Exhibit 99.1

 

Supplemental Information

(Unaudited)

 

 

March 31, 2005

 

 

 

CORPORATE
OFFICE
PROPERTIES

 

 


 

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

March 31, 2005

 

Highlights and Discussion

 

Reporting Period Highlights – First Quarter 2005

1

Forward-Looking Statements

2

 

 

Financial Statements

 

Quarterly Selected Financial Summary Data

4

Quarterly Consolidated Balance Sheets

5

Quarterly Consolidated Statements of Operations

6

Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Earnings per diluted share, as adjusted

7

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

8

 

 

Selected Financial Analyses

 

Quarterly Equity Analysis

9

Quarterly Debt Analysis

10

Quarterly Operating Ratios

11

Quarterly Dividend Analysis

12

Investor Composition and Analyst Coverage

13

Debt Maturity Schedule – March 31, 2005

14

 

 

Portfolio Summary

 

Property Summary by Region – March 31, 2005

15

Property Occupancy Rates by Region by Quarter

19

Top Twenty Office Tenants as of March 31, 2005

20

Combined Real Estate Revenue and Combined Net Operating Income by Geographic Region by Quarter

21

Same Office Property Cash and GAAP Net Operating Income by Quarter

22

Average Occupancy Rates by Region for Same Office Properties

23

Office Lease Expiration Analysis by Year

24

Quarterly Office Renewal Analysis as of March 31, 2005

25

Year to Date Acquisition Summary as of March 31, 2005

26

Development Summary as of March 31, 2005

27

Land Inventory as of March 31, 2005

28

Joint Venture Summary as of March 31, 2005

29

Reconciliations of Non GAAP Measurements

30

 


 

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 30 through 31.  Refer to our Form 8k for definitions of certain terms used herein.

 

Reporting Period Highlights – First Quarter 2005

 

Financial Results

 

•                  Reported Net Income Available to Common Shareholders of $5,386,000 or $.14 per diluted share for the first quarter of 2005 as compared to $4,537,000 or $.14 per diluted share for the comparable 2004 period.

•                  Reported FFO – diluted of $21,143,000 or $.45 per share/unit for the first quarter of 2005 as compared to $16,307,000 or $.40 per share/unit for the comparable 2004 period, representing an increase of 12.5% per share/unit.

•                  Reported AFFO – diluted of $14,756,000 for the first quarter of 2005 as compared to $12,209,000 for the comparable 2004 period, representing an increase of 20.9%.

•                  Our FFO payout ratio was 54.5% for the first quarter of 2005 as compared to 56.9% for the comparable 2004 period.  Our AFFO payout ratio was 78.1% for the first quarter of 2005 as compared to 76.0% for the comparable 2004 period.

 

Financing Activity and Capital Transactions

 

•                  On March 21, 2005, we closed on a $32.0 million credit facility to fund the construction of Washington Tech Park II in Chantilly, Virginia and have borrowed $6.0 million as of March 31, 2005.

•                  As of March 31, 2005, our debt to market capitalization was 44.1% and our debt to undepreciated book value of real estate assets was 59.5%.  We achieved an EBITDA interest coverage ratio of 2.95x and an EBITDA fixed charge coverage ratio of 2.29x for this quarter.

 

Acquisitions / Dispositions

 

•                  On January 27, 2005, we acquired 19 acres of land, which can accommodate 246,773 developable square feet of office space, located in Westfields Corporate Center for $7.1 million.

•                  On March 16, 2005, we acquired 39 acres of land, which can accommodate 120,000 developable square feet of office space, located in Dahlgren Technology Center for $1.2 million.

•                  On March 30, 2005, we entered the San Antonio, Texas market with our $30.5 million purchase of two buildings containing 468,994 rentable square feet.  We have leased the entire space, which is under redevelopment to a sole tenant, with occupancy anticipated in the fourth quarter of 2005.  The company expects to spend approximately $7.5 million in capital expenditures prior to rent commencement.  In addition, we acquired an adjacent 15.7 acre parcel of land for $3.0 million.

 

1


 

Development

 

•                  We executed a long-term lease with a large creditworthy tenant for all 125,681 rentable square feet of the building to be located at 318 Carina Road (known as 318 NBP).  This building is under construction with an anticipated occupancy in the fourth quarter of 2005.

 

Operations

 

•                  Overall occupancy was 92.44% and our portfolio was 93.19% leased as of March 31, 2005.

•                  Our same property for cash NOI decreased slightly by 1.2% or $397,000 as compared to the quarter ended March 31, 2004.  Included in cash NOI our same office portfolio, among other effects, is a decrease of $1.1 million in base rent and termination fees associated with the former tenant, AT&T, at 431 Ridge Road.  Our same property portfolio consists of 119 properties and represents 82.6% of our total square feet owned as of March 31, 2005.

•                  Weighted average lease term of our office portfolio is 4.9 years as of March 31, 2005, with an average contractual rental rate (including tenant reimbursements of operating costs) of $20.68 per square foot.

•                  We renewed 361,299 square feet, or 80.3%, of our expiring office leases (based upon square footage) with an average committed cost of $1.80 per square foot during the first quarter.  For our renewed and retenanted space of approximately 472,000 square feet, we realized an increase in total rent of 5.0%, as measured from the GAAP straight-line rent in effect preceding the renewal date and (1.9%) in total cash rent.  We incurred an average committed cost of $5.66 per square foot for our renewed and retenanted space in the first quarter.

 

Subsequent Events

 

•                  On April 7, 2005, we acquired, for $43.3 million, two office buildings containing 221,702 square feet and an adjacent 9.7 acres of land for future development that will support 215,000 square feet in Montgomery County, Maryland.  We funded this purchase with proceeds from a $55.0 million bridge loan that matures in October 2005 and bears interest at varying rates based on a leverage grid.

•                  On April 7, 2005 we executed a $73.4 million notional amount forward swap at a fixed rate of 5.0244%, which commences in July 2005 and expires in July 2015.

•                  On April 11, 2005, we formed a joint venture with a limited partnership to develop up to 1.8 million square feet of office space on 63 acres of land located at Arundel Preserve in the Baltimore Washington Corridor, Hanover, Maryland.

 

Forward-Looking Statements

 

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

 

2


 

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.

 

3


 

Quarterly Selected Financial Summary Data

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from Real Estate Operations

 

$

60,627

 

$

58,613

 

$

53,097

 

$

53,892

 

$

48,971

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

77,724

 

66,328

 

60,563

 

59,962

 

56,623

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined Net Operating Income

 

41,709

 

41,444

 

36,899

 

39,245

 

33,932

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

39,366

 

38,439

 

34,713

 

37,020

 

32,078

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

9,040

 

9,446

 

9,750

 

8,843

 

8,993

 

Preferred Share dividends

 

(3,654

)

(3,654

)

(3,784

)

(4,435

)

(4,456

)

Issuance costs associated with redeemed preferred shares

 

—

 

—

 

(1,813

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Shareholders

 

$

5,386

 

$

5,792

 

$

4,153

 

$

4,408

 

$

4,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share

 

$

0.14

 

$

0.15

 

$

0.12

 

$

0.13

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares

 

$

0.14

 

$

0.15

 

$

0.17

 

$

0.13

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO) - Diluted

 

$

21,143

 

$

20,879

 

$

17,368

 

$

21,410

 

$

16,307

 

FFO per diluted share

 

$

0.45

 

$

0.45

 

$

0.39

 

$

0.50

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted share, as adjusted for issuance costs associated with redeemed preferred shares

 

$

0.45

 

$

0.45

 

$

0.43

 

$

0.50

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted FFO - Diluted

 

$

14,756

 

$

13,164

 

$

11,759

 

$

13,956

 

$

12,209

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Payout

 

173.4

%

160.4

%

222.4

%

178.7

%

158.2

%

 

 

 

 

 

 

 

 

 

 

 

 

FFO - Diluted

 

54.5

%

55.4

%

65.9

%

46.4

%

56.9

%

 

 

 

 

 

 

 

 

 

 

 

 

AFFO - Diluted

 

78.1

%

87.9

%

97.3

%

71.2

%

76.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Dividends/Distributions

 

$

15,337

 

$

15,286

 

$

15,235

 

$

14,370

 

$

13,708

 

 

Note: The above presentation does not separately report discontinued operations.

