Exhibit 99.2
SUPPLEMENTAL INFORMATION
FIRST QUARTER 2020 |
701 WESTERN AVENUE | GLENDALE, CA 91201 | 818.244.8080 | PSBUSINESSPARKS.COM
ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION FOR
THE THREE MONTHS ENDED MARCH 31, 2020
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Consolidated Balance Sheets | 4 | |
Consolidated Statements of Income | 6 | |
Portfolio Summary | 8 | |
First Quarter Fact Sheet | 9 | |
Same Park Cash NOI by Region and Type | 10 | |
Analysis of Capital Expenditures | 11 | |
Funds from Operations (FFO), Core FFO and Funds Available for Distribution (FAD) | 12 | |
Capital Structure and Financial Condition | 14 | |
Portfolio Operating Analysis and Statistics | 15 | |
Lease Expirations | 22 | |
First Quarter 2020 Production Statistics | 26 |
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 length and severity of theCOVID-19 pandemic and its impact on our business, 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 and business conditions, including in connection with theCOVID-19 pandemic; rental rates and occupancy levels at the Company’s facilities; and changes in these conditions as a result of theCOVID-19 pandemic, 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.
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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.
Adjusted Cost of Operations – Adjusted cost of operations represents cost of operations, excludingnon-cash 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.
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 revenue includes straight-line rent, amortization of above and below market rents, net, and amortization of lease incentives and tenant improvement reimbursements. Thenon-cash expenses are 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.
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) other nonrecurring income or expense items as appropriate. Core FFO per share represents Core FFO allocable to diluted shares and units divided by the weighted average diluted shares and units. 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.
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 and impairment charges on 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.
Free Cash Available after Fixed Charges– Free cash available after fixed charges represents FAD less dividends and distributions.
Funds Available for Distribution (“FAD”) – FAD is anon-GAAP measure that represents Core FFO adjusted to (a) deduct recurring capital improvements that maintains the condition of our real estate, tenant improvements and lease commissions and (b) remove certainnon-cash revenue 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.
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 diluted shares and units, divided by aggregate diluted shares and units. The GAAP measure most directly comparable to FFO and FFO per share are net income and earnings per share, respectively.
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.
Retained Cash – Retain cash represents free cash available after fixed charges less(i) non-recurring property renovations and funds used for development and redevelopment.
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March 31, 2020 | December 31, 2019 | |||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 87,874 | $ | 62,786 | (a) | |||||||
Real estate facilities, at cost | ||||||||||||
Land | 857,758 | 846,635 | ||||||||||
Buildings and improvements | 2,214,861 | 2,206,134 | ||||||||||
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3,072,619 | 3,052,769 | |||||||||||
Accumulated depreciation | (1,181,660) | (1,159,769) | ||||||||||
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1,890,959 | 1,893,000 | (b) | ||||||||||
Properties held for sale, net(1) | - | 11,502 | ||||||||||
Land and building held for development, net | 26,216 | 28,110 | ||||||||||
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1,917,175 | 1,932,612 | |||||||||||
Rent receivable | 2,903 | 1,392 | (c) | |||||||||
Deferred rent receivable | 33,747 | 32,993 | ||||||||||
Other assets | 12,317 | 16,660 | (d) | |||||||||
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Total assets | $ | 2,054,016 | $ | 2,046,443 | ||||||||
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LIABILITIES AND EQUITY | ||||||||||||
Accrued and other liabilities | $ | 78,644 | $ | 84,632 | (e) | |||||||
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Total liabilities | 78,644 | 84,632 | ||||||||||
Equity | ||||||||||||
PS Business Parks, Inc.’s shareholders’ equity: | ||||||||||||
Preferred stock | 944,750 | 944,750 | ||||||||||
Common stock | 274 | 274 | ||||||||||
Paid-in capital | 734,091 | 736,986 | (f) | |||||||||
Accumulated earnings | 76,739 | 63,666 | (g) | |||||||||
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Total PS Business Parks, Inc.’s shareholders’ equity | 1,755,854 | 1,745,676 | ||||||||||
Noncontrolling interests | 219,518 | 216,135 | ||||||||||
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Total equity | 1,975,372 | 1,961,811 | ||||||||||
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Total liabilities and equity | $ | 2,054,016 | $ | 2,046,443 | ||||||||
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See following page for additional detail related to the tickmarks shown in the table above.
(1) | On January 7, 2020, the Company completed the sale of a one single-tenant government building totaling 113,000 square feet at Metro Park North located in Montgomery County, Maryland, for a gross sales price of $30.0 million. This building represents the entirety of the properties held for sale, net as of December 31, 2019. |
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(a) | Change in cash and cash equivalents | |||||||||||||
Beginning cash balance at December 31, 2019 | $ | 62,786 | ||||||||||||
Net cash provided by operating activities | 70,007 | |||||||||||||
Net cash provided by investing activities | 7,587 | |||||||||||||
Net cash used in financing activities | (52,506) | |||||||||||||
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Ending cash balance at March 31, 2020 | $ | 87,874 | ||||||||||||
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(b) | Change in real estate facilities | |||||||||||||
Beginning balance at December 31, 2019 | $ | 1,893,000 | ||||||||||||
Acquisition of real estate | 13,276 | |||||||||||||
Recurring capital improvements | 1,223 | |||||||||||||
Tenant improvements, gross | 3,549 | |||||||||||||
Capitalized lease commissions | 2,082 | |||||||||||||
Nonrecurring capital improvements | 93 | |||||||||||||
Depreciation and amortization | (22,248) | |||||||||||||
Transfer to properties held for sale | (16) | |||||||||||||
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Ending balance at March 31, 2020 | $ | 1,890,959 | ||||||||||||
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Increase | ||||||||||||||
(c) | Change in rent receivable | March 31, 2020 | December 31, 2019 | (Decrease) | ||||||||||
Non-government customers(1) | $ | 2,182 | $ | 597 | $ | 1,585 | ||||||||
U.S. Government customers | 721 | 795 | (74) | |||||||||||
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$ | 2,903 | $ | 1,392 | $ | 1,511 | |||||||||
