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) May 1, 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 May 1, 2002 to provide the required financial statements of the Registrant relating to the acquisitions by the Registrant of the Agilent Atlanta Building located in Atlanta, Georgia, the BellSouth Ft. Lauderdale Building located in Ft. Lauderdale, Florida, the Experian/TRW Buildings located in Allen, Texas, and the Agilent Boston Building located in Boxborough, Massachusetts, 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:
 
    
Page
Experian/TRW Buildings
     
  
F-1
  
F-2
  
F-3
Agilent Boston Building
     
  
F-5
  
F-6
  
F-7
Wells Real Estate Investment Trust, Inc.
     
Unaudited Pro Forma Financial Statements
     
  
F-9
  
F-10
  
F-12
  
F-13

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 15, 2002
 

REPORT OF INDEPENDENT AUDITORS
 
Shareholders and Board of Directors
Wells Real Estate Investment Trust, Inc.
 
We have audited the accompanying statement of revenues over certain operating expenses of the Experian/TRW Buildings (the “Buildings”) for the year ended December 31, 2001. This statement is the responsibility of the Buildings’ management. Our responsibility is to express an opinion on this statement based on our audit.
 
We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues over certain operating expenses is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement of revenues over certain operating expenses. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statement of revenues over certain operating expenses. We believe that our audit provides a reasonable basis for our opinion.
 
The accompanying statement of revenues over certain operating expenses was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, as described in Note 2, and is not intended to be a complete presentation of the Buildings’ revenues and expenses.
 
In our opinion, the statement of revenues over certain operating expenses referred to above presents fairly, in all material respects, the revenues and certain operating expenses described in Note 2 of the Experian/TRW Buildings for the year ended December 31, 2001 in conformity with accounting principles generally accepted in the United States.
 
/s/    ERNST & YOUNG LLP
 
Atlanta, Georgia
July 11, 2002

F-1

EXPERIAN/TRW BUILDINGS
 
STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES
For the year ended December 31, 2001 and the three months ended March 31, 2002
 
    
2002
   
2001
    
(Unaudited)
     
Rental revenues
   
$
812,665
   
$
3,250,659
Operating expenses, net of reimbursements
   
 
—  
   
 
—  
    
  
Revenues over certain operating expenses
   
$
812,665
   
$
3,250,659
    
  
 
See accompanying notes.

F-2

EXPERIAN/TRW BUILDINGS
 
NOTES TO STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES
For the year ended December 31, 2001 and the three months ended March 31, 2002
 
1.    Organization and Significant Accounting Policies
 
Description of Real Estate Property Acquired
 
On May 1, 2002, the Wells Operating Partnership, L.P. (“Wells OP’) acquired the Experian/TRW Buildings from Allen Office Investment Limited Partners, Inc. (“Allen Office Investment”). Wells OP is a Delaware limited partnership formed to acquire, own, lease, operate, and manage real properties on behalf of 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.
 
Experian, Inc (“Experian”) currently occupies the entire 292,700 rentable square feet of the two two-story office buildings under a net lease agreement (the “Experian Lease”). The Experian lease was assigned to Experian in 1998; however, TRW, Inc (“TRW”) remains obligated on the Experian lease. Experian is a wholly owned subsidiary of GUS, Plc. TRW is a public entity traded on the New York Stock Exchange. Allen Office Investment’s interest in the Experian Lease was assigned to Wells OP upon acquisition of the buildings. The initial term of the Experian Lease commenced on April 15, 1993 and expires on October 15, 2010. Experian has the right to extend the Experian Lease for up to four consecutive renewal terms of five years each at a rate equal to the then current fair market rental rate. The Experian Lease is structured on a triple-net basis with the tenant directly responsible for any and all expenses. As such, Experian is required to pay all operating costs, including but not limited to, water, sewer, heating, air conditioning, lighting, property and personal insurance and property taxes.
 
Rental Revenues
 
Rental income is recognized on a straight-line basis over the term of the lease.
 
2.    Basis of Accounting
 
The accompanying statements of revenues over certain operating expenses are presented in conformity with accounting principles generally accepted in the United States and in accordance with the applicable rules and regulations of the Securities and Exchange Commission for real estate properties acquired. Accordingly, these statements exclude certain historical expenses that are not comparable to the proposed future operations of the properties such as depreciation, interest, and management fees. Therefore, these statements are not comparable to the statement of operations of the Experian/TRW Buildings after their acquisition by Wells OP.

