SUPPLEMENTAL OPERATING AND
FINANCIAL DATA
FINANCIAL DATA
FOR THE QUARTER ENDED
December 31, 2008
December 31, 2008
Medical Center Physicians Tower – Jackson, Tenneesee
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 offer to sell or solicitation to buy securities of
Cogdell Spencer Inc. shall be made only by means of a prospectus approved for that purpose.
This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to
buy securities of Cogdell Spencer Inc. Any offer to sell or solicitation to buy securities of
Cogdell Spencer Inc. shall be made only by means of a prospectus approved for that purpose.
Company Overview
Cogdell Spencer Inc. (the “Company”) 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 offices and ambulatory surgery and diagnostic centers. The Company focuses on the ownership, development, redevelopment, acquisition, and management of strategically located medical office buildings and other healthcare related facilities in the United States of America. The Company has been built around understanding and addressing the specialized real estate needs of the healthcare industry.
In March 2008, the Company acquired Marshall Erdman & Associates, Inc., now operating as Erdman, A Cogdell Spencer Company (“Erdman”), a subsidiary of Cogdell Spencer Inc. The Company, a fully integrated healthcare facilities company, provides services from strategic planning to long-term property ownership and management. Integrated delivery service offerings include architecture, engineering, construction and capital project development.
The Company is building a national portfolio of healthcare properties located on hospital campuses. Since the Company’s initial public offering in 2005, the Company has acquired properties in five new states and multiple new markets. During the year ended December 31, 2008, the Company acquired two off-market acquisitions that were a result of strong relationships with existing clients. Client relationships and advanced planning services provided by Erdman also give the Company the ability to be included in the initial project discussions that can lead to ownership and investment in healthcare properties.
The Company’s capital projects team completed Alamance Regional Mebane Outpatient Center in 2008 and broke ground on Cancer Center expansion in early 2009. Additional capital projects that have been announced recently include The Woodlands in Pensacola, Florida and The Medical Center Physicians Tower in Jackson, Tennessee.
Since its founding in 1951, Erdman has designed, engineered, or built over 5,000 healthcare facilities, which support more than 50,000 physicians. Erdman was ranked as the number one healthcare design-build firm for 2007 byModern Healthcare’s2008 Construction and Design Survey.
Since its founding in 1951, Erdman has designed, engineered, or built over 5,000 healthcare facilities, which support more than 50,000 physicians. Erdman was ranked as the number one healthcare design-build firm for 2007 byModern Healthcare’s2008 Construction and Design Survey.
1
The Company’s property management team, Cogdell Spencer Advisors, has a proactive, customer-focused service approach that leads to faster response times and greater resources to serve tenants. The Company’s management believes that a strong internal property management capability is a vital component of the Company’s business, both for the properties that the Company owns and for those that the Company manages. During 2008, the Company continued celebrations with the “Celebrating 25 Years” Campaign, which recognizes the long-term relationships between the Company and its healthcare system clients and partners. Celebrating clients in 2008 include Palmetto Health and Sisters of Charity Providence Hospital in Columbia, South Carolina.
As of December 31, 2008, the Company owned or managed healthcare properties located in 13 states and had regional offices located throughout the country to support property management and design-build services. The majority of the Company’s wholly-owned properties are located on hospital campuses.
2
Cogdell Spencer Inc.
Investor Information
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 | Scott A. Ransom | |||
| Chief Financial Officer | President — Erdman | |||||
Christopher E. Lee | David J. Lubar | |||||
Richard C. Neugent | Scott A. Ransom | |||||
Randolph D. Smoak, M.D. | ||||||
| Equity Research Coverage | ||
Merrill Lynch/Banc of America Securities | KeyBanc Capital Markets | |
| Dustin Pizzo – 212.847.5771 | Karin Ford – 917.368.2293 | |
BMO Capital Markets | Raymond James & Associates | |
| Richard Anderson – 212.885.4180 | Paul Puryear – 727.567.2253 | |
Janney Montgomery Scott | SmithBarney Citigroup | |
| Stephanie Krewson – 215.665.6385 | Michael Bilerman – 212.816.1383 | |
| 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 | Company | 704.940.2904 | |||||
| Tel: 704.940.2900 | New York Stock Exchange | |||||||
| Fax: 704.940.2957 | ||||||||
| www.cogdellspencer.com | ||||||||
This supplemental operating and financial data 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: our business strategy; our ability to integrate Erdman; our ability to obtain future financing arrangements; estimates relating to our future distributions; our understanding of our competition; our ability to renew our ground leases; changes in the reimbursement available to our tenants by government or private payors; our tenants’ ability to make rent payments; defaults by tenants; market trends; and projected capital expenditures. 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 Form 10-K for the year ended December 31, 2007, and Form 10-Q for the quarter ended June 30, 2008. 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.
3
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Financial and Operating Highlights
(in thousands, except per share amounts, years, ratios and portfolio statistics)
| Three Months | Year Ended | |||||||
| Ended | Ended | |||||||
| December 31, | December 31, | |||||||
| 2008 | 2008 | |||||||
Selected Operating Data | ||||||||
| Rental income | $ | 19,870 | $ | 76,541 | ||||
| Straight line rent | 146 | 569 | ||||||
| Fair value lease revenues (1) | 161 | 689 | ||||||
| Rental revenue | 20,177 | 77,799 | ||||||
| Property management and other fees | 935 | 3,460 | ||||||
| Revenue from property operations | $ | 21,112 | $ | 81,259 | ||||
| Costs related to property operations | $ | 7,972 | $ | 31,376 | ||||
| Property operations gross margin | 62 | % | 61 | % | ||||
| Design-Build and development revenue | $ | 78,860 | $ | 254,481 | ||||
| Costs related to design-build revenue and other sales | $ | 67,112 | $ | 214,019 | ||||
| Design-Build and development gross margin | 15 | % | 16 | % | ||||
EBITDA(2) | $ | 15,207 | $ | 60,110 | ||||
| Interest expense | $ | (6,463 | ) | $ | (25,159 | ) | ||
| Net loss | $ | (1,042 | ) | $ | (5,773 | ) | ||
| Net loss per share — diluted | $ | (0.06 | ) | $ | (0.37 | ) | ||
Funds from Operations (“FFO”)(3) | $ | 5,691 | $ | 21,380 | ||||
FFO per share and unit — diluted(3) | $ | 0.21 | $ | 0.89 | ||||
Funds from Operations Modified (“FFOM”)(3) | $ | 8,081 | $ | 29,363 | ||||
FFOM per share and unit — diluted(3) | $ | 0.30 | $ | 1.22 | ||||
| Distributions declared per share and unit | $ | 0.225 | $ | 1.275 | ||||
| As of | ||||
| December 31, | ||||
| 2008 | ||||
Selected Balance Sheet Data | ||||
| Cash and cash equivalents | $ | 34,668 | ||
| Book value of real estate assets before depreciation | $ | 547,246 | ||
| Total assets | $ | 900,090 | ||
| Total liabilities | $ | 617,096 | ||
| Minority interests and stockholders’ equity | $ | 282,994 | ||
Debt | ||||
| Weighted average interest rate | 4.8 | % | ||
| Weighted average remaining maturity (years) | 3.3 | |||
| Debt / total assets | 52 | % | ||
| As of | ||||
| December 31, 2008 | ||||
Capitalization | ||||
| Common shares outstanding | 17,699 | |||
| Units outstanding | 9,246 | |||
| Total common shares and units outstanding | 26,945 | |||
| Share price at end of period | $ | 9.36 | ||
Equity value at end of period(4) | $ | 252,205 | ||
| Debt | $ | 465,236 | ||
| Total market capitalization | $ | 717,441 | ||
Portfolio Statistics — In-service, Consolidated Properties | ||||
| Number of properties | 61 | |||
| Total square footage | 3,275,968 | |||
| Occupancy | 92.4 | % | ||
| (1) | Represents the net adjustment for above and below market leases which are being amortized over the remaining term of the respective lease 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, FFOM, 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.