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(d) | Change in other assets | March 31, 2020 | December 31, 2019 | (Decrease) | ||||||||||
Lease intangible assets, net | $ | 8,844 | $ | 9,973 | $ | (1,129) | ||||||||
Prepaid property taxes and insurance | 1,031 | 2,572 | (1,541) | |||||||||||
Other | 2,442 | 4,115 | (1,673) | |||||||||||
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$ | 12,317 | $ | 16,660 | $ | (4,343) | |||||||||
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(e) | Change in accrued and other liabilities | March 31, 2020 | December 31, 2019 | (Decrease) | ||||||||||
Customer security deposits | $ | 38,329 | $ | 39,118 | $ | (789) | ||||||||
Accrued property taxes | 12,958 | 11,521 | 1,437 | |||||||||||
Customer prepaid rent | 11,265 | 14,519 | (3,254) | |||||||||||
Lease intangible liabilities, net | 7,267 | 8,541 | (1,274) | |||||||||||
Other | 8,825 | 10,933 | (2,108) | |||||||||||
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$ | 78,644 | $ | 84,632 | $ | (5,988) | |||||||||
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(f) | Change inpaid-in capital | |||||||||||||
Beginningpaid-in capital | $ | 736,986 | ||||||||||||
Stock compensation expense, net | 760 | |||||||||||||
Cash paid for taxes in lieu of shares upon vesting of restricted stock units | (3,655) | |||||||||||||
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Ending paid in capital | $ | 734,091 | ||||||||||||
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(g) | Change in accumulated earnings | |||||||||||||
Beginning accumulated earnings | $ | 63,666 | ||||||||||||
Net income | 53,936 | |||||||||||||
Distributions to preferred shareholders | (12,046) | |||||||||||||
Distributions to common shareholders | (28,817) | |||||||||||||
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Ending accumulated earnings | $ | 76,739 | ||||||||||||
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(1) | Included in the balance at March 31, 2020 is $1.6 million of prior year expense recovery billings and for comparative purposes this balance was $1.7 million as of March 31, 2019. |
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For The Three Months | ||||||||||
Ended March 31, | ||||||||||
2020 | 2019 | |||||||||
Rental income | $ | 106,216 | $ | 107,825 | (a) | |||||
Expenses | ||||||||||
Cost of operations | 31,263 | 33,593 | (b) | |||||||
Depreciation and amortization | 26,619 | 24,875 | ||||||||
General and administrative | 3,323 | 3,233 | (c) | |||||||
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Total operating expenses | 61,205 | 61,701 | ||||||||
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Interest and other income | 557 | 618 | (d) | |||||||
Interest and other expense | (161) | (167) | (e) | |||||||
Gain on sale of real estate facility | 19,621 | - | ||||||||
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Net income | 65,028 | 46,575 | ||||||||
Allocation to noncontrolling interests | (11,092) | (7,027) | ||||||||
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Net income allocable to PS Business Parks, Inc. | 53,936 | 39,548 | ||||||||
Allocation to preferred shareholders | (12,046) | (12,959) | ||||||||
Allocation to restricted stock unit holders | (275) | (268) | ||||||||
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Net income allocable to common shareholders | $ | 41,615 | $ | 26,321 | ||||||
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Net income per common share | ||||||||||
Basic | $ | 1.52 | $ | 0.96 | ||||||
Diluted | $ | 1.51 | $ | 0.96 | ||||||
Weighted average common shares outstanding | ||||||||||
Basic | 27,448 | 27,373 | ||||||||
Diluted | 27,550 | 27,479 |
6
For The Three Months Ended | Increase | |||||||||||||
(a) | Rental income: | March 31, 2020 | March 31, 2019 | (Decrease) | ||||||||||
Same Park | $ | 97,170 | $ | 94,196 | $ | 2,974 | ||||||||
Same Parknon-cash revenue(1) | 802 | 617 | 185 | |||||||||||
Non-Same Park | 5,357 | 2,318 | 3,039 | |||||||||||
Non-Same Parknon-cash revenue(1) | 261 | 163 | 98 | |||||||||||
Multifamily | 2,559 | 2,497 | 62 | |||||||||||
Multifamilynon-cash revenue(1) | 1 | 1 | - | |||||||||||
Revenue from assets sold(2) | 66 | 8,033 | (7,967) | |||||||||||
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$ | 106,216 | $ | 107,825 | $ | (1,609) | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(b) | Cost of operations: | March 31, 2020 | March 31, 2019 | (Decrease) | ||||||||||
Same Park | $ | 28,178 | $ | 28,177 | $ | 1 | ||||||||
Same Parknon-cash expenses(3) | 255 | 276 | (21) | |||||||||||
Non-Same Park | 1,782 | 1,143 | 639 | |||||||||||
Non-Same Parknon-cash expenses(3) | 19 | 13 | 6 | |||||||||||
Multifamily | 1,016 | 1,071 | (55) | |||||||||||
Expenses from assets sold(2) | 13 | 2,913 | (2,900) | |||||||||||
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$ | 31,263 | $ | 33,593 | $ | (2,330) | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(c) | General and administrative expenses: | March 31, 2020 | March 31, 2019 | (Decrease) | ||||||||||
Compensation expense | $ | 1,753 | $ | 1,683 | $ | 70 | ||||||||
Stock compensation expense | 668 | 665 | 3 | |||||||||||
Professional fees and other | 902 | 885 | 17 | |||||||||||
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$ | 3,323 | $ | 3,233 | $ | 90 | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(d) | Interest and other income: | March 31, 2020 | March 31, 2019 | (Decrease) | ||||||||||
Management fee income | $ | 70 | $ | 78 | $ | (8) | ||||||||
Interest income | 303 | 326 | (23) | |||||||||||
Other income | 184 | 214 | (30) | |||||||||||
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$ | 557 | $ | 618 | $ | (61) | |||||||||
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For The Three Months Ended | Increase | |||||||||||||
(e) | Interest and other expense: | March 31, 2020 | March 31, 2019 | (Decrease) | ||||||||||
Interest expense | $ | - | $ | - | $ | - | ||||||||
Credit facilities fees & other charges | (161) | (167) | (6) | |||||||||||
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$ | (161) | $ | (167) | $ | (6) | |||||||||
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(1) | Non-cash revenue represents straight-line rent, amortization of above and below market rents, net, and amortization of lease incentives and tenant improvement reimbursements. |
(2) | Amounts for the three months ended March 31, 2020 reflect the operating results related to a 113,000 square foot office building sold in 2020; amounts for the three months ended March 31, 2019 reflect the operating results related to a 113,000 square foot office building sold in 2020 and 1.3 million square feet of assets sold in 2019. |
(3) | Non-cash expenses represent stock compensation expense attributable to employees whose compensation expense is recorded in costs of operations. |
PROPERTY INFORMATION(1) |
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For The Three Months Ended March 31, | ||||||||||||
2020 | 2019 | % Change | ||||||||||
Total Portfolio (2) | ||||||||||||
Total rentable square footage at period end | 27,522,000 | 26,753,000 | 2.9% | |||||||||
Weighted average occupancy | 92.9% | 94.1% | (1.3%) | |||||||||
