☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 98-1141883 | |
(State or other jurisdiction | (IRS Employer | |
of incorporation or organization) | Identification No.) | |
Title of Each Class | Trading Symbol(s) | Name of each Exchange on Which Registered | ||
Common Stock, $0.01 par value 6.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share | “CIO” “CIO.PrA” | New York Stock Exchange New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging Growth Company | ☐ |
Page | ||||||||||
3 | ||||||||||
ITEM 1. | ||||||||||
ITEM 1A. | ||||||||||
ITEM 1B. | ||||||||||
ITEM 2. | 40 | |||||||||
ITEM 3. | ||||||||||
ITEM 4. | MINE SAFETY DISCLOSURES | 42 | ||||||||
43 | ||||||||||
ITEM 6. | [RESERVED] | 45 | ||||||||
ITEM 7. | ||||||||||
ITEM 7A. | ||||||||||
ITEM 8. | ||||||||||
ITEM 9. | ||||||||||
ITEM 9A. | ||||||||||
ITEM 9B. | ||||||||||
ITEM 9C. | ||||||||||
ITEM 10. | ||||||||||
ITEM 11. | ||||||||||
ITEM 12. | ||||||||||
ITEM 13. | ||||||||||
ITEM 14. | ||||||||||
ITEM 15. | ||||||||||
ITEM 16. |
ITEM 1. BUSINESS |
ITEM 1A. RISK FACTORS |
pandemic ends, or the Company’s ability to maintain or increase rents, which may have an adverse effect on our financial condition, results of operations and cash flow than if we owned a more diversified real estate portfolio; |
ITEM 1B. UNRESOLVED STAFF COMMENTS |
ITEM 2. PROPERTIES |
Metropolitan Area | Property | Economic Interest | NRA (000s Square Feet) | In Place Occupancy | Annualized Base Rent per Square Foot | Annualized Gross Rent per Square Foot (1) | Annualized Base Rent (2) ($000s) | |||||||||||||||||||
Phoenix, AZ (19.6% of NRA) | Pima Center | 100.0 | % | 272 | 68.0 | % | $ | 28.21 | $ | 28.21 | $ | 5,214 | ||||||||||||||
SanTan | 100.0 | % | 267 | 97.5 | % | $ | 29.73 | $ | 29.73 | $ | 7,727 | |||||||||||||||
5090 N. 40 th St | 100.0 | % | 176 | 91.1 | % | $ | 30.76 | $ | 30.76 | $ | 4,921 | |||||||||||||||
Camelback Square | 100.0 | % | 172 | 81.3 | % | $ | 32.68 | $ | 32.68 | $ | 4,562 | |||||||||||||||
The Quad | 100.0 | % | 163 | 97.4 | % | $ | 30.65 | $ | 30.97 | $ | 4,866 | |||||||||||||||
Papago Tech | 100.0 | % | 163 | 96.3 | % | $ | 23.55 | $ | 23.55 | $ | 3,690 | |||||||||||||||
Tampa, FL (17.0%) | Park Tower | 94.8 | % | 472 | 74.5 | % | $ | 26.95 | $ | 26.95 | $ | 9,487 | ||||||||||||||
City Center | 95.0 | % | 243 | 83.6 | % | $ | 27.61 | $ | 27.61 | $ | 5,605 | |||||||||||||||
Intellicenter | 100.0 | % | 204 | 100.0 | % | $ | 25.09 | $ | 25.09 | $ | 5,105 | |||||||||||||||
Carillon Point | 100.0 | % | 124 | 88.0 | % | $ | 29.33 | $ | 29.33 | $ | 3,207 | |||||||||||||||
Denver, CO (13.1%) | Denver Tech | 100.0 | % | 381 | 93.2 | % | $ | 23.58 | $ | 27.69 | $ | 8,280 | ||||||||||||||
Circle Point | 100.0 | % | 272 | 74.6 | % | $ | 19.22 | $ | 33.08 | $ | 3,899 | |||||||||||||||
Superior Pointe | 100.0 | % | 152 | 86.9 | % | $ | 18.29 | $ | 31.29 | $ | 2,410 | |||||||||||||||
Dallas, TX (12.2%) | 190 Office Center | 100.0 | % | 303 | 76.1 | % | $ | 26.64 | $ | 26.64 | $ | 6,148 | ||||||||||||||
The Terraces | 100.0 | % | 173 | 95.9 | % | $ | 37.70 | $ | 57.70 | $ | 6,241 | |||||||||||||||
Lake Vista Pointe | 100.0 | % | 163 | 100.0 | % | $ | 17.00 | $ | 26.00 | $ | 2,777 | |||||||||||||||
2525 McKinnon | 100.0 | % | 111 | 93.0 | % | $ | 28.91 | $ | 47.91 | $ | 2,994 | |||||||||||||||
Orlando, FL (11.7%) | Florida Research Park | 96.6 | % | 397 | 91.5 | % | $ | 23.71 | $ | 27.79 | $ | 8,589 | ||||||||||||||
Central Fairwinds | 97.0 | % | 168 | 90.3 | % | $ | 26.00 | $ | 26.00 | $ | 3,949 | |||||||||||||||
Greenwood Blvd | 100.0 | % | 155 | 100.0 | % | $ | 23.75 | $ | 23.75 | $ | 3,682 | |||||||||||||||
Portland, OR (5.4%) | AmberGlen | 76.0 | % | 203 | 98.4 | % | $ | 22.90 | $ | 25.80 | $ | 4,564 | ||||||||||||||
Cascade Station | 100.0 | % | 128 | 95.5 | % | $ | 28.12 | $ | 30.13 | $ | 3,424 | |||||||||||||||
San Diego, CA (4.6%) | Mission City | 100.0 | % | 281 | 88.1 | % | $ | 37.52 | $ | 37.52 | $ | 9,300 | ||||||||||||||
Seattle, WA (3.3%) | Canyon Park | 100.0 | % | 207 | 100.0 | % | $ | 22.49 | $ | 26.49 | $ | 4,650 | ||||||||||||||
Total / Weighted Average—Excluding Recent Acquisitions in Lease-Up (3) | 5,350 | 88.4 | % | $ | 26.53 | $ | 29.90 | $ | 125,291 | |||||||||||||||||
Raleigh, NC (8.1%) | Bloc 83 | 100.0 | % | 495 | 62.3 | % | $ | 36.13 | $ | 36.89 | $ | 11,133 | ||||||||||||||
Phoenix, AZ (5.0%) | Block 23 | 100.0 | % | 307 | 62.0 | % | $ | 21.12 | $ | 29.79 | $ | 4,022 | ||||||||||||||
Total / Weighted Average—December 31, 2021 (3) | 6,152 | 84.9 | % | $ | 26.93 | $ | 30.34 | $ | 140,446 | |||||||||||||||||
Metropolitan Area | Property | Economic Interest | NRA (000s Square Feet) | In Place Occupancy | Annualized Base Rent per Square Foot | Annualized Gross Rent per Square Foot (1) | Annualized Base Rent (2) ($000s) | |||||||||||||||||||
Phoenix, AZ (25.3% of NRA) | Block 23 | 100.0 | % | 307 | 94.0 | % | $ | 29.66 | $ | 31.92 | $ | 8,563 | ||||||||||||||
Pima Center | 100.0 | % | 272 | 43.7 | % | $ | 27.99 | $ | 27.99 | $ | 3,324 | |||||||||||||||
SanTan | 100.0 | % | 267 | 46.3 | % | $ | 31.74 | $ | 31.74 | $ | 3,916 | |||||||||||||||
5090 N. 40 th St | 100.0 | % | 176 | 96.1 | % | $ | 31.98 | $ | 31.98 | $ | 5,396 | |||||||||||||||
Camelback Square | 100.0 | % | 172 | 83.5 | % | $ | 34.32 | $ | 34.32 | $ | 4,934 | |||||||||||||||
The Quad | 100.0 | % | 163 | 100.0 | % | $ | 32.11 | $ | 32.42 | $ | 5,234 | |||||||||||||||
Papago Tech | 100.0 | % | 163 | 86.1 | % | $ | 24.01 | $ | 24.01 | $ | 3,364 | |||||||||||||||
Tampa, FL (17.5%) | Park Tower | 94.8 | % | 478 | 88.7 | % | $ | 27.56 | $ | 27.56 | $ | 11,686 | ||||||||||||||
City Center | 95.0 | % | 244 | 85.5 | % | $ | 28.21 | $ | 28.21 | $ | 5,883 | |||||||||||||||
Intellicenter | 100.0 | % | 204 | 100.0 | % | $ | 25.64 | $ | 25.64 | $ | 5,219 | |||||||||||||||
Carillon Point | 100.0 | % | 124 | 100.0 | % | $ | 30.11 | $ | 30.11 | $ | 3,739 | |||||||||||||||
Denver, CO (13.4%) | Denver Tech | 100.0 | % | 381 | 93.2 | % | $ | 24.15 | $ | 28.60 | $ | 8,480 | ||||||||||||||
Circle Point | 100.0 | % | 272 | 84.5 | % | $ | 19.73 | $ | 34.59 | $ | 4,531 | |||||||||||||||
Superior Pointe | 100.0 | % | 152 | 98.3 | % | $ | 18.92 | $ | 31.92 | $ | 2,833 | |||||||||||||||
Orlando, FL (12.0%) | Florida Research Park | 96.5 | % | 393 | 87.9 | % | $ | 25.61 | $ | 27.37 | $ | 8,758 | ||||||||||||||
Central Fairwinds | 97.0 | % | 168 | 92.5 | % | $ | 27.77 | $ | 27.77 | $ | 4,319 | |||||||||||||||
Greenwood Blvd | 100.0 | % | 155 | 100.0 | % | $ | 24.25 | $ | 24.25 | $ | 3,760 | |||||||||||||||
Dallas, TX (9.8%) | 190 Office Center | 100.0 | % | 303 | 77.5 | % | $ | 26.57 | $ | 26.57 | $ | 6,241 | ||||||||||||||
The Terraces | 100.0 | % | 173 | 99.0 | % | $ | 38.62 | $ | 58.62 | $ | 6,600 | |||||||||||||||
2525 McKinnon | 100.0 | % | 111 | 97.8 | % | $ | 30.07 | $ | 51.07 | $ | 3,276 | |||||||||||||||
Raleigh, NC (8.3%) | Bloc 83 | 100.0 | % | 495 | 83.5 | % | $ | 37.40 | $ | 37.63 | $ | 15,458 | ||||||||||||||
Portland, OR (5.5%) | AmberGlen | 76.0 | % | 203 | 98.4 | % | $ | 23.79 | $ | 27.06 | $ | 4,743 | ||||||||||||||
Cascade Station | 100.0 | % | 128 | 100.0 | % | $ | 29.13 | $ | 31.05 | $ | 3,731 | |||||||||||||||
San Diego, CA (4.7%) | Mission City | 100.0 | % | 281 | 73.7 | % | $ | 39.03 | $ | 39.03 | $ | 8,097 | ||||||||||||||
Seattle, WA (3.5%) | Canyon Park | 100.0 | % | 207 | 100.0 | % | $ | 23.17 | $ | 29.17 | $ | 4,791 | ||||||||||||||
Total / Weighted Average—December 31, 2022 (3) | 5,992 | 86.2 | % | $ | 28.46 | $ | 31.59 | $ | 146,876 | |||||||||||||||||
(1) | Annualized gross rent per square foot includes adjustment for estimated expense reimbursements of triple net leases for the year ended December 31, |
(2) | Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended December 31, |
(3) | Averages weighted based on the property’s NRA, adjusted for occupancy. |
(1) | Percentage represents the NRA of the leases divided by the total NRA of the portfolio, as of December 31, |
(2) |
