Exhibit 99.2
SUPPLEMENTAL OPERATING AND
FINANCIAL DATA
FINANCIAL DATA
FOR THE QUARTER ENDED
JUNE 30, 2006
JUNE 30, 2006
Rendering of Lancaster Rehabilitation Hospital
All amounts shown in this report are unaudited
This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of Cogdell
Spencer Inc. Any offers to sell or solicitation to buy securities of Cogdell Spencer Inc. shall be made only by means of
prospectus approved for that purpose.
Spencer Inc. Any offers to sell or solicitation to buy securities of Cogdell Spencer Inc. shall be made only by means of
prospectus approved for that purpose.
Company Background
Cogdell Spencer Inc. is a fully-integrated, self-administered and self managed real estate investment trust (REIT) that invests in specialty office buildings for the medical profession, including medical office buildings, ambulatory surgery and diagnostic centers.
On November 1, 2005, the Company completed its initial public offering of 5,800,000 shares of common stock at $17.00 per share resulting in gross proceeds of $98.6 million. On November 29, 2005, in connection with the exercise of the underwriters’ over-allotment option, the Company issued an additional 300,000 shares of common stock and received gross proceeds of $5.1 million. The aggregate proceeds, net of underwriting discounts and commissions and offering costs were approximately $89.9 million.
During the first quarter of 2006, the Company acquired four medical office buildings in three states, representing both new client relationships and new territory. Methodist Professional Center One in Indianapolis, Indiana was acquired for approximately $39.9 million. In a joint acquisition, the Company acquired Hanover Medical Office Building in Hanover, Virginia and 1808/1818 Verdugo Hills in Glendale, California for $36.1 million.
In June, the Company announced an expanded presence in the Grand Strand region of South Carolina with the ground breaking of the Carolina Forest Medical Plaza, a 39,000 square foot medical office building. Construction is estimated to be completed in the second quarter of 2007. The facility is 43.2% leased as of June 30, 2006.
In July, the Company broke ground on a rehabilitation hospital in Lancaster, Pennsylvania. This development project represents a new client relationship and is the eleventh state for Cogdell Spencer’s footprint. Construction is estimated to be completed in the second quarter of 2007. The facility is 100% leased. The Company will also be developing a second project with Lancaster General Hospital, with more details to follow in the third quarter of 2006.
On July 17, 2006, the Company sold the building known as Cabarrus Pediatrics located in Concord, North Carolina, to NorthEast Medical Center. The Company expects to record the gain from the sale during the third quarter.
1
As of June 30, 2006, the Cogdell Spencer Inc. portfolio and managed properties consisted of properties located in ten states, with its primary concentration in the Southeast. The Company’s footprint includes North Carolina, South Carolina, Georgia, Kentucky, Louisiana, Mississippi, Florida, Indiana, California and Virginia.
Of the properties in the Company’s wholly-owned portfolio, 76% are located on hospital campuses and 8% are off-campus, hospital anchored.
This supplemental package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements reflect the Company’s views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ materially. Factors that may contribute to these differences include, but are not limited to the following: market trends; our ability to obtain future financing arrangements; our ability to renew ground leases; defaults by tenants; and changes in the reimbursement available to our tenants by government or private payors. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company’s filing on Form 10-K for the year ended December 31, 2005. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be realized. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Investor Information
| Board of Directors | Senior Management | |||||
James W. Cogdell | Frank C. Spencer | James W. Cogdell | Frank C. Spencer | |||
| Chairman | President & CEO | Chairman | President & CEO | |||
John R. Georgius | Richard B. Jennings | Charles M. Handy | Devereaux A. Gregg | |||
| Chief Financial Officer | Vice President-Development | |||||
Christopher E. Lee | Richard C. Neugent | |||||
| Matthew H. Nurkin | Mary J. Surles | |||||
Randolph D. Smoak, M.D. | Vice President-Acquisitions | Vice President-Management | ||||
| Rex A. Noble | ||||||
| Vice President-Management | ||||||
Equity Research Coverage | ||
Banc of America Securities | SmithBarney Citigroup | |
| Russ Nussbaum- 212.847.5668 | Jonathan Litt- 212.816.0231 | |
BB&T | BMO Capital Markets | |
| Stephanie Krewson- 804.782.8784 | Richard Anderson- 212.885.4180 | |
Company Information | ||||||
Corporate Headquarters | Trading Symbol | Transfer Agent | Investor Relations | |||
| 4401 Barclay Downs Drive | CSA | Continental Stock | Dana A. Crothers | |||
| Suite 300 | Transfer & Trust | Marketing Director | ||||
| Charlotte, NC 28209 | Stock Exchange Listing | 704.940.2904 | ||||
| Tel: 704.940.2900 | New York Stock Exchange | |||||
| Fax: 704.940.2957 | ||||||
| www.cogdellspencer.com | ||||||
| 2006 Tentative Schedule for Quarterly Results | ||||||
| Third Quarter | Early November | Fourth Quarter | To be decided | |||
3
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Financial and Operating Highlights