 

4


 

Quarterly Consolidated Balance Sheets

(Dollars in thousands except per share data)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Investment in real estate:

 

 

 

 

 

 

 

 

 

 

 

Land - operational

 

$

268,307

 

$

268,327

 

$

260,197

 

$

236,026

 

$

229,558

 

Land - development

 

97,085

 

74,190

 

75,925

 

70,407

 

59,231

 

Construction in progress

 

109,345

 

61,962

 

49,453

 

51,387

 

35,387

 

Buildings and improvements

 

1,294,457

 

1,280,537

 

1,231,518

 

1,091,865

 

1,071,701

 

Investment in and advances to unconsolidated real estate joint ventures

 

1,209

 

1,201

 

1,094

 

1,055

 

1,059

 

Less: accumulated depreciation

 

(153,127

)

(141,716

)

(131,018

)

(121,630

)

(110,155

)

Net investment in real estate

 

1,617,276

 

1,544,501

 

1,487,169

 

1,329,110

 

1,286,781

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

6,212

 

13,821

 

6,812

 

12,202

 

9,536

 

Restricted cash

 

13,830

 

12,617

 

10,760

 

12,137

 

13,528

 

Accounts receivable, net

 

17,529

 

16,771

 

10,209

 

16,002

 

9,708

 

Investment in and advances to other unconsolidated entities

 

1,621

 

1,621

 

1,621

 

1,621

 

1,621

 

Deferred rent receivable

 

27,890

 

26,282

 

23,383

 

20,857

 

18,673

 

Deferred charges, net

 

27,168

 

27,642

 

26,407

 

24,006

 

19,551

 

Intangible assets on real estate acquisitions, net

 

64,965

 

67,560

 

67,083

 

53,874

 

55,577

 

Prepaid and other assets

 

19,658

 

18,646

 

14,703

 

18,380

 

14,719

 

Furniture, fixtures and equipment, net

 

2,771

 

2,565

 

2,579

 

2,512

 

2,316

 

Total assets

 

$

1,798,920

 

$

1,732,026

 

$

1,650,726

 

$

1,490,701

 

$

1,432,010

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Mortgage and other loans payable

 

$

1,091,688

 

$

1,022,688

 

$

947,332

 

$

820,344

 

$

829,755

 

Accounts payable and accrued expenses

 

46,400

 

46,307

 

41,168

 

37,535

 

29,217

 

Rents received in advance and security deposits

 

13,298

 

12,781

 

11,519

 

11,950

 

11,842

 

Deferred revenue associated with acquired operating leases

 

6,612

 

7,247

 

7,670

 

8,335

 

8,734

 

Dividends and distributions payable

 

14,766

 

14,713

 

14,533

 

13,668

 

12,991

 

Fair value of derivatives

 

—

 

—

 

45

 

106

 

429

 

Other liabilities

 

7,661

 

7,488

 

7,115

 

7,105

 

3,184

 

Total liabilities

 

1,180,425

 

1,111,224

 

1,029,382

 

899,043

 

896,152

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interests:

 

 

 

 

 

 

 

 

 

 

 

Preferred units in the Operating Partnership

 

8,800

 

8,800

 

8,800

 

—

 

—

 

Common units in the Operating Partnership

 

87,539

 

88,355

 

90,029

 

84,844

 

79,245

 

Other consolidated real estate joint ventures

 

1,699

 

1,723

 

1,594

 

5,602

 

5,498

 

Total minority interests

 

98,038

 

98,878

 

100,423

 

90,446

 

84,743

 

 

 

 

 

 

 

 

 

 

 

 

 

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 March 31, 2005)

 

—

 

—

 

—

 

13

 

13

 

1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of March 31, 2005)

 

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 March 31, 2005)

 

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 March 31, 2005)

 

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 March 31, 2005)

 

20

 

20

 

20

 

20

 

20

 

Common Shares of beneficial interest ($0.01 par value; 75,000,000 authorized, 37,043,386 shares issued as of March 31, 2005)

 

370

 

368

 

367

 

340

 

311

 

Additional paid-in capital

 

582,805

 

578,228

 

573,766

 

550,927

 

497,718

 

Cumulative distributions in excess of net income

 

(55,312

)

(51,358

)

(47,862

)

(44,593

)

(41,123

)

Value of unearned restricted common share grants

 

(7,473

)

(5,381

)

(5,381

)

(5,459

)

(5,543

)

Accumulated other comprehensive loss

 

—

 

—

 

(36

)

(83

)

(328

)

Total shareholders’ equity

 

520,457

 

521,924

 

520,921

 

501,212

 

451,115

 

Total shareholders’ equity and minority interests

 

618,495

 

620,802

 

621,344

 

591,658

 

535,858

 

Total liabilities and shareholders’ equity

 

$

1,798,920

 

$

1,732,026

 

$

1,650,726

 

$

1,490,701

 

$

1,432,010

 

 

5


 

Quarterly Consolidated Statements of Operations

(Dollars and units in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

53,263

 

$

52,630

 

$

47,491

 

$

49,038

 

$

43,194

 

Tenant recoveries and other real estate operations revenue

 

7,364

 

5,983

 

5,606

 

4,854

 

5,777

 

Construction contract revenues

 

15,728

 

6,882

 

6,766

 

5,233

 

6,137

 

Other service operations revenues

 

1,369

 

833

 

700

 

837

 

1,515

 

Total Revenues

 

77,724

 

66,328

 

60,563

 

59,962

 

56,623

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

18,918

 

17,170

 

16,197

 

14,647

 

15,039

 

Depreciation and amortization associated with real estate operations

 

14,666

 

13,859

 

11,802

 

15,884

 

10,359

 

Construction contract expenses

 

14,897

 

6,453

 

6,483

 

4,979

 

5,818

 

Other service operations expenses

 

1,291

 

823

 

495

 

853

 

1,092

 

General and administrative expenses

 

3,276

 

3,467

 

2,698

 

2,487

 

2,286

 

Total operating expenses

 

53,048

 

41,772

 

37,675

 

38,850

 

34,594

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

24,676

 

24,556

 

22,888

 

21,112

 

22,029

 

Interest expense

 

(13,358

)

(12,648

)

(10,839

)

(10,514

)

(10,262

)

Amortization of deferred financing costs

 

(396

)

(495

)

(577

)

(500

)

(859

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before gain/(loss) on sales of real estate, equity in (loss) of unconsolidated entities, income taxes and minority interests

 

10,922

 

11,413

 

11,472

 

10,098

 

10,908

 

Gain/(loss) on sales of real estate, excluding discontinued operations

 

24

 

24

 

24

 

24

 

(222

)

Equity in (loss) of unconsolidated entities

 

—

 

—

 

—

 

—

 

(88

)

Income tax (expense)

 

(457

)

(420

)

(145

)

(30

)

(200

)

Income from continuing operations before minority interests

 

10,489

 

11,017

 

11,351

 

10,092

 

10,398

 

Minority interest in income from continuing operations

 

 

 

 

 

 

 

 

 

 

 

Common units in the Operating Partnership

 

(1,308

)

(1,418

)

(1,595

)

(1,241

)

(1,405

)

Preferred units in the Operating Partnership

 

(165

)

(165

)

(14

)

—

 

—

 

Other consolidated entities

 

24

 

12

 

8

 

(8

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

9,040

 

9,446

 

9,750

 

8,843

 

8,993

 

Income from discontinued operations, net of minority interests

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

9,040

 

9,446

 

9,750

 

8,843

 

8,993

 

Preferred share dividends

 

(3,654

)

(3,654

)

(3,784

)

(4,435

)

(4,456

)

Issuance costs associated with redeemed preferred shares

 

—

 

—

 

(1,813

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Shareholders

 

$

5,386

 

$

5,792

 

$

4,153

 

$

4,408

 

$

4,537

 

 

 

 

 

 

 

 

 

 

 

 

 

For EPS Computations:

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Shareholders

 

$

5,386

 

$

5,792

 

$

4,153

 

$

4,408

 

$

4,537

 

Dividends on convertible preferred shares

 

—

 

—

 

—

 

—

 

21

 

Numerator for Dilutive EPS Computation

 

$

5,386

 

$

5,792

 

$

4,153

 

$

4,408

 

$

4,558

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares - Basic

 

36,555

 

36,296

 

33,797

 

32,743

 

29,814

 

Dilutive options

 

1,537

 

1,638

 

1,655

 

1,639

 

1,749

 

Preferred shares outstanding assuming conversion

 

—

 

—

 

—

 

—

 

539

 

Weighted Average Common Shares - Diluted

 

38,092

 

37,934

 

35,452

 

34,382

 

32,102

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share

 

$

0.14

 

$

0.15

 

$

0.12

 

$

0.13

 

$

0.14

 

 

6


 

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)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

9,040

 

$

9,446

 

$

9,750

 

$

8,843

 

$

8,993

 

Issuance costs associated with redeemed preferred shares

 

—

 

—

 

(1,813

)

—

 

—

 

Combined real estate related depreciation and other amortization

 

14,505

 

13,625

 

11,700

 

15,785

 

10,261

 

Depreciation and amortization of unconsolidated real estate entities

 

—

 

—

 

—

 

—

 

106

 