Year of Lease Expiration | Number of Leases Expiring | NRA of Expiring Leases (000s) | Percentage of NRA | Annualized Base Rent (1 ) (000s) | Percentage of Total Properties Rent | Annualized Base Rent per Leased Square Foot Expiring (2) | Annualized Base Rent (including Rent Abatement at Dec 31, 2021) | Annualized Base Rent per Leased Square Foot Expiring (Including Rent Abatement at Dec 31, 2021) | Number of Leases Expiring | NRA of Expiring Leases (000s) | Percentage of NRA | Annualized Base Rent (1 ) (000s) | Percentage of Total Properties Rent | Annualized Base Rent per Leased Square Foot Expiring (2) | Annualized Base Rent (including Rent Abatement at Dec 31, 2022) | Annualized Base Rent per Leased Square Foot Expiring (Including Rent Abatement at Dec 31, 2022) | ||||||||||||||||||||||||||||||||||||||||||||||||
Vacant | — | 556 | 9.1 | % | — | — | — | — | — | — | 657 | 11.0 | % | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Contracted | — | 369 | 6.0 | % | — | — | — | — | — | — | 167 | 2.8 | % | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 56 | 702 | 11.4 | % | 20,561 | 14.6 | % | 29.29 | 20,561 | 29.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 67 | 828 | 13.5 | % | 22,368 | 15.9 | % | 27.01 | 22,233 | 26.85 | 65 | 789 | 13.2 | % | 21,856 | 14.9 | % | 27.70 | 21,294 | 26.99 | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 61 | 477 | 7.8 | % | 12,835 | 9.1 | % | 26.91 | 12,749 | 26.73 | 65 | 491 | 8.2 | % | 13,670 | 9.3 | % | 27.84 | 13,670 | 27.84 | ||||||||||||||||||||||||||||||||||||||||||||
2025 | 39 | 450 | 7.3 | % | 11,789 | 8.4 | % | 26.20 | 11,590 | 25.76 | 50 | 445 | 7.4 | % | 12,464 | 8.5 | % | 28.01 | 12,464 | 28.01 | ||||||||||||||||||||||||||||||||||||||||||||
2026 | 27 | 429 | 7.0 | % | 10,946 | 7.8 | % | 25.52 | 10,777 | 25.12 | 34 | 500 | 8.3 | % | 13,257 | 9.0 | % | 26.51 | 12,839 | 25.68 | ||||||||||||||||||||||||||||||||||||||||||||
2027 | 27 | 647 | 10.5 | % | 16,486 | 11.7 | % | 25.48 | 15,400 | 23.80 | 41 | 716 | 11.9 | % | 19,628 | 13.4 | % | 27.41 | 19,628 | 27.41 | ||||||||||||||||||||||||||||||||||||||||||||
2028 | 17 | 339 | 5.5 | % | 8,095 | 5.8 | % | 23.88 | 8,095 | 23.88 | 38 | 527 | 8.8 | % | 13,780 | 9.4 | % | 26.15 | 10,607 | 20.13 | ||||||||||||||||||||||||||||||||||||||||||||
2029 | 14 | 501 | 8.1 | % | 14,376 | 10.2 | % | 28.69 | 14,376 | 28.69 | 20 | 549 | 9.2 | % | 16,121 | 11.0 | % | 29.36 | 15,003 | 27.33 | ||||||||||||||||||||||||||||||||||||||||||||
2030 | 8 | 91 | 1.5 | % | 2,959 | 2.1 | % | 32.52 | 2,777 | 30.52 | 14 | 295 | 4.9 | % | 10,158 | 6.9 | % | 34.43 | 5,030 | 17.05 | ||||||||||||||||||||||||||||||||||||||||||||
2031 & Thereafter | 10 | 763 | 12.3 | % | 20,031 | 14.4 | % | 26.25 | 17,926 | 23.49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2031 | 4 | 164 | 2.7 | % | 4,015 | 2.7 | % | 24.48 | 4,015 | 24.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2032 & Thereafter | 21 | 692 | 11.6 | % | 21,927 | 14.9 | % | 31.69 | 17,827 | 25.76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total / Weighted Average | 326 | 6,152 | 100.0 | % | $ | 140,446 | 100.0 | % | $ | 26.93 | $ | 136,484 | $ | 26.11 | 352 | 5,992 | 100.0 | % | $ | 146,876 | 100.0 | % | $ | 28.46 | $ | 132,377 | $ | 25.61 | ||||||||||||||||||||||||||||||||||||
(1) | Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month of December 31, |
(2) | Annualized rent per leased square foot expiring reflects rental payments for the month of December 31, |
ITEM 3. LEGAL PROCEEDINGS |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Issuer Purchases of Equity Securities | ||||||||||||||||
Period | Total Number of Shares of Common Stock Purchased | Average Price Paid per Share of Common Stock Repurchased | Total Number of Shares of Common Stock Purchased as Part of Share Repurchase Plans | Approximate Dollar Value of Shares of Common Stock that May Yet Be Purchased Under the Share Repurchase Plans (1) (thousands) | ||||||||||||
October 1 – 31, 2021 | — | $ | — | — | $ | 50,000 | ||||||||||
November 1 – 30, 2021 | — | — | — | 50,000 | ||||||||||||
December 1 – 31, 2021 | — | — | — | 50,000 | ||||||||||||
Total | — | $ | — | — | $ | 50,000 | ||||||||||
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Property | December 31, 2021 | Interest Rate as of December 31, 2021 (1) | Maturity | |||||||||
Unsecured Credit Facility (3)(4) | $ | 142,000 | LIBOR +1.30% (2) | November 2025 | ||||||||
Term Loan (3) | 50,000 | LIBOR +1.25% (2) | September 2024 | |||||||||
Mission City | 47,000 | 3.78% | November 2027 | |||||||||
Canyon Park (5) | 40,381 | 4.30% | March 2027 | |||||||||
Circle Point | 39,650 | 4.49% | September 2028 | |||||||||
190 Office Center | 39,581 | 4.79% | October 2025 | |||||||||
SanTan | 32,807 | 4.56% | March 2027 | |||||||||
Intellicenter | 31,883 | 4.65% | October 2025 | |||||||||
The Quad | 30,600 | 4.20% | September 2028 | |||||||||
FRP Collection | 27,535 | 3.10% | September 2023 | |||||||||
2525 McKinnon | 27,000 | 4.24% | April 2027 | |||||||||
Greenwood Blvd | 21,920 | 3.15% | December 2025 | |||||||||
Cascade Station | 21,581 | 4.55% | May 2024 | |||||||||
5090 N. 40 th St | 21,233 | 3.92% | January 2027 | |||||||||
AmberGlen | 20,000 | 3.69% | May 2027 | |||||||||
Lake Vista Pointe | 17,018 | 4.28% | August 2024 | |||||||||
Central Fairwinds | 16,707 | 3.15% | June 2024 | |||||||||
FRP Ingenuity Drive | 16,457 | 4.44% | December 2024 | |||||||||
Carillon Point | 15,185 | 3.10% | October 2023 | |||||||||
Total Principal | 658,538 | |||||||||||
Deferred financing costs, net | (5,223 | ) | ||||||||||
Unamortized fair value adjustments | 333 | |||||||||||
Total | $ | 653,648 | ||||||||||
Property | December 31, 2022 | Interest Rate as of December 31, 2022 (1) | Maturity | |||||||||
Unsecured Credit Facility (3)(4) | $ | 200,500 | LIBOR +1.30% (2) | November 2025 | ||||||||
Term Loan (3) | 50,000 | LIBOR +1.25% (2) | September 2024 | |||||||||
Mission City | 46,859 | 3.78% | November 2027 | |||||||||
Canyon Park (5) | 39,673 | 4.30% | March 2027 | |||||||||
Circle Point | 39,440 | 4.49% | September 2028 | |||||||||
190 Office Center (6) | 38,894 | 4.79% | October 2025 | |||||||||
SanTan | 32,140 | 4.56% | March 2027 | |||||||||
Intellicenter | 31,297 | 4.65% | October 2025 | |||||||||
The Quad | 30,600 | 4.20% | September 2028 | |||||||||
2525 McKinnon | 27,000 | 4.24% | April 2027 | |||||||||
FRP Collection | 26,784 | 3.10% | September 2023 | |||||||||
Greenwood Blvd | 21,396 | 3.15% | December 2025 | |||||||||
Cascade Station | 21,192 | 4.55% | May 2024 | |||||||||
5090 N. 40 th St | 20,810 | 3.92% | January 2027 | |||||||||
AmberGlen | 20,000 | 3.69% | May 2027 | |||||||||
Central Fairwinds | 16,273 | 3.15% | June 2024 | |||||||||
FRP Ingenuity Drive (7) | 16,165 | 4.44% | December 2024 | |||||||||
Carillon Point | 14,773 | 3.10% | October 2023 | |||||||||
Total Principal | 693,796 | |||||||||||
Deferred financing costs, net | (3,887 | ) | ||||||||||
Unamortized fair value adjustments | 190 | |||||||||||
Total | $ | 690,099 | ||||||||||
(1) | All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility |
(2) | As of December 31, one-month LIBOR rate was |
(3) | In September 2019, the Company entered into a five-year $50 million Term Loan 30-day LIBOR payments. |
(4) | In March 2018, the Company entered into theCredit Agreementfor the Unsecured Credit Facility that provides for commitments of up to $250 million, which includes an accordion feature that allows the Company to borrow up to $500 million, subject to customary terms and conditions. On November 16, 2021, the Company entered into anAmended and Restated Credit Agreementfor the Unsecured Credit Facility that provides for commitments of up to $300 million. Combined with the Company’s existing |
(5) | The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. |
(6) | In Q4 2022, a ‘cash-sweep’ began for the 190 Office Center loan due to the non-renewal of the minimum square footage of a major tenant in the building. A ‘cash-sweep’ results in excess funds being held in escrow to fund future leasing costs related to the major tenant’s space. As of December 31, 2022, total restricted cash for the property was $3.8 million. |
