Exhibit 99.1
Supplemental Information
(Unaudited)
December 31, 2004
Exhibit 99.1
(Unaudited)
Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
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Highlights and Discussion |
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Financial Statements |
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Selected Financial Analyses |
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Portfolio Summary |
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Combined Real Estate Revenue and Combined Net Operating Income by Geographic Region by Quarter |
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Same Office Property Cash and GAAP Net Operating Income by Quarter |
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Average Occupancy Rates by Region for Same Office Properties |
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Development Placed Into Service for the Year Ended December 31, 2004 |
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To Members of the Investment Community:
We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, furnished to the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Mary Ellen Fowler, Vice President, Finance and Investor Relations at (410) 992-7324 or maryellen.fowler@copt.com. Reconciliations between GAAP and non-GAAP measurements have been provided on pages 39 through 40. Refer to our Form 8K for definitions of certain terms used herein.
• Our shareholders earned a total return of 45.2% for the year 2004 and 426.8% for the past five years on the basis of numbers compiled by the National Association of Real Estate Investment Trusts as of December 31, 2004. These return computations include the re-investment of dividends on the ex-dividend date and share appreciation.
Reporting Period Highlights – Year Ended December 31, 2004
Financial Results
• Reported Net Income Available to Common Shareholders of $18,890,000 or $.54 per diluted share for the year ended December 31, 2004 as compared to $7,650,000 or $.27 per diluted share for the comparable 2003 period, representing an increase of 100% per share. Included in the 2004 net income available to common shareholders is recognition of an accounting charge of $1.8 million reflecting the write-off of initial offering costs associated with the redemption of the Series B preferred shares which contributed $(.05) per diluted share. Included in the 2003 net income available to common shareholders is recognition of an accounting charge of $11.2 million associated with our repurchase of preferred units in excess of recorded book value which contributed $(.39) per diluted share. Excluding these accounting charges, our 2004 and 2003 net income available to common shareholders would have been $.59 and $.66 per diluted share, respectively, or a decrease of 10.6%.
• Reported FFO – diluted of $76,248,000 or $1.74 per share/unit for the year ended December 31, 2004 as compared to $61,268,000 or $1.56 per share/unit for the comparable 2003 period, representing an increase of 11.5% per share/unit.
• Reported AFFO – diluted of $51,372,000 for the year ended December 31, 2004 as compared to $43,155,000 for the comparable 2003 period, representing an increase of 19.0%.
• Our FFO payout ratio was 55.7% for the year ended December 31, 2004 as compared to 56.8% for the comparable 2003 period. Our AFFO payout ratio was 82.7% for the year ended December 31, 2004 as compared to 80.6% for the comparable 2003 period.
Financing Activity and Capital Transactions
• During the year, we issued 5.0 million common shares and generated proceeds of $115.7 million. We repaid a $26.0 million, 7.79% fixed rate mortgage scheduled to mature in August 2004 and redeemed, for $31.3 million, all of our 10.0% Series B Cumulative Redeemable Preferred Shares at a price of $25.00 per share.
• On September 14, 2004, we increased our quarterly dividend 8.5% from $.235 to $.255 per share.
• In March 2004, we closed on a $300.0 million unsecured revolving credit facility to replace our then existing $150.0 million secured revolving credit facility. The new revolving credit facility matures in March 2007, unless a one-year extension option is exercised, and is priced based on a leverage grid.
• In August 2004, we closed a $115.0 million, 5.47% mortgage, collateralized by three Northern Virginia properties and utilized the proceeds to retire a $43.6 million mortgage secured by one of the properties.
• In September 2004, we closed a $63.0 million construction facility and have borrowed $23.3 million as of December 31, 2004. This facility matures in September 2007, unless a one-year extension option is exercised. This facility will be used to fund construction costs associated with 318 Carina Road, 2691 Technology Drive and 304 Carina Road (known as 318 NBP, 191 NBP and 304 NBP, respectively).
1
Acquisitions / Dispositions
• Acquired twenty-two office buildings totaling 1,624,658 rentable square feet as of December 31, 2004 for $264.3 million, representing an average cost of $163 per square foot. These properties were 91.8% occupied at the acquisition dates.
• We expanded into a new submarket in St. Mary’s and King George Counties through several acquisitions during 2004. We purchased eleven office/flex properties containing 560,106 rentable square feet as of December 31, 2004 in St. Mary’s County, Maryland for $65.0 million or $116 per square foot. These buildings are located in three business parks, strategically positioned near the Patuxent River Naval Air Station. In addition, we acquired six office properties containing 204,605 rentable square feet in King George County, Virginia for $26.3 million or $128 per square foot. These buildings are located adjacent to the Naval Surface Warfare Center in Dahlgren, Virginia.
• In September 2004, we closed on two office properties containing 440,102 rentable square feet in McLean, Virginia for $112.5 million or $256 per square foot. This purchase marks our entrance into the Tysons Corner submarket.
• Placed into service three buildings containing 300,691 rentable square feet that were 90.3% leased as of December 31, 2004.
• Executed three leases covering 331,324 rentable square feet including two leases for 100% of two development properties.
• During 2004, we expended $16.4 million on several land holdings by acquiring 38 acres of land that can support approximately 690,000 square feet of office development.
• During 2004, we leased 2.4 million square feet including 1.7 million square feet of renewed and retenanted space, 393,582 square feet of virgin space and 331,324 square feet of new development space.
• We renewed 947,545 square feet or 71.4% of our expiring office leases (based upon square footage) with an average capital cost of $5.42 per square foot during the year ended December 31, 2004. For our renewed and retenanted space of 1,694,264 square feet, we realized increases in base rent and total rent, on a straight-line basis, of 7.2% and 5.1%, respectively, as measured from the GAAP straight-line rent, in effect preceding the renewal date. Our average capital cost was $10.86 per square foot for the renewed and retenanted space.
• We recognized $10.1 million in lease termination fees, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities (i.e., SFAS 141 revenues) in the year ended December 31, 2004 as compared to $4.7 million in the year ended December 31, 2003.
Reporting Period Highlights – Fourth Quarter 2004
Financial Results
• Reported Net Income Available to Common Shareholders of $5,792,000 or $.15 per diluted share for the fourth quarter of 2004 as compared to $4,291,000 or $.14 per diluted share for the comparable 2003 period, representing an increase of 7.1% per share over the comparable 2003 period.
• Reported FFO – diluted of $20,879,000 or $.45 per share/unit for the fourth quarter of 2004 as compared to $16,187,000 or $.40 per share/unit for the comparable 2003 period, representing an increase of 12.5% per share/unit.
• Reported AFFO – diluted of $13,164,000 for the fourth quarter of 2004 as compared to $11,060,000 for the comparable 2003 period, representing an increase of 19.0%.
• Our FFO payout ratio was 55.4% for the fourth quarter of 2004 as compared to 55.8% for the comparable 2003 period. Our AFFO payout ratio was 87.9% for the fourth quarter of 2004 as compared to 81.6% for the comparable 2003 period. The AFFO payout ratio increased primarily due to a $1.4 million increase in straight-line rent for our One Dulles Tower property due to a major retenanting of space and overall higher capital costs.
2
Financing Activity and Capital Transactions
• As of December 31, 2004, our debt to market capitalization was 40.4% and our debt to undepreciated book value of real estate assets was 58.3%. We achieved an EBITDA interest coverage ratio of 3.0x and an EBITDA fixed charge coverage ratio of 2.3x for this quarter.
Acquisitions / Dispositions
• On November 9, 2004, we acquired two office buildings containing 70,030 rentable square feet for $8.0 million in St. Mary’s County, Maryland. We funded this purchase by assuming two 8.75% fixed rate mortgages totaling $4.1 million, maturing in August 2007, and with proceeds from our unsecured revolving line of credit.
• On December 21, 2004, we acquired five office buildings containing 133,877 rentable square feet for $16.5 million in King George County, Virginia. We funded this purchase by assuming a $6.5 million, 6.44% fixed rate mortgage scheduled to mature in September 2013, by assuming a $2.8 million, 9.48% fixed rate mortgage scheduled to mature in June 2007 and with proceeds from our unsecured revolving line of credit.
• On December 28, 2004, we acquired one office building containing 70,728 rentable square feet for $9.8 million in King George County, Virginia. We funded this purchase by assuming a $6.4 million, 8.13% fixed rate mortgage scheduled to mature in July 2007 and with proceeds from our unsecured revolving line of credit.
• During this quarter, we placed into service the entire 88,094 square feet of 4851 Stonecroft Boulevard (known as Greens III). This property is 100% leased to Aerospace Corporation for a ten year term.
• We commenced construction on an 82,000 square foot development property, located at 8621 Robert Fulton Drive, held through a joint venture. This property is 79.4% leased to Cadmus Journal Services, Inc. for a twelve year term.
• Overall occupancy was 94.0% and our portfolio was 95.0% leased as of December 31, 2004. Weighted average lease term of our office portfolio is 4.9 years as of December 31, 2004.
• Our same property NOI increased by 1.5% or $494,000 on a GAAP basis and decreased by (1.1)% or $348,000 on a cash basis as compared to the quarter ended December 31, 2003. Our same property portfolio consists of 116 properties and represents 80.7% of our total square feet owned as of December 31, 2004.
• We renewed 184,543 square feet or 55.9% of our expiring office leases (based upon square footage) with an average capital cost of $7.78 per square foot during the fourth quarter. For our renewed and retenanted space of 339,818 square feet, we realized increases in base rent and total rent, on a straight-line basis, of 6.8% and 5.6%, respectively, as measured from the GAAP straight-line rent, in effect preceding the renewal date. We incurred an average capital cost of $15.76 per square foot for our renewed and retenanted space in the fourth quarter.
• In January 2005, we commenced construction on our development property located at 322 Carina Road (known as 322 NBP).
• On January 27, 2005, we purchased 19 acres of land in Westfields Corporate Center for $7.1 million.
3
This supplemental information contains “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on our current expectations, estimates and projections about future events and financial trends affecting us. Forward-looking statements can be identified by the use of words such as “may”, “will”, “should”, “expect”, “estimate” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Accordingly, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and projections include, but are not limited to:
• our ability to borrow on favorable terms;
• general economic and business conditions, which will, among other things, affect office property demand and rents, tenant creditworthiness, interest rates and financing availability;
• adverse changes in the real estate markets including, among other things, increased competition with other companies;
• risk of real estate acquisition and development, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
• risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives;
• governmental actions and initiatives; and
• environmental requirements.
We undertake no obligation to update or supplement any forward-looking statements. For further information, please refer to our filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2004.
4
Quarterly Selected Financial Summary Data
(Dollars in thousands)
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2004 |
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2003 |
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December 31 |
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September 30 |
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June 30 |
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March 31 |
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December 31 |
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Revenues from Real Estate Operations |
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$ |
58,613 |
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$ |
53,097 |
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$ |
53,892 |
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$ |
48,971 |
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$ |
46,579 |
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Total Revenues |
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66,328 |
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60,563 |
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59,962 |
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56,623 |
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51,856 |
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Combined Net Operating Income |
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41,444 |
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36,899 |
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39,245 |
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33,932 |
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32,710 |
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EBITDA |
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38,439 |
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34,713 |
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37,020 |
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32,078 |
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30,711 |
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Net Income |
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9,446 |
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9,750 |
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8,843 |
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8,993 |
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8,070 |
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Preferred Share dividends |
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(3,654 |
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(3,784 |
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(4,435 |
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(4,456 |
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(3,779 |
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Issuance costs associated with redeemed preferred shares |
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— |
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(1,813 |
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— |
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— |
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— |
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Net Income (Loss) Available to Common Shareholders |
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$ |
5,792 |
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$ |
4,153 |
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$ |
4,408 |
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$ |
4,537 |
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$ |
4,291 |
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Earnings per diluted share |
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$ |
0.15 |
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$ |
0.12 |
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$ |
0.13 |
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$ |
0.14 |
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$ |
0.14 |
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Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares |
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$ |
0.15 |
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$ |
0.17 |
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$ |
0.13 |
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$ |
0.14 |
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$ |
0.14 |
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Funds From Operations (FFO) - Diluted |
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$ |
20,879 |
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$ |
17,368 |
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$ |
21,410 |
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$ |
16,307 |
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$ |
16,187 |
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FFO per diluted share |
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$ |
0.45 |
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$ |
0.39 |
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$ |
0.50 |
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$ |
0.40 |
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$ |
0.40 |
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FFO per diluted share, as adjusted for issuance costs associated with redeemed preferred shares |
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$ |
0.45 |
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$ |
0.43 |
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$ |
0.50 |
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$ |
0.40 |
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$ |
0.40 |
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FFO - Diluted, excluding SFAS 141 |
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$ |
20,754 |
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$ |
17,144 |
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$ |
21,137 |
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$ |
15,998 |
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$ |
15,835 |
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FFO per diluted share, excluding SFAS 141 |
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$ |
0.44 |
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$ |
0.39 |
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$ |
0.49 |
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$ |
0.39 |
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$ |
0.39 |
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Adjusted FFO - Diluted |
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$ |
13,164 |
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$ |
11,759 |
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$ |
13,956 |
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$ |
12,209 |
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$ |
11,060 |
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Payout Ratios: |
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Earnings Payout |
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160.36 |
% |
222.37 |
% |
178.71 |
% |
158.21 |
% |
158.63 |
% |
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FFO - Diluted |
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55.39 |
% |
65.85 |
% |
46.40 |
% |
56.87 |
% |
55.77 |
% |
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AFFO - Diluted |
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87.85 |
% |
97.26 |
% |
71.19 |
% |
75.95 |
% |
81.62 |
% |
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Total Dividends/Distributions |
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$ |
15,286 |
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$ |
15,235 |
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$ |
14,370 |
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$ |
13,708 |
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$ |
12,670 |
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Note: The above presentation does not separately report discontinued operations.
5
Quarterly Consolidated Balance Sheets
(Dollars in thousands except per share data)
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2004 |
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2003 |
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December 31 |
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September 30 |
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June 30 |
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March 31 |
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December 31 |
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Assets |
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Investment in real estate: |
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Land - operational |
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$ |
268,327 |
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$ |
260,197 |
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$ |
236,026 |
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$ |
229,558 |
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$ |
216,703 |
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Land - development |
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74,190 |
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75,925 |
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70,407 |
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59,231 |
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53,356 |
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Construction in progress |
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61,962 |
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49,453 |
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51,387 |
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35,387 |
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13,793 |
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Buildings and improvements |
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1,280,537 |
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1,231,518 |
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1,091,865 |
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1,071,701 |
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1,003,214 |
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Investment in and advances to unconsolidated real estate joint ventures |
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1,201 |
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1,094 |
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1,055 |
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1,059 |
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5,262 |
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Less: accumulated depreciation |
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(141,716 |
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(131,018 |
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(121,630 |
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(110,155 |
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(103,070 |
) |
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Net investment in real estate |
