AmREIT, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE DATED FEBRUARY 19, 2013

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8-K - FORM 8-K DATED FEBRUARY 19, 2013 - AmREIT, Inc.	amreit130725_8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

FOR INFORMATION CONTACT:

Chad C. Braun (cbraun@amreit.comUT)

AmREIT, (713) 850-1400

AmREIT REPORTS FOURTH QUARTER RESULTS and

ANNOUNCES 2013 GUIDANCE

HOUSTON, February 19, 2013 – AmREIT, Inc. (NYSE:AMRE) (“AmREIT” or the “Company”), today announced financial results for the quarter and year ended December 31, 2012 and its 2013 guidance.

Fourth Quarter and Year-to-Date Highlights:

Financial Results

Core Funds from Operations ("Core FFO") available to common stockholders for the fourth quarter of 2012 was $3.9 million, or $0.24 per share, compared to $4.5 million, or $0.39 per share for the comparable period in 2011. For the twelve months ended December 31, 2012, Core FFO was $14.6 million, or $1.08 per share, compared to $13.8 million, or $1.19 per share, for the comparable period in 2011.

FFO available to common stockholders for the fourth quarter of 2012 was $3.2 million, or $0.20 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2011. For the twelve months ended December 31, 2012, FFO was $13.9 million, or $1.03 per share, compared to $13.1 million, or $1.13 per share, for the comparable period in 2011.

Net income available to common stockholders for the fourth quarter of 2012 was $734,000, or $0.04 per share, compared to $1.2 million, or $0.11 per share, for the same period in 2011. For the twelve months ended December 31, 2012, net income was $4.5 million, or $0.32 per share, compared to $4.2 million, or $0.36 per share, for the same period in 2011. Net income for the three and twelve months ended December 31, 2011 was positively impacted by a gain on sale of approximately $417,000.

FFO and Core FFO are non-GAAP supplemental earnings measures that AmREIT consider meaningful in measuring its operating performance. A reconciliation of FFO and Core FFO to net income is attached to this press release.

Portfolio Results

In the fourth quarter of 2012, same-store net operating income (“NOI”) increased 3.2% over the prior year period. For the twelve months ended December 31, 2012, same-store NOI increased 3.0%, compared with the same period in 2011. From January 1, 2010 through December 31, 2012, AmREIT has experienced an average annual increase in same-store NOI of 3.2%.

Portfolio occupancy as of December 31, 2012 was 96.7%, an increase of approximately 80 basis points as compared to portfolio occupancy of 95.9% as of December 31, 2011.

During the fourth quarter of 2012, AmREIT signed eight leases for 30,373 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads (i.e. new leasing rate per square foot compared to the expiring leasing rate per square foot) increased 9.1% for renewals and increased 3.2% for new comparable leases. On a GAAP basis (which includes the effects of straight-line rent), leasing spreads increased 11.8% on renewals and 8.0% on new comparable leases.

For the twelve months ended December 31, 2012, AmREIT signed 39 leases for 145,828 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads increased 5.7% on renewals and 28.0% on new comparable leases. On a GAAP basis, leasing spreads increased 10.5% on renewals and 36.6% on new leases.

NOI is a non-GAAP supplemental earnings measure that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of NOI to net income is attached to this press release.

Dividends

AmREIT also announced today that the Company's Board of Directors has approved a regular quarterly cash dividend of $0.20 per share. The dividend will be paid on March 29, 2013 to all common stockholders of record on March 19, 2013.

Acquisitions and Dispositions

On December 12, 2012 AmREIT purchased Preston Royal Village Shopping Center, located at the northeast and northwest corners of Preston and Royal in the highly affluent Preston Hollow submarket of Dallas, Texas. Preston Royal Village Shopping Center is an approximately 230,000 square foot grocery-anchored shopping center that is 97% leased and occupied. The northwest corner of Preston and Royal is anchored by Tom Thumb (Safeway) and includes tenants such as Chico's, Barnes & Noble, Pinkberry and Dougherty's Pharmacy (an original tenant of the shopping center). The northeast corner of Preston and Royal is unanchored and includes tenants such as Bank of America, Starbucks, Omaha Steaks, Einstein Bagels, and Fed-Ex/Kinko's. The shopping center was acquired for a total of $66.9 million, including closing costs and prorations. The property was funded through a $31.2 million draw against our unsecured credit facility, $12.3 million in cash, and a $23.4 million secured mortgage with a 3.21% interest rate.

On January 24, 2013, we entered into an agreement with Goldman Sachs to form a joint venture through our contribution to a newly-organized single purpose entity of our MacArthur Park property as well as the acquisition by the joint venture of the contiguous property to the east (“MacArthur Park Phase I”), excluding Target. Goldman Sachs will contribute cash for a 70% interest in the joint venture. The joint venture would concurrently purchase MacArthur Park Phase I, currently owned by Farmers New World Life Insurance Company, for approximately $26.2 million and place mortgage financing on the entire combined property of approximately $43.9 million. The joint venture will fully repay the MacArthur Park debt of approximately $8.8 million, including a $2.2 million defeasance penalty. At the conclusion of this transaction, AmREIT will hold a 30% ownership in the joint venture and receive net cash proceeds of approximately $35.4 million which would be used to repay borrowings under our unsecured credit facility. We expect this transaction to close in March 2013; however, closing is subject to customary closing conditions and we can make no assurances of when or if this joint venture will actually be formed and capitalized. AmREIT will continue to manage and lease MacArthur Park on behalf of the joint venture and will retain a right of first offer to acquire the project in the future, after a lock out period.

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"AmREIT's strategy of creating value on 'Irreplaceable Corners' within our affluent, dense sub-markets was again advanced through our activities this past quarter," said H. Kerr Taylor, Chairman and Chief Executive Officer of AmREIT. "The off market acquisition of our Preston Royal Shopping Centers brought into our portfolio what we believe are two of the highest quality projects in the Dallas marketplace. The anticipated acquisition of the remainder of the MacArthur Park Project and our joint venture with Goldman Sachs are solid steps forward as they are expected to grow our platform, increase fee income and allow us to recycle capital."

