Exhibit 99.2
ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION FOR
THE THREE MONTHS ENDED MARCH 31, 2019
Page | ||
Consolidated Balance Sheets | 4 | |
Consolidated Statements of Income | 6 | |
First Quarter Fact Sheet | 8 | |
Portfolio Summary | 9 | |
Funds from Operations (FFO), Core FFO and Funds Available for Distribution (FAD) | 10 | |
Analysis of Capital Expenditures | 12 | |
Capital Structure and Financial Condition | 13 | |
Portfolio Operating Analysis and Statistics | 14 | |
Lease Expirations | 21 | |
Quarter-to-Date Production Statistics | 25 | |
Multifamily Summary | 26 |
2
Forward-Looking Statement
When used within this supplemental information package, the words “may,” “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates,” “intends” and similar expressions are intended to identify “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results and performance of the Company to be materially different from those expressed or implied in the forward-looking statements. Such factors include the impact of competition from new and existing commercial facilities which could impact rents and occupancy levels at the Company’s facilities; the Company’s ability to evaluate, finance and integrate acquired and developed properties into the Company’s existing operations; the Company’s ability to effectively compete in the markets that it does business in; the impact of the regulatory environment as well as national, state and local laws and regulations including, without limitation, those governing REITs; the impact of general economic conditions upon rental rates and occupancy levels at the Company’s facilities; the availability of permanent capital at attractive rates, the outlook and actions of rating agencies and risks detailed from time to time in the Company’s SEC reports, including quarterly reports on Form10-Q, reports on Form8-K and annual reports on Form10-K.
Non-GAAP Disclosures
Provided within this supplemental information package are measures not defined in accordance with U.S. generally accepted accounting principles (“GAAP”). We believe our presentation of thesenon-GAAP measures assists investors and analysts in analyzing and comparing our operating and financial performance between reporting periods. Thesenon-GAAP measures discussed below are not substitutes of other measures of financial performance presented in accordance with GAAP. In addition, other real estate investment trusts (“REITs”) may compute these measures differently, so comparisons among REITs may not be helpful.
Net operating income (“NOI”) — We utilize NOI, anon-GAAP financial measure, to evaluate the operating performance of our business parks. We define NOI as rental income less adjusted cost of operations (described below). We believe NOI assists investors in analyzing the performance and value of our business parks by excluding (i) corporate overhead (i.e. general and administrative expenses) because it does not relate to the results of our business parks, (ii) depreciation and amortization expense because it does not accurately reflect changes in the fair value of our business parks and (iii) stock compensation expense because this expense item can vary significantly from period to period and thus impact comparability across periods. The GAAP measure most directly comparable to NOI is net income.
Cash NOI — We utilized cash NOI to evaluate the cash flow performance of our business parks. Cash NOI represents NOI adjusted to excludenon-cash items included in revenue and in cost of operations. Thenon-cash adjustments in revenue include straight-line rent, amortization of above and below market rents, net, and amortization of lease incentives and tenant improvement reimbursements. Thenon-cash adjustments in cost of operations is equal to stock compensation expense for employees whose compensation expense is recorded in cost of operations. We believe that cash NOI assists investors in analyzing cash flow performance of our business parks. The GAAP measure most directly comparable to cash NOI is net income.
Adjusted Cost of Operations — Adjusted cost of operations represents cost of operations, excluding stock compensation expense for employees whose compensation expense is recorded in cost of operations, which can vary significantly period to period based upon the performance of the company. The GAAP measure most directly comparable to adjusted cost of operations is cost of operations.
Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) — EBITDAre is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and is often utilized to evaluate the performance of real estate companies. EBITDAre is calculated as GAAP net income before interest, depreciation and amortization and adjusted to exclude gains or losses from sales of depreciable real estate assets. We believe our presentation of EBITDAre assists investors and analysts in evaluating the operating performance of our business activities, including the impact of general and administrative expenses, and without the impact from gains or losses from sales of depreciable real estate assets. The GAAP measure most directly comparable EBITDAre is net income.
Funds from Operations (“FFO”) and FFO per share — FFO and FFO per share arenon-GAAP measures defined by NAREIT and are considered helpful measures of REIT performance by REITs and many REIT analysts. FFO represents GAAP net income before real estate depreciation and amortization expense, gains or losses on sales of operating properties and land and impairment charges on real estate assets, which are excluded because it does not accurately reflect changes in the value of our business parks. FFO per share represents FFO allocable to common and dilutive shares, divided by aggregate common and dilutive shares. The GAAP measure most directly comparable to FFO and FFO per share are net income and earnings per share, respectively.
Core FFO and Core FFO per share— Core FFO represents FFO excluding the net impact of (i) income allocated to preferred shareholders to the extent redemption value exceeds the related carrying value and (ii) nonrecurring income or expense items. Core FFO per share represents Core FFO allocable to common and dilutive shares divided by the weighted average common and dilutive shares. We believe our presentation of Core FFO and Core FFO per share assists investors and analysts in analyzing and comparing our operating and financial performance between reporting periods. The GAAP measures most directly comparable to Core FFO and Core FFO per share are net income and earnings per share, respectively.
Funds Available for Distribution (“FAD”) — FAD is anon-GAAP measure that represents Core FFO adjusted to (a) deduct recurring capital improvements that maintain our real estate condition, tenant improvements and lease commissions and (b) eliminate certainnon-cash income or expenses such as straight-line rent andnon-cash stock compensation expense. We believe our presentation of FAD assists investors and analysts in analyzing and comparing our operating and financial performance between reporting periods. FAD is not a substitute for GAAP net cash flow in evaluating our liquidity or ability to pay dividends, because they exclude investing and financing activities presented on our statements of cash flows. The GAAP measure most directly comparable to FAD is operating cash flow from our statements of cash flows.
3
March 31, 2019 | December 31, 2018 | |||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 39,356 | $ | 37,379 | (a) | |||||||
Real estate facilities, at cost | ||||||||||||
Land | 816,656 | 816,656 | ||||||||||
Buildings and improvements | 2,382,274 | 2,374,943 | ||||||||||
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3,198,930 | 3,191,599 | |||||||||||
