Cogdell Spencer 8K Announces First Quarter 2011 Results | SEC 5 May 11

Exhibit 99.2

TABLE OF CONTENTS


1. Investor Information			1

2. Summary			2

3. Capitalization			3

4. Condensed Consolidated Balance Sheets			4

5. Condensed Consolidated Statements of Operations			5

6. Business Segment Reporting			6

7. Reconciliation of Net Income (Loss) to FFO and FFOM			7

8. Coverage Ratios			8

9. Reconciliation of Earnings to EBITDA			9

10. Consolidated Debt Analysis			10

11. Property Summary			14

12. Property Listing			15

13. Property Occupancy Rates			18

14. Tenant Lease Expirations			21

15. Ten Largest Tenants			22

16. Ground & Air Rights Leases			23

17. Pipeline			24

18. Inter-company Profit Elimination Example			25

19. Acquisitions, Completed Developments, & Properties in Lease-up			26

20. Development Construction and Capital Expenditures			27

INVESTOR
INFORMATION

Board of Directors


James W. Cogdell		Raymond W. Braun
Chairman		President & CEO

John R. Georgius		Richard B. Jennings

Christopher E. Lee		David J. Lubar

Richard C. Neugent		Scott A. Ransom

Randolph D. Smoak, Jr. M.D.

Executive Management


Raymond W. Braun	Brian L. Happ	Rex A. Noble
Chief Executive Officer & President	Executive VP & Chief Operating Officer	Executive VP Portfolio Management

Charles M. Handy	Andrea L. Hopkins	Sal G. Parente
Executive VP & Chief Financial Officer	VP Human Resources	Executive VP Business Development

Equity Research Coverage


BMO Capital Markets	Jefferies & Co.	Raymond James & Associates
Richard Anderson — 212.885.4180	Tayo Okusanya — 212.336.7076	Paul Puryear — 727.567.2253

Janney Montgomery Scott	KeyBanc Capital Markets	SmithBarney Citigroup
Dan Donlan — 215.665.6476	Karin Ford — 917.368.2293	Quentin Velleley — 212.816.6981

Company Information


Corporate Headquarters	Trading Symbol	Transfer Agent
4401 Barclay Downs, Drive Suite 300	CSA	Continental Stock Transfer &
Charlotte, NC 28209		Trust Company
Tel: 704.940.2900	Stock Exchange Listing
Fax: 704.940.2959	New York Stock Exchange	Investor Relations
www.cogdell.com		Jaime Buell — 704.940.2929

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 our 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 comply with financial covenants in our debt instruments; 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; customers’ access to financing; delays in project starts and cancellations by customers; market trends; and projected capital expenditures. For a further list and description of such risks and uncertainties, see our reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2010. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be realized. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SUMMARY


	For 3 Months Ended
(in thousands, except per share amounts and portfolio statistics)	March 31, 2011			March 31, 2010
Revenue	$	39,144		$	57,602
EBITDA⁽¹⁾		10,822			19,144
Net income (loss) attributable to Cogdell Spencer Inc. common shareholders		(3,130	)		3,286
Net income (loss) per share attributable to Cogdell Spencer Inc. common shareholders	$	(0.06	)	$	0.08

FFOM attributable to common shareholders and operating partnership unitholders⁽²⁾	$	3,574		$	11,149

Per share and operating partnership unit data:
FFOM attributable to common shareholders and operating partnership unitholders⁽²⁾	$	0.06		$	0.22

Debt / Gross Assets⁽³⁾		45	%		45	%

Portfolio statistics:
Number of properties		67			64
Total square footage		3,730,242			3,527,139


(1)		For a definition and discussion and a quantitative reconciliation of the differences between EBITDA and net income (loss), see page 9.

(2)		For a definition, discussion, and a quantitative reconciliation of the differences between FFOM and net income (loss), see page 7. For a detailed listing of non-recurring events and impairment charges, see FFO reconciliation on page 7.

(3)		Gross Assets represents total assets before accumulated depreciation and amortization.

(4)		In service, consolidated properties.

CAPITALIZATION

(in thousands, except per share amounts)


	March 31, 2011
	Shares/Units		Share Price		Value
Common Stock		51,042	$	5.94	$	303,189
Common Operating Partnership Units		7,417		5.94		44,057
Preferred Stock		2,940		24.68		72,559

Equity value						419,805
Consolidated debt						374,419

Market capitalization					$	794,224

CONDENSED CONSOLIDATED
BALANCE SHEETS

(in thousands)
(unaudited)


	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Assets
Real estate properties:
Operating real estate properties	$	641,712		$	634,291		$	632,844		$	616,154		$	582,050
Less: Accumulated depreciation		(125,610	)		(119,141	)		(112,581	)		(106,004	)		(99,544	)

Total real estate properties, net		516,102			515,150			520,263			510,150			482,506
Construction in process		29,985			22,243			15,120			7,951			29,401

Total real estate properties, net		546,087			537,393			535,383			518,101			511,907
Cash and cash equivalents		17,235			12,203			16,028			31,196			18,544
Restricted cash		6,784			6,794			11,649			7,888			3,215
Tenant and accounts receivable, net		10,247			11,383			9,656			8,070			11,502
Goodwill		22,882			22,882			102,195			102,195			108,683
Trade names and trademarks		—			—			34,093			34,093			41,240
Intangible assets, net		18,418			18,601			20,025			18,670			20,185
Other assets		28,162			23,684			23,642			24,018			24,724
Other assets — held for sale		—			—			—			—			2,243

Total assets	$	649,815		$	632,940		$	752,671		$	744,231		$	742,243


Liabilities and Equity
Mortgage notes payable	$	319,419		$	317,303		$	296,701		$	291,199		$	286,295
Revolving credit facility		55,000			45,000			65,000			55,000			80,000
Term Loan		—			—			50,000			50,000			50,000
Accounts payable		11,628			11,368			11,814			11,081			9,838
Billings in excess of costs and estimated earnings on uncompleted contracts		2,314			1,930			2,145			4,657			5,353
Deferred income taxes		—			—			11,406			13,543			15,688
Other liabilities		43,558			39,819			51,991			48,123			47,879
Other liabilities — held for sale		—			—			—			—			2,206

Total liabilities		431,919			415,420			489,057			473,603			497,259
Commitments and contingencies
Equity:
Cogdell Spencer Inc. stockholders’ equity:
Preferred stock		73,500			65,000			—			—			—
Common stock		510			509			507			500			428
Additional paid-in capital		418,374			417,960			419,439			418,194			370,951
Accumulated other comprehensive loss		(2,712	)		(3,339	)		(6,011	)		(4,843	)		(2,868	)
Accumulated deficit		(295,981	)		(287,798	)		(189,219	)		(182,332	)		(165,314	)