Guidance

Full year 2013 Core FFO and FFO guidance per share is as follows:

	Projected 2013 Range
	High	Low
Core FFO	$1.07	$1.02
FFO	$0.98	$0.93

Our full year 2013 Core FFO and FFO guidance is supported by the following assumptions:

Same-Store NOI growth target of 3.0% to 4.0%;

Average occupancy of 96.8% to 97.1%;

Portfolio growth through acquisitions of $100 million;

Platform growth of $40 million (off balance sheet through advised funds), excluding the MacArthur Park joint venture;

Redeployment of cash received from the MacArthur Park joint venture;

Redeployment of cash received from the sale of 3-5 single tenant properties, targeted for the second half of the year;

Recurring Advised Fund real estate fee income of $2.2 million (asset management and property management fees);

Transactional Advised Fund real estate fee income of $1.1 million (leasing, development, construction and brokerage fees); and

Annual G&A run rate of $7.8 million.

Other Activities

AmREIT will hold its Annual Meeting of Stockholders at 10:00 AM CST on April 18, 2013.

At the Annual Meeting of Stockholders, stockholders will be asked to vote, among other items, on two charter amendments that, when taken together, will have the effect of converting all of our issued and unissued Class A common stock into Class B common stock, on a one-for-one basis, after which all of AmREIT’s common stock would be listed on the New York Stock Exchange and freely tradable.

"Our 2012 financial results combined with our 2013 financial guidance reflect the sector-leading quality of our portfolio and are tracking the growth and operational goals that we have previously established," said Chad C. Braun, Chief Operating and Financial Officer of AmREIT. "The combination of additional capital resources created through the joint venture with Goldman Sachs and additional public float generated by the exchange of our Class A common stock into our NYSE-listed Class B common stock during 2013 should provide for a balance sheet that is poised for growth and allow us to execute upon our growth strategy during 2013."

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Conference Call

AmREIT will hold its quarterly conference call to discuss the results of its fourth quarter of 2012 Wednesday, February 20, 2013, at 10:00 a.m. Central Standard Time (11:00 a.m. Eastern Standard Time). To participate in the quarterly conference call, please call 1-888-317-6016 approximately 10 minutes before the scheduled start time. The conference call will be recorded and a replay of the call will be available via webcast shortly after the call concludes.

The conference call will also be webcast live at www.amreit.com and can be accessed under the Investors tab of the Company's website. A telephonic replay of the conference call will be available for 14 days following the conference call. To access the telephonic replay of the conference call, dial 1-877-344-7529 and enter passcode 10023750.

Supplemental Financial Information

Further details regarding AmREIT’s results of operations, properties, and tenants are attached to this press release and can be accessed at the Company’s web site at www.amreit.com.

About AmREIT

AmREIT believes it has one of the highest quality grocery and drugstore anchored retail portfolios in the REIT sector. AmREIT's 29 year-old established platform has localized acquisition, operation and redevelopment expertise in the most densely populated and affluent submarkets of five of the top markets in the U.S.: Houston, Dallas, San Antonio, Austin and Atlanta. Texas is one of the best performing economies in the country and 92% of AmREIT's income for the year ended December 31, 2012 was generated by its properties located in this market. AmREIT’s management team has in-depth knowledge and extensive relationship advantages within its markets. AmREIT's core portfolio was 96.7% occupied as of December 31, 2012, and its top five tenants include Kroger, Landry's, CVS/Pharmacy, H-E-B and Publix. AmREIT also has access to an acquisition pipeline through its value add joint ventures, including two leading institutional investors who partner with the company as local experts. AmREIT's Class B common stock is traded on the New York Stock Exchange under the symbol “AMRE.” For more information, please visit www.amreit.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to full year 2013 Core FFO and FFO financial projections and the underlying assumptions of such projections stated herein. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect AmREIT’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, AmREIT disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact AmREIT’s future results, performance or transactions, see the section entitled "Risk Factors" in AmREIT’s final prospectus dated July 26, 2012, filed with the Securities and Exchange Commission on July 27, 2012 and other risks described in documents subsequently filed by AmREIT from time to time with the Securities and Exchange Commission.

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Additional Information related to the 2013 Annual Meeting of Stockholders

In connection with its 2013 Annual Meeting of Stockholders, the Company will file a proxy statement and other documents regarding the 2013 Annual Meeting (the “2013 Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) and will mail the 2013 Proxy Statement and a proxy card to each stockholder of record entitled to vote at the 2013 Annual Meeting. STOCKHOLDERS ARE ENCOURAGED TO READ THE 2013 PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain the documents free of charge at the SEC’s website, www.sec.gov, and from AmREIT at its website, www.amreit.com, or 8 Greenway Plaza, Suite 1000, Houston, Texas 77046, Attention: Corporate Secretary.

Participants in Solicitation

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the 2013 Annual Meeting. Information concerning the Company’s participants is set forth in AmREIT’s final prospectus dated July 26, 2012, filed with the SEC on July 27, 2012. Additional information regarding the interests of participants of the Company in the solicitation of proxies in respect of the 2013 Annual Meeting of Stockholders and other relevant materials will be included in the 2013 Proxy Statement to be filed with the SEC in connection with the 2013 Annual Meeting.

Investor Contact

For more information, call Chad Braun, Chief Operating Officer and Chief Financial Officer of AmREIT, at (713) 850-1400. AmREIT is online at www.amreit.com.

(Financial and Operating Tables to Follow)

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Operating Results

(Unaudited)

(in thousands, except share and per share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Revenues:
Rental income from operating leases	$	10,463		$	8,885		$	37,438		$	32,995
Advisory services income – related party		897			858			3,870			3,789
Lease termination fee income		—			22			—			131
Total revenues		11,360			9,765			41,308			36,915

Expenses:
General and administrative		1,927			1,854			6,733			6,049
Property expense		3,099			1,857			9,891			7,770
Legal and professional		242			157			919			945
Real estate commissions		119			50			387			342
Acquisition costs		687			7			687			229
Depreciation and amortization		2,321			2,186			8,884			8,257
Impairment recovery - notes receivable		—			(1,071	)		(443	)		(1,071	)
Total expenses		8,395			5,040			27,058			22,521

Operating income		2,965			4,725			14,250			14,394

Other income (expense):
Interest and other income		123			110			485			493
Interest and other income – related party		69			135			462			319
Loss from Advised Funds		(110	)		(60	)		(238	)		(384	)
Income tax expense		(54	)		(74	)		(248	)		(262	)
Interest expense		(2,259	)		(2,705	)		(10,251	)		(9,971	)
Issuance costs		—			(914	)		—			(914	)