Accumulated depreciation | (1,265,133) | (1,241,116) | ||||||||||
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1,933,797 | 1,950,483 | (b) | ||||||||||
Land and building held for development | 31,273 | 30,848 | ||||||||||
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1,965,070 | 1,981,331 | |||||||||||
Rent receivable, net | 3,428 | 1,403 | (c) | |||||||||
Deferred rent receivable, net | 33,953 | 33,308 | ||||||||||
Other assets | 14,812 | 15,173 | (d) | |||||||||
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Total assets | $ | 2,056,619 | $ | 2,068,594 | ||||||||
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LIABILITIES AND EQUITY | ||||||||||||
Accrued and other liabilities | $ | 80,344 | $ | 85,141 | (e) | |||||||
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Total liabilities | 80,344 | 85,141 | ||||||||||
Equity | ||||||||||||
PS Business Parks, Inc.’s shareholders’ equity: | ||||||||||||
Preferred stock | 959,750 | 959,750 | ||||||||||
Common stock | 274 | 274 | ||||||||||
Paid-in capital | 732,955 | 736,131 | (f) | |||||||||
Accumulated earnings | 67,059 | 69,207 | (g) | |||||||||
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Total PS Business Parks, Inc.’s shareholders’ equity | 1,760,038 | 1,765,362 | ||||||||||
Noncontrolling interests | 216,237 | 218,091 | ||||||||||
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Total equity | 1,976,275 | 1,983,453 | ||||||||||
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Total liabilities and equity | $ | 2,056,619 | $ | 2,068,594 | ||||||||
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4
(a) | Change in cash and cash equivalents | |||||||||||||
Beginning cash balance at December 31, 2018 | $ | 37,379 | ||||||||||||
Net cash provided by operating activities | 64,755 | |||||||||||||
Net cash used in investing activities | (7,976) | |||||||||||||
Net cash used in financing activities | (54,802) | |||||||||||||
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Ending cash balance at March 31, 2019 | $ | 39,356 | ||||||||||||
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(b) | Change in real estate facilities | |||||||||||||
Beginning balance at December 31, 2018 | $ | 1,950,483 | ||||||||||||
Recurring capital improvements | 1,180 | |||||||||||||
Tenant improvements, gross | 3,653 | |||||||||||||
Capitalized lease commissions | 1,956 | |||||||||||||
Nonrecurring capital improvements | 864 | |||||||||||||
Depreciation and amortization | (24,339) | |||||||||||||
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Ending balance at March 31, 2019 | $ | 1,933,797 | ||||||||||||
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Increase | ||||||||||||||
(c) | Change in rent receivable | March 31, 2019 | December 31, 2018 | (Decrease) | ||||||||||
Non-government customers | $ | 2,913 | $ | 1,040 | $ | 1,873 | ||||||||
U.S. Government customers | 915 | 763 | 152 | |||||||||||
Allowance for doubtful accounts | (400) | (400) | - | |||||||||||
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$ | 3,428 | $ | 1,403 | $ | 2,025 | |||||||||
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Increase | ||||||||||||||
(d) | Change in other assets | March 31, 2019 | December 31, 2018 | (Decrease) | ||||||||||
Lease intangible assets, net | $ | 9,508 | $ | 8,671 | $ | 837 | ||||||||
Prepaid property taxes and insurance | 1,667 | 3,381 | (1,714) | |||||||||||
Other | 3,637 | 3,121 | 516 | |||||||||||
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$ | 14,812 | $ | 15,173 | $ | (361) | |||||||||
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Increase | ||||||||||||||
(e) | Change in accrued and other liabilities | March 31, 2019 | December 31, 2018 | (Decrease) | ||||||||||
Customer security deposits | $ | 38,323 | $ | 37,557 | $ | 766 | ||||||||
Accrued property taxes | 11,520 | 10,454 | 1,066 | |||||||||||
Customer prepaid rent | 12,844 | 16,830 | (3,986) | |||||||||||
Lease intangible liabilities, net | 9,199 | 7,870 | 1,329 | |||||||||||
Other | 8,458 | 12,430 | (3,972) | |||||||||||
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$ | 80,344 | $ | 85,141 | $ | (4,797) | |||||||||
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(f) | Change inpaid-in capital | |||||||||||||
Beginningpaid-in capital | $ | 736,131 | ||||||||||||
Exercise of stock options | 405 | |||||||||||||
Stock compensation expense, net | 703 | |||||||||||||
Cash paid for taxes in lieu of shares upon vesting | (5,494) | |||||||||||||
Adjustment to reflect noncontrolling interests | 1,210 | |||||||||||||
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Ending paid in capital | $ | 732,955 | ||||||||||||
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(g) | Change in accumulated earnings | |||||||||||||
Beginning accumulated earnings | $ | 69,207 | ||||||||||||
Net income | 39,548 | |||||||||||||
Distributions to preferred shareholders | (12,959) | |||||||||||||
Distributions to common shareholders | (28,737) | |||||||||||||
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Ending accumulated earnings | $ | 67,059 | ||||||||||||
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5
For The Three Months Ended | ||||||||||||
Ended March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Rental income | $ | 107,825 | $ | 103,759 | (a) | |||||||
Expenses | ||||||||||||
Cost of operations(1) | 33,593 | 32,456 | (b) | |||||||||
Depreciation and amortization | 24,875 | 23,882 | ||||||||||
General and administrative(1) | 3,233 | 2,850 | (c) | |||||||||
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Total operating expenses | 61,701 | 59,188 | ||||||||||
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Interest and other income | 618 | 284 | (d) | |||||||||
Interest and other expense | (167) | (165) | (e) | |||||||||
Gain on sale of real estate facilities | - | 26,835 | ||||||||||
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Net income | 46,575 | 71,525 | ||||||||||
Allocation to noncontrolling interests | (7,027) | (11,900) | ||||||||||
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Net income allocable to PS Business Parks, Inc. | 39,548 | 59,625 | ||||||||||
Allocation to preferred shareholders | (12,959) | (13,003) | ||||||||||
Allocation to restricted stock unit holders | (268) | (574) | ||||||||||
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Net income allocable to common shareholders | $ | 26,321 | $ | 46,048 | ||||||||
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Net income per common share | ||||||||||||
Basic | $ | 0.96 | $ | 1.69 | ||||||||
Diluted | $ | 0.96 | $ | 1.69 | ||||||||
Weighted average common shares outstanding | ||||||||||||
Basic | 27,373 | 27,267 | ||||||||||
Diluted | 27,479 | 27,318 |
(1) | Beginning January 1, 2019, the Company has recorded our divisional vice presidents’ compensation costs within general and administrative expense as we determined that the nature of these individuals’ responsibilities is more consistent with corporate oversight as opposed to direct property operations. As a result of this change, we have reclassified divisional vice presidents’ compensation costs totaling $544,000 for the three months ended March 31, 2018, consisting of $385,000 of compensation costs and $159,000 of stock compensation expense, from cost of operations into general and administrative expenses on our consolidated statements of income in the three months ended March 31, 2018 in order to conform to the current period presentation. |
6
For The Three Months Ended | Increase | |||||||||||||
(a) | Rental income: | March 31, 2019 | March 31, 2018 | (Decrease) | ||||||||||
Same Park | $ | 101,997 | $ | 97,466 | $ | 4,531 | ||||||||