F-3

EXPERIAN/TRW BUILDINGS
 
NOTES TO STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES—(Continued)

 
3.    Future Minimum Rental Commitments
 
Future minimum rental commitments for the years ended December 31 are as follows:
 
2002
   
$
3,449,606
2003
   
 
3,447,848
2004
   
 
3,445,954
2005
   
 
3,443,913
2006
   
 
3,441,713
Thereafter
   
 
14,392,284
    
    
$
31,621,318
    

F-4

REPORT OF INDEPENDENT AUDITORS
 
Shareholders and Board of Directors
Wells Real Estate Investment Trust, Inc.
 
We have audited the accompanying statement of revenues over certain operating expenses of the Agilent Boston Building (the “Building”) for the year ended December 31, 2001. This statement is the responsibility of the Building’s management. Our responsibility is to express an opinion on this statement based on our audit.
 
We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues over certain operating expenses is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement of revenues over certain operating expenses. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statement of revenues over certain operating expenses. We believe that our audit provides a reasonable basis for our opinion.
 
The accompanying statement of revenues over certain operating expenses was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, as described in Note 2, and is not intended to be a complete presentation of the Building’s revenues and expenses.
 
In our opinion, the statement of revenues over certain operating expenses referred to above presents fairly, in all material respects, the revenues and certain operating expenses described in Note 2 of Agilent Boston Building for the year ended December 31, 2001 in conformity with accounting principles generally accepted in the United States.
 
/s/    ERNST & YOUNG LLP
 
Atlanta, Georgia
July 11, 2002

F-5

 
AGILENT BOSTON BUILDING
 
STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES
For the year ended December 31, 2001 and the three months ended March 31, 2002
 
    
2002
   
2001
    
(Unaudited)
     
Rental revenues
   
$
981,606
   
$
1,177,928
Operating expenses, net of reimbursements
   
 
—  
   
 
—  
    
  
Revenues over certain operating expenses
   
$
981,606
   
$
1,177,928
    
  
 
See accompanying notes.

F-6

 
AGILENT BOSTON BUILDING
 
NOTES TO STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES
For the year ended December 31, 2001 and the three months ended March 31, 2002
 
1.    Organization and Significant Accounting Policies
 
Description of Real Estate Property Acquired
 
On May 3, 2002, the Wells Operating Partnership, L.P. (“Wells OP’) acquired the Agilent Boston Building from BPF Tech Central, LLC (“BPF”). Wells OP is a Delaware limited partnership formed to acquire, own, lease, operate, and manage real properties on behalf of 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.
 
Agilent Technologies, Inc (“Agilent”) currently occupies the entire 174,585 rentable square feet of the three-story office building under a net lease agreement (the “Agilent Lease”). Agilent is a public entity traded on the New York Stock Exchange. BPF’s interest in the Agilent Lease was assigned to Wells OP upon acquisition of the building. The initial term of the Agilent Lease commenced on September 12, 2001 and expires on September 30, 2011. Agilent has the right to extend the Agilent Lease for a term of five years at a rate equal to the greater of (1) the then current fair market rental rate, or (2) 75% of the annual base rent in the final year of the initial term of the Agilent lease. Under the Agilent Lease, Agilent is required to reimburse the landlord for all costs of operations, including but not limited to electricity, water, heating, air-cooling, property and personal insurance and property taxes. In addition, Agilent, at its expense, will be responsible for maintaining the property in good order, condition and repair.
 
Rental Revenues
 
Rental income is recognized on a straight-line basis over the term of the lease.
 
2.    Basis of Accounting
 
The accompanying statements of revenues over certain operating expenses are presented in conformity with accounting principles generally accepted in the United States and in accordance with the applicable rules and regulations of the Securities and Exchange Commission for real estate properties acquired. Accordingly, these statements exclude certain historical expenses that are not comparable to the proposed future operations of the property such as depreciation, interest, and management fees. Therefore, these statements are not comparable to the statement of operations of the Agilent Boston Building after its acquisition by Wells OP.

