Prepared by R.R. Donnelley Financial -- Form 8-K/A
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
AMENDMENT NO. 1
TO
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)                         June 5, 2002            
 
Wells Real Estate Investment Trust, Inc.
(Exact name of registrant as specified in its charter)
 
Maryland
(State or other jurisdiction of incorporation)
 
                0-25739                
  
                58-2328421                
(Commission File Number)
  
(IRS Employer Identification No.)
 
6200 The Corners Parkway, Suite 250, Atlanta, Georgia 30092
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code     (770) 449-7800    
 
(Former name or former address, if changed since last report)
 

 
INFORMATION TO BE INCLUDED IN THE REPORT
 
Wells Real Estate Investment Trust, Inc. (the “Registrant”) hereby amends its Current Report on Form 8-K dated June 5, 2002 to provide the required financial statements of the Registrant relating to the acquisitions by the Registrant of the MFS Phoenix Building located in Phoenix, Arizona, and the TRW Denver Building located in Aurora, Colorado, as described in such Current Report.
 
ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS.
 
(a)     Financial Statements.    The following financial statements of the Registrant are submitted at the end of this Amendment to Current Report on Form 8-K and are filed herewith and incorporated herein by reference:
 
Wells Real Estate Investment Trust, Inc.
 
    
  
F-1
  
F-2
  
F-4
  
F-5

2

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Amendment No. 1 to Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
 
                 WELLS REAL ESTATE INVESTMENT
                  TRUST, INC. (Registrant)
 
By:
  
/s/ LEO F. WELLS, III       
   
Leo F. Wells, III
President
 
Date:    July 22, 2002

3

WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
SUMMARY OF UNAUDITED PRO FORMA FINANCIAL STATEMENTS

This pro forma information should be read in conjunction with the financial statements and notes of Wells Real Estate Investment Trust, Inc. included in its annual report on Form 10-K for the year ended December 31, 2001 and quarterly report on form 10-Q for period ended March 31, 2002. In addition, this pro forma information should be read in conjunction with the financial statements and notes of certain acquired properties included in this document.
 
The following unaudited pro forma balance sheet as of March 31, 2002 has been prepared to give effect to the second quarter 2002 acquisitions of the Novartis Atlanta Building, the Dana Corporation Buildings, the Travelers Express Denver Buildings, the Agilent Atlanta Building, the BellSouth Ft. Lauderdale Building, the Experian/TRW Buildings, the Agilent Boston Building, the TRW Denver Building and the MFS Phoenix Building (collectively, the “Recent Acquisitions”) by Wells OP as if the acquisitions occurred on March 31, 2002.
 
The following unaudited pro forma statement of income for the three months ended March 31, 2002 has been prepared to give effect to the first quarter 2002 acquisitions of the Arthur Andersen Building, the Transocean Houston Building (collectively, the “2002 Acquisitions”) and the Recent Acquisitions as if the acquisitions occurred on January 1, 2001.
 
The following unaudited pro forma statement of income for the year ended December 31, 2001 has been prepared to give effect to the 2001 acquisitions of the Comdata Building, the AmeriCredit Building, the State Street Bank Building, the IKON Buildings, the Ingram Micro Building, the Lucent Building, the ADIC Buildings, the Convergys Building, the Windy Point Buildings (collectively, the “2001 Acquisitions”), the 2002 Acquisitions and the Recent Acquisitions as if the acquisitions occurred on January 1, 2001. The Nissan Property and the Travelers Express Denver Buildings had no operations during 2001.
 
Wells OP is a Delaware limited partnership that was organized to own and operate properties on behalf of the Wells Real Estate Investment Trust, Inc., a Maryland corporation. As the sole general partner of Wells OP, Wells Real Estate Investment Trust, Inc. possesses full legal control and authority over the operations of Wells OP. Accordingly, the accounts of Wells OP are consolidated with the accompanying pro forma financials statements of Wells Real Estate Investment Trust, Inc.
 
These unaudited pro forma financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the acquisitions of the 2001 Acquisitions, 2002 Acquisitions and the Recent Acquisitions been consummated as of January 1, 2001.