Period end occupancy | 92.6% | 94.1% | (1.6%) | |||||||||
Annualized realized rent per occupied sq. ft. (3) (5) | $ | 16.20 | $ | 15.46 | 4.8% | |||||||
RevPAF (4) (5) | $ | 15.06 | $ | 14.55 | 3.5% | |||||||
Same Park Portfolio(6) | ||||||||||||
Total rentable square footage at period end | 25,696,000 | 25,696,000 | - | |||||||||
Weighted average occupancy | 92.9% | 94.7% | (1.9%) | |||||||||
Period end occupancy | 92.5% | 94.7% | (2.3%) | |||||||||
Annualized realized rent per occupied sq. ft. (3) (5) | $ | 16.42 | $ | 15.58 | 5.4% | |||||||
RevPAF (4) (5) | $ | 15.25 | $ | 14.76 | 3.3% | |||||||
Non-Same Park Portfolio(7) | ||||||||||||
Total rentable square footage at period end | 1,826,000 | 1,057,000 | 72.8% | |||||||||
Weighted average occupancy | 93.3% | 78.6% | 18.7% | |||||||||
Period end occupancy | 93.6% | 79.9% | 17.1% | |||||||||
Annualized realized rent per occupied sq. ft. (3) | $ | 13.24 | $ | 11.94 | 10.9% | |||||||
RevPAF(4) | $ | 12.35 | $ | 9.39 | 31.5% | |||||||
Multifamily Portfolio | ||||||||||||
Number of units | 395 | 395 | - | |||||||||
Weighted average occupancy | 94.9% | 95.1% | (0.2%) | |||||||||
Period end occupancy | 94.1% | 94.9% | (0.8%) |
(1) | Excludes a 113,000 square foot office building sold in 2020 and 1.3 million rentable square feet of assets sold in 2019. |
(2) | Operating metrics from our multifamily asset are excluded from the total portfolio operating metrics. |
(3) | Annualized realized rent per occupied square foot represents the annualized GAAP revenue earned per occupied square foot. |
(4) | RevPAF represents the annualized GAAP revenue earned per total weighted average available square foot. |
(5) | Total and Same Park annualized realized rent per occupied square foot and RevPAF include lease buyout income of $278,000 and $177,000 for the three months ended March 31, 2020 and 2019, respectively. |
(6) | Same Park includes assets acquired prior to January 1, 2018. |
(7) | Non-Same Park reflects assets acquired on or subsequent to January 1, 2018. |
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NET OPERATING INCOME
For The Three Months Ended March 31, | ||||||||||||
2020 | 2019 | % Change | ||||||||||
Rental income | ||||||||||||
Same Park(1) (2) | $ | 97,972 | $ | 94,813 | 3.3% | |||||||
Non-Same Park(3) | 5,618 | 2,481 | 126.4% | |||||||||
Multifamily | 2,560 | 2,498 | 2.5% | |||||||||
Assets sold | 66 | 8,033 | (99.2%) | |||||||||
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Total rental income | 106,216 | 107,825 | (1.5%) | |||||||||
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Adjusted cost of operations(4) | ||||||||||||
Same Park(1) (5) | 28,178 | 28,177 | 0.0% | |||||||||
Non-Same Park(3) | 1,782 | 1,143 | 55.9% | |||||||||
Multifamily | 1,016 | 1,071 | (5.1%) | |||||||||
Assets sold | 13 | 2,896 | (99.6%) | |||||||||
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Total | 30,989 | 33,287 | (6.9%) | |||||||||
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Net operating income | ||||||||||||
Same Park(1) | 69,794 | 66,636 | 4.7% | |||||||||
Non-Same Park(3) | 3,836 | 1,338 | 186.7% | |||||||||
Multifamily | 1,544 | 1,427 | 8.2% | |||||||||
Assets sold(6) | 53 | 5,137 | (99.0%) | |||||||||
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Total net operating income | $ | 75,227 | $ | 74,538 | 0.9% | |||||||
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CASH NET OPERATING INCOME |
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For The Three Months Ended March 31, | ||||||||||||
2020 | 2019 | % Change | ||||||||||
Cash rental income(7) | ||||||||||||
Same Park(1) (2) | $ | 97,170 | $ | 94,196 | 3.2% | |||||||
Non-Same Park(3) | 5,357 | 2,318 | 131.1% | |||||||||
Multifamily | 2,559 | 2,497 | 2.5% | |||||||||
Assets sold | 66 | 7,801 | (99.2%) | |||||||||
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Total cash rental income | 105,152 | 106,812 | (1.6%) | |||||||||
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Adjusted cost of operations(4) | ||||||||||||
Same Park(1) (5) | 28,178 | 28,177 | 0.0% | |||||||||
Non-Same Park(3) | 1,782 | 1,143 | 55.9% | |||||||||
Multifamily | 1,016 | 1,071 | (5.1%) | |||||||||
Assets sold | 13 | 2,896 | (99.6%) | |||||||||
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Total adjusted cost of operations | 30,989 | 33,287 | (6.9%) | |||||||||
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Cash net operating income | ||||||||||||
Same Park(1) | 68,992 | 66,019 | 4.5% | |||||||||
Non-Same Park(3) | 3,575 | 1,175 | 204.3% | |||||||||
Multifamily | 1,543 | 1,426 | 8.2% | |||||||||
Assets sold(6) | 53 | 4,905 | (98.9%) | |||||||||
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Total cash net operating income | $ | 74,163 | $ | 73,525 | 0.9% | |||||||
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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, | ||||||||||||
2020 | 2019 | % Change | ||||||||||
Net income | $ | 65,028 | $ | 46,575 | 39.6% | |||||||
Net interest (income) expense | (166) | (190) | (12.6%) | |||||||||
Depreciation and amortization | 26,619 | 24,875 | 7.0% | |||||||||
Gain on sale of real estate facilities and development rights | (19,621) | - | 100.0% | |||||||||
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EBITDAre | $ | 71,860 | $ | 71,260 | 0.8% | |||||||
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(1) | Same Park includes assets acquired prior to January 1, 2018. |
(2) | Same Park rental income and cash rental income include lease buyout income of $278,000 and $177,000 for the three months ended March 31, 2020 and 2019, respectively. |
(3) | Non-Same Park reflects assets acquired on or subsequent to January 1, 2018. |
(4) | Adjusted cost of operations represents cost of operations excludingnon-cash stock compensation expense for employees whose compensation expense is recorded in cost of operations. Refer to page 7 for reconciliation of cash expenses to Cost of Operations as reported on our GAAP income statement |
(5) | The table below details Same Park adjusted cost of operations: |
For The Three Months Ended March 31, | ||||||||||||
2020 | 2019 | % Change | ||||||||||
Cost of operations | ||||||||||||
Property taxes | $ | 10,789 | $ | 10,147 | 6.3 | % | ||||||
Utilities | 5,120 | 4,905 | 4.4 | % | ||||||||
Repairs and maintenance | 5,405 | 5,510 | (1.9 | %) | ||||||||
Snow removal | 78 | 999 | (92.2 | %) | ||||||||
Payroll and other expenses | 6,786 | 6,616 | 2.6 | % | ||||||||
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Total cost of operations | $ | 28,178 | $ | 28,177 | 0.0 | % | ||||||
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(6) | NOI from assets sold in 2020 was $53,000 and $617,000 for the three months ended March 31, 2020 and 2019, respectively. Cash NOI from assets sold in 2020 was $53,000 and $584,000 for the three months ended March 31, 2020 and 2019, respectively. The three month remainder NOI balance in 2019 relates to assets sold during 2019. |
(7) | Cash rental income excludesnon-cash revenue, specifically straight-line rent, amortization of above and below market rents, net, amortization of lease incentives and tenant improvement reimbursements. Refer to page 7 for reconciliation of cash rental income to Rental Income as reported on our GAAP income statement. |