Depreciation and amortization allocable to minority interests in other consol. entities

 

(32

)

(30

)

(56

)

—

 

—

 

Gain on sale of real estate properties, excluding redevelopment

 

(24

)

(24

)

(24

)

(24

)

(23

)

Funds From Operations (FFO)

 

23,489

 

23,017

 

19,557

 

24,604

 

19,337

 

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest - common units, gross

 

1,308

 

1,418

 

1,595

 

1,241

 

1,405

 

Preferred share dividends

 

(3,654

)

(3,654

)

(3,784

)

(4,435

)

(4,456

)

Funds From Operations (FFO) - Basic

 

21,143

 

20,781

 

17,368

 

21,410

 

16,286

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible preferred share dividends

 

—

 

—

 

—

 

—

 

21

 

Restricted share dividends

 

—

 

98

 

—

 

—

 

—

 

Funds From Operations (FFO) - Diluted

 

$

21,143

 

$

20,879

 

$

17,368

 

$

21,410

 

$

16,307

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight line rent adjustments

 

(1,583

)

(2,895

)

(2,519

)

(2,184

)

(766

)

Amortization of deferred market rental revenue

 

(70

)

(125

)

(224

)

(273

)

(309

)

Issuance costs associated with redeemed preferred shares

 

—

 

—

 

1,813

 

—

 

—

 

Recurring capital expenditures

 

(4,734

)

(4,695

)

(4,679

)

(4,997

)

(3,023

)

Adjusted Funds from Operations - Diluted

 

$

14,756

 

$

13,164

 

$

11,759

 

$

13,956

 

$

12,209

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred dividends - redeemable non-convertible (1)

 

3,654

 

3,654

 

3,784

 

4,435

 

4,435

 

Preferred dividends - redeemable convertible

 

—

 

—

 

—

 

—

 

21

 

Preferred distributions

 

165

 

165

 

14

 

—

 

—

 

Common distributions

 

2,179

 

2,179

 

2,202

 

2,057

 

2,074

 

Common dividends

 

9,339

 

9,288

 

9,235

 

7,878

 

7,178

 

Total Dividends/Distributions

 

$

15,337

 

$

15,286

 

$

15,235

 

$

14,370

 

$

13,708

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for earnings per share - Diluted

 

38,092

 

37,934

 

35,452

 

34,382

 

32,102

 

Common units

 

8,544

 

8,588

 

8,690

 

8,765

 

8,863

 

Restricted shares

 

—

 

238

 

—

 

—

 

—

 

Denominator for funds from operations per share - Diluted

 

46,636

 

46,760

 

44,142

 

43,147

 

40,965

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO) - Diluted

 

$

21,143

 

$

20,879

 

$

17,368

 

$

21,410

 

$

16,307

 

Issuance costs associated with redeemed preferred shares (1)

 

n/a

 

n/a

 

1,813

 

n/a

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO diluted, as adjusted for issuance costs associated with redeemed preferred shares

 

$

21,143

 

$

20,879

 

$

19,181

 

$

21,410

 

$

16,307

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator for Dilutive EPS Computation

 

$

5,386

 

$

5,792

 

$

4,153

 

$

4,408

 

$

4,558

 

Issuance costs associated with redeemed preferred shares (1)

 

n/a

 

n/a

 

1,813

 

n/a

 

n/a

 

Numerator for Dilutive EPS Computation, as adjusted

 

$

5,386

 

$

5,792

 

$

5,966

 

$

4,408

 

$

4,558

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares

 

$

0.14

 

$

0.15

 

$

0.17

 

$

0.13

 

$

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.

 

7


 

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)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

9,040

 

$

9,446

 

$

9,750

 

$

8,843

 

$

8,993

 

Combined interest expense

 

13,358

 

12,648

 

10,839

 

10,514

 

10,262

 

Amortization of deferred financing costs

 

396

 

495

 

577

 

500

 

859

 

Income tax expense, gross

 

457

 

420

 

145

 

30

 

200

 

Depreciation of furniture, fixtures and equipment

 

161

 

234

 

101

 

99

 

98

 

Combined real estate related depreciation and other amortization

 

14,505

 

13,625

 

11,700

 

15,785

 

10,261

 

Minority interest - preferred units

 

165

 

165

 

14

 

—

 

—

 

Minority interest - consolidated partnerships

 

(24

)

(12

)

(8

)

8

 

—

 

Minority interest - common units, gross

 

1,308

 

1,418

 

1,595

 

1,241

 

1,405

 

Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)

 

$

39,366

 

$

38,439

 

$

34,713

 

$

37,020

 

$

32,078

 

Addback:

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

3,276

 

3,467

 

2,698

 

2,487

 

2,286

 

(Income) from service operations

 

(909

)

(439

)

(488

)

(238

)

(742

)

Equity in loss/(income) of unconsol. real estate joint ventures

 

—

 

—

 

—

 

—

 

88

 

Gain on sale of depreciated real estate properties

 

(24

)

(24

)

(24

)

(24

)

(23

)

Merchant sales and real estate services

 

—

 

1

 

—

 

—

 

245

 

Combined Net Operating Income (NOI)

 

$

41,709

 

$

41,444

 

$

36,899

 

$

39,245

 

$

33,932

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

24

 

$

(222

)

(Loss)/gain on sales of real estate from discontinued operations

 

—

 

—

 

—

 

—

 

—

 

Combined gain/(loss) on sales of real estate

 

24

 

24

 

24

 

24

 

(222

)

Merchant sales and real estate services

 

—

 

—

 

—

 

—

 

245

 

Gain on sales of depreciated real estate properties

 

$

24

 

$

24

 

$

24

 

$

24

 

$

23

 

 

8


 

Quarterly Equity Analysis

(Amounts in thousands except per share data, share prices and ratios)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Common Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

37,043

 

36,842

 

36,635

 

33,952

 

30,976

 

Common Units

 

8,544

 

8,544

 

8,634

 

8,754

 

8,826

 

Total

 

45,587

 

45,386

 

45,269

 

42,706

 

39,803

 

End of Quarter Common Share Price

 

$

26.48

 

$

29.35

 

$

25.62

 

$

24.85

 

$

25.00

 

Market Value of Common Shares/Units

 

$

1,207,144

 

$

1,332,079

 

$

1,159,792

 

$

1,061,244

 

$

995,064

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares Trading Volume

 

 

 

 

 

 

 

 

 

 

 

Average Daily Volume (Shares)

 

129

 

140

 

135

 

187

 

126

 

Average Daily Volume (Dollars in thousands)

 

$

3,437.50

 

$

3,829.59

 

$

3,432.70

 

$

4,226.56

 

$

2,853.28

 

As a Percentage of Common Shares

 

0.4

%

0.4

%

0.4

%

0.6

%

0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price Range

 

 

 

 

 

 

 

 

 

 

 

Quarterly High

 

$

29.30

 

$

29.37

 

$

26.91

 

$

25.10

 

$

25.05

 

Quarterly Low

 

$

25.14

 

$

25.70

 

$

24.09

 

$

19.00

 

$

20.28

 

Quarterly Average

 

$

26.55

 

$

27.39

 

$

25.38

 

$

22.55

 

$

22.62

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Convertible Series I Preferred Units Outstanding (1)

 

352

 

352

 

352

 

n/a

 

n/a

 

Conversion Ratio

 

0.5000

 

0.5000

 

0.5000

 

n/a

 

n/a

 

Common Shares Issued Assuming Conversion

 

176

 

176

 

176

 

n/a

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonconvertible Preferred Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Redeemable Series B Shares Outstanding (2)

 

—

 

—

 

—

 

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

 

2,000

 

2,000

 

2,000

 

2,000

 

2,000

 

Total Nonconvertible Preferred Equity

 

6,775

 

6,775

 

6,775

 

8,025

 

8,025

 

Total Convertible Preferred Equity

 

352

 

352

 

352

 

n/a

 

n/a

 

Total Preferred Equity

 

7,127

 

7,127

 

7,127

 

8,025

 

8,025

 

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

 

$

178,175

 

$

200,625

 

$

200,625

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares:

 

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding

 

36,555

 

36,296

 

33,797

 

32,743

 

29,814

 

Preferred Shares Outstanding Assuming Conversion

 

—

 

—

 

—

 

—

 

539

 

Restricted shares

 

—

 

238

 

—

 

—

 

—

 

Dilutive options

 

1,537

 

1,638

 

1,655

 

1,639

 

1,749

 

Common Units

 

8,544

 

8,588

 

8,690

 

8,765

 

8,863

 

Denominator for funds from operations per share - diluted

 

46,636

 

46,760

 

44,142

 

43,147

 

40,965

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization

 

 

 

 

 

 

 

 

 

 

 

Recorded Book Value of Preferred Shares

 

$

178,175

 

$

178,175

 

$

178,175

 

$

200,625

 

$

200,625

 

Market Value of Common Shares/Units

 

1,207,144

 

1,332,079

 

1,159,792

 

1,061,244

 

995,064

 

Total Equity Market Capitalization

 

$

1,385,319

 

$

1,510,254

 

$

1,337,967

 

$

1,261,869

 

$

1,195,689

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

$

1,091,688

 

$

1,022,688

 

$

947,332

 

$

820,344

 

$

829,755

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

$

2,477,007

 

$

2,532,942

 

$

2,285,299

 

$

2,082,213

 

$

2,025,444

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Total Market Capitalization

 

44.1

%

40.4

%

41.5

%

39.4

%

41.0

%

Debt to Total Assets

 

60.7

%

59.0

%

57.4

%

55.0

%

57.9

%

Debt to Undepreciated Book Value of Real Estate Assets

 

59.5

%

58.3

%

70.6

%

79.0

%

57.1

%

 

(1)          On September 23, 2004, we issued 352,000 Series I convertible preferred units at a value of $25.00 per unit.