Fourth Quarter 2008
Fourth Quarter 2008
Condensed Consolidated Balance Sheets
(in thousands)
(un0udited)
| December 31, 2008 | September 30, 2008 | June 30, 2008 | March 31, 2008 | December 31, 2007 | ||||||||||||||||
Assets | ||||||||||||||||||||
| Real estate properties: | ||||||||||||||||||||
| Operating real estate properties | $ | 531,932 | $ | 529,495 | $ | 526,937 | $ | 508,203 | $ | 486,279 | ||||||||||
| Less: Accumulated depreciation | (69,285 | ) | (63,154 | ) | (56,974 | ) | (50,805 | ) | (44,596 | ) | ||||||||||
| Total operating real estate properties, net | 462,647 | 466,341 | 469,963 | 457,398 | 441,683 | |||||||||||||||
| Construction in process | 15,314 | 10,672 | 2,889 | 16,600 | 13,380 | |||||||||||||||
| Total operating real estate properties, net | 477,961 | 477,013 | 472,852 | 473,998 | 455,063 | |||||||||||||||
| Cash and cash equivalents | 34,668 | 10,637 | 5,088 | 13,581 | 3,555 | |||||||||||||||
| Restricted cash | 12,964 | 18,388 | 18,078 | 22,874 | 1,803 | |||||||||||||||
| Tenant and accounts receivable | 43,523 | 42,924 | 49,827 | 53,124 | 2,249 | |||||||||||||||
| Goodwill and intangible assets, net | 301,767 | 308,423 | 313,151 | 321,922 | 31,589 | |||||||||||||||
| Other assets | 29,207 | 27,689 | 30,558 | 27,729 | 11,978 | |||||||||||||||
| Total assets | $ | 900,090 | $ | 885,074 | $ | 889,554 | $ | 913,228 | $ | 506,237 | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Mortgage notes payable | $ | 240,736 | $ | 234,497 | $ | 242,033 | $ | 241,105 | $ | 237,504 | ||||||||||
| Revolving credit facility | 124,500 | 90,000 | 114,000 | 116,000 | 79,200 | |||||||||||||||
| Term Loan | 100,000 | 100,000 | 100,000 | 100,000 | — | |||||||||||||||
| Accounts payable | 22,090 | 23,185 | 29,028 | 31,607 | 5,817 | |||||||||||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 17,025 | 27,616 | 32,796 | 38,875 | — | |||||||||||||||
| Deferred income taxes | 34,176 | 40,302 | 40,107 | 42,893 | 217 | |||||||||||||||
| Payable to prior MEA Inc. shareholders | 18,002 | 24,003 | 24,003 | 32,405 | — | |||||||||||||||
| Other liabilities | 60,567 | 47,751 | 40,359 | 37,900 | 21,243 | |||||||||||||||
| Total liabilities | 617,096 | 587,354 | 622,326 | 640,785 | 343,981 | |||||||||||||||
| Minority interests and stockholders’ equity | 282,994 | 297,720 | 267,228 | 272,443 | 162,256 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 900,090 | $ | 885,074 | $ | 889,554 | $ | 913,228 | $ | 506,237 | ||||||||||
5
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, 2008 | September 30, 2008 | June 30, 2008 | March 31,2008 | December 31, 2007 | ||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental revenue | $ | 20,177 | $ | 19,631 | $ | 19,300 | $ | 18,691 | $ | 17,685 | ||||||||||
| Design-Build contract revenue and other sales | 78,726 | 72,914 | 78,021 | 23,936 | — | |||||||||||||||
| Property management and other fees | 935 | 852 | 835 | 841 | 864 | |||||||||||||||
| Development management and other income | 134 | 622 | 110 | 19 | 14 | |||||||||||||||
| Total revenues | 99,972 | 94,019 | 98,266 | 43,487 | 18,563 | |||||||||||||||
| Expenses: | ||||||||||||||||||||
| Property operating and management | 7,972 | 8,370 | 7,841 | 7,199 | 6,937 | |||||||||||||||
| Costs related to design-build contract revenue and other sales | 67,112 | 59,578 | 66,286 | 21,043 | — | |||||||||||||||
| Selling, general, and administrative | 9,819 | 7,599 | 8,488 | 4,306 | 2,075 | |||||||||||||||
| Depreciation and amortization | 11,741 | 11,871 | 12,380 | 9,025 | 7,094 | |||||||||||||||
| Total expenses | 96,644 | 87,418 | 94,995 | 41,573 | 16,106 | |||||||||||||||
| Income from operations before other income (expense) | 3,328 | 6,601 | 3,271 | 1,914 | 2,457 | |||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest and other income, net | 239 | 210 | 218 | 255 | 309 | |||||||||||||||
| Interest expense | (6,463 | ) | (6,743 | ) | (6,857 | ) | (5,096 | ) | (4,640 | ) | ||||||||||
| Equity in earnings of unconsolidated partnerships | 4 | 10 | 5 | 3 | 23 | |||||||||||||||
| Total other income (expense) | (6,220 | ) | (6,523 | ) | (6,634 | ) | (4,838 | ) | (4,308 | ) | ||||||||||
| Income (loss) from operations before income tax (expense) benefit | (2,892 | ) | 78 | (3,363 | ) | (2,924 | ) | (1,851 | ) | |||||||||||
| Income tax (expense) benefit | 1,387 | (883 | ) | 383 | 358 | 34 | ||||||||||||||
| Loss from operations | (1,505 | ) | (805 | ) | (2,980 | ) | (2,566 | ) | (1,817 | ) | ||||||||||
| Minority interests in real estate partnerships | (105 | ) | (920 | ) | 48 | 13 | (30 | ) | ||||||||||||
| Minority interests in operating partnership | 568 | 639 | 1,089 | 752 | 512 | |||||||||||||||
| Net loss | $ | (1,042 | ) | $ | (1,086 | ) | $ | (1,843 | ) | $ | (1,801 | ) | $ | (1,335 | ) | |||||
| Per share data — basic and diluted: | ||||||||||||||||||||
| Net loss — basic and diluted | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.13 | ) | $ | (0.11 | ) | |||||
Weighted average common shares — basic and diluted(1) | 17,577 | 15,747 | 15,393 | 14,364 | 11,935 | |||||||||||||||
| (1) | Shares of unvested restricted common stock are anti-dilutive due to the net loss. |
6
Cogdell Spencer Inc.