(in thousands, except per share amounts, ratios and portfolio statistics)
| Three Months | Six Months | |||||||
| Ended | Ended | |||||||
| June 30, 2006 | June 30, 2006 | |||||||
Selected Operating Data | ||||||||
| Property revenues | $ | 13,441 | $ | 25,219 | ||||
| Straight line rent | $ | 65 | $ | 83 | ||||
Fair value lease revenues (1) | $ | 247 | $ | 448 | ||||
| Property operating expenses | $ | 4,874 | $ | 9,128 | ||||
| Property operating margin | 64 | % | 64 | % | ||||
EBITDA(2) | $ | 7,582 | $ | 14,151 | ||||
| Interest expense | $ | 3,414 | $ | 5,824 | ||||
| Net loss | $ | (2,166 | ) | $ | (3,691 | ) | ||
| Net loss per share — diluted | $ | (0.27 | ) | $ | (0.46 | ) | ||
Funds from Operations (“FFO”)(3) | $ | 4,088 | $ | 8,160 | ||||
FFO per share and unit — diluted(3) | $ | 0.33 | $ | 0.66 | ||||
| Dividends per share and unit | $ | 0.35 | $ | 0.70 | ||||
| As of | ||||
| June 30, 2006 | ||||
Selected Balance Sheet Data | ||||
| Cash and cash equivalents | $ | 870 | ||
| Book value of real estate assets before depreciation | $ | 341,231 | ||
| Total assets | $ | 370,242 | ||
| Total liabilities | $ | 244,658 | ||
| Minority interests and stockholders’ equity | $ | 125,584 | ||
Debt | ||||
| Weighted average interest rate | 6.4 | % | ||
| Weighted average remaining maturity (years) | 3.3 | |||
| Debt / total market capitalization | 49 | % | ||
| Debt / total assets | 62 | % | ||
| As of | ||||
| June 30, 2006 | ||||
Capitalization | ||||
| Debt | $ | 229,614 | ||
| Common shares outstanding | 7,996 | |||
| Units outstanding | 4,365 | |||
| Total common shares and units outstanding | 12,361 | |||
| Share price at end of period | $ | 19.51 | ||
Equity value at end of period(4) | $ | 241,156 | ||
| Total market capitalization | $ | 470,770 | ||
Portfolio Statistics — Wholly-owned Properties | ||||
| Properties wholly-owned at end of period | 49 | |||
| Total square footage owned at end of period | 2,508,727 | |||
| Occupancy at end of period | 94.1 | % | ||
| (1) | Represents the net adjustment for above and below market leases which are being amortized over the remaining term of the respective leases from the date of the acquisition. | |
| (2) | For a definition and discussion and a quantitative reconciliation of the differences between EBITDA and net loss, see page 9. | |
| (3) | For a definition and discussion and a quantitative reconciliation of the differences between FFO and net loss, see page 8. | |
| (4) | Assuming conversion of 100% of the operating partnership units into shares of common stock. |
4
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
| June 30, 2006 | March 31, 2006 | December 31, 2005 | ||||||||||
Assets | ||||||||||||
| Real estate: | ||||||||||||
| Operating real estate properties | $ | 337,233 | $ | 335,613 | $ | 258,744 | ||||||
| Less: Accumulated depreciation | (12,666 | ) | (7,839 | ) | (2,699 | ) | ||||||
| Total operating real estate properties, net | 324,567 | 327,774 | 256,045 | |||||||||
| Construction in progress | 2,603 | 1,874 | 1,099 | |||||||||
| Real estate properties, net — held for sale | 1,337 | 1,358 | 1,379 | |||||||||
| Total real estate | 328,507 | 331,006 | 258,523 | |||||||||
| Cash and cash equivalents | 870 | 3,897 | 9,571 | |||||||||
| Restricted cash | 899 | 817 | 779 | |||||||||
| Investment in capital lease | 6,346 | 6,448 | 6,499 | |||||||||
| Real estate related intangible assets, net | 25,640 | 28,498 | 24,840 | |||||||||
| Deferred financing costs, net | 829 | 890 | 913 | |||||||||
| Goodwill | 2,875 | 2,875 | 2,875 | |||||||||
| Other assets | 4,134 | 3,808 | 4,331 | |||||||||
| Other assets — held for sale | 142 | 146 | 151 | |||||||||
| Total assets | $ | 370,242 | $ | 378,385 | $ | 308,482 | ||||||
Liabilities and stockholders’ equity | ||||||||||||
| Notes payable under line of credit | $ | 85,850 | $ | 85,850 | $ | 19,600 | ||||||
| Mortgage loans | 143,119 | 144,019 | 139,374 | |||||||||
| Accounts payable and accrued liabilities | 6,653 | 5,966 | 4,857 | |||||||||
| Accrued dividends and distributions | 4,326 | 4,328 | — | |||||||||
| Acquired below market leases, net | 3,455 | 3,754 | 2,893 | |||||||||
| Other liabilities — held for sale | 1,256 | 1,263 | 1,272 | |||||||||
| Total liabilities | 244,659 | 245,180 | 167,996 | |||||||||
| Minority interests and stockholders’ equity | 125,583 | 133,205 | 140,486 | |||||||||
| Total liabilities and stockholders’ equity | $ | 370,242 | $ | 378,385 | $ | 308,482 | ||||||
5
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended | ||||||||
| June 30, 2006 | March 31, 2006 | |||||||
| Revenues: | ||||||||
| Rental | $ | 13,381 | $ | 11,717 | ||||
| Other | 597 | 895 | ||||||
| Total revenues | 13,978 | 12,612 | ||||||
| Expenses: | ||||||||
| Property operating | 4,855 | 4,234 | ||||||
| General and administrative | 1,580 | 1,855 | ||||||
| Depreciation and amortization | 7,466 | 6,460 | ||||||
| Interest | 3,393 | 2,391 | ||||||
| Total expenses | 17,294 | 14,940 | ||||||
| Loss from continuing operations before equity in earnings of unconsolidated real estate partnerships, minority interests in real estate partnership, and minority interests in Operating Partnership | (3,316 | ) | (2,328 | ) | ||||
| Equity in earnings of unconsolidated real estate partnerships | — | 5 | ||||||
| Minority interests in real estate partnership | (22 | ) | (31 | ) | ||||
| Minority interests in Operating Partnership | 1,177 | 831 | ||||||
