Florida East Coast Industries, Inc. Supplemental Real Estate Information Package (June 30, 2002)

Summary

This document provides investors with detailed information about the real estate holdings of Florida East Coast Industries, Inc. as of June 30, 2002. It outlines the company's property portfolio, including occupancy rates, lease expirations, development pipeline, and land held for future development or sale. The package is intended for informational purposes only and does not create any binding obligations. It also includes forward-looking statements and cautions investors about potential risks and uncertainties related to the real estate market and company operations.

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EX-1.1 3 g77423kexv1w1.txt SUPPLEMENTAL REAL ESTATE INFORMATION PACKAGE [Photo] Florida East Coast Industries, Inc. Supplemental Real Estate Information Package June 30, 2002 Florida East Coast Industries, Inc. Supplemental Real Estate Information Package INDEX ----- Introduction ------------ Introduction and forward-looking statements 1 Flagler Operating Property Information -------------------------------------- Detail of property portfolio, including occupancy and EBITDA 3 Lease expirations 4 Real estate development pipeline 5 Land Held for Development ------------------------- Land held for development 7 Information and estimates for major developments 8 Surplus Lands ------------- Surplus land currently on the market for sale or under contract 10 Introduction ------------ Purpose - ------- The purpose of this package is to provide investors with additional information about the Company's real estate holdings. This document provides information as of the date hereof. The Company may from time to time supply updated or additional information in the future but undertakes no obligation to do so and investors are cautioned that the information provided herein speaks only as of June 30, 2002. About Florida East Coast Industries, Inc. - ----------------------------------------- Florida East Coast Industries, Inc., headquartered in St. Augustine, Fla., conducts operations through four wholly owned subsidiaries, Flagler Development Company (Flagler), Florida East Coast Railway, L.L.C. (FECR), Florida Express Carriers, Inc. (FLX), and EPIK Communications Incorporated (EPIK). Flagler owns, develops, leases and manages 7.2 million square feet of commercial and industrial space and owns approximately 966 acres of entitled land and 13,300 acres of additional Florida properties. FECR is a regional freight railroad that operates 351 miles of main line track from Jacksonville to Miami. FLX provides truckload transportation, particularly intermodal service, in conjunction with FECR. EPIK, based in Orlando, Fla., is a carriers' carrier that provides bandwidth capacity, dark fiber leases and collocation services to telecommunication providers. For more information, visit the Company's website at http://www.feci.com. About Flagler Development Company - --------------------------------- A subsidiary of Florida East Coast Industries, headquartered in Jacksonville, Fla., Flagler owns, develops, leases and manages approximately 7.2 million square feet of office and industrial space, including 735,000 square feet in joint ventures with Duke Realty Corporation and 224,000 square feet in development phase. Flagler's space consists of Class-A office and industrial properties, primarily in Jacksonville, Orlando, Ft. Lauderdale and Miami. In addition, Flagler owns approximately 966 acres of entitled land in Florida which is available for development of up to an additional 14.5 million square feet and Flagler owns approximately 13,300 acres of other Florida properties. About Florida East Coast Railway's Lands - ---------------------------------------- In addition to Flagler's realty holdings, Florida East Coast Railway has land holdings of 1,238 acres which are redundant to the Railway's operating requirements. Over time, the Railway has been reconfiguring its operations to improve efficiency of asset utilization and free up lands for higher and better uses. This process is continuing. Contacts: Investors: Bradley D. Lehan ###-###-#### Media: Husein A. Cumber ###-###-#### Forward-Looking Statements - -------------------------- This Information Package contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include the Company's present expectations or beliefs concerning future events. The Company cautions that such statements are necessarily based on certain assumptions, which are subject to risks and uncertainties that could cause actual results to materially differ from those contained in these forward-looking statements. Important factors that could cause such differences include, but are not limited to, the Company's future timing and costs of pursuing its development projects and the timing and amounts of resultant future rental revenues; changes in the real estate market or in general economic conditions, including the possibility of a general economic slowdown or recession; product and geographical concentration; industry competition; changes in interest rates and capital markets; discretionary government decisions affecting the use of land, and delays resulting therefrom; changes in the management team; changes in tax laws; weather conditions and other natural occurrences that may affect construction or cause damage to assets; liability for environmental remediation and changes in environmental laws and regulations; failure or inability of third parties to fulfill their commitments or to perform their obligations under agreements; failure of parties to reach agreement on definitive terms or to close transactions; costs and availability of land and construction materials; limitations on and challenges to title of property; risks related to the financial strength of joint venture projects; changes in policies and practices or organized labor groups; shortages in electrical power; and other risks inherent in the real estate business. Further information on these and other risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's most recently filed Forms 10-K and 10-Q. The Company assumes no obligations to update the information contained in this Information Package, which speaks only as of its date. 1 Flagler Operating Property Information [Photo of Gran Park at SouthPark] [Photo of Deerwood North] Gran Park at SouthPark Deerwood North [Photo of Beacon Pointe] [Photo of Gran Park at Beacon Station] Beacon Pointe Gran Park at Beacon Station 2 FLAGLER DEVELOPMENT COMPANY OPERATING PROPERTIES
EBITDA ($) Total 6/30/2002 6/30/2002 3 months Year Rentable Occupied Occupied ended Building Name Built Location Type SF SF % 6/30/2002 ------------- ----- -------- ---- -------- --------- -------- --------- same store duPont Center I 1987 Jacksonville Office 80,000 49,021 61% 109,361 same store duPont Center II 1988 Jacksonville Office 80,000 77,703 97% 220,555 - ---------------------------------------------------------------------------------------------------------------------------------- 2 duPont Center 160,000 126,724 79% 329,916 - ---------------------------------------------------------------------------------------------------------------------------------- same store Deerwood South Office Building 1 1996 Jacksonville Office 134,235 110,859 83% 298,299 same store Deerwood South Office Building 2 1996 Jacksonville Office 124,750 118,933 95% 346,547 same store Deerwood South Office Building 3 1996 Jacksonville Office 126,228 104,410 83% 473,495 same store Deerwood South Office Building 4 1998 Jacksonville Office 134,008 131,084 98% 430,927 same store Deerwood North Office Building 1 1999 Jacksonville Office 135,283 128,528 95% 412,269 Deerwood North Office Building 2 2001 Jacksonville Office 135,000 29,403 22% 61,413 - ---------------------------------------------------------------------------------------------------------------------------------- 6 Gran Park at Deerwood 789,504 623,217 79% 2,022,950 - ---------------------------------------------------------------------------------------------------------------------------------- same store Gran Park at Jacksonville Office 1 1999 Jacksonville Office 123,298 123,298 100% 435,586 same store Gran Park at Jacksonville OSW 1 1997 Jacksonville Office/Showroom/Warehouse 147,553 147,553 100% 374,792 same store Gran Park at Jacksonville