Same Parknon-cash revenue(1) | 849 | 1,164 | (315) | |||||||||||
Non-Same Park | 2,318 | - | 2,318 | |||||||||||
Non-Same Parknon-cash revenue(1) | 163 | - | 163 | |||||||||||
Multifamily | 2,497 | 1,424 | 1,073 | |||||||||||
Multifamilynon-cash revenue(1) | 1 | - | 1 | |||||||||||
Revenue from assets sold | - | 3,705 | (3,705) | |||||||||||
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$ | 107,825 | $ | 103,759 | $ | 4,066 | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(b) | Cost of operations: | March 31, 2019 | March 31, 2018 | (Decrease) | ||||||||||
Same Park | $ | 31,071 | $ | 29,838 | $ | 1,233 | ||||||||
Same Parknon-cash adjustments(2) | 293 | 358 | (65) | |||||||||||
Non-Same Park | 1,145 | - | 1,145 | |||||||||||
Non-Same Parknon-cash adjustments(2) | 13 | - | 13 | |||||||||||
Multifamily | 1,071 | 997 | 74 | |||||||||||
Expenses from assets sold | - | 1,263 | (1,263) | |||||||||||
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$ | 33,593 | $ | 32,456 | $ | 1,137 | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(c) | General and administrative expenses: | March 31, 2019 | March 31, 2018 | (Decrease) | ||||||||||
Compensation expense | $ | 1,683 | $ | 1,330 | $ | 353 | ||||||||
Stock compensation expense | 561 | 637 | (76) | |||||||||||
Professional fees and other | 989 | 883 | 106 | |||||||||||
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$ | 3,233 | $ | 2,850 | $ | 383 | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(d) | Interest and other income: | March 31, 2019 | March 31, 2018 | (Decrease) | ||||||||||
Management fee income | $ | 78 | $ | 127 | $ | (49) | ||||||||
Interest income | 326 | 67 | 259 | |||||||||||
Other income | 214 | 90 | 124 | |||||||||||
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$ | 618 | $ | 284 | $ | 334 | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(e) | Interest and other expense: | March 31, 2019 | March 31, 2018 | (Decrease) | ||||||||||
Credit facility | $ | - | $ | (13) | $ | (13) | ||||||||
Facilities fees & other charges | (167) | (152) | 15 | |||||||||||
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$ | (167) | $ | (165) | $ | 2 | |||||||||
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(1) | Non-cash revenue adjustments represent straight-line rent, amortization of above and below market rents, net, and amortization of lease incentives and tenant improvement reimbursements. |
(2) | Non-cash cost of operations adjustments represent stock compensation expense attributable to employees whose compensation expense is recorded in costs of operations. |
7
NET OPERATING INCOME
For The Three Months Ended March 31, | ||||||||||||
2019 | 2018 | % Change | ||||||||||
Rental income | ||||||||||||
Same Park(1) | $ | 102,846 | $ | 98,630 | 4.3% | |||||||
Non-Same Park(2) | 2,481 | - | 100.0% | |||||||||
Multifamily | 2,498 | 1,424 | 75.4% | |||||||||
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Total rental income | 107,825 | 100,054 | 7.8% | |||||||||
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Adjusted cost of operations(3) | ||||||||||||
Same Park(1) | 31,071 | 29,838 | 4.1% | |||||||||
Non-Same Park(2) | 1,145 | - | 100.0% | |||||||||
Multifamily | 1,071 | 997 | 7.4% | |||||||||
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Total adjusted cost of operations | 33,287 | 30,835 | 8.0% | |||||||||
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Net operating income | ||||||||||||
Same Park(1) | 71,775 | 68,792 | 4.3% | |||||||||
Non-Same Park(2) | 1,336 | - | 100.0% | |||||||||
Multifamily | 1,427 | 427 | 234.2% | |||||||||
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Total net operating income | $ | 74,538 | $ | 69,219 | 7.7% | |||||||
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CASH NET OPERATING INCOME |
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For The Three Months Ended March 31, | ||||||||||||
2019 | 2018 | % Change | ||||||||||
Cash rental income(4) | ||||||||||||
Same Park(1) | $ | 101,997 | $ | 97,466 | 4.6% | |||||||
Non-Same Park(2) | 2,318 | - | 100.0% | |||||||||
Multifamily | 2,497 | 1,424 | 75.4% | |||||||||
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Total cash rental income | 106,812 | 98,890 | 8.0% | |||||||||
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Adjusted cost of operations(3) | ||||||||||||
Same Park(1) | 31,071 | 29,838 | 4.1% | |||||||||
Non-Same Park(2) | 1,145 | - | 100.0% | |||||||||
Multifamily | 1,071 | 997 | 7.4% | |||||||||
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Total adjusted cost of operations | 33,287 | 30,835 | 8.0% | |||||||||
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Cash net operating income | ||||||||||||
Same Park(1) | 70,926 | 67,628 | 4.9% | |||||||||
Non-Same Park(2) | 1,173 | - | 100.0% | |||||||||
Multifamily | 1,426 | 427 | 234.0% | |||||||||
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Total cash net operating income | $ | 73,525 | $ | 68,055 | 8.0% | |||||||
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EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) |
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For The Three Months Ended March 31, | ||||||||||||
2019 | 2018 | % Change | ||||||||||
Net income | $ | 46,575 | $ | 71,525 | (34.9%) | |||||||
Net interest (income) expense | (190) | 73 | (360.3%) | |||||||||
Depreciation and amortization | 24,875 | 23,882 | 4.2% | |||||||||
Gain on sale of real estate facilities and development rights | - | (26,835) | (100.0%) | |||||||||
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EBITDAre | $ | 71,260 | $ | 68,645 | 3.8% | |||||||
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(1) | Same Park includes assets acquired prior to January 1, 2017. |
(2) | Non-Same Park reflects assets acquired on or subsequent to January 1, 2017. |
(3) | Adjusted cost of operations represents cost of operations excluding stock compensation expense for employees whose compensation expense is recorded in cost of operations. Refer to the “Forward-Looking Statement andNon-GAAP Disclosures” for more information on page 3. Beginning January 1, 2019, the Company has recorded our divisional vice presidents’ compensation costs within general and administrative expense as we determined that the nature of these individuals’ responsibilities is more consistent with corporate oversight as opposed to direct property operations. As a result of this change, we have reclassified divisional vice presidents’ compensation costs totaling $385,000 for the three months ended March 31, 2018 from adjusted cost of operations into general and administrative expenses in order to conform to the current period presentation.Non-cash compensation expense for our divisional vice presidents, which totaled $159,000 for the three months ended March 31, 2018, had previously been excluded from adjusted cost of operations. |
(4) | Cash rental income excludesnon-cash adjustments, specifically straight-line rent, amortization of above and below market rents, net, amortization of lease incentives and tenant improvement reimbursements. |
8
PROPERTY INFORMATION |
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For The Three Months Ended March 31, | ||||||||||||
2019 | 2018 | % Change | ||||||||||
Total Portfolio (1) | ||||||||||||
Total rentable square footage at period end | 28,186,000 | 27,129,000 | 3.9% | |||||||||
Weighted average occupancy | 93.9% | 94.2% | (0.3%) | |||||||||
Period end occupancy | 94.0% | 94.4% | (0.4%) | |||||||||
Annualized realized rent per occupied sq. ft. (2) | $ | 15.91 | $ | 15.43 | 3.1% | |||||||
RevPAF (3) | $ | 14.95 | $ | 14.54 | 2.8% | |||||||
Same Park Portfolio(4) | ||||||||||||
Total rentable square footage at period end | 27,129,000 | 27,129,000 | - | |||||||||
