(1) | the status of the offering of shares in Cole Credit Property Trust II, Inc.; | ||
(2) | new suitability standards for residents of North Dakota; | ||
(3) | notification of change of transfer agent; | ||
(4) | clarification and addition of risk factors; | ||
(5) | terms of a new credit facility entered into by Cole Operating Partnership II, LP; | ||
(6) | the reallocation of shares of common stock being offered between the primary offering and the distribution reinvestment plan; | ||
(7) | recent real property investments; | ||
(8) | potential real property investments; | ||
(9) | selected financial data, portfolio information, distributions and fees paid to affiliates as of June 30, 2008; | ||
(10) | the incorporation of certain historical information by reference into our prospectus; | ||
(11) | a modified form of Subscription Agreement; and | ||
(12) | updated financial information regarding Cole Credit Property Trust II, Inc. and certain acquired properties. |
1
Q:
|
Who is the transfer agent? | |
A:
|
Effective as of June 23, 2008, the name, address and telephone number of our transfer agent is as follows: | |
Cole Credit Property Trust II, Inc. c/o DST Systems, Inc. P.O. Box 219312 Kansas City, MO 64121-9312 1-866-907-2653 |
2
| poor economic conditions may result in tenant defaults under leases; | ||
| re-leasing may require concessions or reduced rental rates under the new leases; | ||
| poor economic conditions may result in lower revenue to us from retailers who pay us a percentage of their revenues under percentage rent leases; | ||
| constricted access to credit may result in tenant defaults or non-renewals under leases; and | ||
| increased insurance premiums may reduce funds available for distribution or, to the extent such increases are passed through to tenants, may lead to tenant defaults. Increased insurance premiums may make it difficult to increase rents to tenants on turnover, which may adversely affect our ability to increase our returns. |
3
4
Price | Selling | Dealer | Net Proceeds | |||||||||||||
to Public | Commissions | Manager Fee | (Before Expenses) | |||||||||||||
Primary Offering |
||||||||||||||||
Per Share |
$ | 10.00 | $ | 0.70 | $ | 0.20 | $ | 9.10 | ||||||||
Total Maximum |
$ | 1,430,500,000 | $ | 100,135,000 | $ | 28,610,000 | $ | 1,301,755,000 | ||||||||
Distribution Reinvestment Plan |
||||||||||||||||
Per Share |
$ | 9.50 | $ | | $ | | $ | 9.50 | ||||||||
Total Maximum |
$ | 57,000,000 | $ | | $ | | $ | 57,000,000 |
5
Maximum Offering (Not | ||||||||||||||||
Maximum Offering (Including | Including Distribution | |||||||||||||||
Distribution Reinvestment Plan) | Reinvestment Plan) | |||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||
Gross Offering Proceeds |
$ | 1,487,500,000 | 100 | % | $ | 1,430,500,000 | 100 | % | ||||||||
Less Public Offering Expenses: |
||||||||||||||||
Selling Commissions and Dealer Manager Fee |
128,745,000 | 8.7 | % | 128,745,000 | 9.0 | % | ||||||||||
Organization and Offering Expenses |
22,312,500 | 1.5 | % | 21,457,500 | 1.5 | % | ||||||||||
Amount Available for Investment |
1,336,442,500 | 89.8 | % | 1,280,297,500 | 89.5 | % | ||||||||||
Acquisition and Development: |
||||||||||||||||
Acquisition and Advisory Fees |
26,051,510 | 1.7 | % | 24,957,066 | 1.8 | % | ||||||||||
Acquisition Expenses |
6,512,878 | 0.4 | % | 6,239,267 | 0.4 | % | ||||||||||
Initial Working Capital Reserve |
1,302,576 | 0.1 | % | 1,247,853 | 0.1 | % | ||||||||||
Amount Invested in Properties |
$ | 1,302,575,536 | 87.6 | % | $ | 1,247,853,314 | 87.2 | % | ||||||||
Offering | ||||||||
Amount (1) | Percent | |||||||
Gross Offering Proceeds |
$ | 1,487,500,000 | 100 | % | ||||
Less Public Offering Expenses: |
||||||||
Selling Commissions and Dealer Manager Fee(2) |
128,745,000 | 8.7 | % | |||||
Organization and Offering Expenses(3) |
22,312,500 | 1.5 | % | |||||
Amount Available for Investment(4) |
1,336,442,500 | 89.8 | % | |||||
Acquisition and Development: |
||||||||
Acquisition and Advisory Fees(5) |
26,051,510 | 1.7 | % | |||||
Acquisition Expenses(6) |
6,512,878 | 0.4 | % | |||||
Initial Working Capital Reserve(7) |
1,302,576 | 0.1 | % | |||||
Amount Invested in Properties(8) |
$ | 1,302,575,536 | 87.6 | % | ||||
(1) | Assumes the maximum offering is sold, which includes 143,050,000 shares offered to the public at $10.00 per share and 6,000,000 shares offered pursuant to our distribution reinvestment plan at $9.50 per share. | |
(2) | Includes selling commissions equal to 7% of aggregate gross offering proceeds, which commissions may be reduced under certain circumstances, and a dealer manager fee equal to 2% of aggregate gross offering proceeds, both of which are payable to the dealer manager, an affiliate of our advisor. The dealer manager, in its sole discretion, may reallow selling commissions of up to 7% of gross offering proceeds to other broker-dealers participating in this offering attributable to the shares sold by them and may reallow its dealer manager fee up to 2% of gross offering proceeds in marketing fees and due diligence expenses to broker-dealers |
6
participating in this offering based on such factors including the participating broker-dealers level of marketing support, level of due diligence review and success of its sales efforts, each as compared to those of the other participating broker-dealers. Additionally, we will not pay a selling commission or a dealer manager fee on shares purchased pursuant to our distribution reinvestment plan. The amount of selling commissions may be reduced under certain circumstances for volume discounts. See the Plan of Distribution section of this prospectus for a description of such provisions. | ||
(3) | Organization and offering expenses consist of reimbursement of actual legal, accounting, printing and other accountable offering expenses, including amounts to reimburse Cole Advisors II, our advisor, for marketing, salaries and direct expenses of its employees while engaged in registering and marketing the shares and other marketing and organization costs, other than selling commissions and the dealer manager fee. Cole Advisors II and its affiliates are responsible for the payment of organization and offering expenses, other than selling commissions and the dealer manager fee, to the extent they exceed 1.5% of gross offering proceeds, without recourse against or reimbursement by us; provided, however, that in no event will we pay or reimburse organization and offering expenses in excess of 10% of the gross offering proceeds. We currently estimate that approximately $22,312,500 of organization and offering costs will be incurred if the maximum offering of 149,050,000 shares (approximately $1,487,500,000) is sold. | |
(4) | Until required in connection with the acquisition and/or development of properties, substantially all of the net proceeds of the offering and, thereafter, any working capital reserves we may have, may be invested in short-term, highly-liquid investments including government obligations, bank certificates of deposit, short-term debt obligations and interest-bearing accounts. | |
(5) | Acquisition and advisory fees are defined generally as fees and commissions paid by any party to any person in connection with identifying, reviewing, evaluating, investing in and the purchase, development or construction of properties. We pay to our advisor acquisition and advisory fees up to a maximum amount of 2% of the contract purchase price of each property acquired, which for purposes of this table we have assumed is an aggregate amount equal to our estimated amount invested in properties. Acquisition and advisory fees do not include acquisition expenses. For purposes of this table, we have assumed that no financing is used to acquire properties or other real estate assets. | |
(6) | Acquisition expenses include legal fees and expenses, travel expenses, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance premiums and other closing costs and miscellaneous expenses relating to the selection, acquisition and development of real estate properties. For purposes of this table, we have assumed expenses of 0.5% of average invested assets, which for purposes of this table we have assumed is our estimated amount invested in properties; however, expenses on a particular acquisition may be higher. Notwithstanding the foregoing, the total of all acquisition expenses and acquisition fees payable with respect to a particular property or investment shall be reasonable, and shall not exceed an amount equal to 4% of the contract purchase price of the property, or in the case of a mortgage loan 4% of the funds advanced, unless a majority of our directors (including a majority of our independent directors) not otherwise interested in the transaction approve fees and expenses in excess of this limit and determine the transaction to be commercially competitive, fair and reasonable to us. | |
(7) | Working capital reserves typically are utilized for extraordinary expenses that are not covered by revenue generation of the property, such as tenant improvements, leasing commissions and major capital expenditures. Alternatively, a lender may require its own formula for escrow of working capital reserves. Because we expect most of our leases will be net leases, as described elsewhere herein, we do not expect to maintain significant working capital reserves. | |
(8) | Includes amounts anticipated to be invested in properties net of fees, expenses and initial working capital reserves. |
7
Estimated Amount for | ||||
Type of Compensation(1) | Determination of Amount | Maximum Offering(2) | ||
Offering Stage | ||||
Selling Commissions
Cole Capital Corporation(3) |
We will pay to Cole Capital Corporation 7% of the gross offering proceeds before reallowance of commissions earned by participating broker-dealers, except that no selling commission is payable on shares sold under our distribution reinvestment plan. Cole Capital Corporation, our dealer manager, will reallow 100% of commissions earned to participating broker-dealers. | $100,135,000 | ||
Dealer Manager Fee
Cole Capital
Corporation(3)
|
We will pay to Cole Capital Corporation 2% of the gross offering proceeds before reallowance to participating broker-dealers, except that no dealer manager fee is payable on shares sold under our distribution reinvestment plan. Cole Capital Corporation may reallow all or a portion of its dealer manager fee to participating broker-dealers. See Plan of Distribution. | $ 28,610,000 | ||
Reimbursement of Other Organization and Offering Expenses Cole Advisors II(4) |
We will reimburse Cole Advisors II up to 1.5% of our gross offering proceeds. Cole Advisors II will incur or pay our organization and offering expenses (excluding selling commissions and the dealer manager fee). We will then reimburse Cole Advisors II for these amounts up to 1.5% of aggregate gross offering proceeds. | $ 22,312,500 | ||
Acquisition and Operations Stage | ||||
Acquisition and
Advisory Fees Cole Advisors II(5)(6) |
We will pay to Cole Advisors II 2% of the contract purchase price of each property or asset. | $ 26,051,510 | ||
Acquisition Expenses
Cole Advisors II
|
We will reimburse our advisor for acquisition expenses incurred in the process of acquiring property. We expect these expenses to be approximately 0.5% of the purchase price of each property. In no event will the total of all fees and acquisition expenses payable with respect to a particular property or investment exceed 4% of the contract purchase price. | $ 6,512,878 | ||
Asset Management Fee
Cole Advisors II(7)
|
We will pay to Cole Advisors II a monthly fee equal to 0.02083%, which is one-twelfth of 0.25% of the aggregate asset value. | Actual amounts are dependent upon the aggregate asset value of our properties and, therefore, cannot be determined at the present time. Because the fee is based on a fixed percentage of aggregate asset value, there is no limit on the aggregate amount of these fees. |
8
Estimated Amount for | ||||
Type of Compensation(1) | Determination of Amount | Maximum Offering(2) | ||
Property Management
Fees Cole Realty Advisors(8) |
We will pay to Cole Realty Advisors up to (i) 2% of the gross revenues from our single-tenant properties and (ii) 4% of the gross revenues from our multi-tenant properties, plus reimbursement of Cole Realty Advisors costs of managing the properties. | Actual amounts are dependent upon the gross revenues from properties and, therefore, cannot be determined at the present time. Because the fee is based on a fixed percentage of the gross revenue and/or market rates, there is no limit on the aggregate amount of these fees. | ||
Leasing Commissions
Cole Realty Advisors(8) |
We will pay to Cole Realty Advisors prevailing market rates. Cole Realty Advisors may also receive a fee for the initial listing of newly constructed properties, which generally would equal one months rent. | Actual amounts are dependent upon prevailing market rates in the geographic regions in which we acquire property and, therefore, cannot be determined at the present time. There is no limit on the aggregate amount of these commissions. | ||
Financing Coordination
Fee Cole Advisors II(6) |
For services in connection with the origination or refinancing of any debt financing we obtain and use to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, we will pay our advisor a financing coordination fee equal to 1% of the amount available and/or outstanding under such financing; provided, however, that our advisor will not be entitled to a financing coordination fee in connection with the refinancing of any loan secured by any particular property that was previously subject to a refinancing in which our advisor received such a fee. Financing coordination fees payable from loan proceeds from permanent financing will be paid to our advisor as we acquire and/or assume such permanent financing. However, no acquisition fees will be paid on the investments of loan proceeds from any line of credit until such time as we have invested all net offering proceeds. | Actual amounts are dependent on the amount of any debt financing or refinancing and, therefore, cannot be determined at the present time. Because the fee is based on a fixed percentage of any debt financing, there is no limit on the aggregate amount of these fees. | ||
Operating Expenses
Cole Advisors II(9)
|
We will reimburse the expenses incurred by Cole Advisors II in connection with its provision of administrative services, including related personnel costs, subject to the limitation that we will not reimburse our advisor for any amount by which the operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of (i) 2% of average invested assets, or (ii) 25% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period. | Actual amounts are dependent upon the expenses incurred and, therefore, cannot be determined at the present time. |
9
Estimated Amount for | ||||
Type of Compensation(1) | Determination of Amount | Maximum Offering(2) | ||
Liquidation/Listing Stage | ||||
Real Estate
Commissions Cole Advisors II or its Affiliates(10) |
For substantial assistance in connection with the sale of properties, we will pay our advisor or its affiliates an amount equal to up to one-half of the brokerage commission paid on the sale of property, not to exceed 2% of the contract price of each property sold; provided, however, in no event may the real estate commissions paid to our advisor, its affiliates and unaffiliated third parties exceed 6% of the contract sales price. | Actual amounts are dependent upon the contract price of properties sold and, therefore, cannot be determined at the present time. Because the commission is based on a fixed percentage of the contract price for a sold property, there is no limit on the aggregate amount of these commissions. | ||
Subordinated
Participation in Net Sale Proceeds Cole Advisors II(11) |
After investors have received a return of their net capital invested and an 8% annual cumulative, non-compounded return, then Cole Advisors II is entitled to receive 10% of remaining net sale proceeds. We cannot assure you that we will provide this 8% return, which we have disclosed solely as a measure for our advisors incentive compensation. | Actual amounts are dependent upon results of operations and, therefore, cannot be determined at the present time. There is no limit on the aggregate amount of these payments. | ||
Subordinated Incentive
Listing Fee Cole Advisors II(11)(12) |
Upon listing our common stock on a national securities exchange, our advisor is entitled to a fee equal to 10% of the amount, if any, by which (1) the market value of our outstanding stock plus distributions paid by us prior to listing, exceeds (2) the sum of the total amount of capital raised from investors and the amount of cash flow necessary to generate an 8% annual cumulative, non-compounded return to investors. We have no intent to list our shares at this time. We cannot assure you that we will provide this 8% return, which we have disclosed solely as a measure for our advisors incentive compensation. | Actual amounts are dependent upon total equity and debt capital we raise and results of operations and, therefore, cannot be determined at the present time. There is no limit on the aggregate amount of this fee. |
(1) | We will pay all fees, commissions and expenses in cash, other than the subordinated participation in net sales proceeds and incentive listing fees with respect to which we may pay to Cole Advisors II in cash, common stock, a promissory note or any combination of the foregoing, as we may determine in our discretion. | |
(2) | The estimated maximum dollar amounts are based on the sale of a maximum of 143,050,000 shares to the public at $10.00 per share and the sale of 6,000,000 shares at $9.50 per share pursuant to our distribution reinvestment plan. | |
(3) | Selling commissions and, in some cases, the dealer manager fee, will not be charged with regard to shares sold to or for the account of certain categories of purchasers. See Plan of Distribution. Selling commissions and the dealer manager fee will not be charged with regard to shares purchased pursuant to our distribution reinvestment plan. | |
(4) | These organization and offering expenses include all expenses (other than selling commissions and the dealer manager fee) to be paid by us in connection with the offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder, due diligence expense reimbursements to participating broker-dealers and amounts to reimburse Cole Advisors II for its portion of the salaries of the employees of its affiliates who provide services to our advisor and other costs in connection with preparing supplemental sales materials, holding educational conferences and attending retail seminars conducted by broker-dealers. Our advisor will be responsible for the payment of all such organization and offering expenses to the extent such expenses exceed 1.5% of the aggregate gross proceeds of this offering. | |