(7) | As of September 30, 2022, the Debt Service Coverage Ratio (“DSCR”) covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep’ event that began in Q4 2022 where excess funds have been held in escrow to fund future tenant improvement expenses of current vacant space. As of December 31, 2022, total restricted cash for the property was $2.6 million. |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | 2022 | 2023-2024 | 2025-2026 | More than 5 years | |||||||||||||||
Principal payments on mortgage loans | $ | 658,538 | $ | 6,427 | $ | 173,275 | $ | 238,533 | $ | 240,303 | ||||||||||
Interest payments (1) | 96,544 | 22,368 | 40,914 | 25,451 | 7,811 | |||||||||||||||
Tenant-related commitments | 30,100 | 30,100 | — | — | — | |||||||||||||||
Lease obligations | 37,972 | 740 | 1,625 | 1,510 | 34,097 | |||||||||||||||
Total | $ | 823,154 | $ | 59,635 | $ | 215,814 | $ | 265,494 | $ | 282,211 | ||||||||||
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | 2023 | 2024-2025 | 2026-2027 | More than 5 years | |||||||||||||||
Principal payments on mortgage loans | $ | 693,796 | $ | 47,980 | $ | 400,977 | $ | 180,719 | $ | 64,120 | ||||||||||
Interest payments (1) | 100,611 | 30,506 | 52,163 | 15,860 | 2,082 | |||||||||||||||
Tenant-related commitments | 14,795 | 14,795 | — | — | — | |||||||||||||||
Lease obligations | 37,046 | 663 | 1,555 | 1,327 | 33,501 | |||||||||||||||
Total | $ | 846,248 | $ | 93,944 | $ | 454,695 | $ | 197,906 | $ | 99,703 | ||||||||||
(1) | Contracted interest on the floating rate borrowings under our Unsecured Credit Facility was calculated based on the balance and interest rate at December 31, |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. EXECUTIVE COMPENSATION |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
Page | ||||
December 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Real estate properties | ||||||||
Land | $ | 204,801 | $ | 204,289 | ||||
Building and improvement | 1,244,177 | 777,184 | ||||||
Tenant improvement | 119,011 | 104,694 | ||||||
Furniture, fixtures and equipment | 664 | 642 | ||||||
1,568,653 | 1,086,809 | |||||||
Accumulated depreciation | (157,356 | ) | (131,220 | ) | ||||
1,411,297 | 955,589 | |||||||
Cash and cash equivalents | 21,321 | 25,305 | ||||||
Restricted cash | 20,945 | 20,646 | ||||||
Rents receivable, net | 30,415 | 32,968 | ||||||
Deferred leasing costs, net | 20,327 | 16,829 | ||||||
Acquired lease intangible assets, net | 68,925 | 44,143 | ||||||
Other assets | 28,283 | 15,758 | ||||||
Assets held for sale | 0 | 46,054 | ||||||
Total Assets | $ | 1,601,513 | $ | 1,157,292 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Debt | $ | 653,648 | $ | 677,242 | ||||
Accounts payable and accrued liabilities | 27,101 | 25,414 | ||||||
Deferred rent | 11,600 | 7,295 | ||||||
Tenant rent deposits | 6,165 | 4,801 | ||||||
Acquired lease intangible liabilities, net | 10,872 | 6,035 | ||||||
Other liabilities | 21,532 | 18,099 | ||||||
Liabilities related to assets held for sale | 0 | 531 | ||||||
Total Liabilities | 730,918 | 739,417 | ||||||
Commitments and Contingencies (Note 10) | 0 | 0 | ||||||
Equity: | ||||||||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding as of December 31, 2021 and 2020 | 112,000 | 112,000 | ||||||
Common stock, $0.01 par value, 100,000,000 shares authorized, 43,554,375 and 43,397,117 shares issued and outstanding as of December 31, 2021 and 2020 respectively | 435 | 433 | ||||||
Additional paid-in capital | 482,061 | 479,411 | ||||||
Retained earnings/(accumulated deficit ) | 275,502 | (172,958 | ) | |||||
Accumulated other comprehensive loss | (382 | ) | (1,960 | ) | ||||
Total Stockholders’ Equity | 869,616 | 416,926 | ||||||
Non-controlling interests in properties | 979 | 949 | ||||||
Total Equity | 870,595 | 417,875 | ||||||
Total Liabilities and Equity | $ | 1,601,513 | $ | 1,157,292 | ||||
December 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Real estate properties | ||||||||
Land | $ | 199,537 | $ | 204,801 | ||||
Building and improvement | 1,215,000 | 1,244,177 | ||||||
Tenant improvement | 139,365 | 119,011 | ||||||
Furniture, fixtures and equipment | 689 | 664 | ||||||
1,554,591 | 1,568,653 | |||||||
Accumulated depreciation | (175,720 | ) | (157,356 | ) | ||||
1,378,871 | 1,411,297 | |||||||
Cash and cash equivalents | 28,187 | 21,321 | ||||||
Restricted cash | 16,075 | 20,945 | ||||||
Rents receivable, net | 44,429 | 30,415 | ||||||
Deferred leasing costs, net | 21,989 | 20,327 | ||||||
Acquired lease intangible assets, net | 55,438 | 68,925 | ||||||
Other assets | 29,450 | 28,283 | ||||||
Total Assets | $ | 1,574,439 | $ | 1,601,513 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Debt | $ | 690,099 | $ | 653,648 | ||||
Accounts payable and accrued liabilities | 35,753 | 27,101 | ||||||
Deferred rent | 9,147 | 11,600 | ||||||
Tenant rent deposits | 7,040 | 6,165 | ||||||
Acquired lease intangible liabilities, net | 9,150 | 10,872 | ||||||
Other liabilities | 20,076 | 21,532 | ||||||
Total Liabilities | 771,265 | 730,918 | ||||||
Commitments and Contingencies (Note 10) | ||||||||
Equity: | ||||||||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding as of December 31, 2022 and 2021 | 112,000 | 112,000 | ||||||
Common stock, $0.01 par value, 100,000,000 shares authorized, 39,718,767 and 43,554,375 shares issued and outstanding as of December 31, 2022 and 2021 | 397 | 435 | ||||||
Additional paid-in capital | 436,161 | 482,061 | ||||||
Retained earnings | 251,542 | 275,502 | ||||||
Accumulated other comprehensive income/(loss) | 2,731 | (382 | ) | |||||
Total Stockholders’ Equity | 802,831 | 869,616 | ||||||
Non-controlling interests in properties | 343 | 979 | ||||||
Total Equity | 803,174 | 870,595 | ||||||
Total Liabilities and Equity | $ | 1,574,439 | $ | 1,601,513 | ||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Rental and other revenues | $ | 164,041 | $ | 160,840 | $ | 156,297 | $ | 180,485 | $ | 164,041 | $ | 160,840 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Property operating expenses | 58,005 | 58,312 | 57,316 | 67,739 | 58,005 | 58,312 | ||||||||||||||||||
General and administrative | 15,489 | 10,690 | 11,066 | 13,782 | 15,489 | 10,690 | ||||||||||||||||||
Depreciation and amortization | 57,317 | 60,367 | 59,159 | 62,495 | 57,317 | 60,367 | ||||||||||||||||||
Impairment of real estate | 13,444 | — | — | |||||||||||||||||||||
Total operating expenses | 130,811 | 129,369 | 127,541 | 157,460 | 130,811 | 129,369 | ||||||||||||||||||
Operating income | 33,230 | 31,471 | 28,756 | 23,025 | 33,230 | 31,471 | ||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Contractual interest expense | (23,268 | ) | (26,363 | ) | (28,401 | ) | (25,784 | ) | (23,268 | ) | (26,363 | ) | ||||||||||||
Amortization of deferred financing costs and debt fair value | (1,332 | ) | (1,326 | ) | (1,325 | ) | (1,218 | ) | (1,332 | ) | (1,326 | ) | ||||||||||||
(24,600 | ) | (27,689 | ) | (29,726 | ) | (27,002 | ) | (24,600 | ) | (27,689 | ) | |||||||||||||
Net gain on sale of real estate property | 476,651 | 1,347 | 3,412 | 21,658 | 476,651 | 1,347 | ||||||||||||||||||
Net income | 485,281 | 5,129 | 2,442 | 17,681 | 485,281 | 5,129 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Net income attributable to non-controlling interests in properties | (886 | ) | (602 | ) | (644 | ) | (691 | ) | (886 | ) | (602 | ) | ||||||||||||
Net income attributable to the Company | 484,395 | 4,527 | 1,798 | 16,990 | 484,395 | 4,527 | ||||||||||||||||||
Preferred stock distributions | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | ||||||||||||
Net income/(loss) attributable to common stockholders | $ | 476,975 | $ | (2,893 | ) | $ | (5,622 | ) | $ | 9,570 | $ | 476,975 | $ | (2,893 | ) | |||||||||
Net income/(loss) per common share: | ||||||||||||||||||||||||
Basic | $ | 10.97 | $ | (0.06 | ) | $ | (0.13 | ) | $ | 0.23 | $ | 10.97 | $ | (0.06 | ) | |||||||||
Diluted | $ | 10.80 | $ | (0.06 | ) | $ | (0.13 | ) | $ | 0.22 | $ | 10.80 | $ | (0.06 | ) | |||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 43,498 | 47,223 | 43,997 | 42,052 | 43,498 | 47,223 | ||||||||||||||||||