OSW 2 1998 Jacksonville Office/Showroom/Warehouse 61,643 61,643 100% 166,924 same store Gran Park at Jacksonville OSW 3 1998 Jacksonville Office/Showroom/Warehouse 134,085 134,085 100% 290,070 same store Gran Park at Jacksonville OSW 4 1999 Jacksonville Office/Showroom/Warehouse 97,183 83,760 86% 205,959 same store Gran Park at Jacksonville FLW 1 1997 Jacksonville Front Load Warehouse 98,800 98,800 100% 105,878 same store Gran Park at Jacksonville RB 1 1997 Jacksonville Rail Building 107,800 57,400 53% 52,115 - ---------------------------------------------------------------------------------------------------------------------------------- 7 Gran Park at Jacksonville 770,362 706,539 92% 1,631,324 - ---------------------------------------------------------------------------------------------------------------------------------- same store Avenues Office Building 1 1992 Jacksonville Office 80,018 54,173 68% 134,395 same store Avenues Office Building 2 1993 Jacksonville Office 80,614 55,566 69% 134,449 same store Avenues Office Building 3 1995 Jacksonville Office 80,936 77,220 95% 215,019 same store Avenues OW 1, Bldg 400, Barnett Tech 1994 Jacksonville Office/Warehouse 147,231 112,231 76% 103,567 same store Avenues OW 2, Bldg 600, Harte-Hanks 1996 Jacksonville Office/Warehouse 154,326 146,034 95% 182,096 same store Avenues OSW 1, Bldg 100 1992 Jacksonville Office/Showroom/Warehouse 40,571 6,695 17% (10,833) same store Avenues OSW 2, Bldg ###-###-#### Jacksonville Office/Showroom/Warehouse 61,911 61,911 100% 175,968 same store Avenues OSW 3, Bldg ###-###-#### Jacksonville Office/Showroom/Warehouse 70,126 59,071 84% 89,370 - --------------------------------------------------------------------------------------------------------------------------------- 8 Gran Park at the Avenues 715,733 572,901 80% 1,024,031 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- 23 TOTAL NORTH REGION 2,435,599 2,029,381 83% 5,008,221 - ---------------------------------------------------------------------------------------------------------------------------------- same store Gran Park at SouthPark- Office 1 1998 Orlando Office 144,931 135,462 93% 537,521 same store Gran Park at SouthPark - Office 2 1999 Orlando Office 144,852 140,980 97% 602,500 Gran Park at SouthPark - Office 3 2001 Orlando Office 182,613 107,495 59% 329,917 same store Gran Park at SouthPark - Office 4 2000 Orlando Office 98,384 92,628 94% 289,620 same store Gran Park at SouthPark - OSW 1 1998 Orlando Office/Showroom/Warehouse 131,607 108,591 83% 307,048 same store Gran Park at SouthPark - OSW 2 2000 Orlando Office/Showroom/Warehouse 133,231 76,221 57% 185,381 - ---------------------------------------------------------------------------------------------------------------------------------- 6 Gran Park at SouthPark I 835,618 661,377 79% 2,251,987 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- 6 TOTAL CENTRAL REGION 835,618 661,377 79% 2,251,987 - ---------------------------------------------------------------------------------------------------------------------------------- same store Gran Park at Beacon Station Office 1 - U Planters 2000 Miami Office 101,000 101,000 100% 289,167 same store Gran Park at Beacon Station OW 1 1990 Miami Office/Warehouse 109,216 54,455 50% 39,932 same store Gran Park at Beacon Station OW 2 1991 Miami Office/Warehouse 109,900 109,900 100% 117,183 same store Gran Park at Beacon Station OW 3 1992 Miami Office/Warehouse 80,860 80,860 100% 76,026 same store Gran Park at Beacon Station OW 4 1993 Miami Office/Warehouse 81,153 81,153 100% 100,334 same store Gran Park at Beacon Station OW 5 1996 Miami Office/Warehouse 103,200 40,876 40% 5,264 same store Gran Park at Beacon Station OSW 1 1989 Miami Office/Showroom/Warehouse 48,886 48,886 100% 55,131 same store Gran Park at Beacon Station OSW 2 1989 Miami Office/Showroom/Warehouse 79,840 79,840 100% 105,070 same store Gran Park at Beacon Station OSW 3 1990 Miami Office/Showroom/Warehouse 79,782 79,782 100% 115,719 same store Gran Park at Beacon Station OSW 4 1992 Miami Office/Showroom/Warehouse 79,670 79,670 100% 104,705 same store Gran Park at Beacon Station OSW 5 1994 Miami Office/Showroom/Warehouse 80,200 80,200 