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1,544,501 |
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1,487,169 |
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1,329,110 |
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1,286,781 |
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1,189,258 |
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Cash and cash equivalents |
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13,821 |
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6,812 |
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12,202 |
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9,536 |
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9,481 |
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Restricted cash |
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12,617 |
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10,760 |
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12,137 |
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13,528 |
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11,030 |
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Accounts receivable, net |
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16,771 |
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10,209 |
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16,002 |
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9,708 |
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13,047 |
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Investment in and advances to other unconsolidated entities |
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1,621 |
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1,621 |
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1,621 |
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1,621 |
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1,621 |
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Deferred rent receivable |
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26,282 |
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23,383 |
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20,857 |
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18,673 |
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17,903 |
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Deferred charges, net |
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27,642 |
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26,407 |
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24,006 |
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19,551 |
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17,723 |
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Intangible assets on real estate acquisitions, net |
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67,560 |
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67,083 |
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53,874 |
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55,577 |
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55,692 |
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Prepaid and other assets |
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18,646 |
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14,703 |
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18,380 |
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14,719 |
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14,311 |
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Furniture, fixtures and equipment, net of accumulated depreciation |
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2,565 |
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2,579 |
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2,512 |
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2,316 |
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2,010 |
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Total assets |
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$ |
1,732,026 |
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$ |
1,650,726 |
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$ |
1,490,701 |
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$ |
1,432,010 |
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$ |
1,332,076 |
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Liabilities and shareholders’ equity |
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Liabilities: |
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Mortgage and other loans payable |
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$ |
1,022,688 |
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$ |
947,332 |
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$ |
820,344 |
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$ |
829,755 |
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$ |
738,698 |
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Accounts payable and accrued expenses |
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46,307 |
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41,168 |
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37,535 |
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29,217 |
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23,126 |
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Rents received in advance and security deposits |
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12,781 |
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11,519 |
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11,950 |
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11,842 |
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10,112 |
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Deferred revenue associated with acquired operating leases |
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7,247 |
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7,670 |
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8,335 |
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8,734 |
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9,630 |
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Dividends/distributions payable |
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14,713 |
|
14,533 |
|
13,668 |
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12,991 |
|
12,098 |
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Fair value of derivatives |
|
— |
|
45 |
|
106 |
|
429 |
|
467 |
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Other liabilities |
|
7,488 |
|
7,115 |
|
7,105 |
|
3,184 |
|
7,768 |
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Total liabilities |
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1,111,224 |
|
1,029,382 |
|
899,043 |
|
896,152 |
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801,899 |
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|||||
|
Minority interests: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Units in the Operating Partnership |
|
8,800 |
|
8,800 |
|
— |
|
— |
|
— |
|
|||||
|
Common Units in the Operating Partnership |
|
88,355 |
|
90,029 |
|
84,844 |
|
79,245 |
|
79,796 |
|
|||||
|
Other consolidated real estate joint ventures |
|
1,723 |
|
1,594 |
|
5,602 |
|
5,498 |
|
— |
|
|||||
|
Total minority interests |
|
98,878 |
|
100,423 |
|
90,446 |
|
84,743 |
|
79,796 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Commitments and contingencies |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Shares ($0.01 par value; 15,000,000 authorized); |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (no shares issued as of December 31, 2004) |
|
— |
|
— |
|
13 |
|
13 |
|
13 |
|
|||||
|
544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (no shares issued as of December 31, 2004) |
|
— |
|
— |
|
— |
|
— |
|
5 |
|
|||||
|
1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2004) |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
|||||
|
1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2004) |
|
14 |
|
14 |
|
14 |
|
14 |
|
14 |
|
|||||
|
2,200,000 designated as Series G Cumulative Redeemable Preferred Shares of beneficial interest (2,200,000 shares issued as of December 31, 2004) |
|
22 |
|
22 |
|
22 |
|
22 |
|
22 |
|
|||||
|
2,000,000 designated as Series H Cumulative Redeemable Preferred Shares of beneficial interest (2,000,000 shares issued as of December 31, 2004) |
|
20 |
|
20 |
|
20 |
|
20 |
|
20 |
|
|||||
|
Common Shares of beneficial interest ($0.01 par value; |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
75,000,000 authorized, 36,842,108 shares issued as of December 31, 2004) |
|
368 |
|
367 |
|
340 |
|
311 |
|
294 |
|
|||||
|
Additional paid-in capital |
|
578,228 |
|
573,766 |
|
550,927 |
|
497,718 |
|
492,886 |
|
|||||
|
Cumulative distributions in excess of net income |
|
(51,358 |
) |
(47,862 |
) |
(44,593 |
) |
(41,123 |
) |
(38,483 |
) |
|||||
|
Value of unearned restricted common share grants |
|
(5,381 |
) |
(5,381 |
) |
(5,459 |
) |
(5,543 |
) |
(4,107 |
) |
|||||
|
Accumulated other comprehensive loss |
|
— |
|
(36 |
) |
(83 |
) |
(328 |
) |
(294 |
) |
|||||
|
Total shareholders’ equity |
|
521,924 |
|
520,921 |
|
501,212 |
|
451,115 |
|
450,381 |
|
|||||
|
Total shareholders’ equity and minority interests |
|
620,802 |
|
621,344 |
|
591,658 |
|
535,858 |
|
530,177 |
|
|||||
|
Total liabilities and shareholders’ equity |
|
$ |
1,732,026 |
|
$ |
1,650,726 |
|
$ |
1,490,701 |
|
$ |
1,432,010 |
|
$ |
1,332,076 |
|
6
Quarterly Consolidated Statements of Operations
(Dollars and units in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental revenue |
|
$ |
52,630 |
|
$ |
47,491 |
|
$ |
49,038 |
|
$ |
43,194 |
|
$ |
40,127 |
|
|
Tenant recoveries and other revenue |
|
5,983 |
|
5,606 |
|
4,854 |
|
5,777 |
|
6,452 |
|
|||||
|
Construction contract revenues |
|
6,882 |
|
6,766 |
|
5,233 |
|
6,137 |
|
4,643 |
|
|||||
|
Other service operations revenues |
|
833 |
|
700 |
|
837 |
|
1,515 |
|
634 |
|
|||||
|
Total Revenues |
|
66,328 |
|
60,563 |
|
59,962 |
|
56,623 |
|
51,856 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Property operating |
|
17,170 |
|
16,197 |
|
14,647 |
|
15,039 |
|
13,869 |
|
|||||
|
Depreciation and amortization |
|
13,859 |
|
11,802 |
|
15,884 |
|
10,359 |
|
10,387 |
|
|||||
|
Construction contract expenses |
|
6,453 |
|
6,483 |
|
4,979 |
|
5,818 |
|
4,384 |
|
|||||
|
Other service operations expenses |
|
823 |
|
495 |
|
853 |
|
1,092 |
|
666 |
|
|||||
|
General and administrative expenses |
|
3,467 |
|
2,698 |
|
2,487 |
|
2,286 |
|
2,242 |
|
|||||
|
Total operating expenses |
|
41,772 |
|
37,675 |
|
38,850 |
|
34,594 |
|
31,548 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating Income |
|
24,556 |
|
22,888 |
|
21,112 |
|
22,029 |
|
20,308 |
|
|||||
|
Interest expense |
|
(12,648 |
) |
(10,839 |
) |
(10,514 |
) |
(10,262 |
) |
(10,471 |
) |
|||||
|
Amortization of deferred financing costs |
|
(495 |
) |
(577 |
) |
(500 |
) |
(859 |
) |
(810 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income from continuing operations before gain on sales of real estate, equity in (loss)/income of unconsolidated entities, income taxes and minority interests |
|
11,413 |
|
11,472 |
|
10,098 |
|
10,908 |
|
9,027 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gain/(loss) on sales of real estate, excluding discontinued operations |
|
24 |
|
24 |
|
24 |
|
(222 |
) |
24 |
|
|||||
|
Equity in (loss)/income of unconsolidated entities |
|
— |
|
— |
|
— |
|
(88 |
) |
(7 |
) |
|||||
|
Income tax (expense)/benefit, gross |
|
(420 |
) |
(145 |
) |
(30 |
) |
(200 |
) |
406 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income from continuing operations before minority interests |
|
11,017 |
|
11,351 |
|
10,092 |
|
10,398 |
|
9,450 |
|
|||||
|
Minority interest in income from continuing operations of consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common units in the Operating Partnership |
|
(1,418 |
) |
(1,595 |
) |
(1,241 |
) |
(1,405 |
) |
(1,380 |
) |
|||||
|
Preferred units in the Operating Partnership |
|
(165 |
) |
(14 |
) |
— |
|
— |
|
— |
|
|||||
|
Other consolidated entities |
|
12 |
|
8 |
|
(8 |
) |
— |
|
— |
|
|||||
|
Income from continuing operations |
|
9,446 |
|
9,750 |
|
8,843 |
|
8,993 |
|
8,070 |
|
|||||
|
Income from discontinued operations, net of minority interests |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Net Income |
|
9,446 |
|
9,750 |
|
8,843 |
|
8,993 |
|
8,070 |
|
|||||
|
Preferred share dividends |
|
(3,654 |
) |
(3,784 |
) |
(4,435 |
) |
(4,456 |
) |
(3,779 |
) |
|||||
|
Issuance costs associated with redeemed preferred shares |
|
— |
|
(1,813 |
) |
— |
|
— |
|
— |
|
|||||
|
Net Income Available to Common Shareholders |
|
$ |
5,792 |
|
$ |
4,153 |
|
$ |
4,408 |
|
$ |
4,537 |
|
$ |
4,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
For EPS Computations: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income Available to Common Shareholders |
|
$ |
5,792 |
|
$ |
4,153 |
|
$ |
4,408 |
|
$ |
4,537 |
|
$ |
4,291 |
|
|
Dividends on convertible preferred shares |
|
— |
|
— |
|
— |
|
21 |
|
136 |
|
|||||
|
Numerator for Dilutive EPS Computation |
|
$ |
5,792 |
|
$ |
4,153 |
|
$ |
4,408 |
|
$ |
4,558 |
|
$ |
4,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Weighted Average Common Shares - Basic |
|
36,296 |
|
33,797 |
|
32,743 |
|
29,814 |
|
28,951 |
|
|||||
|
Dilutive options |
|
1,638 |
|
1,655 |
|
1,639 |
|
1,749 |
|
1,658 |
|
|||||
|
Preferred shares outstanding assuming conversion |
|
— |
|
— |
|
— |
|
539 |
|
1,197 |
|
|||||
|
Weighted Average Common Shares - Diluted |
|
37,934 |
|
35,452 |
|
34,382 |
|
32,102 |
|
31,806 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings per diluted share |
|
$ |
0.15 |
|
$ |
0.12 |
|
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.14 |
|
7
Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From
Operations (AFFO) and Earnings per diluted share, as adjusted
(Dollars and shares in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income |
|
$ |
9,446 |
|
$ |
9,750 |
|
$ |
8,843 |
|
$ |
8,993 |
|
$ |
8,070 |
|
|
Preferred share dividends |
|
(3,654 |
) |
(3,784 |
) |
(4,435 |
) |
(4,456 |
) |
(3,779 |
) |
|||||
|
Issuance costs associated with redeemed preferred shares |
|
— |
|
(1,813 |
) |
— |
|
— |
|
— |
|
|||||
|
Combined real estate related depreciation and other amortization |
|
13,625 |
|
11,700 |
|
15,785 |
|
10,261 |
|
10,292 |
|
|||||
|
Depreciation and amortization of unconsolidated real estate entities |
|
— |
|
— |
|
— |
|
106 |
|
112 |
|
|||||
|
Depreciation and amortization allocable to minority interests in other consol. entities |
|
(30 |
) |
(56 |
) |
— |
|
— |
|
— |
|
|||||
|
Minority interest - common units, gross |
|
1,418 |
|
1,595 |
|
1,241 |
|
1,405 |
|
1,378 |
|
|||||
|
Gain on sale of real estate properties, excluding redevelopment |
|
(24 |
) |
(24 |
) |
(24 |
) |
(23 |
) |
(23 |
) |
|||||
|
Funds From Operations (FFO) - Basic |
|
20,781 |
|
17,368 |
|
21,410 |
|
16,286 |
|
16,050 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Convertible preferred share dividends |
|
— |
|
— |
|
— |
|
21 |
|
136 |
|
|||||
|
Restricted share dividends |
|
98 |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Expense on dilutive options |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
|||||
|
Funds From Operations (FFO) - Diluted |
|
$ |
20,879 |
|
$ |
17,368 |
|
$ |
21,410 |
|
$ |
16,307 |
|
$ |
16,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Straight line rents |
|
(2,895 |
) |
(2,519 |
) |
(2,184 |
) |
(766 |
) |
(1,061 |
) |
|||||
|
Accretion of intangible assets and liabilities classified as revenues |
|
(125 |
) |
(224 |
) |
(273 |
) |
(309 |
) |
(352 |
) |
|||||
|
Issuance costs associated with redeemed preferred shares |
|
— |
|
1,813 |
|
— |
|
— |
|
— |
|
|||||
|
Recurring capital improvements |
|
(4,695 |
) |
(4,679 |
) |
(4,997 |
) |
(3,023 |
) |
(3,714 |
) |
|||||
|
Adjusted Funds from Operations - Diluted |
|
$ |
13,164 |
|
$ |
11,759 |
|
$ |
13,956 |
|
$ |
12,209 |
|
$ |
11,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred dividends - redeemable non-convertible |
|
3,654 |
|
3,784 |
|
4,435 |
|
4,435 |
|
3,643 |
|
|||||
|
Preferred dividends - redeemable convertible |
|
— |
|
— |
|
— |
|
21 |
|
136 |
|
|||||
|
Preferred distributions |
|
165 |
|
14 |
|
— |
|
— |
|
— |
|
|||||
|
Common distributions |
|
2,179 |
|
2,202 |
|
2,057 |
|
2,074 |
|
2,084 |
|
|||||
|
Common dividends |
|
9,288 |
|
9,235 |
|
7,878 |
|
7,178 |
|
6,807 |
|
|||||
|
Total Dividends/Distributions |
|
$ |
15,286 |
|
$ |
15,235 |
|
$ |
14,370 |
|
$ |
13,708 |
|
$ |
12,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Denominator for earnings per share - Diluted |
|
37,934 |
|
35,452 |
|
34,382 |
|
32,102 |
|
31,806 |
|
|||||
|
Common units |
|
8,588 |
|
8,690 |
|
8,765 |
|
8,863 |
|
8,870 |
|
|||||
|
Restricted shares |
|
238 |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Dilutive options |
|
— |
|
— |
|
— |
|
— |
|
5 |
|
|||||
|
Denominator for funds from operations per share - Diluted |
|
46,760 |
|
44,142 |
|
43,147 |
|
40,965 |
|
40,681 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Funds From Operations (FFO) - Diluted |
|
$ |
20,879 |
|
$ |
17,368 |
|
$ |
21,410 |
|
$ |
16,307 |
|
$ |
16,187 |
|
|
Reclassification of accretion of intangible assets and liabilities classified as revenues |
|
(125 |
) |
(224 |
) |
(273 |
) |
(309 |
) |
(352 |
) |
|||||
|
Funds From Operations (FFO) - Diluted, excluding SFAS 141 |
|
$ |
20,754 |
|
$ |
17,144 |
|
$ |
21,137 |
|
$ |
15,998 |
|
$ |
15,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Funds From Operations (FFO) - Diluted |
|
$ |
20,879 |
|
$ |
17,368 |
|
$ |
21,410 |
|
$ |
16,307 |
|
$ |
16,187 |
|
|
Issuance costs associated with redeemed preferred shares (1) |
|
n/a |
|
1,813 |
|
n/a |
|
n/a |
|
n/a |
|
|||||
|
FFO diluted, as adjusted for issuance costs associated with redeemed preferred shares |
|
$ |
20,879 |
|
$ |
19,181 |
|
$ |
21,410 |
|
$ |
16,307 |
|
$ |
16,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Numerator for Dilutive EPS Computation |
|
$ |
5,792 |
|
$ |
4,153 |
|
$ |
4,408 |
|
$ |
4,558 |
|
$ |
4,427 |
|
|
Issuance costs associated with redeemed preferred shares (1) |
|
n/a |
|
1,813 |
|
n/a |
|
n/a |
|
n/a |
|
|||||
|
Numerator for Dilutive EPS Computation, as adjusted |
|
$ |
5,792 |
|
$ |
5,966 |
|
$ |
4,408 |
|
$ |
4,558 |
|
$ |
4,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares |
|
$ |
0.15 |
|
$ |
0.17 |
|
$ |
0.13 |
|
$ |
0.14 |
|
$ |
0.14 |
|
(1) Earnings per diluted share and FFO per diluted share have been adjusted to exclude the issuance costs associated with our Series B redeemed preferred shares.
8
Quarterly
Consolidated Reconciliations of Earnings Before Interest, Income Taxes,
Depreciation and Amortization
(EBITDA), Combined Net
Operating Income (NOI), Discontinued Operations and Gains on Sales of Real
Estate
(Dollars and shares in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income |
|
$ |
9,446 |
|
$ |
9,750 |
|
$ |
8,843 |
|
$ |
8,993 |
|
$ |
8,070 |
|
|
Combined interest expense |
|
12,648 |
|
10,839 |
|
10,514 |
|
10,262 |
|
10,471 |
|
|||||
|
Amortization of deferred financing costs |
|
495 |
|
577 |
|
500 |
|
859 |
|
810 |
|
|||||
|
Income tax expense/(benefit), gross |
|
420 |
|
145 |
|
30 |
|
200 |
|
(406 |
) |
|||||
|
Depreciation of furniture, fixtures and equipment |
|
234 |
|
101 |
|
99 |
|
98 |
|
96 |
|
|||||
|
Combined real estate related depreciation and other amortization |
|
13,625 |
|
11,700 |
|
15,785 |
|
10,261 |
|
10,292 |
|
|||||
|
Minority interest - preferred units |
|
165 |
|
14 |
|
— |
|
— |
|
— |
|
|||||
|
Minority interest - consolidated partnerships |
|
(12 |
) |
(8 |
) |
8 |
|
— |
|
— |
|
|||||
|
Minority interest - common units, gross |
|
1,418 |
|
1,595 |
|
1,241 |
|
1,405 |
|
1,378 |
|
|||||
|
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) |
|
$ |
38,439 |
|
$ |
34,713 |
|
$ |
37,020 |
|
$ |
32,078 |
|
$ |
30,711 |
|
|
Addback: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
General and administrative |
|
3,467 |
|
2,698 |
|
2,487 |
|
2,286 |
|
2,242 |
|
|||||
|
(Income) from service operations |
|
(439 |
) |
(488 |
) |
(238 |
) |
(742 |
) |
(227 |
) |
|||||
|
Equity in loss/(income) of unconsol. real estate joint ventures |
|
— |
|
— |
|
— |
|
88 |
|
7 |
|
|||||
|
Gain on sale of depreciated real estate properties |
|
(24 |
) |
(24 |
) |
(24 |
) |
(23 |
) |
(23 |
) |
|||||
|
Merchant sales and real estate services |
|
1 |
|
— |
|
— |
|
245 |
|
— |
|
|||||
|
Combined Net Operating Income (NOI) |
|
$ |
41,444 |
|
$ |
36,899 |
|
$ |
39,245 |
|
$ |
33,932 |
|
$ |
32,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Discontinued Operations: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Revenues from real estate operations |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Property operating expenses |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Depreciation and amortization |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
|||||
|
Interest |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Gain on sale of real estate |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Income from discontinued operations |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
|||||
|
Minority interests in discontinued operations |
|
— |
|
(1 |
) |
— |
|
— |
|
— |
|
|||||
|
Income from discontinued operations, net of minority interests |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gain/(loss) on sales of real estate per statement of operations |
|
$ |
24 |
|
$ |
24 |
|
$ |
24 |
|
$ |
(222 |
) |
$ |
24 |
|
|
(Loss)/gain on sales of real estate from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Combined gain/(loss) on sales of real estate |
|
24 |
|
24 |
|
24 |
|
(222 |
) |
24 |
|
|||||
|
Merchant sales and real estate services |
|
— |
|
— |
|
— |
|
245 |
|
— |
|
|||||
|
Gain on sales of depreciated real estate properties |
|
$ |
24 |
|
$ |
24 |
|
$ |
24 |
|
$ |
23 |
|
$ |
24 |
|
9
Annual Selected Financial Summary Data
(Dollars in thousands)
|
|
|
December 31 |
|
|||||||
|
|
|
2004 |
|
2003 |
|
2002 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Revenues from Real Estate Operations |
|
$ |
214,573 |
|
$ |
174,423 |
|
$ |
150,335 |
|
|
|
|
|
|
|
|
|
|
|||
|
EBITDA |
|
140,577 |
|
116,659 |
|
103,913 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
|
37,032 |
|
30,877 |
|
23,301 |
|
|||
|
Preferred Share dividends |
|
(16,329 |
) |
(12,003 |
) |
(10,134 |
) |
|||
|
Issuance costs associated with redeemed preferred shares |
|
(1,813 |
) |
— |
|
— |
|
|||
|
Repurchase of preferred units in excess of recorded book value |
|
— |
|
(11,224 |
) |
— |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Income Available to Common Shareholders |
|
$ |
18,890 |
|
$ |
7,650 |
|
$ |
13,167 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings per diluted share |
|
$ |
0.54 |
|
$ |
0.27 |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|||
|
Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares and the repurchase of preferred units in excess of recorded book value |
|
$ |
0.59 |
|
$ |
0.66 |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|||
|
Funds From Operations (FFO) - Diluted |
|
$ |
76,248 |
|
$ |
61,268 |
|
$ |
52,854 |
|
|
FFO per diluted share |
|
$ |
1.74 |
|
$ |
1.56 |
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|||
|
FFO per diluted share, as adjusted for issuance costs associated with redeemed preferred shares |
|
$ |
1.78 |
|
$ |
1.56 |
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|||
|
FFO - Diluted, excluding SFAS 141 |
|
$ |
74,935 |
|
$ |
59,451 |
|
$ |
50,512 |
|
|
FFO per diluted share, excluding SFAS 141 |
|
$ |
1.71 |
|
$ |
1.51 |
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
|
|||
|
Adjusted FFO - Diluted |
|
$ |
51,372 |
|
$ |
43,155 |
|
$ |
41,483 |
|
|
|
|
|
|
|
|
|
|
|||
|
Payout Ratios: |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings Payout |
|
177.76 |
% |
327.66 |
% |
149.86 |
% |
|||
|
|
|
|
|
|
|
|
|
|||
|
FFO - Diluted |
|
55.73 |
% |
56.76 |
% |
58.21 |
% |
|||
|
|
|
|
|
|
|
|
|
|||
|
AFFO - Diluted |
|
82.72 |
% |
80.58 |
% |
74.17 |
% |
|||
|
|
|
|
|
|
|
|
|
|||
|
Total Dividends/Distributions |
|
$ |
58,599 |
|
$ |
46,233 |
|
$ |
40,357 |
|
Note: The above presentation does not separately report discontinued operations.