Weighted average occupancy | 94.5% | 94.2% | 0.3% | |||||||||
Period end occupancy | 94.6% | 94.4% | 0.2% | |||||||||
Annualized realized rent per occupied sq. ft. (2) | $ | 16.04 | $ | 15.43 | 4.0% | |||||||
RevPAF (3) | $ | 15.16 | $ | 14.54 | 4.3% | |||||||
Non-Same Park Portfolio(5) | ||||||||||||
Total rentable square footage at period end | 1,057,000 | - | 100.0% | |||||||||
Weighted average occupancy | 78.6% | - | 100.0% | |||||||||
Period end occupancy | 79.9% | - | 100.0% | |||||||||
Annualized realized rent per occupied sq. ft. (2) | $ | 11.94 | $ | - | 100.0% | |||||||
RevPAF (3) | $ | 9.39 | $ | - | 100.0% | |||||||
Multifamily Portfolio | ||||||||||||
Number of units | 395 | 395 | - | |||||||||
Period end occupancy | 94.9% | 61.5% | 54.3% |
(1) | Operating metrics from our multifamily asset are excluded from the total portfolio operating metrics. |
(2) | Annualized realized rent per occupied square foot represents the annualized revenue earned per occupied square foot. |
(3) | RevPAF represents the annualized revenue earned per total weighted average available square foot. |
(4) | Same Park includes assets acquired prior to January 1, 2017. |
(5) | Non-Same Park reflects assets acquired on or subsequent to January 1, 2017. |
9
For the Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Net income allocable to common shareholders | $ | 26,321 | $ | 46,048 | ||||
Adjustments | ||||||||
Gain on sale of real estate facilities | - | (26,835) | ||||||
Depreciation and amortization | 24,875 | 23,882 | ||||||
Net income allocable to noncontrolling interests | 7,027 | 11,900 | ||||||
Net income allocable to restricted stock unit holders | 268 | 574 | ||||||
FFO (income) loss allocated to joint venture partner | (29) | 13 | ||||||
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FFO allocable to common and dilutive shares | 58,462 | 55,582 | ||||||
Core FFO allocable to common and dilutive shares | 58,462 | 55,582 | ||||||
Adjustments | ||||||||
Recurring capital improvements | (1,180) | (1,102) | ||||||
Tenant improvements | (3,551) | (3,886) | ||||||
Capitalized lease commissions | (1,956) | (1,919) | ||||||
Total recurring capital expenditures (assets sold) | - | (96) | ||||||
Total recurring capital expenditures (multifamily) | - | (7) | ||||||
Straight-line rent | (657) | (735) | ||||||
In-place lease adjustment | 21 | 7 | ||||||
Tenant improvement reimbursement amortization, net of lease incentive amortization | (379) | (515) | ||||||
Stock compensation expense | 971 | 1,110 | ||||||
Cash paid for taxes in lieu of shares upon vesting of restricted stock units | (5,494) | (4,529) | ||||||
|
|
|
| |||||
FAD allocable to common and dilutive shares | 46,237 | 43,910 | ||||||
Distributions to common shareholders | (28,737) | (23,171) | ||||||
Distributions to common operating partnership unit holders | (7,671) | (6,210) | ||||||
Distributions to restricted stock unit holders | (268) | (295) | ||||||
|
|
|
| |||||
Free cash available after fixed charges | 9,561 | 14,234 | ||||||
Non-recurring property renovations(1) | (864) | (32) | ||||||
Investment in Highgate(2) | - | (2,760) | ||||||
Investment in The Mile redevelopment(3) | (425) | (146) | ||||||
|
|
|
| |||||
Retained cash | $ | 8,272 | $ | 11,296 | ||||
|
|
|
| |||||
Weighted average outstanding: | ||||||||
Common shares | 27,373 | 27,267 | ||||||
Operating partnership units | 7,305 | 7,305 | ||||||
Restricted stock units | 140 | 246 | ||||||
Common share equivalents | 106 | 51 | ||||||
|
|
|
| |||||
Total common and dilutive shares | 34,924 | 34,869 | ||||||
|
|
|
| |||||
FFO per common and dilutive share | $ | 1.67 | $ | 1.59 | ||||
FAD distribution payout ratio(4) | 79.3% | 67.6% |
(1) | Non-recurring property renovations represents renovations that substantially enhance the value of a property. |
(2) | Represents development costs related to a395-unit apartment complex that commenced operations during 2017. |
(3) | Represents predevelopment costs related to a multifamily project on a large contiguous block of real estate located in Tysons, Virginia. |
(4) | FAD distribution payout ratio is equal to total distributions to common shareholders, unit holders and restricted stock unit holders divided by FAD during the same reporting periods. |
10
11
For the Three Months Ended | Cost per Weighted | |||||||
March 31, 2019 | Average Square Foot | |||||||
Commercial recurring capital expenditures(1) | ||||||||
Capital improvements | $ | 1,180 | $ | 0.04 | ||||
Tenant improvements | 3,551 | 0.13 | ||||||
Lease commissions | 1,956 | 0.07 | ||||||
|
|
|
| |||||
Total commercial recurring capital expenditures | 6,687 | $ | 0.24 | |||||
Non-recurring property renovations(2) | 864 | |||||||
|
| |||||||
Total capital expenditures (excluding multifamily) | 7,551 | |||||||
Multifamily capital expenditures | - | |||||||
|
| |||||||
Total capital expenditures | $ | 7,551 | ||||||
|
|
(1) | The Company defines “recurring capital expenditures” as capitalized costs necessary to continue to operate the property at its current economic value. Capital improvements in excess of $2,000 with a useful life greater than 24 months are capitalized. Lease transaction costs (tenant improvements and leasing commissions) of $1,000 or more for leases with terms greater than 12 months are capitalized.Lease-up costs on acquired properties are also included in recurring capital expenditures. |
(2) | Non-recurring property renovations represents renovations that substantially enhance the value of a property. |
12
As of March 31, 2019 | As of December 31, 2018 | |||||||||||||||||||||||||||
% of Total | % of Total | |||||||||||||||||||||||||||
Market | WTD Average | Market | WTD Average | |||||||||||||||||||||||||
Total | Capitalization | Rate | Total | Capitalization | Rate | |||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Unsecured Debt: | ||||||||||||||||||||||||||||
$250.0 million unsecured credit facility (LIBOR + 0.825%) | $ | - | - | - | $ | - | - | - | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total unsecured debt | - | - | - | - | - | - | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Preferred Equity: | ||||||||||||||||||||||||||||
5.75% Series U preferred stock (9,200,000 depositary shares outstanding) callable 9/14/17 | 230,000 | 3.6% | 230,000 | 4.2% | ||||||||||||||||||||||||
5.70% Series V preferred stock (4,400,000 depositary shares outstanding) callable 3/14/18 | 110,000 | 1.7% | 110,000 | 2.0% | ||||||||||||||||||||||||
5.20% Series W preferred stock (7,590,000 depositary shares outstanding) callable 10/20/21 | 189,750 | 3.0% | 189,750 | 3.4% | ||||||||||||||||||||||||
5.25% Series X preferred stock (9,200,000 depositary shares outstanding) callable 9/21/22 | 230,000 | 3.6% | 230,000 | 4.2% | ||||||||||||||||||||||||
5.20% Series Y preferred stock (8,000,000 depositary shares outstanding) callable 12/7/22 | 200,000 | 3.1% | 200,000 | 3.6% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total preferred equity | 959,750 | 15.0% | 5.40% | 959,750 | 17.4% | 5.40% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total debt and preferred equity | 959,750 | 15.0% | 5.40% | 959,750 | 17.4% | 5.40% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Common stock (27,417,909and 27,362,101 shares outstanding as of March 31, 2019 and December 31, 2018, respectively)(1) | 4,299,951 | 67.1% | 3,584,435 | 65.2% | ||||||||||||||||||||||||
Common operating partnership units (7,305,355 units outstanding as of March 31, 2019 and December 31,2018) (1) | 1,145,699 | 17.9% | 957,002 | 17.4% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total common equity | 5,445,650 | 85.0% | 4,541,437 | 82.6% | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total market capitalization | $ | 6,405,400 | 100.0% | $ | 5,501,187 | 100.0% | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Ratio of Debt and Preferred Equity to EBITDAre(2) | 3.4x | 3.5x | ||||||||||||||||||||||||||