Total Cogdell Spencer Inc. stockholders’ equity		193,691			192,332			224,716			231,519			203,197
Noncontrolling interests:
Real estate partnerships		6,772			6,452			5,660			3,810			4,437
Operating partnership		17,433			18,736			33,238			35,299			37,350

Total noncontrolling interests		24,205			25,188			38,898			39,109			41,787

Total equity		217,896			217,520			263,614			270,628			244,984

Total liabilities and equity	$	649,815		$	632,940		$	752,671		$	744,231		$	742,243

CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)
(unaudited)


	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Revenues:
Rental revenue	$	23,054		$	22,799		$	22,765		$	20,995		$	21,245
Design-Build contract revenue and other sales		15,241			24,850			15,734			15,236			35,436
Property management and other fees		775			824			809			761			818
Development management and other income		74			25			1			17			103

Total revenues		39,144			48,498			39,309			37,009			57,602

Expenses:
Property operating and management		9,287			8,012			9,067			8,387			8,198
Design-Build contracts and development management		13,013			22,169			13,806			11,407			24,619
Selling, general, and administrative		6,208			8,561			6,684			9,345			5,820
Depreciation and amortization		7,830			8,283			8,293			8,182			8,085
Impairment charges		—			113,406			—			13,635			—

Total expenses		36,338			160,431			37,850			50,956			46,722

Income (loss) from continuing operations before other income (expense) and income tax benefit (expense)		2,806			(111,933	)		1,459			(13,947	)		10,880
Other income (expense):
Interest and other income		178			210			151			134			160
Interest expense		(4,850	)		(5,662	)		(5,851	)		(5,393	)		(5,089	)
Debt extinguishment and interest rate derivative expense		—			(339	)		(7	)		(9	)		(15	)
Equity in earnings (loss) of unconsolidated partnerships		8			7			3			—			3

Total other income (expense)		(4,664	)		(5,784	)		(5,704	)		(5,268	)		(4,941	)

Income (loss) from continuing operations before income tax benefit (expense)		(1,858	)		(117,717	)		(4,245	)		(19,215	)		5,939
Income tax benefit (expense)		(18	)		10,611			2,294			5,174			(1,726	)

Income (loss) from continuing operations		(1,876	)		(107,106	)		(1,951	)		(14,041	)		4,213
Discontinued operations:
Income (loss) from discontinued operations		—			—			—			24			(18	)
Gain on sale of real estate property		—			—			—			264			—

Total discontinued operations		—			—			—			288			(18	)


Net income (loss)		(1,876	)		(107,106	)		(1,951	)		(13,753	)		4,195

Net income attributable to the noncontrolling interest in real estate partnerships		(200	)		(171	)		(172	)		(177	)		(311	)
Net (income) loss attributable to the noncontrolling interest in operating partnership		508			13,970			285			1,909			(598	)
Dividends on preferred stock		(1,562	)		(208	)		—			—			—

Net income (loss) available to Cogdell Spencer Inc. common shareholders	$	(3,130	)	$	(93,515	)	$	(1,838	)	$	(12,021	)	$	3,286


Per share data — basic and diluted:
Income (loss) from continuing operations attributable to Cogdell Spencer Inc. common shareholders	$	(0.06	)	$	(1.84	)	$	(0.04	)	$	(0.27	)	$	0.08
Income (loss) from discontinued operations attributable to Cogdell Spencer Inc. common shareholders		—			—			—			0.01			—


Net income (loss) per share available to Cogdell Spencer Inc. common shareholders	$	(0.06	)	$	(1.84	)	$	(0.04	)	$	(0.26	)	$	0.08


Weighted average common shares — basic and diluted		51,009			50,745			50,083			46,111			42,768


Net income (loss) available to Cogdell Spencer Inc. common shareholders:
Continuing operations, net of tax	$	(3,130	)	$	(93,515	)	$	(1,838	)	$	(12,267	)	$	3,301
Discontinued operations		—			—			—			246			(15	)

Net income (loss) available to Cogdell Spencer Inc. common shareholders	$	(3,130	)	$	(93,515	)	$	(1,838	)	$	(12,021	)	$	3,286

BUSINESS SEGMENT
REPORTING

(in thousands)
(unaudited)


				Design-Build
	Property			and			Intersegment			Unallocated
Three months ended March 31, 2011	Operations			Development			Eliminations			and Other			Total
Revenues:
Rental revenue	$	23,054		$	—		$	—		$	—		$	23,054
Design-Build contract revenue and other sales		—			23,784			(8,543	)		—			15,241
Property management and other fees		775			—			—			—			775
Development management and other income		—			879			(805	)		—			74

Total revenues		23,829			24,663			(9,348	)		—			39,144

Certain operating expenses:
Property operating and management		9,287			—			—			—			9,287
Design-Build contracts and development management		—			21,488			(8,475	)		—			13,013
Selling, general, and administrative		—			3,776			—			—			3,776

Total certain operating expenses		9,287			25,264			(8,475	)		—			26,076

		14,542			(601	)		(873	)		—			13,068

Interest and other income		164			8			—			6			178
Corporate general and administrative expenses		—			—			—			(2,432	)		(2,432	)
Interest expense		—			—			—			(4,850	)		(4,850	)
Income taxes applicable to funds from operations modified		—			—			—			(18	)		(18	)
Non-real estate related depreciation and amortization		—			(278	)		—			(44	)		(322	)
Earnings from unconsolidated real estate partnerships, before real estate related depreciation and amortization		10			—			—			—			10
Noncontrolling interests in real estate partnerships, before real estate related depreciation and amortization		(498	)		—			—			—			(498	)
Dividends on preferred stock		—			—			—			(1,562	)		(1,562	)

Funds from operations modified (FFOM)		14,218			(871	)		(873	)		(8,900	)		3,574

Amortization of intangibles related to purchase accounting		(42	)		(189	)		—			—			(231	)

Funds from operations (FFO)		14,176			(1,060	)		(873	)		(8,900	)		3,343

Real estate related depreciation and amortization		(7,279	)		—			—			—			(7,279	)
Noncontrolling interests in real estate partnerships, before real estate related depreciation and amortization		498			—			—			—			498
Dividends on preferred stock		—			—			—			1,562			1,562

Net income (loss)	$	7,395		$	(1,060	)	$	(873	)	$	(7,338	)	$	(1,876	)

RECONCILIATION OF
NET INCOME (LOSS)

to Funds from Operations and
Funds from Operations Modified⁽¹⁾

(in thousands, except per share and unit amounts)
(unaudited)