(5) | This estimate assumes the amount of proceeds available for investment is equal to the gross offering proceeds less the public offering expenses, and we have assumed that no financing is used to acquire properties or other real estate assets. Our boards investment policies limit our ability to purchase property if the total of all acquisition fees and expenses relating to the purchase exceeds 4% of the contract purchase price unless a majority of our directors (including a majority of our independent directors) |
10
not otherwise interested in the transaction approve fees and expenses in excess of this limit and determine the transaction to be commercially competitive, fair and reasonable to us. | ||
(6) | Included in the computation of such fees will be any real estate commission, acquisition and advisory fee, development fee, construction fee, non-recurring management fee, loan fees, financing coordination fees or points or any fee of a similar nature. | |
(7) | Aggregate asset value will be equal to the aggregate value of our assets (other than investments in bank accounts, money markets funds or other current assets) at cost before deducting depreciation, bad debts or other similar non-cash reserves and without reduction for any debt relating to such assets at the date of measurement, except that during such periods in which our board of directors is determining on a regular basis the current value of our net assets for purposes of enabling fiduciaries of employee benefit plans stockholders to comply with applicable Department of Labor reporting requirements, aggregate asset value is the greater of (i) the amount determined pursuant to the foregoing or (ii) our assets aggregate valuation most recently established by our board without reduction for depreciation, bad debts or other similar non-cash reserves and without reduction for any debt secured by or relating to such assets. | |
(8) | The property management and leasing fees payable to Cole Realty Advisors are subject to the limitation that the aggregate of all property management and leasing fees paid to Cole Realty Advisors and its affiliates plus all payments to third parties for property management and leasing services may not exceed the amount that other non-affiliated property management and leasing companies generally charge for similar services in the same geographic location. Additionally, all property management and leasing fees, including both those paid to Cole Realty Advisors and third parties, are subject to the limit on total operating expenses as described in footnote (4). Cole Realty Advisors may subcontract its duties for a fee that may be less than the fee provided for in our property management agreement with Cole Realty Advisors. | |
(9) | We may reimburse our advisor in excess of that limit in the event that a majority of our independent directors determine, based on unusual and non-recurring factors, that a higher level of expense is justified. In such an event, we will send notice to each of our stockholders within 60 days after the end of the fiscal quarter for which such determination was made, along with an explanation of the factors our independent directors considered in making such determination. We will not reimburse our advisor for personnel costs in connection with services for which the advisor receives acquisition fees or real estate commissions. | |
We lease our office space from an affiliate of our advisor and share the space with other Cole-related entities. The amount we will pay under the lease will be determined on a monthly basis based upon on the allocation of the overall lease cost to the approximate percentage of time, size of the area that we utilize and other resources allocated to us. | ||
(10) | Although we are most likely to pay real estate commissions to Cole Advisors II or an affiliate in the event of our liquidation, these fees may also be earned during our operational stage. | |
(11) | Upon termination of the advisory agreement, Cole Advisors II may be entitled to a similar performance fee if Cole Advisors II would have been entitled to a subordinated participation in net sale proceeds had the portfolio been liquidated (based on an independent appraised value of the portfolio) on the date of termination. Under our charter, we could not increase these success-based fees without the approval of a majority of our independent directors, and any increase in the subordinated participation in net sale proceeds would have to be reasonable. Our charter provides that such incentive fee is presumptively reasonable if it does not exceed 10% of the balance of such net proceeds remaining after investors have received a return of their net capital contributions and an 8% per year cumulative, non-compounded return. | |
Cole Advisors II cannot earn both the subordinated participation in net sale proceeds and the subordinated incentive listing fee. The subordinated participation in net sale proceeds or the subordinated listing fee, as the case may be, will be paid in the form of an interest bearing promissory note that will be repaid from the net sale proceeds of each sale after the date of the termination or listing. At the time of such sale, we may, however, at our discretion, pay all or a portion of such promissory note with shares of our common stock. If shares are used for payment, we do not anticipate that they will be registered under the Securities Act and, therefore, will be subject to restrictions on transferability. Any portion of the subordinated participation in net sale proceeds that Cole Advisors II receives prior to our listing will offset the amount otherwise due pursuant to the subordinated incentive listing fee. In no event will the amount paid to Cole Advisors II under the promissory note, if any, including interest thereon, exceed the amount considered presumptively reasonable by the NASAA REIT Guidelines. | ||
(12) | If at any time the shares become listed on a national securities exchange, we will negotiate in good faith with Cole Advisors II a fee structure appropriate for an entity with a perpetual life. Our independent directors must approve the new fee structure negotiated with Cole Advisors II. The market value of our outstanding stock will be calculated based on the average market value of the shares issued and outstanding at listing over the 30 trading days beginning 180 days after the shares are first listed or included for quotation. We have the option to pay the subordinated incentive listing fee in the form of stock, cash, a promissory note or any combination thereof. In the event the subordinated incentive listing fee is earned by Cole Advisors II as a result of the listing of the shares, any previous payments of the subordinated participation in net sale proceeds will offset the amounts due pursuant to the subordinated incentive listing fee, and we will not be required to pay Cole Advisors II any further subordinated participation in net sale proceeds. |
11
Total Maximum | ||||
Selling commissions |
$ | 100,135,000 | ||
Dealer manager fee reallowance to participating broker-dealers |
10,013,500 | |||
Dealer manager wholesaling compensation |
22,687,500 | |||
Expense reimbursements for wholesaling travel and expenses |
4,412,000 | |||
Broker-dealer conference fees and training and education meetings |
2,800,000 | |||
Due diligence allowance |
160,000 | |||
Legal fees of the dealer manager |
120,000 | |||
Total(1) |
$ | 140,328,000 | ||
(1) | Of this amount, $100,135,000 and $28,610,000 will be paid by us from the proceeds of this offering in the form of selling commissions and dealer manager fees, respectively. Subject to the cap on underwriting compensation described below, and in accordance with our limits on reimbursement and payment of organization and offering expenses as disclosed elsewhere in this prospectus, we will reimburse our sponsor or its affiliates for certain expenses that constitute underwriting compensation. In some cases, these payments will serve to reimburse our sponsor or its affiliates for amounts it has paid to participating broker-dealers. Any remaining amounts will be paid by our sponsor without reimbursement from us. |
12
Rentable | ||||||||||||
Property Description | Type | Tenant | Square Feet | Purchase Price | ||||||||
Walgreens Elmira, NY |
Drugstore | Walgreen Eastern Co., Inc. | 14,820 | $ | 6,076,000 | |||||||
CVS Onley, VA |
Drugstore | CVS of Virginia, Inc. | 13,225 | 5,486,000 | ||||||||
Tractor Supply Carroll, OH |
Specialty Retail | Tractor Supply Company | 40,700 | 2,000,000 | ||||||||
Walgreens Hibbing, MN |
Drugstore | Walgreen Co. | 14,820 | 4,200,000 | ||||||||
Allstate Customer Contact Center Yuma, AZ |
Call Center | Allstate Insurance Company | 28,800 | 7,686,409 | ||||||||
Walgreens Essex, MD |
Drugstore | Walgreen Co. | 14,820 | 6,488,000 | ||||||||
Convergys Las Cruces, NM |
Call Center | Convergys Customer Management Group Inc. |
45,761 | 8,111,260 | ||||||||
Walgreens Bath, NY |
Drugstore | Walgreen Eastern Co., Inc. | 12,222 | 4,236,005 | ||||||||
Walgreens Chino Valley, AZ |
Drugstore | Walgreen Arizona Drug Co. | 14,820 | 5,435,000 | ||||||||
III Forks Dallas, TX |
Restaurant | III Forks Dallas, L.P. | 21,145 | 11,000,000 | ||||||||
Walgreens Albany, GA |
Drugstore | Walgreen Co. | 14,820 | 4,600,000 | ||||||||
Kohls Grand Forks, ND |
Specialty Retail | Kohls Illinois, Inc. | 68,725 | 8,525,000 | ||||||||
Coral Walk Cape Coral, FL |
Shopping Center | Various | 94,817 | 27,000,000 | ||||||||
LA Fitness Brooklyn Park, MN |
Fitness and Health | L.A. Fitness International, LLC | 45,000 | 10,450,000 | ||||||||
Market Pointe Papillion, NE |
Shopping Center | Various | 254,125 | 25,500,000 | ||||||||
PetSmart Distribution Center McCarran, NV |
Distribution Center | Petsmart, Inc. | 872,710 | 51,525,000 | ||||||||
Cumming Town Center Cumming, GA |
Shopping Center | Various | 310,192 | 58,381,303 | ||||||||
Walgreens Rome, NY |
Drugstore | Walgreen Co. | 13,770 | 4,477,727 | ||||||||
LA Fitness Matteson, IL |
Fitness and Health | L.A. Fitness International, LLC | 45,000 | 10,089,000 | ||||||||
Walgreens Columbus, MS |
Drugstore | Walgreen Co. | 14,450 | 4,420,000 | ||||||||
Weston Shops Weston, FL |
Shopping Center | Various | 30,420 | 16,400,000 | ||||||||
Jo-Ann Fabrics Alpharetta, GA |
Specialty Retail | FCA of Ohio, Inc. | 38,418 | 6,441,000 | ||||||||
LA Fitness Greenwood, IN |
Fitness and Health | LA Fitness International, LLC | 45,000 | 10,605,000 | ||||||||
PetSmart Chattanooga, TN |
Specialty Retail | Petsmart, Inc. | 26,040 | 4,815,000 | ||||||||
PetSmart Daytona Beach, FL |
Specialty Retail | Petsmart, Inc. | 26,194 | 5,333,000 | ||||||||
PetSmart Fredericksburg, VA |
Specialty Retail | Petsmart, Inc. | 26,051 | 5,199,000 | ||||||||
Ferguson Portfolio Various (1) |
Specialty Retail | Ferguson Enterprises, Inc. | 1,111,843 | 86,793,249 | ||||||||
Home Depot Lakewood, CO |
Home Improvement | Home Depot U.S.A, Inc. | 102,000 | (6) | 11,300,000 | |||||||
Walgreens Mobile, AL |
Drugstore | Walgreen Co. | 13,650 | 5,415,000 | ||||||||
Aaron Rents Portfolio Various (2) |
Specialty Retail | Aaron Rents, Inc. | 259,185 | 32,675,202 | ||||||||
Lowes Chester, NY |
Home Improvement | Lowes Home Centers, Inc. | 131,798 | (6) | 7,037,037 | |||||||
HH Gregg Grove City, OH |
Specialty Retail | Gregg Appliances, Inc. | 30,167 | 5,902,000 | ||||||||
BJs Wholesale Club Ft. Lauderdale, FL |
Warehouse Club | BJs Wholesale Club, Inc. | 119,598 | 28,272,857 | ||||||||
HH Gregg Mt. Juliet, TN |
Specialty Retail | Gregg Appliances, Inc. | 30,000 | 6,346,000 | ||||||||
Winter Garden Village Winter Garden, FL |
Shopping Center | Various | 758,988 | (5) | 180,351,286 |
13
Rentable | ||||||||||||
Property Description | Type | Tenant | Square Feet | Purchase Price | ||||||||
Payless ShoeSource Columbia, SC (3) |
Specialty Retail | Payless ShoeSource Inc. | 5,534 | $ | 1,400,000 | |||||||
Walgreens Jacksonville, FL (3) |
Drugstore | Walgreen Co. | 15,120 | 5,050,000 | ||||||||
CVS Hamilton, OH (3) |
Drugstore | CVS Corporation | 11,180 | 3,600,000 | ||||||||
Walgreens Akron, OH (3) |
Drugstore | Walgreen Co. | 13,500 | 2,820,000 | ||||||||
Walgreens Seattle, WA (3) |
Drugstore | Walgreen Co. | 14,410 | 6,770,000 | ||||||||
Walgreens LaMarque, TX (3) |
Drugstore | Walgreen Co. | 15,120 | 4,510,000 | ||||||||
CVS Mechanicville, NY (3) |
Drugstore | CVS Albany, L.L.C. | 10,125 | 2,600,000 | ||||||||
Office Depot Laurel, MS (3) |
Office Supply | Office Depot, Inc. | 20,515 | 2,650,000 | ||||||||
Home Depot Colma, CA (3)(4) |
Home Improvement | Home Depot U.S.A., Inc. | 99,970 | 39,310,000 | ||||||||
Walgreens Saginaw, MI (3) |
Drugstore | Walgreen Co. | 15,120 | 4,200,000 | ||||||||
Walgreens Tulsa, OK (3) |
Drugstore | Walgreen Co. | 13,000 | 2,190,000 | ||||||||
Walgreens Broken Arrow, OK (3) |
Drugstore | Walgreen Co. | 13,000 | 2,100,000 | ||||||||
Office Depot London, KY (3) |
Office Supply | Office Depot, Inc. | 20,468 | 3,500,000 | ||||||||
Best Buy Las Cruces, NM (4) |
Electronics Retail | Best Buy Stores, L.P. | 30,000 | 6,100,000 | ||||||||
Staples Angola, IN (4) |
Office Supply | Staples, Inc. | 24,049 | 3,200,000 | ||||||||
TJ Maxx Staunton, VA (4) |
Specialty Retail | The TJX Companies, Inc. | 78,823 | 4,300,000 | ||||||||
AT&T Wireless Santa Clara, CA (4) |
Communications | AT&T Wireless Services, Inc. | 33,257 | 10,200,000 | ||||||||
Walgreens Tulsa, OK (4) |
Drugstore | Walgreen Co. | 13,500 | 2,950,000 | ||||||||
Walgreens Crossville, TN (4) |
Drugstore | Walgreen Co. | 15,070 | 4,450,000 | ||||||||
CVS Columbia, TN (Nashville) (4) |
Drugstore | Revco Discount Drug Centers, Inc. | 10,715 | 2,400,000 | ||||||||
CVS Columbia, TN (James Campbell) (4) |
Drugstore | Revco Discount Drug Centers, Inc. | 10,759 | 2,600,000 | ||||||||
Walgreens Newton, IA (4) |
Drugstore | Walgreen Co. | 15,047 | 4,330,000 | ||||||||
FedEx Huntsville, AL |
Distribution | FedEx Freight East, Inc. | 56,360 | 10,947,787 | ||||||||
FedEx Baton Rouge, LA |
Distribution | FedEx Freight East, Inc. | 29,400 | 8,998,880 | ||||||||
CVS Atlanta, GA |
Drugstore | Big B Drugs, Inc. | 12,013 | 3,841,000 | ||||||||
Tractor Supply Baldwinsville, NY |
Specialty Retail | Tractor Supply Company | 24,727 | 3,402,120 | ||||||||
5,324,876 | $ | 826,992,122 | ||||||||||
(1) | The Ferguson Portfolio consists of seven single-tenant retail properties and one single-tenant commercial property located in various states, which were purchased under a sale-lease back agreement and the properties are subject to eight separate lease agreements. | |
(2) | The Aaron Rents Portfolio consists of 25 single-tenant retail properties located in various states, which were purchased under a sale-lease back agreement and the properties are subject to a master lease agreement. | |
(3) | Property was acquired from Cole Credit Property Fund LP, an affiliate of our advisor. The Companys board of directors, including all of the independent directors, not otherwise interested in the transaction, approved the transaction as being fair and reasonable to the Company, at a price in excess of the cost to Cole Credit Property Fund LP. Substantial justification exists for such excess as such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by the Companys independent directors. | |
(4) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. The Companys board of directors, including all of the independent directors, not otherwise interested in the transaction, approved the transaction as being fair and reasonable to the Company, at a price in excess of the cost to Cole Credit Property Fund II LP. Substantial justification exists for such excess as such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by the Companys independent directors. | |
(5) | Rentable square feet includes approximately 145,000 square feet accounted for under 13 ground leases. | |
(6) | Square feet accounted for under a ground lease. |
14
Year | Fees Paid to | Initial | Physical | |||||||||||||||||
Property | Date Acquired | Built | Purchase Price | Sponsor (1) | Yield (2) | Occupancy | ||||||||||||||
Walgreens Elmira, NY |
May 1, 2008 | 2007 | $ | 6,076,000 | $ | 121,520 | 6.50 | % | 100 | % | ||||||||||
CVS Onley, VA |
May 8, 2008 | 2007 | 5,486,000 | 109,720 | 6.75 | % | 100 | % | ||||||||||||
Tractor Supply Carroll, OH |
May 8, 2008 | 1976 | 2,000,000 | 40,000 | 8.24 | % | 100 | % | ||||||||||||
Walgreens Hibbing, MN |
May 14, 2008 | 2007 | 4,200,000 | 84,000 | 6.60 | % | 100 | % | ||||||||||||
Allstate Customer Contact Center Yuma, AZ |
May 22, 2008 | 2008 | 7,686,409 | 153,728 | 7.49 | % | 100 | % | ||||||||||||
Walgreens Essex, MD |
May 30, 2008 | 2007 | 6,488,000 | 129,760 | 6.55 | % | 100 | % | ||||||||||||
Convergys Las Cruces, NM |
June 2, 2008 | 1983 | 8,111,260 | 162,225 | 8.95 | % | 100 | % | ||||||||||||
Walgreens Bath, NY |
June 2, 2008 | 2008 | 4,236,005 | 84,721 | 6.61 | % | 100 | % | ||||||||||||
Walgreens Chino Valley, AZ |
June 2, 2008 | 2006 | 5,435,000 | 108,700 | 6.53 | % | 100 | % | ||||||||||||
III Forks Dallas, TX |
June 5, 2008 | 1998 | 11,000,000 | 220,000 | 8.50 | % | 100 | % | ||||||||||||
Walgreens Albany, GA |
June 11, 2008 | 2008 | 4,600,000 | 92,000 | 6.65 | % | 100 | % | ||||||||||||
Kohls Grand Forks, ND |
June 11, 2008 | 2006 | 8,525,000 | 170,500 | 6.71 | % | 100 | % | ||||||||||||
Coral Walk Cape Coral, FL |
June 12, 2008 | 2007 | 27,000,000 | 540,000 | 7.20 | % | 100 | % | ||||||||||||
LA Fitness Brooklyn Park, MN |
June 17, 2008 | 2008 | 10,450,000 | 209,000 | 7.75 | % | 100 | % | ||||||||||||
Market Pointe Papillion, NE |
June 20, 2008 | 2006 | 25,500,000 | 510,000 | 6.66 | % | 98 | % | ||||||||||||
PetSmart Distribution Center McCarran, NV |
July 2, 2008 | 2008 | 51,525,000 | 1,030,500 | 6.72 | % | 100 | % | ||||||||||||
Cumming Town Center Cumming, GA |
July 11, 2008 | 2007 | 58,381,303 | 1,167,626 | 7.21 | % | 95 | % | ||||||||||||
Walgreens Rome, NY |
July 15, 2008 | 2007 | 4,477,727 | 89,555 | 6.70 | % | 100 | % | ||||||||||||
LA Fitness Matteson, IL |
July 16, 2008 | 2007 | 10,089,000 | 201,780 | 7.85 | % | 100 | % | ||||||||||||
Walgreens Columbus, MS |
July 24, 2008 | 2004 | 4,420,000 | 88,400 | 6.78 | % | 100 | % | ||||||||||||
Weston Shops Weston, FL |
July 30, 2008 | 2007 | 16,400,000 | 328,000 | 7.28 | % | 100 | % | ||||||||||||
Jo-Ann Fabrics Alpharetta, GA |
August 5, 2008 | 2000 | 6,441,000 | 128,820 | 7.96 | % | 100 | % | ||||||||||||
LA Fitness Greenwood, IN |
August 5, 2008 | 2008 | 10,605,000 | 212,100 | 7.85 | % | 100 | % | ||||||||||||
PetSmart Chattanooga, TN |
August 5, 2008 | 1996 | 4,815,000 | 96,300 | 7.16 | % | 100 | % | ||||||||||||
PetSmart Daytona Beach, FL |
August 5, 2008 | 1996 | 5,333,000 | 106,660 | 6.74 | % | 100 | % | ||||||||||||
PetSmart Fredericksburg, VA |
August 5, 2008 | 1997 | 5,199,000 | 103,980 | 7.29 | % | 100 | % | ||||||||||||
Ferguson Portfolio Various |
August 21, 2008 | Various | 86,793,249 | 1,735,865 | 7.43 | % | 100 | % | ||||||||||||
Home Depot Lakewood, CO |
August 27, 2008 | 2006 | 11,300,000 | 226,000 | 6.86 | % | 100 | % | ||||||||||||
Walgreens Mobile, AL |
August 28, 2008 | 2007 | 5,415,000 | 108,300 | 6.60 | % | 100 | % | ||||||||||||
Aarons Rents Portfolio Various |
September 15, 2008 | Various | 32,675,202 | 653,504 | 7.50 | % | 100 | % | ||||||||||||
Lowes Chester, NY |
