SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of Report: July 16, 2003
(Date of earliest event reported)
Inland Real Estate Corporation
(Exact name of registrant as specified in the charter)
| Maryland | 0-28382 | 36-3953261 | ||
| (State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||
2901 Butterfield Road Oak Brook, Illinois 60523 (Address of Principal Executive Offices) |
||||
(630)
218-8000
(Registrant's telephone number including area code)
N/A
(Former name or former address, if changed since last report)
Reconciliation of Financial Statements
On March 27, 2003, we filed our Annual Report on Form 10-K for the fiscal year ended December 31, 2002 ("10-K"). Under Item 6, "Selected Financial Data", we presented a table which included the financial measure "Funds Available for Distribution" or "FAD" for each of the five fiscal years in the period ended December 31, 2002. We also referred to FAD in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of the 10-K.
FAD is a non-GAAP financial measure comprised of "Funds From Operations" (or "FFO") excluding normalized recurring real estate related expenditures that we capitalize and then amortize but which are necessary to maintain our properties such as tenant improvement allowances and other non-cash items such as the impact of straight-lining rents. FFO is also a non-GAAP measure which is defined as net income computed in accordance with GAAP excluding gains (or losses) from sales of property, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures in which we hold an interest. FFO is reconciled to net income computed in accordance with GAAP in the 10-K itself.
Regulation G, recently promulgated by the Securities and Exchange Commission, requires us to reconcile any non-GAAP financial measures with the most directly comparable financial measure in accordance with GAAP. We believe that the GAAP financial measure most directly comparable to FAD is net cash provided by operating activities. We believe FAD provides a better basis than net cash provided by operating activities for measuring the cash flow generated by our properties and the cash available to pay distributions to shareholders.
| |
2002 |
2001 |
2000 |
||||||
|---|---|---|---|---|---|---|---|---|---|
| Funds Available for Distribution | $ | 64,922,048 | $ | 66,357,210 | $ | 59,670,611 | |||
Principal Amortization of debt, net of minority interest |
49,134 |
29,289 |
71,402 |
||||||
| Equity in depreciation of unconsolidated ventures | -89,981 | -154,152 | 0 | ||||||
| Charges associated with Merger | -775,451 | ||||||||
| Adjustments related to minority interest | 1,583,771 | 1,300,100 | 1,642,635 | ||||||
| Amortization and interest on unamortized loan fees | 1,279,262 | 847,737 | 775,265 | ||||||
| Non-cash charges associated with discontinued operations | 71,645 | 220,166 | 204,518 | ||||||
| Loss from operations of unconsolidated ventures | 195,500 | 229,777 | |||||||
| Provision for doubtful accounts | 710,453 | 314,377 | 589,816 | ||||||
| Donation of land | 2,575 | ||||||||
| Changes in assets and liabilities | 778,504 | 2,238,850 | -4,562,644 | ||||||
Net cash provided by operating activities |
$ |
69,500,336 |
$ |
71,385,929 |
$ |
57,616,152 |
|||
This Current Report is being filed in connection with our filing of a Registration Statement on Form S-3 with respect to an offering of our common stock under our Distribution Reinvestment Program. The Registration Statement will become effective immediately upon its filing. This Form 8-K shall not constitute an offer to sell or the solicitation of any offer to buy any such securities.
Exhibits
None.
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INLAND REAL ESTATE CORPORATION | |||
Dated: July 16, 2003 |
|||
By: |
/s/ ROBERT D. PARKS Robert D. Parks Chairman of the Board, President and Chief Executive Officer |
||
3