For the periods ended | ||||||||||||||||||||||||||||
Interest expense and related expenses(3) | $ | 136 | $ | 555 | ||||||||||||||||||||||||
Preferred distributions | 12,959 | 51,880 | ||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Total fixed charges and preferred distributions | $ | 13,095 | $ | 52,435 | ||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||
Ratio of EBITDAre to fixed charges and preferred distributions | 5.4x | 5.3x | ||||||||||||||||||||||||||
Ratio of FFO to fixed charges and preferred distributions | 5.5x | 5.3x |
(1) | Total common equity is calculated as the total number of common stock and operating partnership units outstanding multiplied by the Company’s closing share price at the end of each reporting period. Closing share prices on March 31, 2019 and December 31, 2018 were $156.83 and $131.00, respectively. |
(2) | Ratio of debt and preferred equity to EBITDAre is calculated as total debt and preferred equity divided by EBITDAre. Ratio of debt and preferred equity to EBITDAre as of March 31, 2019 is calculated using annualized EBITDAre for the three months ended March 31, 2019. |
(3) | Interest expense and related expenses includes facility fees. |
13
Industry Concentration as of March 31, 2019 |
| |||||||||||
Percentage of | ||||||||||||
Total Rental Income | ||||||||||||
Business services | 19.2% | |||||||||||
Warehouse, distribution, transportation and logistics | 11.4% | |||||||||||
Computer hardware, software and related services | 11.1% | |||||||||||
Health services | 9.9% | |||||||||||
Retail, food, and automotive | 7.5% | |||||||||||
Engineering and construction | 7.3% | |||||||||||
Government | 7.0% | |||||||||||
Insurance and financial services | 3.6% | |||||||||||
Electronics | 3.1% | |||||||||||
Home furnishings | 2.6% | |||||||||||
Aerospace/defense products and services | 2.0% | |||||||||||
Communications | 1.9% | |||||||||||
Educational services | 1.0% | |||||||||||
Other | 12.4% | |||||||||||
|
| |||||||||||
Total | 100.0% | |||||||||||
|
| |||||||||||
Top 10 Customers by Total Annual Rental Income as of March 31, 2019 |
| |||||||||||
Square | Annualized | Percentage of Total | ||||||||||
Customer | Footage | Rental Income (1) | Annualized Rental Income | |||||||||
US Government | 681,000 | $ | 16,066 | 3.8% | ||||||||
Luminex Corp | 199,000 | 3,966 | 0.9% | |||||||||
Lockheed Martin Corp | 143,000 | 2,639 | 0.6% | |||||||||
KZ Kitchen Cabinet & Stone | 191,000 | 2,388 | 0.6% | |||||||||
CentralColo, LLC | 96,000 | 2,293 | 0.5% | |||||||||
Applied Materials, Inc. | 162,000 | 2,250 | 0.5% | |||||||||
Carbel, LLC | 207,000 | 2,065 | 0.5% | |||||||||
Investorplace Media, LLC | 46,000 | 1,937 | 0.5% | |||||||||
Keeco, L.L.C. | 460,000 | 1,913 | 0.5% | |||||||||
ECS Federal, LLC | 100,000 | 1,785 | 0.4% | |||||||||
|
|
|
|
|
| |||||||
Total | 2,285,000 | $ | 37,302 | 8.8% | ||||||||
|
|
|
|
|
| |||||||
Tenant Composition as of March 31, 2019 |
| |||||||||||
Average Tenant Size | ||||||||||||
Number | (in square feet) | |||||||||||
of Tenants | Average square footage | |||||||||||
Large Tenants(2) | 1,510 | 12,364 | ||||||||||
Small Tenants(3) | 3,526 | 2,222 | ||||||||||
|
| |||||||||||
Total Portfolio | 5,036 | 5,263 | ||||||||||
|
|
(1) | For leases expiring within one year, annualized rental income includes only the income to be received under the existing lease from April 1, 2019 through the respective date of expiration. |
(2) | Large tenant portfolio consists of properties with average leases greater than or equal to 5,000 square feet. |
(3) | Small tenant portfolio consists of properties with average leases less than 5,000 square feet. |
14
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2019 | March 31, 2018 | |||||||||||||||||||||||||||||||
Flex | Office | Industrial | Total | Flex | Office | Industrial | Total | |||||||||||||||||||||||||
Cash rental income(1) | ||||||||||||||||||||||||||||||||
Northern California | $ | 2,467 | $ | 2,992 | $ | 20,552 | $ | 26,011 | $ | 2,343 | $ | 2,758 | $ | 19,043 | $ | 24,144 | ||||||||||||||||
Southern California | 4,638 | 183 | 8,790 | 13,611 | 4,416 | 185 | 8,320 | 12,921 | ||||||||||||||||||||||||
Dallas | 5,130 | — | 3,050 | 8,180 | 4,830 | — | 2,810 | 7,640 | ||||||||||||||||||||||||
Austin | 5,408 | — | 2,061 | 7,469 | 5,432 | — | 1,984 | 7,416 | ||||||||||||||||||||||||
Northern Virginia | 6,326 | 10,582 | 1,793 | 18,701 | 6,247 | 10,296 | 1,757 | 18,300 | ||||||||||||||||||||||||
South Florida | 456 | 1 | 10,443 | 10,900 | 501 | 45 | 9,940 | 10,486 | ||||||||||||||||||||||||
Suburban Maryland | 3,394 | 8,094 | 1,197 | 12,685 | 3,217 | 7,932 | 1,141 | 12,290 | ||||||||||||||||||||||||
Seattle | 1,602 | 181 | 2,657 | 4,440 | 1,454 | 180 | 2,635 | 4,269 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | 29,421 | 22,033 | 50,543 | 101,997 | 28,440 | 21,396 | 47,630 | 97,466 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Adjusted cost of operations(2) | ||||||||||||||||||||||||||||||||
Northern California | 679 | 770 | 4,595 | 6,044 | 648 | 733 | 4,310 | 5,691 | ||||||||||||||||||||||||
Southern California | 1,251 | 68 | 2,227 | 3,546 | 1,156 | 65 | 1,997 | 3,218 | ||||||||||||||||||||||||
Dallas | 1,965 | — | 947 | 2,912 | 1,784 | — | 969 | 2,753 | ||||||||||||||||||||||||
Austin | 2,006 | — | 718 | 2,724 | 1,903 | — | 656 | 2,559 | ||||||||||||||||||||||||
Northern Virginia | 2,027 | 4,439 | 616 | 7,082 | 1,977 | 4,390 | 564 | 6,931 | ||||||||||||||||||||||||
South Florida | 150 | 22 | 2,711 | 2,883 | 127 | 10 | 2,740 | 2,877 | ||||||||||||||||||||||||
Suburban Maryland | 1,081 | 3,383 | 381 | 4,845 | 1,006 | 3,373 | 367 | 4,746 | ||||||||||||||||||||||||
Seattle | 367 | 49 | 619 | 1,035 | 350 | 52 | 661 | 1,063 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | 9,526 | 8,731 | 12,814 | 31,071 | 8,951 | 8,623 | 12,264 | 29,838 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Cash NOI | ||||||||||||||||||||||||||||||||
Northern California | 1,788 | 2,222 | 15,957 | 19,967 | 1,695 | 2,025 | 14,733 | 18,453 | ||||||||||||||||||||||||
Southern California | 3,387 | 115 | 6,563 | 10,065 | 3,260 | 120 | 6,323 | 9,703 | ||||||||||||||||||||||||
Dallas | 3,165 | — | 2,103 | 5,268 | 3,046 | — | 1,841 | 4,887 | ||||||||||||||||||||||||
Austin | 3,402 | — | 1,343 | 4,745 | 3,529 | — | 1,328 | 4,857 | ||||||||||||||||||||||||
Northern Virginia | 4,299 | 6,143 | 1,177 | 11,619 | 4,270 | 5,906 | 1,193 | 11,369 | ||||||||||||||||||||||||
South Florida | 306 | (21) | 7,732 | 8,017 | 374 | 35 | 7,200 | 7,609 | ||||||||||||||||||||||||
Suburban Maryland | 2,313 | 4,711 | 816 | 7,840 | 2,211 | 4,559 | 774 | 7,544 | ||||||||||||||||||||||||
Seattle | 1,235 | 132 | 2,038 | 3,405 | 1,104 | 128 | 1,974 | 3,206 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | $ | 19,895 | $ | 13,302 | $ | 37,729 | $ | 70,926 | $ | 19,489 | $ | 12,773 | $ | 35,366 | $ | 67,628 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Cash rental income excludesnon-cash adjustments, specifically straight-line rent, amortization of above and below market rents, net, amortization of lease incentives and tenant improvement reimbursements. |
(2) | Adjusted cost of operations represents cost of operations excluding stock compensation expense related to employees whose compensation expense is included in costs of operations. |
15
For the Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2019 | March 31, 2018 | |||||||||||||||||||||||||||||||
Flex | Office | Industrial | Total | Flex | Office | Industrial | Total | |||||||||||||||||||||||||