| Loss from continuing operations | (2,161 | ) | (1,523 | ) | ||||
| Discontinued operations: | ||||||||
| Loss from discontinued operations | (7 | ) | (4 | ) | ||||
| Minority interests in Operating Partnership | 2 | 2 | ||||||
| Total discontinued operations | (5 | ) | (2 | ) | ||||
| Net loss | $ | (2,166 | ) | $ | (1,525 | ) | ||
| Basic and diluted loss per share | $ | (0.27 | ) | $ | (0.19 | ) | ||
Weighted average common shares — basic and diluted(1) | 7,975 | 7,973 | ||||||
| (1) | 25 shares of unvested restricted common stock are anti-dilutive to the net loss. |
6
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)
| Six Months Ended | ||||
| June 30, 2006 | ||||
| Revenues: | ||||
| Rental | $ | 25,098 | ||
| Other | 1,492 | |||
| Total revenues | 26,590 | |||
| Expenses: | ||||
| Property operating | 9,089 | |||
| General and administrative | 3,435 | |||
| Depreciation and amortization | 13,926 | |||
| Interest | 5,784 | |||
| Total expenses | 32,234 | |||
| Loss from continuing operations before equity in earnings of unconsolidated real estate partnerships, minority interests in real estate partnership, and minority interests in Operating Partnership | 5 | |||
| Equity in earnings of unconsolidated real estate partnerships | (5,644 | ) | ||
| Minority interests in real estate partnership | (53 | ) | ||
| Minority interests in Operating Partnership | 2,008 | |||
| Loss from continuing operations | (3,684 | ) | ||
| Discontinued operations: | ||||
| Loss from discontinued operations | (11 | ) | ||
| Minority interests in Operating Partnership | 4 | |||
| Total discontinued operations | (7 | ) | ||
| Net loss | $ | (3,691 | ) | |
| Basic and diluted loss per share | $ | (0.46 | ) | |
Weighted average common shares — basic and diluted (1) | 7,974 | |||
| (1) | 25 shares of unvested restricted common stock are anti-dilutive to the net loss. |
7
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Reconciliation of Net Loss to Funds from Operations(1)
(in thousands, except per share and unit amounts)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2006 | March 31, 2006 | June 30, 2006 | ||||||||||
| Net loss | $ | (2,166 | ) | $ | (1,525 | ) | $ | (3,691 | ) | |||
| Plus minority interests in Operating Partnership | (1,179 | ) | (833 | ) | (2,012 | ) | ||||||
Plus real estate related depreciation and amortization(2) | 7,433 | 6,430 | 13,863 | |||||||||
Funds from Operations (FFO)(1) | $ | 4,088 | $ | 4,072 | $ | 8,160 | ||||||
| FFO per share and unit — basic and diluted | $ | 0.33 | $ | 0.33 | $ | 0.66 | ||||||
| Weighted average shares and units outstanding — basic | 12,340 | 12,339 | 12,339 | |||||||||
| Weighted average shares and units outstanding — diluted | 12,362 | 12,364 | 12,364 | |||||||||
| (1) | As defined by the National Association of Real Estate Investment Trusts, or NAREIT, funds from operations, or FFO, represents net income (computed in accordance with generally accepted accounting principles, or GAAP), excluding gains from sales of property, plus real estate depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operational performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing a perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our performance, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. | |
| (2) | Real estate depreciation and amortization consists of depreciation and amortization from wholly-owned real estate properties of $7,414 and $13,826 and the Company’s share of joint venture real estate depreciation and amortization of $19 and $37 for the three and six months ended June 30, 2006, respectively. |
8
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Coverage Ratios
(in thousands, except ratio amounts)
| Three Months Ended | ||||
| June 30, 2006 | ||||
| Interest coverage ratio: | ||||
| EBITDA | $ | 7,582 | ||
| Cash paid for interest | $ | 3,499 | ||
| Interest coverage ratio | 2.2 | |||
| Fixed charge coverage ratio: | ||||
| EBITDA | $ | 7,582 | ||
| Fixed charges: | ||||
| Cash paid for interest | $ | 3,499 | ||
| Principal payments | 856 | |||
| Total fixed charges | $ | 4,355 | ||
| Fixed charge coverage ratio | 1.7 | |||
Reconciliation of Earnings Before Interest, Taxes,
Depreciation and Amortization (“EBITDA”)(1)
Depreciation and Amortization (“EBITDA”)(1)
(in thousands)
| Three Months Ended | Six Months Ended | |||||||
| June 30, 2006 | June 30, 2006 | |||||||
| Reconciliation of net loss to EBITDA: | ||||||||
| Net loss | $ | (2,166 | ) | $ | (3,691 | ) | ||
| Minority interests | (1,157 | ) | (1,959 | ) | ||||
| Interest expense | 3,414 | 5,824 | ||||||
| Depreciation and amortization | 7,491 | 13,977 | ||||||
| EBITDA | $ | 7,582 | $ | 14,151 | ||||
| (1) | We believe that earnings before interest, income taxes, depreciation and amortization, or EBITDA, adjusted for equity compensation charge at IPO, is a useful supplemental performance measure because it allows investors to view our performance without the impact of noncash depreciation and amortization or the cost of debt or minority interests. In addition, we believe that EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our performance is limited. Accordingly, EBITDA should be considered only as a supplement to net income (computed in accordance with GAAP) as a measure of our financial performance. Other equity REITs may calculate EBITDA differently than we do; accordingly, our EBITDA may not be comparable to such other equity REITs’ EBITDA. |
9
Cogdell Spencer inc.