10
Annual Consolidated Balance Sheets
(Dollars in thousands except per share data)
|
|
|
December 31 |
|
|||||||
|
|
|
2004 |
|
2003 |
|
2002 |
|
|||
|
Assets |
|
|
|
|
|
|
|
|||
|
Investment in real estate: |
|
|
|
|
|
|
|
|||
|
Land - operational |
|
$ |
268,327 |
|
$ |
216,703 |
|
$ |
190,247 |
|
|
Land - development |
|
74,190 |
|
53,356 |
|
24,998 |
|
|||
|
Construction in progress |
|
61,962 |
|
13,793 |
|
9,926 |
|
|||
|
Buildings and improvements |
|
1,280,537 |
|
1,003,214 |
|
887,854 |
|
|||
|
Investment in and advances to unconsolidated real estate joint ventures |
|
1,201 |
|
5,262 |
|
7,999 |
|
|||
|
Less: accumulated depreciation |
|
(141,716 |
) |
(103,070 |
) |
(78,069 |
) |
|||
|
Net investment in real estate |
|
1,544,501 |
|
1,189,258 |
|
1,042,955 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
13,821 |
|
9,481 |
|
5,991 |
|
|||
|
Restricted cash |
|
12,617 |
|
11,030 |
|
9,739 |
|
|||
|
Accounts receivable, net |
|
16,771 |
|
13,047 |
|
3,509 |
|
|||
|
Investment in and advances to other unconsolidated entities |
|
1,621 |
|
1,621 |
|
1,621 |
|
|||
|
Deferred rent receivable |
|
26,282 |
|
17,903 |
|
13,698 |
|
|||
|
Deferred charges, net |
|
27,642 |
|
17,723 |
|
19,848 |
|
|||
|
Intangible assets on real estate acquisitions, net |
|
67,560 |
|
55,692 |
|
28,424 |
|
|||
|
Prepaid and other assets |
|
18,646 |
|
14,311 |
|
11,260 |
|
|||
|
Furniture, fixtures and equipment, net of accumulated depreciation |
|
2,565 |
|
2,010 |
|
1,676 |
|
|||
|
Total assets |
|
$ |
1,732,026 |
|
$ |
1,332,076 |
|
$ |
1,138,721 |
|
|
|
|
|
|
|
|
|
|
|||
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|||
|
Liabilities: |
|
|
|
|
|
|
|
|||
|
Mortgage and other loans payable |
|
$ |
1,022,688 |
|
$ |
738,698 |
|
$ |
705,056 |
|
|
Accounts payable and accrued expenses |
|
46,307 |
|
23,126 |
|
11,670 |
|
|||
|
Rents received in advance and security deposits |
|
12,781 |
|
10,112 |
|
8,253 |
|
|||
|
Deferred revenue associated with acquired operating leases |
|
7,247 |
|
9,630 |
|
12,250 |
|
|||
|
Dividends/distributions payable |
|
14,713 |
|
12,098 |
|
9,794 |
|
|||
|
Fair value of derivatives |
|
— |
|
467 |
|
494 |
|
|||
|
Other liabilities |
|
7,488 |
|
7,768 |
|
1,821 |
|
|||
|
Total liabilities |
|
1,111,224 |
|
801,899 |
|
749,338 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Minority interests: |
|
|
|
|
|
|
|
|||
|
Preferred Units in the Operating Partnership |
|
8,800 |
|
— |
|
24,367 |
|
|||
|
Common Units in the Operating Partnership |
|
88,355 |
|
79,796 |
|
76,519 |
|
|||
|
Other consolidated real estate joint ventures |
|
1,723 |
|
— |
|
— |
|
|||
|
Total minority interests |
|
98,878 |
|
79,796 |
|
100,886 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Commitments and contingencies |
|
— |
|
— |
|
— |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|||
|
Preferred Shares ($0.01 par value; 15,000,000 authorized); |
|
|
|
|
|
|
|
|||
|
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (no shares issued as of December 31, 2004) |
|
— |
|
13 |
|
13 |
|
|||
|
544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (no shares issued as of December 31, 2004) |
|
— |
|
5 |
|
5 |
|
|||
|
1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2004) |
|
11 |
|
11 |
|
11 |
|
|||
|
1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2004) |
|
14 |
|
14 |
|
14 |
|
|||
|
2,200,000 designated as Series G Cumulative Redeemable Preferred Shares of beneficial interest (2,200,000 shares issued as of December 31, 2004) |
|
22 |
|
22 |
|
— |
|
|||
|
2,000,000 designated as Series H Cumulative Redeemable Preferred Shares of beneficial interest (2,000,000 shares issued as of December 31, 2004) |
|
20 |
|
20 |
|
— |
|
|||
|
Common Shares of beneficial interest ($0.01 par value; 75,000,000 authorized, 36,842,108 shares issued as of December 31, 2004) |
|
368 |
|
294 |
|
237 |
|
|||
|
Additional paid-in capital |
|
578,228 |
|
492,886 |
|
312,372 |
|
|||
|
Cumulative distributions in excess of net income |
|
(51,358 |
) |
(38,483 |
) |
(21,067 |
) |
|||
|
Value of unearned restricted common share grants |
|
(5,381 |
) |
(4,107 |
) |
(2,739 |
) |
|||
|
Accumulated other comprehensive loss |
|
— |
|
(294 |
) |
(349 |
) |
|||
|
Total shareholders’ equity |
|
521,924 |
|
450,381 |
|
288,497 |
|
|||
|
Total shareholders’ equity and minority interests |
|
$ |
620,802 |
|
$ |
530,177 |
|
$ |
389,383 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,732,026 |
|
$ |
1,332,076 |
|
$ |
1,138,721 |
|
11
Annual Consolidated Statements of Operations
(Dollars and units in thousands)
|
|
|
December 31 |
|
|||||||
|
|
|
2004 |
|
2003 |
|
2002 |
|
|||
|
Revenues |
|
|
|
|
|
|
|
|||
|
Rental revenue |
|
$ |
192,353 |
|
$ |
153,048 |
|
$ |
134,421 |
|
|
Tenant recoveries and other revenue |
|
22,220 |
|
21,375 |
|
15,914 |
|
|||
|
Construction contract revenues |
|
25,018 |
|
28,865 |
|
826 |
|
|||
|
Other service operations revenues |
|
3,885 |
|
2,875 |
|
3,877 |
|
|||
|
Total Revenues |
|
243,476 |
|
206,163 |
|
155,038 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Expenses |
|
|
|
|
|
|
|
|||
|
Property operating |
|
63,053 |
|
51,699 |
|
43,929 |
|
|||
|
Depreciation and amortization |
|
51,904 |
|
37,122 |
|
30,859 |
|
|||
|
Construction contract expenses |
|
23,733 |
|
27,483 |
|
789 |
|
|||
|
Other service operations expenses |
|
3,263 |
|
3,450 |
|
4,218 |
|
|||
|
General and administrative expenses |
|
10,938 |
|
7,893 |
|
6,697 |
|
|||
|
Total Operating Expenses |
|
152,891 |
|
127,647 |
|
86,492 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Operating Income |
|
90,585 |
|
78,516 |
|
68,546 |
|
|||
|
Interest |
|
(44,263 |
) |
(41,079 |
) |
(39,065 |
) |
|||
|
Amortization of deferred financing costs |
|
(2,431 |
) |
(2,767 |
) |
(2,501 |
) |
|||
|
|
|
|
|
|
|
|
|
|||
|
Income from continuing operations before gain on sales of real estate, equity in (loss)/income of unconsolidated entities, income taxes and minority interests |
|
43,891 |
|
34,670 |
|
26,980 |
|
|||
|
Gain/(loss) on sales of real estate, excluding discontinued operations |
|
(150 |
) |
472 |
|
2,564 |
|
|||
|
Equity in (loss)/income of unconsolidated entities |
|
(88 |
) |
(98 |
) |
(402 |
) |
|||
|
Income tax (expense)/benefit, gross |
|
(795 |
) |
169 |
|
347 |
|
|||
|
Income from continuing operations before minority interests |
|
42,858 |
|
35,213 |
|
29,489 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Minority interest in income from continuing operations of consolidated subsidiaries |
|
|
|
|
|
|
|
|||
|
Common units in the Operating Partnership |
|
(5,659 |
) |
(5,710 |
) |
(5,233 |
) |
|||
|
Preferred units in the Operating Partnership |
|
(179 |
) |
(1,049 |
) |
(2,287 |
) |
|||
|
Other consolidated entities |
|
12 |
|
— |
|
59 |
|
|||
|
Income from continuing operations |
|
37,032 |
|
28,454 |
|
22,028 |
|
|||
|
Income from discontinued operations, net of minority interests |
|
— |
|
2,423 |
|
1,273 |
|
|||
|
Net Income |
|
37,032 |
|
30,877 |
|
23,301 |
|
|||
|
Preferred share dividends |
|
(16,329 |
) |
(12,003 |
) |
(10,134 |
) |
|||
|
Repurchase of preferred units in excess of recorded book value |
|
— |
|
(11,224 |
) |
— |
|
|||
|
Issuance costs associated with redeemed preferred shares |
|
(1,813 |
) |
— |
|
— |
|
|||
|
Net Income Available to Common Shareholders |
|
$ |
18,890 |
|
$ |
7,650 |
|
$ |
13,167 |
|
|
|
|
|
|
|
|
|
|
|||
|
For EPS Computations: |
|
|
|
|
|
|
|
|||
|
Numerator: |
|
|
|
|
|
|
|
|||
|
Net Income Available to Common Shareholders |
|
$ |
18,890 |
|
$ |
7,650 |
|
$ |
13,167 |
|
|
Dividends on convertible preferred shares |
|
21 |
|
— |
|
544 |
|
|||
|
Numerator for Diluted EPS Computation |
|
$ |
18,911 |
|
$ |
7,650 |
|
$ |
13,711 |
|
|
|
|
|
|
|
|
|
|
|||
|
Denominator: |
|
|
|
|
|
|
|
|||
|
Weighted Average Common Shares - Basic |
|
33,173 |
|
26,659 |
|
22,472 |
|
|||
|
Dilutive options |
|
1,675 |
|
1,362 |
|
878 |
|
|||
|
Preferred shares outstanding assuming conversion |
|
134 |
|
— |
|
1,197 |
|
|||
|
Weighted Average Common Shares - Diluted |
|
34,982 |
|
28,021 |
|
24,547 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings per diluted share |
|
$ |
0.54 |
|
$ |
0.27 |
|
$ |
0.56 |
|
12
Annual Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From
Operations (AFFO) and Earnings per diluted share, as adjusted
(Dollars and shares in thousands)
|
|
|
December 31 |
|
|||||||
|
|
|
2004 |
|
2003 |
|
2002 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
|
$ |
37,032 |
|
$ |
30,877 |
|
$ |
23,301 |
|
|
Preferred share dividends |
|
(16,329 |
) |
(12,003 |
) |
(10,134 |
) |
|||
|
Issuance costs associated with redeemed preferred shares |
|
(1,813 |
) |
— |
|
— |
|
|||
|
Combined real estate related depreciation and other amortization |
|
51,371 |
|
36,681 |
|
30,832 |
|
|||
|
Depreciation and amortization of unconsolidated real estate entities |
|
106 |
|
295 |
|
165 |
|
|||
|
Depreciation and amortization allocable to minority interests in other consol. entities |
|
(86 |
) |
— |
|
— |
|
|||
|
Minority interest - common units, gross |
|
5,659 |
|
6,712 |
|
5,800 |
|
|||
|
Gain on sale of real estate properties, excluding redevelopment |
|
(95 |
) |
(2,897 |
) |
(268 |
) |
|||
|
Funds From Operations (FFO) - Basic |
|
75,845 |
|
59,665 |
|
49,696 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Minority interest - preferred units |
|
— |
|
1,049 |
|
2,287 |
|
|||
|
Convertible preferred share dividends |
|
21 |
|
544 |
|
544 |
|
|||
|
Restricted common share dividends |
|
382 |
|
— |
|
283 |
|
|||
|
Expense on dilutive options |
|
— |
|
10 |
|
44 |
|
|||
|
Funds From Operations (FFO) - Diluted |
|
$ |
76,248 |
|
$ |
61,268 |
|
$ |
52,854 |
|
|
|
|
|
|
|
|
|
|
|||
|
Straight line rents |
|
(8,364 |
) |
(4,840 |
) |
(2,389 |
) |
|||
|
Accretion of intangible assets and liabilities classified as revenues |
|
(931 |
) |
(1,817 |
) |
(2,342 |
) |
|||
|
Issuance costs associated with redeemed preferred shares |
|
1,813 |
|
— |
|
— |
|
|||
|
Recurring capital improvements |
|
(17,394 |
) |
(11,456 |
) |
(6,640 |
) |
|||
|
Adjusted Funds from Operations - Diluted |
|
$ |
51,372 |
|
$ |
43,155 |
|
$ |
41,483 |
|
|
|
|
|
|
|
|
|
|
|||
|
Preferred dividends - redeemable non-convertible |
|
16,308 |
|
11,459 |
|
9,590 |
|
|||
|
Preferred dividends - redeemable convertible |
|
21 |
|
544 |
|
544 |
|
|||
|
Preferred distributions |
|
179 |
|
1,049 |
|
2,287 |
|
|||
|
Common distributions |
|
8,512 |
|
8,115 |
|
7,921 |
|
|||
|
Common dividends |
|
33,579 |
|
25,066 |
|
20,015 |
|
|||
|
Total Dividends/Distributions |
|
$ |
58,599 |
|
$ |
46,233 |
|
$ |
40,357 |
|
|
|
|
|
|
|
|
|
|
|||
|
Denominator for earnings per share - Diluted |
|
34,982 |
|
28,021 |
|
24,547 |
|
|||
|
Preferred shares outstanding assuming conversion |
|
— |
|
1,197 |
|
— |
|
|||
|
Common units |
|
8,726 |
|
8,932 |
|
9,282 |
|
|||
|
Restricted shares |
|
221 |
|
— |
|
326 |
|
|||
|
Dilutive options |
|
— |
|
43 |
|
58 |
|
|||
|
Convertible preferred units |
|
— |
|
1,101 |
|
2,421 |
|
|||
|
Denominator for funds from operations per share - Diluted |
|
43,929 |
|
39,294 |
|
36,634 |
|
|||
|
Restricted shares |
|
(221 |
) |
— |
|
— |
|
|||
|
Denominator for FFO per share - Diluted, excluding SFAS 141 |
|
43,708 |
|
39,294 |
|
36,634 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Funds From Operations (FFO) - Diluted |
|
$ |
76,248 |
|
$ |
61,268 |
|
$ |
52,854 |
|
|
Accretion of intangible assets and liabilities classified as revenues |
|
(931 |
) |
(1,817 |
) |
(2,342 |
) |
|||
|
Restricted share dividends |
|
(382 |
) |
— |
|
— |
|
|||
|
Funds From Operations (FFO) - Diluted, excluding SFAS 141 |
|
$ |
74,935 |
|
$ |
59,451 |
|
$ |
50,512 |
|
|
|
|
|
|
|
|
|
|
|||
|
Funds From Operations (FFO) - Diluted |
|
$ |
76,248 |
|
$ |
61,268 |
|
$ |
52,854 |
|
|
Issuance costs associated with redeemed preferred shares (1) |
|
1,813 |
|
— |
|
— |
|
|||
|
FFO diluted, as adjusted for issuance costs associated with redeemed preferred shares |
|
$ |
78,061 |
|
$ |
61,268 |
|
$ |
52,854 |
|
|
|
|
|
|
|
|
|
|
|||
|
Numerator for Diluted EPS Computation |
|
$ |
18,911 |
|
$ |
7,650 |
|
$ |
13,711 |
|
|
Issuance costs associated with redeemed preferred shares (1) |
|
1,813 |
|
— |
|
— |
|
|||
|
Dividends on convertible preferred shares |
|
— |
|
544 |
|
— |
|
|||
|
Expense on dilutive options |
|
— |
|
10 |
|
— |
|
|||
|
Repurchase of preferred units in excess of recorded book value (2) |
|
— |
|
11,224 |
|
— |
|
|||
|
Numerator for Diluted EPS Computation, as adjusted |
|
$ |
20,724 |
|
$ |
19,428 |
|
$ |
13,711 |
|
|
|
|
|
|
|
|
|
|
|||
|
Weighted Average Common Shares - Diluted |
|
34,982 |
|
28,021 |
|
24,547 |
|
|||
|
Dilutive options |
|
n/a |
|
43 |
|
n/a |
|
|||
|
Preferred shares assuming conversion |
|
n/a |
|
1,197 |
|
n/a |
|
|||
|
Weighted Average Common Shares - Diluted, as adjusted |
|
34,982 |
|
29,261 |
|
24,547 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares and the repurchase of preferred units in excess of recorded book value |
|
$ |
0.59 |
|
$ |
0.66 |
|
$ |
0.56 |
|
(1) Earnings per diluted share and FFO per diluted share have been adjusted to exclude the issuance costs associated with our Series B redeemed preferred shares.
(2) Earnings per diluted share has been adjusted to exclude the effect of the repurchase of preferred units in excess of recorded book value.
13
Annual Consolidated Reconciliation of Earnings Before Interest,
Income Taxes, Depreciation and Amortization (EBITDA)
(Dollars and shares in thousands)
|
|
|
December 31 |
|
|||||||
|
|
|
2004 |
|
2003 |
|
2002 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
Net Income |
|
$ |
37,032 |
|
$ |
30,877 |
|
$ |
23,301 |
|
|
Combined interest expense |
|
44,263 |
|
41,179 |
|
39,358 |
|
|||
|
Amortization of deferred financing costs |
|
2,431 |
|
2,767 |
|
2,501 |
|
|||
|
Income tax (expense)/benefit, gross |
|
(795 |
) |
(169 |
) |
(347 |
) |
|||
|
Depreciation of furniture, fixtures and equipment |
|
532 |
|
460 |
|
508 |
|
|||
|
Combined real estate related depreciation and other amortization |
|
51,371 |
|
36,681 |
|
30,832 |
|
|||
|
Gain on sale of depreciated real estate properties |
|
(95 |
) |
(2,897 |
) |
(268 |
) |
|||
|
Minority interest - preferred units |
|
179 |
|
1,049 |
|
2,287 |
|
|||
|
Minority interest - common units, gross |
|
5,659 |
|
6,712 |
|
5,800 |
|
|||
|
Minority interestholders’ share of operations |
|
— |
|
— |
|
(59 |
) |
|||
|
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) |
|
$ |
140,577 |
|
$ |
116,659 |
|
$ |
103,913 |
|
|
|
|
|
|
|
|
|
|
|||
|
Common dividends for Earnings Payout Ratio |
|
$ |
33,579 |
|
$ |
25,066 |
|
$ |
19,732 |
|
|
Common distributions |
|
8,512 |
|
8,115 |
|
7,921 |
|
|||
|
Common dividends on restricted shares |
|
— |
|
— |
|
283 |
|
|||
|
Convertible preferred dividends |
|
21 |
|
544 |
|
544 |
|
|||
|
Convertible preferred unit distributions |
|
— |
|
1,049 |
|
2,287 |
|
|||
|
Dividends and distributions for FFO and AFFO Payout Ratio |
|
$ |
42,112 |
|
$ |
34,774 |
|
$ |
30,767 |
|
14
(Amounts in thousands except per share data, share prices and ratios)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
Common Equity - End of Quarter |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Shares |
|
36,842 |
|
36,635 |
|
33,952 |
|
30,976 |
|
29,397 |
|
|||||
|
Common Units |
|
8,544 |
|
8,634 |
|
8,754 |
|
8,826 |
|
8,870 |
|
|||||
|
Total |
|
45,386 |
|
45,269 |
|
42,706 |
|
39,803 |
|
38,267 |
|
|||||
|
End of Quarter Common Share Price |
|
$ |
29.35 |
|
$ |
25.62 |
|
$ |
24.85 |
|
$ |
25.00 |
|
$ |
21.00 |
|
|
Market Value of Common Shares/Units |
|
$ |
1,332,079 |
|
$ |
1,159,792 |
|
$ |
1,061,244 |
|
$ |
995,064 |
|
$ |
803,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Shares Trading Volume |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Daily Volume (Shares) |
|
140 |
|
135 |
|
187 |
|
126 |
|
89 |
|
|||||
|
Average Daily Volume (Dollars in thousands) |
|
$ |
3,829.59 |
|
$ |
3,432.70 |
|
$ |
4,226.56 |
|
$ |
2,853.28 |
|
$ |
1,828.61 |
|
|
As a Percentage of Common Shares |
|
0.4 |
% |
0.4 |
% |
0.6 |
% |
0.4 |
% |
0.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Share Price Range |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Quarterly High |
|
$ |
29.37 |
|
$ |
26.91 |
|
$ |
25.10 |
|
$ |
25.05 |
|
$ |
22.40 |
|
|
Quarterly Low |
|
$ |
25.70 |
|
$ |
24.09 |
|
$ |
19.00 |
|
$ |
20.28 |
|
$ |
18.51 |
|
|
Quarterly Average |
|
$ |
27.39 |
|
$ |
25.38 |
|
$ |
22.55 |
|
$ |
22.62 |
|
$ |
20.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Convertible Preferred Equity - End of Quarter |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Convertible Series D Preferred Shares Outstanding (1) |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
544 |
|
|||||
|
Conversion Ratio |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
2.200 |
|
|||||
|
Common Shares Issued Assuming Conversion |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
1,197 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Convertible Series I Preferred Units Outstanding (2) |
|
352 |
|
352 |
|
n/a |
|
n/a |
|
n/a |
|
|||||
|
Conversion Ratio |
|
0.5000 |
|
0.5000 |
|
n/a |
|
n/a |
|
n/a |
|
|||||
|
Common Shares Issued Assuming Conversion |
|
176 |
|
176 |
|
n/a |
|
n/a |
|
n/a |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Nonconvertible Preferred Equity - End of Quarter |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Redeemable Series B Shares Outstanding (3) |
|
— |
|
— |
|
1,250 |
|
1,250 |
|
1,250 |
|
|||||
|
Redeemable Series E Shares Outstanding |
|
1,150 |
|
1,150 |
|
1,150 |
|
1,150 |
|
1,150 |
|
|||||
|
Redeemable Series F Shares Outstanding |
|
1,425 |
|
1,425 |
|
1,425 |
|
1,425 |
|
1,425 |
|
|||||
|
Redeemable Series G Shares Outstanding |
|
2,200 |
|
2,200 |
|
2,200 |
|
2,200 |
|
2,200 |
|
|||||
|
Redeemable Series H Shares Outstanding (4) |
|
2,000 |
|
2,000 |
|
2,000 |
|
2,000 |
|
2,000 |
|
|||||
|
Total Nonconvertible Preferred Equity |
|
6,775 |
|
6,775 |
|
8,025 |
|
8,025 |
|
8,025 |
|
|||||
|
Total Convertible Preferred Equity |
|
352 |
|
352 |
|
n/a |
|
n/a |
|
544 |
|
|||||
|
Total Preferred Equity |
|
7,127 |
|
7,127 |
|
8,025 |
|
8,025 |
|
8,569 |
|
|||||
|
Preferred Share Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
|
Recorded Book Value of Preferred Equity |
|
$ |
178,175 |
|
$ |
178,175 |
|
$ |
200,625 |
|
$ |
200,625 |
|
$ |
214,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Weighted Average Shares: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Shares Outstanding |
|
36,296 |
|
33,797 |
|
32,743 |
|
29,814 |
|
28,951 |
|
|||||
|
Preferred Shares Outstanding Assuming Conversion |
|
— |
|
— |
|
— |
|
539 |
|
1,197 |
|
|||||
|
Restricted shares |
|
238 |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Dilutive options |
|
1,638 |
|
1,655 |
|
1,639 |
|
1,749 |
|
1,663 |
|
|||||
|
Common Units |
|
8,588 |
|
8,690 |
|
8,765 |
|
8,863 |
|
8,870 |
|
|||||
|
Denominator for funds from operations per share - diluted |
|
46,760 |
|
44,142 |
|
43,147 |
|
40,965 |
|
40,681 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Recorded Book Value of Preferred Shares |
|
$ |
178,175 |
|
$ |
178,175 |
|
$ |
200,625 |
|
$ |
200,625 |
|
$ |
214,225 |
|
|
Market Value of Common Shares/Units |
|
1,332,079 |
|
1,159,792 |
|
1,061,244 |
|
995,064 |
|
803,607 |
|
|||||
|
Total Equity Market Capitalization |
|
$ |
1,510,254 |
|
$ |
1,337,967 |
|
$ |
1,261,869 |
|
$ |
1,195,689 |
|
$ |
1,017,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Debt |
|
$ |
1,022,688 |
|
$ |
947,332 |
|
$ |
820,344 |
|
$ |
829,755 |
|
$ |
738,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Market Capitalization |
|
$ |
2,532,942 |
|
$ |
2,285,299 |
|
$ |
2,082,213 |
|
$ |
2,025,444 |
|
$ |
1,756,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt to Total Market Capitalization |
|
40.4 |
% |
41.5 |
% |
39.4 |
% |
41.0 |
% |
42.1 |
% |
|||||
|
Debt to Total Assets |
|
59.0 |
% |
57.4 |
% |
55.0 |
% |
57.9 |
% |
55.5 |
% |
|||||
|
Debt to Undepreciated Book Value of Real Estate Assets |
|
58.3 |
% |
56.2 |
% |
54.5 |
% |
57.1 |
% |
54.8 |
% |
|||||
(1) On February 11, 2004, all of the Series D preferred shares were converted into 1,196,800 common shares.