Diluted | 44,145 | 47,223 | 43,997 | 42,866 | 44,145 | 47,223 | ||||||||||||||||||
Dividend distributions declared per common share | $ | 0.65 | $ | 0.60 | $ | 0.94 | $ | 0.80 | $ | 0.65 | $ | 0.60 | ||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Net income | $ | 485,281 | $ | 5,129 | $ | 2,442 | $ | 17,681 | $ | 485,281 | $ | 5,129 | ||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||
Unrealized cash flow hedge gain/(loss) | 989 | (3,003 | ) | 821 | 3,336 | 989 | (3,003 | ) | ||||||||||||||||
Amounts reclassified to interest expense | 589 | 328 | (106 | ) | (223 | ) | 589 | 328 | ||||||||||||||||
Other comprehensive income/(loss) | 1,578 | (2,675 | ) | 715 | 3,113 | 1,578 | (2,675 | ) | ||||||||||||||||
Comprehensive income | 486,859 | 2,454 | 3,157 | 20,794 | 486,859 | 2,454 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Comprehensive income attributable to non-controlling interests in pro perties | (886 | ) | (602 | ) | (644 | ) | ||||||||||||||||||
Comprehensive income attributable to non-controlling interests in properties | (691 | ) | (886 | ) | (602 | ) | ||||||||||||||||||
Comprehensive income attributable to the Company | $ | 485,973 | $ | 1,852 | $ | 2,513 | $ | 20,103 | $ | 485,973 | $ | 1,852 | ||||||||||||
Number of shares of preferred stock | Preferred stock | Number of shares of common stock | Common stock | Additional paid-in capital | Retained earnings/ (accumulated deficit) | Accumulated other comprehensive income/(loss) | Total stockholders’ equity | Non-controlling interests in properties | Total equity | |||||||||||||||||||||||||||||||
Balance—January 1, 2019 | 4,480 | $ | 112,000 | 39,544 | $ | 395 | $ | 377,126 | $ | (92,108 | ) | $ | 0 | $ | 397,413 | $ | 964 | $ | 398,377 | |||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 147 | 1 | 1,280 | (374 | ) | — | 907 | — | 907 | |||||||||||||||||||||||||||||
Net proceeds from sale of common stock | — | — | 14,900 | 149 | 198,725 | — | — | 198,874 | — | 198,874 | ||||||||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (44,279 | ) | — | (44,279 | ) | — | (44,279 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 112 | 112 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (596 | ) | (596 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,798 | — | 1,798 | 644 | 2,442 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 715 | 715 | — | 715 | ||||||||||||||||||||||||||||||
Balance—December 31, 2019 | 4,480 | $ | 112,000 | 54,591 | $ | 545 | $ | 577,131 | $ | (142,383) | $ | 715 | $ | 548,008 | $ | 1,124 | $ | 549,132 | ||||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 170 | 2 | 2,531 | (243 | ) | — | 2,290 | — | 2,290 | |||||||||||||||||||||||||||||
Common stock repurchased | — | — | (11,364 | ) | (114 | ) | (100,251 | ) | — | — | (100,365 | ) | — | (100,365 | ) | |||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (27,439 | ) | — | (27,439 | ) | — | (27,439 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 52 | 52 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (829 | ) | (829 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 4,527 | — | 4,527 | 602 | 5,129 | ||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (2,675 | ) | (2,675 | ) | — | (2,675 | ) | |||||||||||||||||||||||||||
Balance—December 31, 2020 | 4,480 | $ | 112,000 | 43,397 | $ | 433 | $ | 479,411 | $ | (172,958) | $ | (1,960 | ) | $ | 416,926 | $ | 949 | $ | 417,875 | |||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 157 | 2 | 2,650 | (228 | ) | — | 2,424 | — | 2,424 | |||||||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (28,287 | ) | — | (28,287 | ) | — | (28,287 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 286 | 286 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (1,142 | ) | (1,142 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 484,395 | — | 484,395 | 886 | 485,281 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,578 | 1,578 | — | 1,578 | ||||||||||||||||||||||||||||||
Balance—December 31, 2021 | 4,480 | $ | 112,000 | 43,554 | $ | 435 | $ | 482,061 | $ | 275,502 | $ | (382 | ) | $ | 869,616 | $ | 979 | $ | 870,595 | |||||||||||||||||||||
Number of shares of preferred stock | Preferred stock | Number of shares of common stock | Common stock | Additional paid-in capital | Retained earnings/ (accumulated deficit) | Accumulated other comprehensive income/(loss) | Total stockholders’ equity | Non-controlling interests in properties | Total equity | |||||||||||||||||||||||||||||||
Balance—January 1, 2020 | 4,480 | $ | 112,000 | 54,591 | $ | 545 | $ | 577,131 | $ | (142,383 | ) | $ | 715 | $ | 548,008 | $ | 1,124 | $ | 549,132 | |||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 170 | 2 | 2,531 | (243 | ) | — | 2,290 | — | 2,290 | |||||||||||||||||||||||||||||
Common stock repurchased | — | — | (11,364 | ) | (114 | ) | (100,251 | ) | — | — | (100,365 | ) | — | (100,365 | ) | |||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (27,439 | ) | — | (27,439 | ) | — | (27,439 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 52 | 52 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (829 | ) | (829 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 4,527 | — | 4,527 | 602 | 5,129 | ||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (2,675 | ) | (2,675 | ) | — | (2,675 | ) | |||||||||||||||||||||||||||
Balance—December 31, 2020 | 4,480 | $ | 112,000 | 43,397 | $ | 433 | $ | 479,411 | $ | (172,958 | ) | $ | (1,960 | ) | $ | 416,926 | $ | 949 | $ | 417,875 | ||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 157 | 2 | 2,650 | (228 | ) | — | 2,424 | — | 2,424 | |||||||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (28,287 | ) | — | (28,287 | ) | — | (28,287 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 286 | 286 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (1,142 | ) | (1,142 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 484,395 | — | 484,395 | 886 | 485,281 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,578 | 1,578 | — | 1,578 | ||||||||||||||||||||||||||||||
Balance—December 31, 2021 | 4,480 | $ | 112,000 | 43,554 | $ | 435 | $ | 482,061 | $ | 275,502 | $ | (382 | ) | $ | 869,616 | $ | 979 | $ | 870,595 | |||||||||||||||||||||
Restricted stock award grants and vesting | — | — | 171 | 2 | 4,142 | (352 | ) | — | 3,792 | — | 3,792 | |||||||||||||||||||||||||||||
Common stock repurchased | — | — | (4,007 | ) | (40 | ) | (50,042 | ) | — | — | (50,082 | ) | — | (50,082 | ) | |||||||||||||||||||||||||
Common stock dividend distribution declared | — | — | — | — | — | (33,178 | ) | — | (33,178 | ) | — | (33,178 | ) | |||||||||||||||||||||||||||
Preferred stock dividend distribution declared | — | — | — | — | — | (7,420 | ) | — | (7,420 | ) | — | (7,420 | ) | |||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | 170 | 170 | ||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | (1,497 | ) | (1,497 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 16,990 | — | 16,990 | 691 | 17,681 | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 3,113 | 3,113 | — | 3,113 | ||||||||||||||||||||||||||||||
Balance—December 31, 2022 | 4,480 | $ | 112,000 | 39,718 | $ | 397 | $ | 436,161 | $ | 251,542 | $ | 2,731 | $ | 802,831 | $ | 343 | $ | 803,174 | ||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||||
Net income | $ | 485,281 | $ | 5,129 | $ | 2,442 | $ | 17,681 | $ | 485,281 | $ | 5,129 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation and amortization | 57,317 | 60,367 | 59,159 | 62,495 | 57,317 | 60,367 | ||||||||||||||||||
Amortization of deferred financing costs and debt fair value | 1,332 | 1,326 | 1,325 | 1,218 | 1,332 | 1,326 | ||||||||||||||||||
Amortization of above and below market leases | 343 | (17 | ) | (27 | ) | 75 | 343 | (17 | ) | |||||||||||||||
Straight-line rent/expense | (566 | ) | (3,389 | ) | (5,233 | ) | (9,218 | ) | (566 | ) | (3,389 | ) | ||||||||||||
Non-cash stock compensation | 2,641 | 2,332 | 1,742 | 3,879 | 2,641 | 2,332 | ||||||||||||||||||
Receipts from sales-type lease | 43,549 | — | — | |||||||||||||||||||||