September 19, 2008 | 2008 | 7,037,037 | 140,741 | 6.75 | % | 100 | % | ||||||||||||
HH Gregg Grove City, OH |
September 17, 2008 | 2008 | 5,902,000 | 118,040 | 7.82 | % | 100 | % |
15
Year | Fees Paid to | Initial | Physical | |||||||||||||||||||
Property | Date Acquired | Built | Purchase Price | Sponsor (1) | Yield (2) | Occupancy | ||||||||||||||||
BJs Wholesale Club Ft. Lauderdale, FL
|
September 23, 2008 | 2007 | $ 28,272,857 | $ | 565,457 | 7.00 | % | 100 | % | |||||||||||||
HH Gregg Mt. Juliet, TN
|
September 23, 2008 | 2008 | 6,346,000 | 126,920 | 7.80 | % | 100 | % | ||||||||||||||
Winter Garden Village Winter Garden, FL
|
September 26, 2008 | 2007 | 180,351,286 | 4,664,026 | 7.39 | % | 99.1 | % | ||||||||||||||
Payless Shoe Source Columbia, SC
|
September 30, 2008 | 1998 | 1,400,000 | 28,000 | 9.88 | % | 100 | % | ||||||||||||||
Walgreens Jacksonville, FL
|
September 30, 2008 | 2000 | 5,050,000 | 101,000 | 7.05 | % | 100 | % | ||||||||||||||
CVS Hamilton, OH
|
September 30, 2008 | 1999 | 3,600,000 | 72,000 | 7.28 | % | 100 | % | ||||||||||||||
Walgreens Akron, OH
|
September 30, 2008 | 1994 | 2,820,000 | 56,400 | 7.99 | % | 100 | % | ||||||||||||||
Walgreens Seattle, WA
|
September 30, 2008 | 2002 | 6,770,000 | 135,400 | 6.75 | % | 100 | % | ||||||||||||||
Walgreens LaMarque, TX
|
September 30, 2008 | 2000 | 4,510,000 | 90,200 | 7.07 | % | 100 | % | ||||||||||||||
CVS Mechanicville, NY
|
September 30, 2008 | 1998 | 2,600,000 | 52,000 | 7.27 | % | 100 | % | ||||||||||||||
Office Depot Laurel, MS
|
September 30, 2008 | 2002 | 2,650,000 | 53,000 | 7.55 | % | 100 | % | ||||||||||||||
Home Depot Colma, CA
|
September 30, 2008 | 1995 | 39,310,000 | 786,200 | 6.39 | % | 100 | % | ||||||||||||||
Walgreens Saginaw, MI
|
September 30, 2008 | 2001 | 4,200,000 | 84,000 | 7.57 | % | 100 | % | ||||||||||||||
Walgreens Tulsa, OK
|
September 30, 2008 | 1993 | 2,190,000 | 43,800 | 8.01 | % | 100 | % | ||||||||||||||
Walgreens Broken Arrow, OK
|
September 30, 2008 | 1993 | 2,100,000 | 42,000 | 7.74 | % | 100 | % | ||||||||||||||
Office Depot London, KY
|
September 30, 2008 | 2001 | 3,500,000 | 70,000 | 7.57 | % | 100 | % | ||||||||||||||
Best Buy Las Cruces, NM
|
September 30, 2008 | 2002 | 6,100,000 | 160,090 | 7.94 | % | 100 | % | ||||||||||||||
Staples Angola, IN
|
September 30, 2008 | 1999 | 3,200,000 | 83,990 | 7.74 | % | 100 | % | ||||||||||||||
TJ Maxx Staunton, VA
|
September 30, 2008 | 1988 | 4,300,000 | 117,160 | 9.62 | % | 100 | % | ||||||||||||||
AT&T Wireless Santa Clara, CA
|
September 30, 2008 | 2002 | 10,200,000 | 264,320 | 6.56 | % | 100 | % | ||||||||||||||
Walgreens Tulsa, OK
|
September 30, 2008 | 1994 | 2,950,000 | 78,260 | 7.73 | % | 100 | % | ||||||||||||||
Walgreens Crossville, TN
|
September 30, 2008 | 2001 | 4,450,000 | 116,530 | 7.28 | % | 100 | % | ||||||||||||||
CVS Columbia, TN (Nashville)
|
September 30, 2008 | 1998 | 2,400,000 | 65,150 | 8.15 | % | 100 | % | ||||||||||||||
CVS Columbia, TN (James Campbell)
|
September 30, 2008 | 1998 | 2,600,000 | 69,350 | 7.01 | % | 100 | % | ||||||||||||||
Walgreens Newton, IA
|
September 30, 2008 | 2000 | 4,330,000 | 86,600 | 7.51 | % | 100 | % | ||||||||||||||
FedEx Huntsville, AL
|
September 30, 2008 | 2008 | 10,947,787 | 218,955 | 7.50 | % | 100 | % | ||||||||||||||
FedEx Baton Rouge, LA
|
October 3, 2008 | 2008 | 8,998,880 | 179,978 | 7.52 | % | 100 | % | ||||||||||||||
CVS Atlanta, GA
|
October 7, 2008 | 2006 | 3,841,000 | 76,820 | 7.25 | % | 100 | % | ||||||||||||||
Tractor Supply Baldwinsville, NY
|
October 15, 2008 | 2005 | 3,402,120 | 68,042 | 7.45 | % | 100 | % | ||||||||||||||
$ 826,992,122 | $ | 17,827,693 | ||||||||||||||||||||
(1) | Fees paid to sponsor include payments made to an affiliate of our advisor for acquisition fees in connection with the property acquisition and payments to our advisor for finance coordination fees for services in connection with the origination or assumption of debt financing obtained to acquire the respective property, where applicable. For more detailed information on fees paid to affiliates of our sponsor, see the section captioned Management Compensation beginning on page 62 of the prospectus. | |
(2) | Initial yield is calculated as the annual rental income for the in place leases at the respective property divided by the property purchase price, exclusive of closing costs and fees paid to sponsor. |
16
% of | ||||||||||||||||||||||||||||||
Total | Total | Base | ||||||||||||||||||||||||||||
Number | Square | Square | Current | Rent per | ||||||||||||||||||||||||||
of | Feet | Feet | Renewal | Annual Base | Square | Lease Term *** | ||||||||||||||||||||||||
Property | Tenants | Major Tenants* | Leased | Leased | Options** | Rent | Foot | Beginning | To | |||||||||||||||||||||
Walgreens Elmira, NY |
1 | Walgreen Eastern Co., Inc. | 14,820 | 100 | % | 10/5 yr. | $ | 395,000 | $ | 26.65 | 5/1/2008 | 1/31/2033 | (2) | |||||||||||||||||
CVS Onley, VA |
1 | CVS of Virginia, Inc. | 13,225 | 100 | % | 4/5 yr. | 370,300 | 28.00 | 5/8/2008 | 1/31/2033 | ||||||||||||||||||||
Tractor Supply Carroll, OH |
1 | Tractor Supply Company | 40,700 | 100 | % | 1/5 yr. | 164,835 | 4.05 | 5/8/2008 | 12/31/2011 | ||||||||||||||||||||
175,010 | 4.30 | 1/1/2012 | 12/31/2016 | |||||||||||||||||||||||||||
Walgreens Hibbing, MN |
1 | Walgreen Co. | 14,820 | 100 | % | 10/5 yr. 2/3 yr. | 277,250 | 18.71 | 5/14/2008 | 4/30/2032 | (2) | |||||||||||||||||||
Allstate Customer Contact Center Yuma, AZ |
1 | Allstate Insurance Company | 28,800 | 100 | % | 1/5 yr. | 575,712 | (1) | 19.99 | 5/22/2008 | 4/30/2018 | |||||||||||||||||||
Walgreens Essex, MD |
1 | Walgreen Co. | 14,820 | 100 | % | 10/5 yr. | 425,000 | 28.68 | 5/30/2008 | 4/30/2032 | (2) | |||||||||||||||||||
Convergys Las Cruces, NM |
1 | Convergys Customer Management Group Inc. | 45,761 | 100 | % | 2/5 yr. | 726,227 | (1) | 15.87 | 6/2/2008 | 3/31/2018 | |||||||||||||||||||
Walgreens Bath, NY |
1 | Walgreen Eastern Co., Inc. | 12,222 | 100 | % | 10/5 yr. | 280,000 | 22.91 | 6/2/2008 | 4/30/2033 | (2) | |||||||||||||||||||
Walgreens Chino Valley, AZ |
1 | Walgreen Arizona Drug Co. | 14,820 | 100 | % | 10/5 yr. | 355,000 | 23.95 | 6/2/2008 | 7/31/2032 | (2) | |||||||||||||||||||
III Forks Dallas, TX |
1 | III Forks Dallas, L.P. | 21,145 | 100 | % | 5/5 yr. | 935,000 | (3) | 44.22 | 6/5/2008 | 6/30/2025 | |||||||||||||||||||
Walgreens Albany, GA |
1 | Walgreen Co. | 14,820 | 100 | % | 10/5 yr. | 306,000 | 20.65 | 6/11/2008 | 2/28/2033 | (2) | |||||||||||||||||||
Kohls Grand Forks, ND |
1 | Kohls Illinois, Inc. | 68,725 | 100 | % | 8/5 yr. | 572,450 | 8.33 | 6/11/2008 | 9/30/2016 | ||||||||||||||||||||
601,073 | 8.75 | 10/1/2016 | 9/30/2026 | |||||||||||||||||||||||||||
Coral Walk Cape Coral, FL |
16 | TSA Stores, Inc. | 40,228 | 42 | % | 4/5 yr. | 623,534 | 15.50 | 6/12/2008 | 1/31/2013 | ||||||||||||||||||||
663,762 | 16.50 | 2/1/2013 | 1/31/2018 | |||||||||||||||||||||||||||
Staples the Office Superstore East, Inc. | 20,388 | 22 | % | 4/5 yr. | 305,820 | 15.00 | 6/12/2008 | 12/31/2017 | ||||||||||||||||||||||
LA Fitness Brooklyn Park, MN |
1 | L.A. Fitness International, LLC | 45,000 | 100 | % | 3/5 yr. | 810,000 | (4) | 18.00 | 6/17/2008 | 6/30/2023 | |||||||||||||||||||
Market Pointe Papillion, NE |
11 | Lowes Home Centers, Inc. | 138,134 | 54 | % | 5/5 yr. | 600,000 | 4.34 | 6/20/2008 | 10/9/2016 | ||||||||||||||||||||
660,000 | 4.78 | 10/10/2016 | 10/9/2026 | |||||||||||||||||||||||||||
Kohls Department Stores, Inc. | 88,248 | 35 | % | 5/5 yr. | 595,674 | 6.75 | 6/20/2008 | 1/31/2027 | ||||||||||||||||||||||
PetSmart Distribution Center McCarran, NV |
1 | PetSmart Inc. | 872,710 | 100 | % | 3/5 yr. | 3,462,157 | (5) | 3.97 | 7/2/2008 | 3/31/2023 | |||||||||||||||||||
Cumming Town Center Cumming, GA |
26 | Kingswere Furniture LLC | 53,667 | 17 | % | 4/5 yr. | 751,338 | 14.00 | 7/11/2008 | 3/14/2018 | ||||||||||||||||||||
The TJX Companies, Inc. | 52,000 | 17 | % | 4/5 yr. | 465,400 | 8.95 | 7/11/2008 | 10/31/2012 | ||||||||||||||||||||||
491,400 | 9.45 | 11/1/2012 | 10/31/2017 | |||||||||||||||||||||||||||
Dicks Sporting Goods, Inc. | 45,000 | 15 | % | 4/5 yr. | 585,000 | 13.00 | 7/11/2008 | 1/31/2013 | ||||||||||||||||||||||
607,500 | 13.50 | 2/1/2013 | 1/31/2018 | |||||||||||||||||||||||||||
Best Buy Stores, L.P. | 30,000 | 10 | % | 4/5 yr. | 435,000 | 14.50 | 7/11/2008 | 1/31/2018 |
17
% of | ||||||||||||||||||||||||||||||
Total | Total | Base | ||||||||||||||||||||||||||||
Number | Square | Square | Current | Rent per | ||||||||||||||||||||||||||
of | Feet | Feet | Renewal | Annual Base | Square | Lease Term*** | ||||||||||||||||||||||||
Property | Tenants | Major Tenants* | Leased | Leased | Options** | Rent | Foot | Beginning | To | |||||||||||||||||||||
Walgreens Rome, NY |
1 | Walgreen Co. | 13,770 | 100 | % | 10/5 yr. | $ | 300,000 | $ | 21.79 | 7/15/2008 | 1/31/2033 | (2) | |||||||||||||||||
LA Fitness Matteson, IL |
1 | L.A. Fitness International, LLC | 45,000 | 100 | % | 3/5 yr. | 792,000 | 17.60 | 7/16/2008 | 5/31/2023 | ||||||||||||||||||||
Walgreens Columbus, MS |
1 | Walgreen Co. | 14,450 | 100 | % | 10/5 yr. | 299,850 | 20.75 | 7/24/2008 | 7/31/2029 | (2) | |||||||||||||||||||
Weston Shops Weston, FL |
8 | Walgreen Co. | 14,820 | 49 | % | 10/5 yr. | 533,000 | 35.96 | 7/30/2008 | 6/30/2031 | ||||||||||||||||||||
Mayors Jewelers of Florida, Inc. | 4,000 | 13 | % | 2/5 yr. | 232,000 | 58.00 | 7/30/2008 | 7/31/2012 | ||||||||||||||||||||||
256,000 | 64.00 | 8/1/2012 | 7/31/2017 | |||||||||||||||||||||||||||
Mattress Giant Corporation | 3,600 | 12 | % | 2/5 yr. | 126,000 | 35.00 | 7/30/2008 | 4/30/2013 | ||||||||||||||||||||||
141,120 | 39.20 | 5/1/2013 | 4/30/2015 | |||||||||||||||||||||||||||
Jo-Ann Fabrics Alpharetta, GA |
1 | FCA of Ohio, Inc. | 38,418 | 100 | % | 3/5 yr. | 512,880 | 13.35 | 8/5/2008 | 1/31/2011 | ||||||||||||||||||||
532,089 | 13.85 | 2/1/2011 | 1/31/2016 | |||||||||||||||||||||||||||
LA Fitness Greenwood, IN |
1 | LA Fitness International, LLC | 45,000 | 100 | % | 3/5 yr. | 832,500 | (4) | 18.50 | 8/5/2008 | 5/31/2023 | |||||||||||||||||||
PetSmart Chattanooga, TN |
1 | Petsmart, Inc. | 26,040 | 100 | % | 3/5 yr. | 344,665 | (6) | 13.24 | 8/5/2008 | 12/31/2021 | |||||||||||||||||||
PetSmart Daytona Beach, FL |
1 | Petsmart, Inc. | 26,194 | 100 | % | 3/5 yr. | 359,664 | (6) | 13.73 | 8/5/2008 | 12/31/2021 | |||||||||||||||||||
PetSmart Fredericksburg, VA |
1 | Petsmart, Inc. | 26,051 | 100 | % | 3/5 yr. | 378,797 | (6) | 14.54 | 8/5/2008 | 12/31/2021 | |||||||||||||||||||
Ferguson Portfolio Various |
1 | Ferguson Enterprises, Inc. | 1,111,843 | 100 | % | 4/5 yr. | 6,446,258 | (7) | 5.80 | 8/21/2008 | 8/30/2023 | |||||||||||||||||||
Home Depot Lakewood, CO |
1 | Home Depot U.S.A, Inc. | 102,000 | 100 | % | 11/5 yr. | 775,000 | 7.60 | 8/27/2008 | 1/31/2032 | ||||||||||||||||||||
Walgreens Mobile, AL |
1 | Walgreens | 13,650 | 100 | % | 10/5 yr. | 357,596 | 26.20 | 8/28/2008 | 10/31/2032 | (2) | |||||||||||||||||||
Aarons Rents Portfolio Various |
1 | Aarons Rents, Inc. | 259,382 | 100 | % | 3/5yr | 2,450,640 | (8) | 9.45 | 9/15/2008 | 9/30/2023 | |||||||||||||||||||
Lowes Chester, NY |
1 | Lowes Home Centers, Inc. | 131,798 | 100 | % | 8/5 yr. | 475,000 | 3.60 | 9/19/2008 | 8/31/2033 | ||||||||||||||||||||
HH Gregg Grove City, OH |
1 | Gregg Appliances, Inc. | 30,167 | 100 | % | 4/5 yr. | 461,555 | 15.30 | 9/17/2008 | 2/28/2023 | ||||||||||||||||||||
BJs Wholesale Club- Ft. Lauderdale, FL |
1 | BJs Wholesale Club, Inc. | 119,598 | 100 | % | 4/5 yr. | 1,979,100 | (9) | 16.55 | 9/23/2008 | 11/17/2027 | |||||||||||||||||||
HH Gregg Mt. Juliet, TN |
1 | Gregg Appliances, Inc. | 30,000 | 100 | % | 4/5 yr. | 495,000 | 16.50 | 9/23/2008 | 8/31/2018 | ||||||||||||||||||||
525,000 | 17.50 | 9/1/2018 | 8/31/2023 | |||||||||||||||||||||||||||
Winter Garden Village Winter Garden, FL |
82 | Bealls Department Stores, Inc. | 80,000 | (13) | 10.5 | % | 5/5 yr. | 320,000 | 4.00 | 9/26/2008 | 4/30/2023 | |||||||||||||||||||
Payless Shoe Source Columbia, SC |
1 | Payless ShoeSource Inc. | 5,534 | 100 | % | 3/5 yr. | 138,367 | 25.00 | 9/30/2008 | 11/30/2008 | ||||||||||||||||||||
152,204 | 27.50 | 12/1/2008 | 11/30/2013 | |||||||||||||||||||||||||||
Walgreens Jacksonville, FL |
1 | Walgreen Co. | 15,120 | 100 | % | 4/10 yr. | 356,000 | 23.54 | 9/30/2008 | 9/30/2020 | (2) | |||||||||||||||||||
CVS Hamilton, OH |
1 | CVS Corporation | 11,180 | 100 | % | 6/5 yr. | 262,145 | 23.45 | 9/30/2008 | 2/24/2019 | ||||||||||||||||||||
Walgreens Akron, OH |
1 | Walgreen Co. | 13,500 | 100 | % | 3/10 yr. | 225,453 | 16.70 | 9/30/2008 | 7/31/2014 | (2) | |||||||||||||||||||
Walgreens Seattle, WA |
1 | Walgreen Co. | 14,410 | 100 | % | 4/10 yr. | 457,000 | 31.71 | 9/30/2008 | 11/30/2022 | (2) | |||||||||||||||||||
Walgreens LaMarque, TX |
1 | Walgreen Co. | 15,120 | 100 | % | 4/10 yr. | 319,000 | 21.10 | 9/30/2008 | 6/30/2020 | (2) | |||||||||||||||||||
CVS Mechanicville, NY |
1 | CVS Albany, L.L.C. | 10,125 | 100 | % | 4/5 yr. | 188,933 | (10) | 18.66 | 9/30/2008 | 1/31/2018 |
18
% of | ||||||||||||||||||||||||||||||
Total | Total | Base | ||||||||||||||||||||||||||||
Number | Square | Square | Current | Rent per | ||||||||||||||||||||||||||
of | Feet | Feet | Renewal | Annual Base | Square | Lease Term*** | ||||||||||||||||||||||||
Property | Tenants | Major Tenants* | Leased | Leased | Options** | Rent | Foot | Beginning | To | |||||||||||||||||||||
Office Depot Laurel, MS |
1 | Office Depot, Inc. | 20,515 | 100 | % | 4/5 yr. | $ | 200,021 | $ | 9.75 | 9/30/2008 | 10/31/2017 | ||||||||||||||||||
Home Depot Colma, CA |
1 | Home Depot U.S.A., Inc. | 99,970 | 100 | % | 4/5 yr. | 2,512,750 | (11) | 25.14 | 9/30/2008 | 1/31/2016 | |||||||||||||||||||
Walgreens Saginaw, MI |
1 | Walgreen Co. | 15,120 | 100 | % | 4/10 yr. | 318,000 | 21.03 | 9/30/2008 | 4/30/2021 | (2) | |||||||||||||||||||
Walgreens Tulsa, OK |
1 | Walgreen Co. | 13,000 | 100 | % | 3/10 yr. | 175,500 | 13.50 | 9/30/2008 | 12/31/2013 | (2) | |||||||||||||||||||
Walgreens Broken Arrow, OK |
1 | Walgreen Co. | 13,000 | 100 | % | 3/10 yr. | 162,500 | 12.50 | 9/30/2008 | 10/31/2013 | (2) | |||||||||||||||||||
Office Depot London, KY |
1 | Office Depot, Inc. | 20,468 | 100 | % | 4/5 yr. | 265,061 | 12.95 | 9/30/2008 | 9/30/2016 | ||||||||||||||||||||
Best Buy Las Cruces, NM |
1 | Best Buy Stores, L.P. | 30,000 | 100 | % | 3/5 yr. | 484,500 | 16.15 | 9/30/2008 | 1/31/2013 | ||||||||||||||||||||
Staples Angola, IN |
1 | Staples, Inc. | 24,049 | 100 | % | 4/5 yr. | 247,705 | 10.30 | 9/30/2008 | 2/28/2015 | ||||||||||||||||||||
TJ Maxx Staunton, VA |
1 | The TJX Companies, Inc. | 78,823 | 100 | % | 4/5 yr. | 413,821 | 5.25 | 9/30/2008 | 10/31/2012 | ||||||||||||||||||||
AT&T Wireless Santa Clara, CA |
1 | AT&T Wireless Services, Inc. | 33,257 | 100 | % | 3/5 yr. | 668,928 | 20.11 | 9/30/2008 | 6/8/2013 | ||||||||||||||||||||
691,152 | 20.78 | 6/9/2013 | 6/8/2018 | |||||||||||||||||||||||||||
Walgreens Tulsa, OK |
1 | Walgreen Co. | 13,500 | 100 | % | 3/10 yr. | 228,150 | 16.90 | 9/30/2008 | 8/31/2014 | (2) | |||||||||||||||||||
Walgreens Crossville, TN |
1 | Walgreen Co. | 15,070 | 100 | % | 4/10 yr. | 324,000 | 21.50 | 9/30/2008 | 3/31/2021 | (2) | |||||||||||||||||||
CVS Columbia, TN |
1 | Revco Discount Drug Centers, Inc. | 10,715 | 100 | % | 4/5 yr. | 195,677 | 18.26 | 9/30/2008 | 11/30/2017 | ||||||||||||||||||||
CVS Columbia, TN |
1 | Revco Discount Drug Centers, Inc. | 10,759 | 100 | % | 4/5 yr. | 182,274 | 16.94 | 9/30/2008 | 11/30/2017 | ||||||||||||||||||||
Walgreens Newton, IA |
1 | Walgreen Co. | 15,047 | 100 | % | 4/10 yr. | 325,000 | 21.60 | 9/30/2008 | 2/28/2021 | (2) | |||||||||||||||||||
FedEx Huntsville, AL |
1 | FedEx Freight East, Inc. | 56,360 | 100 | % | 2/5 yr. | 821,084 | 14.57 | 9/30/2008 | 7/10/2018 | ||||||||||||||||||||
903,192 | 16.03 | 7/11/2018 | 7/31/2023 | |||||||||||||||||||||||||||
FedEx Baton Rouge, LA |
1 | FedEx Freight East, Inc. | 29,400 | 100 | % | 2/5 yr. | 676,848 | 23.02 | 10/3/2008 | 7/22/2018 | ||||||||||||||||||||
744,468 | 25.32 | 7/23/2018 | 7/31/2023 | |||||||||||||||||||||||||||
CVS Atlanta, GA |
1 | Big B Drugs, Inc. | 12,013 | 100 | % | 6/5 yr | 278,479 | 23.18 | 10/7/2008 | 1/31/2033 | ||||||||||||||||||||
Tractor Supply Baldwinsville, NY |
1 | Tractor Supply Company | 24,727 | 100 | % | 3/5 yr. | 253,452 | (12) | 10.25 | 10/15/2008 | 9/30/2020 |
* | Major tenants include those tenants that occupy greater than 10.0% of the rentable square feet of their respective property. | |
** | Represents option renewal period / term of each option. | |
*** | Represents lease term beginning with purchase date. | |
(1) | The initial annual base rent under the lease increases each year by 2.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(2) | Walgreens has the right, at its election, to terminate the lease effective as of the last day of the initial lease term, or effective as of the last day of any month thereafter. | |
(3) | The initial annual base rent under the lease increases each year by 1.5% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(4) | The initial annual base rent under the lease, as displayed in the table above, increases every five years by the lessor of the cumulative percentage increase in the Consumer Price Index over the preceding five year period or 10.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(5) | The initial annual base rent under the lease increases every five years by 10.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(6) | The initial annual base rent under the lease increases every five years by 3.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(7) | The lease consists of seven single tenant retail properties and one single tenant commercial property, which are subject to a |
19
master lease. The initial annual base rent under the lease increases every five years by 7.5% of the then current annual base rent. For purposes of this presentation, the individual rental escalations are not displayed in the table. | ||
(8) | The lease consists of 25 single tenant retail properties, which are subject to a master lease. The initial annual base rent under the lease increases every five years by 2.5% of the then current annual base rent. For purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(9) | The initial annual base rent under the lease increases November 17, 2017 and November 17, 2022 by the lesser of three times the Consumer Price Index or 5%. | |
(10) | The initial annual base rent under the lease increases each year by 8.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(11) | The initial annual base rent under the lease increases every five years by the percentage of the increase, if any, in the United States Bureau of Labor statistics Consumer Price Index for All Items All Urban Consumers for San Francisco-Alameda, California. | |
(12) | The initial annual base rent under the lease increases every five years by 10.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(13) | Total square feet leased is accounted for as a ground lease. |
20
Fixed | ||||||||||||||||||||||||||||
Fixed Rate Loan | Interest | Maturity | Variable Rate | Variable | Maturity | Total Loan | ||||||||||||||||||||||