F-1

WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA BALANCE SHEET
 
March 31, 2002
(Unaudited)

 
ASSETS
 
         
Pro Forma Adjustments
      
    
Wells Real Estate
Investment
Trust, Inc. (f)
  
Recent Acquisitions
      
       
Other
     
TRW Denver
    
MFS Phoenix
     
Pro Forma Total
REAL ESTATE ASSETS, at cost:
                                         
Land
   
$
94,273,542
   
$
16,758,000
(a)
   
$
1,325,000
(a)
   
$
2,500,000
(a)
   
$
115,708,783
           
 
267,851
(b)
   
 
71,599
(c)
   
 
101,744
(c)
       
           
 
411,047
(c)
                         
Buildings, less accumulated depreciation of $24,814,454
   
 
563,639,005
   
 
141,206,168
(a)
   
 
14,570,469
(a)
   
 
23,381,252
(a)
   
 
750,253,689
           
 
2,483,162
(b)
   
 
787,344
(c)
   
 
951,562
(c)
       
           
 
3,234,727
(c)
                         
Construction in progress
   
 
8,827,823
   
 
3,407,496
(a)
   
 
0
 
   
 
0
 
   
 
12,235,319
    
  
  
  
  
Total real estate assets
   
 
666,740,370
   
 
167,768,451
 
   
 
16,754,412
 
   
 
26,934,558
 
   
 
878,197,791
    
  
  
  
  
CASH AND CASH EQUIVALENTS
   
 
187,022,573
   
 
(157,964,168
)(a)
   
 
(21,105,469
)(a)
   
 
(25,881,251
)(a)
   
 
327,042,712
           
 
357,482,930
(d)
                         
           
 
(12,511,903
)(e)
                         
INVESTMENT IN JOINT VENTURES
   
 
76,811,543
   
 
0
 
   
 
0
 
   
 
0
 
   
 
76,811,543
INVESTMENT IN BONDS
   
 
22,000,000
   
 
0
 
   
 
0
 
   
 
0
 
   
 
22,000,000
ACCOUNTS RECEIVABLE
   
 
7,697,487
   
 
0
 
   
 
0
 
   
 
0
 
   
 
7,697,487
DEFERRED LEASE ACQUISITION COSTS
   
 
1,868,674
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,868,674
DEFERRED PROJECT COSTS
   
 
7,739,896
   
 
(2,751,013
)(b)
   
 
(858,943
)(c)
   
 
(1,053,307
)(c)
   
 
11,942,762
           
 
(3,645,774
)(c)
                         
           
 
12,511,903
(e)
                         
DEFERRED OFFERING COSTS
   
 
244,761
   
 
0
 
   
 
0
 
   
 
0
 
   
 
244,761
DUE FROM AFFILIATES
   
 
1,820,241
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,820,241
NOTE RECEIVABLE
   
 
0
   
 
0
 
   
 
5,210,000
(a)
   
 
0
 
   
 
5,210,000
PREPAID EXPENSES AND OTHER ASSETS
   
 
1,584,942
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,584,942
    
  
  
  
  
Total assets
   
$
973,530,487
   
$
360,890,426
 
   
$
0
 
   
$
0
 
   
$
1,334,420,913
    
  
  
  
  

F-2

 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
           
Pro Forma Adjustments
       
           
Recent Acquisitions
       
    
Wells Real Estate Investment Trust, Inc. (f)
     
Other
     
TRW Denver
   
MFS Phoenix
   
Pro Forma Total
  
LIABILITIES:
                                         
Accounts payable and accrued expenses
   
$
8,570,735
 
   
$
3,407,496
(a)
   
$
    0
   
$
    0
   
$
11,978,231
 
Notes payable
   
 
11,071,586
 
   
 
0
 
   
 
0
   
 
0
   
 
11,071,586
 
Obligations under capital lease
   
 
22,000,000
 
   
 
0
 
   
 
0
   
 
0
   
 
22,000,000
 
Purchase consideration payable
   
 
0
 
   
 
0
 
   
 
0
   
 
0
   
 
0
 
Dividends payable
   
 
3,657,498
 
   
 
0
 
   
 
0
   
 
0
   
 
3,657,498
 
Due to affiliate
   
 
990,923
 
   
 
0
 
   
 
0
   
 
0
   
 
990,923
 
Deferred rental income
   
 
1,567,241
 
   
 
0
 
   
 
0
   
 
0
   
 
1,567,241
 
Total liabilities
   
 
47,857,983
 
   
 
3,407,496
 
   
 