F-7

AGILENT BOSTON BUILDING
 
NOTES TO STATEMENT OF REVENUES OVER CERTAIN OPERATING EXPENSES—(Continued)

 
3.    Future Minimum Rental Commitments
 
Future minimum rental commitments for the years ended December 31 are as follows:
 
        
2002
   
$
3,578,993
2003
   
 
3,578,993
2004
   
 
3,578,993
2005
   
 
3,578,993
2006
   
 
3,753,573
Thereafter
   
 
20,317,308
    
    
$
38,386,853
    

F-8

 
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 and the Agilent Boston 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-9

 
WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA BALANCE SHEET
 
MARCH 31, 2002
(Unaudited)
 
 
    
Wells Real Estate Investment
Trust, Inc. (e)
   
Pro Forma Adjustments
     
Pro Forma
Total
       
Recent Acquisitions
     
       
Other
     
Agilent
Atlanta
     
BellSouth
Ft. Lauderdale
     
Experian/TRW
    
Agilent
Boston
     
ASSETS
                                                          
REAL ESTATE ASSETS, at cost:
                                                          
Land
   
$
94,273,542
   
$
6,658,000
(a)
   
$
1,500,000
(a)
   
$
1,100,000
 
   
$
4,000,000
(a)
  
$
3,500,000
(a)
   
$
111,710,440
           
 
267,851
(b)
   
 
61,047
(c)
   
 
44,767
(c)
   
 
162,791
(c)
  
 
142,442
(c)
       
Buildings, less accumulated depreciation of $24,814,454
   
 
563,639,005
   
 
61,724,320
(a)
   
 
13,651,643
(a)
   
 
5,791,748
(a)
   
 
31,694,725
(a)
  
 
28,343,732
(a)
   
 
710,563,062
           
 
2,483,162
(b)
   
 
555,590
(c)
   
 
235,711
(c)
   
 
1,289,902
(c)
  
 
1,153,524
(c)
       
Construction in progress
   
 
8,827,823
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
3,407,496
(a)
   
 
12,235,319
    
  
  
  
  
 
  
Total real estate assets
   
 
666,740,370
   
 
71,133,333
 
   
$
15,768,280
 
   
 
7,172,226
 
   
 
37,147,418
 
  
 
36,547,194
 
   
 
834,508,821
    
  
  
  
  
 
  
CASH AND CASH EQUIVALENTS
   
 
187,022,573
   
 
(68,382,320
)(a)
   
 
(15,151,643
)(a)
   
 
(6,891,748
)(a)
   
 
(35,694,725
)(a)
  
 
(31,843,732
)(a)
   
 
269,904,977
           
 
240,846,572
(d)
                                          
INVESTMENT IN JOINT VENTURES
   
 
76,811,543
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
76,811,543
INVESTMENT IN BONDS
   
 
22,000,000
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
22,000,000
ACCOUNTS RECEIVABLE
   
 
7,697,487
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
7,697,487
DEFERRED LEASE ACQUISITION COSTS
   
 
1,868,674
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
1,868,674
DEFERRED PROJECT COSTS
   
 
7,739,896
   
 
(2,751,013
)(b)
   
 
(616,637
)(c)
   
 
(280,478
)(c)
   
 
(1,452,693
)(c)
  
 
(1,295,966
)(c)
   
 
1,343,109
DEFERRED OFFERING COSTS
   
 
244,761
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
244,761
DUE FROM AFFILIATES
   
 
1,820,241
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
1,820,241
NOTE RECEIVABLE
   
 
0
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
0
PREPAID EXPENSES AND OTHER ASSETS
   
 
1,584,942
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
  
 
0
 
   
 
1,584,942
    
  
  
  
  
 
  
Total assets
   
$
973,530,487
   
$
240,846,572
 
   
$
0
 
   
$
0
 
   
$
0
 
  
$
3,407,496
 
   
$
1,217,784,555
    
  
  
  
  
 
  

F-10

WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA BALANCE SHEET—(Continued)
 
MARCH 31, 2002
(Unaudited)
 
           
Pro Forma Adjustments
         
    
Wells Real
Estate
Investment
Trust, Inc.(e)
     
Recent Acquisitions
         
       
Other
     
Agilent
Atlanta
     
BellSouth
Ft. Lauderdale
     
Experian/TRW
   
Agilent
Boston
     
Pro Forma
Total
  
LIABILITIES AND
SHAREHOLDERS’ EQUITY
                                                             
LIABILITIES:
                                                             
Accounts payable and accrued expenses
   
$
8,570,735
 
   
$
0
 
   
$
  0
     
$
  0
     
$
  0
   
$
3,407,496
(a)
   