Income from continuing operations		734			1,217			4,460			3,675

Income from discontinued operations, net of tax		—			3			—			148
Gain on sale of real estate acquired for resale		—			—			—			417
Income from discontinued operations		—			3			—			565

Net income	$	734		$	1,220		$	4,460		$	4,240

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(in thousands, except share and per share data)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Reconciliation of Net Income to Funds From Operations (FFO):
Net income	$	734	$	1,220	$	4,460	$	4,240
Depreciation – from operations		2,309		2,169		8,832		8,181
Depreciation – from discontinued operations		—		—		—		13
Depreciation of real estate assets for non-consolidated affiliates		156		170		622		628
FFO	$	3,199	$	3,559	$	13,914	$	13,062

Acquisition costs		687		7		687		229
Issuance costs		—		914		—		914
Gain on sale of real estate acquired for resale		—		—		—		(417	)
Core FFO	$	3,886	$	4,480	$	14,601	$	13,788

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	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2012			2011			2012			2011
Reconciliation of Net Income to Net Operating Income(NOI):
Net income	$	734		$	1,220		$	4,460		$	4,240
Adjustments to add/(deduct):
Amortization of straight-line rents and above/below-market rents ⁽¹⁾		(158	)		(114	)		(430	)		(36	)
Lease termination fee income		—			(22	)		—			(131	)
Advisory services income - related party		(897	)		(858	)		(3,870	)		(3,789	)
Interest and other income		(123	)		(110	)		(485	)		(493	)
Interest and other income - related party		(69	)		(135	)		(462	)		(319	)
Straight-line rent bad debt recoveries ⁽²⁾		9			—			(90	)		(205	)
General and administrative		1,927			1,854			6,733			6,049
Legal and professional		242			157			919			945
Real estate commissions		119			50			387			342
Acquisition costs		687			7			687			229
Depreciation and amortization		2,321			2,186			8,884			8,257
Impairment recovery - notes receivable		—			(1,071	)		(443	)		(1,071	)
Loss from Advised Funds		110			60			238			384
State income tax expense		54			74			248			262
Interest expense		2,259			2,705			10,251			9,971
Stock issuance costs		—			914			—			914
Income from discontinued operations		—			(3	)		—			(565	)
Net operating income	$	7,215		$	6,914		$	27,027		$	24,984

_____________

(1)

Included in rental income from operating leases on our consolidated statements of operations.

(2)

Included in property expense on our consolidated statement of operations.

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	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2012		2011		2012		2011
Basic and Diluted Per Share Data:
Income before discontinued operations	$	0.04	$	0.11	$	0.32	$	0.31
Income from discontinued operations	$	—	$	—	$	—	$	0.05
Net income	$	0.04	$	0.11	$	0.32	$	0.36

FFO	$	0.20	$	0.31	$	1.03	$	1.13
Core FFO	$	0.24	$	0.39	$	1.08	$	1.19

Distributions per share of common stock	$	0.20	$	0.20	$	0.80	$	0.80

Share Data:
Weighted average shares used to compute net income per share, basic and diluted		15,580,000		11,391,000		13,120,000		11,384,000

Weighted average restricted shares		543,000		207,000		359,000		207,000
Weighted average shares used to compute FFO per share		16,123,000		11,599,000		13,479,000		11,591,000

Market Capitalization Table:

Common Stock Outstanding (12/31/12)	Number of Shares		Price⁽¹⁾		Market Capitalization
Class A common stock (assuming a price per share equal to Class B price)		11,657,563	$	17.15	$	199,927,205
Class B common stock		4,465,725	$	17.15	$	76,587,183
Total		16,123,288			$	276,514,388

________________

(1)

Represents the last reported price per share of the Class B common stock on the New York Stock Exchange on December 31, 2012.

Balance Sheet Highlights

(in thousands)

(Unaudited)

	December 31,
	2012		2011
Real estate investments before accumulated depreciation	$	387,525	$	325,033
Net real estate investments		371,634		309,629
Total assets		397,394		330,610
Notes payable		218,579		201,658
Total liabilities		231,679		211,686
Total stockholders’ equity	$	165,715	$	118,924

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Non-GAAP Financial Disclosure

This press release contains certain non-GAAP financial measures that management believes are useful in evaluating an equity REIT’s performance. AmREIT’s definitions and calculations of non-GAAP financial measures may differ from those used by other equity REITs, and therefore may not be comparable. The non-GAAP financial measures should not be considered as an alternative to net income as an indication of our operating results, or to net cash provided by operating activities as a measure of our liquidity.

Funds From Operations (FFO)

AmREIT considers FFO to be an appropriate measure of the operating performance of an equity REIT. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses from sales of property, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. AmREIT calculates its FFO in accordance with this definition. Management considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses on dispositions and excluding depreciation, FFO is a helpful tool that can assist in the comparison of the operating performance of a company’s real estate between periods, or as compared to different companies. FFO is not defined by GAAP and should not be considered as an alternative to net income as an indication of our operating performance or to net cash provided by operating activities as a measure of our liquidity. FFO as disclosed by other REITs may not be comparable to AmREIT’s calculation.

Additionally, AmREIT considers Core FFO, which adjusts reported FFO for items that do not reflect ongoing property operations, such as acquisition expense, write off of deferred financing costs, and expensed issuance costs, to be a meaningful performance measurement.

Projected FFO is calculated in a method consistent with historical FFO, and AmREIT considers projected FFO to be an appropriate supplemental measure when compared with projected earnings per share. A reconciliation of the projected FFO to projected earnings per share is provided below:

	Projected 2013 Range
	High		Low
Net income	$	0.26	$	0.21
Depreciation and amortization		0.68		0.68
Depreciation and amortization for non-consolidated affiliates		0.04		0.04
FFO	$	0.98	$	0.93
Acquisition costs		0.09		0.09
Core FFO	$	1.07	$	1.02

Net Operating Income (NOI)

AmREIT believes that NOI is a useful measure of operating performance. AmREIT defines NOI as operating revenues (rental income, tenant recovery income, percentage rent, excluding straight-line rental income and amortization of acquired above- and below-market rents) less property operating expenses (real estate tax expense and property operating expense, excluding straight-line rent bad debt expense). Other REITs may use different methodologies for calculating NOI, and accordingly, AmREIT’s NOI may not be comparable to other REITs. AmREIT uses NOI to evaluate its performance on a property-by-property basis because NOI allows the company to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on operating results. However, NOI should only be used as a supplemental measure of AmREIT’s financial performance.