Fourth Quarter 2008
Business Segment Reporting
(in thousands)
(unaudited)
| Design-Build | ||||||||||||||||
| Property | and | Unallocated | ||||||||||||||
| Three months ended December 31, 2008: | Operations | Development | and Other | Total | ||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenue | $ | 20,177 | $ | — | $ | — | $ | 20,177 | ||||||||
| Design-Build contract revenue and other sales | — | 78,726 | — | 78,726 | ||||||||||||
| Property management and other fees | 935 | — | — | 935 | ||||||||||||
| Development management and other income | — | 134 | — | 134 | ||||||||||||
| Total revenues | 21,112 | 78,860 | — | 99,972 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Property operating and management | 7,972 | — | — | 7,972 | ||||||||||||
| Costs related to design-build revenue and other sales | — | 67,112 | — | 67,112 | ||||||||||||
| Selling, general, and administrative | — | 7,593 | — | 7,593 | ||||||||||||
| Total operating expenses | 7,972 | 74,705 | — | 82,677 | ||||||||||||
| 13,140 | 4,155 | — | 17,295 | |||||||||||||
| Interest and other income, net | 142 | 12 | 85 | 239 | ||||||||||||
| Corporate general and administrative expenses | — | — | (2,226 | ) | (2,226 | ) | ||||||||||
| Interest expense | — | — | (6,463 | ) | (6,463 | ) | ||||||||||
| Provision for income taxes applicable to funds from operations modified | — | — | (140 | ) | (140 | ) | ||||||||||
| Non-real estate related depreciation and amortization | — | (359 | ) | (57 | ) | (416 | ) | |||||||||
| Earnings from unconsolidated real estate partnerships, before real estate related depreciation and amortization | 7 | — | — | 7 | ||||||||||||
| Minority interests in real estate partnerships, before real estate related depreciation and amortization | (215 | ) | — | — | (215 | ) | ||||||||||
| Funds from operations modified (FFOM) | 13,074 | 3,808 | (8,801 | ) | 8,081 | |||||||||||
| Amortization of intangibles related to purchase accounting, net of income tax benefit | (42 | ) | (3,875 | ) | 1,527 | (2,390 | ) | |||||||||
| Funds from operations (FFO) | 13,032 | (67 | ) | (7,274 | ) | 5,691 | ||||||||||
| Real estate related depreciation and amortization | (7,301 | ) | — | — | (7,301 | ) | ||||||||||
| Minority interests in operating partnership | — | — | 568 | 568 | ||||||||||||
| Net income (loss) | $ | 5,731 | $ | (67 | ) | $ | (6,706 | ) | $ | (1,042 | ) | |||||
7
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Reconciliation of Net Loss to Funds from Operations and Funds from Operations Modified(1)
(in thousands, except per share and unit amounts)
(unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, 2008 | September 30, 2008 | June 30, 2008 | March 31, 2008 | December 31, 2007 | ||||||||||||||||
| Net loss | $ | (1,042 | ) | $ | (1,086 | ) | $ | (1,843 | ) | $ | (1,801 | ) | $ | (1,335 | ) | |||||
| Plus minority interests in operating partnership | (568 | ) | (639 | ) | (1,089 | ) | (752 | ) | (512 | ) | ||||||||||
Plus real estate related depreciation and amortization(2) | 7,301 | 7,494 | 7,707 | 7,700 | 6,959 | |||||||||||||||
Funds from Operations (FFO)(1) | 5,691 | 5,769 | 4,775 | 5,147 | 5,112 | |||||||||||||||
| Plus amortization of intangibles related to purchase accounting, net of tax benefit | 2,390 | 2,390 | 2,551 | 648 | 26 | |||||||||||||||
Funds from Operations Modified (FFOM)(1) | $ | 8,081 | $ | 8,159 | $ | 7,326 | $ | 5,795 | $ | 5,138 | ||||||||||
| FFO per share and unit — basic and diluted | $ | 0.21 | $ | 0.23 | $ | 0.20 | $ | 0.26 | $ | 0.31 | ||||||||||
| FFOM per share and unit — basic and diluted | $ | 0.30 | $ | 0.33 | $ | 0.30 | $ | 0.29 | $ | 0.31 | ||||||||||
| Weighted average shares and units outstanding — basic | 26,766 | 24,861 | 24,348 | 19,972 | 16,506 | |||||||||||||||
| Weighted average shares and units outstanding — diluted | 26,890 | 24,993 | 24,486 | 19,985 | 16,519 | |||||||||||||||
| (1) | FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFOM adds back to traditionally defined FFO non-cash amortization of non-real estate related intangible assets associated with purchase accounting. The Company presents FFO and FFOM because it considers them important supplemental measures of operational performance. The Company believes FFO 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. The Company computes 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 and FFOM do 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 and FFOM should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of the Company’s performance, nor are they indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions. | |
| (2) | Real estate depreciation and amortization consists of depreciation and amortization from wholly-owned real estate properties and the Company’s share of real estate depreciation and amortization from consolidated and unconsolidated real estate partnerships. |
8
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Coverage Ratios
(in thousands, except ratio amounts)
(in thousands, except ratio amounts)
| Three Months Ended | ||||
| December 31, 2008 | ||||
| Interest coverage ratio: | ||||
| EBITDA | $ | 15,207 | ||
| Cash paid for interest | $ | 6,006 | ||
| Interest coverage ratio | 2.5 | |||
| Fixed charge coverage ratio: | ||||
| EBITDA | $ | 15,207 | ||
| Fixed charges: | ||||
| Cash paid for interest | $ | 6,006 | ||
| Principal payments | 853 | |||
| Total fixed charges | $ | 6,859 | ||
| Fixed charge coverage ratio | 2.2 | |||
Reconciliation of Earnings Before Interest,
Taxes, Depreciation, and Amortization (“EBITDA”)(1)
(in thousands)