9
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||
March 31, 2020 | March 31, 2019 | Total % Change | ||||||||||||||||||||||||||||||||||
Industrial | Flex | Office | Total | Industrial | Flex | Office | Total | |||||||||||||||||||||||||||||
Cash rental income(1) | ||||||||||||||||||||||||||||||||||||
Northern California | $ | 21,039 | $ | 2,579 | $ | 3,127 | $ | 26,745 | $ | 20,552 | $ | 2,467 | $ | 2,992 | $ | 26,011 | 2.8% | |||||||||||||||||||
Southern California | 9,002 | 4,898 | 187 | 14,087 | 8,790 | 4,638 | 183 | 13,611 | 3.5% | |||||||||||||||||||||||||||
Dallas | 3,168 | 5,430 | — | 8,598 | 3,050 | 5,130 | — | 8,180 | 5.1% | |||||||||||||||||||||||||||
Austin | 2,184 | 6,100 | — | 8,284 | 2,061 | 5,408 | — | 7,469 | 10.9% | |||||||||||||||||||||||||||
Northern Virginia | 1,938 | 6,068 | 9,972 | 17,978 | 1,793 | 6,326 | 10,582 | 18,701 | (3.9%) | |||||||||||||||||||||||||||
South Florida | 10,608 | 502 | 32 | 11,142 | 10,443 | 456 | 1 | 10,900 | 2.2% | |||||||||||||||||||||||||||
Seattle | 3,242 | 1,735 | 186 | 5,163 | 2,657 | 1,602 | 181 | 4,440 | 16.3% | |||||||||||||||||||||||||||
Suburban Maryland | 1,042 | — | 4,131 | 5,173 | 1,197 | — | 3,687 | 4,884 | 5.9% | |||||||||||||||||||||||||||
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Total | 52,223 | 27,312 | 17,635 | 97,170 | 50,543 | 26,027 | 17,626 | 94,196 | 3.2% | |||||||||||||||||||||||||||
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Adjusted cost of operations(2) | ||||||||||||||||||||||||||||||||||||
Northern California | 4,737 | 648 | 781 | 6,166 | 4,595 | 679 | 770 | 6,044 | 2.0% | |||||||||||||||||||||||||||
Southern California | 2,299 | 1,353 | 73 | 3,725 | 2,227 | 1,251 | 68 | 3,546 | 5.0% | |||||||||||||||||||||||||||
Dallas | 1,011 | 2,034 | — | 3,045 | 947 | 1,965 | — | 2,912 | 4.6% | |||||||||||||||||||||||||||
Austin | 745 | 2,214 | — | 2,959 | 718 | 2,006 | — | 2,724 | 8.6% | |||||||||||||||||||||||||||
Northern Virginia | 530 | 1,822 | 3,865 | 6,217 | 616 | 2,027 | 4,439 | 7,082 | (12.2%) | |||||||||||||||||||||||||||
South Florida | 2,844 | 134 | 14 | 2,992 | 2,711 | 150 | 22 | 2,883 | 3.8% | |||||||||||||||||||||||||||
Seattle | 847 | 420 | 54 | 1,321 | 619 | 367 | 49 | 1,035 | 27.6% | |||||||||||||||||||||||||||
Suburban Maryland | 351 | — | 1,402 | 1,753 | 381 | — | 1,570 | 1,951 | (10.1%) | |||||||||||||||||||||||||||
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Total | 13,364 | 8,625 | 6,189 | 28,178 | 12,814 | 8,445 | 6,918 | 28,177 | 0.0% | |||||||||||||||||||||||||||
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Cash NOI | �� | |||||||||||||||||||||||||||||||||||
Northern California | 16,302 | 1,931 | 2,346 | 20,579 | 15,957 | 1,788 | 2,222 | 19,967 | 3.1% | |||||||||||||||||||||||||||
Southern California | 6,703 | 3,545 | 114 | 10,362 | 6,563 | 3,387 | 115 | 10,065 | 3.0% | |||||||||||||||||||||||||||
Dallas | 2,157 | 3,396 | — | 5,553 | 2,103 | 3,165 | — | 5,268 | 5.4% | |||||||||||||||||||||||||||
Austin | 1,439 | 3,886 | — | 5,325 | 1,343 | 3,402 | — | 4,745 | 12.2% | |||||||||||||||||||||||||||
Northern Virginia | 1,408 | 4,246 | 6,107 | 11,761 | 1,177 | 4,299 | 6,143 | 11,619 | 1.2% | |||||||||||||||||||||||||||
South Florida | 7,764 | 368 | 18 | 8,150 | 7,732 | 306 | (21) | 8,017 | 1.7% | |||||||||||||||||||||||||||
Seattle | 2,395 | 1,315 | 132 | 3,842 | 2,038 | 1,235 | 132 | 3,405 | 12.8% | |||||||||||||||||||||||||||
Suburban Maryland | 691 | — | 2,729 | 3,420 | 816 | — | 2,117 | 2,933 | 16.6% | |||||||||||||||||||||||||||
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Total | $ | 38,859 | $ | 18,687 | $ | 11,446 | $ | 68,992 | $ | 37,729 | $ | 17,582 | $ | 10,708 | $ | 66,019 | 4.5% | |||||||||||||||||||
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(1) | Cash rental income excludesnon-cash revenue, specifically straight-line rent, amortization of above and below market rents, net, amortization of lease incentives and tenant improvement reimbursements. Cash rental income includes lease buyout income of $278,000 and $177,000 for the three months ended March 31, 2020 and 2019, respectively. |
(2) | Adjusted cost of operations represents cost of operations excludingnon-cash stock compensation expense related to employees whose compensation expense is included in costs of operations. Refer to the “Forward-Looking Statement andNon-GAAP Disclosures” on page 3 for more information. |
10
For the Three Months Ended | Cost per Weighted | |||||||
March 31, 2020 | Average Square Foot | |||||||
Commercial recurring capital expenditures(1) | ||||||||
Same Park | ||||||||
Capital improvements | $ | 1,220 | $ | 0.05 | ||||
Tenant improvements | 3,438 | 0.13 | ||||||
Lease commissions | 2,075 | 0.08 | ||||||
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Total Same Park recurring capital expenditures | 6,733 | $ | 0.26 | |||||
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Non-Same Park | ||||||||
Capital improvements | 3 | $ | — | |||||
Tenant improvements | 92 | 0.05 | ||||||
Lease commissions | 7 | — | ||||||
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TotalNon-Same Park recurring capital expenditures | 102 | $ | 0.05 | |||||
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Total recurring capital expenditures | 6,835 | $ | 0.25 | |||||
Assets sold recurring capital expenditures | 16 | |||||||
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Total commercial recurring capital expenditures | 6,851 | |||||||
Non-Same Parknon-recurring property renovations(2) | 93 | |||||||
Multifamily capital expenditures | — | |||||||
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Total capital expenditures | $ | 6,944 | ||||||
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(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 (i.e. tenant improvements and leasing commissions) of $1,000 or more for leases with terms greater than 12 months are capitalized. All leasing costs, including first generation tenant improvements and leasing commissions, are included in recurring capital expenditures. |
(2) | Non-recurring property renovations represents renovations that substantially enhance the value of a property, including capitalized costs associated with repositioning acquired assets. |
11
For the Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Net income allocable to common shareholders | $ | 41,615 | $ | 26,321 | ||||
Adjustments | ||||||||
Gain on sale of real estate facilities | (19,621) | - | ||||||
Depreciation and amortization | 26,619 | 24,875 | ||||||
Net income allocable to noncontrolling interests | 11,092 | 7,027 | ||||||
Net income allocable to restricted stock unit holders | 275 | 268 | ||||||
FFO allocated to joint venture partner | (43) | (29) | ||||||
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FFO allocable to diluted common shares and units | 59,937 | 58,462 | ||||||
Core FFO allocable to diluted common shares and units | 59,937 | 58,462 | ||||||
Adjustments | ||||||||
Recurring capital improvements | (1,223) | (1,070) | ||||||
Tenant improvements | (3,530) | (3,524) | ||||||
Capitalized lease commissions | (2,082) | (1,843) | ||||||
Total recurring capital expenditures for assets sold | (16) | (250) | ||||||