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Same Store Property Analysis:

Comparison of the three months ended December 31, 2012, to the three months ended December 31, 2011

Below are the results of operations for the three months ended December 31, 2012 and 2011 (in thousands, except for per share amounts, percentages and number of properties). In the comparative tables presented below, increases in revenues/income or decreases in expenses (favorable variances) are shown without parentheses while decreases in revenues/income or increases in expenses (unfavorable variances) are shown with parentheses. For purposes of comparing our results of operations for the periods presented below, all of our properties in the “same store” reporting group were owned since January 1, 2011.

	Three months ended December 31,
	2012			2011			Change $			Change %
Same store properties (26 properties)
Rental income ⁽¹⁾	$	6,699		$	6,537		$	162			2.5	%
Recovery income ⁽¹⁾		2,911			1,857			1,054			56.8	%
Percentage rent ⁽¹⁾		497			330			167			50.6	%
Less:
Property expenses		3,017			1,854			(1,163	)		(62.7	)%
Same store net operating income		7,090			6,870			220			3.2	%

Non-same store properties (6 properties)
Rental income ⁽¹⁾		182			44			138			313.6	%
Recovery income ⁽¹⁾		17			—			17			*
Less:
Property expenses		74			—			(74	)		*
Non-same store net operating income		125			44			81			184.1	%
Total net operating income		7,215			6,914			301			4.4	%

Other revenues (see further detail below):		1,246			1,242			4			0.3	%

Less other expenses (see further detail below):		7,727			6,939			(788	)		(11.4	)%

Income (loss) from continuing operations		734			1,217			(483	)		(39.7	)%
Income from discontinued operations		—			3			(3	)		*
Net income	$	734		$	1,220		$	(486	)		(39.8	)%

Other data
Funds from operations	$	3,199		$	3,559		$	(360	)		(10.1	)%
Number of properties at end of period		32			29			n/a			*
Percent leased at end of period⁽²⁾		96.7	%		95.9	%		n/a			0.8	%
Distributions per share	$	0.20		$	0.20		$	—			*

_____________

(1)

Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the three months ended December 31, 2012 and 2011, rental income from operating leases was $10,463 and $8,885, respectively.

(2)

Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012 or 2011, divided by (ii) total GLA as of such dates, expressed as a percentage.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

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Other Revenues (in thousands)

	Three months ended December 31,
	2012		2011		Change $			Change %
Amortization of straight-line rents and above/below market rents⁽¹⁾	$	157	$	117	$	40			34.2	%
Advisory services income - related party:
Real estate fee income - related party		676		574		102			17.8	%
Asset management fee income - related party		155		231		(76	)		(32.9	)%
Construction management fee income - related party		66		53		13			24.5	%
Total advisory services income - related party		897		858		39			4.5	%
Lease termination and other income		—		22		(22	)		(100.0	)%
Interest and other income		123		110		13			11.8	%
Interest and other income - related party		69		135		(66	)		(48.9	)%
Total other revenues	$	1,246	$	1,242	$	4			0.3	%

_____________

(1)

Included in rental income from operating leases as presented on our consolidated statements of operations.

Other Expenses (in thousands)

	Three months ended December 31,
	2012		2011			Change $			Change %
Straight-line bad debt recoveries⁽¹⁾	$	7	$	3		$	(4	)		133.3	%
General and administrative		1,927		1,854			(73	)		(3.9	)%
Legal and professional		242		157			(85	)		(54.1	)%
Real estate commissions		119		50			(69	)		(138.0	)%
Acquisition costs		687		7			(680	)		*
Depreciation and amortization		2,321		2,186			(135	)		(6.2	)%
Impairment recovery - notes receivable		—		(1,071	)		(1,071	)		100.0	%
Loss from Advised Funds		110		60			(50	)		(83.3	)%
State income taxes		54		74			20			27.0	%
Interest expense		2,260		2,705			445			16.5	%
Issuance costs		—		914			914			100.0	%
Total other expenses	$	7,727	$	6,939		$	(788	)		(11.4	)%

_____________

(1)

Included in property expense on our consolidated statements of operations.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

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Comparison of the year ended December 31, 2012, to the year ended December 31, 2011

Below are the results of operations for the year ended December 31, 2012 and 2011 (in thousands, except for per share amounts, percentages and number of properties). In the comparative tables presented below, increases in revenues/income or decreases in expenses (favorable variances) are shown without parentheses while decreases in revenues/income or increases in expenses (unfavorable variances) are shown with parentheses. For purposes of comparing our results of operations for the periods presented below, all of our properties in the “same store” reporting group were owned since January 1, 2011.

	Year ended December 31,
	2012			2011			Change $			Change %
Same store properties (25 properties)
Rental income ⁽¹⁾	$	22,993		$	22,300		$	693			3.1	%
Recovery income ⁽¹⁾		8,274			6,911			1,363			19.7	%
Percentage rent ⁽¹⁾		631			425			206			48.5	%
Less:
Property expenses		8,699			7,121			(1,578	)		(22.2	)%
Same store net operating income		23,199			22,515			684			3.0	%

Non-same store properties (6 properties)
Rental income ⁽¹⁾		3,914			2,498			1,416			56.7	%
Recovery income ⁽¹⁾		1,196			825			371			45.0	%
Less:
Property expenses		1,282			854			(428	)		(50.1	)%
Non-same store net operating income		3,828			2,469			1,359			55.0	%
Total net operating income		27,027			24,984			2,043			8.2	%

Other revenues (see further detail below):		5,247			4,768			479			10.0	%

Less other expenses (see further detail below):		27,814			26,077			(1,737	)		(6.7	)%

Income (loss) from continuing operations		4,460			3,675			785			21.4	%
Income from discontinued operations		—			565			(565	)		(100.0	)%
Net income	$	4,460		$	4,240		$	220			5.2	%

Other data
Funds from operations	$	13,914		$	13,062		$	852			6.5	%
Number of properties at end of period		32			29			n/a			*
Percent leased at end of period⁽²⁾		96.7	%		95.9	%		n/a			0.8	%
Distributions per share	$	0.80		$	0.80		$	—			*

_____________

(1)

Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the years ended December 31, 2012 and 2011, rental income from operating leases was $37,438 and $32,995, respectively.