(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.

 

9


 

Quarterly Debt Analysis

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Debt Outstanding

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans

 

$

773,315

 

$

792,125

 

$

1,036,955

 

$

980,936

 

$

637,387

 

Construction Loans

 

48,773

 

26,963

 

31,977

 

23,408

 

18,368

 

Unsecured Revolving Credit Facility

 

269,600

 

203,600

 

121,600

 

184,000

 

174,000

 

 

 

$

1,091,688

 

$

1,022,688

 

$

1,190,532

 

$

1,188,344

 

$

829,755

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Outstanding Balance

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans

 

$

778,021

 

$

792,876

 

$

644,324

 

$

635,134

 

$

687,012

 

Construction Loans

 

41,451

 

31,147

 

23,843

 

20,873

 

8,271

 

Revolving Credit Facility

 

—

 

—

 

—

 

—

 

14,429

 

Secured Revolving Credit Facility

 

—

 

—

 

—

 

—

 

22,609

 

Unsecured Revolving Credit Facility

 

226,307

 

155,422

 

202,573

 

175,494

 

34,681

 

 

 

$

1,045,779

 

$

979,445

 

$

870,740

 

$

831,501

 

$

767,002

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Structure

 

 

 

 

 

 

 

 

 

 

 

Fixed

 

$

728,232

 

$

738,648

 

$

725,696

 

$

537,088

 

$

563,624

 

Variable

 

363,456

 

234,040

 

171,636

 

233,256

 

216,131

 

Variable Subject to Interest Rate Protection(1) (2)

 

—

 

50,000

 

50,000

 

50,000

 

50,000

 

 

 

$

1,091,688

 

$

1,022,688

 

$

947,332

 

$

820,344

 

$

829,755

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Fixed Rate Loans (3)

 

66.71

%

77.12

%

81.88

%

71.57

%

73.95

%

% of Variable Rate Loans (2)

 

33.29

%

22.88

%

18.12

%

28.43

%

26.05

%

 

 

100.00

%

100.00

%

100.00

%

100.00

%

100.00

%

 

 

 

 

 

 

 

 

 

 

 

 

Average Interest Rates

 

 

 

 

 

 

 

 

 

 

 

Mortgage & Construction Loans

 

6.25

%

6.10

%

6.24

%

6.23

%

5.97

%

Revolving Credit Facility

 

n/a

 

n/a

 

n/a

 

n/a

 

3.01

%

Secured Revolving Credit Facility

 

n/a

 

n/a

 

n/a

 

n/a

 

5.54

%

Unsecured Revolving Credit Facility

 

4.06

%

3.48

%

3.04

%

2.92

%

3.19

%

Total Weighted Average

 

5.75

%

5.85

%

5.63

%

5.53

%

5.78

%

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios (excluding capitalized interest) -- All coverage computations include the effect of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Interest Coverage - Combined NOI

 

3.12

x

3.28

x

3.40

x

3.73

x

3.31

x

Interest Coverage - EBITDA

 

2.95

x

3.04

x

3.20

x

3.52

x

3.13

x

Debt Service Coverage - Combined NOI

 

2.01

x

2.21

x

2.22

x

2.49

x

2.01

x

Debt Service Coverage - EBITDA

 

1.90

x

2.05

x

2.09

x

2.35

x

1.90

x

Fixed Charge Coverage - Combined NOI

 

2.43

x

2.52

x

2.52

x

2.63

x

2.31

x

Fixed Charge Coverage - EBITDA

 

2.29

x

2.33

x

2.37

x

2.48

x

2.18

x

 

(1)          We had a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 2.308% which expired January 3, 2005.

(2)          On April 7, 2005, we executed into a $73.4 million notional amount forward swap at a fixed rate of 5.0244%, which commences in July 2005 and expires in July 2015.  Assuming the $73.4 million swap was effective as of March 31, 2005 our percentage of variable rate loans would decrease from 33.29% to 26.57%.

(3)          Includes interest rate protection agreements.

 

10


 

Quarterly Operating Ratios

(Dollars in thousands except per share data and ratios)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 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)

 

14.91

%

16.12

%

18.36

%

16.41

%

18.36

%

 

 

 

 

 

 

 

 

 

 

 

 

Combined NOI as a % of Combined Real Estate Revenues

 

 

 

 

 

 

 

 

 

 

 

(Combined NOI / Combined Real Estate Revenues)

 

68.80

%

70.71

%

69.49

%

72.82

%

69.29

%

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a % of Combined Real Estate Revenues

 

 

 

 

 

 

 

 

 

 

 

(EBITDA / Combined Real Estate Revenues)

 

64.93

%

65.58

%

65.38

%

68.69

%

65.50

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of Net Income

 

 

 

 

 

 

 

 

 

 

 

(G&A / Net Income)

 

36.24

%

36.70

%

27.67

%

28.12

%

25.42

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of Combined Real Estate Revenues

 

 

 

 

 

 

 

 

 

 

 

(G&A / Combined Real Estate Revenues)

 

5.40

%

5.91

%

5.08

%

4.61

%

4.67

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of EBITDA

 

 

 

 

 

 

 

 

 

 

 

(G&A / EBITDA)

 

8.32

%

9.02

%

7.77

%

6.72

%

7.13

%

 

 

 

 

 

 

 

 

 

 

 

 

Quarter end occupancy for operating portfolio

 

92.44

%

93.98

%

93.04

%

92.92

%

91.85

%

Quarter end % leased for operating portfolio

 

93.19

%

94.96

%

94.87

%

94.38

%

93.76

%

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures

 

$4,734

 

$4,695

 

$4,679

 

$4,997

 

$3,023

 

Recurring Capital Expenditures per average square foot

 

$0.40

 

$0.40

 

$0.42

 

$0.47

 

$0.29

 

Recurring Capital Expenditures as a % of NOI (Combined NOI)

 

11.35

%

11.33

%

12.68

%

12.73

%

8.91

%

 

11


 

Quarterly Dividend Analysis

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Common Share Dividends

 

 

 

 

 

 

 

 

 

 

 

Dividends per share/unit

 

$

0.255

 

$

0.255

 

$

0.255

 

$

0.235

 

$

0.235

 

Increase over prior quarter

 

0.0

%

0.0

%

8.5

%

0.0

%

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Payout Ratios

 

 

 

 

 

 

 

 

 

 

 

Payout - Earnings

 

173.4

%

160.4

%

222.4

%

178.7

%

158.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Payout - FFO - Diluted

 

54.5

%

55.4

%

65.9

%

46.4

%

56.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Payout - AFFO - Diluted

 

78.1

%

87.9

%

97.3

%

71.2

%

76.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - FFO - Diluted

 

1.84

x

1.81

x

1.52

x

2.16

x

1.76

x

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - AFFO - Diluted

 

1.28

x

1.14

x

1.03

x

1.40

x

1.32

x

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Yields

 

 

 

 

 

 

 

 

 

 

 

Dividend Yield

 

3.85

%

3.48

%

3.98

%

3.78

%

3.76

%

 

 

 

 

 

 

 

 

 

 

 

 

Series I Preferred Unit Distributions (1)

 

 

 

 

 

 

 

 

 

 

 

Preferred Unit Distributions Per Unit

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

n/a

 

n/a

 

Preferred Unit Distributions Yield

 

7.50

%

7.50

%

7.50

%

n/a

 

n/a

 

Quarter End Recorded Book Value

 

$

25.00

 

$

25.00

 

$

25.00

 

n/a

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

Series B Preferred Share Dividends (2)

 

 

 

 

 

 

 

 

 

 

 

Preferred Share Dividends Per Share

 

n/a

 

n/a

 

n/a

 

$

0.62500

 

$

0.62500

 

Preferred Share Dividend Yield

 

n/a

 

n/a

 

n/a

 

10.00

%

10.00

%

Quarter End Recorded Book Value

 

n/a

 

n/a

 

n/a

 

$

25.00

 

$

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

 

 

 

 

 

 

 

 

 

 

 

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.