Rental Income | ||||||||||||||||||||||||||||||||
Northern California | $ | 2,447 | $ | 2,987 | $ | 20,622 | $ | 26,056 | $ | 2,342 | $ | 2,805 | $ | 19,088 | $ | 24,235 | ||||||||||||||||
Southern California | 4,655 | 184 | 8,768 | 13,607 | 4,401 | 183 | 8,396 | 12,980 | ||||||||||||||||||||||||
Dallas | 5,226 | — | 3,094 | 8,320 | 4,894 | — | 2,856 | 7,750 | ||||||||||||||||||||||||
Austin | 5,520 | — | 2,108 | 7,628 | 5,457 | — | 1,979 | 7,436 | ||||||||||||||||||||||||
Northern Virginia | 6,166 | 10,808 | 1,892 | 18,866 | 6,267 | 10,753 | 1,860 | 18,880 | ||||||||||||||||||||||||
South Florida | 468 | 20 | 10,403 | 10,891 | 478 | 45 | 10,054 | 10,577 | ||||||||||||||||||||||||
Suburban Maryland | 3,466 | 8,448 | 1,170 | 13,084 | 3,290 | 8,108 | 1,139 | 12,537 | ||||||||||||||||||||||||
Seattle | 1,612 | 179 | 2,603 | 4,394 | 1,456 | 180 | 2,599 | 4,235 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | 29,560 | 22,626 | 50,660 | 102,846 | 28,585 | 22,074 | 47,971 | 98,630 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Adjusted cost of operations(1) | ||||||||||||||||||||||||||||||||
Northern California | 679 | 770 | 4,595 | 6,044 | 648 | 733 | 4,310 | 5,691 | ||||||||||||||||||||||||
Southern California | 1,251 | 68 | 2,227 | 3,546 | 1,156 | 65 | 1,997 | 3,218 | ||||||||||||||||||||||||
Dallas | 1,965 | — | 947 | 2,912 | 1,784 | — | 969 | 2,753 | ||||||||||||||||||||||||
Austin | 2,006 | — | 718 | 2,724 | 1,903 | — | 656 | 2,559 | ||||||||||||||||||||||||
Northern Virginia | 2,027 | 4,439 | 616 | 7,082 | 1,977 | 4,390 | 564 | 6,931 | ||||||||||||||||||||||||
South Florida | 150 | 22 | 2,711 | 2,883 | 127 | 10 | 2,740 | 2,877 | ||||||||||||||||||||||||
Suburban Maryland | 1,081 | 3,383 | 381 | 4,845 | 1,006 | 3,373 | 367 | 4,746 | ||||||||||||||||||||||||
Seattle | 367 | 49 | 619 | 1,035 | 350 | 52 | 661 | 1,063 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | 9,526 | 8,731 | 12,814 | 31,071 | 8,951 | 8,623 | 12,264 | 29,838 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
NOI | ||||||||||||||||||||||||||||||||
Northern California | 1,768 | 2,217 | 16,027 | 20,012 | 1,694 | 2,072 | 14,778 | 18,544 | ||||||||||||||||||||||||
Southern California | 3,404 | 116 | 6,541 | 10,061 | 3,245 | 118 | 6,399 | 9,762 | ||||||||||||||||||||||||
Dallas | 3,261 | — | 2,147 | 5,408 | 3,110 | — | 1,887 | 4,997 | ||||||||||||||||||||||||
Austin | 3,514 | — | 1,390 | 4,904 | 3,554 | — | 1,323 | 4,877 | ||||||||||||||||||||||||
Northern Virginia | 4,139 | 6,369 | 1,276 | 11,784 | 4,290 | 6,363 | 1,296 | 11,949 | ||||||||||||||||||||||||
South Florida | 318 | (2) | 7,692 | 8,008 | 351 | 35 | 7,314 | 7,700 | ||||||||||||||||||||||||
Suburban Maryland | 2,385 | 5,065 | 789 | 8,239 | 2,284 | 4,735 | 772 | 7,791 | ||||||||||||||||||||||||
Seattle | 1,245 | 130 | 1,984 | 3,359 | 1,106 | 128 | 1,938 | 3,172 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | $ | 20,034 | $ | 13,895 | $ | 37,846 | $ | 71,775 | $ | 19,634 | $ | 13,451 | $ | 35,707 | $ | 68,792 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Adjusted cost of operations represents cost of operations excluding stock compensation expense related to employees whose compensation expense is included in cost of operations. Refer to the “Forward-Looking Statement andNon-GAAP Disclosures” for more information on page 3. Beginning January 1, 2019, the Company has recorded our divisional vice presidents’ compensation costs within general and administrative expense as we determined that the nature of these individuals’ responsibilities is more consistent with corporate oversight as opposed to direct property operations. As a result of this change, we have reclassified divisional vice presidents’ compensation costs totaling $385,000 for the three months ended March 31, 2018 from adjusted cost of operations into general and administrative expenses in order to conform to the current period presentation.Non-cash compensation expense for our divisional vice presidents, which totaled $159,000 for the three months ended March 31, 2018, had previously been excluded from adjusted cost of operations. |
16
Realized Revenue per Occupied Square Foot(1) | ||||||||||
For the Three Months | ||||||||||
Ended March 31, | ||||||||||
Region | 2019 | 2018 | % Change | |||||||
Northern California | $ | 14.90 | $ | 13.72 | 8.6% | |||||
Southern California | $ | 17.34 | $ | 16.24 | 6.8% | |||||
Dallas | $ | 12.47 | $ | 11.98 | 4.1% | |||||
Austin | $ | 17.14 | $ | 16.04 | 6.9% | |||||
Northern Virginia | $ | 20.55 | $ | 21.19 | (3.0%) | |||||
South Florida | $ | 11.69 | $ | 11.38 | 2.7% | |||||
Suburban Maryland | $ | 22.51 | $ | 22.62 | (0.5%) | |||||
Seattle | $ | 13.16 | $ | 12.41 | 6.0% | |||||
Total | $ | 16.04 | $ | 15.43 | 4.0% |
Revenue per Available Foot (RevPAF) (2) | ||||||||||
For the Three Months | ||||||||||
Ended March 31, | ||||||||||
Region | 2019 | 2018 | % Change | |||||||
Northern California | $ | 14.39 | $ | 13.38 | 7.5% | |||||
Southern California | $ | 16.58 | $ | 15.81 | 4.9% | |||||
Dallas | $ | 11.53 | $ | 10.74 | 7.4% | |||||
Austin | $ | 15.54 | $ | 15.15 | 2.6% | |||||
Northern Virginia | $ | 19.27 | $ | 19.28 | (0.1%) | |||||
South Florida | $ | 11.27 | $ | 10.94 | 3.0% | |||||
Suburban Maryland | $ | 20.30 | $ | 19.45 | 4.4% | |||||
Seattle | $ | 12.64 | $ | 12.19 | 3.7% | |||||
Total | $ | 15.16 | $ | 14.54 | 4.3% |
Revenue per Available Foot (RevPAF) (2) | ||||||||||
For the Three Months | ||||||||||
Ended March 31, | ||||||||||
Region | 2019 | 2018 | % Change | |||||||
Industrial | $ | 12.31 | $ | 11.65 | 5.7% | |||||
Flex | $ | 17.72 | $ | 17.13 | 3.4% | |||||
Office | $ | 22.69 | $ | 22.13 | 2.5% | |||||
Total | $ | 15.16 | $ | 14.54 | 4.3% |
(1) | Represents revenue earned per occupied square foot. For the three month periods ending March 31, 2019 and 2018, rental income amounts have been annualized. |
(2) | Represents revenue earned per total weighted average available square foot. For the three month periods ending March 31, 2019 and 2018, rental income amounts have been annualized. |
17
18
Rentable Square Footage of Same Park Properties as of March 31, 2019 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | % of Total | |||||||||||||||
Northern Virginia | 507 | 1,440 | 1,970 | 3,917 | 14.4% | |||||||||||||||
South Florida | 3,728 | 126 | 12 | 3,866 | 14.3% | |||||||||||||||
Silicon Valley | 3,094 | 367 | - | 3,461 | 12.8% | |||||||||||||||
East Bay | 3,297 | 53 | - | 3,350 | 12.4% | |||||||||||||||
Dallas | 1,300 | 1,587 | - | 2,887 | 10.6% | |||||||||||||||
Suburban Maryland | 394 | 576 | 1,608 | 2,578 | 9.5% | |||||||||||||||
Austin | 755 | 1,208 | - | 1,963 | 7.2% | |||||||||||||||
Los Angeles County | 1,256 | 317 | 31 | 1,604 | 5.9% | |||||||||||||||
Seattle | 1,092 | 270 | 28 | 1,390 | 5.1% | |||||||||||||||
Orange County | 810 | 101 | - | 911 | 3.4% | |||||||||||||||
San Diego County | 233 | 535 | - | 768 | 2.8% | |||||||||||||||
Mid-Peninsula | - | 94 | 340 | 434 | 1.6% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total | 16,466 | 6,674 | 3,989 | 27,129 | 100.0% | |||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Percentage by Product Type | 60.7% | 24.6% | 14.7% | 100.0% | ||||||||||||||||
Same Park Weighted Average Occupancy Rates by Product Type for the Three Months Ended March 31, 2019 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | ||||||||||||||||
Northern Virginia | 93.8% | 96.0% | 92.0% | 93.7% | ||||||||||||||||
South Florida | 96.7% | 91.0% | 65.6% | 96.4% | ||||||||||||||||
Silicon Valley | 97.1% | 96.5% | - | 97.1% | ||||||||||||||||
East Bay | 96.5% | 95.9% | - | 96.5% | ||||||||||||||||
Dallas | 96.5% | 88.9% | - | 92.3% | ||||||||||||||||
Suburban Maryland | 87.4% | 97.1% | 88.2% | 90.0% | ||||||||||||||||