	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Net income (loss)	$	(1,876	)	$	(107,106	)	$	(1,951	)	$	(13,753	)	$	4,195
Add:
Real estate related depreciation and amortization⁽²⁾:
Wholly-owned and consolidated properties, including amounts in discontinued operations		7,277			7,327			7,372			7,272			7,194
Unconsolidated real estate partnerships		2			3			3			3			3
Less:
Noncontrolling interests in real estate partnerships, before real estate related depreciation and amortization		(498	)		(472	)		(476	)		(479	)		(616	)
Dividends on preferred stock		(1,562	)		(208	)		—			—			—
Gain on sale of real estate property		—			—			—			(264	)		—

Funds from Operations (FFO)⁽¹⁾		3,343			(100,456	)		4,948			(7,221	)		10,776
Amortization of intangibles related to purchase accounting, net of tax benefit		231			374			374			374			373

Funds from Operations Modified (FFOM)⁽¹⁾		3,574			(100,082	)		5,322			(6,847	)		11,149
Non-recurring events and impairment charges:
Intangible asset impairment charges, net of tax benefit		—			93,826			—			10,848			—
Tax valuation allowance		—			10,553			—			—			—
Mr. Cogdell’s employment non-renewal compensation expense		—			1,493			—			—			—
Mr. Spencer’s retirement compensation expense, net of income tax benefit		—			—			—			2,545			—

Impact of non-recurring events and impairment charges		—			105,872			—			13,393			—

FFOM, excluding non-recurring events and impairment charges	$	3,574		$	5,790		$	5,322		$	6,546		$	11,149


FFO per share and unit — basic and diluted	$	0.06		$	(1.72	)	$	0.09		$	(0.13	)	$	0.21
FFOM per share and unit — basic and diluted	$	0.06		$	(1.71	)	$	0.09		$	(0.13	)	$	0.22
FFOM per share and unit — basic and diluted, excluding non-recurring events	$	0.06		$	0.10		$	0.09		$	0.12		$	0.22

Weighted average shares and units outstanding		58,438			58,389			57,849			53,913			50,559


(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. We present FFO and FFOM because we consider them important supplemental measures of operational performance. We believe 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. We believe that FFOM allows securities analysts, investors and other interested parties to evaluate current period results to results prior to the acquisition of MEA Holdings, Inc. FFO and FFOM are 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 and FFOM excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide performance measures that, when compared year over year, reflect 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 and FFOM utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. We adjust the NAREIT definition to add back noncontrolling interests in consolidated real estate partnerships before real estate related depreciation and amortization and deduct dividends on preferred stock. 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 our performance, nor are they 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 and our share of real estate depreciation and amortization from consolidated and unconsolidated real estate partnerships.

COVERAGE
RATIOS

(in thousands, except ratio amounts)


	Three Months Ended
	March 31, 2011		Dec. 31, 2010		Sept. 30, 2010		June 30, 2010		March 31, 2010
Interest coverage ratio:
EBITDA	$	10,822	$	11,466	$	9,906	$	11,364	$	19,144
Cash paid for interest		4,622		5,901		5,515		5,542		5,289

Interest coverage ratio		2.34		1.94		1.80		2.05		3.62


Fixed charge coverage ratio:
EBITDA	$	10,822	$	11,466	$	9,906	$	11,364	$	19,144
Fixed charges:
Cash paid for interest		4,622		5,901		5,515		5,542		5,289
Principal payments		1,258		1,111		1,096		1,019		1,031
Dividends on preferred stock		1,562		208		—		—		—

Total fixed charges	$	7,442	$	7,220	$	6,611	$	6,561	$	6,320

Fixed charge coverage ratio		1.45		1.59		1.50		1.73		3.03

RECONCILIATION OF
EARNINGS

Before Interest, Taxes, Depreciation,
and Amortization (“EBITDA”)⁽¹⁾

(in thousands)


	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Reconciliation of net income (loss) to EBITDA:
Net income (loss)	$	(1,876	)	$	(107,106	)	$	(1,951	)	$	(13,753	)	$	4,195
Interest expense		4,850			5,662			5,851			5,393			5,104
Income tax expense (benefit)		18			(10,611	)		(2,294	)		(5,174	)		1,726
Depreciation and amortization		7,830			8,283			8,293			8,182			8,085
Impairment charges		—			113,406			—			13,635			—
Mr. Cogdell’s retirement compensation expense		—			1,493			—			—			—
Debt extinguishment and interest rate derivative expense		—			339			7			9			—
Mr. Spencer’s retirement compensation expense		—			—			—			3,072			—
Discontinued operations — interest expense		—			—			—			—			34

EBITDA	$	10,822		$	11,466		$	9,906		$	11,364		$	19,144


(1)		We believe that earnings before interest, income taxes, depreciation and amortization, or EBITDA, 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 loss (computed in accordance with GAAP) as a measure of financial performance. Other equity REITs may calculate EBITDA differently; accordingly, our EBITDA may not be comparable to such other equity REITs’ EBITDA.

CONSOLIDATED
DEBT ANALYSIS

as of March 31, 2011
(dollars in thousands)


	Stated Interest		Interest			Principal		Maturity		Amortization
	Rate (%)		Rate (%)			Balance		Date		(years)
Secured mortgage loans — wholly-owned properties:
St. Francis CMOB, St. Francis Professional Medical Center	LIBOR + 1.85			5.17	⁽¹⁾	$	7,135		6/15/2011		39
St. Francis Medical Plaza (Greenville), St. Francis Women’s	LIBOR + 1.85			5.17	⁽¹⁾		6,642		6/15/2011		39
Beaufort Medical Plaza	LIBOR + 1.85			5.65	⁽¹⁾		4,605		8/18/2011		39
Mulberry Medical Park		6.25		6.25			845		9/15/2011		10
Methodist Professional Center I	LIBOR + 1.30			1.54			25,193		10/31/2011		30
St. Francis Outpatient Surgery Center	LIBOR + 3.25			3.49			13,000		11/29/2011	Interest only
River Hills Medical Plaza	LIBOR + 3.75			5.53	⁽¹⁾		3,445		12/22/2011		22
East Jefferson Medical Plaza	LIBOR + 3.75			5.55	⁽¹⁾		11,600		1/31/2012	Interest only
Barclay Downs		6.50		6.50			4,252		11/15/2012		25
Providence Medical Office Building I, II and III		6.12		6.12			8,000		1/12/2013		25
One Medical Park		5.93		5.93			4,789		11/1/2013		20
Three Medical Park		5.55		5.55			7,397		3/25/2014		25
Medical Arts Center of Orangeburg	LIBOR + 3.25			6.00	⁽²⁾		2,232		5/5/2014		20
Lancaster Rehabilitation Hospital		6.71		6.71			9,421		6/26/2014		25
Lancaster Rehabilitation Hospital		6.79		6.79			2,076		6/26/2014		25
Rowan Outpatient Surgery Center		6.00		6.00			3,124		7/6/2014		25
East Jefferson MOB		6.01		6.01			8,672		8/10/2014		25
Rocky Mount Kidney Center		6.75		6.75			952		8/21/2014		15
Randolph Medical Park, Lincoln/Lakemont Family Practice, and Northcross Family Physicians		7.00		7.00			7,254		10/15/2014		20
Rocky Mount Medical Park	LIBOR + 3.50			3.74	⁽³⁾		10,227		10/22/2014		25
MRMC MOB I		7.33		7.33			5,882		11/1/2014		25
HealthPartners Medical & Dental Clinics	LIBOR + 3.25			6.80	⁽¹⁾		11,991		11/1/2014		22.5
Copperfield Medical Mall, Harrisburg Medical Mall, Midland Medical Park and Weddington & Internal/Pediatric Medicine	LIBOR + 1.50			3.25	⁽⁵⁾		7,951		12/15/2014		25
Good Sam Medical Office Building		7.50		7.50			1,117		6/30/2015		25
Peerless Crossing Medical Center		6.06		6.06			7,225		9/1/2016		30
Palmetto Health Parkridge		5.68		5.68			13,500		6/1/2017	Interest only		⁽⁶⁾
Central NY Medical Center		6.22		6.22			24,500		7/1/2017	Interest only
Summit Professional Plaza I and II		6.18		6.18			15,925		9/1/2017	Interest only
Medical Center Physicians Tower	LIBOR + 2.50			6.19	⁽¹⁾		14,644		3/1/2019		25
University Physicians — Grants Ferry	LIBOR + 2.25			5.95	⁽¹⁾		10,361		4/20/2019		25
Roper Medical Office Building		7.10		7.10			9,243		6/1/2019		25
Health Park Medical Office Building		7.50		7.50			6,875		12/1/2019		25

