB Toys.

(12) Operates as Master Cuts, Trade Secrets, Cost Cutters, Super Cuts, Mia & Maxx, Hair Plus and Regis Salons.

(13) Includes eight Kaufmanns and five Hechts department stores and one Davids Bridal store. Nine of the department stores are tenant owned and do not pay base rent or

percentage rent.

(14) Operates as Radio Shack.

(15) Operates as Things Remembered and Pearle Vision.

</TABLE>

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

Consolidated Statements of Operations

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2003

2002

2003

2002

(in thousands, except per share data)

Rental operations:

Revenues:

Minimum rent

$

30,464

$

27,903

$

61,014

$

55,856

Percentage rent

1,436

1,507

3,152

3,044

Property operating cost recoveries

11,093

9,753

22,526

19,860

Temporary and promotional leasing

2,404

2,098

4,821

4,219

Utility redistribution income

3,355

3,359

6,896

6,720

Miscellaneous income

719

460

1,499

1,104

49,471

45,080

99,908

90,803

Property operating costs:

Recoverable operating costs

14,381

12,579

29,636

25,586

Property administrative costs

806

715

1,546

1,435

Other operating costs

903

546

1,901

1,343

Utility redistribution expense

2,533

2,700

5,135

5,203

Depreciation and amortization

12,084

10,679

23,755

21,673

30,707

27,219

61,973

55,240

18,764

17,861

37,935

35,563

Other expenses:

General and administrative

3,130

1,429

5,978

2,870

Interest

12,743

12,616

25,411

25,317

Loss on early extinguishment of debt

-

-

-

4,314

15,873

14,045

31,389

32,501

2,891

3,816

6,546

3,062

Property sales, disposals and adjustments:

Gain (loss) on sale of outparcel land

29

(51)

83

94

Minority interest in Operating Partnership

(1,750)

(1,300)

(6,343)

(2,756)

Income from continuing operations

1,170

2,465

286

400

Discontinued operations:

Loss from discontinued operations

-

(243)

(235)

(417)

Loss on asset sales

-

-

(13,787)

-

0

(243)

(14,022)

(417)

Net income (loss)

1,170

2,222

(13,736)

(17)

Dividends on preferred shares

(3,404)

(3,404)

(6,806)

(6,806)

Net loss applicable to common shareholders

$

(2,234)

$

(1,182)

$

(20,542)

$

(6,823)

Per common share information:

Basic and Diluted EPS:

Loss from continuing operations before

discontinued operations, net of preferred dividends

$

(0.07)

$

(0.03)

$

(0.20)

$

(0.23)

Loss from discontinued operations

-

(0.01)

(0.44)

(0.02)

Net loss

$

(0.07)

$

(0.04)

$

(0.64)

$

(0.25)

Weighted average shares outstanding - basic (000)

32,170

27,619

32,110

26,918

</TABLE>

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

Consolidated Balance Sheets

June 30,

December 31,

2003

2002

(Unaudited)

(in thousands, except share

and per share data)

Assets

Income-producing properties:

Land

$

156,176

$

156,338

Buildings and improvements

1,085,762

1,072,366

Deferred leasing and other charges

39,543

43,038

1,281,481

1,271,742

Accumulated depreciation and amortization

(499,229)

(481,284)

782,252

790,458

Minority interest in Operating Partnership

-

3,265

Investment in joint venture

2,747

3,114

Cash and cash equivalents, unrestricted

11,437

14,122

Restricted cash and escrow deposits

11,102

8,967

Tenant and other receivables

13,200

14,813

Deferred charges and other assets

14,415

19,384

Assets from discontinued operations

-

25,309

$

835,153

$

879,432

Liabilities and Shareholders' Equity

Debt on income-producing properties

$

753,689

$

737,566

Accounts payable and other liabilities

41,904

44,569

Liabilities from discontinued operations

-

13,952

795,593

796,087

Commitments and contingencies

Shareholders' equity:

Non-redeemable senior preferred shares, 11% cumulative,

$.01 par value, 2,500,000 shares authorized and issued

25

25

Common shares, par value $.01 per share, 120,000,000 shares

authorized, 33,829,159 and 33,572,694 shares issued at

June 30, 2003 and December 31, 2002, respectively

338

335

Additional paid-in capital

367,038

365,247

Accumulated deficit

(312,260)

(266,554)

55,141

99,053

Less common shares held in treasury at cost; 1,534,398

shares at both June 30, 2003 and December 31, 2002

(14,652)

(14,652)

Less preferred shares held in treasury at cost; 25,000 shares at

both June 30, 2003 and December 31, 2002

(929)

(929)

Accumulated other comprehensive loss

-

(127)

39,560

83,345

$

835,153

$

879,432

</TABLE>

<TABLE>

<CAPTION>

SUPPLEMENTAL FINANCIAL AND OPERATIONAL INFORMATION PACKAGE

CROWN AMERICAN REALTY TRUST

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30,

2003

2002

(in thousands)

Cash flows from operating activities:

Net loss

$

(13,736)

$

(17)

Adjustments to reconcile net loss to net cash

provided by operating activities:

Minority interest in Operating Partnership

6,343

2,756

Equity earnings in joint venture

(253)

(191)

Depreciation and amortization

25,450

23,288

Operating loss from discontinued operations

235

418

Loss on asset sales

13,787

0

Loss on early extinguishment of debt

-

4,314

Net changes in:

Tenant and other receivables

1,626

1,120

Deferred charges and other assets

3,795

2,441

Restricted cash and escrow deposits

(2,088)

(1,983)

Accounts payable and other liabilities

(3,203)

(12,877)

Net cash from discontinued operations

(319)

331

Net cash provided by operating activities

31,637

19,600

Cash flows from investing activities:

Investment in income-producing properties

(15,379)

(7,006)

Change in investing escrow deposits

(1,062)

(557)

Distributions from joint venture

435

220

Capital investments in discontinued operations

0

(51)

Net cash used in investing activities

(16,006)

(7,394)

Cash flows from financing activities:

Net proceeds from common share issuance and exercise of stock options

1,908

47,291

Proceeds from issuance or assumption of debt, net of loan deposits and prepayment penalties

24,707

48,797

Cost of issuance of debt

-

(967)

Debt repayments

(7,576)

(92,928)

Dividends and distributions paid on common shares and partnership units

(17,810)

(15,283)

Dividends paid on senior preferred shares

(6,806)

(6,806)

Cash flow support payments

871

1,529

Debt repaid on discontinued operations

(13,610)

(4,702)

Net cash used in financing activities

(18,316)

(23,069)

Net decrease in cash and cash equivalents

(2,685)

(10,863)

Cash and cash equivalents, beginning of period

14,122

16,999

Cash and cash equivalents, end of period

$

11,437

$

6,136

Supplemental Cash Flow Data:

Interest paid (net of capitalized amounts)

$

24,516

$

24,562

Other comprehensive income - hedging activities

$

127

$

377

</TABLE>