100% 97,419 same store Gran Park at Beacon Station FLW 1 1991 Miami Front Load Warehouse 119,333 119,333 100% 115,152 same store Gran Park at Beacon Station FLW 2 1992 Miami Front Load Warehouse 138,600 138,600 100% 143,844 same store Gran Park at Beacon Station FLW 3 1993 Miami Front Load Warehouse 138,600 138,600 100% 162,643 same store Gran Park at Beacon Station FLW 4 1993 Miami Front Load Warehouse 90,735 90,735 100% 94,854 same store Gran Park at Beacon Station FLW 5 1994 Miami Front Load Warehouse 119,400 119,400 100% 188,581 same store Gran Park at Beacon Station FLW 6 1995 Miami Front Load Warehouse 91,393 25,393 28% (13,670) same store Gran Park at Beacon Station FLW 7 1995 Miami Front Load Warehouse 91,393 91,393 100% 104,563 same store Gran Park at Beacon Station DFLW 1 1993 Miami Double Front Load Warehouse 238,530 211,530 89% 204,822 same store Gran Park at Beacon Station RB 1 1989 Miami Rail Building 69,680 69,680 100% 82,245 same store Gran Park at Beacon Station RB 2 1991 Miami Rail Building 70,000 70,000 100% 72,400 same store Gran Park at Beacon Station RB 3 1993 Miami Rail Building 119,400 77,100 65% 69,084 same store Gran Park at Beacon Station RB 4 1994 Miami Rail Building 138,600 138,600 100% 137,559 same store Gran Park at Beacon Station SC 1 1994 Miami Service Center 38,956 38,956 100% 99,459 same store Gran Park at Beacon Station Phase II - OW 1 1997 Miami Office/Warehouse 103,200 56,960 55% 78,678 Gran Park at Beacon Station Phase II - OW 11 CAT 2001 Miami Office/Warehouse 300,606 300,606 100% 459,782 Gran Park at Beacon Station Phase II - OW 26 2001 Miami Office/Warehouse 201,000 73,942 37% 101,856 - ---------------------------------------------------------------------------------------------------------------------------------- 27 Gran Park at Beacon Station 3,023,133 2,597,450 86% 3,207,802 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- 27 TOTAL SOUTH REGION 3,023,133 2,597,450 86% 3,207,802 - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- 56 TOTAL 100% OWNED OPERATING PROPERTIES 6,294,350 5,288,208 84% 10,468,010* - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- 52 TOTAL SAME STORE PROPERTIES ONLY 5,475,131 4,776,762 87% 9,515,042 - ---------------------------------------------------------------------------------------------------------------------------------- OPERATING PROPERTIES - PARTNERSHIPS Gran Park at Beacon Station - 22 1999 Miami Office/Warehouse 179,832 179,832 100% 122,189 Gran Park at Beacon Station - 23 1999 Miami Office/Warehouse 179,832 179,832 100% 102,411 Gran Park at Beacon Station - 24 1999 Miami Office/Warehouse 179,672 179,672 100% 115,510 Weston at Beacon Pointe - Office 1 1999 Ft Lauderdale Office 98,000 92,226 94% 217,884 Weston at Beacon Pointe - Office 2 2001 Ft Lauderdale Office 97,178 44,408 46% (36,923) - ---------------------------------------------------------------------------------------------------------------------------------- 5 TOTAL 50/50 OWNED PROPERTIES 734,514 675,970 92% 521,072 - 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Same store properties include all properties that were in service during both 2001 and 2002. Occupied SF represent all leases that have been executed and have commenced. It does not include leases that have been executed but have not commenced. *For purposes of this presentation, a lease termination settlement of $1.6M has been excluded to reflect the recurring rental operations. Including this termination settlement, EBITDA from Flagler operating property rents for the 3 months ended June 30, 2002 was $12.1M as presented on FECI's Form 10-Q for the quarter ended June 30, 2002. The Company holds certain investments in realty partnerships for the purpose of developing, leasing and managing real estate with an unaffiliated partner. The Company holds an undivided 50% equity ownership interest in each of these joint ventures. Rentable SF and occupied SF for operating properties held in the partnership are shown at 100%. EBITDA for partnership properties is reflected at 50% of total project EBITDA reflecting Flagler's ownership interest. EBITDA is not a GAAP measurement. It is defined as operating profit before interest, taxes, depreciation and amortization. 