 

12


 

Investor Composition and Analyst Coverage

(as of March 31, 2005)

 

SHAREHOLDER CLASSIFICATION

 

Common
Shares

 

Common
Units

 

As if Converted
Preferred
Shares / Units

 

Total

 

Fully Diluted
Ownership
% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Insiders

 

974,906

 

7,582,238

 

—

 

8,557,144

 

18.70

%

Institutional Ownership

 

31,029,636

 

—

 

—

 

31,029,636

 

67.80

%

Other / Retail

 

5,038,844

 

961,970

 

176,000

 

6,176,814

 

13.50

%

 

 

37,043,386

 

8,544,208

 

176,000

 

45,763,594

 

100.00

%

 

RESEARCH COVERAGE

 

March 31,
2005

 

December 31,
2004

 

September 30,
2004

 

June 30,
2004

 

March 31,
2004

 

 

 

 

 

 

 

 

 

 

 

 

 

A. G. Edwards

 

x

 

x

 

x

 

x

 

x

 

Credit Suisse First Boston

 

x

 

x

 

x

 

n/a

 

n/a

 

Ferris, Baker Watts, Incorporated

 

x

 

n/a

 

n/a

 

n/a

 

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

 

x

 

n/a

 

n/a

 

n/a

 

Stifel, Nicolaus & Company, Incorporated

 

x

 

x

 

x

 

n/a

 

n/a

 

Wachovia Securities

 

x

 

x

 

x

 

x

 

x

 

 

Source:  Institutional ownership was obtained from filed Forms 13(f) as of December 31, 2004 per Vickers Stock Research Corporation.

 

13


 

Debt Maturity Schedule -  March 31, 2005

(Dollars in thousands)

 

 

 

Non-Recourse Debt (1)

 

Recourse Debt (1) (4)

 

 

 

 

 

 

 

 

 

 

 

Year of Maturity

 

Annual
Amortization of
Monthly
Payments

 

Due on
Maturity

 

Annual
Amortization
of Monthly
Payments

 

Due on
Maturity

 

Wachovia
Revolver (2)

 

Total Scheduled
Payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

$

10,858

 

$

16,368

 

$

361

 

$

22,581

 

$

—

 

$

50,168

 

2006

 

 

14,758

 

59,975

 

4,164

 

—

 

—

 

78,897

 

2007

 

 

13,492

 

65,698

 

4,199

 

3,937

 

—

 

87,326

 

2008

 

 

11,543

 

142,903

 

549

 

65,215

 

269,600

 

489,810

 

2009

 

 

7,945

 

52,228

 

589

 

6,031

 

—

 

66,793

 

2010

 (3)

 

7,324

 

52,177

 

50

 

12,481

 

—

 

72,032

 

2011

 

 

5,420

 

102,264

 

—

 

—

 

—

 

107,684

 

2012

 

 

3,818

 

36,123

 

—

 

—

 

—

 

39,941

 

2013

 

 

1,183

 

96,376

 

—

 

—

 

—

 

97,559

 

 

 

 

$

76,341

 

$

624,112

 

$

9,912

 

$

110,245

 

$

269,600

 

$

1,090,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premium / (discount) to adjust to fair value of debt

 

1,478

 

 

 

 

 

 

Debt per the Balance Sheet

 

$

1,091,688

 

 

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.

 

(4)          In addition to the recourse debt presented above, another $20.0 million of our debt is recourse, relating to the construction of 4851 Stonecroft Boulevard.

 

14


 

Property Summary by Region - March 31, 2005

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

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

 

 

 

 

 

322 Carina Road (322 NBP)

 

BWI Airport

 

NBP

 

 

 

M

 

 

 

125,847

 

 

 

318 Carina Road (318 NBP)

 

BWI Airport

 

NBP

 

 

 

M

 

 

 

125,681

 

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

 

9,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,458,245

 

677,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

58,454

 

 

 

16

 

901 Elkridge Landing Road

 

BWI Airport

 

APS

 

1984

 

M

 

57,593

 

 

 

17

 

930 International Drive

 

BWI Airport

 

APS

 

1986

 

S

 

57,409

 

 

 

18

 

800 International Drive

 

BWI Airport

 

APS

 

1988

 

S

 

57,379

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,683,194

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

 

3,627,069

 

677,709

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

15


 

Property Summary by Region - March 31, 2005 (continued)

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49

 

Subtotal (continued from prior page)

 

 

 

 

 

 

 

 

 

3,627,069

 

677,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2500 Riva Road

 

Annapolis

 

 

 

2000

 

M

 

155,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

9140 Route 108

 

Howard Co. Perimeter

 

Oakland Ridge

 

1985

 

S

 

150,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7000 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1999

 

M

 

145,806

 

 

 

 

 

6711 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

 

 

M

 

 

 

125,000

 

2

 

6731 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2002

 

M

 

123,760

 

 

 

3

 

6940 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1999

 

M

 

108,909

 

 

 

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

 

 

 

84,926

 

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

 

36,325

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,147,212

 

209,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

5,348,868

 

887,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

55,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Suburban Maryland

 

 

 

 

 

 

 

 

 

562,576

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

10150 York Road

 

North Baltimore Co.

 

 

 

1985

 

M

 

176,689

 

 

 

2

 

9690 Deereco Road

 

North Baltimore Co.

 

 

 

1988

 

M

 

134,175

 

 

 

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

 

 

 

 

 

 

 

 

 

525,406

 

—

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

16


 

Property Summary by Region - March 31, 2005 (continued)

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Road

 

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

 

261,031

 

 

 

2

 

1753 Pinnacle Drive

 

Tysons Corner

 

 

 

1976/2004

 

M

 

181,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

442,668

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Total Northern Virginia

 

 

 

 

 

 

 

 

 

2,244,018

 

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

 

—

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

17


 

Property Summary by Region - March 31, 2005 (continued)

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8611 Military Drive

 

San Antonio

 

 

 

1982 / 1985

 

M

 

—

 

468,994

 

 

 

Total San Antonio, Texas

 

 

 

 

 

 

 

 

 

—

 

468,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

145

 

TOTAL PORTFOLIO

 

 

 

 

 

 

 

 

 

11,981,937

 

1,629,720

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

18


 

Property Occupancy Rates by Region by Quarter

 

 

 

Baltimore /
Washington
Corridor

 

Northern
Virginia

 

Northern /
Central
New Jersey

 

Greater
Philadelphia

 

Greater
Harrisburg

 

Suburban
Maryland

 

Other

 

St. Mary’s &
King George
Counties

 

Total
Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

73

 

13

 

13

 

4

 

16

 

5

 

4

 

17

 

145

 

Rentable Square Feet

 

5,348,868

 

2,244,018

 

904,250

 

960,349

 

671,759

 

562,576

 

525,406

 

764,711

 

11,981,937

 

Percent Occupied

 

94.44

%

93.37

%

74.41

%

100.00

%

86.75

%

81.52

%

97.62

%

97.06

%

92.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

 

19


 

Top Twenty Office Tenants as of March 31, 2005

(Dollars and square feet in thousands)

 

Tenant

 

Number of
Leases

 

Total
Occupied
Square Feet

 

Percentage of
Total
Occupied
Square Feet

 

Total
Annualized
Rental
Revenue (1)

 

Percentage
of Total
Annualized Rental
Revenue

 

Weighted
Average
Remaining
Lease Term (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States of America (3)

 

30

 

1,338,315

 

12.1

%

$

30,495

 

13.3

%

4.8

 

Booz Allen Hamilton, Inc.

 

10

 

471,067

 

4.3

%

11,473

 

5.0

%

7.4

 

Computer Sciences Corporation (4)

 

5

 

485,527

 

4.4

%

11,372

 

5.0

%

5.8

 

General Dynamics Corporation

 

11

 

440,913

 

4.0

%

8,870

 

3.9

%

4.6

 

The Titan Corporation (4)

 

5

 

232,136

 

2.1

%

8,438

 

3.7

%

8.4

 

Northrop Grumman Corporation

 

9

 

396,607

 

3.6

%

8,293

 

3.6

%

3.1

 

Unisys (5)

 

3

 

741,284

 

6.7

%

7,901

 

3.4

%

4.3

 

AT&T Corporation (4)

 

7

 

316,148

 

2.9

%

6,716

 

2.9

%

3.4

 

The Aerospace Corporation

 

3

 

222,366

 

2.0

%

5,724

 

2.5

%

9.7

 

Wachovia Bank

 

3

 

176,470

 

1.6

%

5,324

 

2.3

%

13.7

 

VeriSign, Inc.