0
   
 
0
   
 
51,265,479
 
COMMITMENTS AND CONTINGENCIES
                                         
MINORITY INTEREST OF UNIT HOLDER IN OPERATING PARTNERSHIP
   
 
200,000
 
   
 
0
 
   
 
0
   
 
0
   
 
200,000
 
SHAREHOLDERS’ EQUITY:
                                         
Common shares, $.01 par value; 125,000,000 shares authorized, 109,331,764 shares issued and 108,472,526 outstanding at
March 31, 2002
   
 
1,093,317
 
   
 
231,839
(d)
   
 
0
   
 
0
   
 
1,325,156
 
Additional paid–in capital
   
 
966,577,500
 
   
 
357,251,091
(d)
   
 
0
   
 
0
   
 
1,323,828,591
 
Cumulative distributions in excess of earnings
   
 
(33,555,824
)
   
 
0
 
   
 
0
   
 
0
   
 
(33,555,824
)
Treasury stock, at cost, 555,040 shares
   
 
(8,592,377
)
   
 
0
 
   
 
0
   
 
0
   
 
(8,592,377
)
Other Comprehensive Loss
   
 
(50,112
)
   
 
0
 
   
 
0
   
 
0
   
 
(50,112
)
Total shareholders’ equity
   
 
925,472,504
 
   
 
357,482,930
 
   
 
0
   
 
0
   
 
1,282,955,434
 
Total liabilities and shareholders’ equity
   
$
973,530,487
 
   
$
360,890,426
 
   
$
0
   
$
0
   
$
1,334,420,913
 
 
 
(a)
 
Reflects Wells Real Estate Investment Trust, Inc.’s purchase price for the land, building and liabilities assumed.
 
 
(b)
 
Reflects deferred project costs applied to the land and building at approximately 4.02% of the purchase price.
 
 
(c)
 
Reflects deferred project costs applied to the land and building at approximately 4.07% of the purchase price.
 
 
(d)
 
Reflects capital raised through issuance of additional shares subsequent to March 31, 2002 through MFS Phoenix acquisition date.
 
 
(e)
 
Reflects deferred project costs capitalized as a result of additional capital raised described in note (d) above.
 
 
(f)
 
Historical financial information derived from quarterly report on Form 10-Q
 
The accompanying notes are an integral part of this statement.

F-3

 
WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2001
(Unaudited)
 
         
Pro Forma Adjustments
       
                       
Recent Acquisitions
       
    
Wells Real Estate Investment Trust, Inc. (f)
   
2001 Acquisitions
     
2002 Acquisitions
     
Other
     
TRW Denver
     
MFS Phoenix
     
Pro Forma Total
REVENUES:
                                                           
Rental income
   
$
44,204,279
   
$
11,349,076
(a)
   
$
3,652,361
(a)
   
$
7,116,777
(a)
   
$
1,672,067
(a)
   
$
2,405,226
(a)
   
$
70,399,786
Equity in income of joint ventures
   
 
3,720,959
   
 
1,111,850
(b)
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
4,832,809
Interest income
   
 
1,246,064
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,246,064
Take out fee
   
 
137,500
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
137,500
    
  
  
  
  
  
  
    
 
49,308,802
   
 
12,460,926
 
   
 
3,652,361
 
   
 
7,116,777
 
   
 
1,672,067
 
   
 
2,405,226
 
   
 
76,616,159
    
  
  
  
  
  
  
EXPENSES:
                                                           
Depreciation and amortization
   
 
15,344,801
   
 
5,772,761
(c)
   
 
1,692,452
(c)
   
 
2,644,093
(c)
   
 
614,282
(c)
   
 
405,547
(c)
   
 
26,473,936
Interest
   
 
3,411,210
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
3,411,210
Operating costs, net of reimbursements
   
 
4,128,883
   
 
2,854,275
(d)
   
 
1,293,540
(d)
   
 
211,729
(d)
   
 
0
 
   
 
0
 
   
 
8,488,427
Management and leasing fees
   
 
2,507,188
   
 
510,708
(e)
   
 
164,357
(e)
   
 
320,255
(e)
   
 
75,243
(e)
   
 
108,235
(e)
   
 
3,685,986
General and administrative
   
 
973,785
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
973,785
Amortization of deferred financing costs
   
 
770,192
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
770,192
Legal and accounting
   