(2)

Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012 or 2011, divided by (ii) total GLA as of such dates, expressed as a percentage.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

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Other Revenues (in thousands)

	Year ended December 31,
	2012		2011		Change $			Change %
Amortization of straight-line rents and above/below market rents⁽¹⁾	$	430	$	36	$	394			*
Advisory services income - related party:
Real estate fee income - related party		3,005		2,491		514			20.6	%
Asset management fee income - related party		622		1,064		(442	)		(41.5	)%
Construction management fee income - related party		243		234		9			3.8	%
Total advisory services income - related party		3,870		3,789		81			2.1	%
Lease termination fee income		—		131		(131	)		(100.0	)%
Interest and other income		485		493		(8	)		(1.6	)%
Interest and other income - related party		462		319		143			44.8	%
Total other revenues	$	5,247	$	4,768	$	479			10.0	%

_____________

(1)

Included in rental income from operating leases as presented on our consolidated statements of operations.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

Other Expenses (in thousands)

	Three months ended December 31,
	2012			2011			Change $			Change %
Straight-line bad debt recoveries⁽¹⁾	$	(90	)	$	(205	)	$	(115	)		(56.1	)%
General and administrative		6,733			6,049			(684	)		(11.3	)%
Legal and professional		919			945			26			2.8	%
Real estate commissions		387			342			(45	)		(13.2	)%
Acquisition costs		687			229			(458	)		(200.0	)
Depreciation and amortization		8,884			8,257			(627	)		(7.6	)%
Impairment recovery - notes receivable		(443	)		(1,071	)		(628	)		58.6	%
Loss from Advised Funds		238			384			146			38.0	%
State income taxes		248			262			14			5.3	%
Interest expense⁽²⁾		10,251			9,971			(280	)		(2.8	)%
Issuance costs		—			914			914			100.0	%
Total other expenses	$	27,814		$	26,077		$	(1,737	)		(6.7	)%

_____________

(1)

Included in property expense on our consolidated statements of operations.

(2)

Includes $362 of unamortized loan acquisition fees written off during the year ended December 31, 2012, in connection with the repayment of loans using proceeds from our initial public offering in 2012 and refinance of our Uptown Plaza Dallas debt.

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Comparison of the year ended December 31, 2011, to the year ended December 31, 2010

Below are the results of operations for the years ended December 31, 2011 and 2010 (in thousands, except for per share amounts, percentages and number of properties). In the comparative tables presented below, increases in revenues/income or decreases in expenses (favorable variances) are shown without parentheses while decreases in revenues/income or increases in expenses (unfavorable variances) are shown with parentheses. For purposes of comparing our results of operations for the periods presented below, all of our properties in the “same store” reporting group were owned since January 1, 2010.

	Year ended December 31,
	2011			2010			Change $			Change %
Same store properties (25 properties)
Rental income ⁽¹⁾	$	22,090		$	21,675		$	415			1.9	%
Recovery income ⁽¹⁾		6,737			6,674			63			0.9	%
Percentage rent ⁽¹⁾		425			555			(130	)		(23.4	)%
Less:
Property expenses		6,943			7,829			886			11.3	%
Same store net operating income		22,309			21,075			1,234			5.9	%

Non-same store properties (4 properties)
Rental income ⁽¹⁾		2,708			22			2,686			*
Recovery income ⁽¹⁾		999			7			992			*
Less:
Property expenses		1,032			4			(1,028	)		*
Non-same store net operating income		2,675			25			2,650			*
Total net operating income		24,984			21,100			3,884			18.4	%

Other revenues (see further detail below):		4,768			10,548			(5,780	)		(54.8	)%

Less other expenses (see further detail below):		26,077			31,725			5,648			17.8	%

Income (loss) from continuing operations		3,675			(77	)		3,752			*
Income from discontinued operations		565			6,382			(5,817	)		(91.1	)%
Net income		4,240			6,305			(2,065	)		(32.8	)%
Net loss attributable to non-controlling interest		—			(173	)		173			100.0	%
Net income attributable to AmREIT stockholders	$	4,240		$	6,132		$	(1,892	)		(30.9	)%

Other data
Funds from operations	$	13,062		$	13,821		$	(759	)		(5.5	)%
Number of properties at end of period		29			28			n/a			*
Percent leased at end of period⁽²⁾		95.9	%		92.2	%		n/a			3.7	%
Distributions per share	$	0.80		$	0.90		$	(0.10	)		*

_____________

(1)

Rental income from operating leases is comprised of rental income, recovery income and percentage rent from same store properties, rental income and recovery income from non-same store properties and amortization of straight-line rents and above/below market rents. For the years ended December 31, 2011 and 2010, rental income from operating leases was $32,995 and $29,155, respectively.

(2)

Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2011 or 2010, divided by (ii) total GLA as of such dates, expressed as a percentage.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

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Other Revenues (in thousands)

	Year ended December 31,
	2011		2010		Change $			Change %
Amortization of straight-line rents and above/below market rents⁽¹⁾	$	36	$	222	$	(186	)		(83.8	)%
Advisory services income - related party:
Real estate fee income - related party		2,491		2,375		116			4.9	%
Asset management fee income - related party		1,064		1,480		(416	)		(28.1	)%
Construction management fee income - related party		234		349		(115	)		(33.0	)%
Total advisory services income - related party		3,789		4,204		(415	)		(9.9	)%
Lease termination fee income		131		15		116			*
Interest and other income		493		459		34			7.4	%
Interest and other income - related party		319		274		45			16.4	%
Gain on debt extinguishment		—		5,374		(5,374	)		(100.0	)%
Total other revenues	$	4,768	$	10,548	$	(5,780	)		(54.8	)%

_____________

(1)

Included in rental income from operating leases as presented on our consolidated statements of operations.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

Other Expenses (in thousands)

	Year ended December 31,
	2011			2010		Change $			Change %
Straight-line bad debt recoveries⁽¹⁾	$	(205	)	$	481	$	686			(142.6	)%
General and administrative		6,049			5,944		(105	)		(1.8	)%
Legal and professional		945			1,165		220			18.9	%
Real estate commissions		342			191		(151	)		(79.1	)%
Acquisition costs		229			12		(217	)		*
Depreciation and amortization		8,257			6,634		(1,623	)		(24.5	)%
Impairment - properties		—			2,268		2,268			100.0	%
Impairment (recovery) - notes receivable		(1,071	)		1,800		2,871			159.5	%
Loss from Advised Funds		384			1,186		802			67.6	%
Income tax expense for taxable REIT subsidiary		—			1,245		1,245			100.0	%
State income taxes		262			270		8			3.0	%
Interest expense		9,971			9,541		(430	)		(4.5	)%
Issuance costs		914			—		(914	)		*
Debt prepayment penalties		—			988		988			100.0	%
Total other expenses	$	26,077		$	31,725	$	5,648			17.8	%

_____________

(1)

Included in property expense on our consolidated statements of operations.