Total / weighted average mortgages — wholly-owned properties				5.31			270,075


(1)		Represents the fixed rate for floating rate loans that have been swapped to fixed.

(2)		Minimum interest of 6.00%.

(3)		Maximum interest of 6.50%.

(4)		Interest only during construction period.

(5)		Maximum interest of 8.25%; minimum interest of 3.25%.

(6)		Interest only through June 2012. Principal and interest payments from July 2012 through June 2017.

(7)		We have entered into a forward starting interest rate swap agreement that effectively fixes the interest rate 6.44% beginning

CONSOLIDATED
DEBT ANALYSIS

as of March 31, 2011
(continued)
(dollars in thousands)

Stated Interest

Interest

Principal

Maturity

Amortization

Rate (%)

Balance

Date

(years)

Secured revolving credit facility:

Tranche I

LIBOR + 3.00

3.24

55,000

3/1/2014

Interest only

Total / weighted average secured revolving credit facility

3.24

55,000

Consolidated real estate partnerships:

Alamance Regional Mebane Outpatient Center

LIBOR + 1.30

1.54

10,817

5/1/2011

Alamance Regional Mebane Outpatient Center

LIBOR + 4.00

4.24

1,470

5/1/2011

Interest only

Lancaster ASC MOB

LIBOR + 1.20

5.23

⁽¹⁾

10,152

3/2/2015

English Road Medical Center

4.99

5,134

4/1/2016

Woodlands Center for Specialized Medicine

LIBOR + 1.50

6.21

⁽¹⁾

16,533

9/26/2018

Bonney Lake Medical Office Building

LIBOR + 3.25

3.49

⁽⁷⁾

5,182

2/5/2019

⁽⁴⁾

Total / weighted average consolidated real estate partnerships

4.51

49,288

Total / weighted average debt

374,363

Unamortized premium

Total / weighted average debt

4.90

374,419


(1)		Represents the fixed rate for floating rate loans that have been swapped to fixed.

(2)		Minimum interest of 6.00%.

(3)		Maximum interest of 6.50%.

(4)		Interest only during construction period.

(5)		Maximum interest of 8.25%; minimum interest of 3.25%.

(6)		Interest only through June 2012. Principal and interest payments from July 2012 through June 2017.

(7)		The Company has entered into a forward starting interest rate swap agreement that effectively fixes the interest rate 6.44% beginning October 2011, when the construction phase of the loan expires and converts to an amortizing loan.

CONSOLIDATED
DEBT ANALYSIS

as of March 31, 2011
(continued)


	Future Scheduled Repayments
										Weighted
										Average
										Interest Rate on
							Percent of Total			Maturing
Year	Amortization		Maturities		Total		Mortgages			Debt⁽¹⁾
2011		3,320		72,852		76,172		24	%		3.0	%
2012		4,347		15,678		20,025		6	%		5.8	%
2013		4,295		11,577		15,872		5	%		6.0	%
2014		3,518		60,609		64,127		20	%		5.3	%
2015		2,140		10,350		12,490		4	%		5.5	%
Thereafter		5,524		125,151		130,675		41	%		6.1	%

Total mortgages	$	23,144	$	296,217	$	319,361		100	%		5.2	%
Secured revolving credit facility (March 2014 maturity)		—		55,000		55,000					3.2	%

Total	$	23,144	$	351,217	$	374,361					4.9	%


(1)		Includes the fixed rate swapped interest rates.

(2)		For covenant definitions and a listing of non-financial debt covenants, please refer to our filings with the Securities and Exchange Commission.

CONSOLIDATED
DEBT ANALYSIS

as of March 31, 2011
(continued)


	Weighted Average
Debt Profile	Balance			Percent of Total			Interest Rate⁽¹⁾			Maturity (Years)
Fixed rate mortgages — wholly-owned properties	$	221,655			59	%		6.1	%		4.5
Variable rate mortgages — wholly-owned properties		48,420			13	%		1.7	%		1.2
Secured revolving credit facility		55,000			15	%		3.2	%		2.9
Mortgages — consolidated real estate partnerships		49,288			13	%		4.5	%		4.7

Total	$	374,363			100	%		4.9	%		3.9


Secured revolving credit facility — matures March 2014
Facility	$	200,000

Borrowing base availability	$	122,766
Less: Outstanding		(55,000	)
Less: Letters of credit		(8,128	)

Availability	$	59,638


Capitalized interest 1Q 2011	$	163

Current

Covenant summary

Required

Quarter

In Compliance

Secured revolving credit facility⁽²⁾:

Maximum total leverage ratio

< 65

Yes

Maximum secured recourse indebtedness ratio

< 20

Yes

Minimum fixed charge coverage ratio

> 1.35

1.62

Yes

Minimum required tangible net worth

237,106

295,434

Yes

Minimum facility interest coverage

> 1.50

12.61

Yes


(1)		Includes the fixed rate swapped interest rates.

(2)		For covenant definitions and a listing of non-financial debt covenants, please refer to our filings with the Securities and Exchange Commission.