(in thousands)
| Three Months Ended | Year Ended | |||||||
| December 31, 2008 | December 31, 2008 | |||||||
| Reconciliation of net loss to EBITDA: | ||||||||
| Net loss | $ | (1,042 | ) | $ | (5,773 | ) | ||
| Minority interests | (568 | ) | (3,048 | ) | ||||
| Interest expense | 6,463 | 25,159 | ||||||
| Income tax benefit | (1,387 | ) | (1,244 | ) | ||||
| Depreciation and amortization | 11,741 | 45,016 | ||||||
| EBITDA | $ | 15,207 | $ | 60,110 | ||||
| (1) | The Company believes that earnings before interest, income taxes, depreciation and amortization, or EBITDA, is a useful supplemental performance measure because it allows investors to view the Company’s performance without the impact of noncash depreciation and amortization or the cost of debt or minority interests. In addition, the Company believes 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 the Company’s business, its utility as a measure of the Company’s performance is limited. Accordingly, EBITDA should be considered only as a supplement to net loss (computed in accordance with GAAP) as a measure of financial performance. Other equity REITs may calculate EBITDA differently; accordingly, the Company’s EBITDA may not be comparable to such other equity REITs’ EBITDA. |
9
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Consolidated Debt Analysis as of December 31, 2008
(dollars in thousands)
(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 | $ | 2,190 | 2/1/2011 | 25 | ||||||||||||||
| Barclay Downs | 6.50 | 6.50 | 4,470 | 11/15/2012 | 25 | |||||||||||||||
| Beaufort Medical Plaza | LIBOR + 1.85 | 5.65 | (1) | 4,890 | 8/18/2011 | 39 | ||||||||||||||
| Central New York Medical Center | 6.22 | 6.22 | 24,500 | 5/15/2017 | Interest only | |||||||||||||||
| East Jefferson Medical Office Building | 6.01 | 6.01 | 9,188 | 8/10/2014 | 25 | |||||||||||||||
| East Jefferson Medical Plaza | LIBOR + 3.75 | 5.55 | 11,600 | 1/31/2012 | Interest only | |||||||||||||||
| Genesis Property Holding (Pensacola) | LIBOR + 1.50 | 4.71 | 1,702 | 9/26/2018 | Interest only | |||||||||||||||
| Hanover Medical Office Building One | 6.00 | 6.00 | 4,818 | 11/1/2009 | 25 | |||||||||||||||
| Healthpark Medical Office Building | 5.35 | 5.35 | 8,700 | 1/1/2010 | Interest only | |||||||||||||||
| Medical Arts Center of Orangeburg | 7.00 | 7.00 | 2,442 | 3/15/2009 | 20 | |||||||||||||||
| Methodist Professional Center I | LIBOR + 1.30 | 6.25 | (1) | 30,000 | 10/31/2009 | Interest only | ||||||||||||||
| Mulberry Medical Park | 6.49 | 6.49 | 989 | 4/15/2010 | 20 | |||||||||||||||
| One Medical Park — HMOB | 5.93 | 5.93 | 5,324 | 11/1/2013 | 20 | |||||||||||||||
| Parkridge MOB | 5.68 | 5.68 | 13,500 | 6/1/2017 | Interest only (4) | |||||||||||||||
| Peerless Medical Center | 6.06 | 6.06 | 7,449 | 9/1/2016 | 30 | |||||||||||||||
| Providence MOB I, II and III | 6.12 | 6.12 | 8,572 | 1/12/2013 | 25 | |||||||||||||||
| River Hills Medical Plaza | LIBOR + 3.75 | 5.53 | (1) | 4,000 | 12/22/2011 | 22 | ||||||||||||||
| Rocky Mount Kidney Center | 6.25 | 6.25 | 1,032 | 4/21/2009 | 20 | |||||||||||||||
| Roper MOB | LIBOR + 1.50 | 6.45 | (1) | 9,188 | 7/10/2009 | 18 | ||||||||||||||
| Rowan Outpatient Surgery Center | 6.00 | 6.00 | 3,322 | 7/6/2014 | 25 | |||||||||||||||
| St. Francis CMOB, St. Francis MOB | LIBOR + 1.85 | 5.17 | (1) | 7,053 | 6/15/2011 | 39 | ||||||||||||||
| St. Francis Medical Plaza, St. Francis Women’s Center | LIBOR + 1.85 | 5.17 | (1) | 7,575 | 6/15/2011 | 39 | ||||||||||||||
| Summit Professional Plaza I and II | 6.18 | 6.18 | 15,925 | 9/1/2017 | Interest only | |||||||||||||||
| Three Medical Park | 5.55 | 5.55 | 7,879 | 3/25/2014 | 25 | |||||||||||||||
Total / weighted average fixed rate secured mortgages | 5.97 | 196,308 | ||||||||||||||||||
Variable rate secured mortgage loans - wholly-owned properties | ||||||||||||||||||||
| Copperfield Medical Mall, Harrisburg Medical Mall, | ||||||||||||||||||||
| Midland Medical Mall and Weddington Internal | ||||||||||||||||||||
| Pediatric Medicine | LIBOR + 1.50 | 3.25 | (2) | 8,505 | 12/15/2014 | 25 | ||||||||||||||
| Rocky Mount Medical Park | Prime | 4.25 | (3) | 7,306 | 12/15/2010 | 25 | ||||||||||||||
Total / weighted average variable rate secured mortgages | 3.71 | 15,811 | ||||||||||||||||||
Secured revolving credit facility | LIBOR + 1.15 | 1.59 | 94,500 | 3/10/2011 | Interest only | |||||||||||||||
| LIBOR + 1.15 | 4.26 | (1) | 30,000 | 3/10/2011 | Interest only | |||||||||||||||
| 2.23 | 124,500 | |||||||||||||||||||
Term loan | LIBOR + 3.50 | 6.32 | (1) | 100,000 | 3/10/2011 | Interest only | ||||||||||||||
Consolidated real estate partnerships | ||||||||||||||||||||
| Cogdell Health Campus MOB, LP | LIBOR + 1.20 | 5.23 | (1) | 10,843 | 3/2/2015 | 25 | ||||||||||||||
| Mebane Medical Investors, LLC (construction loan) | LIBOR + 1.30 | 1.74 | 12,200 | 5/1/2010 | Interest only (5) | |||||||||||||||
| Rocky Mount MOB LLC | 6.03 | 6.03 | 5,362 | 3/1/2012 | 25 | |||||||||||||||
Total / weighted average consolidated real estate partnerships | 3.88 | 28,405 | ||||||||||||||||||
| 465,024 | ||||||||||||||||||||
| Unamortized premium | 212 | |||||||||||||||||||
Total / weighted average debt | 4.84 | $ | 465,236 | |||||||||||||||||
| (1) | Represents the fixed rate for floating rate loans that have been swapped to fixed. | |
| (2) | Maximum interest of 8.25%; minimum interest of 3.25%. | |
| (3) | Maximum interest of 7.25%; minimum interest of 4.25%. | |
| (4) (5) | Interest only through June 2012. Principal and interest payments from July 2012 through June 2017. Interest only through May 2009. Principal and interest payments from June 2009 through May 2010. |