Straight-line rent | (768) | (657) | ||||||
In-place lease adjustment | (66) | 21 | ||||||
Tenant improvement reimbursement amortization, net of lease incentive amortization | (230) | (379) | ||||||
Stock compensation expense | 942 | 971 | ||||||
Cash paid for taxes in lieu of shares upon vesting of restricted stock units | (3,655) | (5,494) | ||||||
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FAD allocable to diluted common shares and units | 49,309 | 46,237 | ||||||
Distributions to common shareholders | (28,817) | (28,737) | ||||||
Distributions to noncontrolling interests - common units | (7,671) | (7,671) | ||||||
Distributions to restricted stock unit holders | (182) | (268) | ||||||
Distributions to noncontrolling interests - joint venture | (38) | - | ||||||
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Free cash available after fixed charges | 12,601 | 9,561 | ||||||
Non-recurring property renovations(1) | (93) | (864) | ||||||
Investment in multifamily redevelopment(2) | (875) | (425) | ||||||
Investment in industrial development(3) | (437) | - | ||||||
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Retained cash | $ | 11,196 | $ | 8,272 | ||||
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Weighted average outstanding | ||||||||
Common shares | 27,448 | 27,373 | ||||||
Operating partnership units | 7,305 | 7,305 | ||||||
Restricted stock units | 77 | 140 | ||||||
Common share equivalents | 102 | 106 | ||||||
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Total diluted common shares and units | 34,932 | 34,924 | ||||||
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FFO per share | $ | 1.72 | $ | 1.67 | ||||
Core FFO per share | $ | 1.72 | $ | 1.67 | ||||
FAD distribution payout ratio(4) | 74.4% | 79.3% |
(1) | Non-recurring property renovations represents renovations that substantially enhance the value of a property, including capitalized costs associated with repositioning acquired assets. |
(2) | Represents predevelopment and development costs related to multifamily redevelopment projects. |
(3) | Represents developments and predevelopment costs related to industrial development projects. |
(4) | FAD distribution payout ratio is equal to total distributions to common shareholders, unit holders, restricted stock unit holders and our joint venture partner divided by FAD during the same reporting period. |
12
13
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||
% of Total | % of Total | |||||||||||||||||||||||||||
Market | WTD Average | Market | WTD Average | |||||||||||||||||||||||||
Total | Capitalization | Rate | Total | Capitalization | Rate | |||||||||||||||||||||||
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Unsecured Debt: | ||||||||||||||||||||||||||||
$250.0 million unsecured credit facility (LIBOR + 0.825%) | $ | - | - | - | $ | - | - | - | ||||||||||||||||||||
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Total unsecured debt | - | - | - | - | - | - | ||||||||||||||||||||||
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Preferred Equity: | ||||||||||||||||||||||||||||
5.200% Series W preferred stock (7,590,000 depositary shares outstanding) callable 10/20/21 | 189,750 | 3.4% | 189,750 | 2.8% | ||||||||||||||||||||||||
5.250% Series X preferred stock (9,200,000 depositary shares outstanding) callable 9/21/22 | 230,000 | 4.1% | 230,000 | 3.5% | ||||||||||||||||||||||||
5.200% Series Y preferred stock (8,000,000 depositary shares outstanding) callable 12/7/22 | 200,000 | 3.5% | 200,000 | 3.0% | ||||||||||||||||||||||||
4.875% Series Z preferred stock (13,000,000 depositary shares outstanding) callable 11/4/24 | 325,000 | 5.7% | 325,000 | 4.9% | ||||||||||||||||||||||||
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Total preferred equity | 944,750 | 16.7% | 5.10% | 944,750 | 14.2% | 5.10% | ||||||||||||||||||||||
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Total debt and preferred equity | 944,750 | 16.7% | 5.10% | 944,750 | 14.2% | 5.10% | ||||||||||||||||||||||
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Common stock (27,477,303and 27,440,953 shares outstanding as of March 31, 2020 and December 31, 2019, respectively)(1) | 3,723,724 | 65.8% | 4,524,190 | 67.8% | ||||||||||||||||||||||||
Common operating partnership units (7,305,355 units outstanding as of March 31, 2020 and December 31, 2019) (1) | 990,022 | 17.5% | 1,204,434 | 18.0% | ||||||||||||||||||||||||
Total common equity(1) | 4,713,746 | 83.3% | 5,728,624 | 85.8% | ||||||||||||||||||||||||
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Total market capitalization | $ | 5,658,496 | 100.0% | $ | 6,673,374 | 100.0% | ||||||||||||||||||||||
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For the three months ended March 31, 2020 | For the year ended December 31, 2019 | |||||||||||||||||||||||||||
Interest expense and related expenses(3) | $ | 137 | $ | 611 | ||||||||||||||||||||||||
Preferred distributions | 12,046 | 54,346 | ||||||||||||||||||||||||||
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Total fixed charges and preferred distributions | $ | 12,183 | $ | 54,957 | ||||||||||||||||||||||||
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Ratio of EBITDAre to fixed charges and preferred distributions | 5.9x | 5.3x | ||||||||||||||||||||||||||
Ratio of FFO to fixed charges and preferred distributions | 5.9x | 5.3x | ||||||||||||||||||||||||||
Ratio of Debt and Preferred Equity to EBITDAre(2) | 3.3x | 3.3x |
(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, 2020 and December 31, 2019 were $135.52 and $164.87, 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, 2020 is calculated using annualized EBITDAre for the three months ended March 31, 2020. |
(3) | Interest expense and related expenses includes facility fees associated with our unsecured credit facility. |
14
Industry Concentration as of March 31, 2020 |
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Percentage of | ||||||||||||
Total Rental Income | ||||||||||||
Business services | 19.7% | |||||||||||
Warehouse, distribution, transportation and logistics | 12.9% | |||||||||||
Computer hardware, software and related services | 11.0% | |||||||||||
Health services | 8.0% | |||||||||||
Retail, food, and automotive | 7.9% | |||||||||||
Engineering and construction | 7.8% | |||||||||||
Government | 6.3% | |||||||||||
Insurance and financial services | 3.3% | |||||||||||
Electronics | 3.0% | |||||||||||
Home furnishings | 2.6% | |||||||||||
Communications | 1.9% | |||||||||||
Aerospace/defense products and services | 1.9% | |||||||||||
Educational services | 1.0% | |||||||||||
Other | 12.7% | |||||||||||
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Total | 100.0% | |||||||||||
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Top 10 Customers by Total Annual Rental Income as of March 31, 2020 |
| |||||||||||
Square Footage | Annualized | Percentage of Total | ||||||||||
Customer | Rental Income (1) | Annualized Rental Income | ||||||||||
US Government | 521,000 | $ | 13,831 | 3.3% | ||||||||
Luminex Corporation | 199,000 | 4,351 | 1.0% | |||||||||
Amazon Inc. | 213,000 | 2,734 | 0.7% | |||||||||
KZ Kitchen Cabinet & Stone | 191,000 | 2,667 | 0.6% | |||||||||