Percentage change not shown as there is no prior year amount, or such amount is immaterial, and the percentage change is not meaningful.

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Advisory Services Income – Related Party (in thousands):

	Three months ended December 31,				Twelve months ended December 31,
	2012		2011		2012		2011
Leasing commission income	$	315	$	229	$	1,240	$	1,103
Property management fee income		345		328		1,261		1,216
Development fee income		16		17		504		172
Asset management fee income		155		231		622		1,064
Construction management fee income		66		53		243		234
Advisory services income - related party	$	897	$	858	$	3,870	$	3,789

Reimbursements of administrative costs	$	214	$	330	$	855	$	885

Rental Income from Operating Leases (in thousands):

	Three months ended December 31,				Twelve months ended December 31,
	2012		2011		2012		2011
Base minimum rent	$	6,881	$	6,581	$	26,907	$	24,798
Straight-line rent adjustments		110		65		233		(133	)
Amortization of above/below market rent		47		52		197		169
Percentage rent		497		330		631		425
Recovery income		2,928		1,857		9,470		7,736
Rental income from operating leases	$	10,463	$	8,885	$	37,438	$	32,995

Debt and Market Data (in thousands, except ratios):

	December 31,			% of			December 31,		% of
	2012			Total			2011		Total
Fixed vs. variable rate debt
Variable Rate - Line of Credit	$	33,500			15.3	%	$	19,345		9.6	%
Fixed Rate - Mortgage Loans		185,079			84.7	%		141,373		70.1	%
Variable Rate - Mortgage Loans		—			0.0	%		40,940		20.3	%
	$	218,579			100.0	%	$	201,658		100.0	%

Debt statistics
EBITDA	$	23,843					$	22,743
Ratio of EBITDA to combined fixed charges⁽¹⁾		2.19						2.08
Ratio of Debt to EBITDA		9.17	⁽²⁾					8.87

Reconciliation of net income to EBITDA
Net income	$	4,460					$	4,240
Interest expense		10,251						9,971
State income taxes		248						262
Depreciation and amortization		8,884						8,257
Depreciation and amortization from discontinued operations		—						13
EBITDA	$	23,843					$	22,743

_____________

(1)

Fixed charges consist of interest expense and scheduled principal payments on borrowed funds (including capitalized interest, but excluding amortization of debt premium).

(2)

As of December 31, 2012, fixed rate mortgage loans include $23.4 million related to the acquisition of Preston Royal West on December 12, 2012. The ratio of debt (excluding this loan) to EBITDA is 8.19.

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Outstanding Balances and Terms:

AmREIT

Debt Information

(in thousands)

Description	Amount Outstanding 12/31/12			Interest Rate			Annual Debt Service		Maturity Date	% of total			Weighted average rate maturing
Property Mortgages:

500 Lamar		1,630			6.00	%	$	98	2/1/2015
Uptown Park		49,000			5.37	%		2,631	6/1/2015
2015 Maturities		50,630									23.20	%		5.39	%

Plaza in the Park		23,250			3.45	%		802	1/1/2016
Market at Lake Houston		15,675			5.75	%		901	1/1/2016
Cinco Ranch		9,750			3.45	%		336	1/1/2016
Southbank - Riverwalk		20,000			5.91	%		1,182	6/1/2016
2016 Maturities		68,675									31.46	%		4.69	%

Bakery Square		2,019			8.00	%		162	2/10/2017
2017 Maturities		2,019									0.93	%		8.00	%

Alpharetta Commons		12,231			4.54	%		555	8/1/2018
2018 Maturities		12,231									5.60	%		4.54	%

Preston Royal West		23,400			3.21	%		751	1/1/2020
MacArthur Pad Sites		6,613			6.17	%		408	7/1/2020
2020 Maturities		30,013									13.75	%		3.86	%

Brookwood Village		7,271			5.40	%		393	2/10/2022
Uptown Plaza - Dallas		13,922			4.25	%		592	8/10/2022
2022 Maturities		21,193									9.71	%		4.64	%

Corporate debt:

$75.0 million Facility⁽¹⁾	$	33,500			⁽¹⁾		$	906	8/1/2015		0.15			⁽¹⁾

Total Maturities⁽²⁾		218,261

Weighted average rate		4.04	%

___________

(1)

The unsecured credit facility bears interest at LIBOR plus a margin of 205 basis points to 275 basis points, depending on our leverage, and carries a fee equal to 0.35% of the unused portion of the total amount available under the facility. Annual debt service assumes current amount outstanding as well as current interest rates, remain constant.

(2)

Total maturities above are $318 less than total debt as reported in our consolidated balance sheets as of December 31, 2012, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions.

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Property & Tenant Information:

Property	Property Location	Year Built / Renovated		GLA		Percent Leased⁽¹⁾			Annualized Base Rent⁽²⁾		ABR per Leased Square Foot⁽³⁾		Average Net Effective ABR per Leased Square Foot⁽⁴⁾		Key Tenants
Neighborhood and Community Shopping Centers
Uptown Park	Houston, TX		1999/2005		169,112		97.0	%	$	5,496,404	$	33.51	$	35.04	Champps, McCormick & Schmicks (owned by Landry's)
MacArthur Park	Dallas, TX		2000		237,351		92.6	%		3,721,329		16.92		17.68	Kroger, Barnes & Noble, GAP
Plaza in the Park	Houston, TX		1999/2009		144,054		97.4	%		2,761,041		19.69		19.92	Kroger
Preston Royal East	Dallas, TX		1956		107,914		95.8	%		2,576,720		24.93		25.13	Bank of America, Starbucks, FedEx Office
Preston Royal West	Dallas, TX		1959		122,564		99.2	%		2,447,504		20.12		20.29	Tom Thumb, Barnes & Noble, Spec's
Southbank	San Antonio, TX		1995		46,673		96.0	%		1,656,463		36.96		37.30	Hard Rock Café
The Market at Lake Houston	Houston, TX		2000		101,799		100.0	%		1,614,750		15.86		15.91	H-E-B, Five Guys
Uptown Plaza - Dallas	Dallas, TX		2006		33,840		100.0	%		1,448,387		42.80		43.64	Morton's (owned by Landry's), Wells Fargo
Alpharetta Commons	Atlanta, GA		1997		94,544		98.7	%		1,324,342		14.19		14.36	Publix
Cinco Ranch	Houston, TX		2001		97,297		100.0	%		1,310,644		13.47		13.58	Kroger
Uptown Plaza - Houston	Houston, TX		2002		28,000		100.0	%		1,315,746		46.99		46.11	CVS/pharmacy, The Grotto (owned by Landry's)
Bakery Square	Houston, TX		1996		34,614		94.3	%		913,061		27.98		28.09	Walgreens, Boston Market
Brookwood Village	Atlanta, GA		1941/2000		28,774		97.9	%		710,043		25.21		22.66	CVS/pharmacy, Subway
Courtyard on Post Oak	Houston, TX		1994		13,597		29.5	%		260,845		65.00		61.41	Verizon
Woodlands Plaza	Houston, TX		1997/2003		20,018		100.0	%		460,229		22.99		24.05	FedEx Office
Terrace Shops	Houston, TX		2000		16,395		91.3	%		456,682		30.50		30.19	Starbucks
Sugarland Plaza	Houston, TX		1998/2001		16,750		100.0	%		402,188		24.01		23.45	Memorial Hermann
500 Lamar	Austin, TX		1998		12,795		100.0	%		399,322		31.21		29.52	Title Nine Sports
Neighborhood and Community Shopping Centers Subtotal/Weighted Average					1,326,091		96.3	%	$	29,275,700	$	22.91	$	23.26

Single Tenant (Ground Leases)⁽⁵⁾
CVS/Pharmacy	Houston, TX		2003		13,824		100.0	%	$	327,167	$	23.67	$	23.67	CVS/pharmacy
Jared The Galleria of Jewelery	Houston, TX		2012		8,046		100.0	%		180,000		22.37		25.96	Jared The Galleria of Jewelery
Citibank	San Antonio, TX		2005		4,439		100.0	%		160,000		36.04		36.04	Citibank
Landry's Seafood	Houston, TX		1995		13,497		100.0	%		155,677		11.53		12.18	Landry's Seafood
T.G.I. Friday's⁽⁶⁾	Hanover, MD		2003		6,802		100.0	%		148,458		21.83		23.44	T.G.I. Friday's
Bank of America	Houston, TX		1994		4,251		100.0	%		129,275		30.41		28.78	Bank of America
Macaroni Grill	Houston, TX		1994		7,825		100.0	%		96,000		12.27		12.05	Macaroni Grill
T.G.I. Friday's	Houston, TX		1994		6,543		100.0	%		96,000		14.67		14.41	T.G.I. Friday's
Smokey Bones	Atlanta, GA		1998		6,867		100.0	%		94,922		13.82		13.82	Smokey Bones
Single Tenant (Ground Leases) Subtotal/Weighted Average					72,094		100.0	%	$	1,387,499	$	19.25	$	19.78

Single Tenant (Fee Simple)⁽⁷⁾
The Container Store	Houston, TX		2011		25,019		100.0	%	$	425,323	$	17.00	$	17.91	The Container Store
T.G.I. Friday's	Houston, TX		1982		8,500		100.0	%		215,000		25.29		25.90	T.G.I. Friday's
Golden Corral⁽⁶⁾	Houston, TX		1992		12,000		100.0	%		210,450		17.54		17.54	Golden Corral
Golden Corral⁽⁶⁾	Houston, TX		1993		12,000		100.0	%		208,941		17.41		22.16	Golden Corral
Sunbelt Rentals	Champaign, IL		2007		12,000		100.0	%		140,000		11.67		12.72	Sunbelt Rentals
Single Tenant (Fee Simple) Subtotal/Weighted Average					69,519		100.0	%	$	1,199,714	$	17.26	$	18.66

Portfolio Total/Weighted Average					1,467,704		96.7	%	$	31,862,913	$	22.45	$	22.86

_____________

(1)

Percent leased is calculated as (i) GLA under commenced leases as of December 31, 2012, divided by (ii) total GLA, expressed as a percentage.

(2)

Annualized base rent is calculated by multiplying (i) monthly base rent as of December 31, 2012, for leases that had commenced as of such date, by (ii) 12.

(3)

Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent, by (ii) GLA under commenced leases as of December 31, 2012.

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(4)

Average net effective annual base rent per leased square foot represents (i) the contractual base rent for commenced leases as of December 31, 2012, calculated on a straight line basis to amortize free rent periods, abatements and contractual rent increases, but without subtracting tenant improvement allowances and leasing commissions, divided by (ii) GLA under commenced leases as of December 31, 2012.

(5)

For single-tenant ground leases, we own and lease the land to the tenant. The tenant owns the building during the term of the lease and is responsible for all expenses relating to the property. Upon expiration or termination of the lease, ownership of the building will revert to us as owner of the land. The weighted average remaining term of our ground leases is 8.3 years.

(6)

The tenants at these properties have rights of first refusal to purchase the property.

(7)

For single-tenant fee simple properties, we own the land and the building, and the tenant is responsible for all expenses relating to the property. The weighted average remaining term of our fee simple leases is 7.2 years.