PROPERTY
SUMMARY

(dollars and square feet in thousands)


	Same Property Operating Results
	As of and for Quarter Ended									As of and for Year Ended
	March 31, 2011			Dec. 31, 2010			March 31, 2010			March 31, 2011			March 31, 2010
Property count		62			62			62			62			62
Square feet		3,386			3,386			3,386			3,386			3,386
Occupancy		90.6	%		90.2	%		90.6	%		90.6	%		90.6	%

Rental revenue	$	21,131		$	21,198		$	21,339		$	84,200		$	82,448
Costs related to property operations		(7,954	)		(7,413	)		(7,672	)		(31,506	)		(30,070	)

Net operating income		13,177			13,785			13,667			52,694			52,378
Straight line rent		(401	)		(369	)		(216	)		(1,246	)		(654	)
Fair value of lease revenues⁽¹⁾		(100	)		(104	)		(122	)		(416	)		(534	)

Adjusted net operating income	$	12,676		$	13,312		$	13,329		$	51,032		$	51,190

	��
	Total Property Operating Results
	As of and for Quarter Ended									As of and for Year Ended
	March 31, 2011			Dec. 31, 2010			March 31, 2010			March 31, 2011			March 31, 2010
Property count		67			66			64			67			64
Square feet		3,730			3,676			3,527			3,730			3,527
Occupancy		90.3	%		90.2	%		89.6	%		90.3	%		89.6	%

Rental revenue	$	23,054		$	22,799		$	21,245		$	89,613		$	81,154
Property management and other fees		775			824			818			3,169			3,304
Costs related to property operations		(9,287	)		(8,012	)		(8,198	)		(34,753	)		(32,142	)

Net operating income		14,542			15,611			13,865			58,029			52,316
Straight line rent		(466	)		(430	)		(221	)		(1,450	)		(659	)
Fair value of lease revenues⁽¹⁾		(107	)		(99	)		(122	)		(415	)		(534	)

Adjusted net operating income	$	13,969		$	15,082		$	13,522		$	56,164		$	51,123


(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.

PROPERTY
LISTING

as of March 31, 2011


												Annualized
												Rent Per
					Net Rentable		Occupancy			Annualized		Leased
	Location	Ownership			Square Feet		Rate			Rent		Square Foot
California
Verdugo Hills Professional Bldg I	Glendale		100.0	%		64,056		91.2	%	$	1,929,628	$	33.02
Verdugo Hills Professional Bldg II	Glendale		100.0	%		42,906		99.5	%		1,478,539		34.63

						106,962		94.6	%		3,408,167		33.70

Florida
Woodlands Center for Specialized Medicine	Pensacola		40.0	%		75,985		100.0	%		2,544,183		33.48

Georgia
Augusta POB I	Augusta		100.0	%		99,494		97.2	%		1,413,329		14.62
Augusta POB II	Augusta		100.0	%		125,634		86.1	%		2,266,583		20.96
Augusta POB III	Augusta		100.0	%		47,034		90.0	%		876,121		20.70
Augusta POB IV	Augusta		100.0	%		55,134		83.1	%		915,737		19.98
Summit Professional Plaza I	Brunswick		100.0	%		33,039		93.5	%		861,471		27.89
Summit Professional Plaza II	Brunswick		100.0	%		64,233		96.7	%		1,779,432		28.63

						424,568		90.9	%		8,112,673		21.01

Indiana
Methodist Professional Center I⁽¹⁾	Indianapolis		100.0	%		150,385		96.4	%		3,533,365		24.37
Methodist Professional Center II (sub-lease)	Indianapolis		100.0	%		24,080		100.0	%		679,892		28.23

						174,465		96.9	%		4,213,257		24.92

Kentucky
OLBH Same Day Surgery Center and MOB	Ashland		100.0	%		46,907		91.8	%		949,707		22.05
OLBH Parking Garage											880,000

						46,907		91.8	%		1,829,707		22.05	⁽²⁾

Louisiana
East Jefferson MOB	Metairie		100.0	%		119,921		99.1	%		2,585,312		21.75
East Jefferson Medical Plaza	Metairie		100.0	%		123,184		100.0	%		2,894,004		23.49
East Jefferson MRI	Metairie		100.0	%		10,809		100.0	%		1,005,991		93.07

						253,914		99.6	%		6,485,307		25.65

Minnesota
Health Partners Medical & Dental Clinics	Sartell		100.0	%		60,108		94.9	%		2,204,260		38.63

Mississippi
University Physicians — Grants Ferry	Flowood		100.0	%		50,575		100.0	%		1,717,816		33.97

New York
Central NY Medical Center⁽³⁾	Syracuse		100.0	%		111,634		97.8	%		2,898,597		26.55


(1)		Parking revenue from an adjacent parking deck is approximately $90,000 per month, or $1,080,000 annualized.

(2)		Excludes annualized rent of adjacent parking decks to OLBH Same Day Surgery Center and MOB and Gaston Professional Center from calculation.

(3)		Parking revenue from an adjacent parking deck is approximately $100,000 per month, or $1,200,000 annualized.

PROPERTY
LISTING

as of March 31,2011
(continued)


												Annualized
												Rent Per
					Net Rentable		Occupancy			Annualized		Leased
	Location	Ownership			Square Feet		Rate			Rent		Square Foot
North Carolina
Alamance Regional Mebane Outpatient Center	Mebane		35.1	%		68,206		71.1	%		1,628,563		33.60
Barclay Downs	Charlotte		100.0	%		38,395		100.0	%		683,078		17.79
Birkdale Bldgs C, D, E and Birkdale Wellness	Huntersville		100.0	%		64,669		96.4	%		1,371,157		22.00
Birkdale II	Huntersville		100.0	%		8,269		100.0	%		204,850		24.77
Copperfield Medical Mall	Concord		100.0	%		26,000		100.0	%		634,655		24.41
East Rocky Mount Kidney Center	Rocky Mount		100.0	%		8,043		100.0	%		161,232		20.05
English Road Medical Center	Rocky Mount		34.5	%		35,393		95.7	%		960,002		28.36
Gaston Professional & Ambulatory Surgery Centers	Gastonia		100.0	%		114,956		100.0	%		2,770,621		24.10
Gaston Parking											606,141
Gateway Medical Office Building	Concord		100.0	%		61,789		69.1	%		1,123,454		26.30
Harrisburg Family Physicians	Harrisburg		100.0	%		8,202		100.0	%		228,787		27.89
Harrisburg Medical Mall	Harrisburg		100.0	%		18,360		100.0	%		514,742		28.04
Lincoln/Lakemont Family Practice	Lincolnton		100.0	%		16,500		100.0	%		405,458		24.57
Mallard Crossing Medical Park	Charlotte		100.0	%		52,540		63.8	%		836,488		24.94
Medical Arts Building	Concord		100.0	%		84,972		93.3	%		1,846,066		23.29
Midland Medical Park	Midland		100.0	%		14,610		100.0	%		449,538		30.77
Mulberry Medical Park	Lenoir		100.0	%		24,992		77.6	%		421,334		21.73
Northcross Family Physicians	Charlotte		100.0	%		8,018		100.0	%		239,186		29.83
Randolph Medical Park	Charlotte		100.0	%		84,131		69.2	%		1,295,180		22.25
Rocky Mount Kidney Center	Rocky Mount		100.0	%		10,105		100.0	%		202,567		20.05
Rocky Mount Medical Park	Rocky Mount		100.0	%		96,993		100.0	%		2,088,260		21.53
Rowan Outpatient Surgery Center	Salisbury		100.0	%		19,464		100.0	%		440,139		22.61
Weddington Internal & Pediatric Medicine	Concord		100.0	%		7,750		100.0	%		204,204		26.35