$
11,978,231
 
Notes payable
   
 
11,071,586
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
11,071,586
 
Obligations under capital lease
   
 
22,000,000
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
22,000,000
 
Purchase consideration payable
   
 
0
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
0
 
Dividends payable
   
 
3,657,498
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
3,657,498
 
Due to affiliate
   
 
990,923
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
990,923
 
Deferred rental income
   
 
1,567,241
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
1,567,241
 
    
  
  
    
    
  
  
Total liabilities
   
 
47,857,983
 
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
3,407,496
 
   
 
51,265,479
 
    
  
  
    
    
  
  
COMMITMENTS AND CONTINGENCIES
                                                             
MINORITY INTEREST OF UNIT HOLDER IN OPERATING PARTNERSHIP
   
 
200,000
 
   
 
0
 
   
 
0
     
 
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
 
   
 
115,200
(d)
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
1,208,517
 
Additional paid-in capital
   
 
966,577,500
 
   
 
240,731,372
(d)
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
1,207,308,872
 
Cumulative distributions in excess of earnings
   
 
(33,555,824
)
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
(33,555,824
)
Treasury stock, at cost, 555,040 shares
   
 
(8,592,377
)
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
(8,592,377
)
Other Comprehensive Loss
   
 
(50,112
)
   
 
0
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
(50,112
)
    
  
  
    
    
  
  
Total shareholders’ equity
   
 
925,472,504
 
   
 
240,846,572
 
   
 
0
     
 
0
     
 
0
   
 
0
 
   
 
1,166,319,076
 
    
  
  
    
    
  
  
Total liabilities and shareholders’ equity
   
$
973,530,487
 
   
$
240,846,572
 
   
$
0
     
$
0
     
$
0
   
$
3,407,496
 
   
$
1,217,784,555
 
    
  
  
    
    
  
  
(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 Agilent Boston acquisition date.
(e)
 
Historical financial information derived from quarterly report on Form 10-Q
 
The accompanying notes are an integral part of this statement.

F-11

WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA STATEMENT OF INCOME
 
FOR THE YEAR ENDED DECEMBER 31, 2001
(Unaudited)
 
        
Pro Forma Adjustments
       
    
Wells Real
Estate
Investment
Trust, Inc. (f)
                
Recent Acquisitions
       
      
2001
Acquisitions
     
2002
Acquisitions
     
Other
     
Agilent
Atlanta
       
BellSouth
Ft. Lauderdale
     
Experian/
TRW
     
Agilent
Boston
     
Pro Forma
Total
REVENUES:
                                                                              
Rental income
   
$
44,204,279
  
$
11,349,076
(a)
   
$
3,652,361
(a)
   
$
1,381,050
(a)
   
$
735,944
(a)
     
$
402,430
(a)
   
$
3,419,425
(a)
   
$
1,177,928
(a)
   
$
66,322,493
Equity in income of joint ventures
   
 
3,720,959
  
 
1,111,850
(b)
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
4,832,809
Interest income
   
 
1,246,064
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
1,246,064
Take out fee
   
 
137,500
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
137,500
    
 
  
  
  
    
  
  
  
    
 
49,308,802
  
 
12,460,926
 
   
 
3,652,361
 
   
 
1,381,050
 
   
 
735,944
 
     
 
402,430
 
   
 
3,419,425
 
   
 
1,177,928
 
   
 
72,538,866
    
 
  
  
  
    
  
  
  
EXPENSES:
                                                                              
Depreciation and amortization
   
 
15,344,801
  
 
5,772,761
(c)
   
 
1,692,452
(c)
   
 
500,883
(c)
   
 
189,430
(c)
     
 
241,098
(c)
   
 
1,319,385
(c)
   
 
393,297
(c)
   
 
25,454,107
Interest
   
 
3,411,210
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
3,411,210
Operating costs, net of reimbursements
   
 
4,128,883
  
 
2,854,275
(d)
   
 
1,293,540
(d)
   
 
4,929
(d)
   
 
206,800
(d)
     
 
0
 
   
 
0
 
   
 
0
 
   
 
8,488,427
Management and leasing fees
   
 
2,507,188
  
 
510,708
(e)
   
 
164,357
(e)
   
 
62,148
(e)
   
 
33,117
(e)
     
 
18,109
(e)
   
 
153,874
(e)
   
 
53,007
(e)
   