(2) On September 23, 2004, we issued 352,000 Series I convertible preferred units at a value of $25.00 per unit.
(3) On July 15, 2004, we redeemed 100% of the outstanding 1,250,000 Series B preferred shares and paid a prorated dividend of $.1042 per share for the third quarter 2004.
(4) On December 18, 2003, we issued 2,000,000 Series H preferred shares and recorded a prorated dividend of $.0729 per share for the fourth quarter.
15
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
Debt Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage Loans |
|
$ |
792,125 |
|
$ |
793,755 |
|
$ |
612,936 |
|
$ |
637,387 |
|
$ |
686,129 |
|
|
Construction Loans |
|
26,963 |
|
31,977 |
|
23,408 |
|
18,368 |
|
20,894 |
|
|||||
|
Revolving Credit Facility |
|
— |
|
— |
|
— |
|
— |
|
18,900 |
|
|||||
|
Secured Revolving Credit Facility |
|
— |
|
— |
|
— |
|
— |
|
12,775 |
|
|||||
|
Unsecured Revolving Credit Facility |
|
203,600 |
|
121,600 |
|
184,000 |
|
174,000 |
|
— |
|
|||||
|
|
|
$ |
1,022,688 |
|
$ |
947,332 |
|
$ |
820,344 |
|
$ |
829,755 |
|
$ |
738,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Outstanding Balance |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage Loans |
|
$ |
792,876 |
|
$ |
644,324 |
|
$ |
635,134 |
|
$ |
687,012 |
|
$ |
672,422 |
|
|
Construction Loans |
|
31,147 |
|
23,843 |
|
20,873 |
|
8,271 |
|
12,865 |
|
|||||
|
Revolving Credit Facility |
|
— |
|
— |
|
— |
|
14,429 |
|
18,900 |
|
|||||
|
Secured Revolving Credit Facility |
|
— |
|
— |
|
— |
|
22,609 |
|
51,910 |
|
|||||
|
Unsecured Revolving Credit Facility |
|
155,422 |
|
202,573 |
|
175,494 |
|
34,681 |
|
— |
|
|||||
|
|
|
$ |
979,445 |
|
$ |
870,740 |
|
$ |
831,501 |
|
$ |
767,002 |
|
$ |
756,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest Rate Structure |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Fixed |
|
$ |
738,648 |
|
$ |
725,696 |
|
$ |
537,088 |
|
$ |
563,624 |
|
$ |
548,540 |
|
|
Variable |
|
234,040 |
|
171,636 |
|
233,256 |
|
216,131 |
|
90,158 |
|
|||||
|
Variable Subject to Interest Rate Protection (1 - 2) |
|
50,000 |
|
50,000 |
|
50,000 |
|
50,000 |
|
100,000 |
|
|||||
|
|
|
$ |
1,022,688 |
|
$ |
947,332 |
|
$ |
820,344 |
|
$ |
829,755 |
|
$ |
738,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
% of Fixed Rate Loans (3) |
|
77.12 |
% |
81.88 |
% |
71.57 |
% |
73.95 |
% |
87.80 |
% |
|||||
|
% of Variable Rate Loans |
|
22.88 |
% |
18.12 |
% |
28.43 |
% |
26.05 |
% |
12.20 |
% |
|||||
|
|
|
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
100.00 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Average Interest Rates |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Mortgage & Construction Loans |
|
6.10 |
% |
6.24 |
% |
6.23 |
% |
5.97 |
% |
5.92 |
% |
|||||
|
Revolving Credit Facility |
|
n/a |
|
n/a |
|
n/a |
|
3.01 |
% |
3.02 |
% |
|||||
|
Secured Revolving Credit Facility |
|
n/a |
|
n/a |
|
n/a |
|
5.54 |
% |
4.48 |
% |
|||||
|
Unsecured Revolving Credit Facility |
|
3.48 |
% |
3.04 |
% |
2.92 |
% |
3.19 |
% |
n/a |
|
|||||
|
Total Weighted Average |
|
5.85 |
% |
5.63 |
% |
5.53 |
% |
5.78 |
% |
5.75 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt Ratios |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt to Total Market Capitalization |
|
40.4 |
% |
41.5 |
% |
39.4 |
% |
41.0 |
% |
42.1 |
% |
|||||
|
Debt to Undepreciated Book Value of Real Estate Assets |
|
58.3 |
% |
56.2 |
% |
54.5 |
% |
57.1 |
% |
54.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Coverage Ratios (excluding capitalized interest) — All coverage computations include the effect of discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest Coverage - Combined NOI |
|
3.28 |
x |
3.40 |
x |
3.73 |
x |
3.31 |
x |
3.12 |
x |
|||||
|
(Combined NOI / Combined Interest) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest Coverage - EBITDA |
|
3.04 |
x |
3.20 |
x |
3.52 |
x |
3.13 |
x |
2.93 |
x |
|||||
|
(EBITDA / Combined Interest) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt Service Coverage - Combined NOI |
|
2.21 |
x |
2.22 |
x |
2.49 |
x |
2.01 |
x |
2.49 |
x |
|||||
|
(Combined NOI / (Combined Interest + Principal Amortization)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Debt Service Coverage - EBITDA |
|
2.05 |
x |
2.09 |
x |
2.35 |
x |
1.90 |
x |
2.34 |
x |
|||||
|
(EBITDA / (Combined Interest + Principal Amortization)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Fixed Charge Coverage - Combined NOI |
|
2.52 |
x |
2.52 |
x |
2.63 |
x |
2.31 |
x |
2.30 |
x |
|||||
|
(Combined NOI / (Combined Interest + Preferred Distribution)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Fixed Charge Coverage - EBITDA |
|
2.33 |
x |
2.37 |
x |
2.48 |
x |
2.18 |
x |
2.16 |
x |
|||||
|
(EBITDA / (Combined Interest + Preferred Distribution)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 2.308% which expired January 3, 2005.
(2) We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 1.52% which expired January 7, 2004.
(3) Includes interest rate protection agreements.
16
(Dollars in thousands except per share data and ratios)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
OPERATING RATIOS — All computations include the effect of discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net Income as a % of Combined Real Estate Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Net Income / Combined Real Estate Revenues) |
|
16.12 |
% |
18.36 |
% |
16.41 |
% |
18.36 |
% |
17.33 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Combined NOI as a % of Combined Real Estate Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(Combined NOI / Combined Real Estate Revenues) |
|
70.71 |
% |
69.49 |
% |
72.82 |
% |
69.29 |
% |
70.22 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
EBITDA as a % of Combined Real Estate Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(EBITDA / Combined Real Estate Revenues) |
|
65.58 |
% |
65.38 |
% |
68.69 |
% |
65.50 |
% |
65.93 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
G&A as a % of Net Income |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(G&A / Net Income) |
|
36.70 |
% |
27.67 |
% |
28.12 |
% |
25.42 |
% |
27.78 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
G&A as a % of Combined Real Estate Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(G&A / Combined Real Estate Revenues) |
|
5.91 |
% |
5.08 |
% |
4.61 |
% |
4.67 |
% |
4.81 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
G&A as a % of EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(G&A / EBITDA) |
|
9.02 |
% |
7.77 |
% |
6.72 |
% |
7.13 |
% |
7.30 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Quarter end occupancy for operating portfolio |
|
93.98 |
% |
93.04 |
% |
92.92 |
% |
91.85 |
% |
91.24 |
% |
|||||
|
Quarter end % leased for operating portfolio |
|
94.96 |
% |
94.87 |
% |
94.38 |
% |
93.76 |
% |
92.78 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Recurring Capital Improvements |
|
$ |
4,695 |
|
$ |
4,679 |
|
$ |
4,997 |
|
$ |
3,023 |
|
$ |
3,714 |
|
|
Recurring Capital Improvements per average square foot |
|
$ |
0.40 |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.29 |
|
$ |
0.37 |
|
|
Recurring Capital Improvements as a % of NOI (Combined NOI) |
|
11.33 |
% |
12.68 |
% |
12.73 |
% |
8.91 |
% |
11.35 |
% |
|||||
17
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
Common Share Dividends |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Dividends per share/unit |
|
$ |
0.255 |
|
$ |
0.255 |
|
$ |
0.235 |
|
$ |
0.235 |
|
$ |
0.235 |
|
|
Increase over prior quarter |
|
0.0 |
% |
8.5 |
% |
0.0 |
% |
0.0 |
% |
6.8 |
% |
|||||
|
Increase over prior year |
|
8.5 |
% |
8.5 |
% |
6.8 |
% |
6.8 |
% |
6.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Dividend Payout Ratios |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Payout - Earnings |
|
160.4 |
% |
222.4 |
% |
178.7 |
% |
158.2 |
% |
158.6 |
% |
|||||
|
(Common Dividends/ Net Income (Loss) Available to Common Shareholders) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Payout - FFO - Diluted |
|
55.4 |
% |
65.9 |
% |
46.4 |
% |
56.9 |
% |
55.8 |
% |
|||||
|
((Common Dividend + Total Distributions + Convertible Preferred Share Dividends)/FFO) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Payout - AFFO - Diluted |
|
87.9 |
% |
97.3 |
% |
71.2 |
% |
76.0 |
% |
81.6 |
% |
|||||
|
((Common Dividend + Total Distributions + Convertible Preferred Share Dividends) /AFFO) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Dividend Coverage - FFO - Diluted |
|
1.81 |
x |
1.52 |
x |
2.16 |
x |
1.76 |
x |
1.79 |
x |
|||||
|
(FFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Dividend Coverage - AFFO - Diluted |
|
1.14 |
x |
1.03 |
x |
1.40 |
x |
1.32 |
x |
1.23 |
x |
|||||
|
(AFFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends)) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common Dividend Yields |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Dividend Yield |
|
3.48 |
% |
3.98 |
% |
3.78 |
% |
3.76 |
% |
4.48 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series I Preferred Unit Distributions (1) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Unit Distributions Per Unit |
|
$ |
0.46875 |
|
$ |
0.46875 |
|
n/a |
|
n/a |
|
n/a |
|
|||
|
Preferred Unit Distributions Yield |
|
7.50 |
% |
7.50 |
% |
n/a |
|
n/a |
|
n/a |
|
|||||
|
Quarter End Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
n/a |
|
n/a |
|
n/a |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series B Preferred Share Dividends (2) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
n/a |
|
n/a |
|
$ |
0.62500 |
|
$ |
0.62500 |
|
$ |
0.62500 |
|
||
|
Preferred Share Dividend Yield |
|
n/a |
|
n/a |
|
10.00 |
% |
10.00 |
% |
10.00 |
% |
|||||
|
Quarter End Recorded Book Value |
|
n/a |
|
n/a |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series D Preferred Share Dividends (3) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
$ |
0.25000 |
|
||||
|
Preferred Share Dividend Yield |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
4.00 |
% |
|||||
|
Quarter End Recorded Book Value |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
$ |
25.00 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series E Preferred Share Dividends |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
$ |
0.64063 |
|
$ |
0.64063 |
|
$ |
0.64063 |
|
$ |
0.64063 |
|
$ |
0.64063 |
|
|
Preferred Share Dividend Yield |
|
10.25 |
% |
10.25 |
% |
10.25 |
% |
10.25 |
% |
10.25 |
% |
|||||
|
Quarter End Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series F Preferred Share Dividends |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
$ |
0.61719 |
|
$ |
0.61719 |
|
$ |
0.61719 |
|
$ |
0.61719 |
|
$ |
0.61719 |
|
|
Preferred Share Dividend Yield |
|
9.875 |
% |
9.875 |
% |
9.875 |
% |
9.875 |
% |
9.875 |
% |
|||||
|
Quarter End Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series G Preferred Share Dividends |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
$ |
0.50000 |
|
$ |
0.50000 |
|
$ |
0.50000 |
|
$ |
0.50000 |
|
$ |
0.50000 |
|
|
Preferred Share Dividend Yield |
|
8.000 |
% |
8.000 |
% |
8.000 |
% |
8.000 |
% |
8.000 |
% |
|||||
|
Quarter End Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Series H Preferred Share Dividends (4) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Preferred Share Dividends Per Share |
|
$ |
0.46875 |
|
$ |
0.46875 |
|
$ |
0.46875 |
|
$ |
0.46875 |
|
$ |
0.46875 |
|
|
Preferred Share Dividend Yield |
|
7.500 |
% |
7.500 |
% |
7.500 |
% |
7.500 |
% |
7.500 |
% |
|||||
|
Quarter End Recorded Book Value |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
$ |
25.00 |
|
(1) On September 23, 2004, we issued 352,000 Series I convertible preferred units for $8.8 million or $50.00 per common share, on an as-if converted basis.
(2) On July 15, 2004, we redeemed 100% of the outstanding 1,250,000 Series B preferred shares and paid a prorated dividend of $.1042 per share for the third quarter 2004.
(3) On February 11, 2004, all of the Series D preferred shares were converted into 1,196,800 common shares.
(4) On December 18, 2003, we issued 2,000,000 Series H preferred shares and recorded a prorated dividend of $.0729 per share for the fourth quarter.
18
Investor Composition and Analyst Coverage
(as of December 31, 2004)
|
SHAREHOLDER CLASSIFICATION |
|
Common |
|
Common |
|
As if Converted |
|
Total |
|
Fully Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insiders |
|
957,046 |
|
7,582,238 |
|
— |
|
8,539,284 |
|
18.74 |
% |
|
Institutional Ownership |
|
30,814,842 |
|
— |
|
— |
|
30,814,842 |
|
67.63 |
% |
|
Other / Retail |
|
5,070,220 |
|
961,970 |
|
176,000 |
|
6,208,190 |
|
13.63 |
% |
|
|
|
36,842,108 |
|
8,544,208 |
|
176,000 |
|
45,562,316 |
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESEARCH COVERAGE |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. G. Edwards |
|
x |
|
x |
|
x |
|
x |
|
x |
|
|
Credit Suisse First Boston |
|
x |
|
x |
|
n/a |
|
n/a |
|
x |
|
|
Ferris, Baker Watts, Incorporated |
|
n/a |
|
n/a |
|
n/a |
|
x |
|
x |
|
|
Legg Mason Wood Walker, Inc. |
|
x |
|
x |
|
x |
|
x |
|
x |
|
|
Maxcor Financial Group, Inc. |
|
x |
|
x |
|
x |
|
x |
|
x |
|
|
McDonald Investments |
|
x |
|
x |
|
x |
|
x |
|
x |
|
|
Raymond James |
|
x |
|
x |
|
x |
|
x |
|
x |
|
|
Robert W. Baird & Co. Incorporated |
|
x |
|
n/a |
|
n/a |
|
n/a |
|
n/a |
|
|
Stifel, Nicolaus & Company, Incorporated |
|
x |
|
x |
|
n/a |
|
n/a |
|
n/a |
|
|
Wachovia Securities |
|
x |
|
x |
|
x |
|
x |
|
x |
|
Source: Institutional ownership was obtained from filed Forms 13(f) as of September 30, 2004 per Vickers Stock Research Corporation.
19
Debt Maturity Schedule - December 31, 2004
(Dollars in thousands)
|
|
|
Non-Recourse Debt (1) |
|
Recourse Debt (1) |
|
|
|
||||||||||||
|
Year of Maturity |
|
Annual |
|
Due on |
|
Annual |
|
Due on |
|
Wachovia |
|
Total Scheduled |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2005 |
|
$ |
14,410 |
|
$ |
18,896 |
|
$ |
4,258 |
|
$ |
22,482 |
|
$ |
— |
|
$ |
60,046 |
|
|
2006 |
|
14,780 |
|
59,975 |
|
4,164 |
|
— |
|
— |
|
78,919 |
|
||||||
|
2007 |
|
13,515 |
|
65,698 |
|
4,199 |
|
4,407 |
|
— |
|
87,819 |
|
||||||
|
2008 |
|
11,571 |
|
142,903 |
|
549 |
|
57,832 |
|
203,600 |
|
416,455 |
|
||||||
|
2009 |
|
7,971 |
|
52,228 |
|
589 |
|
— |
|
— |
|
60,788 |
|
||||||
|
2010 (3) |
|
7,351 |
|
52,177 |
|
50 |
|
12,481 |
|
— |
|
72,059 |
|
||||||
|
2011 |
|
5,449 |
|
102,264 |
|
— |
|
— |
|
— |
|
107,713 |
|
||||||
|
2012 |
|
3,851 |
|
35,972 |
|
— |
|
— |
|
— |
|
39,823 |
|
||||||
|
2013 |
|
1,178 |
|
96,310 |
|
— |
|
— |
|
— |
|
97,488 |
|
||||||
|
|
|
$ |
80,076 |
|
$ |
626,423 |
|
$ |
13,809 |
|
$ |
97,202 |
|
$ |
203,600 |
|
$ |
1,021,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Net premium / (discount) to adjust to fair value of debt |
|
1,578 |
|
||||||||||||
|
|
|
|
|
Debt per the Balance Sheet |
|
$ |
1,022,688 |
|
|||||||||||
Notes:
(1) Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The maturity dates presented above in the table assume that the extension options have already been exercised.
(2) We have the right to extend the Wachovia Revolver for a one-year period, subject to certain conditions, upon maturity in March 2007. The maturity date presented in the above table assumes that the extension option has already been exercised.
(3) We assumed that our $9.8 million non-recourse loan that matures in September 2025 will be called in October 2010. The above table includes the $8.5 million amount due on maturity in 2010.