						872,357		88.7	%		19,315,702		24.19	⁽²⁾
Pennsylvania
Lancaster Rehabilitation Hospital	Lancaster		100.0	%		57,508		100.0	%		1,491,243		25.93
Lancaster ASC MOB	Lancaster		80.9	%		64,214		100.0	%		2,220,165		34.57

						121,722		100.0	%		3,711,408		30.49


(1)		Parking revenue from an adjacent parking deck is approximately $90,000 per month, or $1,080,000 annualized.

(2)		Excludes annualized rent of adjacent parking decks to OLBH Same Day Surgery Center and MOB and Gaston Professional Center from calculation.

(3)		Parking revenue from an adjacent parking deck is approximately $100,000 per month, or $1,200,000 annualized.

PROPERTY
LISTING

as of March 31, 2011
(continued)


												Annualized
												Rent Per
					Net Rentable		Occupancy			Annualized		Leased
	Location	Ownership			Square Feet		Rate			Rent		Square Foot
South Carolina
200 Andrews	Greenville		100.0	%		25,902		100.0	%		635,812		24.55
Beaufort Medical Plaza	Beaufort		100.0	%		59,340		100.0	%		1,362,773		22.97
Carolina Forest Medical Plaza	Myrtle Beach		100.0	%		38,902		43.5	%		547,848		32.40
Mary Black Westside Medical Office Bldg	Spartanburg		100.0	%		37,455		100.0	%		732,041		19.54
Medical Arts Center of Orangeburg	Orangeburg		100.0	%		49,324		78.0	%		674,507		17.54
Mount Pleasant Medical Office Long Point	Mt. Pleasant		100.0	%		38,735		77.4	%		805,803		26.89
One Medical Park	Columbia		100.0	%		69,840		83.9	%		1,447,494		24.72
Palmetto Health Parkridge	Columbia		100.0	%		89,451		94.6	%		2,243,492		26.51
Providence MOB I	Columbia		100.0	%		48,500		82.0	%		831,198		20.89
Providence MOB II	Columbia		100.0	%		23,280		80.6	%		389,343		20.74
Providence MOB III	Columbia		100.0	%		54,417		73.3	%		749,754		18.80
River Hills Medical Plaza	Little River		100.0	%		27,566		70.9	%		634,761		32.48
Roper Medical Office Building	Charleston		100.0	%		122,785		82.7	%		2,215,019		21.80
St. Francis CMOB	Greenville		100.0	%		45,140		96.6	%		1,189,373		27.27
St. Francis Medical Plaza (Charleston)	Charleston		100.0	%		28,734		100.0	%		861,219		29.97
St. Francis Medical Plaza (Greenville)	Greenville		100.0	%		62,724		88.1	%		1,017,670		18.42
St. Francis Outpatient Surgery Center	Greenville		100.0	%		72,491		100.0	%		2,181,970		30.10
St. Francis Professional Medical Center	Greenville		100.0	%		49,767		100.0	%		1,169,200		23.49
St. Francis Women’s	Greenville		100.0	%		57,590		79.2	%		980,016		21.47
Three Medical Park	Columbia		100.0	%		88,755		84.1	%		1,779,367		23.82

						1,090,698		86.3	%		22,448,660		23.86

Tennessee
Health Park Medical Office Building	Chattanooga		100.0	%		52,151		100.0	%		1,532,567		29.39
Peerless Crossing Medical Center	Cleveland		100.0	%		40,506		100.0	%		1,021,030		25.21

						92,657		100.0	%		2,553,597		27.56

Virginia
MRMC MOB I	Mechanicsville		100.0	%		56,610		77.2	%		1,284,123		29.40
St. Mary’s MOB North — (Floors 6 & 7)	Richmond		100.0	%		30,617		100.0	%		756,934		24.72

						87,227		85.2	%		2,041,057		27.47


Total						3,569,779		91.0	%	$	83,484,391	$	25.25	⁽²⁾


(1)		Parking revenue from an adjacent parking deck is approximately $94,000 per month, or $1,128,000 annualized.

(2)		Excludes annualized rent of adjacent parking decks to OLBH Same Day Surgery Center and MOB and Gaston Professional Center from calculation. (3) Parking revenue from an adjacent parking deck is approximately $102,000 per month, or $1,224,000 annualized.

(3)		Parking revenue from an adjacent parking deck is approximately $102,000 per month, or $1,224,000 annualized.

PROPERTY
OCCUPANCY RATES


	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
California
Verdugo Professional Bldg I		91.2	%		93.1	%		94.3	%		94.3	%		94.3	%
Verdugo Professional Bldg II		99.5	%		99.5	%		99.5	%		99.5	%		99.5	%

Florida
Woodlands Center for Specialized Medicine		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Georgia
Augusta POB I		97.2	%		93.2	%		90.7	%		90.7	%		77.7	%
Augusta POB II		86.1	%		87.6	%		87.6	%		87.6	%		87.6	%
Augusta POB III		90.0	%		90.0	%		90.0	%		90.0	%		90.0	%
Augusta POB IV		83.1	%		83.1	%		82.5	%		82.5	%		82.5	%
Summit Professional Plaza I		93.5	%		93.5	%		93.5	%		93.5	%		93.5	%
Summit Professional Plaza II		96.7	%		96.7	%		96.7	%		96.7	%		96.7	%

Indiana
Methodist Professional Center I		96.4	%		95.2	%		95.2	%		96.4	%		96.4	%
Methodist Professional Center II		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Kentucky
OLBH Same Day Surgery Center and MOB		91.8	%		95.7	%		100.0	%		91.5	%		100.0	%

Louisiana
East Jefferson MOB		99.1	%		99.1	%		98.8	%		100.0	%		100.0	%
East Jefferson Medical Plaza		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
East Jefferson MRI		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Minnesota
Health Partners Medical & Dental Clinics		94.9	%		94.9	%		94.9	%		94.9	%		n/a