Second Quarter 2006
Second Quarter 2006
Consolidated Debt Analysis as of June 30, 2006
(dollars in thousands)
| Stated | ||||||||||||||||||||
| interest | Interest | Principal | ||||||||||||||||||
| rate | Rate | Balance | Maturity | Amortization | ||||||||||||||||
| % | % | $ | Date | (Years) | ||||||||||||||||
Fixed rate secured mortgage loans — wholly-owned properties | ||||||||||||||||||||
| Baptist Northwest Medical Park | 8.25 | 8.25 | $ | 2,321 | 2/1/2011 | 25 | ||||||||||||||
| Barclay Downs | 6.50 | 6.50 | 4,550 | 11/15/2012 | 25 | |||||||||||||||
| Beaufort Medical Plaza | LIBOR + 0.95 | 6.76 | (1) | 5,212 | 8/18/2008 | 25 | ||||||||||||||
| Birkdale Medical Village | 6.75 | 6.75 | 7,690 | 10/1/2008 | 25 | |||||||||||||||
| East Jefferson Medical Office Building | 6.01 | 6.01 | 9,681 | 8/10/2014 | 25 | |||||||||||||||
| Gaston Professional Center | LIBOR + 1.25 | 4.50 | (1) | 16,962 | 11/22/2007 | 25 | ||||||||||||||
| Hanover Medical Office Building One | 6.00 | 6.00 | 5,148 | 11/1/2009 | 25 | |||||||||||||||
| Harrisburg Family Physicians Building, Lincoln/Lakemont Family Practice Center, Northcross Family Medical Practice Building and Randolph Medical Park | LIBOR + 1.85 | 6.67 | (1) | 8,884 | 12/10/2007 | 25 | ||||||||||||||
| Medical Arts Center of Orangeburg | 5.95 | 5.95 | 2,676 | 12/18/2007 | 20 | |||||||||||||||
| Mulberry Medical Park | 5.95 | 5.95 | 1,123 | 10/15/2006 | 20 | |||||||||||||||
| One Medical Park — HMOB | 5.93 | 5.93 | 5,841 | 11/1/2013 | 20 | |||||||||||||||
| Providence MOB I, II and III | 6.12 | 6.12 | 9,122 | 1/12/2013 | 25 | |||||||||||||||
| River Hills Medical Plaza | LIBOR + 2.00 | 5.63 | (1) | 3,115 | 11/30/2008 | 22 | ||||||||||||||
| Rocky Mount Kidney Center | 6.25 | 6.25 | 1,124 | 1/21/2009 | 20 | |||||||||||||||
| Rocky Mount Medical Park | Prime | 7.25 | (2) | 7,953 | 8/15/2008 | 25 | ||||||||||||||
| Roper MOB | LIBOR + 1.50 | 7.45 | (1) | 10,015 | 7/10/2009 | 18 | ||||||||||||||
| Rowan Outpatient Surgery Center | 6.00 | 6.00 | 3,512 | 7/6/2014 | 25 | |||||||||||||||
| Three Medical Park | 5.55 | 5.55 | 8,330 | 3/25/2014 | 25 | |||||||||||||||
Total / weighted average fixed rate secured mortgages | 6.16 | 113,259 | ||||||||||||||||||
Variable rate secured mortgage loans — wholly-owned properties | ||||||||||||||||||||
| Cabarrus Pediatrics, Copperfield Medical Mall, Harrisburg Medical Mall, Midland Medical Mall and Weddington Internal Pediatric Medicine | LIBOR + 1.50 | 6.85 | (3) | 10,279 | 12/15/2014 | 25 | ||||||||||||||
| St. Francis Community Medical Office Building, St. Francis MOB | LIBOR + 1.40 | 6.75 | 7,366 | 8/18/2007 | 25 | |||||||||||||||
| St. Francis Medical Plaza, St. Francis Women’s Center | LIBOR + 1.43 | 6.78 | 8,566 | 12/15/2006 | 25 | |||||||||||||||
Total / weighted average variable rate secured mortgages | 6.79 | 26,211 | ||||||||||||||||||
Unsecured line of credit | LIBOR + 1.30 | 6.58 | 85,850 | 10/31/2008 | ||||||||||||||||
Consolidated less than 50% owned real estate partnership | ||||||||||||||||||||
| Rocky Mount MOB LLC | 6.25 | 6.25 | 4,294 | 6/21/2007 | 25 | |||||||||||||||
| 229,614 | ||||||||||||||||||||
| Unamortized premium | 603 | |||||||||||||||||||
Total / weighted average debt | 6.39 | $ | 230,217 | |||||||||||||||||
| (1) | Represents the fixed rate for floating rate loans that have been swapped to fixed. | |
| (2) | Maximum interest of 7.25%; Minimum interest of 4.25% | |
| (3) | Maximum interest of 8.25%; Minimum interest of 3.25% |
10
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Consolidated Debt Analysis as of June 30, 2006 (continued)
(dollars in thousands)
| % of | Weighted Average | |||||||
| Total Debt | Maturity (Years) | |||||||
| Fixed rate mortgages | 51.2 | % | 3.93 | |||||
| Variable rate mortgages | 11.4 | % | 3.79 | |||||
| Unsecured line of credit | 37.4 | % | 2.34 | |||||
| 100.0 | % | 3.32 | ||||||
| Secured mortgage debt maturities and principal payments | ||||