Property | Amount | Rate | Date | Loan Amount | Interest Rate | Date | Outstanding | |||||||||||||||||||||
Walgreens Elmira, NY |
$ | | N/A | N/A | $ | 3,835,614 | (1) | LIBOR + 2.0% | 9/5/2010 | $ | 3,835,614 | |||||||||||||||||
CVS Onley, VA |
3,328,988 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 3,328,988 | |||||||||||||||||||
Tractor Supply Carroll, OH |
1,213,630 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 1,213,630 | |||||||||||||||||||
Walgreens Hibbing, MN |
2,548,624 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 2,548,624 | |||||||||||||||||||
Allstate Customer Contact
Center Yuma, AZ |
| N/A | N/A | 4,687,201 | (1) | LIBOR + 2.0% | 9/5/2010 | 4,687,201 | ||||||||||||||||||||
Walgreens Essex, MD |
3,937,017 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 3,937,017 | |||||||||||||||||||
Convergys Las Cruces, NM |
4,569,318 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 4,569,318 | |||||||||||||||||||
Walgreens Bath, NY |
2,590,065 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 2,590,065 | |||||||||||||||||||
Walgreens Chino Valley, AZ |
3,298,040 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 3,298,040 | |||||||||||||||||||
Three Forks Dallas, TX |
| N/A | N/A | 6,675,228 | (1) | LIBOR + 2.5% | 9/2/2011 | 6,675,228 | ||||||||||||||||||||
Walgreens Albany, GA |
| N/A | N/A | 2,791,459 | (1) | LIBOR + 2.5% | 9/2/2011 | 2,791,459 | ||||||||||||||||||||
Kohls Grand Forks, ND |
5,173,099 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 5,173,099 | |||||||||||||||||||
LA Fitness Brooklyn Park, MN |
6,341,219 | (1) | 5.87 | % | 9/30/2010 | | NA | N/A | 6,341,219 | |||||||||||||||||||
Cumming Town Center Cumming,
GA |
33,700,000 | (1) | 6.10 | % | 10/1/2015 | | N/A | N/A | 33,700,000 | |||||||||||||||||||
Walgreens Rome, NY |
| N/A | N/A | 2,758,358 | (1) | LIBOR + 2.5% | 9/2/2011 | 2,758,358 | ||||||||||||||||||||
LA Fitness Matteson, IL |
| N/A | N/A | 6,122,398 | (1) | LIBOR + 2.5% | 9/2/2011 | 6,122,398 | ||||||||||||||||||||
Walgreens Columbus, MS |
| N/A | N/A | 2,730,775 | (1) | LIBOR + 2.5% | 9/2/2011 | 2,730,775 | ||||||||||||||||||||
Home Depot Lakewood, CO |
8,350,000 | 5.80 | % | 8/10/2031 | | NA | N/A | 8,350,000 | ||||||||||||||||||||
Payless Shoe Source
Columbia, SC |
860,000 | 4.29 | % | 12/11/2008 | | N/A | N/A | 860,000 | ||||||||||||||||||||
Walgreens Jacksonville, FL |
2,510,750 | 4.29 | % | 12/11/2008 | | N/A | N/A | 2,510,750 | ||||||||||||||||||||
CVS Hamilton, OH |
1,787,500 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,787,500 | ||||||||||||||||||||
Walgreens Akron, OH |
| N/A | N/A | 1,900,000 | LIBOR + 2.0% | 6/6/2009 | 1,900,000 | |||||||||||||||||||||
Walgreens Seattle, WA |
3,349,500 | 4.29 | % | 12/11/2008 | | N/A | N/A | 3,349,500 | ||||||||||||||||||||
Walgreens LaMarque, TX |
2,277,000 | 4.29 | % | 12/11/2008 | | N/A | N/A | 2,277,000 | ||||||||||||||||||||
CVS Mechanicville, NY |
1,290,000 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,290,000 | ||||||||||||||||||||
Office Depot Laurel, MS |
1,270,000 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,270,000 | ||||||||||||||||||||
Home Depot Colma, CA |
21,613,000 | 4.80 | % | 4/11/2009 | | N/A | N/A | 21,613,000 | ||||||||||||||||||||
Walgreens Saginaw, MI |
2,282,500 | 4.29 | % | 12/11/2008 | | N/A | N/A | 2,282,500 | ||||||||||||||||||||
Walgreens Tulsa, OK |
1,215,500 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,215,500 | ||||||||||||||||||||
Walgreens Broken Arrow, OK |
1,127,500 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,127,500 | ||||||||||||||||||||
Office Depot London, KY |
1,680,000 | 4.29 | % | 12/11/2008 | | N/A | N/A | 1,680,000 | ||||||||||||||||||||
Best Buy Las Cruces, NM |
3,809,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 3,809,000 | ||||||||||||||||||||
Staples Angola, IN |
1,999,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 1,999,000 | ||||||||||||||||||||
TJ Maxx Staunton, VA |
3,116,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 3,116,000 | ||||||||||||||||||||
AT&T Wireless Santa Clara, CA |
6,032,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 6,032,000 | ||||||||||||||||||||
Walgreens Tulsa, OK |
1,926,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 1,926,000 | ||||||||||||||||||||
Walgreens Crossville, TN |
2,753,000 | 4.46 | % | 5/11/2011 | | N/A | N/A | 2,753,000 | ||||||||||||||||||||
CVS Columbia, TN (Nashville) |
1,715,000 | 6.44 | % | 6/11/2011 | | N/A | N/A | 1,715,000 | ||||||||||||||||||||
CVS Columbia, TN (James
Campbell) |
1,735,000 | 6.44 | % | 6/11/2011 | | N/A | N/A | 1,735,000 | ||||||||||||||||||||
Walgreens Newton, IA |
2,393,000 | 5.06 | % | 10/11/2009 | | N/A | N/A | 2,393,000 | ||||||||||||||||||||
Winter Garden Winter Garden,
FL |
105,700,000 | 6.10 | % | 10/1/2015 | | N/A | N/A | 105,700,000 | ||||||||||||||||||||
Tractor Supply
Baldwinsville, NY |
2,200,000 | 6.00 | % | 12/1/2025 | | N/A | N/A | 2,200,000 | ||||||||||||||||||||
$ | 249,691,250 | $ | 31,501,033 | $ | 281,192,283 | |||||||||||||||||||||||
(1) | Mortgage note incurred subsequent to purchase date. |
21
22
Property | Depreciable Tax Basis | |||||||
Walgreens Elmira, NY |
$ | 4,860,800 | ||||||
CVS Onley, VA |
4,388,800 | |||||||
Tractor Supply Carroll, OH |
1,600,000 | |||||||
Walgreens Hibbing, MN |
3,360,000 | |||||||
Allstate Customer Contact Center Yuma, AZ |
6,149,127 | |||||||
Walgreens Essex, MD |
5,190,400 | |||||||
Convergys Las Cruces, NM |
6,489,008 | |||||||
Walgreens Bath, NY |
3,388,804 | |||||||
Walgreens Chino Valley, AZ |
4,348,000 | |||||||
III Forks Dallas, TX |
8,800,000 | |||||||
Walgreens Albany, GA |
3,680,000 | |||||||
Kohls Grand Forks, ND |
6,820,000 | |||||||
Coral Walk Cape Coral, FL |
21,600,000 | |||||||
LA Fitness Brooklyn Park, MN |
8,360,000 | |||||||
Market Pointe Papillion, NE |
20,400,000 | |||||||
PetSmart Distribution Center McCarran, NV |
41,220,000 | |||||||
Cumming Town Center Cumming, GA |
46,705,042 | |||||||
Walgreens Rome, NY |
3,582,182 | |||||||
LA Fitness Matteson, IL |
8,071,200 | |||||||
Walgreens Columbus, MS |
3,536,000 | |||||||
Weston Shops Weston, FL |
13,120,000 | |||||||
Jo-Ann Fabrics Alpharetta, GA |
5,152,800 | |||||||
LA Fitness Greenwood, IN |
8,484,000 | |||||||
PetSmart Chattanooga, TN |
3,852,000 | |||||||
PetSmart Daytona Beach, FL |
4,266,400 | |||||||
PetSmart Fredericksburg, VA |
4,159,200 | |||||||
Ferguson Portfolio Various |
69,434,599 | |||||||
Home Depot Lakewood, CO |
9,040,000 | |||||||
Walgreens Mobile, AL |
4,332,000 | |||||||
Aarons Rents Portfolio Various |
26,140,161 | |||||||
Lowes Chester, NY |
5,629,630 | |||||||
HH Gregg Grove City, OH |
4,721,600 | |||||||
BJs Wholesale Club Ft. Lauderdale, FL |
22,618,285 | |||||||
HH Gregg Mt. Juliet, TN |
5,076,800 | |||||||
Winter Garden Village Winter Garden, FL |
144,281,029 | |||||||
Payless Shoe Source Columbia, SC |
1,120,000 | |||||||
Walgreens Jacksonville, FL |
4,040,000 | |||||||
CVS Hamilton, OH |
2,880,000 | |||||||
Walgreens Akron, OH |
2,256,000 | |||||||
Walgreens Seattle, WA |
5,416,000 | |||||||
Walgreens LaMarque, TX |
3,608,000 | |||||||
CVS Mechanicville, NY |
2,080,000 |
23
Property | Depreciable Tax Basis | |||||||
Office Depot Laurel, MS |
$ | 2,120,000 | ||||||
Home Depot Colma, CA |
31,448,000 | |||||||
Walgreens Saginaw, MI |
3,360,000 | |||||||
Walgreens Tulsa, OK |
1,752,000 | |||||||
Walgreens Broken Arrow, OK |
1,680,000 | |||||||
Office Depot London, KY |
2,800,000 | |||||||
Best Buy Las Cruces, NM |
4,880,000 | |||||||
Staples Angola, IN |
2,560,000 | |||||||
TJ Maxx Staunton, VA |
3,440,000 | |||||||
AT&T Wireless Santa Clara, CA |
8,160,000 | |||||||
Walgreens Tulsa, OK |
2,360,000 | |||||||
Walgreens Crossville, TN |
3,560,000 | |||||||
CVS Columbia, TN |
1,920,000 | |||||||
CVS Columbia, TN |
2,080,000 | |||||||
Walgreens Newton, IA |
3,464,000 | |||||||
FedEx Huntsville, AL |
8,758,230 | |||||||
FedEx Baton Rouge, LA |
7,199,104 | |||||||
CVS Atlanta, GA |
3,072,800 | |||||||
Tractor Supply Baldwinsville, NY |
2,721,696 | |||||||
$ | 661,593,697 | |||||||
24
% of Total | ||||||||||||||||
Number of | Approx. Square | Total Annual | Annual Base | |||||||||||||
Year Ending December 31, | Leases Expiring | Feet Expiring | Base Rent | Rent | ||||||||||||
2008 |
3 | 15,431 | $ | 169,911 | <1 | % | ||||||||||
2009 |
15 | 94,263 | 1,149,627 | 1 | % | |||||||||||
2010 |
21 | 119,467 | 1,702,743 | 1 | % | |||||||||||
2011 |
16 | 60,216 | 1,013,272 | 1 | % | |||||||||||
2012 |
41 | 292,666 | 2,683,436 | 1 | % | |||||||||||
2013 |
61 | 547,307 | 5,093,760 | 3 | % | |||||||||||
2014 |
16 | 302,736 | 3,461,001 | 2 | % | |||||||||||
2015 |
19 | 1,216,192 | 8,748,656 | 5 | % | |||||||||||
2016 |
36 | 1,784,836 | 14,989,415 | 9 | % | |||||||||||
2017 |
56 | 1,742,755 | 15,432,561 | 9 | % | |||||||||||
2018 |
73 | 1,319,782 | 11,920,949 | 7 | % | |||||||||||
357 | 7,495,651 | $ | 66,365,331 | 39 | % | |||||||||||
25
| satisfaction of the conditions to the acquisition contained in the respective contract; | ||
| no material adverse change occurring relating to the properties, the tenant or in the local economic conditions; | ||
| our receipt of sufficient net proceeds from the offering of our common stock to the public and financing proceeds to make this acquisition; and | ||
| our receipt of satisfactory due diligence information including the appraisal, environmental reports and tenant and lease information. |
Approximate | ||||||||||||
Expected | Approximate | Compensation to | ||||||||||
Property | Acquisition Date | Seller (1) | Purchase Price (2) | Sponsor (3) | ||||||||
LA Fitness McDonough, GA |
October 2008 | Shoppes At Henry Crossing, LLC | $ | 9,563,750 | $ | 191,275 | ||||||
BE Aerospace Winston
Salem, NC |
October 2008 | Bellevue Acquisitions, LLC | 5,527,000 | 110,540 | ||||||||
Walgreens Evansville, IN |
October 2008 | Hogan Holdings 22, LLC | 5,032,000 | 100,640 | ||||||||
Churchs Chicken Portfolio
- Various |
October 2008 | Fri Chkn Holding, LLC | 132,000,000 | 3,345,160 | ||||||||
$ | 152,122,750 | $ | 3,747,615 | |||||||||
(1) | Seller is an unaffiliated third party. | |
(2) | Approximate purchase price does not include acquisition costs, which we expect to be approximately 3.0% of the contract purchase price, which include acquisition fees described in note 3 below. | |
(3) | Amounts include acquisition fees payable to an affiliate of our advisor for acquisition fees in connection with the property acquisition. |
26
% of Total | ||||||||||||
Total Square | Square Feet | |||||||||||
Property | Major Tenants* | Guarantor | Feet Leased | Leased | ||||||||
LA Fitness McDonough, GA |
L.A. Fitness International, LLC | N/A | 45,000 | 100 | % | |||||||
BE Aerospace Winston Salem, NC |
BE Aerospace, Inc. | N/A | 89,600 | 100 | % | |||||||
Walgreens Evansville, IN |
Walgreen Co. | N/A | 14,820 | 100 | % | |||||||
Churchs Chicken Portfolio Various |
Cajun Operating Company | N/A | 244,075 | 100 | % |
* | Major tenants are those tenants that occupy greater than 10.0% of the rentable square of their respective property. |
Current | Base Rent | |||||||||||||||||||||||
Number of | Renewal | Annual Base | per Square | Lease Term | ||||||||||||||||||||
Property | Tenants | Major Tenants* | Options** | Rent | foot | Beginning | To | |||||||||||||||||
LA Fitness McDonough, GA |
1 | L.A. Fitness International, LLC | 3/5 yr. | 765,000 | (1) | 17.00 | 7/21/2008 | 7/31/2023 | ||||||||||||||||
BE Aerospace
Winston Salem, NC |
1 | BE Aerospace, Inc. | 2/5 yr. | 425,600 | (2) | 4.75 | 8/22/2008 | 8/31/2018 | ||||||||||||||||
Walgreens
Evansville, IN |
1 | Walgreen Co. | 10/5 yr. | 352,300 | 23.77 | 6/25/2007 | 6/30/2032 | |||||||||||||||||
Churchs Chicken
Portfolio
Various |
1 | Cajun Operating Company | 2/ 10 yr. | 11,596,080 | 47.51 | 4/12/2005 | 12/27/2024 |
* | Major tenants include those tenants that occupy greater than 10.0% of the rentable square feet of their respective property. | |
** | Represents option renewal period / term of each option. | |
(1) | The initial annual base rent under the lease, as displayed in the table above, increases every five years by the lessor of the cumulative percentage increase in the Consumer Price Index over the preceding five year period or 10.0% of the then current annual base rent. For the purposes of this presentation, the individual rental escalations are not displayed in the table. | |
(2) | On January 1, 2010 and on each January 1 thereafter during the lease term, base rent increases 2.75% of the then current annual base rent. |
27
Balance Sheet Data: | June 30, 2008 | December 31, 2007 | ||||||
Total real estate assets, net |
$ | 2,236,692,426 | $ | 1,794,352,512 | ||||
Investment in mortgages receivable, net |
$ | 86,117,652 | $ | 87,099,624 | ||||
Cash and cash equivalents |
$ | 43,801,769 | $ | 43,517,178 | ||||
Restricted cash |
$ | 8,347,978 | $ | 14,032,616 | ||||
Total assets |
$ | 2,408,702,420 | $ | 1,967,697,834 | ||||
Mortgage notes payable |
$ | 1,038,583,645 | $ | 1,055,681,538 | ||||
Escrowed investor proceeds |
$ | 2,796,522 | $ | 12,737,969 | ||||
Stockholders equity |
$ | 1,192,256,063 | $ | 781,086,865 |
Three Months Ended | Six Months Ended | Year Ended | ||||||||||
Operating Data: | June 30, 2008 | June 30, 2008 | December 31, 2007 | |||||||||
Total revenue |
$ | 44,108,126 | $ | 84,788,387 | $ | 89,842,150 | ||||||
General and administrative |
$ | 1,110,673 | $ | 2,079,890 | $ | 2,011,322 | ||||||
Property operating expenses |
$ | 3,439,305 | $ | 6,140,183 | $ | 6,466,677 | ||||||
Property and asset management fees |
$ | 2,046,127 | $ | 3,954,929 | $ | 4,184,271 | ||||||
Depreciation and amortization |
$ | 14,119,950 | $ | 27,487,653 | $ | 30,482,273 | ||||||
Impairment of real estate assets |
$ | | $ | 3,550,000 | $ | 5,400,000 | ||||||
Operating income |
$ | 23,392,071 | $ | 41,575,732 | $ | 41,297,607 | ||||||
Interest expense |
$ | 16,608,453 | $ | 34,569,901 | $ | 39,075,748 | ||||||
Net income |
$ | 7,047,454 | $ | 7,634,107 | $ | 4,480,017 | ||||||
Funds from operations (1) |
$ | 21,167,404 | $ | 38,671,760 | $ | 40,362,290 | ||||||
Net
operating income (1) |
$ | 37,561,822 | $ | 72,559,669 | $ | 79,616,322 | ||||||
Per share data: |
||||||||||||
Net income basic and diluted |
$ | 0.05 | $ | 0.06 | $ | 0.07 | ||||||
Weighted average dividends declared |
$ | 0.17 | $ | 0.35 | $ | 0.68 | ||||||
Weighted average shares outstanding (basic) |
130,357,008 | 117,448,582 | 60,929,996 | |||||||||
Weighted average shares outstanding (diluted) |
130,360,091 | 117,451,552 | 60,931,316 |
Six Months Ended | Year Ended December | |||||||
Cash Flow Data: | June 30, 2008 | 31, 2007 | ||||||
Cash flows provided by operations |
$ | 38,783,625 | $ | 43,366,041 | ||||
Cash flows used in investing activities |
$ | (405,737,744 | ) | $ | (1,364,777,444 | ) | ||
Cash flows provided by financing activities |
$ | 367,238,710 | $ | 1,327,362,091 |
(1) | See tables below for a reconciliation of this non-GAAP financial measure to net income. |
28
Three Months Ended | Six Months Ended | Year Ended | ||||||||||
June 30, 2008 | June 30, 2008 | December 31, 2007 | ||||||||||
Net income |
$ | 7,047,454 | $ | 7,634,107 | $ | 4,480,017 | ||||||
Add: |
||||||||||||
Depreciation of real estate assets |
9,259,374 | 17,992,484 | 20,460,219 | |||||||||
Amortization of lease related costs |
4,860,576 | 9,495,169 | 10,022,054 | |||||||||
Impairment on real estate assets |
| 3,550,000 | 5,400,000 | |||||||||
FFO |
$ | 21,167,404 | $ | 38,671,760 | $ | 40,362,290 | ||||||
| In order to recognize revenues on a straight-line basis over the terms of the respective leases, we recognized additional revenue by straight-lining rental revenue of approximately $2.1 million and approximately $4.2 million during the three and six months ended June 30, 2008, respectively, and approximately $4.4 million during the year ended December 31, 2007. |
| Amortization of deferred financing costs totaled approximately $1.0 million and approximately $2.8 million during the three and six months ended June 30, 2008, respectively and approximately $1.9 million during the year ended December 31, 2007. |
| Net income includes a net gain on disposal of rate lock of approximately $478,000 for the year ended December 31, 2007. |
Three Months Ended | Six Months Ended | Year Ended | ||||||||||
June 30, 2008 | June 30, 2008 | December 31, 2007 | ||||||||||
Rental revenue (1) |
$ | 41,724,904 | $ | 80,116,370 | $ | 87,652,801 | ||||||
Property operating
expenses (2) |
4,163,082 | 7,556,701 | 8,036,479 | |||||||||
Net operating income |
$ | 37,561,822 | $ | 87,673,071 | $ | 79,616,322 | ||||||
(1) | Rental revenue includes adjustments as defined by GAAP such as straight-line rental revenue, tenant reimbursements and adjustments for the value of above and below market lease amortization. | |
(2) | The primary property operating expense items are property management fees, repairs and maintenance, property taxes, and insurance. Property operating expenses exclude depreciation, amortization, general and administrative expenses, interest expense and asset management fees. |
Three Months Ended | Six Months Ended | Year Ended | ||||||||||
June 30, 2008 | June 30, 2008 | December 31, 2007 | ||||||||||
Net operating income |
$ | 37,561,822 | $ | 72,559,669 | $ | 79,616,322 | ||||||
Earned income from direct financing leases |
611,456 | 1,117,755 | 1,075,412 | |||||||||
Interest income on mortgage notes
receivable |
1,771,766 | 3,554,262 | 1,113,937 | |||||||||
General and administrative |
(1,110,673 | ) | (2,079,890 | ) | (2,011,322 | ) | ||||||
Asset management fees |
(1,322,350 | ) | (2,538,411 | ) | (2,614,469 | ) | ||||||
Depreciation |
(9,259,374 | ) | (17,992,484 | ) | (20,460,219 | ) | ||||||
Amortization |
(4,860,576 | ) | (9,495,169 | ) | (10,022,054 | ) | ||||||
Impairment or real estate assets |
| (3,550,000 | ) | (5,400,000 | ) | |||||||
Interest income |
263,836 | 628,276 | 2,258,158 | |||||||||
Interest expense |
(16,608,453 | ) | (34,569,901 | ) | (39,075,748 | ) | ||||||
Net income |
$ | 7,047,454 | $ | 7,634,107 | $ | 4,480,017 | ||||||
29
Percentage of 2008 | ||||||||||||||||
Total Number | Rentable Square | 2008 Annualized | Annualized Gross | |||||||||||||
Location | of Properties | Feet | Gross Base Rents | Base Rent | ||||||||||||
Texas |
43 | 3,177,031 | $ | 24,687,240 | 16 | % | ||||||||||
Illinois |
17 | 1,602,529 | 18,366,036 | 12 | % | |||||||||||
Ohio |
56 | 525,545 | 10,416,118 | 7 | % | |||||||||||
Georgia |
30 | 493,376 | 8,250,617 | 5 | % | |||||||||||
Missouri |
17 | 504,663 | 8,012,079 | 5 | % | |||||||||||
163 | 6,303,144 | $ | 69,732,090 | 45 | % | |||||||||||
Percentage of 2008 | ||||||||||||||||
Total Number | Rentable | 2008 Annualized | Annualized Gross | |||||||||||||
Industry | of Leases | Square Feet | Gross Base Rent | Base Rent | ||||||||||||
Drugstore |
77 | 1,028,282 | $ | 22,422,057 | 14 | % | ||||||||||
Specialty retail |
115 | 1,670,448 | 17,936,443 | 11 | % | |||||||||||
Sporting goods |
17 | 2,238,954 | 15,352,758 | 10 | % | |||||||||||
Convenience stores |
84 | 277,478 | 12,563,148 | 8 | % | |||||||||||
Restaurant |
57 | 334,488 | 12,030,976 | 8 | % | |||||||||||
350 | 5,549,650 | $ | 80,305,382 | 51 | % | |||||||||||