10
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Consolidated Debt Analysis as of December 31, 2008 (continued)
(dollars in thousands)
(dollars in thousands)
| % of | Weighted Average | |||||||
| Total Debt | Maturity (Years) | |||||||
| Fixed rate mortgages | 42.2 | % | 4.4 | |||||
| Variable rate mortgages | 3.4 | % | 4.1 | |||||
| Secured credit facility | 26.8 | % | 2.2 | |||||
| Term loan | 21.5 | % | 2.2 | |||||
| Consolidated real estate partnerships | 6.1 | % | 3.5 | |||||
| 100.0 | % | 3.3 | ||||||
Future maturities and principal payments
| 2009 | $ | 50,577 | (1) | |
| 2010 | 31,708 | |||
| 2011 | 250,898 | |||
| 2012 | 23,137 | |||
| 2013 | 13,861 | |||
| Thereafter | 94,843 | |||
| $ | 465,024 | |||
| (1) | The Methodist Professional Center I $30,000 mortgage note payable has two one-year extention options at the Company’s election. |
Secured credit facility — matures March 10, 2011
| Facility | $ | 150,000 | ||
| Less: Outstanding | 124,500 | |||
| Less: Letters of credit | 8,048 | |||
| Availability | $ | 17,452 | ||
| Capitalized interest -4Q 2008 | $ | 47 | ||
11
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Property Listing as of December 31, 2008
| Annualized Rent | ||||||||||||||||||
| Net Rentable | Occupancy | Annualized | Per Leased | |||||||||||||||
| Location | Square Feet | Rate | Rent | Square Foot | ||||||||||||||
California | ||||||||||||||||||
| Verdugo Professional Building I | Glendale | 63,887 | 92.6 | % | $ | 1,812,088 | $ | 30.64 | ||||||||||
| Verdugo Professional Building II | Glendale | 42,906 | 88.6 | % | 1,213,656 | 31.92 | ||||||||||||
| 106,793 | 91.0 | % | 3,025,744 | 31.14 | ||||||||||||||
Georgia | ||||||||||||||||||
| Augusta POB I | Augusta | 99,494 | 92.7 | % | 1,265,312 | 13.71 | ||||||||||||
| Augusta POB II | Augusta | 125,634 | 95.1 | % | 2,582,154 | 21.60 | ||||||||||||
| Augusta POB III | Augusta | 47,034 | 100.0 | % | 926,246 | 19.69 | ||||||||||||
| Augusta POB IV | Augusta | 55,134 | 88.9 | % | 877,504 | 17.90 | ||||||||||||
| Summit Professional Plaza I | Brunswick | 33,039 | 93.5 | % | 808,505 | 26.18 | ||||||||||||
| Summit Professional Plaza II | Brunswick | 64,233 | 96.7 | % | 1,792,144 | 28.84 | ||||||||||||
| 424,568 | 94.4 | % | 8,251,865 | 20.58 | ||||||||||||||
Indiana | ||||||||||||||||||
Methodist Professional Center I(3) | Indianapolis | 150,035 | 99.0 | % | 3,455,621 | 23.26 | ||||||||||||
| Methodist Professional Center II (sub-lease) | Indianapolis | 24,080 | 100.0 | % | 616,647 | 25.61 | ||||||||||||
| 174,115 | 99.2 | % | 4,072,268 | 23.58 | ||||||||||||||
Kentucky | ||||||||||||||||||
| Our Lady of Bellefonte | Ashland | 46,907 | 95.9 | % | 1,153,258 | 25.63 | ||||||||||||
| Adjacent parking deck | 875,205 | |||||||||||||||||
| 46,907 | 95.9 | % | 2,028,463 | 25.63 | ||||||||||||||
Louisiana | ||||||||||||||||||
| East Jefferson Medical Office Building | Metairie | 119,921 | 100.0 | % | 2,551,870 | 21.28 | ||||||||||||
| East Jefferson Medical Plaza | Metairie | 123,184 | 100.0 | % | 2,787,654 | 22.63 | ||||||||||||
| East Jefferson Medical Specialty Building | Metairie | 10,809 | 100.0 | % | 968,693 | 89.62 | ||||||||||||
| 253,914 | 100.0 | % | 6,308,217 | 24.84 | ||||||||||||||
New York | ||||||||||||||||||
Central New York Medical Center(4) | Syracuse | 111,634 | 96.7 | % | 2,960,608 | 27.42 | ||||||||||||
North Carolina | ||||||||||||||||||
| Barclay Downs | Charlotte | 38,395 | 100.0 | % | 843,386 | 21.97 | ||||||||||||
| Birkdale Medical Village | Huntersville | 64,669 | 100.0 | % | 1,405,737 | 21.74 | ||||||||||||
| Birkdale Retail | Huntersville | 8,269 | 100.0 | % | 214,442 | 25.93 | ||||||||||||
| Cabarrus POB | Concord | 84,972 | 95.0 | % | 1,808,948 | 22.41 | ||||||||||||
| Copperfield Medical Mall | Concord | 26,000 | 100.0 | % | 589,518 | 22.67 | ||||||||||||
| Copperfield MOB | Concord | 61,789 | 87.9 | % | 1,250,799 | 23.04 | ||||||||||||
| East Rocky Mount Kidney Center | Rocky Mount | 8,043 | 100.0 | % | 165,956 | 20.63 | ||||||||||||
| Gaston Professional Center | Gastonia | 114,956 | 100.0 | % | 2,725,698 | 23.71 | ||||||||||||
| Adjacent parking deck | 606,141 | |||||||||||||||||
| Harrisburg Family Physicians Building | Harrisburg | 8,202 | 100.0 | % | 215,591 | 26.29 | ||||||||||||
| Harrisburg Medical Mall | Harrisburg | 18,360 | 100.0 | % | 471,708 | 25.69 | ||||||||||||
| Lincoln/Lakemont Family Practice Center | Lincolnton | 16,500 | 100.0 | % | 382,674 | 23.19 | ||||||||||||
| Mallard Crossing Medical Park | Charlotte | 52,540 | 62.9 | % | 825,306 | 24.97 | ||||||||||||
| Midland Medical Mall | Midland | 14,610 | 100.0 | % | 415,726 | 28.45 | ||||||||||||
| Mulberry Medical Park | Lenoir | 24,992 | 85.4 | % | 433,002 | 20.30 | ||||||||||||
| Northcross Family Medical Practice Building | Charlotte | 8,018 | 100.0 | % | 225,390 | 28.11 | ||||||||||||
| Randolph Medical Park | Charlotte | 84,131 | 67.6 | % | 1,213,739 | 21.34 | ||||||||||||
| Rocky Mount Kidney Center | Rocky Mount | 10,105 | 100.0 | % | 204,728 | 20.26 | ||||||||||||
Rocky Mount Medical Office Building(1) | Rocky Mount | 35,393 | 95.7 | % | 871,907 | 25.75 | ||||||||||||
| Rocky Mount Medical Park | Rocky Mount | 96,993 | 100.0 | % | 1,956,518 | 20.17 | ||||||||||||
| Rowan Outpatient Surgery Center | Salisbury | 19,464 | 100.0 | % | 424,549 | 21.81 | ||||||||||||
| Weddington Internal & Pediatric Medicine | Concord | 7,750 | 100.0 | % | 189,977 | 24.51 | ||||||||||||
| 804,151 | 92.1 | % | 17,441,440 | 22.74 | (2) | |||||||||||||
12