Austin | 98.1% | 86.0% | - | 90.7% | ||||||||||||||||
Los Angeles County | 96.1% | 96.2% | 95.9% | 96.1% | ||||||||||||||||
Seattle | 95.6% | 97.7% | 100.0% | 96.1% | ||||||||||||||||
Orange County | 95.0% | 98.5% | - | 95.4% | ||||||||||||||||
San Diego County | 97.7% | 93.8% | - | 95.0% | ||||||||||||||||
Mid-Peninsula | - | 92.7% | 94.0% | 93.7% | ||||||||||||||||
Total | 96.3% | 92.4% | 90.6% | 94.5% | ||||||||||||||||
Same Park Weighted Average Occupancy Rates by Portfolio Type for the Three Months Ended March 31, 2019(1) | ||||||||||||||||||||
Markets | Large Tenant | Small Tenant | Total | |||||||||||||||||
Northern Virginia | 93.6% | 93.9% | 93.7% | |||||||||||||||||
South Florida | 96.9% | 94.3% | 96.4% | |||||||||||||||||
Silicon Valley | 97.6% | 94.6% | 97.1% | |||||||||||||||||
East Bay | 96.2% | 99.3% | 96.5% | |||||||||||||||||
Dallas | 92.0% | 92.8% | 92.3% | |||||||||||||||||
Suburban Maryland | 90.3% | 89.4% | 90.0% | |||||||||||||||||
Austin | 92.3% | 79.3% | 90.7% | |||||||||||||||||
Los Angeles County | 96.3% | 96.0% | 96.1% | |||||||||||||||||
Seattle | 95.4% | 97.6% | 96.1% | |||||||||||||||||
Orange County | 95.6% | 95.2% | 95.4% | |||||||||||||||||
San Diego County | - | 95.0% | 95.0% | |||||||||||||||||
Mid-Peninsula | - | 93.7% | 93.7% | |||||||||||||||||
Total | 94.8% | 93.8% | 94.5% |
(1) | The Company’s “large tenant” portfolio consists of properties with average leases greater than or equal to 5,000 square feet while the “small tenant” portfolio consists of properties with average leases less than 5,000 square feet. |
19
Rentable Square Footage of Properties as of March 31, 2019 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | % of Total | |||||||||||||||
Northern Virginia | 1,564 | 1,440 | 1,970 | 4,974 | 17.7% | |||||||||||||||
South Florida | 3,728 | 126 | 12 | 3,866 | 13.7% | |||||||||||||||
Silicon Valley | 3,094 | 367 | - | 3,461 | 12.3% | |||||||||||||||
East Bay | 3,297 | 53 | - | 3,350 | 11.9% | |||||||||||||||
Dallas | 1,300 | 1,587 | - | 2,887 | 10.2% | |||||||||||||||
Suburban Maryland | 394 | 576 | 1,608 | 2,578 | 9.2% | |||||||||||||||
Austin | 755 | 1,208 | - | 1,963 | 7.0% | |||||||||||||||
Los Angeles County | 1,256 | 317 | 31 | 1,604 | 5.7% | |||||||||||||||
Seattle | 1,092 | 270 | 28 | 1,390 | 4.9% | |||||||||||||||
Orange County | 810 | 101 | - | 911 | 3.2% | |||||||||||||||
San Diego County | 233 | 535 | - | 768 | 2.7% | |||||||||||||||
Mid-Peninsula | - | 94 | 340 | 434 | 1.5% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 17,523 | 6,674 | 3,989 | 28,186 | 100.0% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Percentage by Product Type | 62.2% | 23.7% | 14.1% | 100.0% | ||||||||||||||||
Weighted Average Occupancy Rates by Product Type for the Three Months Ended March 31, 2019 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | ||||||||||||||||
Northern Virginia | 83.6% | 96.0% | 92.0% | 90.5% | ||||||||||||||||
South Florida | 96.7% | 91.0% | 65.6% | 96.4% | ||||||||||||||||
Silicon Valley | 97.1% | 96.5% | - | 97.1% | ||||||||||||||||
East Bay | 96.5% | 95.9% | - | 96.5% | ||||||||||||||||
Dallas | 96.5% | 88.9% | - | 92.3% | ||||||||||||||||
Suburban Maryland | 87.4% | 97.1% | 88.2% | 90.0% | ||||||||||||||||
Austin | 98.1% | 86.0% | - | 90.7% | ||||||||||||||||
Los Angeles County | 96.1% | 96.2% | 95.9% | 96.1% | ||||||||||||||||
Seattle | 95.6% | 97.7% | 100.0% | 96.1% | ||||||||||||||||
Orange County | 95.0% | 98.5% | - | 95.4% | ||||||||||||||||
San Diego County | 97.7% | 93.8% | - | 95.0% | ||||||||||||||||
Mid-Peninsula | - | 92.7% | 94.0% | 93.7% | ||||||||||||||||
Total | 95.2% | 92.4% | 90.6% | 93.9% | ||||||||||||||||
Weighted Average Occupancy Rates by Portfolio Type for the Three Months Ended March 31, 2019(1) | ||||||||||||||||||||
Markets | Large Tenant | Small Tenant | Total | |||||||||||||||||
Northern Virginia | 89.4% | 93.0% | 90.5% | |||||||||||||||||
South Florida | 96.9% | 94.3% | 96.4% | |||||||||||||||||
Silicon Valley | 97.6% | 94.6% | 97.1% | |||||||||||||||||
East Bay | 96.2% | 99.3% | 96.5% | |||||||||||||||||
Dallas | 92.0% | 92.8% | 92.3% | |||||||||||||||||
Suburban Maryland | 90.3% | 89.4% | 90.0% | |||||||||||||||||
Austin | 92.3% | 79.3% | 90.7% | |||||||||||||||||
Los Angeles County | 96.3% | 96.0% | 96.1% | |||||||||||||||||
Seattle | 95.4% | 97.6% | 96.1% | |||||||||||||||||
Orange County | 95.6% | 95.2% | 95.4% | |||||||||||||||||
San Diego County | - | 95.0% | �� | 95.0% | ||||||||||||||||
Mid-Peninsula | - | 93.7% | 93.7% | |||||||||||||||||
Total | 94.0% | 93.6% | 93.9% |
(1) | The Company’s “large tenant” portfolio consists of properties with average leases greater than or equal to 5,000 square feet while the “small tenant” portfolio consists of properties with average leases less than 5,000 square feet. |
20
Lease Expirations - Industrial | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 3,433 | $ | 42,762 | 18.9% | 9.5% | |||||||||||
2020 | 3,993 | 51,196 | 22.7% | 11.5% | ||||||||||||
2021 | 2,688 | 37,788 | 16.7% | 8.6% | ||||||||||||
2022 | 2,310 | 31,914 | 14.1% | 7.1% | ||||||||||||
2023 | 1,958 | 27,009 | 11.9% | 6.1% | ||||||||||||
Thereafter | 2,322 | 35,354 | 15.7% | 7.9% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 16,704 | $ | 226,023 | 100.0% | 50.7% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Flex | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 1,242 | $ | 25,266 | 20.3% | 5.8% | |||||||||||
2020 | 1,349 | 23,938 | 19.3% | 5.4% | ||||||||||||
2021 | 1,094 | 20,693 | 16.7% | 4.6% | ||||||||||||
2022 | 975 | 21,024 | 16.9% | 4.7% | ||||||||||||
2023 | 491 | 10,026 | 8.1% | 2.2% | ||||||||||||
Thereafter | 1,073 | 23,220 | 18.7% | 5.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 6,224 | $ | 124,167 | 100.0% | 27.9% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Office | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 608 | $ | 15,363 | 16.0% | 3.4% | |||||||||||
2020 | 849 | 22,807 | 23.8% | 5.1% | ||||||||||||
2021 | 569 | 13,563 | 14.1% | 3.0% | ||||||||||||
2022 | 501 | 13,887 | 14.5% | 3.1% | ||||||||||||
2023 | 501 | 12,660 | 13.2% | 2.8% | ||||||||||||
Thereafter | 647 | 17,655 | 18.4% | 4.0% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 3,675 | $ | 95,935 | 100.0% | 21.4% | |||||||||||
|
|
|
|
|
|
|
|
(1) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-letting of expiring spaces. |
21
Lease Expirations - Southern California | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 724 | $ | 12,803 | 22.2% | 2.9% | |||||||||||
2020 | 1,037 | 17,614 | 30.5% | 3.9% | ||||||||||||
2021 | 554 | 10,602 | 18.3% | 2.4% | ||||||||||||
2022 | 406 | 7,751 | 13.4% | 1.7% | ||||||||||||
2023 | 194 | 4,083 | 7.1% | 0.9% | ||||||||||||
Thereafter | 217 | 4,907 | 8.5% | 1.1% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 3,132 | $ | 57,760 | 100.0% | 12.9% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Northern California | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 1,644 | $ | 23,369 | 20.6% | 5.2% | |||||||||||
2020 | 1,425 | 24,660 | 21.8% | 5.5% | ||||||||||||
2021 | 1,099 | 18,271 | 16.1% | 4.1% | ||||||||||||
2022 | 878 | 14,030 | 12.4% | 3.1% | ||||||||||||
2023 | 772 | 12,675 | 11.2% | 2.8% | ||||||||||||
Thereafter | 1,166 | 20,362 | 17.9% | 4.6% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 6,984 | $ | 113,367 | 100.0% | 25.3% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Austin | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 241 | $ | 3,889 | 12.1% | 0.9% | |||||||||||
2020 | 350 | 5,358 | 16.7% | 1.2% | ||||||||||||
2021 | 290 | 5,545 | 17.3% | 1.3% | ||||||||||||
2022 | 286 | 4,898 | 15.2% | 1.1% | ||||||||||||
2023 | 176 | 3,063 | 9.5% | 0.7% | ||||||||||||