Percentage of 2008 | ||||||||||||
Total Number | 2008 Annualized | Annualized Gross | ||||||||||
Tenant | of Leases | Gross Base Rent | Base Rent | |||||||||
Walgreens drug store |
40 | $ | 12,293,934 | 8 | % | |||||||
Academy Sports sporting goods |
9 | 11,578,577 | 7 | % | ||||||||
Circle K convenience store |
83 | 11,550,030 | 7 | % | ||||||||
Station Casinos gaming |
1 | 5,921,959 | 4 | % | ||||||||
Applebees restaurant |
3 | 5,397,224 | 3 | % | ||||||||
136 | $ | 46,741,724 | 29 | % | ||||||||
30
Cash flow | ||||||||||||||||||||||||||||
Funds | Cash flow | from | ||||||||||||||||||||||||||
Distributions | from | from | operating | |||||||||||||||||||||||||
Distributions | Distributions | declared, per | Funds from | operations | operating | activities | ||||||||||||||||||||||
Quarter Ended | Declared | Paid (a) | common share | operations | per share | activities | per share | |||||||||||||||||||||
September 30, 2007
|
12,050,997 | 10,842,997 | 0.18 | 11,767,682 | 0.17 | 11,877,218 | 0.17 | |||||||||||||||||||||
December 31, 2007
|
15,109,245 | 13,947,563 | 0.18 | 13,995,806 | 0.16 | 15,344,009 | 0.18 | |||||||||||||||||||||
March 31, 2008
|
18,196,163 | 16,967,965 | 0.17 | 17,504,356 | 0.17 | 18,890,398 | 0.18 | |||||||||||||||||||||
June 30, 2008
|
22,680,941 | 21,331,114 | 0.17 | 21,167,404 | 0.16 | 19,893,227 | 0.15 |
(a) | Distributions paid includes cash distributions paid to investors and common stock issued under our distribution reinvestment plan (the DRIP). |
31
As of | As of | |||||||
June 30, 2008 | December 31, 2007 | |||||||
Offering Stage: |
||||||||
Selling commissions |
$ | 96,951,729 | $ | 62,908,152 | ||||
Selling commissions reallowed |
$ | 96,513,332 | $ | 62,908,152 | ||||
Dealer manager fee |
$ | 25,406,786 | $ | 15,568,311 | ||||
Dealer manager fee reallowed |
$ | 7,302,609 | $ | 4,510,647 | ||||
Other organization and offering expenses |
$ | 10,884,596 | $ | 8,362,087 |
For the six months | ||||||||
ended June 30, | For the year ended | |||||||
2008 | December 31, 2007 | |||||||
Operational Stage: |
||||||||
Acquisition and advisory fee |
$ | 8,410,126 | $ | 26,875,563 | ||||
Acquisition expenses |
$ | | $ | | ||||
Asset management fees |
$ | 2,538,411 | $ | 2,614,469 | ||||
Property management and leasing fees |
$ | 1,416,518 | $ | 1,569,802 | ||||
Operating expenses |
$ | | $ | | ||||
Financing coordination fee |
$ | 982,361 | $ | 7,992,466 | ||||
Liquidation/ Listing Stage: |
||||||||
Real estate commissions |
$ | | $ | | ||||
Subordinated participation in net sale proceeds |
$ | | $ | | ||||
Subordinated incentive listing fee |
$ | | $ | |
32
(1) | Annual Report on Form 10-K for the fiscal year ended December 31, 2007 filed with the SEC on March 31, 2008; | ||
(2) | Current Report on Form 8-K filed with the SEC on April 2, 2008; | ||
(3) | Definitive Proxy Statement filed with the SEC on April 9, 2008 in connection with our Annual Meeting of Stockholders held on May 29, 2008; | ||
(4) | Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 filed with the SEC on May 15, 2008; | ||
(5) | Current Report on Form 8-K filed with the SEC on May 30, 2008; | ||
(6) | Current Report on Form 8-K filed with the SEC on June 19, 2008; | ||
(7) | Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed with the SEC on August 14, 2008; and | ||
(8) | Current Report on Form 8-K filed with the SEC on September 29, 2008. |
33
Page | ||
Summary
Financial Information of Properties Acquired and Probable Properties
to be Acquired(a) |
||
Sembler Portfolio Properties Various Cities (Sembler Portfolio Properties) |
||
Overview
|
F-3 | |
Independent Auditors Report |
F-4 | |
Audited Financial Statements of Portfolio Acquired |
F-5 | |
Statement of Revenues and Certain Operating Expenses for the Year Ended
December 31, 2007 and the Six Months Ended June 30, 2008 |
F-6 | |
Notes to the Statement of Revenues and Certain Operating Expenses |
F-8 | |
Churchs Chicken Portfolio Various Properties Summary Financial Data Regarding Churchs Chicken |
||
Tractor Supply Various Properties Summary Financial Data Regarding Tractor Supply |
F-9 | |
Walgreens Various Properties Summary Financial Data Regarding Walgreens |
F-10 | |
Kohls Grand Forks, ND (KO Grand Forks Property) Summary Financial Data Regarding Kohls |
F-12 | |
CVS Various Properties Summary Financial Data Regarding CVS |
F-13 | |
Petsmart Various Properties Summary Financial Data Regarding Petsmart |
F-15 | |
Home Depot Various Properties Summary Financial Data Regarding Home Depot |
F-16 | |
Lowes Chester, NY (LO Chester Property) Summary Financial Data Regarding Lowes |
F-18 | |
Office Depot Various Properties Summary Financial Data Regarding Office Depot |
F-19 | |
Staples Angola, IN (ST Angola Property) Summary Financial Data Regarding Staples |
F-21 | |
Best Buy Las Cruces, NM (BB Las Cruces Property) Summary Financial Data Regarding Best Buy |
F-22 | |
AT&T Santa Clara, CA (ATT Santa Clara Property) Summary Financial Data Regarding AT&T |
F-24 | |
Payless Columbia, SC (PL Columbia Property) Summary Financial Data Regarding Payless |
F-25 |
F-1
Page | ||
TJ Maxx Staunton, VA (TJ Staunton Property) Summary Financial Data Regarding TJX Companies |
F-26 | |
BJs Wholesale Ft. Lauderdale, FL (BJ Ft. Lauderdale Property) Summary Financial Data Regarding BJs |
F-27 | |
Unaudited Pro Forma Financial Statements Cole Credit Property Trust II, Inc. |
||
Pro Forma Consolidated Balance Sheet as of June 30, 2008 (Unaudited)
|
F-28 | |
Pro Forma Consolidated Statement of Operations for the Six Months Ended June 30, 2008 (Unaudited)
|
F-30 | |
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
F-31 | |
Pro Forma Consolidated Statement of Operations for the Year Ended December 31, 2007 (Unaudited)
|
F-35 | |
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
F-36 |
(a) | This section includes summary financial information of properties acquired and probable properties to be acquired pursuant to SEC Rule 3-14 of Regulation S-X. |
F-2
F-3
F-4
Year Ended | Six Months Ended | ||||||||
December 31, 2007 | June 30, 2008 | ||||||||
(Unaudited) | |||||||||
Revenues: |
|||||||||
Rental revenue |
$ | 4,816,224 | $ | 9,485,754 | |||||
Tenant
reimbursement income |
861,886 | 2,189,125 | |||||||
Total revenues |
5,678,110 | 11,674,879 | |||||||
Certain Operating Expenses: |
|||||||||
Real estate taxes |
407,512 | 835,606 | |||||||
Insurance |
8,628 | 323,812 | |||||||
Other
reimbursable expenses |
519,969 | 1,018,966 | |||||||
Total certain operating expenses |
936,109 | 2,178,384 | |||||||
Revenues in excess of certain operating expenses |
$ | 4,742,001 | $ | 9,496,495 | |||||
F-5
F-6
Year ending December 31: |
||||
2008 |
$ | 16,510,616 | ||
2009 |
18,137,197 | |||
2010 |
18,133,486 | |||
2011 |
18,068,591 | |||
2012 |
17,923,775 | |||
Thereafter |
96,084,903 | |||
Total |
$ | 184,858,568 | ||
F-7
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
7/13/2008 | 12/31/2007 | 12/31/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated
Statements of
Operations |
||||||||||||||||
Revenues |
$ | 156,747 | $ | 273,559 | $ | 280,987 | $ | 271,456 | ||||||||
Operating Income |
24,682 | 35,426 | 41,603 | 36,151 | ||||||||||||
Net Income (Loss) |
2,851 | (3,677 | ) | 1,833 | (4,225 | ) |
As of | As of the Fiscal Year Ended | |||||||||||||||
7/13/2008 | 12/31/2007 | 12/31/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 453,025 | $ | 456,346 | $ | 451,849 | $ | 444,015 | ||||||||
Long-term Debt |
155,637 | 330,393 | 327,538 | 322,222 | ||||||||||||
Stockholders Equity |
80,657 | 77,702 | 81,134 | 79,052 |
F-8
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Carroll, Ohio |
5/8/2008 | $ | 2,000,000 | 40,700 | 1976 | |||||||||||
Baldwinsville, NY |
10/15/2008 | 3,402,120 | 24,727 | 2005 | ||||||||||||
$ | 5,402,120 | 65,427 | ||||||||||||||
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated
Statements of
Operations |
||||||||||||||||
Revenues |
$ | 898,327 | $ | 2,703,212 | $ | 2,369,612 | $ | 2,067,979 | ||||||||
Operating Income (Loss) |
77,126 | 160,041 | 148,020 | 136,444 | ||||||||||||
Net Income (Loss) |
47,018 | 96,241 | 91,008 | 85,669 |
As of | As of the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 1,176,319 | $ | 1,057,971 | $ | 998,258 | $ | 814,795 | ||||||||
Long-term Debt |
2,093 | 2,351 | 2,808 | 10,739 | ||||||||||||
Stockholders Equity |
591,690 | 565,337 | 598,904 | 477,698 |
F-9
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Elmira, NY |
5/1/2008 | $ | 6,076,000 | 14,820 | 2007 | |||||||||||
Hibbing, MN |
5/14/2008 | 4,200,000 | 14,820 | 2007 | ||||||||||||
Essex, MD |
5/30/2008 | 6,488,000 | 14,820 | 2007 | ||||||||||||
Bath, NY |
6/2/2008 | 4,236,005 | 12,222 | 2008 | ||||||||||||
Chino Valley, AZ |
6/2/2008 | 5,435,000 | 14,820 | 2006 | ||||||||||||
Albany, GA |
6/11/2008 | 4,600,000 | 14,820 | 2008 | ||||||||||||
Rome, NY |
7/15/2008 | 4,477,727 | 13,770 | 2007 | ||||||||||||
Columbus, MS |
7/24/2008 | 4,420,000 | 14,450 | 2004 | ||||||||||||
Mobile, AL |
8/28/2008 | 5,415,000 | 13,650 | 2007 | ||||||||||||
Crossville, TN (2) |
9/30/2008 | 4,450,000 | 15,070 | 2001 | ||||||||||||
Tulsa, OK (2) |
9/30/2008 | 2,950,000 | 13,500 | 1994 | ||||||||||||
Newton, IA (2) |
9/30/2008 | 4,330,000 | 15,047 | 2000 | ||||||||||||
Jacksonville, FL (1) |
9/30/2008 | 5,050,000 | 15,120 | 2000 | ||||||||||||
Akron, OH (1) |
9/30/2008 | 2,820,000 | 13,500 | 1994 | ||||||||||||
Seattle, WA (1) |
9/30/2008 | 6,770,000 | 14,410 | 2002 | ||||||||||||
LaMarque, TX (1) |
9/30/2008 | 4,510,000 | 15,120 | 2000 | ||||||||||||
Saginaw, MI (1) |
9/30/2008 | 4,200,000 | 15,120 | 2001 | ||||||||||||
Tulsa, OK (1) |
9/30/2008 | 2,190,000 | 13,000 | 1993 | ||||||||||||
Broken Arrow, OK (1) |
9/30/2008 | 2,100,000 | 13,000 | 1993 | ||||||||||||
Evansville, IN |
(3 | ) | 5,032,000 | 14,820 | 2007 | |||||||||||
Total |
$ | 89,749,732 | 285,899 | |||||||||||||
(1) | Property was acquired from Cole Credit Property Fund LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. | |
(2) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. | |
(3) | Our advisor has identified this property as a potential suitable investment for us. The acquisition of such property is subject to a number of conditions. A significant condition to acquiring any potential acquisition is our ability to raise sufficient proceeds in this offering to pay a portion of the purchase price. Such financing may not be available on acceptable terms or at all. |
F-10
For the Three | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
5/31/2008 | 8/31/2007 | 8/30/2006 | 8/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated
Statements of
Operations |
||||||||||||||||
Revenues |
$ | 15,015.7 | $ | 53,762.0 | $ | 47,409.0 | $ | 42,201.6 | ||||||||
Operating Income |
913.8 | 3,150.7 | 2,701.5 | 2,424.0 | ||||||||||||
Net Income |
572.3 | 2,041.3 | 1,750.6 | 1,559.5 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
5/31/2008 | 8/31/2007 | 8/30/2006 | 8/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 21,587.6 | $ | 19,313.6 | $ | 17,131.1 | $ | 14,608.8 | ||||||||
Long-term Debt |
1,400.7 | 1,306.8 | 1,118.9 | 997.7 | ||||||||||||
Stockholders Equity |
12,535.0 | 11,104.3 | 10,115.8 | 8,889.7 |
F-11
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Grand Forks, ND |
6/11/2008 | $ | 8,525,000 | 68,725 | 2006 |
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated
Statements of
Operations |
||||||||||||||||
Revenues |
$ | 7,349,749 | $ | 16,473,734 | $ | 15,596,910 | $ | 13,444,397 | ||||||||
Operating Income |
677,976 | 1,804,477 | 1,814,801 | 1,416,181 | ||||||||||||
Net Income |
388,970 | 1,083,851 | 1,108,681 | 841,960 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 10,875,514 | $ | 10,560,082 | $ | 9,041,177 | $ | 9,153,494 | ||||||||
Long-term Debt |
2,049,661 | 2,051,875 | 1,040,057 | 1,046,104 | ||||||||||||
Stockholders Equity |
6,233,199 | 6,101,603 | 5,603,395 | 5,957,338 |
F-12
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Onley, VA |
5/8/2008 | $ | 5,486,000 | 13,225 | 2007 | |||||||||||
Columbia, TN (Nashville) (2) |
9/30/2008 | 2,400,000 | 10,715 | 1998 | ||||||||||||
Columbia, TN (James Campbell) (2) |
9/30/2008 | 2,600,000 | 10,759 | 1998 | ||||||||||||
Hamilton, OH (1) |
9/30/2008 | 3,600,000 | 11,180 | 1999 | ||||||||||||
Mechanicsville, NY (1) |
9/30/2008 | 2,600,000 | 10,125 | 1998 | ||||||||||||
Atlanta, GA |
10/7/2008 | 3,841,000 | 12,013 | 2006 | ||||||||||||
Total |
$ | 20,527,000 | 68,017 | |||||||||||||
(1) | Property was acquired from Cole Credit Property Fund LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. | |
(2) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
F-13
For the 26 Weeks | ||||||||||||||||
Ended | For the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 42,466.3 | $ | 76,329.5 | $ | 43,821.4 | $ | 37,006.7 | ||||||||
Operating Income |
2,848.2 | 4,793.3 | 2,441.6 | 2,019.5 | ||||||||||||
Net Income |
1,523.3 | 2,637.0 | 1,368.9 | 1,224.7 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 54,467.0 | $ | 54,721.9 | $ | 20,574.1 | $ | 15,283.4 | ||||||||
Long-term Debt |
9,208.3 | 9,207.6 | 3,651.5 | 2,368.3 | ||||||||||||
Stockholders Equity |
33,010.2 | 31,321.9 | 9,917.6 | 8,331.2 | ||||||||||||
F-14
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
McCarran, NV |
7/2/2008 | $ | 51,525,000 | 872,710 | 2008 | |||||||||||
Chattanooga, TN |
8/5/2008 | 4,815,000 | 26,040 | 1996 | ||||||||||||
Daytona Beach, FL |
8/5/2008 | 5,333,000 | 26,194 | 1996 | ||||||||||||
Fredericksburg, VA |
8/5/2008 | 5,199,000 | 26,051 | 1997 | ||||||||||||
Total |
$ | 66,872,000 | 950,995 | |||||||||||||
For the 26 | ||||||||||||||||
Weeks Ended | For the Fiscal Year Ended | |||||||||||||||
8/3/2008 | 2/3/2008 | 1/28/2007 | 1/29/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 2,454,879 | $ | 4,672,656 | $ | 4,233,857 | $ | 3,760,499 | ||||||||
Operating Income |
155,668 | 351,513 | 321,834 | 311,380 | ||||||||||||
Net Income |
78,459 | 258,684 | 185,069 | 182,490 |
As of | As of the Fiscal Year Ended | |||||||||||||||
8/3/2008 | 2/3/2008 | 1/28/2007 | 1/29/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 2,288,750 | $ | 2,167,257 | $ | 2,053,477 | $ | 1,863,691 | ||||||||
Long-term Debt |
546,965 | 508,765 | 431,334 | 351,564 | ||||||||||||
Stockholders Equity |
1,020,516 | 986,597 | 1,000,894 | 940,750 |
F-15
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Lakewood, CO |
8/27/2008 | $ | 11,300,000 | 102,000 | 2006 | |||||||||||
Colma, CA (1) |
9/30/2008 | 39,310,000 | 99,970 | 1995 | ||||||||||||
$ | 50,610,000 | 201,970 | ||||||||||||||
(1) | Property was acquired from Cole Credit Property Fund LP and Cole Credit Property Fund II LP, affiliates of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund LP and Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
F-16
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
8/3/2008 | 2/3/2008 | 1/28/2007 | 1/29/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 38,897 | $ | 77,349 | $ | 79,022 | $ | 77,019 | ||||||||
Operating Income |
2,770 | 7,242 | 8,866 | 9,047 | ||||||||||||
Net Income |
1,558 | 4,395 | 5,761 | 5,838 |
As of | As of the Fiscal Year Ended | |||||||||||||||
8/3/2008 | 2/3/2008 | 1/28/2007 | 1/29/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 45,099 | $ | 44,324 | $ | 52,263 | $ | 44,405 | ||||||||
Long-term Debt |
11,366 | 11,383 | 11,643 | 2,672 | ||||||||||||
Stockholders Equity |
18,649 | 17,714 | 25,030 | 26,909 |
F-17
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
Chester, NY
|
9/19/2008 | $ | 7,037,037 | 131,798 | 2008 |
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
8/1/2008 | 2/1/2008 | 2/2/2007 | 2/3/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 26,519 | $ | 48,283 | $ | 46,927 | $ | 43,243 | ||||||||
Operating Income |
3,372 | 6,071 | 6,314 | 5,634 | ||||||||||||
Net Income |
1,545 | 2,809 | 3,105 | 2,765 |
As of | As of the Fiscal Year Ended | |||||||||||||||
8/1/2008 | 2/1/2008 | 2/2/2007 | 2/3/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 32,549 | $ | 30,869 | $ | 27,767 | $ | 24,639 | ||||||||
Long-term Debt |
5,050 | 5,576 | 4,325 | 3,499 | ||||||||||||
Stockholders Equity |
17,506 | 16,098 | 15,725 | 14,296 |
F-18
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||
Laurel, MS (1) |
9/30/2008 | $ | 2,650,000 | 20,515 | 2002 | |||||||||||
London, KY (1) |
9/30/2008 | 3,500,000 | 20,468 | 2001 | ||||||||||||
Total |
$ | 6,150,000 | 40,983 | |||||||||||||
(1) | Property was acquired from Cole Credit Property Fund LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
F-19
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 7,567,090 | $ | 15,527,537 | $ | 15,010,781 | $ | 14,278,944 | ||||||||
Operating Income |
103,668 | 483,601 | 713,187 | 348,042 | ||||||||||||
Net Income |
66,771 | 395,615 | 503,471 | 273,792 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
6/28/2008 | 12/29/2007 | 12/30/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 7,318,382 | $ | 7,256,540 | $ | 6,557,438 | $ | 6,098,525 | ||||||||
Long-term Debt |
615,653 | 607,462 | 570,752 | 569,098 | ||||||||||||
Stockholders Equity |
3,261,794 | 3,083,844 | 2,597,447 | 2,739,221 | ||||||||||||
F-20
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
Angola, IN (1)
|
9/30/2008 | $ | 3,200,000 | 24,049 | 1999 |
(1) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
For the 26 | ||||||||||||||||
Weeks Ended | For the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 9,959,274 | $ | 19,372,682 | $ | 18,160,789 | $ | 16,078,852 | ||||||||
Operating Income |
567,381 | 1,548,249 | 1,463,069 | 1,234,081 | ||||||||||||
Net Income |
362,515 | 995,670 | 973,677 | 784,117 |
As of | As of the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 15,208,744 | $ | 9,036,344 | $ | 8,397,265 | $ | 7,732,720 | ||||||||
Long-term Debt |
864,843 | 342,169 | 316,465 | 527,606 | ||||||||||||
Stockholders Equity |
5,940,873 | 5,718,007 | 5,021,665 | 4,481,601 |
F-21
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
Las Cruces, NM (1)
|
9/30/08 | $ | 6,100,000 | 30,000 | 2002 |
(1) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
F-22
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
8/30/2008 | 3/1/2008 | 3/3/2007 | 2/25/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 18,791 | $ | 40,023 | $ | 35,934 | $ | 30,848 | ||||||||
Operating Income |
616 | 2,161 | 1,999 | 1,644 | ||||||||||||
Net Income |
381 | 1,407 | 1,377 | 1,140 |
As of | As of the Fiscal Year Ended | |||||||||||||||
8/30/2008 | 3/1/2008 | 3/3/2007 | 2/25/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 17,522 | $ | 12,758 | $ | 13,570 | $ | 11,864 | ||||||||
Long-term Debt |
1,136 | 627 | 590 | 178 | ||||||||||||
Stockholders Equity |
4,752 | 4,484 | 6,201 | 5,257 |
F-23
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||||||||
Santa Clara, CA (1) |
(1 | ) | 9/30/2008 | $ | 10,200,000 | 33,257 | 2002 |
(1) | Property was acquired from Cole Credit Property Fund II LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
For the Six | ||||||||||||||||
Months Ended | For the Fiscal Year Ended | |||||||||||||||
June 30, 2008 | 12/31/2007 | 12/31/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 61,610 | $ | 118,928 | $ | 63,055 | $ | 43,764 | ||||||||