Lockheed Martin Corporation | 124,000 | 2,570 | 0.6% | |||||||||
CentralColo, LLC | 96,000 | 2,328 | 0.6% | |||||||||
Applied Materials, Inc. | 162,000 | 2,327 | 0.6% | |||||||||
Carbel, LLC | 236,000 | 2,238 | 0.5% | |||||||||
Quanta Computer Inc. | 179,000 | 1,884 | 0.4% | |||||||||
ECS Federal, LLC | 81,000 | 1,852 | 0.4% | |||||||||
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Total | 2,002,000 | $ | 36,782 | 8.7% | ||||||||
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Tenant Composition as of March 31, 2020 |
| |||||||||||
Average Tenant Size | ||||||||||||
Number | (in square feet) | |||||||||||
of Tenants | Average square footage | |||||||||||
Large Tenant Portfolio(2) | 1,371 | 12,892 | ||||||||||
Small Tenant Portfolio(3) | 3,634 | 2,150 | ||||||||||
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Total Portfolio | 5,005 | 5,093 | ||||||||||
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(1) | For leases expiring within one year, annualized rental income includes only the income to be received under the existing lease from April 1, 2020 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. |
15
Realized Revenue per Occupied Square Foot (1) (2) | ||||||||||||
For the Three Months | ||||||||||||
Ended March 31, | ||||||||||||
Region | 2020 | 2019 | % Change | |||||||||
Northern California | $ | 16.37 | $ | 14.90 | 9.9 | % | ||||||
Southern California | $ | 18.33 | $ | 17.34 | 5.7 | % | ||||||
Dallas | $ | 13.32 | $ | 12.47 | 6.8 | % | ||||||
Austin | $ | 17.74 | $ | 17.14 | 3.5 | % | ||||||
Northern Virginia | $ | 20.19 | $ | 20.55 | (1.8 | %) | ||||||
South Florida | $ | 12.28 | $ | 11.69 | 5.0 | % | ||||||
Seattle | $ | 14.90 | $ | 13.16 | 13.2 | % | ||||||
Suburban Maryland | $ | 19.68 | $ | 19.81 | (0.7 | %) | ||||||
Total | $ | 16.42 | $ | 15.58 | 5.4 | % | ||||||
Revenue per Available Foot (RevPAF) (1) (3) | ||||||||||||
For the Three Months | ||||||||||||
Ended March 31, | ||||||||||||
Region | 2020 | 2019 | % Change | |||||||||
Northern California | $ | 14.95 | $ | 14.39 | 3.9 | % | ||||||
Southern California | $ | 17.35 | $ | 16.58 | 4.6 | % | ||||||
Dallas | $ | 12.03 | $ | 11.53 | 4.3 | % | ||||||
Austin | $ | 16.95 | $ | 15.54 | 9.1 | % | ||||||
Northern Virginia | $ | 18.61 | $ | 19.27 | (3.4 | %) | ||||||
South Florida | $ | 11.55 | $ | 11.27 | 2.5 | % | ||||||
Seattle | $ | 14.74 | $ | 12.64 | 16.6 | % | ||||||
Suburban Maryland | $ | 17.98 | $ | 17.65 | 1.9 | % | ||||||
Total | $ | 15.25 | $ | 14.76 | 3.3 | % | ||||||
Realized Revenue per Occupied Square Foot (1) (2) | ||||||||||||
For the Three Months | ||||||||||||
Ended March 31, | ||||||||||||
Region | 2020 | 2019 | % Change | |||||||||
Industrial | $ | 13.81 | $ | 12.78 | 8.1 | % | ||||||
Flex | $ | 19.31 | $ | 18.61 | 3.8 | % | ||||||
Office | $ | 24.57 | $ | 25.13 | (2.2 | %) | ||||||
Total | $ | 16.42 | $ | 15.58 | 5.4 | % | ||||||
Revenue per Available Foot (RevPAF) (1) (3) | ||||||||||||
For the Three Months | ||||||||||||
Ended March 31, | ||||||||||||
Region | 2020 | 2019 | % Change | |||||||||
Industrial | $ | 12.85 | $ | 12.31 | 4.4 | % | ||||||
Flex | $ | 17.97 | $ | 17.12 | 5.0 | % | ||||||
Office | $ | 22.59 | $ | 23.06 | (2.0 | %) | ||||||
Total | $ | 15.25 | $ | 14.76 | 3.3 | % |
(1) | Rental income includes lease buyout income of $278,000 and $177,000 for the three ended March 31, 2020 and 2019, respectively. |
(2) | Represents GAAP revenue earned per occupied square foot. For the three month periods ended March 31, 2020 and 2019, GAAP rental income amounts have been annualized. |
(3) | Represents GAAP revenue earned per total weighted average available square foot. For the three month periods ended March 31, 2020 and 2019, GAAP rental income amounts have been annualized. |
16
17
Rentable Square Footage of Same Park Properties by Product Type as of March 31, 2020 |
Markets | Industrial | Flex | Office | Total | % of Total | |||||||||||||||
Northern Virginia | 507 | 1,440 | 1,970 | 3,917 | 15.2 | % | ||||||||||||||
South Florida | 3,728 | 126 | 12 | 3,866 | 15.0 | % | ||||||||||||||
Silicon Valley | 3,094 | 367 | - | 3,461 | 13.8 | % | ||||||||||||||
East Bay | 3,297 | 53 | - | 3,350 | 13.0 | % | ||||||||||||||
Dallas | 1,300 | 1,587 | - | 2,887 | 11.2 | % | ||||||||||||||
Austin | 755 | 1,208 | - | 1,963 | 7.6 | % | ||||||||||||||
Los Angeles County | 1,256 | 317 | 31 | 1,604 | 6.2 | % | ||||||||||||||
Seattle | 1,092 | 270 | 28 | 1,390 | 5.4 | % | ||||||||||||||
Suburban Maryland | 394 | - | 751 | 1,145 | 4.4 | % | ||||||||||||||
Orange County | 810 | 101 | - | 911 | 3.5 | % | ||||||||||||||
San Diego County | 233 | 535 | - | 768 | 3.0 | % | ||||||||||||||
Mid-Peninsula | - | 94 | 340 | 434 | 1.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total | 16,466 | 6,098 | 3,132 | 25,696 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Percentage by Product Type | 64.1% | 23.7% | 12.2% | 100.0% | ||||||||||||||||
Same Park Weighted Average Occupancy Rates by Product Type for the Three Months Ended March 31, 2020 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | ||||||||||||||||
Northern Virginia | 93.3% | 94.6% | 90.0% | 92.1% | ||||||||||||||||
South Florida | 94.2% | 88.1% | 100.0% | 94.0% | ||||||||||||||||
Silicon Valley | 96.3% | 97.7% | - | 96.4% | ||||||||||||||||
East Bay | 85.8% | 93.9% | - | 86.0% | ||||||||||||||||
Dallas | 92.4% | 88.5% | - | 90.3% | ||||||||||||||||
Austin | 98.2% | 93.9% | - | 95.5% | ||||||||||||||||
Los Angeles County | 94.0% | 97.1% | 98.9% | 94.7% | ||||||||||||||||
Seattle | 99.4% | 97.2% | 98.4% | 98.9% | ||||||||||||||||
Suburban Maryland | 84.7% | - | 94.5% | 91.1% | ||||||||||||||||
Orange County | 93.5% | 91.9% | - | 93.4% | ||||||||||||||||
San Diego County | 97.3% | 95.7% | - | 96.2% | ||||||||||||||||
Mid-Peninsula | - | 86.0% | 94.6% | 92.8% | ||||||||||||||||
Total | 93.0% | 93.1% | 91.8% | 92.9% |
18
Rentable Square Footage of Same Park Properties by Size as of March 31, 2020 (1) | ||||||||||||||||||||
Markets | Large Tenant | Small Tenant | Total | % of Total | ||||||||||||||||
Northern Virginia | 2,479 | 1,438 | 3,917 | 15.2 | % | |||||||||||||||
South Florida | 3,107 | 759 | 3,866 | 15.0 | % | |||||||||||||||
Silicon Valley | 2,835 | 626 | 3,461 | 13.8 | % | |||||||||||||||
East Bay | 3,052 | 298 | 3,350 | 13.0 | % | |||||||||||||||
Dallas | 1,758 | 1,129 | 2,887 | 11.2 | % | |||||||||||||||
Austin | 1,718 | 245 | 1,963 | 7.6 | % | |||||||||||||||
Los Angeles County | 712 | 892 | 1,604 | 6.2 | % | |||||||||||||||
Seattle | 951 | 439 | 1,390 | 5.4 | % | |||||||||||||||
Suburban Maryland | 537 | 608 | 1,145 | 4.4 | % | |||||||||||||||
Orange County | 513 | 398 | 911 | 3.5 | % | |||||||||||||||
San Diego County | - | 768 | 768 | 3.0 | % | |||||||||||||||
Mid-Peninsula | - | 434 | 434 | 1.7 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 17,662 | 8,034 | 25,696 | 100.0 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Percentage by Product Type | 68.7% | 31.3% | 100.0% | |||||||||||||||||
Same Park Weighted Average Occupancy Rates by Size for the Three Months Ended March 31, 2020 (1) | ||||||||||||||||||||
Markets | Large Tenant | Small Tenant | Total | |||||||||||||||||
Northern Virginia | 91.0% | 94.1% | 92.1% | |||||||||||||||||