Mississippi
University Physicians — Grants Ferry		100.0	%		100.0	%		100.0	%		100.0	%		n/a

New York
Central NY Medical Center		97.8	%		97.8	%		97.8	%		97.8	%		95.4	%

PROPERTY
OCCUPANCY RATES

(continued)


	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
North Carolina
Alamance Regional Mebane Outpatient Ctr		71.1	%		71.1	%		71.1	%		71.1	%		71.1	%
Barclay Downs		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Birkdale Bldgs C, D, E and Birkdale Wellness		96.4	%		96.4	%		96.4	%		96.4	%		96.4	%
Birkdale II		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Copperfield Medical Mall		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
East Rocky Mount Kidney Center		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
English Road Medical Center		95.7	%		95.7	%		95.7	%		95.7	%		95.7	%
Gaston Professional & Ambulatory Surgery Centers		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Gateway Medical Office Building		69.1	%		69.1	%		69.1	%		69.1	%		69.1	%
Harrisburg Family Physicians		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		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Mallard Crossing Medical Park		63.8	%		66.0	%		66.0	%		66.0	%		66.9	%
Medical Arts Building		93.3	%		93.3	%		93.3	%		98.2	%		98.2	%
Midland Medical Park		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Mulberry Medical Park		77.6	%		87.0	%		87.0	%		87.0	%		77.7	%
Northcross Family Physicians		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Randolph Medical Park		69.2	%		69.2	%		69.2	%		71.8	%		71.8	%
Rocky Mount Kidney Center		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Rocky Mount Medical Park		100.0	%		100.0	%		100.0	%		92.8	%		92.8	%
Rowan Outpatient Surgery Center		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Weddington Internal & Pediatric Medicine		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Pennsylvania
Lancaster Rehabilitation Hospital		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Lancaster ASC MOB		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

PROPERTY
OCCUPANCY RATES

(continued)


	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
South Carolina
200 Andrews		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Beaufort Medical Plaza		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Carolina Forest Medical Plaza		43.5	%		43.5	%		43.5	%		43.5	%		43.5	%
Mary Black Westside Medical Office Bldg		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Medical Arts Center of Orangeburg		78.0	%		78.0	%		78.0	%		78.0	%		78.0	%
Mount Pleasant Medical Office Long Point		77.4	%		77.4	%		77.4	%		77.4	%		77.4	%
One Medical Park		83.9	%		83.9	%		78.2	%		80.8	%		80.8	%
Palmetto Health Parkridge		94.6	%		94.6	%		94.6	%		94.6	%		94.6	%
Providence MOB I		82.0	%		82.0	%		87.2	%		87.2	%		87.2	%
Providence MOB II		80.6	%		88.8	%		100.0	%		100.0	%		100.0	%
Providence MOB III		73.3	%		73.3	%		55.5	%		49.6	%		55.5	%
River Hills Medical Plaza		70.9	%		70.9	%		70.9	%		70.9	%		70.9	%
Roper Medical Office Building		82.7	%		84.7	%		95.6	%		95.6	%		95.6	%
St. Francis CMOB		96.6	%		96.6	%		100.0	%		100.0	%		100.0	%
St. Francis Medical Plaza (Charleston)		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
St. Francis Medical Plaza (Greenville)		88.1	%		67.6	%		61.5	%		50.7	%		50.7	%
St. Francis Outpatient Surgery Center		100.0	%		100.0	%		100.0	%		n/a			n/a
St. Francis Professional Medical Center		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
St. Francis Women’s		79.2	%		79.2	%		79.2	%		76.5	%		76.5	%
Three Medical Park		84.1	%		82.3	%		100.0	%		100.0	%		100.0	%

Tennessee
Health Park Medical Office Building		100.0	%		88.8	%		88.8	%		88.8	%		100.0	%
Peerless Crossing Medical Center		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

Virginia
MRMC MOB I		77.2	%		77.2	%		92.7	%		100.0	%		100.0	%
St. Mary’s MOB North — (Floors 6 & 7)		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

TENANT
LEASE EXPIRATIONS

for Leases in Place at
March 31, 2011


	Number of		Net Rentable Square		Percentage of Net			Annualized		Percentage of Property			Annualized Rent Per
	Leases Expiring		Feet		Rentable Square Feet			Rent		Annualized Rent			Leased Square Foot
Available		—		321,775		9.0	%	$	—		—		$	—
2011		100		310,322		8.7	%		7,111,144		8.5	%		22.92
2012		130		532,441		14.9	%		13,786,437		16.5	%		24.75	⁽¹⁾
2013		87		344,788		9.7	%		8,107,797		9.7	%		23.52
2014		81		371,903		10.4	%		9,370,039		11.2	%		25.19
2015		76		296,948		8.3	%		8,006,105		9.6	%		24.00	⁽¹⁾
2016		39		186,726		5.2	%		3,878,412		4.6	%		20.77
2017		49		287,787		8.1	%		7,826,787		9.4	%		27.20
2018		24		148,559		4.2	%		3,636,296		4.4	%		24.48
2019		19		143,101		4.0	%		3,196,681		3.8	%		22.34
2020		14		92,969		2.6	%		2,077,619		2.5	%		22.35
Thereafter		21		532,460		14.9	%		16,487,074		19.7	%		30.96

Total		640		3,569,779		100.0	%	$	83,484,391		100.0	%	$	25.25	⁽¹⁾


(1)		Excludes annualized rent of adjacent parking decks to OLBH Same Day Surgery Center and MOB and Gaston Professional Center from calculation.

TEN LARGEST
TENANTS

by Annualized Rent at
March 31, 2011


	Annualized		Percent of
Tenant	Rent		Portfolio
1. Carolinas Healthcare System	$	5,816,292		7.0	%
2. Bon Secours St. Francis Hospital		5,675,611		6.8	%
3. Lancaster General Hospital		2,995,110		3.6	%
4. Palmetto Health Alliance		2,973,005		3.6	%
5. Woodlands Medical		2,544,183		3.0	%
6. Clarian Health Partners		2,361,807		2.8	%
7. HealthPartners, Inc.		2,051,708		2.5	%
8. Jefferson Parish Hospital District #2		1,976,223		2.4	%
9. University Hospital, Augusta, GA		1,929,114		2.3	%
10. Gaston Memorial Hospital		1,892,824		2.3	%