Operating Income |
12,547 | 20,404 | 10,288 | 6,168 | ||||||||||||
Net Income |
7,233 | 11,951 | 7,356 | 4,786 |
As of | As of the Fiscal Year Ended | |||||||||||||||
June 30, 2008 | 12/31/2007 | 12/31/2006 | 12/31/2005 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 284,508 | $ | 275,644 | $ | 270,634 | $ | 145,632 | ||||||||
Long-term Debt |
63,675 | 57,255 | 50,063 | 26,115 | ||||||||||||
Stockholders Equity |
111,937 | 115,367 | 115,540 | 54,690 |
F-24
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
Columbia, SC (1)
|
9/30/2008 | $ | 1,400,000 | 5,534 | 1998 |
(1) | Property was acquired from Cole Credit Property Fund LP, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund LP, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
For the 26 Weeks | For the Fiscal Year Ended | |||||||||||||||
Ended 8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 1,844.1 | $ | 3,035.4 | $ | 2,796.7 | $ | 2,665.7 | ||||||||
Operating Income |
64.8 | 91.3 | 166.4 | 117.7 | ||||||||||||
Net Income |
27.8 | 42.7 | 122.0 | 66.4 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in millions) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 2,650.9 | $ | 2,415.2 | $ | 1,427.4 | $ | 1,314.5 | ||||||||
Long-term Debt |
1,126.3 | 914.9 | 201.7 | 204.2 | ||||||||||||
Stockholders Equity |
742.9 | 702.9 | 700.1 | 652.0 | ||||||||||||
F-25
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
Staunton, VA (1)
|
9/30/2008 | $ | 4,300,000 | 78,823 | 1988 |
(1) | Property was acquired from Cole Credit Property Fund II LP, LLC, an affiliate of our advisor. Our board of directors, including all of the independent directors, approved the transaction as being fair and reasonable to us, at a price in excess of the cost to Cole Credit Property Fund II LP, LLC, but substantial justification exists for such excess, such excess is reasonable and the costs of the interest did not exceed its current fair market value as determined by an independent appraiser approved by our independent directors. |
For the 26 Weeks | For the Fiscal Year Ended | |||||||||||||||
Ended 7/26/2008 | 1/26/2008 | 1/27/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 8,985,417 | $ | 18,647,126 | $ | 17,404,637 | $ | 15,955,943 | ||||||||
Operating Income |
611,484 | 1,438,113 | 1,267,374 | 1,038,001 | ||||||||||||
Net Income |
394,072 | 771,750 | 738,039 | 690,423 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
7/26/2008 | 1/26/2008 | 1/27/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 6,792,555 | $ | 6,599,934 | $ | 6,619,915 | $ | 5,496,305 | ||||||||
Long-term Debt |
1,596,128 | 1,664,793 | 1,588,331 | 1,351,800 | ||||||||||||
Stockholders Equity |
2,113,574 | 2,131,245 | 2,154,278 | 1,892,654 |
F-26
Property Location | Date Acquired | Purchase Price | Square Feet | Year Built | ||||||||||
FT. Lauderdale, FL
|
9/23/2008 | $ | 28,272,857 | 119,598 | 2007 |
For the 26 Weeks | For the Fiscal Year Ended | |||||||||||||||
Ended 8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
Revenues |
$ | 5,005,782 | $ | 9,005,002 | $ | 8,480,218 | $ | 7,914,103 | ||||||||
Operating Income |
86,900 | 195,291 | 144,383 | 214,673 | ||||||||||||
Net Income |
53,680 | 122,861 | 72,016 | 128,533 | ||||||||||||
As of | As of the Fiscal Year Ended | |||||||||||||||
8/2/2008 | 2/2/2008 | 2/3/2007 | 1/28/2006 | |||||||||||||
(unaudited) | (in thousands) | |||||||||||||||
Consolidated Balance Sheets |
||||||||||||||||
Total Assets |
$ | 2,015,441 | $ | 2,046,519 | $ | 1,993,014 | $ | 1,989,849 | ||||||||
Long-term Debt |
1,436 | 1,715 | 2,243 | 2,737 | ||||||||||||
Stockholders Equity |
985,542 | 980,492 | 1,019,887 | 1,015,979 |
F-27
F-28
June 30, | Acquisition | Pro Forma | ||||||||||
2008, | Pro Forma | June 30, | ||||||||||
As Reported | Adjustments | 2008 | ||||||||||
(a) | (b) | |||||||||||
ASSETS |
||||||||||||
Investment in real estate assets: |
||||||||||||
Land |
$ | 561,525,098 | $ | 150,950,763 | $ | 712,475,861 | ||||||
Buildings and improvements, less accumulated
depreciation of $42,671,369 at June 30, 2008 |
1,365,441,696 | 461,085,356 | 1,826,527,052 | |||||||||
Real estate assets under direct financing leases, net of
unearned income of $20,952,672 at June 30, 2008 |
38,962,331 | | 38,962,331 | |||||||||
Acquired intangible lease assets, less accumulated
amortization of $24,002,976 at June 30, 2008 |
270,763,301 | 54,479,375 | 325,242,676 | |||||||||
Total real estate assets |
2,236,692,426 | 666,515,494 | 2,903,207,920 | |||||||||
Investment in mortgages receivable, less accumulated
amortization of $392,833 at June 30, 2008 |
86,117,652 | | 86,117,652 | |||||||||
Total investment in real estate assets |
2,322,810,078 | 666,515,494 | 2,989,325,572 | |||||||||
Cash and cash equivalents |
43,801,769 | (43,801,769 | ) | | ||||||||
Restricted cash |
8,347,978 | | 8,347,978 | |||||||||
Rents and tenant receivables, less allowance for
doubtful accounts of $1,502,004 at June 30, 2008 |
12,405,416 | | 12,405,416 | |||||||||
Prepaid expenses, mortgage loan deposits and other assets |
1,476,963 | | 1,476,963 | |||||||||
Deferred financing costs, less accumulated amortization
of $3,792,856 at June 30, 2008 |
19,860,216 | 4,185,171 | 24,045,387 | |||||||||
Total assets |
$ | 2,408,702,420 | $ | 626,898,896 | $ | 3,035,601,316 | ||||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||||||
Mortgage notes payable |
$ | 1,038,583,645 | $ | 311,733,660 | $ | 1,350,317,305 | ||||||
Accounts payable and accrued expenses |
9,162,304 | | 9,162,304 | |||||||||
Escrowed investor proceeds |
2,796,522 | | 2,796,522 | |||||||||
Due to affiliates |
640,479 | | 640,479 | |||||||||
Acquired below market lease intangibles, less
accumulated amortization of $6,005,464 at June 30, 2008 |
114,314,242 | 11,302,969 | 125,617,211 | |||||||||
Distributions payable |
8,012,300 | | 8,012,300 | |||||||||
Deferred rent and other liabilities |
4,452,587 | | 4,452,587 | |||||||||
Total liabilities |
1,177,962,079 | 323,036,629 | 1,500,998,708 | |||||||||
Redeemable common stock |
38,484,278 | | 38,484,278 | |||||||||
Preferred stock, $0.01 par value; 10,000,000 shares
authorized, none issued and outstanding at June 30, 2008 |
| | | |||||||||
Common stock, $.01 par value; 240,000,000 shares
authorized, 144,589,086 shares issued and outstanding at
June 30, 2008 |
1,445,891 | 337,625 | 1,783,516 | |||||||||
Capital in excess of par value |
1,268,578,715 | 303,524,643 | 1,572,103,358 | |||||||||
Accumulated distributions in excess of earnings |
(77,768,543 | ) | | (77,768,543 | ) | |||||||
Total stockholders equity |
1,192,256,063 | 303,862,268 | 1,496,118,331 | |||||||||
Total liabilities and stockholders equity |
$ | 2,408,702,420 | $ | 626,898,896 | $ | 3,035,601,316 | ||||||
F-29
For the | Pro Forma for the | |||||||||||
Six Months Ended | Acquisition | Six Months | ||||||||||
June 30, 2008 | Pro Forma | Ended | ||||||||||
As Reported | Adjustments | June 30, 2008 | ||||||||||
(a) | (c) | |||||||||||
Revenues: |
||||||||||||
Rental and other income |
$ | 76,072,272 | $ | 25,003,282 | (d) | $ | 101,075,554 | |||||
Tenant reimbursement income |
4,044,098 | 330,735 | 4,374,833 | |||||||||
Earned income from direct financing leases |
1,117,755 | | 1,117,755 | |||||||||
Interest income on mortgages receivable |
3,554,262 | | 3,554,262 | |||||||||
Total Revenue |
84,788,387 | 25,334,017 | 110,122,404 | |||||||||
Expenses: |
||||||||||||
General and administrative |
2,079,890 | 31,417 | 2,111,307 | |||||||||
Property operating expenses |
6,140,183 | 407,172 | 6,547,355 | |||||||||
Property and asset management fees |
3,954,929 | 1,317,348 | (e)(f) | 5,272,277 | ||||||||
Depreciation |
17,992,484 | 6,373,202 | (g) | 24,365,686 | ||||||||
Amortization |
9,495,169 | 2,967,155 | (g) | 12,462,324 | ||||||||
Impairment of real estate assets |
3,550,000 | | 3,550,000 | |||||||||
Total operating expenses |
43,212,655 | 11,096,294 | 54,308,949 | |||||||||
Operating income |
41,575,732 | 14,237,723 | 55,813,455 | |||||||||
Other income (expense): |
||||||||||||
Interest income |
628,276 | | 628,276 | |||||||||
Interest expense |
(34,569,901 | ) | (10,390,567 | )(h) | (44,960,468 | ) | ||||||
Total other expense |
(33,941,625 | ) | (10,390,567 | ) | (44,332,192 | ) | ||||||
Net income |
$ | 7,634,107 | $ | 3,847,156 | $ | 11,481,263 | ||||||
Net income per common share: |
||||||||||||
Basic and diluted |
$ | 0.06 | $ | 0.07 | ||||||||
Weighted average number of common shares
outstanding: |
||||||||||||
Basic |
117,448,582 | 43,163,144 | (i) | 160,611,726 | ||||||||
Diluted |
117,451,552 | 43,163,144 | (i) | 160,614,696 | ||||||||
F-30
a. | Reflects the Companys historical balance sheet as of June 30, 2008 and the Companys historical results of operations for the six months ended June 30, 2008. | |
b. | Reflects preliminary purchase price allocations related to the following 2008 acquisitions completed subsequent to June 30, 2008: |
Completed Acquisitions | ||
The WG Rome property, the WG Columbus property, the PM McCarran property, the PM Chattanooga property, the PM Daytona Beach property, the PM Fredericksburg property, the HD Lakewood property, the WG Mobile property, the LO Chester property, BJ Ft. Lauderdale property, the Winter Garden Village property, the Cumming Town Center property, the BB Las Cruces property, the ST Angola property, the TJ Staunton property, the AT Santa Clara property, CV Columbia (Nashville) property, the CV Columbia (James Campbell), the WG Crossville property, the WG Tulsa property, the WG Jacksonville property, the WG Newton property, the CV Hamilton property, the WG Akron property, the WG Seattle property, the WG LaMarque property, the CV Mechanicsville property, the OD Laurel property, the HD Colma property, the WG Saginaw property, the WG Tulsa property, the WG Broken Arrow property, the OD London property, the PL Columbia property, the CV Atlanta property and the TS Baldwinsville property. | ||
Probable Acquisitions | ||
The WG Evansville property and the Churchs Chicken properties. | ||
c. | Reflects the pro forma results of operations for the six months ended June 30, 2008 for the following acquisitions (collectively the Pro Forma Properties): | |
Completed Acquisitions | ||
The TS Rome property, the SB Altus property, the CM Greenville property, the Millstein Audit properties, the Millstein Public Tenant properties, The FE Mishawaka property, the SB Stillwater property, the WG Oneida property, the SB Memphis property, the SB Ponca City property, the SB Kingsport property, the WG Batesville property, the TS Clovis property, the BJs Haverhill property, the WG Elmira property, the TS Carroll property, the CV Onley property, WG Hibbing property, the WG Essex property, the WG Bath property, the WG Chino Valley property, the KO Grand Forks property, the WG Albany property, the WG Rome property, the WG Columbus property, the PM Chattanooga property, the PM Daytona Beach property, the PM Fredericksburg property, the HD Lakewood property, the WG Mobile property, the LO Chester property, BJ Ft. Lauderdale property, the Winter Garden Village property, the Cumming Town Center property, the BB Las Cruces property, the ST Angola property, the TJ Staunton property, the AT Santa Clara property, CV Columbia (Nashville) property, the CV Columbia (James Campbell), the WG Crossville property, the WG Tulsa property, the WG Jacksonville property, the WG Newton property, the CV Hamilton property, the WG Akron property, the WG Seattle property, the WG LaMarque property, the CV Mechanicsville property, the OD Laurel property, the HD Colma property, the WG Saginaw property, the WG Tulsa property, the WG Broken Arrow property, the OD London property, the PL Columbia property, the CV Atlanta property and the TS Baldwinsville property were acquired during 2008. | ||
Probable Acquisitions | ||
The WG Evansville property and the Churchs Chicken properties. |
d. | Represents the straight line rental revenues and amortization of above and below market leases for the Pro Forma Properties in accordance with their respective lease agreements. | |
e. | Reflects the annualized asset management fee of 0.25% (a monthly rate of 0.02083%) of the aggregate asset value of the Pro Forma Properties which is payable to our Advisor. |
F-31
f. | Reflects the property management fee equal to 2% of gross revenues of the Pro Forma Properties which is payable to an affiliate of our Advisor. | |
g. | Represents depreciation and amortization expense for the Pro Forma Properties. Depreciation and amortization expense are based on the Companys preliminary purchase price allocation. All assets are depreciated on a straight line basis. The estimated useful lives of our assets by class are generally as follows: |
Building
|
40 years | |
Tenant improvements
|
Lesser of useful life or lease term | |
Intangible lease assets
|
Lesser of useful life or lease term |
h. | Represents interest expense associated with the debt incurred to finance the Pro Forma Properties. |
F-32
Maturity | ||||||||||||
Property | Amount | Interest Rate | Date | |||||||||
CM Greenville |
$ | 15,125,000 | 5.90 | % | 12/1/2016 | |||||||
TS Carroll |
1,213,630 | 5.87 | % | 9/30/2010 | ||||||||
CV Onley |
3,328,988 | 5.87 | % | 9/30/2010 | ||||||||
WG Hibbing |
2,548,624 | 5.87 | % | 9/30/2010 | ||||||||
WG Essex |
3,937,017 | 5.87 | % | 9/30/2010 | ||||||||
WG Bath |
2,590,065 | 5.87 | % | 9/30/2010 | ||||||||
WG Chino Valley |
3,298,040 | 5.87 | % | 9/30/2010 | ||||||||
KO Grand Forks |
5,173,099 | 5.87 | % | 9/30/2010 | ||||||||
HD Lakewood |
8,350,000 | 5.80 | % | 8/10/2031 | ||||||||
MT Winter Garden |
105,700,000 | 6.10 | % | 10/1/2015 | ||||||||
MT Cumming |
33,700,000 | 6.10 | % | 10/1/2015 | ||||||||
PL Columbia |
860,000 | 4.29 | % | 12/11/2008 | ||||||||
WG Jacksonville |
2,510,750 | 4.29 | % | 12/11/2008 | ||||||||
CV Hamilton |
1,787,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Seattle |
3,349,500 | 4.29 | % | 12/11/2008 | ||||||||
WG LaMarque |
2,277,000 | 4.29 | % | 12/11/2008 | ||||||||
CV Mechanicville |
1,290,000 | 4.29 | % | 12/11/2008 | ||||||||
OD Laurel |
1,270,000 | 4.29 | % | 12/11/2008 | ||||||||
HD Colma |
21,613,000 | 4.80 | % | 4/11/2009 | ||||||||
WG Saginaw |
2,282,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Tulsa |
1,215,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Broken Arrow |
1,127,500 | 4.29 | % | 12/11/2008 | ||||||||
OD London |
1,680,000 | 4.29 | % | 12/11/2008 | ||||||||
BB Las Cruces |
3,809,000 | 4.46 | % | 5/11/2011 | ||||||||
ST Angola |
1,999,000 | 4.46 | % | 5/11/2011 | ||||||||
TJ Staunton |
3,116,000 | 4.46 | % | 5/11/2011 | ||||||||
AT Santa Clara |
6,032,000 | 4.46 | % | 5/11/2011 | ||||||||
WG Tulsa |
1,926,000 | 4.46 | % | 5/11/2011 | ||||||||
WG Crossville |
2,753,000 | 4.46 | % | 5/11/2011 | ||||||||
CV Columbia (Nashville) |
1,715,000 | 6.44 | % | 6/11/2011 | ||||||||
CV Columbia (James Campbell) |
1,735,000 | 6.44 | % | 6/11/2011 | ||||||||
WG Newton |
2,393,000 | 5.06 | % | 10/11/2009 | ||||||||
TS Baldwinsville |
2,024,013 | 6.00 | % | 12/1/2025 |
F-33
Maturity | ||||||||
Property | Amount | Interest Rate (2) | Date | |||||
AR New Castle
|
$ | 1,063,201 | LIBOR + 1.95% | 2/1/2009 (1) | ||||
BA Delray Beach
|
10,632,014 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
MU Houston
|
13,467,218 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CM Pineville
|
7,017,129 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CM Raleigh
|
6,520,969 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CC Kennesaw
|
14,176,019 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
OD Alcoa
|
2,888,364 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
AS Lufkin
|
3,685,765 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BS Atlanta
|
1,754,282 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CV Indianapolis
|
2,675,724 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
MA Indianapolis
|
10,242,174 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BC Voorhees
|
3,189,604 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BB Wichita
|
8,080,331 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
FE Mishawaka
|
2,799,764 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
WG Oneida
|
3,170,821 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Brentwood
|
3,560,379 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Harriman
|
3,208,594 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Batesville
|
3,359,003 | LIBOR + 2.00% | 9/5/2010 | |||||
TS Clovis
|
1,931,695 | LIBOR + 2.00% | 9/5/2010 | |||||
BJ Haverhill
|
12,246,693 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Elmira
|
3,835,614 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Olivette
|
4,746,829 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Columbia
|
3,805,712 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Beverly Hills
|
2,184,620 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Waco
|
2,184,620 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Albany
|
2,791,459 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Rome
|
2,758,358 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Columbus
|
2,730,775 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Akron
|
1,900,000 | LIBOR + 2.00% | 6/6/2009 |
(1) | Partial repayment of 17% of total loan is due May 1, 2008. | |
(2) | Interest rate used in the calculation is the average of the applicable LIBOR rate for the period presented plus the applicable spread. |
i. | Represents a pro forma adjustment to the weighted average common shares outstanding to reflect all shares outstanding on June 30, 2008 as though they were issued on January 1, 2008. As the Company had insufficient capital at January 1, 2008 to acquire the respective properties which are included in the pro forma results of operations, it is necessary to assume all of the shares outstanding as of June 30, 2008 were outstanding on January 1, 2008. |
F-34
Pro Forma, | ||||||||||||||||
Total | Total | For the Year | ||||||||||||||
For the Year Ended | 2007 Acquisitions | 2008 Acquisitions | Ended | |||||||||||||
December 31, 2007 | Pro Forma | Pro Forma | December 31, | |||||||||||||
As Reported | Adjustments | Adjustments | 2007 | |||||||||||||
(a) | (b) | (c) | ||||||||||||||
Revenues: |
||||||||||||||||
Rental income |
$ | 82,491,639 | $ | 22,959,127 | (d) | $ | 42,884,998 | (d) | $ | 148,335,764 | ||||||
Tenant reimbursement income |
5,161,162 | 907,874 | 76,792 | 6,145,828 | ||||||||||||
Earned income from direct financing leases |
1,075,412 | 1,210,213 | | 2,285,625 | ||||||||||||
Interest earned on mortgage receivable |
1,113,937 | 5,007,090 | (e) | | 6,121,027 | |||||||||||
Total revenue |
89,842,150 | 30,084,304 | 42,961,790 | 162,888,244 | ||||||||||||
Expenses: |
||||||||||||||||
General and administrative |
2,011,322 | 180,916 | 102,389 | 2,294,627 | ||||||||||||
Property operating expenses |
6,466,677 | 1,003,112 | 96,216 | 7,566,005 | ||||||||||||
Property and asset management fees |
4,184,271 | 1,477,496 | (g) | 2,141,842 | (g) | 7,803,609 | ||||||||||
Depreciation |
20,460,219 | 4,956,605 | 9,870,229 | (h) | 35,287,053 | |||||||||||
Amortization |
10,022,054 | 4,221,208 | 5,165,988 | (h) | 19,409,250 | |||||||||||