South Florida | 94.3% | 92.7% | 94.0% | |||||||||||||||||
Silicon Valley | 97.1% | 93.4% | 96.4% | |||||||||||||||||
East Bay | 84.7% | 98.9% | 86.0% | |||||||||||||||||
Dallas | 92.6% | 86.7% | 90.3% | |||||||||||||||||
Austin | 96.5% | 88.5% | 95.5% | |||||||||||||||||
Los Angeles County | 94.8% | 94.6% | 94.7% | |||||||||||||||||
Seattle | 99.6% | 97.5% | 98.9% | |||||||||||||||||
Suburban Maryland | 91.2% | 91.0% | 91.1% | |||||||||||||||||
Orange County | 92.8% | 94.1% | 93.4% | |||||||||||||||||
San Diego County | - | 96.2% | 96.2% | |||||||||||||||||
Mid-Peninsula | - | 92.8% | 92.8% | |||||||||||||||||
Total | 92.8% | 93.0% | 92.9% |
(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. |
19
Rentable Square Footage of Properties by Product Type as of March 31, 2020 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | % of Total | |||||||||||||||
Northern Virginia | 1,564 | 1,440 | 1,970 | 4,974 | 18.1% | |||||||||||||||
South Florida | 3,728 | 126 | 12 | 3,866 | 13.9% | |||||||||||||||
Silicon Valley | 3,094 | 446 | - | 3,540 | 12.9% | |||||||||||||||
East Bay | 3,297 | 53 | - | 3,350 | 12.2% | |||||||||||||||
Dallas | 1,300 | 1,587 | - | 2,887 | 10.5% | |||||||||||||||
Los Angeles County | 1,946 | 317 | 31 | 2,294 | 8.3% | |||||||||||||||
Austin | 755 | 1,208 | - | 1,963 | 7.1% | |||||||||||||||
Seattle | 1,092 | 270 | 28 | 1,390 | 5.1% | |||||||||||||||
Suburban Maryland | 394 | - | 751 | 1,145 | 4.2% | |||||||||||||||
Orange County | 810 | 101 | - | 911 | 3.3% | |||||||||||||||
San Diego County | 233 | 535 | - | 768 | 2.8% | |||||||||||||||
Mid-Peninsula | - | 94 | 340 | 434 | 1.6% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Total | 18,213 | 6,177 | 3,132 | 27,522 | 100.0% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Percentage by Product Type | 66.2% | 22.4% | 11.4% | 100.0% | ||||||||||||||||
Weighted Average Occupancy Rates by Product Type for the Three Months Ended March 31, 2020 | ||||||||||||||||||||
Markets | Industrial | Flex | Office | Total | ||||||||||||||||
Northern Virginia | 90.7% | 94.6% | 90.0% | 91.6% | ||||||||||||||||
South Florida | 94.2% | 88.1% | 100.0% | 94.0% | ||||||||||||||||
Silicon Valley | 96.3% | 96.7% | - | 96.3% | ||||||||||||||||
East Bay | 85.8% | 93.9% | - | 86.0% | ||||||||||||||||
Dallas | 92.4% | 88.5% | - | 90.3% | ||||||||||||||||
Los Angeles County | 95.9% | 97.1% | 98.9% | 96.1% | ||||||||||||||||
Austin | 98.2% | 93.9% | - | 95.5% | ||||||||||||||||
Seattle | 99.4% | 97.2% | 98.4% | 98.9% | ||||||||||||||||
Suburban Maryland | 84.7% | - | 94.5% | 91.1% | ||||||||||||||||
Orange County | 93.5% | 91.9% | - | 93.4% | ||||||||||||||||
San Diego County | 97.3% | 95.7% | - | 96.2% | ||||||||||||||||
Mid-Peninsula | - | 86.0% | 94.6% | 92.8% | ||||||||||||||||
Total | 93.1% | 93.1% | 91.8% | 92.9% |
20
Rentable Square Footage of Properties by Size as of March 31, 2020 (1) |
| |||||||||||||||||
Markets | Large | Small | Total | % of Total | ||||||||||||||
|
|
| ||||||||||||||||
Northern Virginia | 3,399 | 1,575 | 4,974 | 18.1% | ||||||||||||||
South Florida | 3,107 | 759 | 3,866 | 13.9% | ||||||||||||||
Silicon Valley | 2,835 | 705 | 3,540 | 12.9% | ||||||||||||||
East Bay | 3,052 | 298 | 3,350 | 12.2% | ||||||||||||||
Dallas | 1,758 | 1,129 | 2,887 | 10.5% | ||||||||||||||
Los Angeles County | 1,255 | 1,039 | 2,294 | 8.3% | ||||||||||||||
Austin | 1,718 | 245 | 1,963 | 7.1% | ||||||||||||||
Seattle | 951 | 439 | 1,390 | 5.1% | ||||||||||||||
Suburban Maryland | 537 | 608 | 1,145 | 4.2% | ||||||||||||||
Orange County | 513 | 398 | 911 | 3.3% | ||||||||||||||
San Diego County | - | 768 | 768 | 2.8% | ||||||||||||||
Mid-Peninsula | - | 434 | 434 | 1.6% | ||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Total | 19,125 | 8,397 | 27,522 | 100.0% | ||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||
Percentage by Product Type | 69.5% | 30.5% | 100.0% | |||||||||||||||
Weighted Average Occupancy Rates by Size for the Three Months Ended March 31, 2020 (1) | ||||||||||||||||||
Markets | Large Tenant | Small Tenant | Total | |||||||||||||||
|
|
| ||||||||||||||||
Northern Virginia | 90.4% | 94.1% | 91.6% | |||||||||||||||
South Florida | 94.3% | 92.7% | 94.0% | |||||||||||||||
Silicon Valley | 97.1% | 93.2% | 96.3% | |||||||||||||||
East Bay | 84.7% | 98.9% | 86.0% | |||||||||||||||
Dallas | 92.6% | 86.7% | 90.3% | |||||||||||||||
Los Angeles County | 97.1% | 94.9% | 96.1% | |||||||||||||||
Austin | 96.5% | 88.5% | 95.5% | |||||||||||||||
Seattle | 99.6% | 97.5% | 98.9% | |||||||||||||||
Suburban Maryland | 91.2% | 91.0% | 91.1% | |||||||||||||||
Orange County | 92.8% | 94.1% | 93.4% | |||||||||||||||
San Diego County | - | 96.2% | 96.2% | |||||||||||||||
Mid-Peninsula | - | 92.8% | 92.8% | |||||||||||||||
Total | 92.9% | 93.1% | 92.9% |
(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. |
21
Lease Expirations - Total Portfolio | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2020 | 4,337 | $ | 70,930 | 16.0% | 16.0% | |||||||||||
2021 | 5,257 | 90,314 | 20.4% | 20.4% | ||||||||||||
2022 | 5,109 | 90,630 | 20.5% | 20.5% | ||||||||||||
2023 | 3,744 | 62,240 | 14.1% | 14.1% | ||||||||||||
2024 | 2,642 | 46,668 | 10.6% | 10.6% | ||||||||||||
Thereafter | 4,492 | 81,486 | 18.4% | 18.4% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 25,581 | $ | 442,268 | 100.0% | 100.0% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Industrial | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2020 | 2,823 | $ | 36,917 | 15.1% | 8.3% | |||||||||||
2021 | 3,246 | 47,214 | 19.2% | 10.7% | ||||||||||||
2022 | 3,304 | 48,517 | 19.8% | 11.0% | ||||||||||||
2023 | 2,628 | 37,262 | 15.2% | 8.4% | ||||||||||||
2024 | 1,854 | 28,241 | 11.5% | 6.4% | ||||||||||||
Thereafter | 3,060 | 47,146 | 19.2% | 10.7% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 16,915 | $ | 245,297 | 100.0% | 55.5% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Flex | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2020 | 1,009 | $ | 19,323 | 16.3% | 4.4% | |||||||||||
2021 | 1,423 | 28,179 | 23.7% | 6.3% | ||||||||||||
2022 | 1,227 | 25,991 | 21.9% | 5.9% | ||||||||||||
2023 | 621 | 12,370 | 10.4% | 2.8% | ||||||||||||
2024 | 460 | 9,804 | 8.3% | 2.2% | ||||||||||||
Thereafter | 1,026 | 23,024 | 19.4% | 5.2% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 5,766 | $ | 118,691 | 100.0% | 26.8% | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Lease Expirations - Office | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 505 | $ | 14,690 | 18.8% | 3.3% | |||||||||||
2021 | 588 | 14,921 | 19.1% | 3.4% | ||||||||||||
2022 | 578 | 16,122 | 20.6% | 3.6% | ||||||||||||
2023 | 495 | 12,608 | 16.1% | 2.9% | ||||||||||||
2024 | 328 | 8,623 | 11.0% | 2.0% | ||||||||||||
Thereafter | 406 | 11,316 | 14.4% | 2.5% | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total | 2,900 | $ | 78,280 | 100.0% | 17.7% | |||||||||||
|
|
|
|
|
|
|
|
|
(1) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending uponre-letting of expiring spaces. |
22
Lease Expirations - Northern California | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2020 | 924 | $ | 19,220 | 16.1% | 4.3% | |||||||||||
2021 | 1,232 | 22,631 | 18.9% | 5.1% | ||||||||||||
2022 | 1,117 | 19,575 | 16.4% | 4.4% | ||||||||||||