 

2

 

162,841

 

1.5

%

4,596

 

2.0

%

9.3

 

The Boeing Company (4)

 

8

 

162,699

 

1.5

%

4,101

 

1.8

%

3.8

 

Ciena Corporation

 

3

 

221,609

 

2.0

%

3,293

 

1.4

%

3.1

 

Commonwealth of Pennsylvania (4)

 

6

 

205,386

 

1.9

%

3,008

 

1.3

%

4.3

 

Magellan Health Services, Inc.

 

2

 

142,199

 

1.3

%

2,778

 

1.2

%

6.3

 

PricewaterhouseCoopers

 

1

 

97,638

 

0.9

%

2,720

 

1.2

%

0.9

 

Johns Hopkins University (4)

 

7

 

106,473

 

1.0

%

2,545

 

1.1

%

2.4

 

Merck & Co., Inc. (Unisys) (5)

 

1

 

219,065

 

2.0

%

2,372

 

1.0

%

4.3

 

Carefirst, Inc. and Subsidiaries (4)

 

3

 

94,223

 

0.9

%

2,277

 

1.0

%

2.8

 

BAE Systems

 

7

 

199,212

 

1.8

%

2,229

 

1.0

%

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Top 20 Office Tenants

 

126

 

6,432,178

 

58.1

%

134,525

 

58.7

%

5.6

 

All remaining tenants

 

495

 

4,644,315

 

41.9

%

94,575

 

41.3

%

4.0

 

Total/Weighted Average

 

621

 

11,076,493

 

100.0

%

$

229,100

 

100.0

%

4.9

 

 

(1)          Total Annualized Rental Revenue is the monthly contractual base rent as of March 31, 2005 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

(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.

 

20


 

Combined Real Estate Revenue by Geographic Region by Quarter

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

29,679

 

$

28,725

 

$

26,924

 

$

25,018

 

$

25,278

 

Northern Virginia

 

14,419

 

14,405

 

10,120

 

13,290

 

10,886

 

Northern/Central New Jersey

 

3,871

 

4,757

 

4,696

 

4,661

 

4,679

 

Greater Philadelphia

 

2,506

 

2,506

 

2,506

 

2,506

 

2,506

 

Greater Harrisburg

 

2,244

 

2,172

 

2,272

 

2,168

 

2,243

 

St. Mary’s and King George Counties

 

2,878

 

1,948

 

1,750

 

1,662

 

124

 

Suburban Maryland

 

2,454

 

2,389

 

2,622

 

2,358

 

1,555

 

Other

 

2,662

 

2,403

 

2,173

 

2,181

 

1,649

 

Subtotal

 

60,713

 

59,305

 

53,063

 

53,844

 

48,920

 

Eliminations / other

 

(86

)

(691

)

33

 

48

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined Real Estate Revenues

 

$

60,627

 

$

58,614

 

$

53,096

 

$

53,892

 

$

48,971

 

 

Combined Net Operating Income by Geographic Region by Quarter

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

20,270

 

$

19,873

 

$

18,266

 

$

17,406

 

$

17,153

 

Northern Virginia

 

9,404

 

9,634

 

6,955

 

10,216

 

7,574

 

Northern/Central New Jersey

 

2,361

 

3,508

 

3,309

 

3,420

 

3,193

 

Greater Philadelphia

 

2,471

 

2,459

 

2,467

 

2,467

 

2,467

 

Greater Harrisburg

 

1,500

 

1,489

 

1,582

 

1,409

 

1,500

 

St. Mary’s and King George Counties

 

2,172

 

1,388

 

1,374

 

1,304

 

91

 

Suburban Maryland

 

1,365

 

1,321

 

1,695

 

1,573

 

957

 

Other

 

1,490

 

1,377

 

1,216

 

1,402

 

946

 

Subtotal

 

41,033

 

41,049

 

36,864

 

39,197

 

33,881

 

Eliminations / other

 

676

 

395

 

35

 

48

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined NOI

 

$

41,709

 

$

41,444

 

$

36,899

 

$

39,245

 

$

33,932

 

 

21


 

Same Office Property Cash Net Operating Income by Quarter

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

18,004

 

$

17,653

 

$

17,171

 

$

16,624

 

$

16,237

 

Northern Virginia

 

6,130

 

5,058

 

5,006

 

8,915

 

7,274

 

Northern/Central New Jersey

 

2,393

 

3,503

 

3,247

 

3,437

 

3,217

 

Greater Philadelphia

 

2,534

 

2,523

 

2,530

 

2,479

 

2,478

 

Greater Harrisburg

 

1,473

 

1,504

 

1,568

 

1,384

 

1,707

 

Suburban Maryland

 

765

 

814

 

997

 

879

 

783

 

Other

 

931

 

951

 

894

 

1,029

 

931

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Office Properties

 

$

32,230

 

$

32,006

 

$

31,413

 

$

34,747

 

$

32,627

 

 

Same Office Property GAAP Net Operating Income by Quarter

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

18,645

 

$

18,327

 

$

18,073

 

$

17,454

 

$

17,167

 

Northern Virginia

 

6,338

 

6,655

 

6,684

 

10,239

 

7,628

 

Northern/Central New Jersey

 

2,368

 

3,515

 

3,309

 

3,423

 

3,193

 

Greater Philadelphia

 

2,472

 

2,461

 

2,468

 

2,467

 

2,467

 

Greater Harrisburg

 

1,500

 

1,489

 

1,582

 

1,409

 

1,500

 

Suburban Maryland

 

802

 

845

 

1,034

 

925

 

801

 

Other

 

1,008

 

1,031

 

894

 

1,024

 

946

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Office Properties

 

$

33,133

 

$

34,323

 

$

34,044

 

$

36,941

 

$

33,702

 

 

(1)          Same office properties include buildings owned for a minimum of five reporting quarters.  Amounts reported do not include the effects of eliminations.

 

22


 

Average Occupancy Rates by Region for Same Office Properties  (1)

 

 

 

Baltimore /
Washington
Corridor

 

Northern
Virginia

 

Northern /
Central
New Jersey

 

Greater
Philadelphia

 

Greater
Harrisburg

 

Suburban
Maryland

 

Other

 

Total
Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2005 Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

72

 

9

 

12

 

4

 

16

 

3

 

3

 

119

 

Rentable Square Feet

 

5,191,942

 

1,599,130

 

746,856

 

960,349

 

671,759

 

377,680

 

348,691

 

9,896,407

 

Percent Occupied

 

94.27

%

93.81

%

79.06

%

100.00

%

86.52

%

81.54

%

96.82

%

92.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter 2004 Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

72

 

9

 

12

 

4

 

16

 

3

 

3

 

119

 

Rentable Square Feet

 

5,191,006

 

1,599,130

 

746,856

 

960,349

 

672,301

 

377,523

 

348,638

 

9,895,803

 

Percent Occupied

 

94.82

%

95.52

%

92.68

%

100.00

%

84.01

%

80.49

%

93.47

%

93.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2004 Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

72

 

9

 

12

 

4

 

16

 

3

 

3

 

119

 

Rentable Square Feet

 

5,190,524

 

1,599,130

 

746,856

 

960,349

 

672,367

 

377,082

 

348,656

 

9,894,964

 

Percent Occupied

 

94.29

%

95.22

%

93.13

%

100.00

%

83.40

%

82.82

%

85.60

%

93.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2004 Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

72

 

9

 

12

 

4

 

16

 

3

 

3

 

119

 

Rentable Square Feet

 

5,190,429

 

1,599,132

 

746,856

 

960,349

 

672,264

 

377,077

 

339,050

 

9,885,157

 

Percent Occupied

 

92.67

%

94.72

%

90.59

%

100.00

%

86.19

%

79.11

%

92.09

%

92.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2004 Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

72

 

9

 

12

 

4

 

16

 

3

 

3

 

119

 

Rentable Square Feet

 

5,187,921

 

1,599,137

 

746,815

 

960,349

 

672,264

 

377,074

 

335,985

 

9,879,545

 

Percent Occupied

 

91.15

%

94.30

%

90.43

%

100.00

%

86.64

%

78.58

%

91.29

%

91.68

%

 

(1)          Same office properties include buildings owned for a minimum of five reporting quarters.