Impairment of real estate assets |
5,400,000 | | | 5,400,000 | ||||||||||||
Total operating expenses |
48,544,543 | 11,839,337 | 17,376,664 | 77,760,544 | ||||||||||||
Real estate operating income |
41,297,607 | 18,244,967 | 25,585,126 | 85,127,700 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
2,258,158 | | | 2,258,158 | ||||||||||||
Interest expense |
(39,075,748 | ) | (11,554,885 | )(i) | (19,528,697 | )(j) | (70,159,330 | ) | ||||||||
Total other income (expense) |
(36,817,590 | ) | (11,554,885 | ) | (19,528,697 | ) | (67,901,172 | ) | ||||||||
Net income |
$ | 4,480,017 | $ | 6,690,082 | $ | 6,056,429 | $ | 17,226,528 | ||||||||
Net income per common share: |
||||||||||||||||
Basic and diluted |
$ | 0.07 | $ | 0.12 | ||||||||||||
Weighted average number of common shares
outstanding: |
||||||||||||||||
Basic |
60,929,996 | 32,509,789 | (k) | 50,152,911 | (k) | 143,592,696 | ||||||||||
Diluted |
60,931,316 | 32,509,789 | (k) | 50,152,911 | (k) | 143,594,016 | ||||||||||
F-35
a. | Reflects the Companys historical results of operations for the year ended December 31, 2007 | |
b. | Reflects the pro forma results of operations for the year ended December 31, 2007 for the following properties (collectively, the 2007 Acquisitions): the AS Katy Property, the AH St. John Property, the MT Omaha Property, the WG Shreveport Property, the OM Orangeburg Property, the WG Cincinnati Property, the WG Madeira Property, the WG Sharonville Property, the TS Ankeny Property, the OD Enterprise Property, the MT Fairview Heights Property, the RA Lima Property, the RA Plains Property, the SC Anderson Property, the TS Fredericksburg Property, the TS Greenfield Property, the TS Marinette Property, the TS Navasota Property, the ST Greenville Property, the WG Bridgetown Property, the WG Dallas Property, the WM New London Property, the WM Spencer Property, the TS Paw Paw Property, the TS Fairview Property, the CV Florence Property, the RA Allentown Property, the WG Bryan Property, the WG Harris County Property, the RA Fredericksburg Property, the ST Warsaw Property, the BD Rapid City Property, the BD Reading Property, the WG Gainesville Property, the CH Fredericksburg Property, the TS Baytown Property, the SB Covington Property, the SB Sedalia Property, the KG La Grange Property, the LZ Kentwood Property, the CC Mesquite Property, the TS Prior Lake Property, the ST Guntersville Property, the LO Cincinnati Property, the WG Fort Worth Property, the KO Lake Zurich Property, the CC Groveland Property, the ED Salt Lake City Property, the WG Kansas City (Linwood) Property, the WG Kansas City (Troost) Property, the WG Kansas City (63rd St) Property, the WG Kansas City (Independence) Property, the WG Topeka Property, the CNL Portfolio Properties, the CC Taunton Property, the FE Peoria Property, the FE Walker Property, the WM Bay City Property, the CC Aurora property, the HD Bedford Park Property, the WG Dallas (DeSoto) Property, the WG Richmond Property, the WM Washington Property, MT Broadview Property, the WM Borger Property, the WM Whiteville Property, the WG Brentwood Property, the SB Bowling Green Property, the WG Harriman Property, the SB Shawnee Property, the SB Oklahoma City Property, the SB Powell Property, the SB Maryville Property, the SB Seymour Property, the SB Chattanooga Property, the WG Waco Property, the WG Beverly Hills Property and the WG (Seymour) Cincinnati Property. | |
c. | Reflects the pro forma results of operations for the year ended December 31, 2007 for the following properties (collectively, the 2008 Acquisitions) : | |
Completed Acquisitions | ||
The TS Rome property, the SB Altus property, the CM Greenville property, the Millstein Audit properties, the Millstein Public Tenant properties, The FE Mishawaka property, the SB Stillwater property, the WG Oneida property, the SB Memphis property, the SB Ponca City property, the SB Kingsport property, the WG Batesville property, the TS Clovis property, the BJs Haverhill property, the WG Elmira property, the TS Carroll property, the CV Onley property, WG Hibbing property, the WG Essex property, the WG Bath property, the WG Chino Valley property, the KO Grand Forks property, the WG Albany property, the WG Rome property, the WG Columbus property, the PM McCarran property, the PM Chattanooga property, the PM Daytona Beach property, the PM Fredericksburg property, the HD Lakewood property, the WG Mobile property, the LO Chester property, BJ Ft. Lauderdale property, the Winter Garden Village property, the Cumming Town Center property, the BB Las Cruces property, the ST Angola property, the TJ Staunton property, the AT Santa Clara property, CV Columbia (Nashville) property, the CV Columbia (James Campbell), the WG Crossville property, the WG Tulsa property, the WG Jacksonville property, the WG Newton property, the CV Hamilton property, the WG Akron property, the WG Seattle property, the WG LaMarque property, the CV Mechanicsville property, the OD Laurel property, the HD Colma property, the WG Saginaw property, the WG Tulsa property, the WG Broken Arrow property, the OD London property, the PL Columbia property, the CV Atlanta property and the TS Baldwinsville property. | ||
Probable Acquisitions | ||
The WG Evansville property and the Churchs Chicken properties. | ||
d. | Represents the straight line rental revenues and amortization of above and below market leases for the Pro Forma Properties in accordance with their respective lease agreements. | |
e. | Represents a pro forma adjustment related to interest income earned on the Companys portfolio of mortgage notes that bear interest at a rate of 8.60% to 10.47%. | |
f. | Reflects the annualized asset management fee of 0.25% (a monthly rate of 0.02083%) of the aggregate asset value of the Pro Forma Properties which is payable to our Advisor. | |
g. | Reflects the property management fee equal to 2% of gross revenues of the Pro Forma Properties which is payable to an affiliate of our Advisor. |
F-36
h. | Represents depreciation and amortization expense for the Pro Forma Properties. Depreciation and amortization expense are based on the Companys preliminary purchase price allocation. All assets are depreciated on a straight line basis. The estimated useful lives of our assets by class are generally as follows: |
Building
|
40 years | |
Tenant improvements
|
Lesser of useful life or lease term | |
Intangible lease assets
|
Lesser of useful life or lease term |
i. | Represents interest expense associated with the debt incurred to finance the acquisitions of the 2007 Acquisitions. |
Maturity | ||||||||||||
Property | Amount | Interest Rate | Date | |||||||||
AS Katy |
$ | 68,250,000 | 5.606 | % | 2/1/2017 | |||||||
OD Enterprise |
1,850,000 | 6.291 | % | 3/1/2017 | ||||||||
MT Omaha |
23,400,000 | 5.534 | % | 3/1/2017 | ||||||||
TS Ankeny |
1,950,000 | 5.649 | % | 5/1/2017 | ||||||||
OM Orangeburg |
1,875,000 | 5.608 | % | 4/1/2012 | ||||||||
WG Cincinnati |
3,341,000 | 6.001 | % | 9/1/2016 | ||||||||
WG Sharonville |
2,655,000 | 5.615 | % | 4/1/2012 | ||||||||
WG Madeira |
2,876,000 | 5.702 | % | 4/1/2012 | ||||||||
RA Fredericksburg |
2,979,000 | 5.920 | % | 5/11/2017 | ||||||||
ST Warsaw |
1,850,000 | 5.733 | % | 6/1/2017 | ||||||||
WG Shreveport |
2,815,000 | 5.560 | % | 4/11/2017 | ||||||||
AH St. John |
4,420,000 | 5.650 | % | 7/11/2017 | ||||||||
TS Greenfield |
2,227,500 | 5.570 | % | 7/1/2017 | ||||||||
TS Marinette |
1,918,000 | 5.649 | % | 5/1/2017 | ||||||||
TS Paw Paw |
2,048,000 | 5.649 | % | 5/1/2017 | ||||||||
MT Fairview Heights (Lincoln Place) |
35,432,000 | 5.696 | % | 5/1/2017 | ||||||||
RA Plains |
3,380,000 | 5.599 | % | 5/1/2017 | ||||||||
TS Navasota |
2,050,000 | 5.800 | % | 5/11/2017 | ||||||||
RA Lima |
3,103,000 | 5.733 | % | 6/1/2017 | ||||||||
SC Anderson |
8,160,000 | 5.800 | % | 5/11/2017 | ||||||||
ST Greenville |
2,955,000 | 5.510 | % | 5/1/2017 | ||||||||
TS Fredericksburg |
2,031,250 | 5.536 | % | 7/1/2017 | ||||||||
WG Bridgetown |
3,043,000 | 5.800 | % | 5/11/2017 | ||||||||
WG Dallas |
2,175,000 | 5.763 | % | 6/1/2017 | ||||||||
WM New London |
1,778,000 | 5.800 | % | 5/11/2017 | ||||||||
WM Spencer |
1,377,000 | 5.800 | % | 6/11/2017 | ||||||||
CVS Florence |
1,706,250 | 5.733 | % | 6/1/2017 | ||||||||
RA Allentown |
3,615,000 | 5.783 | % | 6/1/2017 | ||||||||
WG Bryan |
4,111,000 | 5.700 | % | 6/11/2017 | ||||||||
WG Harris County |
3,673,000 | 5.700 | % | 6/11/2017 | ||||||||
TS Fairview |
1,930,500 | 5.593 | % | 6/1/2017 | ||||||||
BD Rapid City |
4,393,000 | 5.660 | % | 6/11/2017 | ||||||||
BD Reading |
4,257,000 | 5.660 | % | 6/11/2017 | ||||||||
WG Gainesville |
2,465,000 | 5.600 | % | 6/11/2017 | ||||||||
CH Fredericksburg |
1,504,000 | 5.550 | % | 6/11/2017 | ||||||||
TS Baytown |
2,251,000 | 5.600 | % | 6/11/2017 | ||||||||
AS Houston |
3,825,000 | 5.711 | % | 7/1/2017 | ||||||||
BB Evanston |
5,900,000 | 5.711 | % | 7/1/2017 | ||||||||
BB Warwick |
5,350,000 | 5.711 | % | 7/1/2017 | ||||||||
EK Mantua |
1,470,000 | 5.711 | % | 7/1/2017 |
F-37
Maturity | ||||||||||||
Property | Amount | Interest Rate | Date | |||||||||
EK Vineland |
$ | 3,500,000 | 5.711 | % | 7/1/2017 | |||||||
WC Eureka |
11,247,000 | 5.711 | % | 7/1/2017 | ||||||||
KG La Grange |
4,750,000 | 5.205 | % | 7/1/2012 | ||||||||
LZ Kentwood |
3,602,000 | 5.322 | % | 7/1/2012 | ||||||||
CC Mesquite |
4,305,000 | 5.322 | % | 7/1/2012 | ||||||||
TS Prior Lake |
3,283,250 | 5.733 | % | 7/1/2017 | ||||||||
ST Guntersville |
2,161,250 | 5.235 | % | 8/1/2012 | ||||||||
LO Cincinnati |
13,800,000 | 5.550 | % | 8/11/2017 | ||||||||
WG Fort Worth |
3,675,000 | 5.550 | % | 8/11/2017 | ||||||||
KO Lake Zurich |
9,075,000 | 5.550 | % | 8/11/2017 | ||||||||
CC Groveland |
20,250,000 | 5.550 | % | 8/11/2017 | ||||||||
EDS Salt Lake City |
18,000,000 | 5.550 | % | 8/11/2017 | ||||||||
WG Kansas City (Linwood) |
2,437,500 | 5.693 | % | 8/1/2017 | ||||||||
WG Kansas City (Troost) |
2,464,000 | 5.793 | % | 8/1/2017 | ||||||||
WG Kansas City (63rd St) |
3,034,500 | 5.793 | % | 8/1/2017 | ||||||||
WG Kansas City (Independence) |
2,990,000 | 5.693 | % | 8/1/2017 | ||||||||
WG Topeka |
1,870,000 | 5.793 | % | 8/1/2017 | ||||||||
EK Mableton |
1,197,000 | 5.674 | % | 8/1/2017 | ||||||||
EK Chattanooga |
1,920,000 | 5.674 | % | 8/1/2017 | ||||||||
AS North Richland Hills |
4,217,000 | 5.833 | % | 8/1/2017 | ||||||||
CV Amarillo |
1,741,000 | 5.833 | % | 8/1/2017 | ||||||||
AS Baton Rouge |
4,687,000 | 5.833 | % | 8/1/2017 | ||||||||
AS Houston (Breton) |
3,045,000 | 5.833 | % | 8/1/2017 | ||||||||
AS Houston (Southwest) |
4,625,000 | 5.833 | % | 8/1/2017 | ||||||||
DB Addison |
5,600,000 | 5.564 | % | 8/1/2017 | ||||||||
CV Del City |
2,631,000 | 5.824 | % | 8/1/2017 | ||||||||
CC Taunton |
4,323,000 | 5.322 | % | 8/1/2012 | ||||||||
FE Peoria |
2,080,000 | 5.604 | % | 8/1/2017 | ||||||||
FE Walker |
4,669,000 | 6.302 | % | 9/1/2012 | ||||||||
CC Aurora |
4,777,000 | 6.302 | % | 9/1/2017 | ||||||||
Broadview Village Square Chicago |
31,500,000 | 5.861 | % | 10/1/2017 |
Maturity | ||||||||
Property | Amount | Interest Rate (1) | Date | |||||
RA Fredericksburg
|
$ | 1,353,000 | LIBOR + 2% | 8/2/2007 | ||||
WG Shreveport
|
497,000 | LIBOR + 2% | 6/22/2007 | |||||
AH St. John
|
780,000 | LIBOR + 2% | 9/12/2007 | |||||
TS Navasota
|
362,000 | LIBOR + 2% | 7/18/2007 | |||||
SC Anderson
|
1,440,000 | LIBOR + 2% | 7/2/2007 | |||||
WG Bridgetown
|
537,000 | LIBOR + 2% | 8/30/2007 | |||||
WM New London
|
313,000 | LIBOR + 2% | 8/9/2007 | |||||
WM Spencer
|
243,000 | LIBOR + 2% | 8/3/2007 | |||||
WG Bryan
|
949,000 | LIBOR + 2% | 8/18/2007 | |||||
WG Harris County
|
848,000 | LIBOR + 2% | 8/18/2007 | |||||
BD Rapid City
|
776,000 | LIBOR + 2% | 9/1/2007 | |||||
BD Reading
|
752,000 | LIBOR + 2% | 9/1/2007 | |||||
WG Gainesville
|
435,000 | LIBOR + 2% | 9/1/2007 | |||||
CH Fredericksburg
|
347,000 | LIBOR + 2% | 9/5/2007 | |||||
TS Baytown
|
397,000 | LIBOR + 2% | 9/11/2007 | |||||
HD Bedford Park
|
21,250,000 | LIBOR + 1.5% | 9/13/2008 | |||||
Cracker Barrel Notes
|
36,290,338 | LIBOR + 2% | 3/31/2008 | |||||
LoJon/Car Par Notes
|
35,000,000 | LIBOR + 2.75% | 3/27/2008 |
(1) | Interest rate used in the calculation is the average of the applicable LIBOR rate for the period presented plus the applicable spread. |
F-38
j. | Represents interest expense associated with the debt incurred to finance the 2008 Acquisitions. |
Maturity | ||||||||||||
Property | Amount | Interest Rate | Date | |||||||||
CM Greenville |
$ | 15,125,000 | 5.90 | % | 12/1/2016 | |||||||
TS Carroll |
1,213,630 | 5.87 | % | 9/30/2010 | ||||||||
CV Onley |
3,328,988 | 5.87 | % | 9/30/2010 | ||||||||
WG Hibbing |
2,548,624 | 5.87 | % | 9/30/2010 | ||||||||
WG Essex |
3,937,017 | 5.87 | % | 9/30/2010 | ||||||||
WG Bath |
2,590,065 | 5.87 | % | 9/30/2010 | ||||||||
WG Chino Valley |
3,298,040 | 5.87 | % | 9/30/2010 | ||||||||
KO Grand Forks |
5,173,099 | 5.87 | % | 9/30/2010 | ||||||||
HD Lakewood |
8,350,000 | 5.80 | % | 8/10/2031 | ||||||||
MT Winter Garden |
105,700,000 | 6.10 | % | 10/1/2015 | ||||||||
MT Cumming |
33,700,000 | 6.10 | % | 10/1/2015 | ||||||||
PL Columbia |
860,000 | 4.29 | % | 12/11/2008 | ||||||||
WG Jacksonville |
2,510,750 | 4.29 | % | 12/11/2008 | ||||||||
CV Hamilton |
1,787,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Seattle |
3,349,500 | 4.29 | % | 12/11/2008 | ||||||||
WG LaMarque |
2,277,000 | 4.29 | % | 12/11/2008 | ||||||||
CV Mechanicville |
1,290,000 | 4.29 | % | 12/11/2008 | ||||||||
OD Laurel |
1,270,000 | 4.29 | % | 12/11/2008 | ||||||||
HD Colma |
21,613,000 | 4.80 | % | 4/11/2009 | ||||||||
WG Saginaw |
2,282,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Tulsa |
1,215,500 | 4.29 | % | 12/11/2008 | ||||||||
WG Broken Arrow |
1,127,500 | 4.29 | % | 12/11/2008 | ||||||||
OD London |
1,680,000 | 4.29 | % | 12/11/2008 | ||||||||
BB Las Cruces |
3,809,000 | 4.46 | % | 5/11/2011 | ||||||||
ST Angola |
1,999,000 | 4.46 | % | 5/11/2011 | ||||||||
TJ Staunton |
3,116,000 | 4.46 | % | 5/11/2011 | ||||||||
AT Santa Clara |
6,032,000 | 4.46 | % | 5/11/2011 | ||||||||
WG Tulsa |
1,926,000 | 4.46 | % | 5/11/2011 | ||||||||
WG Crossville |
2,753,000 | 4.46 | % | 5/11/2011 | ||||||||
CV Columbia (Nashville) |
1,715,000 | 6.44 | % | 6/11/2011 | ||||||||
CV Columbia (James Campbell) |
1,735,000 | 6.44 | % | 6/11/2011 | ||||||||
WG Newton |
2,393,000 | 5.06 | % | 10/11/2009 | ||||||||
TS Baldwinsville |
2,024,013 | 6.00 | % | 12/1/2025 |
F-39
Maturity | ||||||||
Property | Amount | Interest Rate (2) | Date | |||||
AR New Castle
|
$ | 1,063,201 | LIBOR + 1.95% | 2/1/2009 (1) | ||||
BA Delray Beach
|
10,632,014 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
MU Houston
|
13,467,218 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CM Pineville
|
7,017,129 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CM Raleigh
|
6,520,969 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CC Kennesaw
|
14,176,019 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
OD Alcoa
|
2,888,364 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
AS Lufkin
|
3,685,765 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BS Atlanta
|
1,754,282 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
CV Indianapolis
|
2,675,724 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
MA Indianapolis
|
10,242,174 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BC Voorhees
|
3,189,604 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
BB Wichita
|
8,080,331 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
FE Mishawaka
|
2,799,764 | LIBOR + 1.95% | 2/1/2009 (1) | |||||
WG Oneida
|
3,170,821 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Brentwood
|
3,560,379 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Harriman
|
3,208,594 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Batesville
|
3,359,003 | LIBOR + 2.00% | 9/5/2010 | |||||
TS Clovis
|
1,931,695 | LIBOR + 2.00% | 9/5/2010 | |||||
BJ Haverhill
|
12,246,693 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Elmira
|
3,835,614 | LIBOR + 2.00% | 9/5/2010 | |||||
WG Olivette
|
4,746,829 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Columbia
|
3,805,712 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Beverly Hills
|
2,184,620 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Waco
|
2,184,620 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Albany
|
2,791,459 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Rome
|
2,758,358 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Columbus
|
2,730,775 | LIBOR + 2.50% | 9/3/2011 | |||||
WG Akron
|
1,900,000 | LIBOR + 2.00% | 6/6/2009 |
(1) | Partial repayment of 17% of total loan is due May 1, 2008. | |
(2) | Interest rate used in the calculation is the average of the applicable LIBOR rate for the period presented plus the applicable spread. |
k. | Represents a pro forma adjustment to the weighted average common shares outstanding to reflect all shares outstanding on December 31, 2007 as though they were issued on January 1, 2007. As the Company had insufficient capital at January 1, 2007 to acquire the respective properties which are included in the pro forma results of operations, it is necessary to assume all of the shares outstanding as of December 31, 2007 were outstanding on January 1, 2007. |
F-40
COLE CREDIT PROPERTY TRUST II, INC. For Prospectus dated April 30, 2008 Subscription Agreement for the Purchase of Common Stock of Cole Credit Property Trust II, Inc. Please read this Subscription Agreement/Signature Page and the Terms and Conditions before signing. A-INVESTMENT Initial Subscription (Minimum $2,500) Purchase of Cole Credit Property Trust II, Inc. Shares Additional Subscription (Minimum $1,000) REGISTERED REPRESENTATIVE PURCHASE Check enclosed for Subscription Amount $ = RIA See Section G Subscription Amount Wired Total $ Invested = # of Shares x $10 x $10 Check Sent Separately A completed Subscription Agreement is required for each initial and additional investment. B TYPE OF OWNERSHIP NON-CUSTODIAL OWNERSHIP (Make Check Payable To: Wells Fargo Bank, N.A., Escrow Agent for Cole Credit Property Trust II, Inc.) (Starter checks are NOT accepted) Individual Ownership Corporate Ownership Uniform Gifts to Minors Act: State of: Joint Tenants with Right of Survivorship Partnership Ownership Custodian for Community Property LLC Ownership Pension or Profit Sharing Plan Tenants in Common TOD (Fill out TOD Form to effect designation) Others (specify) Other (specify) Taxable Exempt under § 501A Trust (Specify, i.e. Family, Living, Name of Trustee/ Other Administrator Revocable,etc.) Taxable Grantor A or B Date Trust Established Name of Trustee/Other Administrator CUSTODIAL OWNERSHIP CUSTODIAN INFORMATION Sterling Trust Company (set up fee waived and annual fees discounted) or (Make check payable to the custodian listed and send ALL paperwork directly to the custodian.) Name of Custodian or Trustee Roth IRA Traditional IRA Mailing Address Simplified Employee Pension/Trust (S.E.P) KEOGH City State Zip Pension or Profit Sharing Plan Taxable Exempt under § 501A Investors Custodian Account # Name of Trustee/Other Administrator Custodian Telephone No. Other (specify) Custodian Tax ID # C SUBSCRIBER INFORMATION Subscriber Name Mr. Mrs. Ms. Co-Subscriber Social Security # or Taxpayer ID # Social Security # (Co-Subscriber) Date of Birth/ Date of Incorporation Date of Birth (Co-Subscriber) Mailing Address Home Telephone No. City State Zip Business Telephone No. Street Address (if different from mailing address or mailing address is a P.O. Box) E-mail Address Please Indicate Citizenship Status U.S Citizen Resident Alien City State Zip Non-Resident Alien Employee or Affiliate INTERESTED PARTY (Optional) If you would like a duplicate copy of all communications the Company sends to you to be sent to an additional party (such as your accountant or financial advisor), please complete the following. Name of Interested Party Name of Firm Street Address or P.O. Box Business Telephone No. City State Zip E-mail Address (optional) (CONTINUED ON REVERSE SIDE) COLE CREDIT PROPERTY TRUST II, INC. Mail To: Cole Credit Property Trust II, Inc. c/o DST Systems, Inc. P.O. Box 219312 Kansas City, MO 64121-9312 Phone: 866-341-2653 Facsimile Telephone No. Mr. Mrs. Ms. |