3 FLAGLER DEVELOPMENT COMPANY Lease Expirations (square feet) 100% Owned Properties - -------------------------------------------------------------------------------- Expirations North Central South All Regions Time Frame Region Region Region Total - -------------------------------------------------------------------------------- 07/01/02 - 12/31/02 296,400 5,922 166,676 468,998 01/01/03 - 12/31/03 312,642 62,881 704,455 1,079,978 01/01/04 - 12/31/04 342,588 12,720 275,177 630,485 01/01/05 - 12/31/05 188,396 126,400 406,329 721,125 01/01/06 - 12/31/06 195,923 24,935 397,309 618,167 01/01/07 - 12/31/07 121,698 59,023 87,412 268,133 01/01/08 - 12/31/16 551,706 369,496 501,750 1,422,952 - -------------------------------------------------------------------------------- Total Square Feet 2,009,353 661,377 2,539,108 5,209,838 * - -------------------------------------------------------------------------------- * Difference between total expiring and total occupied represents leases that are currently in short-term extension status. Partnership Properties - -------------------------------------------------------------------------------- Expirations North Central South All Regions Time Frame Region Region Region Total - -------------------------------------------------------------------------------- 07/01/02 - 12/31/02 - - 4,758 4,758 01/01/03 - 12/31/03 - - - - 01/01/04 - 12/31/04 - - 135,643 135,643 01/01/05 - 12/31/05 - - 213,319 213,319 01/01/06 - 12/31/06 - - 251,874 251,874 01/01/07 - 12/31/07 - - 27,090 27,090 01/01/08 - 12/31/16 - - 43,286 43,286 - -------------------------------------------------------------------------------- Total Square Feet - - 675,970 675,970 - -------------------------------------------------------------------------------- 4 REAL ESTATE DEVELOPMENT PIPELINE
Actual or Expected % Net Rentable Certificate Leased/ Development Projects - as of 6/30/02 Square Feet of Occupancy Pre-leased ----------- ------------ ---------- Status Ownership % - ------ ----------- 1 Lease-Up 100% Beacon Station at Gran Park Miami Retail 42,800 Aug-01 17% 2 Lease-Up 100% Port Everglades Building 1 84,000 Nov-01 0% 3 Lease-Up 50/50 JV Beacon Pointe at Weston 3 - Ft. Laud - (50/50 - Flagler/Weeks) 97,000 Jan-02 0% -------------------------------------------------------------------------- Projects in Lease-Up Period 223,800 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Projects under Construction - -------------------------------------------------------------------------- 4 Pre-development 100% Beacon Station at Gran Park Miami OW 25 160,211 TBD 0% 5 Pre-development 100% Beacon Station at Gran Park Miami OW 27 200,709 TBD 0% 6 Pre-development 100% Gran Park at SouthPark Building 700 93,400 TBD 0% 7 Pre-development 100% Port Everglades Building 2 136,230 TBD 0% -------------------------------------------------------------------------- Projects in Pre-development 590,550 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Total Development and Pre-development Projects 814,350 --------------------------------------------------------------------------
Lease-Up Period is defined as a maximum of 12-months from the date the property is issued a certificate of occupancy and during which time certain costs continue to be capitalized. Properties are still considered to be in the development stage. Under Construction is defined as the status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after construction has commenced and until a certificate of occupancy is received. Pre-development phase is defined as the status of a project when the necessary permits have been obtained and investments have been made in engineering, architectural planning and design. Land utilized in pre-development phase is considered land held for development until the property reaches the construction and lease-up phase. 5 Land Held for Development Gran Park at Jacksonville [Photo of Gran Park Jacksonville] Beacon Station [Photo of Beacon Station] 6 Flagler Development Company Land Currently Held for Development as of June 30, 2002