20
Property Summary by Region - December 31, 2004
|
Operating |
|
|
|
Submarket |
|
Business Park |
|
Year Built or |
|
Single |
|
Total |
|
Total Square |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office Properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baltimore /Washington Corridor |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
2730 Hercules Road |
|
BWI Airport |
|
NBP |
|
1990 |
|
M |
|
240,336 |
|
|
|
|
|
|
304 Carina Road (304 NBP) |
|
BWI Airport |
|
NBP |
|
|
|
M |
|
|
|
162,498 |
|
|
|
|
306 Carina Road (306 NBP) |
|
BWI Airport |
|
NBP |
|
|
|
M |
|
|
|
160,000 |
|
|
2 |
|
2720 Technology Drive (220 NBP) |
|
BWI Airport |
|
NBP |
|
2004 |
|
M |
|
156,730 |
|
|
|
|
3 |
|
2711 Technology Drive (211 NBP) |
|
BWI Airport |
|
NBP |
|
2002 |
|
M |
|
152,000 |
|
|
|
|
|
|
318 Carina Road (318 NBP) |
|
BWI Airport |
|
NBP |
|
|
|
M |
|
|
|
125,847 |
|
|
4 |
|
140 National Business Parkway |
|
BWI Airport |
|
NBP |
|
2003 |
|
M |
|
119,904 |
|
|
|
|
5 |
|
132 National Business Parkway |
|
BWI Airport |
|
NBP |
|
2000 |
|
M |
|
118,456 |
|
|
|
|
6 |
|
2721 Technology Drive (221 NBP) |
|
BWI Airport |
|
NBP |
|
2000 |
|
M |
|
118,093 |
|
|
|
|
7 |
|
2701 Technology Drive (201 NBP) |
|
BWI Airport |
|
NBP |
|
2001 |
|
M |
|
117,450 |
|
|
|
|
|
|
2691 Technology Drive (191 NBP) |
|
BWI Airport |
|
NBP |
|
|
|
M |
|
|
|
103,683 |
|
|
8 |
|
134 National Business Parkway |
|
BWI Airport |
|
NBP |
|
1999 |
|
M |
|
93,482 |
|
|
|
|
9 |
|
133 National Business Parkway |
|
BWI Airport |
|
NBP |
|
1997 |
|
M |
|
88,666 |
|
|
|
|
10 |
|
141 National Business Parkway |
|
BWI Airport |
|
NBP |
|
1990 |
|
M |
|
87,318 |
|
|
|
|
11 |
|
135 National Business Parkway |
|
BWI Airport |
|
NBP |
|
1998 |
|
M |
|
86,863 |
|
|
|
|
12 |
|
131 National Business Parkway |
|
BWI Airport |
|
NBP |
|
1990 |
|
M |
|
69,039 |
|
|
|
|
13 |
|
114 National Business Parkway |
|
BWI Airport |
|
NBP |
|
2002 |
|
M |
|
9,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,458,054 |
|
552,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
1306 Concourse Drive |
|
BWI Airport |
|
APS |
|
1990 |
|
M |
|
114,046 |
|
|
|
|
2 |
|
870-880 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1981 |
|
M |
|
105,151 |
|
|
|
|
3 |
|
1304 Concourse Drive |
|
BWI Airport |
|
APS |
|
2002 |
|
M |
|
102,964 |
|
|
|
|
4 |
|
900 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1982 |
|
M |
|
97,261 |
|
|
|
|
5 |
|
1199 Winterson Road |
|
BWI Airport |
|
APS |
|
1988 |
|
M |
|
96,636 |
|
|
|
|
6 |
|
920 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1982 |
|
M |
|
96,566 |
|
|
|
|
7 |
|
1302 Concourse Drive |
|
BWI Airport |
|
APS |
|
1996 |
|
M |
|
84,505 |
|
|
|
|
8 |
|
881 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1986 |
|
M |
|
73,572 |
|
|
|
|
9 |
|
1099 Winterson Road |
|
BWI Airport |
|
APS |
|
1988 |
|
M |
|
71,076 |
|
|
|
|
10 |
|
1190 Winterson Road |
|
BWI Airport |
|
APS |
|
1987 |
|
M |
|
69,024 |
|
|
|
|
11 |
|
849 International Drive |
|
BWI Airport |
|
APS |
|
1988 |
|
M |
|
68,865 |
|
|
|
|
12 |
|
911 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1985 |
|
M |
|
68,296 |
|
|
|
|
13 |
|
1201 Winterson Road |
|
BWI Airport |
|
APS |
|
1985 |
|
M |
|
67,903 |
|
|
|
|
14 |
|
999 Corporate Boulevard |
|
BWI Airport |
|
APS |
|
2000 |
|
M |
|
67,456 |
|
|
|
|
15 |
|
891 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1984 |
|
M |
|
57,857 |
|
|
|
|
16 |
|
930 International Drive |
|
BWI Airport |
|
APS |
|
1986 |
|
S |
|
57,409 |
|
|
|
|
17 |
|
800 International Drive |
|
BWI Airport |
|
APS |
|
1988 |
|
S |
|
57,379 |
|
|
|
|
18 |
|
901 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1984 |
|
M |
|
57,294 |
|
|
|
|
19 |
|
900 International Drive |
|
BWI Airport |
|
APS |
|
1986 |
|
S |
|
57,140 |
|
|
|
|
20 |
|
921 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1983 |
|
M |
|
54,175 |
|
|
|
|
21 |
|
939 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1983 |
|
M |
|
53,031 |
|
|
|
|
22 |
|
938 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1984 |
|
M |
|
52,988 |
|
|
|
|
23 |
|
940 Elkridge Landing Road |
|
BWI Airport |
|
APS |
|
1984 |
|
M |
|
51,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,682,298 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
7467 Ridge Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1990 |
|
M |
|
74,326 |
|
|
|
|
2 |
|
7240 Parkway Drive |
|
BWI Airport |
|
Comm./Pkwy. |
|
1985 |
|
M |
|
73,960 |
|
|
|
|
3 |
|
7318 Parkway Drive |
|
BWI Airport |
|
Comm./Pkwy. |
|
1984 |
|
M |
|
59,204 |
|
|
|
|
4 |
|
7320 Parkway Drive |
|
BWI Airport |
|
Comm./Pkwy. |
|
1983 |
|
S |
|
58,453 |
|
|
|
|
5 |
|
1340 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
46,400 |
|
|
|
|
6 |
|
7321 Parkway Drive |
|
BWI Airport |
|
Comm./Pkwy. |
|
1984 |
|
S |
|
39,822 |
|
|
|
|
7 |
|
1334 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
37,565 |
|
|
|
|
8 |
|
1331 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
29,936 |
|
|
|
|
9 |
|
1350 Dorsey Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
19,992 |
|
|
|
|
10 |
|
1344 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
M |
|
17,061 |
|
|
|
|
11 |
|
1341 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
15,841 |
|
|
|
|
12 |
|
1343 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1989 |
|
S |
|
9,962 |
|
|
|
|
13 |
|
1348 Ashton Road |
|
BWI Airport |
|
Comm./Pkwy. |
|
1988 |
|
S |
|
3,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
485,630 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49 |
|
Subtotal (continued on next page) |
|
|
|
|
|
|
|
|
|
3,625,982 |
|
552,028 |
|
21
Property Summary by Region - December 31, 2004 (continued)
|
Operating |
|
|
|
Submarket |
|
Business Park |
|
Year Built or |
|
Single |
|
Total |
|
Total Square |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49 |
|
Subtotal (continued from prior page) |
|
|
|
|
|
|
|
|
|
3,625,982 |
|
552,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
2500 Riva Road |
|
Annapolis |
|
|
|
2000 |
|
M |
|
155,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
9140 Route 108 |
|
Howard Co. Perimeter |
|
Oakland |
|
1985 |
|
S |
|
150,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
7000 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1999 |
|
M |
|
145,806 |
|
|
|
|
2 |
|
6731 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2002 |
|
M |
|
123,885 |
|
|
|
|
3 |
|
6940 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1999 |
|
M |
|
108,847 |
|
|
|
|
4 |
|
6950 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1998 |
|
M |
|
107,778 |
|
|
|
|
5 |
|
7067 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2001 |
|
M |
|
82,953 |
|
|
|
|
|
|
8621 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
|
|
M |
|
|
|
82,000 |
|
|
6 |
|
6750 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2001 |
|
M |
|
78,460 |
|
|
|
|
7 |
|
6700 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1988 |
|
M |
|
74,852 |
|
|
|
|
8 |
|
6740 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1992 |
|
M |
|
61,957 |
|
|
|
|
9 |
|
8671 Robert Fulton Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2002 |
|
S |
|
56,350 |
|
|
|
|
10 |
|
6716 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1990 |
|
M |
|
52,002 |
|
|
|
|
11 |
|
8661 Robert Fulton Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2002 |
|
S |
|
49,500 |
|
|
|
|
12 |
|
7065 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2000 |
|
S |
|
38,560 |
|
|
|
|
13 |
|
7063 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2000 |
|
S |
|
36,936 |
|
|
|
|
14 |
|
6760 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1991 |
|
M |
|
36,309 |
|
|
|
|
15 |
|
6708 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
1988 |
|
M |
|
35,040 |
|
|
|
|
16 |
|
7061 Columbia Gateway Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2000 |
|
M |
|
29,604 |
|
|
|
|
17 |
|
6724 Alexander Bell Drive |
|
Howard Co. Perimeter |
|
Columbia Gateway |
|
2001 |
|
M |
|
28,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,147,259 |
|
82,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
7200 Riverwood Drive |
|
Howard Co. Perimeter |
|
Rivers 95 |
|
1986 |
|
S |
|
160,000 |
|
|
|
|
2 |
|
9140 Guilford Road |
|
Howard Co. Perimeter |
|
Rivers 95 |
|
1983 |
|
S |
|
41,704 |
|
|
|
|
3 |
|
9160 Guilford Road |
|
Howard Co. Perimeter |
|
Rivers 95 |
|
1984 |
|
M |
|
36,528 |
|
|
|
|
4 |
|
9150 Guilford Road |
|
Howard Co. Perimeter |
|
Rivers 95 |
|
1984 |
|
S |
|
17,655 |
|
|
|
|
5 |
|
9130 Guilford Road |
|
Howard Co. Perimeter |
|
Rivers 95 |
|
1984 |
|
S |
|
13,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
269,587 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73 |
|
Total Baltimore / Washington Corridor |
|
|
|
|
|
|
|
|
|
5,347,828 |
|
634,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
11800 Tech Road |
|
North Silver Spring |
|
Montgomery Industrial |
|
1989 |
|
M |
|
235,954 |
|
|
|
|
2 |
|
400 Professional Drive |
|
Gaithersburg |
|
Crown Point |
|
2000 |
|
M |
|
129,030 |
|
|
|
|
3 |
|
14502 Greenview Drive |
|
Laurel |
|
|
|
1988 |
|
M |
|
72,392 |
|
|
|
|
4 |
|
14504 Greenview Drive |
|
Laurel |
|
|
|
1985 |
|
M |
|
69,334 |
|
|
|
|
5 |
|
4230 Forbes Boulevard |
|
Lanham |
|
Forbes 50 |
|
2003 |
|
S |
|
55,867 |
|
|
|
|
|
|
Total Suburban Maryland |
|
|
|
|
|
|
|
|
|
562,577 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
10150 York Road |
|
North Baltimore Co. |
|
|
|
1985 |
|
M |
|
176,689 |
|
|
|
|
2 |
|
9690 Deereco Road |
|
North Baltimore Co. |
|
|
|
1988 |
|
M |
|
134,096 |
|
|
|
|
3 |
|
375 West Padonia Road |
|
North Baltimore Co. |
|
|
|
1986 |
|
M |
|
110,328 |
|
|
|
|
4 |
|
1615 and 1629 Thames Street |
|
Baltimore City |
|
|
|
1989 |
|
M |
|
104,214 |
|
|
|
|
|
|
Total Other |
|
|
|
|
|
|
|
|
|
525,327 |
|
— |
|
22
Property Summary by Region - December 31, 2004 (continued)
|
Operating Property Count |
|
|
|
Submarket |
|
Business Park |
|
Year Built or |
|
Single |
|
Total |
|
Total Square |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. Mary’s & King George Counties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
22309 Exploration Drive |
|
St. Mary’s County |
|
Exploration Park |
|
1984 |
|
M |
|
98,860 |
|
|
|
|
2 |
|
22289 Exploration Drive |
|
St. Mary’s County |
|
Exploration Park |
|
2000 |
|
M |
|
60,811 |
|
|
|
|
3 |
|
22299 Exploration Drive |
|
St. Mary’s County |
|
Exploration Park |
|
1998 |
|
M |
|
58,509 |
|
|
|
|
4 |
|
22300 Exploration Drive |
|
St. Mary’s County |
|
Exploration Park |
|
1997 |
|
S |
|
44,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
263,010 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
46579 Expedition Drive |
|
St. Mary’s County |
|
Expedition Park |
|
2002 |
|
M |
|
61,156 |
|
|
|
|
|
|
46591 Expedition Drive |
|
St. Mary’s County |
|
Expedition Park |
|
|
|
M |
|
|
|
60,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,156 |
|
60,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
44425 Pecan Court |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1997 |
|
M |
|
59,055 |
|
|
|
|
2 |
|
44408 Pecan Court |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1986 |
|
S |
|
50,532 |
|
|
|
|
3 |
|
23535 Cottonwood Parkway |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1984 |
|
M |
|
46,656 |
|
|
|
|
4 |
|
44417 Pecan Court |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1989 |
|
S |
|
29,053 |
|
|
|
|
5 |
|
44414 Pecan Court |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1986 |
|
S |
|
25,444 |
|
|
|
|
6 |
|
44420 Pecan Court |
|
St. Mary’s County |
|
Wildewood Tech Park |
|
1989 |
|
S |
|
25,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
235,940 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
16480 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
2000 |
|
S |
|
70,728 |
|
|
|
|
2 |
|
16541 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
1996 |
|
S |
|
36,053 |
|
|
|
|
3 |
|
16539 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
1990 |
|
S |
|
32,076 |
|
|
|
|
4 |
|
16442 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
2002 |
|
S |
|
25,518 |
|
|
|
|
5 |
|
16501 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
2002 |
|
S |
|
22,860 |
|
|
|
|
6 |
|
16543 Commerce Drive |
|
King George County |
|
Dahlgren Technology Center |
|
2002 |
|
S |
|
17,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
204,605 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17 |
|
Total St. Mary’s & King George Counties |
|
|
|
|
|
|
|
|
|
764,711 |
|
60,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
15000 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
1989 |
|
M |
|
470,406 |
|
|
|
|
|
|
15010 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
|
|
M |
|
|
|
213,091 |
|
|
2 |
|
15059 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
2000 |
|
M |
|
145,192 |
|
|
|
|
3 |
|
15049 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
1997 |
|
M |
|
145,053 |
|
|
|
|
4 |
|
14900 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
1999 |
|
M |
|
127,572 |
|
|
|
|
5 |
|
14280 Park Meadow Drive |
|
Dulles South |
|
Westfields |
|
1999 |
|
M |
|
114,126 |
|
|
|
|
6 |
|
4851 Stonecroft Boulevard |
|
Dulles South |
|
Westfields |
|
2004 |
|
M |
|
88,094 |
|
|
|
|
7 |
|
14850 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
2000 |
|
M |
|
69,711 |
|
|
|
|
8 |
|
14840 Conference Center Drive |
|
Dulles South |
|
Westfields |
|
2000 |
|
M |
|
69,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,229,864 |
|
213,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
13200 Woodland Park Drive |
|
Herndon |
|
Woodlands |
|
2002 |
|
M |
|
404,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
404,665 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
13454 Sunrise Valley Road |
|
Herndon |
|
Dulles Tech |
|
1998 |
|
M |
|
113,093 |
|
|
|
|
2 |
|
13450 Sunrise Valley Road |
|
Herndon |
|
Dulles Tech |
|
1998 |
|
M |
|
53,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166,821 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
1751 Pinnacle Drive |
|
Tysons Corner |
|
|
|
1989/1995 |
|
M |
|
258,465 |
|
|
|
|
2 |
|
1753 Pinnacle Drive |
|
Tysons Corner |
|
|
|
1976/2004 |
|
M |
|
181,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
440,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 |
|
Total Northern Virginia |
|
|
|
|
|
|
|
|
|
2,241,452 |
|
213,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater Harrisburg |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
2605 Interstate Drive |
|
East Shore |
|
Commerce Park |
|
1990 |
|
M |
|
79,456 |
|
|
|
|
2 |
|
2601 Market Place |
|
East Shore |
|
Commerce Park |
|
1989 |
|
M |
|
65,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,867 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
Subtotal (continued on next page) |
|
|
|
|
|
|
|
|
|
144,867 |
|
— |
|
23
Property Summary by Region - December 31, 2004 (continued)
|
Operating |
|
|
|
Submarket |
|
Business Park |
|
Year Built or |
|
Single |
|
Total |
|
Total Square |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
Subtotal (continued from prior page) |
|
|
|
|
|
|
|
|
|
144,867 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
6345 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1989 |
|
S |
|
69,443 |
|
|
|
|
2 |
|
6340 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1988 |
|
S |
|
68,200 |
|
|
|
|
3 |
|
6400 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1992 |
|
S |
|
52,439 |
|
|
|
|
4 |
|
6360 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1988 |
|
S |
|
46,500 |
|
|
|
|
5 |
|
6385 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1995 |
|
S |
|
32,921 |
|
|
|
|
6 |
|
6380 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1991 |
|
S |
|
32,668 |
|
|
|
|
7 |
|
6405 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1991 |
|
S |
|
32,000 |
|
|
|
|
8 |
|
95 Shannon Road |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1999 |
|
S |
|
21,976 |
|
|
|
|
9 |
|
75 Shannon Road |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1999 |
|
S |
|
20,887 |
|
|
|
|
10 |
|
6375 Flank Drive |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
2000 |
|
S |
|
19,783 |
|
|
|
|
11 |
|
85 Shannon Road |
|
East Shore |
|
Gtwy Corp. Ctr. |
|
1999 |
|
S |
|
12,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
409,680 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
5035 Ritter Road |
|
West Shore |
|
Rossmoyne Bus. Ctr. |
|
1988 |
|
S |
|
56,556 |
|
|
|
|
2 |
|
5070 Ritter Road - Building A |
|
West Shore |
|
Rossmoyne Bus. Ctr. |
|
1989 |
|
S |
|
32,309 |
|
|
|
|
3 |
|
5070 Ritter Road - Building B |
|
West Shore |
|
Rossmoyne Bus. Ctr. |
|
1989 |
|
S |
|
28,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117,212 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
Total Greater Harrisburg |
|
|
|
|
|
|
|
|
|
671,759 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater Philadelphia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
753 Jolly Road |
|
Blue Bell |
|
Unisys campus |
|
1992 |
|
M |
|
419,472 |
|
|
|
|
2 |
|
785 Jolly Road |
|
Blue Bell |
|
Unisys campus |
|
1996 |
|
M |
|
219,065 |
|
|
|
|
3 |
|
760 Jolly Road |
|
Blue Bell |
|
Unisys campus |
|
1994 |
|
M |
|
208,854 |
|
|
|
|
4 |
|
751 Jolly Road |
|
Blue Bell |
|
Unisys campus |
|
1991 |
|
M |
|
112,958 |
|
|
|
|
|
|
Total Greater Philadelphia |
|
|
|
|
|
|
|
|
|
960,349 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern/Central New Jersey |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
431 Ridge Road |
|
Exit 8A — Cranbury |
|
Princeton Tech Cntr. |
|
1998 |
|
S |
|
170,000 |
|
|
|
|
2 |
|
429 Ridge Road |
|
Exit 8A — Cranbury |
|
Princeton Tech Cntr. |
|
1996 |
|
M |
|
142,385 |
|
|
|
|
3 |
|
68 Culver Road |
|
Exit 8A — Cranbury |
|
Princeton Tech Cntr. |
|
2000 |
|
M |
|
57,280 |
|
|
|
|
4 |
|
437 Ridge Road |
|
Exit 8A — Cranbury |
|
Princeton Tech Cntr. |
|
1996 |
|
S |
|
30,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
399,665 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
104 Interchange Plaza |
|
Exit 8A — Cranbury |
|
Interchange Plaza |
|
1990 |
|
M |
|
47,677 |
|
|
|
|
2 |
|
101 Interchange Plaza |
|
Exit 8A — Cranbury |
|
Interchange Plaza |
|
1985 |
|
M |
|
43,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,298 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
47 Commerce |
|
Exit 8A — Cranbury |
|
Centrepoint North |
|
1998 |
|
S |
|
41,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,398 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
7 Centre Drive |
|
Exit 8A — Cranbury |
|
Monroe Center |
|
1986 |
|
S |
|
19,468 |
|
|
|
|
2 |
|
8 Centre Drive |
|
Exit 8A — Cranbury |
|
Monroe Center |
|
1989 |
|
S |
|
16,199 |
|
|
|
|
3 |
|
2 Centre Drive |
|
Exit 8A — Cranbury |
|
Monroe Center |
|
1989 |
|
S |
|
16,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51,799 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
4301 Route 1 |
|
Monmouth Junction |
|
Princeton Exec. Campus |
|
1986 |
|
M |
|
61,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61,433 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
695 Route 46 |
|
Wayne |
|
Fairfield Corp. Cntr. |
|
1990 |
|
M |
|
157,394 |
|
|
|
|
2 |
|
710 Route 46 |
|
Wayne |
|
Fairfield Corp. Cntr. |
|
1985 |
|
M |
|
101,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
258,657 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 |
|
Total Northern / Central New Jersey |
|
|
|
|
|
|
|
|
|
904,250 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145 |
|
TOTAL PORTFOLIO |
|
|
|
|
|
|
|
|
|
11,978,253 |
|
907,119 |
|
24
Property Occupancy Rates by Region by Quarter
|
|
|
Baltimore
/ |
|
Northern |
|
Northern
/ |
|
Greater |
|
Greater |
|
Suburban |
|
Other |
|
St.