Net gain on sale of real estate property | (476,651 | ) | (1,347 | ) | (3,412 | ) | (21,658 | ) | (476,651 | ) | (1,347 | ) | ||||||||||||
Impairment of real estate | 13,444 | — | — | |||||||||||||||||||||
Changes in non-cash working capital: | ||||||||||||||||||||||||
Rents receivable, net | (654 | ) | (182 | ) | (1,061 | ) | (6,033 | ) | (654 | ) | (182 | ) | ||||||||||||
Other assets | (345 | ) | 53 | (330 | ) | (10 | ) | (345 | ) | 53 | ||||||||||||||
Accounts payable and accrued liabilities | 451 | (4,194 | ) | (5,538 | ) | 2,833 | 451 | (4,194 | ) | |||||||||||||||
Deferred rent | 3,653 | 702 | 1,022 | (2,453 | ) | 3,653 | 702 | |||||||||||||||||
Tenant rent deposits | 420 | (857 | ) | (590 | ) | 875 | 420 | (857 | ) | |||||||||||||||
Net Cash Provided By Operating Activities | 73,222 | 59,923 | 49,499 | 106,677 | 73,222 | 59,923 | ||||||||||||||||||
Cash Flows to Investing Activities: | ||||||||||||||||||||||||
Additions to real estate properties | (17,869 | ) | (26,352 | ) | (16,002 | ) | (37,485 | ) | (17,869 | ) | (26,352 | ) | ||||||||||||
Acquisition of real estate | (632,317 | ) | 0 | (108,358 | ) | — | (632,317 | ) | — | |||||||||||||||
Net proceeds from sale of real estate. | 640,995 | 6,340 | 46,364 | |||||||||||||||||||||
Net proceeds from sale of real estate | — | 640,995 | 6,340 | |||||||||||||||||||||
Deferred leasing costs | (8,190 | ) | (7,791 | ) | (3,926 | ) | (9,565 | ) | (8,190 | ) | (7,791 | ) | ||||||||||||
Net Cash Used In Investing Activities | (17,381 | ) | (27,803 | ) | (81,922 | ) | (47,050 | ) | (17,381 | ) | (27,803 | ) | ||||||||||||
Cash Flows (to)/from Financing Activities: | ||||||||||||||||||||||||
Proceeds from sale of common stock | 0 | 0 | 198,874 | |||||||||||||||||||||
Debt issuance and extinguishment costs | (2,506 | ) | 0 | (1,008 | ) | |||||||||||||||||||
Cash Flows to Financing Activities: | ||||||||||||||||||||||||
Proceeds from borrowings | 180,000 | 130,000 | 154,750 | 97,500 | 180,000 | 130,000 | ||||||||||||||||||
Repayment of borrowings | (202,442 | ) | (61,330 | ) | (216,336 | ) | (62,270 | ) | (202,442 | ) | (61,330 | ) | ||||||||||||
Dividend distributions paid to stockh o lders | (33,506 | ) | (41,178 | ) | (48,163 | ) | ||||||||||||||||||
Dividend distributions paid to stockholders | (41,365 | ) | (33,506 | ) | (41,178 | ) | ||||||||||||||||||
Repurchases of common stock | (50,082 | ) | — | (100,365 | ) | |||||||||||||||||||
Distributions to non-controlling interests in properties | (1,142 | ) | (829 | ) | (596 | ) | (1,497 | ) | (1,142 | ) | (829 | ) | ||||||||||||
Shares withheld for payment of taxes on restricted stock unit vesting | (216 | ) | (42 | ) | (832 | ) | (87 | ) | (216 | ) | (42 | ) | ||||||||||||
Contributions from non-controlling interests in properties . | 286 | 52 | 112 | |||||||||||||||||||||
Repurchases of common stock | 0 | (100,365 | ) | 0 | ||||||||||||||||||||
Contributions from non-controlling interests in properties | 170 | 286 | 52 | |||||||||||||||||||||
Debt issuance and extinguishment costs | — | (2,506 | ) | — | ||||||||||||||||||||
Net Cash (Used In)/Provided By Financing Activities | (59,526 | ) | (73,692 | ) | 86,801 | |||||||||||||||||||
Net Cash Used In By Financing Activities | (57,631 | ) | (59,526 | ) | (73,692 | ) | ||||||||||||||||||
Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash | (3,685 | ) | (41,572 | ) | 54,378 | |||||||||||||||||||
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | 1,996 | (3,685 | ) | (41,572 | ) | |||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 45,951 | 87,523 | 33,145 | 42,266 | 45,951 | 87,523 | ||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 42,266 | $ | 45,951 | $ | 87,523 | $ | 44,262 | $ | 42,266 | $ | 45,951 | ||||||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash: | ||||||||||||||||||||||||
Cash and Cash Equivalents, End of Period | 21,321 | 25,305 | 70,129 | 28,187 | 21,321 | 25,305 | ||||||||||||||||||
Restricted Cash, End of Period | 20,945 | 20,646 | 17,394 | 16,075 | 20,945 | 20,646 | ||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | 42,266 | $ | 45,951 | $ | 87,523 | $ | 44,262 | $ | 42,266 | $ | 45,951 | ||||||||||||
Supplemental Disclosures of Cash Flow Information: | ||||||||||||||||||||||||
Cash paid for interest | $ | 23,344 | $ | 26,454 | $ | 28,479 | $ | 23,064 | $ | 23,344 | $ | 26,454 | ||||||||||||
Purchase of additions in real estate properties included in accounts payable | $ | 5,815 | $ | 7,640 | $ | 6,489 | $ | 13,004 | $ | 5,815 | $ | 7,640 | ||||||||||||
Purchase of deferred leasing costs included in accounts payable | $ | 2,790 | $ | 289 | $ | 603 | $ | 1,274 | $ | 2,790 | $ | 289 | ||||||||||||
Debt assumed on acquisition of real estate | $ | 0 | $ | 0 | $ | 22,473 |
Years | ||||
Buildings | 28-59 | |||
Furniture, fixtures and equipment | 4-10 |
December 31, 2021 | December 31, 2020 | December 31, 2022 | December 31, 2021 | |||||||||||||
Billed receivables | $ | 2,820 | $ | 2,239 | $ | 4,675 | $ | 2,820 | ||||||||
Straight-line receivables | 27,595 | 30,729 | ||||||||||||||
Straight-line receivables (unbilled receivables) | 39,754 | 27,595 | ||||||||||||||
Total rents receivable | $ | 30,415 | $ | 32,968 | $ | 44,429 | $ | 30,415 | ||||||||
Property | Date Acquired | Percentage Owned | ||||||
Bloc 83 | December 2021 | 100% | ||||||
The Terraces | December 2021 | 100% | ||||||
Block 23 | December 2021 | 100% | ||||||
5910 Pacific Center and 9985 Pacific Heights (1) | May 2021 | 100% | ||||||
(1 ) | 5910 Pacific Center and 9985 Pacific Heights were added to the existing Sorrento Mesa portfolio of properties (collectively “Sorrento Mesa”). The Sorrento Mesa portfolio was subsequently sold in December 2021. |
5910 Pacific Center and 9985 Pacific Heights | Block 23 | The Terraces | Bloc 83 | December 31, 2021 | ||||||||||||||||
Land | $ | 37,294 | $ | — | $ | 15,861 | $ | 18,956 | $ | 72,111 | ||||||||||
Building and improvements | 2,979 | 115,747 | 101,455 | 280,313 | 500,494 | |||||||||||||||
Tenant improvements | 917 | 2,375 | 6,431 | 5,075 | 14,798 | |||||||||||||||
Lease intangible assets | 2,469 | 11,306 | 11,074 | 19,560 | 44,409 | |||||||||||||||
Other assets | 19 | 10,627 | 15 | 291 | 10,952 | |||||||||||||||
Accounts payable and other liabilities | (319 | ) | (1,914 | ) | (319 | ) | (463 | ) | (3,015 | ) | ||||||||||
Lease intangible liabilities | (103 | ) | (2,197 | ) | (2,118 | ) | (3,014 | ) | (7,432 | ) | ||||||||||
Net assets acquired | $ | 43,256 | $ | 135,944 | $ | 132,399 | $ | 320,718 | $ | 632,317 | ||||||||||
Canyon Park | Cascade Station | 7601 Tech | December 31, 2019 | |||||||||||||
Land | $ | 7,098 | $ | — | $ | 10,865 | $ | 17,963 | ||||||||
Building and improvements | 36,619 | 25,141 | 25,677 | 87,437 | ||||||||||||
Tenant improvements | 1,797 | 2,080 | 3,858 | 7,735 | ||||||||||||
Lease intangible assets | 8,109 | 3,134 | 7,401 | 18,644 | ||||||||||||
Other assets | 10 | 3,164 | 293 | 3,467 | ||||||||||||
Debt | — | (697 | ) | — | (697 | ) | ||||||||||
Accounts payable and other liabilities | (1,266 | ) | (186 | ) | (668 | ) | (2,120 | ) | ||||||||
Lease intangible liabilities | (1,297 | ) | (220 | ) | (79 | ) | (1,596 | ) | ||||||||
Net assets acquired | $ | 51,070 | $ | 32,416 | $ | 47,347 | $ | 130,833 | ||||||||
Cherry Creek | December 31, 2020 | |||
Real estate properties, net | $ | 40,849 | ||
Deferred leasing costs, net | 150 | |||
Acquired lease intangible assets, net | 2,256 | |||
Rents receivable, prepaid expenses and other assets | 2,799 | |||
Assets held for sale | $ | 46,054 | ||
Accounts payable, accrued expenses, deferred rent and tenant rent deposits | $ | (531) | ||
Liabilities related to assets held for sale | $ | (531) | ||
Lease Intangible Assets | Lease Intangible Liabilities | |||||||||||||||||||||||||||
December 31, 2022 | Above Market Leases | In Place Leases | Leasing Commissions | Total | Below Market Leases | Below Market Ground Lease | Total | |||||||||||||||||||||
Cost | $ | 18,793 | $ | 78,720 | $ | 34,123 | $ | 131,636 | $ | (15,682) | $ | (138) | $ | (15,820) | ||||||||||||||
Accumulated amortization | (9,069 | ) | (49,772 | ) | (17,357 | ) | (76,198 | ) | 6,618 | 52 | 6,670 | |||||||||||||||||