 
3,502,508
General and administrative
   
 
973,785
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
973,785
Amortization of deferred financing costs
   
 
770,192
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
770,192
Legal and accounting
   
 
448,776
  
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
   
 
0
 
   
 
0
 
   
 
448,776
    
 
  
  
  
    
  
  
  
    
 
27,584,835
  
 
9,137,744
 
   
 
3,150,349
 
   
 
567,960
 
   
 
429,347
 
     
 
259,207
 
   
 
1,473,259
 
   
 
446,304
 
   
 
43,049,005
    
 
  
  
  
    
  
  
  
NET INCOME
   
$
21,723,967
  
$
3,323,182
 
   
$
502,012
 
   
$
813,090
 
   
$
306,597
 
     
$
143,223
 
   
$
1,946,166
 
   
$
731,624
 
   
$
29,489,861
    
 
  
  
  
    
  
  
  
EARNINGS PER SHARE, basic and diluted
   
$
0.43
                                                                   
$
0.24
    
                                                                  
WEIGHTED AVERAGE SHARES, basic and diluted
   
 
50,520,853
                                                                   
 
120,851,700
    
                                                                  
(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-12

 
WELLS REAL ESTATE INVESTMENT TRUST, INC.
 
PRO FORMA STATEMENT OF INCOME
 
FOR THE THREE MONTHS ENDED MARCH 31, 2002
(Unaudited)
 
    
Wells Real Estate
Investment Trust, Inc. (e)
   
Pro Forma Adjustments
     
Pro Forma
Total
       
2002 Acquisitions
     
Recent Acquisitions
     
          
Other
     
Agilent Atlanta
       
BellSouth
Ft. Lauderdale
       
Experian/TRW
     
Agilent
Boston
     
REVENUES:
                                                                        
Rental income
   
$
16,738,163
   
$
748,670
(a)
   
$
1,444,245
(a)
   
$
551,958
(a)
     
$
201,215
(a)
     
$
854,856
(a)
   
$
981,606
(a)
   
$
21,520,713
Equity in income of joint ventures
   
 
1,206,823
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
1,206,823
Interest income
   
 
1,113,715
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
1,113,715
Take out fee
   
 
134,102
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
134,102
    
  
  
  
    
    
  
  
    
 
19,192,803
   
 
748,670
 
   
 
1,444,245
 
   
 
551,958
 
     
 
201,215
 
     
 
854,856
 
   
 
981,606
 
   
 
23,975,353
    
  
  
  
    
    
  
  
EXPENSES:
                                                                        
Depreciation and amortization
   
 
5,744,452
   
 
201,406
(b)
   
 
626,887
(b)
   
 
142,072
(b)
     
 
60,275
(b)
     
 
329,846
(b)
   
 
294,973
(b)
   
 
7,399,911
Interest
   
 
440,001
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
440,001
Operating costs, net of reimbursements
   
 
624,698
   
 
237,375
(c)
   
 
1,178
(c)
   
 
155,100
(c)
     
 
0
 
     
 
0
 
   
 
0
 
   
 
1,018,351
Management and leasing fees
   
 
899,495
   
 
33,690
(d)
   
 
64,991
(d)
   
 
24,838
(d)
     
 
9,055
(d)
     
 
38,469
(d)
   
 
44,192
(d)
   
 
1,114,730
General and administrative
   
 
529,031
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
529,031
Amortization of deferred financing costs
   
 
175,462
   
 
0
 
   
 
0
 
   
 
0
 
     
 
0
 
     
 
0
 
   
 
0
 
   
 
175,462
    
  
  
  
    
    
  
  
    
 
8,413,139
   
 
472,471
 
   
 
693,056
 
   
 
322,010
 
     
 
69,330
 
     
 
368,315
 
   
 
339,165
 
   
 
10,677,486
    
  
  
  
    
    
  
  
NET INCOME
   
$
10,779,664
   
$
276,199
 
   
$
751,189
 
   
$
229,948
 
     
$
131,885
 
     
$
486,541
 
   
$
642,441
 
   
$
13,297,867
    
  
  
  
    
    
  
  
EARNINGS PER SHARE, basic and diluted
   
$
0.11
                                                             
$
0.11
    
                                                            
WEIGHTED AVERAGE SHARES, basic and diluted
   
 
97,996,945
                                                             
 
120,851,700
    
                                                            
(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-13