| Remainder of 2006 | $ | 11,291 | ||
| 2007 | 39,187 | |||
| 2008 | 27,549 | |||
| 2009 | 16,440 | |||
| 2010 | 1,456 | |||
| Thereafter | 47,841 | |||
| $ | 143,764 | |||
| Unsecured line of credit — matures October 31, 2008 | ||||
| Facility | $ | 100,000 | ||
| Less: Outstanding at June 30, 2006 | 85,850 | |||
| Less: Letters of credit | 500 | |||
| Availability at June 30, 2006 | $ | 13,650 | ||
11
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Property Listing as June 30, 2006
| Net Rentable Square | Annualized | Annualized Rent Per | ||||||||||||||||||
| City | Feet | Occupancy Rate | Rent | Leased Square Foot | ||||||||||||||||
California | ||||||||||||||||||||
| Verdugo Professional Building I | Glendale | 63,887 | 96.0 | % | $ | 1,591,838 | $ | 25.95 | ||||||||||||
| Verdugo Professional Building II | Glendale | 42,906 | 95.4 | % | 1,153,180 | 28.17 | ||||||||||||||
| 106,793 | 95.8 | % | 2,745,018 | 26.83 | ||||||||||||||||
Georgia | ||||||||||||||||||||
| Augusta POB I | Augusta | 99,494 | 99.5 | % | 1,194,684 | 12.07 | ||||||||||||||
| Augusta POB II | Augusta | 125,634 | 100.0 | % | 2,731,684 | 21.74 | ||||||||||||||
| Augusta POB III | Augusta | 47,034 | 80.8 | % | 683,627 | 17.99 | ||||||||||||||
| Augusta POB IV | Augusta | 55,135 | 50.4 | % | 437,437 | 15.74 | ||||||||||||||
| 327,297 | 88.7 | % | 5,047,432 | 17.39 | ||||||||||||||||
Indiana | ||||||||||||||||||||
| Methodist Professional Center I | Indianapolis | 150,034 | 94.7 | % | 3,037,843 | 21.38 | ||||||||||||||
| Methodist Professional Center II (sub-lease) | Indianapolis | 24,080 | 100.0 | % | 583,164 | 24.22 | ||||||||||||||
| 174,114 | 95.4 | % | 3,621,007 | 21.80 | ||||||||||||||||
Kentucky | ||||||||||||||||||||
| Our Lady of Bellefonte | Ashland | 46,907 | 89.3 | % | 1,026,524 | 24.51 | ||||||||||||||
| Adjacent parking deck | 771,594 | |||||||||||||||||||
| 46,907 | 89.3 | % | 1,798,118 | 24.51 | (1) | |||||||||||||||
Louisiana | ||||||||||||||||||||
| East Jefferson Medical Office Building | Metairie | 119,921 | 100.0 | % | 2,317,504 | 19.33 | ||||||||||||||
| East Jefferson Medical Specialty Building | Metairie | 10,809 | 100.0 | % | 966,360 | 89.40 | ||||||||||||||
| 130,730 | 100.0 | % | 3,283,864 | 25.12 | ||||||||||||||||
North Carolina | ||||||||||||||||||||
| Barclay Downs | Charlotte | 38,395 | 100.0 | % | 770,980 | 20.08 | ||||||||||||||
| Birkdale Medical Village | Huntersville | 64,669 | 100.0 | % | 1,328,716 | 20.55 | ||||||||||||||
| Birkdale Retail | Huntersville | 8,269 | 100.0 | % | 186,980 | 22.61 | ||||||||||||||
| Cabarrus Pediatrics | Concord | 9,423 | 100.0 | % | 241,129 | 25.59 | ||||||||||||||
| Cabarrus POB | Concord | 84,972 | 89.2 | % | 1,569,000 | 20.70 | ||||||||||||||
| Copperfield Medical Mall | Concord | 26,000 | 100.0 | % | 569,924 | 21.92 | ||||||||||||||
| Copperfield MOB | Concord | 61,789 | 82.7 | % | 1,093,887 | 21.41 | ||||||||||||||
| East Rocky Mount Kidney Center | Rocky Mount | 8,043 | 100.0 | % | 166,572 | 20.71 | ||||||||||||||
| Gaston Professional Center | Gastonia | 114,956 | 100.0 | % | 2,563,433 | 22.30 | ||||||||||||||
| Adjacent parking deck | 610,005 | |||||||||||||||||||
| Harrisburg Family Physicians Building | Harrisburg | 8,202 | 100.0 | % | 202,671 | 24.71 | ||||||||||||||
| Harrisburg Medical Mall | Harrisburg | 18,360 | 100.0 | % | 446,695 | 24.33 | ||||||||||||||
| Lincoln/Lakemont Family Practice Center | Lincolnton | 16,500 | 100.0 | % | 359,115 | 21.76 | ||||||||||||||
| Mallard Crossing Medical Park | Charlotte | 52,540 | 84.9 | % | 1,062,377 | 23.82 | ||||||||||||||
| Midland Medical Mall | Midland | 14,610 | 100.0 | % | 384,243 | 26.30 | ||||||||||||||
| Mulberry Medical Park | Lenoir | 24,992 | 100.0 | % | 473,030 | 18.93 | ||||||||||||||
| Northcross Family Medical Practice Building | Charlotte | 8,018 | 100.0 | % | 211,916 | 26.43 | ||||||||||||||
| Randolph Medical Park | Charlotte | 84,131 | 89.3 | % | 1,659,974 | 22.09 | ||||||||||||||