Mary’s & |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
73 |
|
13 |
|
13 |
|
4 |
|
16 |
|
5 |
|
4 |
|
17 |
|
145 |
|
|
Rentable Square Feet |
|
5,347,828 |
|
2,241,452 |
|
904,250 |
|
960,349 |
|
671,759 |
|
562,577 |
|
525,327 |
|
764,711 |
|
11,978,253 |
|
|
Percent Occupied |
|
95.64 |
% |
94.49 |
% |
91.25 |
% |
100.00 |
% |
85.37 |
% |
79.38 |
% |
90.98 |
% |
96.87 |
% |
93.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
73 |
|
12 |
|
13 |
|
4 |
|
16 |
|
5 |
|
4 |
|
9 |
|
136 |
|
|
Rentable Square Feet |
|
5,347,301 |
|
2,153,358 |
|
904,250 |
|
960,349 |
|
672,572 |
|
561,979 |
|
527,168 |
|
489,924 |
|
11,616,901 |
|
|
Percent Occupied |
|
94.93 |
% |
94.21 |
% |
91.09 |
% |
100.00 |
% |
83.69 |
% |
81.03 |
% |
82.86 |
% |
94.76 |
% |
93.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
72 |
|
9 |
|
13 |
|
4 |
|
16 |
|
5 |
|
4 |
|
9 |
|
132 |
|
|
Rentable Square Feet |
|
5,190,429 |
|
1,599,130 |
|
904,174 |
|
960,349 |
|
672,264 |
|
532,915 |
|
523,944 |
|
489,924 |
|
10,873,129 |
|
|
Percent Occupied |
|
93.96 |
% |
94.93 |
% |
89.48 |
% |
100.00 |
% |
85.08 |
% |
83.77 |
% |
87.31 |
% |
94.50 |
% |
92.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
72 |
|
9 |
|
13 |
|
4 |
|
16 |
|
4 |
|
3 |
|
8 |
|
129 |
|
|
Rentable Square Feet |
|
5,190,826 |
|
1,599,137 |
|
904,174 |
|
960,349 |
|
672,264 |
|
506,104 |
|
335,985 |
|
430,869 |
|
10,599,708 |
|
|
Percent Occupied |
|
91.68 |
% |
94.25 |
% |
88.50 |
% |
100.00 |
% |
86.10 |
% |
81.38 |
% |
91.91 |
% |
95.13 |
% |
91.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
71 |
|
9 |
|
13 |
|
4 |
|
16 |
|
3 |
|
3 |
|
n/a |
|
119 |
|
|
Rentable Square Feet |
|
5,183,960 |
|
1,599,137 |
|
904,159 |
|
960,349 |
|
672,264 |
|
377,074 |
|
335,985 |
|
n/a |
|
10,032,928 |
|
|
Percent Occupied |
|
90.42 |
% |
94.78 |
% |
88.52 |
% |
100.00 |
% |
87.20 |
% |
79.23 |
% |
90.98 |
% |
n/a |
|
91.24 |
% |
25
Top Twenty Office Tenants as of December 31, 2004
(Dollars and square feet in thousands)
|
Tenant |
|
Number of |
|
Total |
|
Percentage of |
|
Total |
|
Percentage |
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States of America (3) |
|
30 |
|
1,330,187 |
|
11.8 |
% |
$ |
30,008 |
|
13.1 |
% |
5.1 |
|
|
Booz Allen Hamilton, Inc. |
|
11 |
|
502,927 |
|
4.5 |
% |
12,317 |
|
5.4 |
% |
7.9 |
|
|
|
Computer Sciences Corporation (4) |
|
6 |
|
513,866 |
|
4.6 |
% |
11,794 |
|
5.2 |
% |
5.7 |
|
|
|
AT&T Corporation (4) |
|
8 |
|
459,220 |
|
4.1 |
% |
9,558 |
|
4.2 |
% |
2.5 |
|
|
|
The Titan Corporation (4) |
|
7 |
|
245,345 |
|
2.2 |
% |
8,876 |
|
3.9 |
% |
8.3 |
|
|
|
General Dynamics Corporation |
|
11 |
|
440,913 |
|
3.9 |
% |
8,571 |
|
3.7 |
% |
4.8 |
|
|
|
Northrop Grumman Corporation |
|
9 |
|
396,624 |
|
3.5 |
% |
8,267 |
|
3.6 |
% |
3.3 |
|
|
|
Unisys (5) |
|
3 |
|
741,284 |
|
6.6 |
% |
7,901 |
|
3.5 |
% |
4.5 |
|
|
|
Wachovia Bank |
|
2 |
|
173,944 |
|
1.5 |
% |
5,269 |
|
2.3 |
% |
14.0 |
|
|
|
The Aerospace Corporation |
|
3 |
|
222,366 |
|
2.0 |
% |
5,087 |
|
2.2 |
% |
9.9 |
|
|
|
The Boeing Company (4) |
|
8 |
|
162,699 |
|
1.4 |
% |
4,092 |
|
1.8 |
% |
4.1 |
|
|
|
Ciena Corporation |
|
3 |
|
221,609 |
|
2.0 |
% |
3,250 |
|
1.4 |
% |
1.7 |
|
|
|
VeriSign, Inc. |
|
1 |
|
130,981 |
|
1.2 |
% |
3,157 |
|
1.4 |
% |
9.6 |
|
|
|
Commonwealth of Pennsylvania (4) |
|
6 |
|
205,386 |
|
1.8 |
% |
2,984 |
|
1.3 |
% |
4.6 |
|
|
|
PricewaterhouseCoopers |
|
1 |
|
97,638 |
|
0.9 |
% |
2,873 |
|
1.3 |
% |
1.2 |
|
|
|
Magellan Health Services, Inc. |
|
2 |
|
136,250 |
|
1.2 |
% |
2,623 |
|
1.1 |
% |
6.6 |
|
|
|
Johns Hopkins University (4) |
|
7 |
|
106,473 |
|
0.9 |
% |
2,464 |
|
1.1 |
% |
2.7 |
|
|
|
Merck & Co., Inc. (Unisys) (5) |
|
1 |
|
219,065 |
|
1.9 |
% |
2,372 |
|
1.0 |
% |
4.5 |
|
|
|
Carefirst, Inc. and Subsidiaries (4) |
|
3 |
|
94,223 |
|
0.8 |
% |
2,240 |
|
1.0 |
% |
3.0 |
|
|
|
BAE Systems |
|
8 |
|
202,198 |
|
1.8 |
% |
2,228 |
|
1.0 |
% |
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Top 20 Office Tenants |
|
130 |
|
6,603,198 |
|
58.7 |
% |
135,930 |
|
59.4 |
% |
5.6 |
|
|
|
All remaining tenants |
|
497 |
|
4,653,985 |
|
41.3 |
% |
92,872 |
|
40.6 |
% |
3.9 |
|
|
|
Total/Weighted Average |
|
627 |
|
11,257,183 |
|
100.0 |
% |
$ |
228,802 |
|
100.0 |
% |
4.9 |
|
(1) Total Annualized Rental Revenue is the monthly contractual base rent as of December 31, 2004 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases excluding development properties.
(2) The weighting of the lease term was computed using Total Rental Revenue.
(3) Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.
(4) Includes affiliated organizations or agencies.
(5) Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys’ 960,349 leased rentable square feet.
26
Combined Real Estate Revenue by Geographic Region by Quarter
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Office Properties: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Baltimore/Washington Corridor |
|
$ |
28,725 |
|
$ |
26,924 |
|
$ |
25,018 |
|
$ |
25,278 |
|
$ |
24,535 |
|
|
Northern Virginia |
|
14,405 |
|
10,120 |
|
13,290 |
|
10,886 |
|
10,282 |
|
|||||
|
Northern/Central New Jersey |
|
4,757 |
|
4,696 |
|
4,661 |
|
4,679 |
|
3,780 |
|
|||||
|
Greater Philadelphia |
|
2,506 |
|
2,506 |
|
2,506 |
|
2,506 |
|
2,506 |
|
|||||
|
Greater Harrisburg |
|
2,172 |
|
2,272 |
|
2,168 |
|
2,243 |
|
2,374 |
|
|||||
|
St. Mary’s and King George Counties |
|
1,948 |
|
1,750 |
|
1,662 |
|
124 |
|
— |
|
|||||
|
Suburban Maryland |
|
2,389 |
|
2,622 |
|
2,358 |
|
1,555 |
|
1,463 |
|
|||||
|
Other |
|
2,403 |
|
2,173 |
|
2,181 |
|
1,649 |
|
1,593 |
|
|||||
|
Subtotal |
|
59,305 |
|
53,063 |
|
53,844 |
|
48,920 |
|
46,533 |
|
|||||
|
Eliminations / other |
|
(691 |
) |
33 |
|
48 |
|
51 |
|
46 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Combined Real Estate Revenues |
|
$ |
58,614 |
|
$ |
53,096 |
|
$ |
53,892 |
|
$ |
48,971 |
|
$ |
46,579 |
|
Combined Net Operating Income by Geographic Region by Quarter
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Office Properties: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Baltimore/Washington Corridor |
|
$ |
19,873 |
|
$ |
18,266 |
|
$ |
17,406 |
|
$ |
17,153 |
|
$ |
16,845 |
|
|
Northern Virginia |
|
9,634 |
|
6,955 |
|
10,216 |
|
7,574 |
|
7,288 |
|
|||||
|
Northern/Central New Jersey |
|
3,508 |
|
3,309 |
|
3,420 |
|
3,193 |
|
2,394 |
|
|||||
|
Greater Philadelphia |
|
2,459 |
|
2,467 |
|
2,467 |
|
2,467 |
|
2,479 |
|
|||||
|
Greater Harrisburg |
|
1,489 |
|
1,582 |
|
1,409 |
|
1,500 |
|
1,760 |
|
|||||
|
St. Mary’s and King George Counties |
|
1,388 |
|
1,374 |
|
1,304 |
|
91 |
|
— |
|
|||||
|
Suburban Maryland |
|
1,321 |
|
1,695 |
|
1,573 |
|
957 |
|
940 |
|
|||||
|
Other |
|
1,377 |
|
1,216 |
|
1,402 |
|
946 |
|
958 |
|
|||||
|
Subtotal |
|
41,049 |
|
36,864 |
|
39,197 |
|
33,881 |
|
32,664 |
|
|||||
|
Eliminations / other |
|
395 |
|
35 |
|
48 |
|
51 |
|
46 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Combined NOI |
|
$ |
41,444 |
|
$ |
36,899 |
|
$ |
39,245 |
|
$ |
33,932 |
|
$ |
32,710 |
|
27
Same Office Property Cash Net Operating Income by Quarter
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Office Properties: (1) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Baltimore/Washington Corridor |
|
$ |
16,603 |
|
$ |
16,024 |
|
$ |
15,947 |
|
$ |
15,554 |
|
$ |
15,848 |
|
|
Northern Virginia |
|
5,058 |
|
5,006 |
|
8,915 |
|
7,275 |
|
6,945 |
|
|||||
|
Northern/Central New Jersey |
|
3,503 |
|
3,247 |
|
3,437 |
|
3,217 |
|
2,400 |
|
|||||
|
Greater Philadelphia |
|
2,523 |
|
2,530 |
|
2,479 |
|
2,478 |
|
2,490 |
|
|||||
|
Greater Harrisburg |
|
1,504 |
|
1,568 |
|
1,384 |
|
1,707 |
|
1,754 |
|
|||||
|
Suburban Maryland |
|
814 |
|
996 |
|
879 |
|
783 |
|
915 |
|
|||||
|
Other |
|
951 |
|
894 |
|
1,029 |
|
931 |
|
952 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Office Properties |
|
$ |
30,956 |
|
$ |
30,265 |
|
$ |
34,070 |
|
$ |
31,945 |
|
$ |
31,304 |
|
Same Office Property GAAP Net Operating Income by Quarter
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Office Properties: (1) |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Baltimore/Washington Corridor |
|
$ |
17,190 |
|
$ |
16,832 |
|
$ |
16,699 |
|
$ |
16,396 |
|
$ |
16,848 |
|
|
Northern Virginia |
|
6,655 |
|
6,684 |
|
10,239 |
|
7,628 |
|
7,311 |
|
|||||
|
Northern/Central New Jersey |
|
3,515 |
|
3,309 |
|
3,423 |
|
3,193 |
|
2,396 |
|
|||||
|
Greater Philadelphia |
|
2,461 |
|
2,468 |
|
2,467 |
|
2,467 |
|
2,479 |
|
|||||
|
Greater Harrisburg |
|
1,489 |
|
1,582 |
|
1,409 |
|
1,500 |
|
1,760 |
|
|||||
|
Suburban Maryland |
|
845 |
|
1,034 |
|
925 |
|
801 |
|
940 |
|
|||||
|
Other |
|
1,031 |
|
895 |
|
1,024 |
|
946 |
|
958 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Office Properties |
|
$ |
33,186 |
|
$ |
32,804 |
|
$ |
36,186 |
|
$ |
32,931 |
|
$ |
32,692 |
|
(1) Same office properties include buildings owned for a minimum of five reporting quarters. Amounts reported do not include the effects of eliminations.
28
Average Occupancy Rates by Region for Same Office Properties (1)
|
|
|
Baltimore / |
|
Northern |
|
Northern / |
|
Greater |
|
Greater |
|
Suburban |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Quarter 2004 Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
69 |
|
9 |
|
12 |
|
4 |
|
16 |
|
3 |
|
3 |
|
116 |
|
|
Rentable Square Feet |
|
4,965,252 |
|
1,599,130 |
|
746,856 |
|
960,349 |
|
672,301 |
|
377,523 |
|
348,638 |
|
9,670,049 |
|
|
Percent Occupied |
|
95.41 |
% |
95.52 |
% |
92.68 |
% |
100.00 |
% |
84.01 |
% |
80.49 |
% |
93.47 |
% |
94.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter 2004 Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
69 |
|
9 |
|
12 |
|
4 |
|
16 |
|
3 |
|
3 |
|
116 |
|
|
Rentable Square Feet |
|
4,964,770 |
|
1,599,130 |
|
746,856 |
|
960,349 |
|
672,367 |
|
377,082 |
|
348,656 |
|
9,669,210 |
|
|
Percent Occupied |
|
95.12 |
% |
95.22 |
% |
93.13 |
% |
100.00 |
% |
83.40 |
% |
82.82 |
% |
85.60 |
% |
93.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Quarter 2004 Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
69 |
|
9 |
|
12 |
|
4 |
|
16 |
|
3 |
|
3 |
|
116 |
|
|
Rentable Square Feet |
|
4,964,675 |
|
1,599,132 |
|
746,856 |
|
960,349 |
|
672,264 |
|
377,077 |
|
339,050 |
|
9,659,403 |
|
|
Percent Occupied |
|
93.43 |
% |
94.72 |
% |
90.59 |
% |
100.00 |
% |
86.19 |
% |
79.11 |
% |
92.09 |
% |
92.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Quarter 2004 Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
69 |
|
9 |
|
12 |
|
4 |
|
16 |
|
3 |
|
3 |
|
116 |
|
|
Rentable Square Feet |
|
4,962,167 |
|
1,599,137 |
|
746,815 |
|
960,349 |
|
672,264 |
|
377,074 |
|
335,985 |
|
9,653,791 |
|
|
Percent Occupied |
|
91.83 |
% |
94.30 |
% |
90.43 |
% |
100.00 |
% |
86.64 |
% |
78.58 |
% |
91.29 |
% |
92.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Quarter 2003 Average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Buildings |
|
69 |
|
9 |
|
12 |
|
4 |
|
16 |
|
3 |
|
3 |
|
116 |
|
|
Rentable Square Feet |
|
4,960,775 |
|
1,599,137 |
|
746,744 |
|
960,349 |
|
672,264 |
|
377,074 |
|
335,985 |
|
9,652,328 |
|
|
Percent Occupied |
|
90.84 |
% |
95.27 |
% |
90.85 |
% |
100.00 |
% |
88.13 |
% |
79.80 |
% |
90.59 |
% |
91.86 |
% |
(1) Same office properties include buildings owned for a minimum of five reporting quarters.
29
Office Lease Expiration Analysis by Year
|
Year of |
|
Number |
|
Square |
|
Percentage of |
|
Total Annualized |
|
Percentage |
|
Total |
|
||
|
|
|
|
|
|
|
|
|
(000s) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
2005 |
|
107 |
|
1,079,081 |
|
9.6 |
% |
$ |
22,346 |
|
9.8 |
% |
$ |
20.71 |
|
|
2006 |
|
84 |
|
1,154,855 |
|
10.3 |
% |
22,371 |
|
9.8 |
% |
19.37 |
|
||
|
2007 |
|
125 |
|
1,736,983 |
|
15.4 |
% |
33,691 |
|
14.7 |
% |
19.40 |
|
||
|
2008 |
|
83 |
|
1,117,449 |
|
9.9 |
% |
23,683 |
|
10.4 |
% |
21.19 |
|
||
|
2009 |
|
108 |
|
2,342,074 |
|
20.8 |
% |
37,835 |
|
16.5 |
% |
16.15 |
|
||
|
2010 |
|
44 |
|
1,152,059 |
|
10.2 |
% |
26,114 |
|
11.4 |
% |
22.67 |
|
||
|
2011 |
|
13 |
|
316,276 |
|
2.8 |
% |
6,526 |
|
2.9 |
% |
20.63 |
|
||
|
2012 |
|
13 |
|
558,163 |
|
5.0 |
% |
11,866 |
|
5.2 |
% |
21.26 |
|
||
|
2013 |
|
6 |
|
386,290 |
|
3.4 |
% |
10,956 |
|
4.8 |
% |
28.36 |
|
||
|
2014 |
|
13 |
|
657,116 |
|
5.8 |
% |
17,468 |
|
7.6 |
% |
26.58 |
|
||
|
2015 |
|
4 |
|
312,653 |
|
2.8 |
% |
7,876 |
|
3.4 |
% |
25.19 |
|
||
|
2016 |
|
— |
|
— |
|
0.0 |
% |
— |
|
0.0 |
% |
0.00 |
|
||
|
2017 |
|
— |
|
— |
|
0.0 |
% |
— |
|
0.0 |
% |
0.00 |
|
||
|
2018 |
|
3 |
|
328,944 |
|
2.9 |
% |
7,204 |
|
3.1 |
% |
21.90 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Other (3) |
|
24 |
|
115,240 |
|
1.0 |
% |
867 |
|
0.4 |
% |
7.52 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Total / Average |
|
627 |
|
11,257,183 |
|
100.0 |
% |
$ |
228,802 |
|
100.0 |
% |
$ |
20.32 |
|
NOTE: As of December 31, 2004, the weighted average lease term is 4.9 years.
(1) Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.
(2) Total Annualized Rental Revenue is the monthly contractual base rent as of December 31, 2004 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases excluding development properties.
(3) Other consists primarily of amenities, including cafeterias, concierge offices and property management space. In addition, month-to-month leases and leases which have expired but the tenant remains in holdover are included in this line item as the exact expiration date is unknown.
30
Annual Office Renewal Analysis
|
|
|
Baltimore/ |
|
Northern |
|
Northern/ |
|
Greater |
|
Suburban |
|
St.