Thereafter | 445 | 9,381 | 29.2% | 2.1% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 1,788 | $ | 32,134 | 100.0% | 7.3% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Dallas | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2019 | 492 | $ | 5,815 | 16.5% | 1.3% | |||||||||||
2020 | 687 | 8,063 | 22.8% | 1.8% | ||||||||||||
2021 | 482 | 6,631 | 18.8% | 1.5% | ||||||||||||
2022 | 273 | 3,896 | 11.0% | 0.9% | ||||||||||||
2023 | 320 | 4,353 | 12.3% | 1.0% | ||||||||||||
Thereafter | 448 | 6,545 | 18.6% | 1.5% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 2,702 | $ | 35,303 | 100.0% | 8.0% | |||||||||||
|
|
|
|
|
|
|
|
|
(1) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-letting of expiring spaces. |
22
Lease Expirations - South Florida | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 672 | $ | 7,496 | 16.9% | 1.7% | |||||||||||
2020 | 836 | 9,940 | 22.4% | 2.2% | ||||||||||||
2021 | 756 | 9,145 | 20.5% | 2.0% | ||||||||||||
2022 | 575 | 6,758 | 15.2% | 1.5% | ||||||||||||
2023 | 541 | 6,585 | 14.8% | 1.5% | ||||||||||||
Thereafter | 373 | 4,547 | 10.2% | 1.0% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 3,753 | $ | 44,471 | 100.0% | 9.9% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Northern Virginia | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 923 | $ | 16,908 | 18.9% | 3.8% | |||||||||||
2020 | 1,021 | 18,598 | 20.7% | 4.2% | ||||||||||||
2021 | 635 | 11,537 | 12.9% | 2.6% | ||||||||||||
2022 | 867 | 20,040 | 22.4% | 4.5% | ||||||||||||
2023 | 401 | 8,064 | 9.0% | 1.8% | ||||||||||||
Thereafter | 727 | 14,426 | 16.1% | 3.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 4,574 | $ | 89,573 | 100.0% | 20.1% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Suburban Maryland | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 370 | $ | 9,497 | 17.5% | 2.1% | |||||||||||
2020 | 350 | 7,694 | 14.2% | 1.8% | ||||||||||||
2021 | 376 | 7,660 | 14.1% | 1.7% | ||||||||||||
2022 | 306 | 6,641 | 12.2% | 1.5% | ||||||||||||
2023 | 373 | 8,419 | 15.5% | 1.9% | ||||||||||||
Thereafter | 551 | 14,416 | 26.5% | 3.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 2,326 | $ | 54,327 | 100.0% | 12.2% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Seattle | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2019 | 217 | $ | 3,614 | 18.8% | 0.8% | |||||||||||
2020 | 485 | 6,014 | 31.3% | 1.4% | ||||||||||||
2021 | 159 | 2,653 | 13.9% | 0.6% | ||||||||||||
2022 | 195 | 2,811 | 14.6% | 0.6% | ||||||||||||
2023 | 173 | 2,453 | 12.8% | 0.5% | ||||||||||||
Thereafter | 115 | 1,645 | 8.6% | 0.4% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 1,344 | $ | 19,190 | 100.0% | 4.3% | |||||||||||
|
|
|
|
|
|
|
|
(1) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-letting of expiring spaces. |
23
Lease Expirations - Large Tenant Portfolio(1) | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(3) | % | Rental Income | ||||||||||||
2019 | 3,455 | $ | 50,317 | 17.4% | 11.3% | |||||||||||
2020 | 3,924 | 53,499 | 18.5% | 12.0% | ||||||||||||
2021 | 2,803 | 41,837 | 14.5% | 9.4% | ||||||||||||
2022 | 2,869 | 48,135 | 16.6% | 10.7% | ||||||||||||
2023 | 2,254 | 34,437 | 11.9% | 7.7% | ||||||||||||
Thereafter | 3,422 | 60,916 | 21.1% | 13.7% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 18,727 | $ | 289,141 | 100.0% | 64.8% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Small Tenant Portfolio(2) | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(3) | % | Rental Income | ||||||||||||
2019 | 1,828 | $ | 33,074 | 21.1% | 7.4% | |||||||||||
2020 | 2,267 | 44,442 | 28.3% | 10.0% | ||||||||||||
2021 | 1,548 | 30,207 | 19.2% | 6.8% | ||||||||||||
2022 | 917 | 18,690 | 11.9% | 4.2% | ||||||||||||
2023 | 696 | 15,258 | 9.7% | 3.4% | ||||||||||||
Thereafter | 620 | 15,313 | 9.8% | 3.4% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 7,876 | $ | 156,984 | 100.0% | 35.2% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Total Portfolio | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(3) | % | Rental Income | ||||||||||||
2019 | 5,283 | $ | 83,391 | 18.7% | 18.7% | |||||||||||
2020 | 6,191 | 97,941 | 22.0% | 22.0% | ||||||||||||
2021 | 4,351 | 72,044 | 16.2% | 16.2% | ||||||||||||
2022 | 3,786 | 66,825 | 14.9% | 14.9% | ||||||||||||
2023 | 2,950 | 49,695 | 11.1% | 11.1% | ||||||||||||
Thereafter | 4,042 | 76,229 | 17.1% | 17.1% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 26,603 | $ | 446,125 | 100.0% | 100.0% | |||||||||||
|
|
|
|
|
|
|
|
(1) | Large tenant portfolio consists of properties with average leases greater than or equal to 5,000 square feet. |
(2) | Small tenant portfolio consists of properties with average leases less than 5,000 square feet. |
(3) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-letting of expiring spaces. |
24
Total Portfolio Activity | ||||||||||||||||||||||
Wtd. Avg. | Leasing | Customer | Transaction Costs | Transaction | Cash Rental Rate | |||||||||||||||||
Occupancy | Volume | Retention | per Executed Foot | Costs(1) | Change (2) | |||||||||||||||||
Northern Virginia | 90.5% | 322,000 | 83.1% | $5.20 | 10.6% | -0.7% | ||||||||||||||||
South Florida | 96.4% | 219,000 | 76.8% | $1.55 | 3.1% | 16.0% | ||||||||||||||||
Silicon Valley | 97.1% | 186,000 | 70.2% | $2.25 | 2.1% | 24.1% | ||||||||||||||||
East Bay | 96.5% | 116,000 | 15.0% | $1.89 | 2.8% | 27.3% | ||||||||||||||||
Dallas | 92.3% | 283,000 | 90.6% | $5.28 | 11.4% | 6.6% | ||||||||||||||||
Suburban Maryland | 90.0% | 78,000 | 61.4% | $7.27 | 10.3% | -9.0% | ||||||||||||||||
Austin | 90.7% | 44,000 | 51.0% | $3.42 | 6.0% | 5.5% | ||||||||||||||||
Los Angeles | 96.1% | 159,000 | 67.9% | $1.29 | 2.3% | 18.2% | ||||||||||||||||
Seattle | 96.1% | 78,000 | 62.0% | $0.90 | 1.6% | 18.9% | ||||||||||||||||
Orange County | 95.4% | 76,000 | 75.2% | $2.21 | 2.9% | 0.6% | ||||||||||||||||
San Diego | 95.0% | 76,000 | 71.0% | $2.10 | 3.3% | 10.9% | ||||||||||||||||
Mid-Peninsula
| 93.7% | 27,000 | 58.7% | $0.85 | 1.0% | 9.2% | ||||||||||||||||
Company Totals by Market | 93.9% | 1,664,000 | 66.5% | $3.30 | 5.4% | 9.1% | ||||||||||||||||
Industrial | 95.2% | 1,065,000 | 62.5% | $2.33 | 4.0% | 15.7% | ||||||||||||||||
Flex | 92.4% | 366,000 | 74.4% | $4.59 | 7.5% | 6.1% | ||||||||||||||||
Office
| 90.6% | 233,000 | 75.1% | $5.71 | 7.9% | -1.1% | ||||||||||||||||
Company Totals by Type | 93.9% | 1,664,000 | 66.5% | $3.30 | 5.4% | 9.1% |
(1) | Transaction cost percentages are computed by taking the total transaction costs divided by the total rents (including estimated expense recoveries) over the term of the lease. |
(2) | Cash rental rate change percentages are computed by taking the percentage difference between outgoing rents (including estimated expense recoveries) and incoming rents (including estimated expense recoveries) for leases executed during the period. Leases executed on spaces vacant for more than the preceding twelve months have been excluded. |
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Total Costs (1) | Construction | |||||||||||||||
Property Information | Location | Apartment Units | (in thousands) | Completion | ||||||||||||
Highgate at the Mile | Tysons, VA | 395 | $ | 115,426 | Q4 2017 | |||||||||||
As of March 31, 2019 | ||||||||||||||||
Period end occupancy | 94.9 | % | ||||||||||||||
Average rent per unit(2) | $ | 2,074 |
(1) | The total costs of the project include contributed land value of $21.0 million plus unrealized land appreciation of $6.0 million. The unrealized land appreciation of $6.0 million is not recorded on our balance sheet. |
(2) | Average rent per unit is defined as the total potential monthly rental revenue (i.e. actual rent for occupied apartment units plus market rent for vacant apartment units) divided by the number of available units. |
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