$ | 9,724 | $ | 28,948 | $ | 16,766 | $ | 55,438 | $ | (9,064) | $ | (86) | $ | (9,150) | |||||||||||||||
Lease Intangible Assets | Lease Intangible Liabilities | |||||||||||||||||||||||||||
December 31, 2021 | Above Market Leases | In Place Leases | Leasing Commissions | Total | Below Market Leases | Below Market Ground Lease | Total | |||||||||||||||||||||
Cost | $ | 21,147 | $ | 93,761 | $ | 39,345 | $ | 154,253 | $ | (16,743) | $ | (138) | $ | (16,881) | ||||||||||||||
Accumulated amortization | (9,627 | ) | (56,987 | ) | (18,714 | ) | (85,328 | ) | 5,961 | 48 | 6,009 | |||||||||||||||||
$ | 11,520 | $ | 36,774 | $ | 20,631 | $ | 68,925 | $ | (10,782) | $ | (90) | $ | (10,872) | |||||||||||||||
Lease Intangible Assets | Lease Intangible Liabilities | |||||||||||||||||||||||||||
December 31, 2020 | Above Market Leases | In Place Leases | Leasing Commissions | Total | Below Market Leases | Below Market Ground Lease | Total | |||||||||||||||||||||
Cost | $ | 14,894 | $ | 80,259 | $ | 30,284 | $ | 125,437 | $ | (13,093) | $ | (138) | $ | (13,231) | ||||||||||||||
Accumulated amortization | (8,497 | ) | (55,636 | ) | (17,161 | ) | (81,294 | ) | 7,152 | 44 | 7,196 | |||||||||||||||||
$ | 6,397 | $ | 24,623 | $ | 13,123 | $ | 44,143 | $ | (5,941) | $ | (94) | $ | (6,035) | |||||||||||||||
2023 | $ | 8,861 | ||
2024 | 6,660 | |||
2025 | 6,479 | |||
2026 | 6,491 | |||
2027 | 4,287 | |||
Thereafter | 13,510 | |||
$ | 46,288 | |||
2022 | $ | 10,541 | ||
2023 | 9,278 | |||
2024 | 6,821 | |||
2025 | 6,548 | |||
2026 | 6,561 | |||
Thereafter | 18,304 | |||
$ | 58,053 | |||
Property | December 31, 2021 | December 31, 2020 | Interest Rate as of December 31, 2021 (1) | Maturity | ||||||||||||
Unsecured Credit Facility (3)(4) | $ | 142,000 | $ | 75,000 | LIBOR +1.30 | % (2) | November 2025 | |||||||||
Term Loan (3) | 50,000 | 50,000 | LIBOR +1.25 | % (2) | September 2024 | |||||||||||
Mission City | 47,000 | 47,000 | 3.78 | % | November 2027 | |||||||||||
Canyon Park (6) | 40,381 | 40,950 | 4.30 | % | March 2027 | |||||||||||
Circle Point | 39,650 | 39,650 | 4.49 | % | September 2028 | |||||||||||
190 Office Center | 39,581 | 40,236 | 4.79 | % | October 2025 | |||||||||||
SanTan | 32,807 | 33,444 | 4.56 | % | March 2027 | |||||||||||
Intellicenter | 31,883 | 32,442 | 4.65 | % | October 2025 | |||||||||||
The Quad | 30,600 | 30,600 | 4.20 | % | September 2028 | |||||||||||
FRP Collection | 27,535 | 28,263 | 3.10 | % | September 2023 | |||||||||||
2525 McKinnon | 27,000 | 27,000 | 4.24 | % | April 2027 | |||||||||||
Greenwood Blvd | 21,920 | 22,425 | 3.15 | % | December 2025 | |||||||||||
Cascade Station | 21,581 | 21,952 | 4.55 | % | May 2024 | |||||||||||
5090 N. 40th St | 21,233 | 21,640 | 3.92 | % | January 2027 | |||||||||||
AmberGlen | 20,000 | 20,000 | 3.69 | % | May 2027 | |||||||||||
Lake Vista Pointe | 17,018 | 17,375 | 4.28 | % | August 2024 | |||||||||||
Central Fairwinds | 16,707 | 17,127 | 3.15 | % | June 2024 | |||||||||||
FRP Ingenuity Drive | 16,457 | 16,736 | 4.44 | % | December 2024 | |||||||||||
Carillon Point | 15,185 | 15,585 | 3.10 | % | October 2023 | |||||||||||
Midland Life Insurance (5) | — | 83,537 | — | — | ||||||||||||
Total Principal | 658,538 | 680,962 | ||||||||||||||
Deferred financing costs, net | (5,223 | ) | (4,195 | ) | ||||||||||||
Unamortized fair value adjustments | 333 | 475 | ||||||||||||||
Total | $ | 653,648 | $ | 677,242 | ||||||||||||
Property | December 31, 2022 | December 31, 2021 | Interest Rate as of December 31, 2022 (1) | Maturity | ||||||||||||
Unsecured Credit Facility (3)(4) | $ | 200,500 | $ | 142,000 | LIBOR +1.30 | % (2) | November 2025 | |||||||||
Term Loan (3) | 50,000 | 50,000 | LIBOR +1.25 | % (2) | September 2024 | |||||||||||
Mission City | 46,859 | 47,000 | 3.78 | % | November 2027 | |||||||||||
Canyon Park (5) | 39,673 | 40,381 | 4.30 | % | March 2027 | |||||||||||
Circle Point | 39,440 | 39,650 | 4.49 | % | September 2028 | |||||||||||
190 Office Center (6) | 38,894 | 39,581 | 4.79 | % | October 2025 | |||||||||||
SanTan | 32,140 | 32,807 | 4.56 | % | March 2027 | |||||||||||
Intellicenter | 31,297 | 31,883 | 4.65 | % | October 2025 | |||||||||||
The Quad | 30,600 | 30,600 | 4.20 | % | September 2028 | |||||||||||
2525 McKinnon | 27,000 | 27,000 | 4.24 | % | April 2027 | |||||||||||
FRP Collection | 26,784 | 27,535 | 3.10 | % | September 2023 | |||||||||||
Greenwood Blvd | 21,396 | 21,920 | 3.15 | % | December 2025 | |||||||||||
Cascade Station | 21,192 | 21,581 | 4.55 | % | May 2024 | |||||||||||
5090 N. 40th St | 20,810 | 21,233 | 3.92 | % | January 2027 | |||||||||||
AmberGlen | 20,000 | 20,000 | 3.69 | % | May 2027 | |||||||||||
Central Fairwinds | 16,273 | 16,707 | 3.15 | % | June 2024 | |||||||||||
FRP Ingenuity Drive (7) | 16,165 | 16,457 | 4.44 | % | December 2024 | |||||||||||
Carillon Point | 14,773 | 15,185 | 3.10 | % | October 2023 | |||||||||||
Lake Vista Pointe (8) | — | 17,018 | — | — | ||||||||||||
Total Principal | 693,796 | 658,538 | ||||||||||||||
Deferred financing costs, net | (3,887 | ) | (5,223 | ) | ||||||||||||
Unamortized fair value adjustments | 190 | 333 | ||||||||||||||
Total | $ | 690,099 | $ | 653,648 | ||||||||||||
(1) | All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility |
(2) | As of December 31, one-month LIBOR rate was |
(3) | In September 2019, the Company entered into a five-year $50 million Term Loan leverage ratio. In conjunction with the Term Loan, the Company also entered into 30-day LIBOR payments. |
(4) | In March 2018, the Company entered into the Credit Agreement for the Unsecured Credit Facility that provides for commitments of up to $250 million, which includes an accordion feature that allows the Company to borrow up to $500million, subject to customary terms and conditions. On November 16, 2021, the Company entered into an Amended and Restated Credit Agreement for the Unsecured Credit Facility that provides for commitments of up to $300 million. Combined with the Company’s existing five-year Term Loan, the total authorized borrowings increased from $300 million to $350 million. The Unsecured Credit Facility matures in November 2025 and may be extended 12 months at the Company’s option upon meeting certain conditions. Borrowings under the Unsecured Credit Facility bear interest at a rate equal to the LIBOR rate plus a margin of between 125 to 225 basis points depending upon the Company’s consolidated leverage ratio. As of December 31, |
(5) |
The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. |
(6) | In Q4 2022, a ‘cash-sweep’ began for the 190 Office Center loan due to the non-renewal of the minimum square footage of a major tenant in the building. A ‘cash-sweep’ results in the excess funds being held in escrow to fund future leasing costs related to the major tenant’s space. As of December 31, 2022, total restricted cash for the property was $3.8 million. |
(7) | As of September 30, 2022, the Debt Service Coverage Ratio (“DSCR”) covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep’ event that began in Q4 2022 where excess funds have been held in escrow to fund future tenant improvement expenses of current vacant space. As of December 31, 2022, total restricted cash for the property was $2.6 million. |
(8) | In June 2022, the loan balance of $16.8 million was repaid in full. |
2022 | $ | 6,427 | ||||||
2023 | 48,539 | $ | 47,980 | |||||
2024 | 124,736 | 108,480 | ||||||
2025 | 233,997 | 292,497 | ||||||
2026 | 4,536 | 4,416 | ||||||
2027 | 176,303 | |||||||
Thereafter | 240,303 | 64,120 | ||||||
$ | 658,538 | $ | 693,796 | |||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Fixed payments | $ | 141,138 | $ | 137,247 | ||||||||||||
Variable payments | 22,718 | 23,502 | ||||||||||||||
Fixed payments | $ | 154,126 | $ | 141,138 | ||||||||||||
Variable payments | 24,827 | 22,718 | ||||||||||||||
$ | 163,856 | $ | 160,749 | $ | 178,953 | $ | 163,856 | |||||||||
2022 | $ | 123,086 | ||||||
2023 | 105,638 | $ | 124,384 | |||||
2024 | 89,426 | 115,513 | ||||||
2025 | 78,624 | 104,178 | ||||||
2026 | 70,929 | 95,714 | ||||||