 

23


 

Office Lease Expiration Analysis by Year

 

Year of
Lease
Expiration (1)

 

Number
of Leases
Expiring

 

Square
Footage
of Leases
Expiring

 

Percentage of
Total Occupied
Square Feet

 

Total Annualized
Rental
Revenue of
Expiring
Leases (2)

 

Percentage
of Total
Annualized Rental
Revenue
Expiring

 

Total
Annual. Rental
Revenue of
Expiring Leases
per Occupied
Square Foot

 

 

 

 

 

 

 

 

 

(000s)

 

 

 

 

 

April - June

 

26

 

208,439

 

1.9

%

$

4,464

 

1.9

%

$

21.42

 

July - September

 

21

 

189,212

 

1.7

%

4,052

 

1.8

%

21.41

 

October - December

 

24

 

156,462

 

1.4

%

3,555

 

1.6

%

22.72

 

Total 2005

 

71

 

554,113

 

5.0

%

12,071

 

5.3

%

21.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January - March

 

22

 

287,645

 

2.6

%

6,709

 

2.9

%

23.32

 

April - June

 

23

 

190,338

 

1.7

%

3,910

 

1.7

%

20.54

 

July - September

 

16

 

229,627

 

2.1

%

3,481

 

1.5

%

15.16

 

October - December

 

26

 

298,475

 

2.7

%

6,741

 

2.9

%

22.58

 

Total 2006

 

87

 

1,006,085

 

9.1

%

20,841

 

9.1

%

20.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2007

 

120

 

1,652,228

 

14.9

%

32,971

 

14.4

%

19.96

 

2008

 

89

 

1,249,346

 

11.3

%

26,651

 

11.6

%

21.33

 

2009

 

113

 

2,371,070

 

21.4

%

38,915

 

17.0

%

16.41

 

2010

 

58

 

1,282,584

 

11.6

%

28,900

 

12.6

%

22.53

 

2011

 

17

 

493,033

 

4.5

%

8,572

 

3.7

%

17.39

 

2012

 

13

 

558,048

 

5.0

%

12,022

 

5.2

%

21.54

 

2013

 

6

 

386,290

 

3.5

%

11,226

 

4.9

%

29.06

 

2014

 

14

 

688,976

 

6.2

%

19,708

 

8.6

%

28.60

 

2015

 

5

 

316,875

 

2.9

%

7,769

 

3.4

%

24.52

 

2016

 

—

 

—

 

0.0

%

—

 

0.0

%

0.00

 

2017

 

—

 

—

 

0.0

%

—

 

0.0

%

0.00

 

2018

 

3

 

328,944

 

3.0

%

7,204

 

3.1

%

21.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (3)

 

25

 

188,901

 

1.7

%

2,250

 

1.0

%

11.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Average

 

621

 

11,076,493

 

100.0

%

$

229,100

 

100.0

%

$

20.68

 

 

NOTE:  As of  March 31, 2005, 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 March 31, 2005 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

 

(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.

 

24


 

Quarterly Office Renewal Analysis as of March 31, 2005

 

 

 

Baltimore/
Washington
Corridor

 

Northern
Virginia

 

Northern/
Central New
Jersey

 

Greater
Harrisburg

 

Suburban
Maryland

 

St. Mary’s &
King George
Counties

 

Other

 

Total
Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended March 31, 2005:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiring Square Feet

 

391,209

 

—

 

4,390

 

26,038

 

10,976

 

7,810

 

9,502

 

449,925

 

Vacated Square Feet

 

75,904

 

—

 

—

 

4,943

 

—

 

2,030

 

5,749

 

88,626

 

Renewed Square Feet

 

315,305

 

—

 

4,390

 

21,095

 

10,976

 

5,780

 

3,753

 

361,299

 

Retention Rate (% based upon square feet)

 

80.60

%

0.00

%

100.00

%

81.02

%

100.00

%

74.01

%

39.50

%

80.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed Space Only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

1.57

 

$

—

 

$

3.09

 

$

0.89

 

$

2.60

 

$

16.80

 

$

—

 

$

1.80

 

Weighted Average Lease Term in years

 

4.0

 

9.1

 

2.6

 

3.9

 

1.0

 

3.8

 

2.0

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

11.17

%

0.00

%

3.09

%

-13.90

%

6.53

%

4.34

%

3.05

%

8.58

%

Change in Total Rent - Cash

 

3.80

%

0.00

%

2.40

%

-18.20

%

1.99

%

-2.48

%

3.05

%

1.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed & Retenanted Space:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

4.08

 

$

49.86

 

$

7.09

 

$

3.82

 

$

2.60

 

$

15.44

 

$

—

 

$

5.66

 

Weighted Average Lease Term in years

 

4.1

 

9.1

 

5.1

 

3.9

 

1.0

 

3.8

 

2.5

 

4.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

8.49

%

-5.14

%

-9.14

%

-11.09

%

6.53

%

6.07

%

6.40

%

5.01

%

Change in Total Rent - Cash

 

1.32

%

-14.90

%

-17.90

%

-14.77

%

1.99

%

-0.67

%

3.15

%

-1.93

%

 

Notes:    No renewal or retenanting activity transpired in our Greater Philadelphia region.
Activity is exclusive of owner occupied space and leases with less than a one year term.
Expiring square feet includes early renewals and excludes early terminations.

 

25


 

Year to Date Acquisition Summary as of March 31, 2005 (1)

(Dollars in thousands)

 

 

 

Submarket

 

Acquisition
Date

 

Square Feet

 

Occupancy
Percentage at
Acquisition

 

Contractual
Purchase Price

 

Investment (2)

 

Individual Property:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8611 Military Drive (3) (4)

 

San Antonio

 

3/30/2005

 

468,994

 

100.0

%

$

30,500

 

$

30,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

468,994

 

100.0

%

$

30,500

 

$

30,674

 

 

(1)  Excludes land only acquisitions.

(2)  Initial accounting investment recorded by property as of March 31, 2005.

(3)  This property is under redevelopment as of March 31, 2005.

(4)  Contractual purchase price as of March 31, 2005 excludes $3.0 million purchase of adjacent land parcel.

 

26


 

Development Summary as of March 31, 2005

(Dollars in thousands)

 

Property and Location

 

Submarket

 

Wholly
Owned
or Joint
Venture
(JV)

 

Total
Rentable
Square
Feet

 

Percentage
Leased
or
Committed

 

Anticipated
Total
Cost

 

Cost
to date

 

Outstanding
Loan as of
3/31/2005

 

Anticipated
Date of
Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2691 Technology Drive (191 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Annapolis Junction, Maryland (1)

 

BWI Airport

 

Owned

 

103,683

 

100.00

%

$

19,950

 

$

16,481

 

$

10,895

 

3Q 05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

318 Carina Road (318 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Annapolis Junction, Maryland (2)

 

BWI Airport

 

Owned

 

125,681

 

100.00

%

21,639

 

17,403

 

11,512

 

4Q 05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8621 Robert Fulton Drive (Phase I)

 

Howard Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Columbia, Maryland

 

Perimeter

 

JV

 

84,926

 

76.71

%

12,848

 

4,395

 

—

 

4Q 05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

304 Carina Road (304 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Annapolis Junction, Maryland (3)

 

BWI Airport

 

Owned

 

162,498

 

100.00

%

28,577

 

16,797

 

8,308

 

1Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46591 Expedition Drive (Expedition 6)

 

St. Mary’s

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Lexington Park, Maryland

 

County

 

Owned

 

60,000

 

0.00

%

7,946

 

4,301

 

—

 

1Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

322 Carina Road (322 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,847

 

0.00

%

21,381

 

7,458

 

—

 

2Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15010 Conference Center Drive (WTP II)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Chantilly, Virginia (4)

 

Dulles South

 

Owned

 

213,091

 

0.00

%

38,566

 

19,.630

 

6,031

 

3Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

306 Carina Road (306 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

160,000

 

0.00

%

$

26,746

 

11,605

 

—

 

3Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6711 Columbia Gateway Drive

 

Howard Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

Columbia, Maryland

 

Perimeter

 

Owned

 

125,000

 

0.00

%

$

24,278

 

7,881

 

—

 

4Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Construction

 

 

 

 

 

1,160,726

 

39.37

%

$

201,931

 

$

105,951

 

$

36,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8611 Military Drive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment

 

San Antonio, Texas

 

San Antonio

 

Owned

 

468,994

 

100.00

%

$

7,500

 

$

—

 

$

—

 

4Q 05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Redevelopment

 

 

 

 

 

468,994

 

100.00

%

$

7,500

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

320 Carina Road (320 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,760

 

0.00

%

$

22,370

 

$

3,360

 

$

—

 

4Q 06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

302 Carina Road (302 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

160,000

 

0.00

%

30,947

 

4,319

 

—

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Development

 

 

 

 

 

285,760

 

0.00

%

$

53,317

 

$

7,679

 

$

—

 

 

 

 

(1) Total loan commitment is $16.6 million.

(2) Total loan commitment is $19.3 million.

(3) Total loan commitment is $27.1 million.

(4) Total loan commitment is $32.0 million.