Approx. Entitlements Property Name/Description County Acres Use Office Industrial Other Total - ---------------------------------------------------------------------------------------------------------------------------------- duPont Center Duval 7 Dev. Office 500,000 500,000 Gran Park at The Avenues Duval 14 Dev. Commercial - 46,270 46,270 Gran Park at Jacksonville Duval 359 Dev. Commercial 1,734,800 1,811,400 100,000 3,646,200 Gran Park at Deerwood Duval 17 Dev. Office 235,022 235,022 Gran Park at SouthPark I Orange 15 Dev. Commercial 163,000 163,000 Beacon Station I Dade 7 Dev. Commercial 60,800 63,200 124,000 Beacon Station II - Section 6 Dade 210 Dev. Commercial 1,114,347 2,685,768 58,000 3,858,115 Beacon Pointe Broward 6 Dev. Office 108,069 108,069 - ---------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL - Held for Development (Within Parks) 635 3,916,038 4,543,438 221,200 8,680,676 - ---------------------------------------------------------------------------------------------------------------------------------- Bartram Park (adjacent to GP at Jacksonville) Duval 98 Undev. Office 882,000 882,000 Gran Park at SouthPark II Orange 77 Undev. Commercial 1,800,000 98,000 1,898,000 Downtown Miami Dade 9 Dev. Commercial 1,000,000 1,000,000 Flagler Plaza - Sunrise Broward 40 Dev. Office 822,853 822,853 - ---------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL - Held for Development (Entitled Tracts) 224 4,504,853 - 98,000 4,602,853 - ---------------------------------------------------------------------------------------------------------------------------------- Lemberg North St. Johns 585 Undev. Industrial - - Section 8 (adjacent to Beacon Station) Dade 465 Undev. Commercial - - Ball Tract/Pine Island St. Johns 2,153 Undev. Residential - - Section 31 (adjacent to Beacon Station) Dade 73 Undev. Commercial - - - ---------------------------------------------------------------------------------------------------------------------------------- SUBTOTAL - Held for Development (Unentitled Tracts) 3,276 - - - - - ---------------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------------- TOTAL LAND HELD FOR DEVELOPMENT 4,135 8,420,891 4,543,438 319,200 13,283,529 - ----------------------------------------------------------------------------------------------------------------------------------
Property held for development within parks and entitled tracts are shown at net developable acreage. Unentitled tracts are shown at gross acreage. The land in the pre-development phase is included in this schedule; once property reaches the construction and lease-up phase, it is no longer included in the "held for development" category. - -------------------------------------------------------------------------------- The schedule above does not include acreage or entitlements information related to South Jax Industrial Park and Section 32 both which are currently on the market for sale and a 32-acre parcel which is currently under contract at Gran Park at Jacksonville for $9.5M - -------------------------------------------------------------------------------- 7 Land Held for Development-information and Forward Looking estimates for selected properties as of June 30, 2002
- ----------------------------------------------------------------- --------------------------------------------------------------- Gran Park at Jacksonville Beacon Station II - Section 6 - ----------------------------------------------------------------- --------------------------------------------------------------- Estimated Acres Available for Development* 359 Estimated Remaining Developable Acres 210 Estimated Value today per Square Foot (Land)(1) Min $ 4.50 Estimated Value today per Square Foot (Land)(5) Min $ 6.50 Max $ 6.50 Max $ 8.50 Estimated Infrastructure time frame 4 year(s) Estimated Infrastructure time frame 1 year(s) - Start 2002 - Start 2002 - Finish 2005 - Finish 2002 Estimated Infrastructure cost per developable acre[9] $ 55,000 Estimated Infrastructure cost per developable acre $ 18,000 Estimated Land Absorption 12-15 years Estimated Land Absorption 7-9 years - Start 2003 - Start 2002 *Does not include approx. 