2027 | 79,481 | |||||||
Thereafter | 213,071 | 220,157 | ||||||
$ | 680,774 | $ | 739,427 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Right-of-use | $ | 14,114 | $ | 12,739 | ||||
Lease liability – operating leases | $ | 9,160 | $ | 7,719 | ||||
Right-of-use | $ | 10,308 | $ | 55 | ||||
Lease liability – financing leases | $ | 1,425 | $ | 55 |
December 31, 2022 | December 31, 2021 | |||||||
Right-of-use | $ | 12,935 | $ | 14,114 | ||||
Lease liability – operating leases | $ | 8,802 | $ | 9,160 | ||||
Right-of-use | $ | 10,054 | $ | 10,308 | ||||
Lease liability – financing leases | $ | 1,475 | $ | 1,425 |
Operating Leases | Financing Leases | Operating Leases | Financing Leases | |||||||||||||
2022 | $ | 706 | $ | 34 | ||||||||||||
2023 | 836 | 12 | $ | 651 | $ | 12 | ||||||||||
2024 | 770 | 7 | 770 | 7 | ||||||||||||
2025 | 770 | 8 | 770 | 8 | ||||||||||||
2026 | 724 | 8 | 724 | 8 | ||||||||||||
2027 | 587 | 8 | ||||||||||||||
Thereafter | 27,151 | 6,946 | 26,563 | 6,938 | ||||||||||||
Total future minimum lease payments | 30,957 | 7,015 | 30,065 | 6,981 | ||||||||||||
Discount | (21,797 | ) | (5,590 | ) | (21,263 | ) | (5,506 | ) | ||||||||
Total | $ | 9,160 | $ | 1,425 | $ | 8,802 | $ | 1,475 | ||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2022 | 2021 | 2020 | |||||||||||||||||||
Net income | $ | 485,281 | $ | 5,129 | $ | 2,442 | $ | 17,681 | $ | 485,281 | $ | 5,129 | ||||||||||||
Less: Net income attributable to non-controlling interests in properties | (886 | ) | (602 | ) | (644 | ) | (691 | ) | (886 | ) | (602 | ) | ||||||||||||
Less: Net income attributable to preferred stockholders | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | (7,420 | ) | ||||||||||||
Numerator for basic and diluted EPS | $ | 476,975 | $ | (2,893 | ) | $ | (5,622 | ) | $ | 9,570 | $ | 476,975 | $ | (2,893 | ) | |||||||||
Denominator for basic EPS | 43,498 | 47,223 | 43,997 | 42,052 | 43,498 | 47,223 | ||||||||||||||||||
Dilutive effect of RSUs and PSUs | 647 | 0 | 0 | 814 | 647 | — | ||||||||||||||||||
Denominator for dilutive EPS | 44,145 | 47,223 | 43,997 | 42,866 | 44,145 | 47,223 | ||||||||||||||||||
Net income/(loss) per common share: | ||||||||||||||||||||||||
Basic | $ | 10.97 | $ | (0.06 | ) | $ | (0.13 | ) | $ | 0.23 | $ | 10.97 | $ | (0.06 | ) | |||||||||
Dilutive | $ | 10.80 | $ | (0.06 | ) | $ | (0.13 | ) | $ | 0.22 | $ | 10.80 | $ | (0.06 | ) |
Period | Distribution per Common Share/Unit | Declaration Date | Record Date | Payment Date | ||||||||||||
January 1, 2021 – March 31, 2021 | $ | 0.15 | March 23, 2021 | April 9, 2021 | April 23, 2021 | |||||||||||
April 1, 2021 – June 30, 2021 | 0.15 | June 15, 2021 | July 9, 2021 | July 23, 2021 | ||||||||||||
July 1, 2021 – September 30, 2021 | 0.15 | September 16, 2021 | October 8, 2021 | October 22, 2021 | ||||||||||||
October 1, 2021 – December 31, 2021 | 0.20 | December 17, 2021 | January 11, 2022 | January 25, 2022 | ||||||||||||
Total | $ | 0.65 | ||||||||||||||
Period | Distribution per Common Share/Unit | Declaration Date | Record Date | Payment Date | ||||||||||||
January 1, 2022 – March 31, 2022 | $ | 0.20 | March 15, 2022 | April 8, 2022 | April 22, 2022 | |||||||||||
April 1, 2022 – June 30, 2022 | 0.20 | June 16, 2022 | July 8, 2022 | July 22, 2022 | ||||||||||||
July 1, 2022 – September 30, 2022 | 0.20 | September 15, 2022 | October 7, 2022 | October 21, 2022 | ||||||||||||
October 1, 2022 – December 31, 2022 | 0.20 | December 15, 2022 | January 10, 2023 | January 24, 2023 | ||||||||||||
Total | $ | 0.80 | ||||||||||||||
Number of RSUs | Number of Performance RSUs | |||||||
Outstanding at December 31, 2019 | 335,415 | — | ||||||
Granted | 147,050 | 97,500 | ||||||
Issuance of dividend equivalents | 25,727 | — | ||||||
Vested | (175,757 | ) | — | |||||
Outstanding at December 31, 2020 | 332,435 | 97,500 | ||||||
Granted | 169,500 | 120,000 | ||||||
Issuance of dividend equivalents | 18,665 | — | ||||||
Vested | (177,038 | ) | — | |||||
Forfeited | (1,403 | ) | — | |||||
Outstanding at December 31, 2021 | 342,159 | 217,500 | ||||||
Granted | 237,986 | 90,000 | ||||||
Issuance of dividend equivalents | 25,987 | — | ||||||
Vested | (177,812 | ) | — | |||||
Outstanding at December 31, 2022 | 428,320 | 307,500 |
Number of RSUs | Number of Performance RSUs | |||||||
Outstanding at December 31, 2018 | 354,323 | 0 | ||||||
Granted | 162,500 | 0 | ||||||
Issuance of dividend equivalents | 31,145 | 0 | ||||||
Vested | (212,553 | ) | 0 | |||||
Forfeited | 0 | 0 | ||||||
Outstanding at December 31, 2019 | 335,415 | 0 | ||||||
Granted | 147,050 | 97,500 | ||||||
Issuance of dividend equivalents | 25,727 | 0 | ||||||
Vested | (175,757 | ) | 0 | |||||
Forfeited | 0 | 0 | ||||||
Outstanding at December 31, 2020 | 332,435 | 97,500 | ||||||
Granted | 169,500 | 120,000 | ||||||
Issuance of dividend equivalents | 18,665 | 0 | ||||||
Vested | (177,038 | ) | 0 | |||||
Forfeited | (1,403 | ) | 0 | |||||
Outstanding at December 31, 2021 | 342,159 | 217,500 |
Units Granted | Fair Value (in thousands) | Weighted Average Grant Fair Value Per Share | ||||||||||||||
RSUs | Performance RSUs | |||||||||||||||
2022 | 237,986 | 90,000 | $ | 5,753 | $ | 17.54 | ||||||||||
2021 | 169,500 | 120,000 | 2,808 | 9.70 | ||||||||||||
2020 | 147,050 | 97,500 | 3,355 | 13.72 |
Units Granted | Fair Value (in thousands) | Weighted Average Grant Fair Value Per Share | ||||||||||||||
RSUs | Performance RSUs | |||||||||||||||
2019 | 162,500 | 0 | $ | 1,825 | $ | 11.23 | ||||||||||
2020 | 147,050 | 97,500 | 3,355 | 13.72 | ||||||||||||
2021 | 169,500 | 120,000 | 2,808 | 9.70 |
RSUs | Performance RSUs | Total | ||||||||||
2022 | $ | 2,554 | $ | 1,325 | $ | 3,879 | ||||||
2021 | 1,833 | 808 | 2,641 | |||||||||
2020 | 1,919 | 414 | 2,333 |
RSUs | Performance RSUs | Total | ||||||||||
2019 | $ | 1,742 | $ | 0 | $ | 1,742 | ||||||
2020 | 1,919 | 414 | 2,333 | |||||||||
2021 | 1,833 | 808 | 2,641 |
Initial Costs to Company | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried as of December 31, 2021 (1) | Accumulated Amortization | Year of Construction | Year Acquired | Initial Costs to Company | Costs Capitalized Subsequent to Acquisition | Gross Amount at Which Carried as of December 31, 2022 (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances (2) | Land | Buildings and Improvements | Improvements | Land | Building and Improvements | Total | Encumbrances (2) | Land | Buildings and Improvements | Land, Buildings, and Improvements (3) | Land | Building and Improvements | Total | Accumulated Amortization | Year of Construction | Year Acquired | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AmberGlen | $ | 20,000 | $ | 6,546 | $ | 3,490 | $ | 2,566 | $ | 6,546 | $ | 6,056 | $ | 12,602 | $ | 3,275 | 1984 -1998 | 2009 | $ | 20,000 | $ | 6,546 | $ | 3,490 | $ | 2,791 | $ | 6,546 | $ | 6,281 | $ | 12,827 | $ | 3,611 | 1984-1998 | 2009 | ||||||||||||||||||||||||||||||||||||||||||||
City Center | 0 | 3,123 | 10,656 | 9,883 | 3,123 | 20,539 | 23,662 | 8,677 | 1984 | 2010 | — | 3,123 | 10,656 | 11,731 | 3,123 | 22,387 | 25,510 | 9,360 | 1984 | 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Central Fairwinds | 16,707 | 1,747 | 9,751 | 7,124 | 1,747 | 16,875 | 18,622 | 5,606 | 1982 | 2012 | 16,273 | 1,747 | 9,751 | 7,333 | 1,747 | 17,084 | 18,831 | 6,197 | 1982 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lake Vista Point | 17,018 | 4,115 | 20,600 | 196 | 4,115 | 20,796 | 24,911 | 6,768 | 2007 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Florida Research Park | 43,992 | 11,446 | 56,475 | 5,241 | 11,446 | 61,716 | 73,162 | 13,969 | 1999 | 2014 ; 2016 | 42,949 | 11,446 | 56,475 | 7,154 | 11,446 | 63,629 | 75,075 | 15,010 | 1999 | 2014; 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Superior Pointe | 0 | 3,153 | 19,834 | 2,442 | 3,153 | 22,276 | 25,429 | 5,156 | 2000 | 2015 | — | 3,153 | 19,834 | 3,758 | 3,153 | 23,592 | 26,745 | 6,204 | 2000 | 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denver Tech | 0 | 18,002 | 52,719 | 8,704 | 18,002 | 61,423 | 79,425 | 9,763 | 1999 ; 1997 | 2015; 2019 | — | 18,002 | 52,719 | 9,709 | 18,002 | 62,428 | 80,430 | 12,775 | 1999; 1997 | 2015; 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