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Property Listing as of December 31, 2008
| Annualized Rent | ||||||||||||||||||
| Net Rentable | Occupancy | Annualized | Per Leased | |||||||||||||||
| Location | Square Feet | Rate | Rent | Square Foot | ||||||||||||||
Pennsylvania | ||||||||||||||||||
| Lancaster Rehabilitation Hospital | Lancaster | 52,878 | 100.0 | % | 1,320,404 | 24.97 | ||||||||||||
Lancaster General Health Campus MOB(1) | Lancaster | 64,214 | 93.1 | % | 1,644,663 | 27.50 | ||||||||||||
| 117,092 | 96.2 | % | 2,965,067 | 26.31 | ||||||||||||||
South Carolina | ||||||||||||||||||
| 190 Andrews | Greenville | 25,902 | 100.0 | % | 598,580 | 23.11 | ||||||||||||
| Baptist Northwest | Columbia | 38,703 | 41.3 | % | 336,517 | 21.04 | ||||||||||||
| Beaufort Medical Plaza | Beaufort | 59,340 | 100.0 | % | 1,235,351 | 20.82 | ||||||||||||
| Carolina Forest | Myrtle Beach | 38,902 | 43.5 | % | 470,377 | 27.82 | ||||||||||||
| Mary Black Westside MOB | Spartanburg | 37,455 | 100.0 | % | 783,520 | 20.92 | ||||||||||||
| Medical Arts Center of Orangeburg | Orangeburg | 49,324 | 92.9 | % | 862,554 | 18.82 | ||||||||||||
| Mt. Pleasant MOB | Mt. Pleasant | 38,735 | 77.4 | % | 758,909 | 25.32 | ||||||||||||
| One Medical Park — HMOB | Columbia | 69,840 | 80.3 | % | 1,301,733 | 23.21 | ||||||||||||
| Parkridge MOB | Columbia | 89,451 | 95.5 | % | 2,024,819 | 23.69 | ||||||||||||
| Providence MOB I | Columbia | 48,500 | 94.7 | % | 980,985 | 21.37 | ||||||||||||
| Providence MOB II | Columbia | 23,280 | 100.0 | % | 469,446 | 20.17 | ||||||||||||
| Providence MOB III | Columbia | 54,417 | 73.4 | % | 870,217 | 21.77 | ||||||||||||
| River Hills Medical Plaza | Little River | 27,566 | 100.0 | % | 878,682 | 31.88 | ||||||||||||
| Roper MOB | Charleston | 122,785 | 100.0 | % | 2,502,921 | 20.38 | ||||||||||||
| St. Francis Community Medical Office Building | Greenville | 45,140 | 100.0 | % | 1,239,997 | 27.47 | ||||||||||||
| St. Francis Medical Office Building | Greenville | 49,767 | 100.0 | % | 1,058,037 | 21.26 | ||||||||||||
| St. Francis Medical Plaza | Greenville | 62,724 | 63.5 | % | 781,534 | 19.62 | ||||||||||||
| St. Francis Women’s Center | Greenville | 57,590 | 73.4 | % | 868,506 | 20.56 | ||||||||||||
| Three Medical Park | Columbia | 88,755 | 93.8 | % | 1,903,798 | 22.86 | ||||||||||||
| West Medical I | Charleston | 28,734 | 100.0 | % | 777,309 | 27.05 | ||||||||||||
| 1,056,910 | 87.2 | % | 20,703,792 | 22.47 | ||||||||||||||
Tennessee | ||||||||||||||||||
| Healthpark Medical Office Building | Chattanooga | 52,151 | 100.0 | % | 1,906,526 | 36.56 | ||||||||||||
| Peerless Medical Center | Cleveland | 40,506 | 100.0 | % | 1,183,991 | 29.23 | ||||||||||||
| 92,657 | 100.0 | % | 3,090,517 | 33.35 | ||||||||||||||
Virginia | ||||||||||||||||||
| Hanover Medical Office Building I | Mechanicsville | 56,610 | 96.6 | % | 1,491,672 | 27.27 | ||||||||||||
| St. Mary’s Medical Office Building North | Richmond | 30,617 | 90.1 | % | 689,445 | 25.00 | ||||||||||||
| 87,227 | 94.3 | % | 2,181,117 | 26.51 | ||||||||||||||
Total | 3,275,968 | 92.4 | % | $ | 73,029,098 | $ | 23.64 | (2) | ||||||||||
| (1) | Consolidated real estate partnership. | |
| (2) | Excludes annualized rent of adjacent parking decks to Our Lady of Bellefonte and Gaston Professional Center from calculation. | |
| (3) | Parking revenue from an adjacent parking deck is approximately $96,000 per month, or $1,152,000 annualized. | |
| (4) | Parking revenue from an adjacent parking deck is approximately $100,000 per month, or $1,200,000 annualized. |
13
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Property Occupancy Rates
| 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | ||||||||||||||||||||||
California | ||||||||||||||||||||||||||||
| Verdugo Professional Building I | 92.6 | % | 94.5 | % | 96.3 | % | 96.3 | % | 94.2 | % | 94.2 | % | 94.2 | % | ||||||||||||||
| Verdugo Professional Building II | 88.6 | % | 88.6 | % | 88.6 | % | 86.5 | % | 86.5 | % | 82.4 | % | 83.8 | % | ||||||||||||||
Georgia | ||||||||||||||||||||||||||||
| Augusta POB I | 92.7 | % | 77.4 | % | 92.0 | % | 94.0 | % | 91.6 | % | 92.9 | % | 91.6 | % | ||||||||||||||
| Augusta POB II | 95.1 | % | 93.2 | % | 93.2 | % | 93.2 | % | 93.2 | % | 93.2 | % | 93.2 | % | ||||||||||||||
| Augusta POB III | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 90.0 | % | ||||||||||||||
| Augusta POB IV | 88.9 | % | 97.1 | % | 97.1 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Summit Professional Plaza I | 93.5 | % | 93.5 | % | 93.5 | % | 93.5 | % | 93.5 | % | 93.5 | % | n/a | |||||||||||||||
| Summit Professional Plaza II | 96.7 | % | 96.7 | % | 96.7 | % | 96.7 | % | 96.0 | % | 96.0 | % | n/a | |||||||||||||||
Indiana | ||||||||||||||||||||||||||||
| Methodist Professional Center I | 99.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 92.8 | % | 94.7 | % | ||||||||||||||
| Methodist Professional Center II (sub-lease) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Kentucky | ||||||||||||||||||||||||||||
| Our Lady of Bellefonte | 95.9 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Louisiana | ||||||||||||||||||||||||||||
| East Jefferson Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 96.3 | % | 96.3 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| East Jefferson Medical Plaza | 100.0 | % | 100.0 | % | 99.2 | % | 99.2 | % | n/a | n/a | n/a | |||||||||||||||||
| East Jefferson Medical Specialty Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
New York | ||||||||||||||||||||||||||||