32 acres currently under contract for $9.5M - ----------------------------------------------------------------- --------------------------------------------------------------- - ----------------------------------------------------------------- --------------------------------------------------------------- Bartram Park - adjacent to GP at Jacksonville Section 8 - adjacent to Beacon Station - ----------------------------------------------------------------- --------------------------------------------------------------- Estimated Remaining Developable Acres 98 Estimated Developable Acres 309 Estimated Value today per Square Foot (Land)(2) Min $ 5.50 Estimated Value today per Square Foot (Land)(6) Min $ 5.63 Max $ 6.50 Max $ 8.63 Estimated Infrastructure time frame 3 year(s) Estimated Infrastructure time frame 10 year(s) - Start 2003 - Start 2004 - Finish 2005 - Finish 2013 Estimated Infrastructure cost per developable acre $ 30,000 Estimated Infrastructure cost per developable acre $ 205,000 Estimated Land Absorption 5-7 years Estimated Land Absorption 10-12 years - Start 2005 - Start 2005 - ----------------------------------------------------------------- --------------------------------------------------------------- - ----------------------------------------------------------------- --------------------------------------------------------------- Gran Park at SouthPark I Section 31 - adjacent to Beacon Station - ----------------------------------------------------------------- --------------------------------------------------------------- Estimated Remaining Developable Acres 15 Estimated Developable Acres 55 Estimated Value today per Square Foot (Land)(3) Min $ 4.17 Estimated Value today per Square Foot (Land)(7) Min $ 8.50 Max $ 5.17 Max $ 11.50 Estimated Infrastructure time frame 0 year(s) Estimated Infrastructure time frame 4 year(s) - Start N/A - Start 2004 - Finish N/A - Finish 2007 Estimated Infrastructure cost per developable acre $ - Estimated Infrastructure cost per developable acre $ 182,000 Estimated Land Absorption 2-3 years Estimated Land Absorption 5-6 years - Start 2002 - Start 2005 - ----------------------------------------------------------------- --------------------------------------------------------------- - ----------------------------------------------------------------- --------------------------------------------------------------- Gran Park at SouthPark II Flagler Plaza - Sunrise - ----------------------------------------------------------------- --------------------------------------------------------------- Estimated Developable Acres 77 Estimated Developable Acres 40 Estimated Value today per Square Foot (Land)(4) Min $ 5.98 Estimated Value today per Square Foot (Land)(8) Min $ 7.50 Max $ 6.98 Max $ 8.50 Estimated Infrastructure time frame 3 year(s) Estimated Infrastructure time frame 0 year(s) - Start 2003 - Start N/A - Finish 2005 - Finish N/A Estimated Infrastructure cost per developable acre $ 78,000 Estimated Infrastructure cost per developable acre $ - Estimated Land Absorption 8-10 years Estimated Land Absorption 7-9 years - Start 2003 - Start 2004 - ----------------------------------------------------------------- ---------------------------------------------------------------
(1) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 75% Office - 25% Industrial - 0% Retail. (2) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 100% Office - 0% Industrial - 0% Retail. (3) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 100% Office - 0% Industrial - 0% Retail. (4) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 88% Office - 0% Industrial - 12% Retail. (5) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 25% Office - 75% Industrial - 0% Retail. (6) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 25% Office - 75% Industrial - 0% Retail. (7) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 100% Office - 0% Industrial - 0% Retail. (8) Value is based on a blended Price per Square Foot Based on a Proposed Development Mix of: 100% Office - 0% Industrial - 0% Retail. (9) Cost is net of expected reimbursements of certain costs from an incremental tax district. - -------------------------------------------------------------------------------- The Company has not provided detailed information on the following properties that are