| Rocky Mount Kidney Center | Rocky Mount | 10,105 | 100.0 | % | 193,005 | 19.10 | ||||||||||||||
| Rocky Mount Medical Park | Rocky Mount | 96,993 | 100.0 | % | 1,889,929 | 19.49 | ||||||||||||||
| Rowan Outpatient Surgery Center | Salisbury | 19,464 | 100.0 | % | 404,073 | 20.76 | ||||||||||||||
| Weddington Internal & Pediatric Medicine | Concord | 7,750 | 100.0 | % | 175,223 | 22.61 | ||||||||||||||
| 778,181 | 95.3 | % | 16,562,877 | 21.51 | (1) | |||||||||||||||
12
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Property Listing as June 30, 2006 (Continued)
| Net Rentable Square | Annualized | Annualized Rent Per | ||||||||||||||||||
| City | Feet | Occupancy Rate | Rent | Leased Square Foot | ||||||||||||||||
South Carolina | ||||||||||||||||||||
| 190 Andrews | Greenville | 22,898 | 100.0 | % | 419,981 | 18.34 | ||||||||||||||
| Baptist Northwest | Columbia | 38,703 | 96.2 | % | 685,199 | 18.40 | ||||||||||||||
| Beaufort Medical Plaza | Beaufort | 59,340 | 100.0 | % | 1,197,606 | 20.18 | ||||||||||||||
| Medical Arts Center of Orangeburg | Orangeburg | 49,321 | 100.0 | % | 855,543 | 17.35 | ||||||||||||||
| Mt. Pleasant MOB | Mt. Pleasant | 38,735 | 77.4 | % | 836,029 | 27.89 | ||||||||||||||
| One Medical Park — HMOB | Columbia | 69,840 | 100.0 | % | 1,528,232 | 21.88 | ||||||||||||||
| Providence MOB I | Columbia | 48,500 | 100.0 | % | 956,720 | 19.73 | ||||||||||||||
| Providence MOB II | Columbia | 23,280 | 100.0 | % | 426,328 | 18.31 | ||||||||||||||
| Providence MOB III | Columbia | 54,417 | 100.0 | % | 1,076,148 | 19.78 | ||||||||||||||
| River Hills Medical Plaza | Little River | 27,566 | 100.0 | % | 812,291 | 29.47 | ||||||||||||||
| Roper MOB | Charleston | 122,785 | 89.0 | % | 2,104,023 | 19.25 | ||||||||||||||
| St. Francis Community Medical Office Building | Greenville | 45,140 | 100.0 | % | 1,088,275 | 24.11 | ||||||||||||||
| St. Francis Medical Plaza | Greenville | 62,724 | 70.0 | % | 863,432 | 19.67 | ||||||||||||||
| St. Francis MOB | Greenville | 49,767 | 95.6 | % | 884,460 | 18.59 | ||||||||||||||
| St. Francis Women’s Center | Greenville | 57,590 | 78.7 | % | 919,312 | 20.28 | ||||||||||||||
| Three Medical Park | Columbia | 88,755 | 100.0 | % | 1,948,424 | 21.95 | ||||||||||||||
| West Medical I | Charleston | 28,734 | 100.0 | % | 719,433 | 25.04 | ||||||||||||||
| 888,095 | 93.6 | % | 17,321,436 | 20.84 | ||||||||||||||||
Virginia | ||||||||||||||||||||
| Hanover Medical Office Building I | Mechanicsville | 56,610 | 100.0 | % | 1,493,585 | 26.38 | ||||||||||||||
Total | 2,508,727 | 94.1 | % | $ | 51,873,337 | $ | 21.39 | (1) | ||||||||||||
| (1) Excludes annualized rent of adjacent parking decks to Our Lady of Bellefonte and Gaston Professional Center from calculation. |
13
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Property Occupancy Rates
| 6/30/2006 | 12/31/2005 | 12/31/2004 | 12/31/2003 | 12/31/2002 | ||||||||||||||||
California | ||||||||||||||||||||
| Verdugo Professional Building I | 96.0 | % | n/a | n/a | n/a | n/a | ||||||||||||||
| Verdugo Professional Building II | 95.4 | % | n/a | n/a | n/a | n/a | ||||||||||||||
Georgia | ||||||||||||||||||||
| Augusta POB I | 99.5 | % | 97.9 | % | 90.6 | % | 89.3 | % | 74.9 | % | ||||||||||
| Augusta POB II | 100.0 | % | 98.3 | % | 90.2 | % | 85.1 | % | 85.1 | % | ||||||||||
| Augusta POB III | 80.8 | % | 90.7 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Augusta POB IV | 50.4 | % | 89.6 | % | 89.6 | % | 89.6 | % | 89.6 | % | ||||||||||
Indiana | ||||||||||||||||||||
| Methodist Professional Center I | 94.7 | % | n/a | n/a | n/a | n/a | ||||||||||||||
| Methodist Professional Center II (sub-lease) | 100.0 | % | n/a | n/a | n/a | n/a | ||||||||||||||
Kentucky | ||||||||||||||||||||
| Our Lady of Bellefonte | 89.3 | % | 89.3 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Louisiana | ||||||||||||||||||||
| East Jefferson Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 98.9 | % | 97.7 | % | ||||||||||