2023 | 915 | 16,448 | 13.8% | 3.7% | ||||||||||||
2024 | 744 | 12,727 | 10.7% | 2.9% | ||||||||||||
Thereafter | 1,678 | 28,738 | 24.1% | 6.5% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 6,610 | $ | 119,339 | 100.0% | 26.9% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Southern California | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 1,038 | $ | 15,463 | 22.4% | 3.5% | |||||||||||
2021 | 873 | 16,717 | 24.2% | 3.8% | ||||||||||||
2022 | 995 | 18,353 | 26.7% | 4.2% | ||||||||||||
2023 | 353 | 6,916 | 10.0% | 1.6% | ||||||||||||
2024 | 304 | 6,390 | 9.3% | 1.4% | ||||||||||||
Thereafter | 277 | 5,133 | 7.4% | 1.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 3,840 | $ | 68,972 | 100.0% | 15.7% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Dallas | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 466 | $ | 6,473 | 17.8% | 1.5% | |||||||||||
2021 | 679 | 8,990 | 24.7% | 2.0% | ||||||||||||
2022 | 332 | 4,126 | 11.4% | 0.9% | ||||||||||||
2023 | 482 | 6,192 | 17.0% | 1.4% | ||||||||||||
2024 | 190 | 2,862 | 7.9% | 0.7% | ||||||||||||
Thereafter | 473 | 7,700 | 21.2% | 1.7% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 2,622 | $ | 36,343 | 100.0% | 8.2% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Austin | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 186 | $ | 3,273 | 9.1% | 0.7% | |||||||||||
2021 | 330 | 6,259 | 17.5% | 1.4% | ||||||||||||
2022 | 401 | 7,254 | 20.2% | 1.6% | ||||||||||||
2023 | 203 | 3,536 | 9.9% | 0.8% | ||||||||||||
2024 | 209 | 4,392 | 12.3% | 1.0% | ||||||||||||
Thereafter | 552 | 11,118 | 31.0% | 2.5% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 1,881 | $ | 35,832 | 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 uponre-letting of expiring spaces. |
23
Lease Expirations - Northern Virginia | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (1) | % | Rental Income | ||||||||||||
2020 | 700 | $ | 11,899 | 13.0% | 2.7% | |||||||||||
2021 | 934 | 17,390 | 19.0% | 3.9% | ||||||||||||
2022 | 1,081 | 23,879 | 26.1% | 5.4% | ||||||||||||
2023 | 516 | 10,714 | 11.7% | 2.4% | ||||||||||||
2024 | 499 | 10,208 | 11.2% | 2.3% | ||||||||||||
Thereafter | 838 | 17,394 | 19.0% | 3.9% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 4,568 | $ | 91,484 | 100.0% | 20.6% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - South Florida |
| |||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 640 | $ | 6,889 | 15.2% | 1.6% | |||||||||||
2021 | 794 | 10,228 | 22.6% | 2.4% | ||||||||||||
2022 | 800 | 10,316 | 22.9% | 2.3% | ||||||||||||
2023 | 668 | 8,368 | 18.5% | 1.9% | ||||||||||||
2024 | 469 | 6,087 | 13.5% | 1.4% | ||||||||||||
Thereafter | 257 | 3,302 | 7.3% | 0.8% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 3,628 | $ | 45,190 | 100.0% | 10.4% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Suburban Maryland |
| |||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 149 | $ | 3,991 | 17.2% | 0.9% | |||||||||||
2021 | 187 | 3,551 | 15.3% | 0.8% | ||||||||||||
2022 | 143 | 2,905 | 12.5% | 0.7% | ||||||||||||
2023 | 244 | 5,322 | 22.9% | 1.2% | ||||||||||||
2024 | 96 | 2,107 | 9.1% | 0.5% | ||||||||||||
Thereafter | 232 | 5,337 | 23.0% | 1.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 1,051 | $ | 23,213 | 100.0% | 5.3% | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Lease Expirations - Seattle |
| |||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income(1) | % | Rental Income | ||||||||||||
2020 | 234 | $ | 3,722 | 17.0% | 0.8% | |||||||||||
2021 | 228 | 4,548 | 20.8% | 1.0% | ||||||||||||
2022 | 240 | 4,222 | 19.3% | 1.0% | ||||||||||||
2023 | 363 | 4,744 | 21.7% | 1.1% | ||||||||||||
2024 | 131 | 1,895 | 8.6% | 0.4% | ||||||||||||
Thereafter | 185 | 2,764 | 12.6% | 0.6% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 1,381 | $ | 21,895 | 100.0% | 4.9% | |||||||||||
|
|
|
|
|
|
|
|
(1) | Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending uponre-letting of expiring spaces. |
24
Lease Expirations - Large Tenant Portfolio(1) | ||||||||||||||||
Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (3) | % | Rental Income | ||||||||||||
2020 | 2,560 | $ | 37,104 | 13.3% | 8.4% | |||||||||||
2021 | 3,018 | 44,864 | 16.1% | 10.1% | ||||||||||||
2022 | 3,362 | 54,474 | 19.6% | 12.3% | ||||||||||||
2023 | 2,716 | 40,466 | 14.5% | 9.2% | ||||||||||||
2024 | 2,118 | 34,529 | 12.4% | 7.8% | ||||||||||||
Thereafter | 3,935 | 67,211 | 24.1% | 15.2% | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 17,709 | $ | 278,648 | 100.0% | 63.0% | |||||||||||
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Lease Expirations - Small Tenant Portfolio(2) |
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Annualized | % of Total Annualized | |||||||||||||||
Year of Lease Expiration | Leased Square Footage | Rental Income (3) | % | Rental Income | ||||||||||||
2020 | 1,777 | $ | 33,826 | 20.7% | 7.6% | |||||||||||
2021 | 2,239 | 45,450 | 27.8% | 10.3% | ||||||||||||
2022 | 1,747 | 36,156 | 22.1% | 8.2% | ||||||||||||
2023 | 1,028 | 21,774 | 13.3% | 4.9% | ||||||||||||
2024 | 524 | 12,139 | 7.4% | 2.8% | ||||||||||||
Thereafter | 557 | 14,275 | 8.7% | 3.2% | ||||||||||||
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Total | 7,872 | $ | 163,620 | 100.0% | 37.0% | |||||||||||
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(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 uponre-letting of expiring spaces. |
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Total Portfolio Activity | ||||||||||||||||||||||||
Wtd. Avg. | Leasing | Customer | Transaction Costs | Transaction Costs | Cash Rental Rate | |||||||||||||||||||
Occupancy | Volume | Retention | per Executed Foot | as a % of Rents (1) | Change (2) | |||||||||||||||||||
Northern Virginia | 91.6% | 398,000 | 75.6% | $ | 6.33 | 10.2% | 1.1% | |||||||||||||||||
South Florida | 94.0% | 179,000 | 51.6% | $ | 1.48 | 3.2% | 7.7% | |||||||||||||||||
Silicon Valley | 96.3% | 245,000 | 74.1% | $ | 3.06 | 2.6% | 17.8% | |||||||||||||||||
East Bay | 86.0% | 98,000 | 83.2% | $ | 1.41 | 1.5% | 19.0% | |||||||||||||||||
Dallas | 90.3% | 197,000 | 66.0% | $ | 3.58 | 8.7% | 3.6% | |||||||||||||||||
Suburban Maryland | 91.1% | 48,000 | 72.4% | $ | 9.42 | 12.0% | 2.4% | |||||||||||||||||
Austin | 95.5% | 90,000 | 81.1% | $ | 3.26 | 4.8% | 4.3% | |||||||||||||||||
Los Angeles | 96.1% | 201,000 | 87.9% | $ | 3.18 | 6.2% | 15.1% | |||||||||||||||||
Seattle | 98.9% | 264,000 | 92.5% | $ | 0.83 | 2.0% | 30.0% | |||||||||||||||||
Orange County | 93.4% | 84,000 | 61.7% | $ | 3.23 | 4.1% | 7.7% | |||||||||||||||||
San Diego | 96.2% | 75,000 | 71.2% | $ | 1.99 | 3.8% | 4.4% | |||||||||||||||||
Mid-Peninsula | 92.8% | 30,000 | 90.0% | $ | 0.43 | 0.6% | 5.0% | |||||||||||||||||
Company Totals by Market | 92.9% | 1,909,000 | 75.4% | $ | 3.36 | 5.2% | 9.5% | |||||||||||||||||
Industrial | 93.1% | 1,276,000 | 75.7% | $ | 2.06 | 3.3% | 15.1% | |||||||||||||||||
Flex | 93.1% | 430,000 | 76.6% | $ | 5.75 | 8.5% | 2.8% | |||||||||||||||||
Office | 91.8% | 203,000 | 71.8% | $ | 6.45 | 9.4% | 2.3% | |||||||||||||||||
Company Totals by Type | 92.9% | 1,909,000 | 75.4% | $ | 3.36 | 5.2% | 9.5% |
(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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