190 Office Center | 39,581 | 7,162 | 39,690 | 2,319 | 7,162 | 42,009 | 49,171 | 7,546 | 2001 | 2015 | 38,894 | 7,162 | 39,690 | (11,277 | ) | 6,013 | 29,562 | 35,575 | — | 2001 | 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intellicenter | 31,883 | 5,244 | 34,278 | 137 | 5,244 | 34,415 | 39,659 | 6,744 | 2008 | 2015 | 31,297 | 5,244 | 34,278 | 137 | 5,244 | 34,415 | 39,659 | 7,607 | 2008 | 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carillon Point | 15,185 | 5,172 | 17,316 | 1,492 | 5,172 | 18,808 | 23,980 | 4,631 | 2007 | 2016 | 14,773 | 5,172 | 17,316 | 1,903 | 5,172 | 19,219 | 24,391 | 5,228 | 2007 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Park Tower | 0 | 3,479 | 68,656 | 17,262 | 3,479 | 85,918 | 89,397 | 16,982 | 1973 | 2016 | — | 3,479 | 68,656 | 22,491 | 3,479 | 91,147 | 94,626 | 20,475 | 1973 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5090 N 40 th St | 21,233 | 6,696 | 32,123 | 3,346 | 6,696 | 35,469 | 42,165 | 5,408 | 1988 | 2016 | 20,810 | 6,696 | 32,123 | 4,444 | 6,696 | 36,567 | 43,263 | 6,732 | 1988 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SanTan | 32,807 | 6,803 | 37,187 | 5,982 | 6,803 | 43,169 | 49,972 | 10,107 | 2000 -2003 | 2016 | 32,140 | 6,803 | 37,187 | 4,268 | 6,803 | 41,455 | 48,258 | 8,986 | 2000-2003 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2525 McKinnon | 27,000 | 10,629 | 34,515 | 2,529 | 10,629 | 37,044 | 47,673 | 5,075 | 2003 | 2017 | 27,000 | 10,629 | 34,515 | 3,124 | 10,629 | 37,639 | 48,268 | 6,052 | 2003 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mission City | 47,000 | 25,741 | 41,474 | 10,274 | 25,741 | 51,748 | 77,489 | 11,311 | 1990 -2007 | 2017 | 46,859 | 25,741 | 41,474 | 11,221 | 25,741 | 52,695 | 78,436 | 13,316 | 1990-2007 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Papago Tech | 0 | 10,746 | 19,762 | 1,351 | 10,746 | 21,113 | 31,859 | 4,234 | 1993 -1995 | 2017 | — | 10,746 | 19,762 | 1,553 | 10,746 | 21,315 | 32,061 | 4,975 | 1993-1995 | 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pima Center | 0 | 0 | 45,133 | 3,369 | 0 | 48,502 | 48,502 | 6,776 | 2006 -2008 | 2018 | — | — | 45,133 | 6,267 | — | 51,400 | 51,400 | 8,647 | 2006-2008 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Circle Point | 39,650 | 9,320 | 39,101 | 2,788 | 9,320 | 41,889 | 51,209 | 5,999 | 2001 | 2018 | 39,440 | 9,320 | 39,101 | 5,796 | 9,320 | 44,897 | 54,217 | 7,947 | 2001 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Quad | 30,600 | 8,079 | 39,858 | 243 | 8,079 | 40,101 | 48,180 | 4,859 | 1982 | 2018 | 30,600 | 8,079 | 39,858 | 245 | 8,079 | 40,103 | 48,182 | 6,008 | 1982 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greenwood Blvd | 21,920 | 3,945 | 26,019 | 1,224 | 3,945 | 27,243 | 31,188 | 2,855 | 1997 | 2018 | 21,396 | 3,945 | 26,019 | 1,224 | 3,945 | 27,243 | 31,188 | 3,845 | 1997 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Camelback Square | 0 | 11,738 | 37,922 | 6,411 | 11,738 | 44,333 | 56,071 | 4,390 | 1978 | 2018 | — | 11,738 | 37,922 | 7,371 | 11,738 | 45,293 | 57,031 | 5,871 | 1978 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canyon Park | 40,381 | 7,098 | 38,416 | 5,044 | 7,098 | 43,460 | 50,558 | 4,255 | 1993; 1999 | 2019 | 39,673 | 7,098 | 38,416 | 5,500 | 7,098 | 43,916 | 51,014 | 5,988 | 1993; 1999 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cascade Station | 21,581 | 0 | 27,220 | 334 | 0 | 27,554 | 27,554 | 2,632 | 2008 - 2009 | 2019 | 21,192 | — | 27,220 | (8,495 | ) | — | 18,725 | 18,725 | — | 2008-2009 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Block 23 | 0 | 0 | 115,747 | 2,375 | 0 | 118,122 | 118,122 | 168 | 2019 | 2021 | — | — | 115,747 | 7,397 | — | 123,144 | 123,144 | 2,891 | 2019 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Terraces | 0 | 15,861 | 101,455 | 6,431 | 15,861 | 107,886 | 123,747 | 156 | 2017 | 2021 | — | 15,861 | 101,455 | 6,796 | 15,861 | 108,251 | 124,112 | 2,678 | 2017 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bloc 83 | 0 | 18,956 | 280,313 | 5,075 | 18,956 | 285,388 | 304,344 | 14 | 2019 ; 2021 | 2021 | — | 18,956 | 280,313 | 12,354 | 18,956 | 292,667 | 311,623 | 5,317 | 2019; 2021 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 192,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 250,500 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 658,538 | $ | 204,801 | $ | 1,249,710 | $ | 114,142 | $ | 204,801 | $ | 1,363,852 | $ | 1,568,653 | $ | 157,356 | $ | 693,796 | $ | 200,686 | $ | 1,229,110 | $ | 124,795 | $ | 199,537 | $ | 1,355,054 | $ | 1,554,591 | $ | 175,720 | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) | The aggregate cost for federal tax purposes as of December 31, billion. |
(2) | Encumbrances exclude net deferred financing costs of million and unamortized fair value adjustments of million. |
(3) | Includes impairments recorded subsequent to acquisition for 190 Office Center and Cascade Station. |
2021 | 2020 | 2019 | ||||||||||
Real Estate Properties | ||||||||||||
Balance, beginning of year | $ | 1,086,809 | $ | 1,109,173 | $ | 1,005,647 | ||||||
Acquisitions | 587,403 | 0 | 113,134 | |||||||||
Dispositions | (121,602 | ) | (1,993 | ) | (27,585 | ) | ||||||
Capital improvements | 16,043 | 27,503 | 22,491 | |||||||||
Assets held for sale | 0 | (47,874 | ) | (4,514 | ) | |||||||
Balance, end of year | $ | 1,568,653 | $ | 1,086,809 | $ | 1,109,173 | ||||||
Accumulated Depreciation | ||||||||||||
Balance, beginning of year | $ | 131,220 | $ | 101,835 | $ | 70,484 | ||||||
Depreciation | 39,106 | 38,372 | 35,531 | |||||||||
Dispositions | (12,970 | ) | (1,962 | ) | (4,180 | ) | ||||||
Depreciation on assets held for sale | 0 | (7,025 | ) | 0 | ||||||||
Balance, end of year | $ | 157,356 | $ | 131,220 | $ | 101,835 | ||||||
2022 | 2021 | 2020 | ||||||||||
Real Estate Properties | ||||||||||||
Balance, beginning of year | $ | 1,568,653 | $ | 1,086,809 | $ | 1,109,173 | ||||||
Acquisitions | — | 587,403 | — | |||||||||
Dispositions and Impairments | (58,735 | ) | (121,602 | ) | (1,993 | ) | ||||||
Capital improvements | 44,673 | 16,043 | 27,503 | |||||||||
Assets held for sale | — | — | (47,874 | ) | ||||||||
Balance, end of year | $ | 1,554,591 | $ | 1,568,653 | $ | 1,086,809 | ||||||
Accumulated Depreciation | ||||||||||||
Balance, beginning of year | $ | 157,356 | $ | 131,220 | $ | 101,835 | ||||||
Depreciation | 46,654 | 39,106 | 38,372 | |||||||||
Dispositions and Impairments | (28,290 | ) | (12,970 | ) | (1,962 | ) | ||||||
Depreciation on assets held for sale | — | — | (7,025 | ) | ||||||||
Balance, end of year | $ | 175,720 | $ | 157,356 | $ | 131,220 | ||||||
Number | |||
101.INS | INSTANCE DOCUMENT** | ||
101.SCH | SCHEMA DOCUMENT** | ||
101.CAL | CALCULATION LINKBASE DOCUMENT** | ||
101.LAB | LABELS LINKBASE DOCUMENT** | ||
101.PRE | PRESENTATION LINKBASE DOCUMENT** | ||
101.DEF | DEFINITION LINKBASE DOCUMENT** | ||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)* |
† | Filed herewith. |
* | Compensatory Plan or arrangement |
** | Submitted electronically herewith. Attached as Exhibit 101 to this report are the following documents formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Equity; |
CITY OFFICE REIT, INC. | ||||||
Date: February | By: | /s/ James Farrar | ||||
James Farrar | ||||||
Chief Executive Officer and Director |
Name | Title | Date | ||
/s/ James Farrar James Farrar | Chief Executive Officer and Director (Principal Executive Officer) | February | ||
/s/ Anthony Maretic Anthony Maretic | Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer and Principal Accounting Officer) | February | ||
/s/ John McLernon John McLernon | Independent Director, Chairman of Board of Directors | February | ||
/s/ Mark Murski Mark Murski | Independent Director | February | ||
/s/ William Flatt William Flatt | Independent Director | February | ||
/s/ John Sweet John Sweet | Independent Director | February | ||
/s/ Sabah Mirza Sabah Mirza | Independent Director | February |