| Central New York Medical Center | 96.7 | % | 96.7 | % | 93.1 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
North Carolina | ||||||||||||||||||||||||||||
| Barclay Downs | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Birkdale Medical Village | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Birkdale Retail | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Cabarrus POB | 95.0 | % | 92.7 | % | 98.2 | % | 98.2 | % | 98.2 | % | 98.2 | % | 96.6 | % | ||||||||||||||
| Copperfield Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Copperfield MOB | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | ||||||||||||||
| East Rocky Mount Kidney Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Gaston Professional Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Harrisburg Family Physicians Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Harrisburg Medical Mall | 100.0 | % | 100.0 | % | 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 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Mallard Crossing Medical Park | 62.9 | % | 62.9 | % | 62.9 | % | 94.1 | % | 94.1 | % | 94.1 | % | 89.5 | % | ||||||||||||||
| Midland Medical Mall | 100.0 | % | 100.0 | % | 92.1 | % | 92.1 | % | 92.1 | % | 92.1 | % | 92.1 | % | ||||||||||||||
| Mulberry Medical Park | 85.4 | % | 85.4 | % | 94.8 | % | 94.8 | % | 85.4 | % | 85.2 | % | 85.2 | % | ||||||||||||||
| Northcross Family Medical Practice Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Randolph Medical Park | 67.6 | % | 62.1 | % | 60.6 | % | 60.9 | % | 60.9 | % | 92.8 | % | 94.0 | % | ||||||||||||||
| Rocky Mount Medical Office Building | 100.0 | % | 100.0 | % | 10.0 | % | 100.0 | % | 95.7 | % | 89.6 | % | 89.6 | % | ||||||||||||||
| Rocky Mount Kidney Center | 95.7 | % | 95.7 | % | 95.7 | % | 95.7 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Rocky Mount Medical Park | 100.0 | % | 100.0 | % | 100.0 | % | 96.9 | % | 96.9 | % | 96.9 | % | 96.9 | % | ||||||||||||||
| Rowan Outpatient Surgery Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Weddington Internal & Pediatric Medicine | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
14
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Property Occupancy Rates (Continued)
| 12/31/2008 | 9/30/2008 | 6/30/2008 | 3/31/2008 | 12/31/2007 | 9/30/2007 | 6/30/2007 | ||||||||||||||||||||||
Pennsylvania | ||||||||||||||||||||||||||||
| Lancaster Rehabilitation Hospital | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Lancaster Health Campus MOB | 93.1 | % | 93.1 | % | 92.9 | % | 87.8 | % | 87.8 | % | n/a | n/a | ||||||||||||||||
South Carolina | ||||||||||||||||||||||||||||
| 190 Andrews | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Baptist Northwest | 41.3 | % | 41.3 | % | 45.1 | % | 52.7 | % | 52.7 | % | 52.7 | % | 52.7 | % | ||||||||||||||
| Beaufort Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Carolina Forest | 43.5 | % | 43.5 | % | 43.5 | % | n/a | n/a | n/a | n/a | ||||||||||||||||||
| Mary Black Westside MOB | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Medical Arts Center of Orangeburg | 92.9 | % | 92.9 | % | 92.9 | % | 99.4 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Mt. Pleasant MOB | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | ||||||||||||||
| One Medical Park — HMOB | 80.3 | % | 80.3 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Parkridge MOB | 95.5 | % | 95.5 | % | 94.6 | % | 94.6 | % | 94.6 | % | 94.6 | % | 94.6 | % | ||||||||||||||
| Providence MOB I | 94.7 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Providence MOB II | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Providence MOB III | 73.4 | % | 73.4 | % | 73.4 | % | 73.4 | % | 69.2 | % | 69.2 | % | 69.2 | % | ||||||||||||||
| River Hills Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Roper MOB | 100.0 | % | 97.3 | % | 93.7 | % | 87.0 | % | 92.6 | % | 92.6 | % | 90.6 | % | ||||||||||||||
| St. Francis Community Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| St. Francis Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 87.0 | % | 87.0 | % | 100.0 | % | 95.9 | % | ||||||||||||||
| St. Francis Medical Plaza | 63.5 | % | 61.7 | % | 61.7 | % | 61.7 | % | 61.7 | % | 61.7 | % | 53.1 | % | ||||||||||||||
| St. Francis Women’s Center | 73.4 | % | 73.4 | % | 71.3 | % | 76.5 | % | 79.4 | % | 78.0 | % | 61.4 | % | ||||||||||||||
| Three Medical Park | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | ||||||||||||||
| West Medical I | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Tennessee | ||||||||||||||||||||||||||||
| Healthpark Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | n/a | n/a | ||||||||||||||||
| Peerless Medical Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | n/a | n/a | ||||||||||||||||
Virginia | ||||||||||||||||||||||||||||
| Hanover Medical Office Building I | 96.6 | % | 96.6 | % | 92.6 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| St. Mary’s Medical Office Building North | 90.1 | % | 90.1 | % | 90.1 | % | 90.1 | % | n/a | n/a | n/a | |||||||||||||||||
15
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Lease Expirations for Leases In Place at December 31, 2008
| Percentage of Net | Percentage of | Annualized Rent | ||||||||||||||||||||||
| Number of | Net Rentable | Rentable Square | Annualized | Property | Per Leased | |||||||||||||||||||
| Leases Expiring | Square Feet | Feet | Rent | Annualized Rent | Square Foot | |||||||||||||||||||
| Available | — | 248,864 | 7.6 | % | $ | — | — | $ | — | |||||||||||||||
| 2009 | 143 | 437,722 | 13.4 | % | 9,911,643 | 13.6 | % | 22.64 | ||||||||||||||||