| East Jefferson Medical Specialty Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
North Carolina | ||||||||||||||||||||
| Barclay Downs | 100.0 | % | 97.1 | % | 76.0 | % | 100.0 | % | n/a | |||||||||||
| Birkdale Medical Village | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Birkdale Retail | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Cabarrus Pediatrics | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Cabarrus POB | 89.2 | % | 98.4 | % | 96.1 | % | 95.7 | % | 100.0 | % | ||||||||||
| Copperfield Medical Mall | 100.0 | % | 100.0 | % | n/a | n/a | n/a | |||||||||||||
| Copperfield MOB | 82.7 | % | 82.7 | % | n/a | n/a | n/a | |||||||||||||
| East Rocky Mount Kidney Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Gaston Professional Center | 100.0 | % | 100.0 | % | 100.0 | % | 97.8 | % | 97.2 | % | ||||||||||
| Harrisburg Family Physicians Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Harrisburg Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Lincoln/Lakemont Family Practice Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mallard Crossing Medical Park | 84.9 | % | 92.8 | % | 92.8 | % | 92.8 | % | 100.0 | % | ||||||||||
| Midland Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mulberry Medical Park | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Northcross Family Medical Practice Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Randolph Medical Park | 89.3 | % | 89.9 | % | 97.4 | % | 97.4 | % | 100.0 | % | ||||||||||
| Rocky Mount Kidney Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Rocky Mount Medical Park | 100.0 | % | 95.8 | % | 95.8 | % | 92.8 | % | 92.8 | % | ||||||||||
| Rowan Outpatient Surgery Center | 100.0 | % | 100.0 | % | 100.0 | % | n/a | n/a | ||||||||||||
| Weddington Internal & Pediatric Medicine | 100.0 | % | 100.0 | % | 100.0 | % | n/a | n/a | ||||||||||||
14
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Property Occupancy Rates (Continued)
| 6/30/2006 | 12/31/2005 | 12/31/2004 | 12/31/2003 | 12/31/2002 | ||||||||||||||||
South Carolina | ||||||||||||||||||||
| 190 Andrews | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Baptist Northwest | 96.2 | % | 96.2 | % | 96.2 | % | 96.2 | % | 92.4 | % | ||||||||||
| Beaufort Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Medical Arts Center of Orangeburg | 100.0 | % | 97.3 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mt. Pleasant MOB | 77.4 | % | 77.4 | % | 77.4 | % | 72.5 | % | 72.5 | % | ||||||||||
| One Medical Park — HMOB | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 93.9 | % | ||||||||||
| Providence MOB I | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Providence MOB II | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Providence MOB III | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| River Hills Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 92.8 | % | ||||||||||
| Roper MOB | 89.0 | % | 89.0 | % | 88.4 | % | 96.5 | % | 96.0 | % | ||||||||||
| St. Francis Community Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 93.9 | % | 93.9 | % | ||||||||||
| St. Francis Medical Plaza | 70.0 | % | 94.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| St. Francis MOB | 95.6 | % | 95.6 | % | 100.0 | % | 95.6 | % | 95.6 | % | ||||||||||
| St. Francis Women’s Center | 78.7 | % | 76.2 | % | 96.4 | % | 96.4 | % | 96.4 | % | ||||||||||
| Three Medical Park | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| West Medical I | 100.0 | % | 100.0 | % | 77.6 | % | n/a | n/a | ||||||||||||
Virginia | ||||||||||||||||||||
| Hanover Medical Office Building I | 100.0 | % | n/a | n/a | n/a | n/a | ||||||||||||||
15
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Lease Expirations for Leases In Place at June 30, 2006
| Percentage of Net | Percentage of | |||||||||||||||||||||||
| Number of | Net Rentable Square | Rentable Square | Annualized | Property Annualized | Annualized Rent Per | |||||||||||||||||||