 

27


 

Land Inventory as of March 31, 2005

 

Location

 

Submarket

 

Status

 

Acres

 

Developable
Square
Feet

 

 

 

 

 

 

 

 

 

 

 

Westfields Corporate Center

 

Dulles South

 

owned

 

19

 

246,800

 

Westfields Corporate Center

 

Dulles South

 

owned

 

17

 

377,300

 

Westfields Corporate Center

 

Dulles South

 

owned

 

32

 

674,200

 

Woodland Park

 

Herndon

 

owned

 

5

 

225,000

 

Total Northern Virginia

 

 

 

 

 

73

 

1,523,300

 

 

 

 

 

 

 

 

 

 

 

National Business Park

 

BWI Airport

 

owned

 

34

 

500,000

 

Columbia Gateway Exchange III

 

Howard Co. Perimeter

 

leased

 

4

 

126,200

 

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

 

938,100

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Dahlgren Technology Center

 

King George County

 

owned

 

39

 

120,000

 

Expedition Park

 

St. Mary’s

 

owned

 

6

 

60,000

 

Total St. Mary’s & King George Counties

 

 

 

 

 

45

 

180,000

 

 

 

 

 

 

 

 

 

 

 

Commerce Court

 

Commerce Park

 

option

 

6

 

68,000

 

Total Harrisburg

 

 

 

 

 

6

 

68,000

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

276

 

3,913,400

 

 

This land inventory schedule excludes all properties listed as under construction, redevelopment or under development as detailed on page 27.

 

28


 

Joint Venture Summary as of March 31, 2005

(Dollars in thousands)

 

Consolidated Properties

 

Property and Location

 

Joint Venture
Interest
Held By
COPT

 

Status

 

Square
Feet

 

Acreage

 

Total
Assets

 

Consolidated
Debt as
of 3/31/05

 

Recourse
to COPT

 

Option to
Acquire
Partner’s
Interest

 

4230 Forbes Boulevard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lanham, Maryland

 

50%

 

Operating

 

55,867

 

5 acres

 

$

4,642

 

$

3,674

 

Yes, up to $4.5 million

 

Yes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOR Montpelier 3 LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Laurel, Maryland

 

50%

 

Development

 

19,000

 

2 acres

 

948

 

—

 

N/A

 

Yes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8621 Robert Fulton Drive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia, Maryland

 

80%

 

Construction

 

84,926

 

7 acres

 

4,395

 

—

 

N/A

 

Yes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8601 Robert Fulton Drive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia, Maryland

 

80%

 

Development

 

49,400

 

4 acres

 

1,279

 

—

 

N/A

 

Yes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

$

11,264

 

$

3,674

 

 

 

 

 

 

Unconsolidated Properties

 

Property and Location

 

Joint Venture
Interest
Held By
COPT

 

Status

 

Square
Feet

 

Acreage

 

COPT
Investment

 

Off-Balance
Sheet Debt as
of 3/31/05

 

Recourse
to COPT

 

Option to
Acquire
Partner’s
Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

695 Route 46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wayne, New Jersey

 

20%

 

Operating

 

157,394

 

13 acres

 

$

1,209

 

$

13,989

 

No

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

$

1,209

 

$

13,989

 

 

 

 

 

 

29


 

Reconciliations of Non GAAP Measurements

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Total Assets or Denominator for Debt to Total Assets

 

$

1,798,920

 

$

1,732,026

 

$

1,650,726

 

$

1,490,701

 

$

1,432,010

 

Accumulated depreciation

 

153,127

 

141,716

 

131,018

 

121,630

 

110,155

 

Intangible assets on real estate acquisitions, net

 

64,965

 

67,560

 

67,083

 

53,874

 

55,577

 

Assets other than assets included in investment in real estate

 

(181,644

)

(187,525

)

(163,557

)

(161,591

)

(145,229

)

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for Debt to Undepreciated Book Value of Real Estate Assets

 

$

1,835,368

 

$

1,753,777

 

$

1,685,270

 

$

1,504,614

 

$

1,452,513

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Revenues from Real Estate Operations

 

$

60,627

 

$

58,613

 

$

53,097

 

$

53,892

 

$

48,971

 

Revenues from discontinued operations

 

—

 

—

 

—

 

—

 

—

 

Other income/(expense)

 

—

 

1

 

(1

)

—

 

—

 

Combined Real Estate Revenues

 

$

60,627

 

$

58,614

 

$

53,096

 

$

53,892

 

$

48,971

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Revenues from Real Estate Operations

 

$

60,627

 

$

58,613

 

$

53,097

 

$

53,892

 

$

48,971

 

Property operating

 

(18,918

)

(17,170

)

(16,197

)

(14,647

)

(15,039

)

Revenues from discontinued operations

 

—

 

—

 

—

 

—

 

—

 

Property operating from discontinued operations

 

—

 

—

 

—

 

—

 

—

 

Other revenue

 

—

 

1

 

(1

)

—

 

—

 

Combined Net Operating Income

 

$

41,709

 

$

41,444

 

$

36,899

 

$

39,245

 

$

33,932

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Operating Income for Same Office Properties

 

$

33,133

 

$

34,323

 

$

34,044

 

$

36,941

 

$

33,702

 

Less: Straight line rent adjustments

 

(746

)

(2,085

)

(2,365

)

(1,930

)

(762

)

Less: Amortization of deferred market rental revenue

 

(157

)

(232

)

(266

)

(264

)

(313

)

Cash Net Operating Income for Same Office Properties

 

$

32,230

 

$

32,006

 

$

31,413

 

$

34,747

 

$

32,627

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

14,666

 

$

13,859

 

$

11,802

 

$

15,884

 

$

10,359

 

Depreciation of furniture, fixtures and equipment

 

(161

)

(234

)

(101

)

(99

)

(98

)

Depreciation and amortization from discontinued operations

 

—

 

—

 

(1

)

—

 

—

 

Combined real estate related depreciation and other amortization

 

$

14,505

 

$

13,625

 

$

11,700

 

$

15,785

 

$

10,261

 

 

 

 

 

 

 

 

 

 

 

 

 

Total tenant improvements and incentives on operating properties

 

$

13,163

 

$

3,455

 

$

3,924

 

$

4,420

 

$

2,268

 

Total capital improvements on operating properties

 

2,105

 

4,121

 

3,669

 

1,723

 

836

 

Total leasing costs for operating properties

 

668

 

2,761

 

2,598

 

5,793

 

566

 

Less: Nonrecurring tenant improvements and incentives on operating properties

 

(9,551

)

(772

)

(1,454

)

(1,655

)

(112

)

Less: Nonrecurring capital improvements on operating properties

 

(1,630

)

(2,834

)

(2,920

)

(841

)

(505

)

Less: Nonrecurring leasing costs for operating properties

 

(21

)

(2,036

)

(1,138

)

(4,443

)

(30

)

Recurring capital expenditures

 

$

4,734

 

$

4,695

 

$

4,679

 

$

4,997

 

$

3,023

 

 

30


 

Reconciliations of Non GAAP Measurements (continued)

(Dollars in thousands)

 

 

 

2005

 

2004

 

 

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Interest expense from continuing operations

 

$

13,358

 

$

12,648

 

$

10,839

 

$

10,514

 

$

10,262

 

Interest expense from discontinued operations

 

—

 

—

 

—

 

—

 

—

 

Combined interest expense or denominator for interest coverage

 

$

13,358

 

$

12,648

 

$

10,839

 

$

10,514

 

$

10,262

 

Scheduled principal amortization

 

7,394

 

6,093

 

5,775

 

5,271

 

6,618

 

Denominator for Debt Service Coverage

 

$

20,752

 

$

18,741

 

$

16,614

 

$

15,785

 

$

16,880

 

Scheduled principal amortization

 

(7,394

)

(6,093

)

(5,775

)

(5,271

)

(6,618

)

Preferred dividends - redeemable non-convertible

 

3,654

 

3,654

 

3,784

 

4,435

 

4,435

 

Preferred dividends - redeemable convertible

 

—

 

—

 

—

 

—

 

21

 

Preferred distributions

 

165

 

165

 

14

 

—

 

—

 

Denominator for Fixed Charge Coverage

 

$

17,177

 

$

16,467

 

$

14,637

 

$

14,949

 

$

14,718

 

 

 

 

 

 

 

 

 

 

 

 

 

Common dividends for Earnings Payout Ratio

 

$

9,339

 

$

9,288

 

$

9,235

 

$

7,878

 

$

7,178

 

Common distributions

 

2,179

 

2,179

 

2,202

 

2,057

 

2,074

 

Restricted shares

 

—

 

98

 

—

 

—

 

—

 

Convertible preferred dividends

 

—

 

—

 

—

 

—

 

21

 

Dividends and distributions for FFO and AFFO Payout Ratio

 

$

11,518

 

$

11,565

 

$

11,437

 

$

9,935

 

$

9,273

 

 

31