Mary’s & |
|
Other |
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For Year Ended December 31, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
597,595 |
|
81,754 |
|
200,097 |
|
198,827 |
|
28,466 |
|
87,187 |
|
132,381 |
|
1,326,307 |
|
||||||||
|
Vacated Square Feet |
|
188,475 |
|
10,349 |
|
12,781 |
|
34,715 |
|
14,572 |
|
25,444 |
|
92,426 |
|
378,762 |
|
||||||||
|
Renewed Square Feet |
|
409,120 |
|
71,405 |
|
187,316 |
|
164,112 |
|
13,894 |
|
61,743 |
|
39,955 |
|
947,545 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
68.46 |
% |
87.34 |
% |
93.61 |
% |
82.54 |
% |
48.81 |
% |
70.82 |
% |
30.18 |
% |
71.44 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
5.48 |
% |
15.07 |
% |
9.58 |
% |
-11.79 |
% |
1.73 |
% |
6.88 |
% |
7.30 |
% |
5.28 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
9.17 |
% |
-0.67 |
% |
7.57 |
% |
-9.20 |
% |
1.32 |
% |
6.73 |
% |
5.04 |
% |
4.85 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
1.21 |
% |
7.75 |
% |
4.65 |
% |
-17.92 |
% |
-6.49 |
% |
3.73 |
% |
1.84 |
% |
0.27 |
% |
||||||||
|
Change in Total Rent - Cash |
|
4.88 |
% |
-0.90 |
% |
3.11 |
% |
-14.24 |
% |
-6.66 |
% |
3.64 |
% |
-0.08 |
% |
0.89 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
7.36 |
|
$ |
13.93 |
|
$ |
1.34 |
|
$ |
3.10 |
|
$ |
7.24 |
|
$ |
1.90 |
|
$ |
3.72 |
|
$ |
5.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
9.18 |
% |
6.30 |
% |
8.01 |
% |
-8.66 |
% |
-6.62 |
% |
5.43 |
% |
17.59 |
% |
7.20 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
10.38 |
% |
-8.05 |
% |
5.55 |
% |
-7.86 |
% |
-7.70 |
% |
5.10 |
% |
9.77 |
% |
5.10 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
4.70 |
% |
4.13 |
% |
2.83 |
% |
-15.25 |
% |
-12.96 |
% |
2.47 |
% |
5.87 |
% |
2.16 |
% |
||||||||
|
Change in Total Rent - Cash |
|
6.10 |
% |
-10.30 |
% |
0.87 |
% |
-13.28 |
% |
-13.70 |
% |
2.19 |
% |
-0.68 |
% |
0.52 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
10.97 |
|
$ |
25.32 |
|
$ |
6.10 |
|
$ |
4.75 |
|
$ |
11.90 |
|
$ |
1.72 |
|
$ |
20.80 |
|
$ |
10.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For Year Ended December 31, 2003: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
707,582 |
|
162,196 |
|
68,535 |
|
160,441 |
|
77,754 |
|
n/a |
|
23,088 |
|
1,199,596 |
|
||||||||
|
Vacated Square Feet |
|
189,544 |
|
8,101 |
|
27,012 |
|
25,140 |
|
35,454 |
|
n/a |
|
5,844 |
|
291,095 |
|
||||||||
|
Renewed Square Feet |
|
518,038 |
|
154,095 |
|
41,523 |
|
135,301 |
|
42,300 |
|
n/a |
|
17,244 |
|
908,501 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
73.21 |
% |
95.01 |
% |
60.59 |
% |
84.33 |
% |
54.40 |
% |
n/a |
|
74.69 |
% |
75.73 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
6.21 |
% |
12.75 |
% |
5.89 |
% |
0.19 |
% |
10.78 |
% |
n/a |
|
-0.60 |
% |
6.87 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
4.61 |
% |
8.80 |
% |
1.48 |
% |
0.23 |
% |
9.07 |
% |
n/a |
|
-0.84 |
% |
5.05 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
-0.60 |
% |
-0.92 |
% |
2.08 |
% |
-2.91 |
% |
0.25 |
% |
n/a |
|
-6.05 |
% |
-0.84 |
% |
||||||||
|
Change in Total Rent - Cash |
|
-1.58 |
% |
-0.65 |
% |
-1.93 |
% |
-2.28 |
% |
-0.19 |
% |
n/a |
|
-6.26 |
% |
-1.48 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
1.78 |
|
$ |
7.27 |
|
$ |
11.28 |
|
$ |
3.52 |
|
$ |
5.17 |
|
n/a |
|
$ |
8.14 |
|
$ |
3.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
9.92 |
% |
-0.91 |
% |
6.69 |
% |
-2.19 |
% |
1.54 |
% |
n/a |
|
-2.98 |
% |
5.71 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
7.37 |
% |
-3.08 |
% |
2.86 |
% |
-1.79 |
% |
0.37 |
% |
n/a |
|
-2.11 |
% |
3.40 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
3.32 |
% |
-9.86 |
% |
3.00 |
% |
-5.22 |
% |
-7.98 |
% |
n/a |
|
-6.34 |
% |
-1.01 |
% |
||||||||
|
Change in Total Rent - Cash |
|
1.36 |
% |
-10.12 |
% |
-0.46 |
% |
-4.28 |
% |
-8.13 |
% |
n/a |
|
-5.20 |
% |
-2.48 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
7.23 |
|
$ |
5.35 |
|
$ |
13.35 |
|
$ |
4.33 |
|
$ |
8.81 |
|
n/a |
|
$ |
7.27 |
|
$ |
6.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For Year Ended December 31, 2002: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
994,831 |
|
— |
|
91,685 |
|
243,050 |
|
n/a |
|
n/a |
|
n/a |
|
1,275,566 |
|
||||||||
|
Vacated Square Feet |
|
323,179 |
|
— |
|
49,221 |
|
58,452 |
|
n/a |
|
n/a |
|
n/a |
|
430,852 |
|
||||||||
|
Renewed Square Feet |
|
617,652 |
|
— |
|
42,464 |
|
184,598 |
|
n/a |
|
n/a |
|
n/a |
|
844,714 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
65.65 |
% |
0.00 |
% |
46.32 |
% |
75.95 |
% |
n/a |
|
n/a |
|
n/a |
|
66.22 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
8.56 |
% |
29.72 |
% |
11.43 |
% |
3.73 |
% |
n/a |
|
n/a |
|
n/a |
|
8.52 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
7.64 |
% |
29.72 |
% |
5.49 |
% |
-2.73 |
% |
n/a |
|
n/a |
|
n/a |
|
6.46 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
5.12 |
% |
30.11 |
% |
9.41 |
% |
0.18 |
% |
n/a |
|
n/a |
|
n/a |
|
5.22 |
% |
||||||||
|
Change in Total Rent - Cash |
|
4.53 |
% |
30.11 |
% |
3.69 |
% |
-5.60 |
% |
n/a |
|
n/a |
|
n/a |
|
3.50 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
5.13 |
|
$ |
0.09 |
|
$ |
14.22 |
|
$ |
1.60 |
|
n/a |
|
n/a |
|
n/a |
|
$ |
5.02 |
|
|||
Notes: No renewal or retenanting activity transpired in our Greater Philadelphia region.
The Suburban Maryland and Other submarkets were not segregated until January 1, 2003. Prior to 2003, they were included in the Baltimore/Washington Corridor submarket.
The St. Mary’s and King George Counties submarket was nonexistent until 2004.
31
Quarterly Office Renewal Analysis
|
|
|
Baltimore/ |
|
Northern |
|
Northern/ |
|
Greater |
|
Suburban |
|
St.
Mary’s & |
|
Other |
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended December 31, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
201,187 |
|
39,087 |
|
— |
|
33,018 |
|
3,025 |
|
43,634 |
|
9,889 |
|
329,840 |
|
||||||||
|
Vacated Square Feet |
|
138,517 |
|
— |
|
— |
|
— |
|
1,735 |
|
— |
|
5,045 |
|
145,297 |
|
||||||||
|
Renewed Square Feet |
|
62,670 |
|
39,087 |
|
— |
|
33,018 |
|
1,290 |
|
43,634 |
|
4,844 |
|
184,543 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
31.15 |
% |
100.00 |
% |
0.00 |
% |
100.00 |
% |
42.64 |
% |
100.00 |
% |
48.98 |
% |
55.95 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
-11.31 |
% |
22.98 |
% |
0.00 |
% |
3.47 |
% |
0.00 |
% |
4.24 |
% |
3.37 |
% |
1.38 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
12.93 |
% |
-4.75 |
% |
0.00 |
% |
4.49 |
% |
0.00 |
% |
4.12 |
% |
3.34 |
% |
4.52 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
0.93 |
% |
15.29 |
% |
0.00 |
% |
1.91 |
% |
0.00 |
% |
2.00 |
% |
-0.02 |
% |
4.38 |
% |
||||||||
|
Change in Total Rent - Cash |
|
23.85 |
% |
-1.02 |
% |
0.00 |
% |
3.34 |
% |
0.00 |
% |
1.94 |
% |
-0.02 |
% |
11.23 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
6.04 |
|
$ |
23.38 |
|
$ |
— |
|
$ |
2.12 |
|
$ |
1.21 |
|
$ |
1.41 |
|
$ |
2.25 |
|
$ |
7.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
4.37 |
% |
15.31 |
% |
-6.66 |
% |
4.32 |
% |
0.00 |
% |
2.96 |
% |
5.64 |
% |
6.83 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
21.34 |
% |
-9.44 |
% |
-8.22 |
% |
5.05 |
% |
0.00 |
% |
2.60 |
% |
4.49 |
% |
5.61 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
5.55 |
% |
15.01 |
% |
-11.11 |
% |
2.56 |
% |
0.00 |
% |
0.75 |
% |
-3.30 |
% |
5.73 |
% |
||||||||
|
Change in Total Rent - Cash |
|
21.07 |
% |
-11.11 |
% |
-12.42 |
% |
3.75 |
% |
0.00 |
% |
0.43 |
% |
-4.29 |
% |
4.60 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
11.52 |
|
$ |
38.43 |
|
$ |
11.03 |
|
$ |
2.18 |
|
$ |
1.21 |
|
$ |
1.27 |
|
$ |
19.03 |
|
$ |
15.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended September 30, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
108,610 |
|
26,441 |
|
24,881 |
|
42,553 |
|
7,536 |
|
40,044 |
|
6,673 |
|
256,738 |
|
||||||||
|
Vacated Square Feet |
|
23,126 |
|
— |
|
2,950 |
|
6,900 |
|
— |
|
25,444 |
|
— |
|
58,420 |
|
||||||||
|
Renewed Square Feet |
|
85,484 |
|
26,441 |
|
21,931 |
|
35,653 |
|
7,536 |
|
14,600 |
|
6,673 |
|
198,318 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
78.71 |
% |
100.00 |
% |
88.14 |
% |
83.78 |
% |
100.00 |
% |
36.46 |
% |
100.00 |
% |
77.25 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
9.37 |
% |
5.14 |
% |
0.08 |
% |
-12.80 |
% |
4.91 |
% |
16.41 |
% |
5.30 |
% |
4.01 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
12.64 |
% |
3.95 |
% |
-4.01 |
% |
-10.42 |
% |
4.08 |
% |
16.41 |
% |
3.29 |
% |
4.90 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
1.68 |
% |
-1.32 |
% |
-1.06 |
% |
-19.86 |
% |
-2.32 |
% |
9.63 |
% |
-1.65 |
% |
-2.39 |
% |
||||||||
|
Change in Total Rent - Cash |
|
6.75 |
% |
-1.02 |
% |
-5.05 |
% |
-16.32 |
% |
-2.82 |
% |
9.63 |
% |
-3.45 |
% |
-0.39 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
0.91 |
|
$ |
2.71 |
|
$ |
7.12 |
|
$ |
1.06 |
|
$ |
11.95 |
|
$ |
3.40 |
|
$ |
2.36 |
|
$ |
2.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
19.69 |
% |
-0.09 |
% |
3.64 |
% |
-5.55 |
% |
-9.96 |
% |
16.41 |
% |
2.82 |
% |
9.50 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
15.37 |
% |
-0.41 |
% |
-1.90 |
% |
-7.52 |
% |
-10.53 |
% |
16.41 |
% |
1.39 |
% |
6.37 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
12.30 |
% |
-5.90 |
% |
2.39 |
% |
-13.89 |
% |
-14.81 |
% |
9.63 |
% |
-4.68 |
% |
2.98 |
% |
||||||||
|
Change in Total Rent - Cash |
|
9.17 |
% |
-5.18 |
% |
-3.02 |
% |
-14.34 |
% |
-15.05 |
% |
9.63 |
% |
-5.94 |
% |
0.83 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
11.39 |
|
$ |
8.60 |
|
$ |
8.96 |
|
$ |
7.16 |
|
$ |
13.03 |
|
$ |
3.40 |
|
$ |
4.49 |
|
$ |
10.15 |
|
Note: No renewal or retenanting activity transpired in our Greater Philadelphia region.
The Southern Maryland submarket has been renamed the St. Mary’s and King George Counties submarket.
32
Quarterly Office Renewal Analysis (continued)
|
|
|
Baltimore/ |
|
Northern |
|
Northern/ |
|
Greater |
|
Suburban |
|
St.
Mary’s & |
|
Other |
|
Total |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended June 30, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
259,151 |
|
9,996 |
|
12,808 |
|
15,495 |
|
1,027 |
|
3,509 |
|
108,677 |
|
410,663 |
|
||||||||
|
Vacated Square Feet |
|
10,214 |
|
4,119 |
|
6,154 |
|
15,495 |
|
1,027 |
|
— |
|
85,981 |
|
122,990 |
|
||||||||
|
Renewed Square Feet |
|
248,937 |
|
5,877 |
|
6,654 |
|
— |
|
— |
|
3,509 |
|
22,696 |
|
287,673 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
96.06 |
% |
58.79 |
% |
51.95 |
% |
0.00 |
% |
0.00 |
% |
100.00 |
% |
20.88 |
% |
70.05 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
10.12 |
% |
7.97 |
% |
7.36 |
% |
0.00 |
% |
0.00 |
% |
4.57 |
% |
9.29 |
% |
9.88 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
6.91 |
% |
7.24 |
% |
5.70 |
% |
0.00 |
% |
0.00 |
% |
4.38 |
% |
6.00 |
% |
6.77 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
1.14 |
% |
1.02 |
% |
4.67 |
% |
0.00 |
% |
0.00 |
% |
3.01 |
% |
4.60 |
% |
1.54 |
% |
||||||||
|
Change in Total Rent - Cash |
|
-1.62 |
% |
0.49 |
% |
3.81 |
% |
0.00 |
% |
0.00 |
% |
2.89 |
% |
1.66 |
% |
-1.08 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
10.26 |
|
$ |
1.52 |
|
$ |
7.76 |
|
$ |
— |
|
$ |
— |
|
$ |
1.65 |
|
$ |
4.63 |
|
$ |
9.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
9.09 |
% |
-11.13 |
% |
5.04 |
% |
-1.83 |
% |
0.93 |
% |
4.57 |
% |
38.89 |
% |
9.71 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
5.39 |
% |
-11.04 |
% |
2.48 |
% |
-2.50 |
% |
-2.07 |
% |
4.38 |
% |
23.40 |
% |
5.58 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
0.15 |
% |
-10.94 |
% |
-2.31 |
% |
-6.36 |
% |
-8.19 |
% |
3.01 |
% |
18.81 |
% |
0.77 |
% |
||||||||
|
Change in Total Rent - Cash |
|
-3.01 |
% |
-10.85 |
% |
-3.68 |
% |
-6.41 |
% |
-10.80 |
% |
2.89 |
% |
7.21 |
% |
-2.65 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
10.08 |
|
$ |
3.05 |
|
$ |
26.08 |
|
$ |
2.11 |
|
$ |
16.13 |
|
$ |
1.65 |
|
$ |
15.44 |
|
$ |
11.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended March 31, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
28,647 |
|
6,230 |
|
162,408 |
|
107,761 |
|
16,878 |
|
— |
|
7,142 |
|
329,066 |
|
||||||||
|
Vacated Square Feet |
|
16,618 |
|
6,230 |
|
3,677 |
|
12,320 |
|
11,810 |
|
— |
|
1,400 |
|
52,055 |
|
||||||||
|
Renewed Square Feet |
|
12,029 |
|
— |
|
158,731 |
|
95,441 |
|
5,068 |
|
— |
|
5,742 |
|
277,011 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
41.99 |
% |
0.00 |
% |
97.74 |
% |
88.57 |
% |
30.03 |
% |
0.00 |
% |
80.40 |
% |
84.18 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
10.32 |
% |
0.00 |
% |
11.14 |
% |
-15.10 |
% |
-3.34 |
% |
n/a |
|
5.30 |
% |
3.52 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
16.08 |
% |
0.00 |
% |
9.40 |
% |
-12.44 |
% |
-3.34 |
% |
n/a |
|
4.77 |
% |
2.84 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
3.09 |
% |
0.00 |
% |
5.53 |
% |
-21.90 |
% |
-14.73 |
% |
n/a |
|
-3.34 |
% |
-2.70 |
% |
||||||||
|
Change in Total Rent - Cash |
|
9.41 |
% |
0.00 |
% |
4.28 |
% |
-18.12 |
% |
-14.73 |
% |
n/a |
|
-3.01 |
% |
-2.68 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
— |
|
$ |
— |
|
$ |
0.27 |
|
$ |
4.21 |
|
$ |
1.77 |
|
$ |
— |
|
$ |
2.93 |
|
$ |
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
2.95 |
% |
-35.90 |
% |
10.82 |
% |
-15.10 |
% |
-3.34 |
% |
n/a |
|
13.01 |
% |
3.26 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
5.58 |
% |
-39.10 |
% |
8.90 |
% |
-12.44 |
% |
-3.34 |
% |
n/a |
|
2.99 |
% |
3.06 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
3.87 |
% |
-35.90 |
% |
5.26 |
% |
-21.90 |
% |
-14.73 |
% |
n/a |
|
4.37 |
% |
-0.13 |
% |
||||||||
|
Change in Total Rent - Cash |
|
6.56 |
% |
-39.10 |
% |
3.84 |
% |
-18.12 |
% |
-14.73 |
% |
n/a |
|
-4.63 |
% |
-0.02 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
11.47 |
|
$ |
0.76 |
|
$ |
0.33 |
|
$ |
4.21 |
|
$ |
1.77 |
|
$ |
— |
|
$ |
33.77 |
|
$ |
7.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Quarter Ended December 31, 2003: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expiring Square Feet |
|
150,726 |
|
843 |
|
12,018 |
|
94,695 |
|
36,622 |
|
— |
|
8,247 |
|
303,151 |
|
||||||||
|
Vacated Square Feet |
|
5,140 |
|
843 |
|
— |
|
20,247 |
|
6,466 |
|
— |
|
3,572 |
|
36,268 |
|
||||||||
|
Renewed Square Feet |
|
145,586 |
|
— |
|
12,018 |
|
74,448 |
|
30,156 |
|
— |
|
4,675 |
|
266,883 |
|
||||||||
|
Retention Rate (% based upon square feet) |
|
96.59 |
% |
0.00 |
% |
100.00 |
% |
78.62 |
% |
82.34 |
% |
0.00 |
% |
56.69 |
% |
88.04 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed Space Only: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
10.21 |
% |
0.00 |
% |
-4.60 |
% |
2.54 |
% |
16.95 |
% |
n/a |
|
1.50 |
% |
8.34 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
6.88 |
% |
0.00 |
% |
-9.54 |
% |
2.26 |
% |
14.19 |
% |
n/a |
|
0.46 |
% |
5.55 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
2.00 |
% |
0.00 |
% |
-4.86 |
% |
0.97 |
% |
2.68 |
% |
n/a |
|
-1.55 |
% |
1.44 |
% |
||||||||
|
Change in Total Rent - Cash |
|
-0.58 |
% |
0.00 |
% |
-9.88 |
% |
0.99 |
% |
2.27 |
% |
n/a |
|
-2.56 |
% |
-0.53 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
1.70 |
|
$ |
— |
|
$ |
6.91 |
|
$ |
2.37 |
|
$ |
5.64 |
|
$ |
— |
|
$ |
4.10 |
|
$ |
2.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Renewed & Retenanted Space: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Straight-line |
|
9.80 |
% |
-14.39 |
% |
-4.60 |
% |
1.31 |
% |
1.46 |
% |
n/a |
|
-2.62 |
% |
1.05 |
% |
||||||||
|
Change in Total Rent - Straight-line |
|
6.52 |
% |
-15.51 |
% |
-9.54 |
% |
2.44 |
% |
0.94 |
% |
n/a |
|
-2.20 |
% |
-0.44 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Change in Base Rent - Cash |
|
3.29 |
% |
-18.11 |
% |
-4.86 |
% |
-0.41 |
% |
-9.75 |
% |
n/a |
|
-5.55 |
% |
-3.99 |
% |
||||||||
|
Change in Total Rent - Cash |
|
0.54 |
% |
-19.22 |
% |
-9.88 |
% |
1.03 |
% |
-8.85 |
% |
n/a |
|
-4.90 |
% |
-5.07 |
% |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average Capital Cost per Square Foot |
|
$ |
5.37 |
|
$ |
2.56 |
|
$ |
6.91 |
|
$ |
2.86 |
|
$ |
9.75 |
|
$ |
— |
|
$ |
6.49 |
|
$ |
5.18 |
|
Note: No renewal or retenanting activity transpired in our Greater Philadelphia region.
The Southern Maryland submarket has been renamed the St. Mary’s and King George Counties submarket.