 
448,776
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
448,776
    
  
  
  
  
  
  
    
 
27,584,835
   
 
9,137,744
 
   
 
3,150,349
 
   
 
3,176,077
 
   
 
689,525
 
   
 
513,782
 
   
 
44,252,312
    
  
  
  
  
  
  
NET INCOME
   
$
21,723,967
   
$
3,323,182
 
   
$
502,012
 
   
$
3,940,700
 
   
$
982,542
 
   
$
1,891,444
 
   
$
32,363,847
    
  
  
  
  
  
  
EARNINGS PER SHARE, basic and diluted
   
$
0.43
                                                
$
0.24
    
                                               
WEIGHTED AVERAGE SHARES, basic and diluted
   
 
50,520,853
                                                
 
132,515,600
    
                                               
 
(a)
 
Rental income is recognized on a straight–line basis.
 
(b)
 
Reflects Wells Real Estate Investment Trust, Inc.’s equity in income of Wells XII-REIT Joint Venture related to the acquisition of the Comdata Building and equity in income of Wells XIII-REIT Joint Venture related to the acquisition of the AmeriCredit Building and the ADIC Building.
 
(c)
 
Depreciation expense on the buildings is recognized using the straight–line method and a 25-year life.
 
(d)
 
Consists of nonreimbursable operating expenses.
 
(e)
 
Management and leasing fees are calculated at 4.5% of rental income.
 
(f)
 
Historical financial information derived from annual report on Form 10-K.
 
The accompanying notes are an integral part of this statement.

F-4

 
WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(Unaudited)
 
         
Pro Forma Adjustments
       
                
Recent Acquisitions
       
    
Wells Real Estate Investment Trust, Inc. (e)
   
2002 Acquisitions
     
Other
     
TRW Denver
     
MFS Phoenix
     
Pro Forma Total
REVENUES:
                                                  
Rental income
   
$
16,738,163
   
$
748,670
(a)
   
$
4,033,880
(a)
   
$
418,017
(a)
   
$
601,307
(a)
   
$
22,540,037
Equity in income of joint ventures
   
 
1,206,823
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,206,823
Interest income
   
 
1,113,715
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
1,113,715
Take out fee
   
 
134,102
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
134,102
    
  
  
  
  
  
    
 
19,192,803
   
 
748,670
 
   
 
4,033,880
 
   
 
418,017
 
   
 
601,307
 
   
 
24,994,677
    
  
  
  
  
  
EXPENSES:
                                                  
Depreciation and amortization
   
 
5,744,452
   
 
201,406
(b)
   
 
1,454,053
(b)
   
 
153,570
(b)
   
 
243,328
(b)
   
 
7,796,809
Interest
   
 
440,001
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
440,001
Operating costs, net of reimbursements
   
 
624,698
   
 
237,375
(c)
   
 
156,278
(c)
   
 
0
 
   
 
0
 
   
 
1,018,351
Management and leasing fees
   
 
899,495
   
 
33,690
(d)
   
 
181,545
(d)
   
 
18,811
(d)
   
 
27,059
(d)
   
 
1,160,600
General and administrative
   
 
529,031
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
529,031
Amortization of deferred financing costs
   
 
175,462
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
175,462
    
  
  
  
  
  
    
 
8,413,139
   
 
472,471
 
   
 
1,791,876
 
   
 
172,381
 
   
 
270,387
 
   
 
11,120,254
    
  
  
  
  
  
NET INCOME
   
$
10,779,664
   
$
276,199
 
   
$
2,242,004
 
   
$
245,636
 
   
$
330,920
 
   
$
13,874,423
    
  
  
  
  
  
EARNINGS PER SHARE, basic and diluted
   
$
0.11
                                       
$
0.10
    
                                      
WEIGHTED AVERAGE SHARES, basic and diluted
   
 
97,996,945
                                       
 
132,515,600
    
                                      
 
(a)
 
Rental income is recognized on a straight–line basis.
 
(b)
 
Depreciation expense on the buildings is recognized using the straight–line method and a 25-year life.
 
(c)
 
Consists of nonreimbursable operating expenses.
 
(d)
 
Management and leasing fees are calculated at 4.5% of rental income.
 
(e)
 
Historical financial information derived from quarterly report on Form 10-Q
 
The accompanying notes are an integral part of this statement.

F-5