| Leases Expiring | Feet | Feet | Rent | Rent | Leased Square Foot | |||||||||||||||||||
| Available | — | 148,297 | 5.9 | % | $ | — | — | $ | — | |||||||||||||||
| 2006 | 129 | 358,395 | 14.3 | % | 7,389,058 | 14.2 | % | 20.62 | ||||||||||||||||
| 2007 | 88 | 305,666 | 12.2 | % | 6,535,362 | 12.6 | % | 21.38 | ||||||||||||||||
| 2008 | 101 | 329,599 | 13.1 | % | 6,276,391 | 12.1 | % | 19.04 | ||||||||||||||||
| 2009 | 81 | 309,560 | 12.3 | % | 6,710,980 | 12.9 | % | 21.68 | ||||||||||||||||
| 2010 | 70 | 325,694 | 13.0 | % | 6,714,749 | 12.9 | % | 20.62 | ||||||||||||||||
| 2011 | 26 | 117,559 | 4.7 | % | 2,465,787 | 4.8 | % | 20.97 | ||||||||||||||||
| 2012 | 50 | 329,907 | 13.2 | % | 8,742,874 | 16.9 | % | 22.31 | (1) | |||||||||||||||
| 2013 | 7 | 54,448 | 2.2 | % | 1,100,813 | 2.1 | % | 20.22 | ||||||||||||||||
| 2014 | 15 | 121,266 | 4.8 | % | 2,699,748 | 5.2 | % | 22.26 | ||||||||||||||||
| 2015 | 11 | 30,041 | 1.2 | % | 793,795 | 1.5 | % | 26.42 | ||||||||||||||||
| Thereafter | 12 | 78,295 | 3.1 | % | 2,443,760 | 4.7 | % | 31.21 | ||||||||||||||||
| Total | 590 | 2,508,727 | 100.0 | % | $ | 51,873,317 | 100.0 | % | $ | 21.39 | (1) | |||||||||||||
| (1) | Excludes annualized rent of adjacent parking decks to Our Lady of Bellefonte and Gaston Professional Center from calculation. |
Ten Largest Tenants by Annualized Rent
| Tenant | Annualized Rent | Percent of Portfolio | ||||||||
| 1 | NorthEast Medical Center | $ | 3,317,326 | 6.4 | % | |||||
| 2 | Palmetto Health Alliance | 2,216,294 | 4.3 | % | ||||||
| 3 | Carolinas HealthCare System | 1,884,859 | 3.6 | % | ||||||
| 4 | Gaston Memorial Hospital | 1,855,695 | 3.6 | % | ||||||
| 5 | University Hospital (Augusta, GA) | 1,720,814 | 3.3 | % | ||||||
| 6 | Our Lady of Bellefonte Hospital | 1,502,671 | 2.9 | % | ||||||
| 7 | Boice-Willis Clinic | 1,388,725 | 2.7 | % | ||||||
| 8 | Bon Secours St. Francis Hospital | 1,221,431 | 2.4 | % | ||||||
| 9 | East Jefferson General Hospital | 1,069,965 | 2.1 | % | ||||||
| 10 | Clarian Health Partners, Inc. | 858,644 | 1.7 | % | ||||||
| $ | 17,036,424 | 33.0 | % | |||||||
Capital Expenditures
(in thousands)
| Three Months Ended | ||||||||
| June 30, 2006 | March 31, 2006 | |||||||
| Capital expenditures: | ||||||||
| Recurring capital expenditures | $ | 84 | $ | 240 | ||||
| Planned capital expenditures associated with property acquisitions | 795 | 136 | ||||||
| Second generation tenant improvements | 287 | 433 | ||||||
| Total capital expenditures | $ | 1,166 | $ | 809 | ||||
16
Cogdell Spencer Inc.
Second Quarter 2006
Second Quarter 2006
Acquisitions for the period January 1, 2006 through June 30, 2006
(dollars in thousands)
| Net Rentable | ||||||||||||||||
| Property | Location | Date Acquired | Square Feet | Occupancy Rate | Purchase Price | |||||||||||
| Methodist Professional Center | Indianapolis, IN | 2/15/2006 | 174,114 | 94.7 | % | $ | 39,864 | |||||||||
| Verdugo Professional Building I | Glendale, CA | 3/30/2006 | 63,887 | 96.0 | % | 10,352 | ||||||||||
| Verdugo Professional Building II | Glendale, CA | 3/30/2006 | 42,906 | 100.0 | % | 13,723 | ||||||||||
| Hanover Medical Office Building I | Mechanicsville, VA | 3/30/2006 | 56,610 | 100.0 | % | 12,000 | ||||||||||
Total | 337,517 | 96.5 | % | $ | 75,939 | |||||||||||
Construction in Progress as of June 30, 2006
(dollars in thousands)
| Estimated | Net Rentable | Investment | Estimated Total | |||||||||||||||||
| Property | Location | Completion Date | Square Feet | to Date | Investment | Percentage Leased | ||||||||||||||
| Carolina Forest Medical Plaza | Horry County, SC | 2Q 2007 | 39,000 | $ | 1,241 | $ | 7,425 | 43.2 | % | |||||||||||
| Lancaster Rehabilitation Hospital | Lancaster, PA | 2Q 2007 | 52,800 | 609 | 12,720 | 100.0 | % | |||||||||||||
| Land and pre-construction developments | — | 753 | — | |||||||||||||||||
| 91,800 | $ | 2,603 | $ | 20,145 | ||||||||||||||||
17