| 2010 | 113 | 455,382 | 13.9 | % | 10,101,187 | 13.8 | % | 22.18 | ||||||||||||||||
| 2011 | 81 | 303,982 | 9.3 | % | 6,841,232 | 9.4 | % | 22.51 | ||||||||||||||||
| 2012 | 125 | 593,286 | 18.1 | % | 15,585,774 | 21.3 | % | 23.77 | (1) | |||||||||||||||
| 2013 | 70 | 321,540 | 9.8 | % | 6,895,374 | 9.4 | % | 21.44 | ||||||||||||||||
| 2014 | 46 | 258,453 | 7.9 | % | 6,209,970 | 8.5 | % | 24.03 | ||||||||||||||||
| 2015 | 24 | 78,875 | 2.4 | % | 1,964,468 | 2.7 | % | 24.91 | ||||||||||||||||
| 2016 | 11 | 53,007 | 1.6 | % | 1,192,224 | 1.6 | % | 22.49 | ||||||||||||||||
| 2017 | 32 | 227,859 | 7.0 | % | 6,365,874 | 8.7 | % | 27.94 | ||||||||||||||||
| 2018 | 10 | 43,181 | 1.3 | % | 1,058,935 | 1.5 | % | 24.52 | ||||||||||||||||
| Thereafter | 16 | 253,817 | 7.7 | % | 6,902,417 | 9.5 | % | 27.19 | ||||||||||||||||
| Total | 671 | 3,275,968 | 100.0 | % | $ | 73,029,098 | 100.0 | % | $ | 23.64 | (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 at December 31, 2008
| Tenant | Annualized Rent | Percent of Portfolio | ||||||||||
| 1 | Carolinas HealthCare System | $ | 5,494,419 | 7.5 | % | |||||||
| 2 | Palmetto Health Alliance | 2,987,482 | 4.1 | % | ||||||||
| 3 | Bon Secours St. Francis Hospital | 2,360,821 | 3.2 | % | ||||||||
| 4 | University Hospital (Augusta, GA) | 2,045,156 | 2.8 | % | ||||||||
| 5 | Gaston Memorial Hospital | 2,006,401 | 2.7 | % | ||||||||
| 6 | Jefferson Parish Hospital District #2 | 1,871,977 | 2.6 | % | ||||||||
| 7 | Our Lady of Bellefonte Hospital | 1,681,655 | 2.3 | % | ||||||||
| 8 | Boice-Willis Clinic | 1,505,553 | 2.1 | % | ||||||||
| 9 | Southeast Georgia Health System | 1,383,981 | 1.9 | % | ||||||||
| 10 | Galen Medical Group | 1,375,013 | 1.9 | % | ||||||||
| $ | 22,712,458 | 31.1 | % | |||||||||
Capital Expenditures
(in thousands)
(in thousands)
| Three Months Ended | ||||||||||||||||||||
| Dec. 31, 2008 | Sept. 30, 2008 | June 30, 2008 | March 31, 2008 | Dec. 31, 2007 | ||||||||||||||||
| Capital expenditures: | ||||||||||||||||||||
| Recurring capital expenditures | $ | 822 | $ | 392 | $ | 783 | $ | 633 | $ | 1,354 | ||||||||||
| Planned capital expenditures associated with property acquisitions | 5 | 268 | 299 | 24 | 82 | |||||||||||||||
| Second generation tenant improvements | 422 | 1,105 | 1,362 | 833 | 837 | |||||||||||||||
| Total capital expenditures | $ | 1,249 | $ | 1,765 | $ | 2,444 | $ | 1,490 | $ | 2,273 | ||||||||||
16
Cogdell Spencer Inc.
Fourth Quarter 2008
Fourth Quarter 2008
Acquisitions and Completed Developments for the period January 1, 2007 through December 31, 2008
(dollars in thousands)
(dollars in thousands)
| Date | Purchase Price | |||||||||||||||
| Acquired / | Net Rentable | / Construction | ||||||||||||||
| Property | Location | Type | In-service | Square Feet | Cost | |||||||||||
| Central New York Medical Center | Syracuse, NY | Acquisition | 6/29/2007 | 111,634 | $ | 35,965 | ||||||||||
| Lancaster Rehabilitation Hospital | Lancaster, PA | Development | 2Q 2007 | 52,878 | 11,747 | |||||||||||
| Summit Professional Plaza I | Brunswick, GA | Acquisition | 8/30/2007 | 33,039 | 7,822 | |||||||||||
| Summit Professional Plaza II | Brunswick, GA | Acquisition | 8/30/2007 | 64,233 | 16,485 | |||||||||||
Lancaster General Health Campus MOB(1) | Lancaster, PA | Development | 3Q 2007 | 62,214 | 13,700 | |||||||||||
| Healthpark Medical Office Building | Chattanooga, TN | Acquisition | 12/21/2007 | 52,151 | 16,370 | |||||||||||
| Peerless Medical Center | Cleveland, TN | Acquisition | 12/21/2007 | 40,506 | 11,993 | |||||||||||
Total 2007 | 416,655 | $ | 114,082 | |||||||||||||
| St. Mary’s Medical Office Building North | Richmond, VA | Acquisition | 2/22/2008 | 30,617 | 4,449 | |||||||||||
| East Jefferson Medical Plaza | Metairie, LA | Acquisition | 2/28/2008 | 123,184 | 19,765 | |||||||||||
| Carolina Forest Medical Plaza | Horry County, SC | Development | 2Q 2008 | 38,902 | 7,540 | |||||||||||
Total 2008 | 153,801 | $ | 24,213 | |||||||||||||
| (1) | Owned by Cogdell Health Campus MOB, LP, which is a consolidated real estate partnership. The Company had an 81% ownership interest at December 31, 2008. |
Construction in Progress as of December 31, 2008
(dollars in thousands)
| Estimated | ||||||||||||||||||||
| Estimated | Net Rentable | Investment | Total | Percentage | ||||||||||||||||
| Property | Location | Completion Date | Square Feet | to Date | Investment | Leased | ||||||||||||||
| St. Luke’s Riverside MOB | Bethlehem, PA | 2nd Half 2010 | 170,000 | $ | 1,240 | $ | 38,900 | 45.0 | % | |||||||||||
The Woodlands Center(1) | Pensacola, FL | 4Q 2009 | 76,000 | 8,969 | 24,769 | 100.0 | % | |||||||||||||
| Medical Center Physicians Tower | Jackson, TN | 1Q 2010 | 107,000 | 416 | 21,100 | 75.0 | % | |||||||||||||
| Land and pre-construction developments | — | 4,689 | — | |||||||||||||||||
| 353,000 | $ | 15,314 | $ | 84,769 | ||||||||||||||||
| (1) | Owned by Genesis Property Holding, LLC, which is a consolidated real estate partnership. The Company expects to have a 40.0% ownership upon completion. |
Lease-up Property as of December 31, 2008
(dollars in thousands)
| Estimated | ||||||||||||||||||||
| Net Rentable | Investment | Total | Percentage | |||||||||||||||||
| Property | Location | Completion Date | Square Feet | to Date | Investment | Leased | ||||||||||||||
Alamance Regional Mebane Outpatient Ctr(1) | Mebane, NC | 2Q 2008 | 59,678 | $ | 15,864 | $ | 16,200 | 66.9 | % | |||||||||||
| (1) | Owned by Mebane Medical Investors, LLC, which is a consolidated real estate partnership. The Company had a 35.1% ownership interest at December 31, 2008. |
17