	$	30,215,877		36.2	%

GROUND & AIR RIGHTS
LEASES

as of March 31, 2011


			Ground or Air
	Net Rentable		Rights Lease
	Square Feet		Expiration⁽¹⁾
200 Andrews		25,902		2063
Alamance Regional Mebane Outpatient Ctr		68,206		2086
Beaufort Medical Plaza		59,340		2070
East Jefferson Medical Plaza		123,184		2043
East Jefferson MOB		119,921		2035
East Jefferson MRI		10,809		2027
Gaston MOB and Surgery Center		114,956		2035
Gateway Medical Office Building		61,789		2054
Good Samaritan Medical Office Building⁽²⁾		79,641		2111
Lancaster ASC MOB		64,215		2091
Lancaster Rehabilitation Hosp		57,508		2092
Mary Black Westside Medical Office Building		37,455		2061
Medical Arts Building		84,972		2070
Medical Center Physicians Tower		106,772		2089
Methodist Professional Center I (and adjacent parking deck)		150,243		2060
Mount Pleasant Medical Office Longpoint		38,735		2070
Mulberry Medical Park		24,992		2057
OLBH Same Day Surgery MOB/Parking Garage		46,907		2067
One Medical Park		69,840		2033
Parkridge MOB LLC		89,451		2053
Providence MOB I		48,500		2049
Providence MOB II		23,280		2034
Roper Medical Office Building		122,784		2042
St. Elizabeth Florence Medical Office Building		53,833		2080
St Francis CMOB		45,140		2060
St Francis Medical Plaza (Greenville)		62,724		2070
St Francis Outpatient Surgery Center		72,491		2060
St Francis Women’s		57,590		2070
St. Francis Medical Plaza (Charleston)		28,734		2073
St. Francis Professional Medical Center		49,767		2050
St. Luke’s MOB⁽²⁾		176,000		2081
St. Mary’s MOB North (Floors 6 & 7)		30,617		2058
Three Medical Park		88,755		2039


(1)		Year of expiration assumes we have exercised lease renewal options.

(2)		Property in construction as of March 31, 2011.

PIPELINE

INTER-COMPANY
PROFIT ELIMINATION EXAMPLE

We are required to account for the operations of our Design-Build and Development segment separately from that of our Property Operations segment due to Federal income tax guidelines (see Note 2 in our Consolidated Financial Statements on Form 10-K or 10-Q for further explanation of Real Estate Investment Trust organizational and operational guidance). Generally accepted accounting principles require that we eliminate these inter-company profits upon consolidation.

At times, the Design-Build and Development segment will construct a building for the Property Operations segment. Upon consolidation, the profits earned by the Design-Build and Development segment must be eliminated and the corresponding value of the building reduced by the same amount.

In the example below, Property Operations pays Design-Build and Development a market value of $10.0 million to construct a building. Design-Build and Development’s cost to construct the building is $9.0 million. Upon consolidation, we eliminate the $1.0 million profit and reduce the carrying value of the building to $9.0 million. Had we hired a third party general contractor, our carrying value would have been $10.0 million.

Regardless of who constructs the building, Property Operations establishes the rental rate based on the building’s market value of $10.0 million. Assuming an 8.0% return on cost, the rental rate is set at $0.8 million. Since we self-constructed the building, our consolidated (and internal) cost is actually $9.0 million which then increases our return on investment to 8.9% ($0.8 million divided by $9.0 million).


	Building		Return on
	Carrying Value		Investment
Building results as constructed by a third-party	$	10,000,000		8.0	%
Building results as constructed internally	$	9,000,000		8.9	%


	Property			Design-Build &			Profit			Consolidated
	Operations			Development			Elimination			Cogdell Spencer
Assets:
Cash	$	(10,000,000	)	$	1,000,000		$	—		$	(9,000,000	)
Building		10,000,000			—			(1,000,000	)		9,000,000

	$	—		$	1,000,000		$	(1,000,000	)		—


Liabilities and equity:
Secured Credit Facility	$	—		$	—		$	—		$	—
Equity (current year earnings)		—			1,000,000			(1,000,000	)		—

	$	—		$	1,000,000		$	(1,000,000	)	$	—


Income statement:
Design-Build Revenue	$	—		$	10,000,000		$	(10,000,000	)	$	—
Design-Build Cost of Sales		—			(9,000,000	)		9,000,000			—

Gross Margin	$	—			1,000,000		$	(1,000,000	)	$	—

ACQUISITIONS,
COMPLETED DEVELOPMENTS &
PROPERTIES IN LEASE-UP

for the Period January 1, 2010
through March 31, 2011
(dollars in thousands)

Acquisition/

Lease-up

Completion/

Net Rentable

Percentage

Construction

Underwriting

Property

Location

Type

Acquired Date

Square Feet

Leased

Cost

Date

Stabilized and income producing:

HealthPartners Medical Office Building

St. Cloud, MN

Development

2Q 2010

60,108

15,624

n/a

University Physicians — Grant’s Ferry

Brandon, MS

Development

2Q 2010

50,575

100

14,032

n/a

Lancaster Rehabilitation Hospital⁽¹⁾

Lancaster, PA

Development

2Q 2010

4,630

100

1,991

n/a

St. Francis Outpatient Surgery Center

Greenville, SC

Acquisition

3Q 2010

72,491

100

��

16,638

n/a

Total 2009 and 2010

187,804

48,285

Lease-up as of balance sheet date:

Medical Center Physicians Tower

Jackson, TN

Development

2Q 2010

106,772

100

%⁽²⁾

21,139

3Q 2011

St. Elizabeth Florence Medical Office Building

Florence, KY

Acquisition

1Q 2011

53,833

6,150

1Q 2013

160,605

27,289


(1)		Represents 4,630 square foot expansion to the existing property.

(2)		The property is 75% leased and income producing with the remaining 25% leased and under construction for a third quarter 2011 scheduled date of occupancy.

DEVELOPMENT CONSTRUCTION &
CAPITAL EXPENDITURES

as of March 31, 2011
(dollars in thousands)


		Estimated
		Completion	Net Rentable		Investment to		Estimated Total		Percentage
Development Construction	Location	Date	Square Feet		Date		Investment		Leased
Good Sam Medical Office Building	Puyallup, WA	4Q 2011		80,000	$	12,012	$	24,700		73	%
Bonney Lake Medical Office Building⁽¹⁾	Bonney Lake, WA	3Q 2011		56,000		14,213		17,700		98	%
St. Luke’s Medical Office Building	Duluth, MN	3Q 2012		176,000		948		27,800		100	%
Land and pre-construction developments				—		2,812		—

				312,000	$	29,985	$	70,200


	Three Months
	Ended
Capital Expenditures	March 31, 2011
Development, redevelopment, and acquisitions	$	14,257
Second generation tenant improvements		1,122
Recurring property capital expenditures		239

Total	$	15,618


(1)		We had a 61.7% ownership interest at March 31, 2011.

Cogdell Spencer Inactive 8-KCogdell Spencer Announces First Quarter 2011 Results