33
Year to Date Acquisition Summary as of December 31, 2004
(Dollars in thousands)
|
|
|
Submarket |
|
Acquisition |
|
Square Feet |
|
Occupancy |
|
Contractual |
|
Investment (1) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Individual Property: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
400 Professional Drive |
|
Gaithersburg |
|
3/5/2004 |
|
129,030 |
|
90.0 |
% |
$ |
22,400 |
|
$ |
23,196 |
|
|
22309 Exploration Drive |
|
St. Mary’s County |
|
3/24/2004 |
|
98,860 |
|
100.0 |
% |
13,100 |
|
13,500 |
|
||
|
22299 Exploration Drive |
|
St. Mary’s County |
|
3/24/2004 |
|
58,509 |
|
80.4 |
% |
7,825 |
|
7,847 |
|
||
|
22289 Exploration Drive |
|
St. Mary’s County |
|
3/24/2004 |
|
60,811 |
|
96.2 |
% |
7,875 |
|
7,897 |
|
||
|
46579 Expedition Drive |
|
St. Mary’s County |
|
3/24/2004 |
|
61,156 |
|
82.5 |
% |
7,825 |
|
7,847 |
|
||
|
23535 Cottonwood Parkway |
|
St. Mary’s County |
|
3/24/2004 |
|
46,656 |
|
100.0 |
% |
4,000 |
|
4,011 |
|
||
|
44408 Pecan Court |
|
St. Mary’s County |
|
3/24/2004 |
|
50,532 |
|
100.0 |
% |
4,350 |
|
4,362 |
|
||
|
44414 Pecan Court |
|
St. Mary’s County |
|
3/24/2004 |
|
25,444 |
|
100.0 |
% |
2,125 |
|
2,131 |
|
||
|
44417 Pecan Court |
|
St. Mary’s County |
|
3/24/2004 |
|
29,053 |
|
100.0 |
% |
2,500 |
|
2,507 |
|
||
|
10150 York Road |
|
No. Baltimore County |
|
4/15/2004 |
|
176,689 |
|
77.4 |
% |
16,450 |
|
15,393 |
|
||
|
44425 Pecan Court |
|
St. Mary’s County |
|
5/5/2004 |
|
59,055 |
|
88.4 |
% |
7,400 |
|
7,743 |
|
||
|
1751 Pinnacle Drive |
|
Tysons Corner |
|
9/23/2004 |
|
258,465 |
|
92.8 |
% |
61,274 |
|
59,528 |
|
||
|
1753 Pinnacle Drive |
|
Tysons Corner |
|
9/23/2004 |
|
181,637 |
|
83.3 |
% |
51,226 |
|
46,924 |
|
||
|
14280 Park Meadow Drive |
|
Dulles South |
|
9/29/2004 |
|
114,126 |
|
100.0 |
% |
21,650 |
|
22,903 |
|
||
|
22300 Exploration Drive |
|
St. Mary’s County |
|
11/9/2004 |
|
44,830 |
|
100.0 |
% |
6,250 |
|
6,552 |
|
||
|
44420 Pecan Court |
|
St. Mary’s County |
|
11/9/2004 |
|
25,200 |
|
100.0 |
% |
1,764 |
|
1,877 |
|
||
|
16539 Commerce Drive |
|
King George County |
|
12/21/2004 |
|
32,076 |
|
100.0 |
% |
3,642 |
|
3,787 |
|
||
|
16541 Commerce Drive |
|
King George County |
|
12/21/2004 |
|
36,053 |
|
100.0 |
% |
4,093 |
|
4,256 |
|
||
|
16442 Commerce Drive |
|
King George County |
|
12/21/2004 |
|
25,518 |
|
100.0 |
% |
3,440 |
|
3,512 |
|
||
|
16501 Commerce Drive |
|
King George County |
|
12/21/2004 |
|
22,860 |
|
100.0 |
% |
2,920 |
|
2,981 |
|
||
|
16543 Commerce Drive |
|
King George County |
|
12/21/2004 |
|
17,370 |
|
100.0 |
% |
2,440 |
|
2,491 |
|
||
|
16480 Commerce Drive |
|
King George County |
|
12/28/2004 |
|
70,728 |
|
100.0 |
% |
9,750 |
|
10,203 |
|
||
|
Total |
|
|
|
|
|
1,624,658 |
|
91.8 |
% |
$ |
264,299 |
|
$ |
261,448 |
|
(1) Initial accounting investment recorded by property as of December 31, 2004 for asset purchase. These amounts may differ from the contractual purchase prices due to SFAS 141 adjustments.
34
Development Summary as of December 31,2004
(Dollars in thousands)
|
Property and Location |
|
Submarket |
|
Wholly |
|
Total |
|
Percentage |
|
Anticipated |
|
Cost |
|
Outstanding |
|
Anticipated |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Under Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
2691 Technology Drive (191 NBP) |
|
BWI Airport |
|
Owned |
|
103,683 |
|
100.00 |
% |
$ |
20,249 |
|
$ |
15,249 |
|
$ |
9,606 |
|
Construction |
|
|
Annapolis Junction, Maryland (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 05 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
318 Carina Road (318 NBP) |
|
BWI Airport |
|
Owned |
|
125,847 |
|
0.00 |
% |
21,925 |
|
15,537 |
|
9,811 |
|
Construction |
|
|||
|
Annapolis Junction, Maryland (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 05 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
8621 Robert Fulton Drive (Phase I) |
|
Howard Co. |
|
JV |
|
82,000 |
|
79.44 |
% |
12,720 |
|
3,243 |
|
— |
|
Construction |
|
|||
|
Columbia, Maryland |
|
Perimeter |
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 05 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
304 Carina Road (304 NBP) |
|
BWI Airport |
|
Owned |
|
162,498 |
|
100.00 |
% |
28,960 |
|
12,476 |
|
3,914 |
|
Construction |
|
|||
|
Annapolis Junction, Maryland (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
46591 Expedition Drive (Expedition 6) |
|
St. Mary’s |
|
Owned |
|
60,000 |
|
0.00 |
% |
7,792 |
|
3,503 |
|
— |
|
Construction |
|
|||
|
Lexington Park, Maryland |
|
County |
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
15010 Conference Center Drive (WTP II) |
|
Dulles South |
|
Owned |
|
213,091 |
|
0.00 |
% |
38,351 |
|
12,094 |
|
— |
|
Construction |
|
|||
|
Chantilly, Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
306 Carina Road (306 NBP) |
|
BWI Airport |
|
Owned |
|
160,000 |
|
0.00 |
% |
27,598 |
|
6,475 |
|
— |
|
Construction |
|
|||
|
Annapolis Junction, Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Under Construction |
|
|
|
|
|
907,119 |
|
36.52 |
% |
$ |
157,595 |
|
$ |
68,577 |
|
$ |
23,331 |
|
|
|
(1) Total loan commitment is $16.6 million.
(2) Total loan commitment is $19.3 million.
(3) Total loan commitment is $27.1 million.
|
Under Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
322 Carina Road (322 NBP) |
|
BWI Airport |
|
Owned |
|
125,847 |
|
0.00 |
% |
$ |
21,781 |
|
$ |
4,460 |
|
$ |
— |
|
Development |
|
|
Annapolis Junction, Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
6711 Columbia Gateway Drive |
|
Howard Co. |
|
Owned |
|
125,000 |
|
0.00 |
% |
24,495 |
|
7,128 |
|
— |
|
Development |
|
|||
|
Columbia, Maryland |
|
Perimeter |
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
320 Carina Road (320 NBP) |
|
BWI Airport |
|
Owned |
|
125,760 |
|
0.00 |
% |
22,370 |
|
3,289 |
|
— |
|
Development |
|
|||
|
Annapolis Junction, Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 06 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
302 Carina Road (302 NBP) |
|
BWI Airport |
|
Owned |
|
160,000 |
|
0.00 |
% |
30,547 |
|
4,041 |
|
— |
|
Development |
|
|||
|
Annapolis Junction, Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2007 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Under Development |
|
|
|
|
|
536,607 |
|
0.00 |
% |
$ |
99,193 |
|
$ |
18,918 |
|
$ |
— |
|
|
|
35
Development Placed into Service for the Year Ended December 31, 2004
|
Property and Location |
|
Wholly Owned |
|
Total Square |
|
Year 2004 |
|
Percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
4230 Forbes Boulevard, Lanham, MD |
|
JV |
|
55,867 |
|
55,867 |
|
47.98 |
% |
|
2720 Technology Drive, Annapolis Junction, MD (1) |
|
Owned |
|
156,730 |
|
156,730 |
|
100.00 |
% |
|
4851 Stonecroft Boulevard, Chantilly, VA |
|
Owned |
|
88,094 |
|
88,094 |
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL/AVERAGE |
|
|
|
300,691 |
|
300,691 |
|
90.33 |
% |
(1) At the time that this development property was placed into service, it was still considered a joint venture property.
On September 11, 2004, we purchased the remaining joint venture interest.
36
Land Inventory as of December 31, 2004
|
Location |
|
Submarket |
|
Owned |
|
Acres |
|
Developable |
|
|
|
|
|
|
|
|
|
|
|
|
|
Westfields Corporate Center |
|
Dulles South |
|
owned |
|
17 |
|
387,000 |
|
|
Westfields Corporate Center |
|
Dulles South |
|
owned |
|
32 |
|
674,000 |
|
|
Woodland Park |
|
Herndon |
|
owned |
|
5 |
|
225,000 |
|
|
Total Northern Virginia |
|
|
|
|
|
54 |
|
1,286,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
National Business Park |
|
BWI Airport |
|
owned |
|
34 |
|
500,000 |
|
|
Columbia Gateway Exchange III |
|
Howard Co. Perimeter |
|
leased |
|
4 |
|
125,000 |
|
|
Columbia Gateway Parcel T-11 |
|
Howard Co. Perimeter |
|
owned |
|
14 |
|
215,000 |
|
|
Columbia Gateway Parcel N-10 |
|
Howard Co. Perimeter |
|
JV |
|
4 |
|
49,400 |
|
|
Columbia Gateway Parcel N-11 |
|
Howard Co. Perimeter |
|
owned |
|
3 |
|
28,500 |
|
|
MOR Montpelier 3 |
|
Howard Co. Perimeter |
|
JV |
|
2 |
|
19,000 |
|
|
Total Baltimore / Washington Corridor |
|
|
|
|
|
61 |
|
936,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unisys Campus |
|
Blue Bell |
|
owned |
|
45 |
|
600,000 |
|
|
Unisys Campus |
|
Blue Bell |
|
option |
|
27 |
|
354,000 |
|
|
Total Greater Philadelphia |
|
|
|
|
|
72 |
|
954,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Princeton Technology Center |
|
Exit 8A - Cranbury |
|
owned |
|
19 |
|
250,000 |
|
|
Total Northern / Central New Jersey |
|
|
|
|
|
19 |
|
250,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expedition Park |
|
St. Mary’s |
|
owned |
|
6 |
|
60,000 |
|
|
Total St. Mary’s County |
|
|
|
|
|
6 |
|
60,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commerce Court |
|
Commerce Park |
|
option |
|
6 |
|
68,000 |
|
|
Total Harrisburg |
|
|
|
|
|
6 |
|
68,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
|
|
|
|
218 |
|
3,554,900 |
|
This land inventory schedule excludes all properties listed as under construction or under development as detailed on page 35.
37
Joint Venture Summary as of December 31, 2004
(Dollars in thousands)
Consolidated Properties
|
Property and Location |
|
Joint Venture |
|
Status |
|
Square |
|
Acreage |
|
Total |
|
Consolidated |
|
Recourse |
|
Option to |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
4230 Forbes Boulevard Lanham, Maryland |
|
50 |
% |
Operating |
|
55,867 |
|
5 acres |
|
$ |
4,637 |
|
$ |
3,631 |
|
Yes, up to $4.5 million |
|
Yes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
MOR Montpelier 3 LLC Laurel, Maryland |
|
50 |
% |
Development |
|
|
|
2 acres |
|
947 |
|
— |
|
N/A |
|
Yes |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
8621 Robert Fulton Drive Columbia, Maryland |
|
80 |
% |
Development |
|
82,000 |
|
12 acres |
|
4,510 |
|
— |
|
N/A |
|
Yes |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
TOTAL |
|
|
|
|
|
|
|
|
|
$ |
10,094 |
|
$ |
3,631 |
|
|
|
|
|
Unconsolidated Properties
|
Property and Location |
|
Joint Venture |
|
Status |
|
Square |
|
Acreage |
|
COPT |
|
Off-Balance |
|
Recourse |
|
Option to |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
695 Route 46 |
|
20 |
% |
Operating |
|
157,394 |
|
13 acres |
|
$ |
1,201 |
|
$ |
14,059 |
|
No |
|
No |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
TOTAL |
|
|
|
|
|
|
|
|
|
$ |
1,201 |
|
$ |
14,059 |
|
|
|
|
|
38
Reconciliations of Non GAAP Measurements
(Dollars in thousands)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total Assets or Denominator for Debt to Total Assets |
|
$ |
1,732,026 |
|
$ |
1,650,726 |
|
$ |
1,490,701 |
|
$ |
1,432,010 |
|
$ |
1,332,076 |
|
|
Accumulated depreciation |
|
141,716 |
|
131,018 |
|
121,630 |
|
110,155 |
|
103,070 |
|
|||||
|
Intangible assets on real estate acquisitions, net |
|
67,560 |
|
67,083 |
|
53,874 |
|
55,577 |
|
55,692 |
|
|||||
|
Assets other than assets included in investment in real estate |
|
(187,525 |
) |
(163,557 |
) |
(161,591 |
) |
(145,229 |
) |
(142,818 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Denominator for Debt to Undepreciated Book Value of Real Estate Assets |
|
$ |
1,753,777 |
|
$ |
1,685,270 |
|
$ |
1,504,614 |
|
$ |
1,452,513 |
|
$ |
1,348,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP Revenues from Real Estate Operations |
|
$ |
58,613 |
|
$ |
53,097 |
|
$ |
53,892 |
|
$ |
48,971 |
|
$ |
46,579 |
|
|
Revenues from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Other income/(expense) |
|
1 |
|
(1 |
) |
— |
|
— |
|
— |
|
|||||
|
Combined Real Estate Revenues |
|
$ |
58,614 |
|
$ |
53,096 |
|
$ |
53,892 |
|
$ |
48,971 |
|
$ |
46,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP Property Operating |
|
$ |
17,170 |
|
$ |
16,197 |
|
$ |
14,647 |
|
$ |
15,039 |
|
$ |
13,869 |
|
|
Property operating from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Combined Property Operating Expenses from Real Estate Operations |
|
$ |
17,170 |
|
$ |
16,197 |
|
$ |
14,647 |
|
$ |
15,039 |
|
$ |
13,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP Revenues from Real Estate Operations |
|
$ |
58,613 |
|
$ |
53,097 |
|
$ |
53,892 |
|
$ |
48,971 |
|
$ |
46,579 |
|
|
Property operating |
|
(17,170 |
) |
(16,197 |
) |
(14,647 |
) |
(15,039 |
) |
(13,869 |
) |
|||||
|
Revenues from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Property operating from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Other revenue |
|
1 |
|
(1 |
) |
— |
|
— |
|
— |
|
|||||
|
Combined Net Operating Income |
|
$ |
41,444 |
|
$ |
36,899 |
|
$ |
39,245 |
|
$ |
33,932 |
|
$ |
32,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP Net Operating Income for Same Office Properties |
|
$ |
33,186 |
|
$ |
32,804 |
|
$ |
36,186 |
|
$ |
32,931 |
|
$ |
32,692 |
|
|
Less: Straight-line rent |
|
(1,998 |
) |
(2,271 |
) |
(1,851 |
) |
(674 |
) |
(1,036 |
) |
|||||
|
Less: Accretion of intangible assets and liabilities classified as revenues |
|
(232 |
) |
(268 |
) |
(265 |
) |
(312 |
) |
(352 |
) |
|||||
|
Cash Net Operating Income for Same Office Properties |
|
$ |
30,956 |
|
$ |
30,265 |
|
$ |
34,070 |
|
$ |
31,945 |
|
$ |
31,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization |
|
$ |
13,859 |
|
$ |
11,802 |
|
$ |
15,884 |
|
$ |
10,359 |
|
$ |
10,387 |
|
|
Depreciation of furniture, fixtures and equipment |
|
(234 |
) |
(101 |
) |
(99 |
) |
(98 |
) |
(96 |
) |
|||||
|
Depreciation and amortization from discontinued operations |
|
(1 |
) |
(1 |
) |
— |
|
— |
|
— |
|
|||||
|
Combined real estate related depreciation and other amortization |
|
$ |
13,624 |
|
$ |
11,700 |
|
$ |
15,785 |
|
$ |
10,261 |
|
$ |
10,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total tenant improvements on operating properties |
|
$ |
3,455 |
|
$ |
3,924 |
|
$ |
4,420 |
|
$ |
2,268 |
|
$ |
2,306 |
|
|
Total capital improvements on operating properties |
|
4,121 |
|
3,669 |
|
1,723 |
|
836 |
|
1,677 |
|
|||||
|
Total leasing costs incurred for operating properties |
|
2,761 |
|
2,598 |
|
5,793 |
|
566 |
|
1,197 |
|
|||||
|
Less: Nonrecurring tenant improvements on operating properties |
|
(772 |
) |
(1,454 |
) |
(1,655 |
) |
(112 |
) |
(936 |
) |
|||||
|
Less: Nonrecurring capital improvements on operating properties |
|
(2,834 |
) |
(2,920 |
) |
(841 |
) |
(505 |
) |
(476 |
) |
|||||
|
Less: Nonrecurring leasing costs incurred for operating properties |
|
(2,036 |
) |
(1,138 |
) |
(4,443 |
) |
(30 |
) |
(51 |
) |
|||||
|
Add: Recurring improvements on operating properties held through joint ventures |
|
— |
|
— |
|
— |
|
— |
|
(3 |
) |
|||||
|
Recurring capital improvements |
|
$ |
4,695 |
|
$ |
4,679 |
|
$ |
4,997 |
|
$ |
3,023 |
|
$ |
3,714 |
|
39
Reconciliations of Non GAAP Measurements (continued)
|
|
|
2004 |
|
2003 |
|
|||||||||||
|
|
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest expense from continuing operations |
|
$ |
12,648 |
|
$ |
10,839 |
|
$ |
10,514 |
|
$ |
10,262 |
|
$ |
10,471 |
|
|
Interest expense from discontinued operations |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Combined interest expense or denominator for interest coverage |
|
$ |
12,648 |
|
$ |
10,839 |
|
$ |
10,514 |
|
$ |
10,262 |
|
$ |
10,471 |
|
|
Scheduled principal amortization |
|
6,093 |
|
5,775 |
|
5,271 |
|
6,618 |
|
2,667 |
|
|||||
|
Denominator for Debt Service Coverage |
|
$ |
18,741 |
|
$ |
16,614 |
|
$ |
15,785 |
|
$ |
16,880 |
|
$ |
13,138 |
|
|
Scheduled principal amortization |
|
(6,093 |
) |
(5,775 |
) |
(5,271 |
) |
(6,618 |
) |
(2,667 |
) |
|||||
|
Preferred dividends - redeemable non-convertible |
|
3,654 |
|
3,784 |
|
4,435 |
|
4,435 |
|
3,643 |
|
|||||
|
Preferred dividends - redeemable convertible |
|
— |
|
— |
|
— |
|
21 |
|
136 |
|
|||||
|
Preferred distributions |
|
165 |
|
14 |
|
— |
|
— |
|
— |
|
|||||
|
Denominator for Fixed Charge Coverage |
|
$ |
16,467 |
|
$ |
14,637 |
|
$ |
14,949 |
|
$ |
14,718 |
|
$ |
14,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Common dividends for Earnings Payout Ratio |
|
$ |
9,288 |
|
$ |
9,235 |
|
$ |
7,878 |
|
$ |
7,178 |
|
$ |
6,807 |
|
|
Common distributions |
|
2,179 |
|
2,202 |
|
2,057 |
|
2,074 |
|
2,084 |
|
|||||
|
Restricted shares |
|
98 |
|
— |
|
— |
|
— |
|
— |
|
|||||
|
Convertible preferred dividends |
|
— |
|
— |
|
— |
|
21 |
|
136 |
|
|||||
|
Dividends and distributions for FFO and AFFO Payout Ratio |
|
$ |
11,565 |
|
$ |
11,437 |
|
$ |
9,935 |
|
$ |
9,273 |
|
$ |
9,027 |
|
40