Summary of Top 25 Tenants:

Rank		Tenant Name	Year to Date Base Rent		Year to Date ABR as a Percentage of Portfolio Annualized Base Rent			Tenant GLA		Percentage of Total GLA
	1	Kroger	$	2,116,165		13.28	%		207,963		14.17	%
	2	Landry's Seafood House		1,257,286		7.89	%		38,819		2.64	%
	3	CVS/pharmacy		1,222,212		7.67	%		37,485		2.55	%
	4	H-E-B		1,109,736		6.97	%		80,641		5.49	%
	5	Publix		780,936		4.90	%		65,146		4.44	%
	6	Hard Rock Cafe		496,825		3.12	%		15,752		1.07	%
	7	TGI Fridays		458,589		2.88	%		21,845		1.49	%
	8	The Container Store		447,988		2.81	%		25,019		1.70	%
	9	Golden Corral		426,514		2.68	%		24,000		1.64	%
	10	Champps Americana		422,336		2.65	%		11,384		0.78	%
	11	Paesanos		406,583		2.55	%		8,017		0.55	%
	12	The County Line		359,871		2.26	%		10,614		0.72	%
	13	Verizon Wirelss		303,449		1.90	%		5,513		0.38	%
	14	Walgreens		298,621		1.87	%		15,120		1.03	%
	15	Bank of America		298,349		1.87	%		8,129		0.55	%
	16	Ninfas		284,421		1.79	%		7,606		0.52	%
	17	Mattress Giant		274,120		1.72	%		11,000		0.75	%
	18	River Oaks Imaging & Diagnostic, L.P.		268,500		1.69	%		10,750		0.73	%
	19	Howl At The Moon Saloon		257,508		1.62	%		7,055		0.48	%
	20	Tasting Room		257,504		1.62	%		7,568		0.52	%
	21	Potbelly		251,320		1.58	%		5,458		0.37	%
	22	Buca Di Beppo		249,792		1.57	%		7,573		0.52	%
	23	M. Penner		234,798		1.47	%		6,500		0.44	%
	24	Longoria Collection		226,063		1.42	%		6,945		0.47	%
	25	Baker, Knapp and Tubbs, Inc.		200,625		1.26	%		8,025		0.55	%

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Retail Leasing Summary for Comparable Leases⁽¹⁾:

	For the year ended December 31,
Expirations	2012			2011			2010			2009			2008			2007
Number of leases		44			53			50			34			22			20
GLA		180,245			187,605			224,578			110,693			75,601			55,124
New Leases
Number of leases		5			7			11			8			4			9
GLA		12,997			14,231			17,737			15,471			7,328			13,680
Expiring annualized base rent per square foot	$	27.22		$	28.36		$	31.07		$	28.31		$	23.52		$	28.73
New annualized base rent per square foot	$	34.84		$	30.85		$	31.44		$	29.64		$	21.70		$	32.82
% Change (Cash)		28.0	%		8.8	%		1.2	%		4.7	%		-7.7	%		14.2	%
Renewals⁽²⁾
Number of leases		30			38			39			24			13			12
GLA		115,501			143,324			140,236			86,462			22,464			43,003
Expiring annualized base rent per square foot	$	23.91		$	24.92		$	26.12		$	25.62		$	27.05		$	19.88
New annualized base rent per square foot	$	25.27		$	25.74		$	27.32		$	26.85		$	31.53		$	22.79
% Change (Cash)		5.7	%		3.3	%		4.6	%		4.8	%		16.6	%		14.6	%
Combined
Number of leases		35			45			50			32			17			21
GLA		128,498			157,555			157,973			101,933			29,792			56,683
Expiring annualized base rent per square foot	$	24.24		$	25.23		$	26.68		$	26.03		$	26.18		$	22.02
New annualized base rent per square foot	$	26.24		$	26.20		$	27.78		$	27.27		$	29.11		$	25.21
% Change (Cash)		8.2	%		3.8	%		4.1	%		4.8	%		11.2	%		14.5	%

___________

(1)

Comparable leases are defined as renewals or new leases for a space that was not vacant for more than 12 consecutive months prior to lease signing.

(2)

Represents existing tenants that, upon expiration of their leases, enter into new leases for the same space.

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Lease Expiration Table:

Year		Number of Expriring Leases		GLA of Expiring Leases		Percent of Total GLA Expiring			ABR of Expiring Leases⁽¹⁾		Percent of Total ABR Expiring			ABR Per Square Foot⁽²⁾
	Vacant		—		48,481		3.3	%	$	—		—		$	—
	2013		56		154,350		10.5	%		3,482,089		10.9	%		22.56
	2014		52		126,330		8.6	%		3,683,802		11.6	%		29.16
	2015		50		179,946		12.2	%		5,000,891		15.7	%		27.79
	2016		48		147,876		10.1	%		4,279,417		13.4	%		28.94
	2017		33		241,517		16.5	%		4,656,294		14.6	%		19.28
	2018		20		81,200		5.5	%		1,913,842		6.0	%		23.57
	2019		10		31,493		2.1	%		893,136		2.8	%		28.36
	2020		8		84,379		5.8	%		1,207,818		3.8	%		14.31
	2021		9		108,743		7.4	%		1,855,824		5.8	%		17.07
	2022		11		94,204		6.4	%		1,944,394		6.1	%		20.64
	2023+		10		169,185		11.5	%		2,945,406		9.3	%		17.41
	Total / Weighted Avg		307		1,467,704				$	31,862,913				$	22.45

_____________

(1)

ABR for expiring leases is calculated by multiplying (i) the monthly base rent as of December 31, 2012, for leases expiring during the applicable period by (ii) 12.

(2)

ABR per square foot is calculated by dividing (i) ABR for leases expiring during the applicable period by (ii) GLA for leases expiring during the applicable period.

Lease Distribution Table:

GLA Range	Number of Expiring Leases		Percentage of Leases			Total GLA		Total Leased GLA		Percent Leased			Percentage of Leased GLA			Annualized Base Rent⁽¹⁾		Percentage of ABR			ABR Per Leased Square Foot⁽²⁾

2,500 or less		180		58.7	%		285,843		262,649		91.9	%		18.5	%	$	7,737,830		24.3	%		29.46
2,501 - 5,000		65		21.2	%		230,419		227,879		98.9	%		16.1	%		6,941,744		21.8	%		30.46
5,001 - 10,000		39		12.7	%		305,777		283,030		92.6	%		19.9	%		7,499,638		23.5	%		26.50
10,000 - 20,000		13		4.2	%		162,102		162,102		100.0	%		11.4	%		3,917,750		12.3	%		24.17
greater than 20,000		10		3.3	%		483,563		483,563		100.0	%		34.1	%		5,765,951		18.1	%		11.92
Total portfolio		307		100.0	%		1,467,704		1,419,223		96.7	%		100.0	%	$	31,862,913		100.0	%		22.45

_____________

(1)

Annualized base rent is calculated by multiplying (i) the monthly base rent as of December 31, 2012, for leases in the applicable GLA range by (ii) 12.

(2)

ABR per leased square foot is calculated by dividing (i) ABR for leases in the applicable GLA range by (ii) total leased GLA for leases in the applicable GLA range.

###

Attached files

AmREIT, Inc. Reports

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