listed on the previous page: duPont Center, Gran Park at The Avenues, Gran Park at Deerwood, Beacon Station I, Beacon Pointe, Downtown Miami, Lemberg North and the Ball Tract/Pine Island. - -------------------------------------------------------------------------------- This document provides information as of the date hereof. The company may from time to time supply updated or additional information in the future but undertakes no obligation to do so and investors are cautioned that the information provided herein speaks only as of June 30, 2002. NOTE: Readers should refer to the Introduction page within this document for an in-depth review of Forward Looking Statements. 8 Surplus Lands [Photo of Miami River Property] Miami River Property Currently Under Contract for $16.3 Million [Photo of Buena Vista Property] Buena Vista Property Currently Under Contract for $34.5 Million 9 Surplus Land Currently on the Market for Sale or Under Contract as of June 30, 2002 Flagler Development Company On the Market Approx. Property Name/Description County Acres Asking Price - -------------------------------------------------------------------------------- Lemberg South St. Johns 515.0 $1,800,000 Miller St. Johns 69.0 $6,700,000 Bunnell Flagler 413.0 $931,000 Tico Brevard 400.0 $1,940,000 National Gardens Volusia 5,910.0 $22,185,000 Bonaventure Brevard 115.5 $1,186,780 Sharpes Brevard 102.0 $706,179 Titusville Reservoir Brevard 127.5 $1,136,000 Malabar Brevard 206.0 $1,056,000 Vectorspace Brevard 27.0 $3,158,000 Section 32 - 121st Way Dade 42.0 $6,400,000 Ft. Pierce K-4 St. Lucie 564.0 $7,867,620 Pompano - Birmingham Steel Broward 8.0 $1,085,000 Orange Grove Manatee 86.0 $350,000 South Jax Industrial Park Duval 26.0 $2,435,000 Stuart Commerce Park Martin 22.0 $5,029,000 Lewis Terminals Palm Beach 12.0 $1,187,000 12 Parcels Various 37.0 $774,000 - -------------------------------------------------------------------------------- SUBTOTAL - Flagler Land on the Market 8,682.0 $65,926,579 - -------------------------------------------------------------------------------- Florida East Coast Railway, L.L.C. On the Market Approx. Property Name/Description County Acres Asking Price - -------------------------------------------------------------------------------- Kings Avenue Duval 4.1 $1,603,443 Fountain Parcel St. Johns 0.8 $540,000 Granada Blvd./Perrott Drive Volusia 2.3 $918,000 Charles Street Volusia 3.3 $1,125,000 Hopkins Street Brevard 1.2 $268,000 Cadillac Gage Brevard 72.0 $5,642,000 Eyster Blvd. Brevard 65.2 $7,476,500 - -------------------------------------------------------------------------------- SUBTOTAL - Railway Land on the Market 149.0 $17,572,943 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TOTAL - Flagler and Railway Land on the Market 8,831.0 $83,499,522 - -------------------------------------------------------------------------------- Flagler Development Company and Florida East Coast Railway, L.L.C. Surplus Land under Contract as of June 30, 2002 Approx. Contract Property Name/Description Transactions Acres Prices - -------------------------------------------------------------------------------- Buena Vista Yard 1 56.0 $34,500,000 Miami River Property 1 6.3 $16,300,000 Other transactions 5 7.7 $2,313,023 - -------------------------------------------------------------------------------- TOTAL - Railway Land under Contract 7 70.0 $53,113,023 - -------------------------------------------------------------------------------- TOTAL - Flagler Tracts under Contract 6 1,333.7 $10,297,000 - -------------------------------------------------------------------------------- TOTAL - Railway and Flagler Tracts under Contract 13 1,403.7 $63,410,023 - -------------------------------------------------------------------------------- Under Contract represents a signed agreement between two parties; in all cases, these agreements have contingencies and exit clauses enabling either or both parties to exit the agreement subject to various conditions. Florida East Coast Railway owns 1,238 acres that currently are surplus to Railway operating requirements. 219 of these surplus acres are currently on the market for sale or under sale contract as detailed above. 10