B-1
APPENDIX B COLE CREDIT PROPERTY TRUST II, INC. Subscription Agreement for the Purchase of Common Stock of Cole Credit Property Trust II, Inc. For Prospectus dated April 30, 2008 A-INVESTMENT Purchase of Cole Credit Property Trust II, Inc. Shares $ = x $10 Total $ Invested = # of Shares x $10 Please read this Subscription Agreement/Signature Page and the Terms and Conditions before signing. Initial Subscription (Minimum $2,500) Additional Subscription (Minimum $1,000)REGISTERED REPRESENTATIVE PURCHASE RIA See Section G A completed Subscription Agreement is required for each initial and additional investment. Check enclosed for Subscription Amount Subscription Amount Wired Check Sent Separately B TYPE OF OWNERSHIP NON-CUSTODIAL OWNERSHIP(Make Check Payable To: Wells Fargo Bank, N.A., Escrow Agent for Cole Credit Property Trust II,Inc.) (Starter checks are NOT accepted) Individual Ownership Joint Tenants with Right of Survivorship Community Property Tenants in Common Others (specify) Trust (Specify, i.e. Family, Living, Revocable, etc.) Taxable Grantor A or B Date Trust Established Corporate Ownership Partnership Ownership LLC Ownership TOD (Fill out TOD Form to effect designation) Other (specify) Uniform Gifts to Minors Act: State of: Custodian for Pension or Profit Sharing Plan Taxable Exempt under §501A Name of Trustee/ Other Administrator Name of Trustee/Other Administrator CUSTODIAL OWNERSHIP (Make check payable to the custodian listed and send ALL paperwork directly to the custodian.) Traditional IRA Roth IRA Simplified Employee Pension/Trust (S.E.P) KEOGH Pension or Profit Sharing Plan Taxable Exempt under §501A Name of Trustee/Other Administrator Other (specify) CUSTODIAN INFORMATION Sterling Trust Company (set up fee waived and annual fees discounted) or Name of Custodian or Trustee Mailing Address City State Zip Investor s Custodian Account # Custodian Telephone No. Custodian Tax ID # C SUBSCRIBER INFORMATION Subscriber Name Mr. Mrs. Ms. Social Security # or Taxpayer ID # Date of Birth/Date of Incorporation Mailing Address City State Zip Street Address (if different from mailing address or mailing address is a P.O. Box) City State Zip Co-Subscriber Mr. Mrs. Ms. Social Security # (Co-Subscriber) Date of Birth(Co-Subscriber) Home Telephone No. Business Telephone No. E-mail Address Please Indicate Citizenship Status U.S Citizen Resident Alien Non-Resident Alien Employee or Affiliate INTERESTED PARTY (Optional) If you would like a duplicate copy of all communications the Company sends to you to be sent to an additional party (such as your accountant or financial advisor), please complete the following. Name of Interested Party Street Address or P.O. Box City State Zip E-mail Address (optional) Name of Firm Business Telephone No. Facsimile Telephone No. (CONTINUED ON REVERSE SIDE) COLE CREDIT PROPERTY TRUST II, INC. Mail To: Cole Credit Property Trust II, Inc. c/o DST Systems, Inc. P.O. Box 219312 Kansas City, MO 64121-9312 Phone: 866-341-2653 B-1 D DISTRIBUTION OPTIONS: NON-CUSTODIAL OWNERSHIP ACCOUNTS Mail to Address of Record Distribution Reinvestment Program: Subscriber elects to participate in the Distribution Reinvestment Program described in the Prospectus. Distributions directed to: Via Mail (complete information below) Via Electronic Deposit (ACH complete information below) Checking Savings Brokerage (include voided check) Name of Bank or Individual Mailing Address City State Zip Bank ABA# (for ACH only) Account # (MUST BE FILLED IN) DISTRIBUTION OPTIONS: CUSTODIAL OWNERSHIP ACCOUNTS Mail to Custodial Account Distribution Reinvestment Program: Subscriber elects to participate in the Distribution Reinvestment Program described in the Prospectus. I (we) hereby authorize Cole Credit Property Trust II, Inc. (Company) to deposit distributions from my (our) interest in stock of the Company into the account at the financial institution as indicated in this Section D. I further authorize the Company to debit this account in the event that the Company erroneously deposits additional funds to which I am not entitled, provided that such debit shall not exceed the original amount of the erroneous deposit. In the event that I withdraw funds erroneously deposited into my account before the company reverses such deposit, I agree that the Company has the right to retain any future distributions that I am entitled until the erroneously deposited amounts are recovered by the Company. This authorization is to remain in full force and effect until the Company has received written notice from me of the termination of this authorization in time to allow reasonable opportunity to act on it, or until the Company has sent me written notice of termination of this authorization. Investor s Signature E SUBSCRIBER SIGNATURES: I hereby acknowledge and/or represent (or in the case of fiduciary accounts, the person authorized to sign on my behalf) the following: Joint ALL INVESTORS MUST INITIAL A-D Owner Owner Joint I have received the Prospectus relating to the shares, wherein the terms and conditions of the offering of the shares are described b. I (we) either: (i) have a net worth (excluding home, home furnishings and automobiles) of at least $45,000 and had during the last year or estimate that I (we) will have in the current year gross income of at least $45,000; or (ii) have a net worth (excluding home, home furnishing and automobiles) of at least $150,000, or that I (we) meet such higher suitability requirements as may be required by my state of residence and set forth in the Prospectus under Suitability Standards. In the case of sales to fiduciary accounts, the suitability standards must be met by the beneficiary, the fiduciary account or by the donor or grantor who directly or indirectly supplies the funds for the purchase of the shares. c. If I am purchasing the shares for my own account; or if I am (we are) purchasing shares on behalf of a trust or other entity of which I am (we are) trustee(s) or authorized agent(s), I (we) have due authority to execute the Subscription Agreement/Signature Page and do hereby legally bind the trust or other entity of which I am (we are) trustee(s) or authorized agent(s). d. I acknowledge that the shares are not liquid. SUBSTITUTE W-9: I HEREBY CERTIFY under penalty of perjury (i) that the taxpayer identification number shown on the Subscription Agreement/Signature Page is true, correct and complete, (ii) that I am not subject to backup withholding either because I have not been notified that I am subject to back up withholding as a result of a failure to report all interest or distributions, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding, and (iii) I am a U.S. person. INITIAL E-K AS APPLICABLE Owner Owner e. For residents of Arizona, California or Tennessee only: I have either (i) a net worth of at least $225,000 or (ii) a gross annual income of at least $60,000 and a net worth of at least$60,000. e. initials initials f. For residents of Maine only: I have either (i) a net worth of at least $200,000 or (ii) a gross annual income of at least $50,000 and a net worth of at least $50,000. f. initials initials g. For residents of Kansas only: I have either (i) a net worth of at least $250,000 or (ii) a gross annual income of at least $70,000 and a net worth of at least $70,000. In addition, I acknowledge that it is recommended that I should invest no more than 10% of my liquid net worth in the Shares and the securities of other real estate investment trusts. Liquid net worth is that portion of net worth (total assets minus total liabilities) that is comprised of cash, cash equivalents and readily marketable securities. g. initials initials h. For residents of Massachusetts, Michigan, Ohio, or Pennsylvania only: I have either (i) a net worth of at least $250,000 or (ii) a gross annual income of at least $70,000 and a net worth of at least $70,000, and my maximum investment in the Company and its affiliates will not exceed 10% of my net liquid net worth. h. initials initials i. For residents of Kentucky only: I have either (a) a net worth of at least $250,000 or (b) a gross annual income of at least $70,000 and a net worth of at least $70,000 and my investment does not exceed 10% of my liquid net worth. i. initials initials j. For residents Iowa, Washington, North Carolina, New Mexico, or Oregon only: I have either (a) a net worth of at least $250,000 or (b) an annual gross income of at least $70,000 and a net worth of at least $70,000. j. initials initials k. For residents of North Dakota only: I (we) have either (a) a minimum net worth (excluding home, home furnishing and automobiles) of at least $250,000 or (b) a net minimum annual gross income of $70,000 and a minimum net worth of at least $70,000. k. initials initials NOTICE IS HEREBY GIVEN TO EACH SUBSCRIBER THAT BY EXECUTING THIS AGREEMENT YOU ARE NOT WAIVING ANY RIGHTS YOU MAY HAVE UNDER THE SECURITIES ACT OF 1933 AND ANY STATE SECURITIES LAWS. A SALE OF THE SHARES MAY NOT BE COMPLETED UNTIL AT LEAST FIVE BUSINESS DAYS AFTER THE DATE THE SUBSCRIBER RECEIVES THE PROSPECTUS. I ACKNOWLEDGE RECEIPT OF THE PROSPECTUS, WHETHER OVER THE INTERNET, ON A CD-ROM, A PAPER COPY, OR ANY OTHER DELIVERY METHOD. Signature of Investor Signature of Co-Investor, if applicable Authorized Signature (Custodian or Trustee, if applicable) Date |
B-2
For Prospectus dated April 30, 2008F BROKER/DEALER & REGISTERED REPRESENTATIVE Broker/Dealer data To be completed by selling Registered Representative (please use representative s address not home office) Mr. Mrs. Ms. Name of Registered Representative Mailing Address City State Zip Home Office Mailing Address City State Zip Name of Broker/Dealer Broker/Dealer Representative ID # Registered Representative s Telephone Registered Representative s E-mail Have you Changed Broker/Dealer (since last purchase?) Yes No Signature Registered Representative Signature Broker/Dealer (if applicable)G REGISTERED INVESTMENT ADVISOR (RIA) REGISTERED INVESTMENT ADVISOR (RIA) NO SALES COMMISSIONS ARE PAID ON THESE ACCOUNTS Check only if subscription is made through the RIA in its capacity as an RIA and not in its capacity as a Registered Representative, if applicable, whose agreement with the subscriber includes a fixed or wrap fee feature for advisory and related brokerage services. If an owner or principal or any member of the RIA firm is a FINRA licensed Registered Representative affiliated with a broker/dealer, the transaction should be conducted through that broker/dealer, not through the RIA. ELECTRONIC DELIVERY (OPTIONAL) Instead of receiving paper copies of this Prospectus, our Prospectus supplements, annual reports, proxy statements, and other stockholder communications and reports,you may elect to receive electronic delivery of stockholder communications from Cole Credit Property Trust II, Inc. If you would like to consent to electronic delivery, including pursuant to CD-ROM or electronic mail please sign and return this election with your Subscription Agreement. By signing below, I acknowledge and agree that I will not receive paper copies of any stockholder communications unless (i) I notify Cole that I am revoking this election with respect to all stockholder communications or (ii) I specifically request that Cole send a paper copy of a particular stockholder communications to me. Cole has advised me that I have the right to revoke this election at any time and receive all stockholder communications as paper copies through the mail. I also understand that I have the right to request a paper copy of any stockholder communication. By electing electronic delivery, I understand that I may incur certain costs associated with spending time on-line and downloading and printing stockholder communications and I may be required to download software to read documents delivered in electronic format. Electronic delivery also involves risks related to system or network outage that could impair my timely receipt of or access to stockholder communications. Signature Date E-mail Address COLE CREDIT PROPERTY TRUST II, INC. B-3 Mail To: Cole Credit Property Trust II, Inc. c/o DST Systems,Inc. P.O. Box 219312 Kansas City, MO 64121-9312 Phone: 866-341-2653 |
B-3
APPENDIX C COLE CREDIT PROPERTY TRUST II, INC. Additional Investment Subscription Agreement This form may be used by any current Investor (the Investor ) in Cole Credit Property Trust II, Inc. (the Company), who desires to purchase additional shares of the Company s common stock pursuant to the Additional Subscription Agreement and who purchased their shares directly from the Company. Investors who acquired shares other than through use of a Subscription Agreement (e.g., through a transfer of ownership or TOO) and who wish to make additional investments must complete the Cole Credit Property Trust II, Inc. Subscription Agreement. A INVESTMENT (a completed Subscription Agreement is required for each initial and additional investment) 1 This subscription is in the amount of $. (Minimum $1,000) B INVESTOR INFORMATION (or Trustees if applicable) CUSTODIAL OWNERSHIP (make check payable to the custodian listed and send ALL paperwork directly to the custodian) NON-CUSTODIAL OWNERSHIP (make check payable to: Wells Fargo Bank, N.A., Escrow Agent for Cole Credit Property Trust II, Inc) 1. Investor Name 0 Mr. 0 Mrs. 0 Ms. Mailing Address City State Zip Phone Business Phone Email Address Social Security or Taxpayer 10 # Date of Birth Existing CCPT III Account # Street Address (if different from mailing address or mailing address is a PO Box) City State Zip C INVESTOR(S) SIGNATURES: I (We) hereby acknowledge and/or represent (or in the case of fiduciary accounts, the person authorized to sign on my (our) behalf) the following: ___a. I (we) have received the Prospectus as supplemented to date relating to the shares, wherein the terms and conditions of the offering of the shares are described. ___b.I (we) either: (i) have a net worth (excluding home. home furnishings and automobiles) of at least $45,000 and had during the last year or estimate that I (we) will have in the current year gross income of at least $45,000; or (ii) have a net worth (excluding home, home furnishings and automobiles) of at least $150,000, or that I (we) meet such higher suitability requirements as may be required by my (our) state of residence and set forth in the Prospectus under Suitability Standards. In the case of sales to fiduciary accounts, the suitability standards must be met by the beneficiary, the fiduciary account or by the donor or grantor who directly or indirectly supplies the funds for the purchase of the shares. ___c. For residents of Arizona, California or Tennessee only: I (we) have either (I) a net worth of at least $225.000 or (ii) a gross annual income of at least $60,000 and a net worth of at least $60,000. ___d. For residents of Maine only: I (we) have either (i) a net worth of at least $200,000 or (Ii) a gross annual Income of at least $50,000 and a net worth of at least $50.000. ___e. For residents of Kansas only: I (we) have (i) a net worth of at least $250,000 or (ii) a gross annual income of at least $70.000 and a net worth of at least $70,000. In addition. I (we) acknowledge that it is recommended that I (we) should invest no more than 10% of my (our) liquid net worth in the shares and the securities of other real estate investment trusts. Liquid net worth is that portion of net worth (total assets minus total liabilities) that is comprised of cash, cash equivalent and readily marketable securities. ___f. For residents of Massachusetts, Michigan. Ohio, or Pennsylvania only: I (we) have either (i) a net worth of at least $250,000 or (ii) a gross annual income of at least $70,000 and a net worth of at least $70,000, and my (our) maximum investment in the Company and its affiliates will not exceed 10% of my (our) net worth. ___g. For residents of Kentucky only: I (we) have either (a) a net worth of at least $250,000 or (b) a gross annual income of at least $70.000 and a net worth of at least $70,000 and, unless I (we) originally purchased shares in the Company s initial public offering, my (our) investment does not exceed 10% of my (our) liquid net worth. ___h. For residents of Iowa, Washington, North Carolina. New Mexico. or Oregon only: I (we) have either (i) a net worth of at least $250,000 or (b) a gross annual income of at least $70,000 and a net worth of at least $70,000. ___i. For residents of North Dakota only: I (we) have either (a) a minimum net worth (excluding home, home furnishings and automobiles) of at least $250,000 or (b) a net minimum annual gross income of $70,000 and a minimum net worth of at least $70.000. ___j. I am (we are) purchasing the shares for my (our) own account or I am (we are) purchasing shares on behalf of a trust or other entity of which I am (we are) trustee(s) or authorized agent(s), I (we) have due authority to execute this Additional Subscription Agreement and do hereby legally bind the trust or other entity of which I am (we are) trustee(s) or authorized agent(s). ___k. I (we) acknowledge that the shares are not liquid. NOTICE IS HEREBY GIVEN TO EACH SUBSCRIBER THAT BY EXECUTING THIS AGREEMENT YOU ARE NOT WAIVING ANY RIGHTS YOU MAY HAVE UNDER THE SECURITIES ACT OF 1933 AND ANY STATE SECURITIES LAWS. A SALE OF THE SHARES MAY NOT BE COMPLETED UNTIL AT LEAST FIVE BUSINESS DAYS AFTER THE DATE THE SUBSCRIBER RECEIVES THE PROSPECTUS. I (WE) ACKNOWLEDGE RECEIPT OF THE PROSPECTUS, WHETHER OVER THE INTERNET, ON A CD-ROM, A PAPER COPY, OR ANY OTHER DELIVERY METHOD. Date Investor s Signature Co-Investor s Signature Custodian Signature Have You Changed Broker/Dealer (since last purchased? 0 No 0 Yes (If yes. complete the information below) Registered Representative (Printed Name) Signature Date à 2008 Cole Capital Advisors, Inc. All rights reserved. CCPT2-AddOn-AGMT-A1-09 (07/08) MAIL TO: REGULAR MAIL: Cole Credit Property Trust II, Inc. c/o DST, PO Box 219312, Kansas City, MO 64121-9312 OVERNIGHT: Cole Credit Property Trust II, Inc., c/o DST, 430 W. 7th St., Kansas City, MO 64105 |
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