SUPPLEMENTAL OPERATING AND
FINANCIAL DATA
FOR THE QUARTER ENDED
September 30, 2009
Rendering of recently completed Medical Pavilion at Howard County -
delivered under a design-build fee contract
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.
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, delivery, 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., combining the capital and management services of Cogdell Spencer Advisors, creating Cogdell Spencer ERDMAN, an operating unit 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 strategic planning, design, construction, development and project management services for properties owned by the Company and for third parties.
The Company is building a national portfolio of healthcare properties primarily 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 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 completed the Cancer Center expansion in the third quarter 2009. The Company has begun construction on four other capital projects between December 2008 and September 2009 with a total estimated investment of approximately $81.1 million.
Since its founding in 1951, the Company has designed, engineered, or built over 5,000 healthcare facilities, which support more than 50,000 physicians. Cogdell Spencer ERDMAN was ranked as the number one healthcare design-build firm for 2007 and 2008 by Modern Healthcare’s Annual Construction and Design Survey.
The Company’s property management team, 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.
As of September 30, 2009, the Company owned or managed healthcare properties located in 12 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.
Cogdell Spencer Inc.
Investor Information
| Board of Directors | Senior Management | |||||
| James W. Cogdell | Frank C. Spencer | James W. Cogdell | Frank C. Spencer | |||
| Chairman | President and CEO | Chairman | President and 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 | ||||||
| BMO Capital Markets | Raymond James & Associates | |||||
| Richard Anderson - 212.885.4180 | Paul Puryear - 727.567.2253 | |||||
| Janney Montgomery Scott | SmithBarney Citigroup | |||||
| Daniel P. Donlan - 215.665.6476 | Michael Bileman - 212.816.1383 | |||||
| KeyBanc Capital Markets | ||||||
| Karin Ford - 917.368.2293 | ||||||
| Company Information | ||||||
| Corporate Headquarters | Trading Symbol | Transfer Agent | Investor Relations | |||
| 4401 Barclay Downs Drive | CSA | Continental Stock | Dana A. Crothers | |||
| Suite 300 | Transfer & Trust Company | Marketing Director | ||||
| Charlotte, NC 28209 | Stock Exchange Listing | 704.940.2904 | ||||
| Te: 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 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; Erdman’s customers’ access to financing; delays in project starts and cancellations by Erdman’s customers; the timing of capital expenditures by healthcare systems and providers; 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, 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.
Cogdell Spencer Inc
| Financial and Operating Highlights | ||||||||||||||||
| (in thousands, except per share amounts, years, ratios and portfolio statistics) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Selected Operating Data | ||||||||||||||||
| Rental income | $ | 19,722 | $ | 19,309 | $ | 58,559 | $ | 56,672 | ||||||||
| Straight line rent | 172 | 160 | 407 | 422 | ||||||||||||
Fair value lease revenues (1) | 155 | 162 | 410 | 528 | ||||||||||||
| Rental revenue | 20,049 | 19,631 | 59,376 | 57,622 | ||||||||||||
| Property management and other fees | 816 | 852 | 2,530 | 2,524 | ||||||||||||
| Revenue from property operations | $ | 20,865 | $ | 20,483 | $ | 61,906 | $ | 60,146 | ||||||||
| Costs related to property operations | $ | 8,163 | $ | 8,370 | $ | 23,975 | $ | 23,403 | ||||||||
| Property operations gross margin | 61% | 59% | 61% | 61% | ||||||||||||
| Design-Build and development revenue | $ | 30,537 | $ | 73,536 | $ | 116,665 | $ | 175,621 | ||||||||
| Costs related to design-build contracts and development | $ | 21,166 | $ | 59,578 | $ | 92,573 | $ | 146,907 | ||||||||
| Design-Build and development gross margin | 31% | 19% | 21% | 16% | ||||||||||||
EBITDA (2) | $ | 14,354 | $ | 18,692 | $ | 41,264 | $ | 45,761 | ||||||||
| Interest expense | $ | 5,072 | $ | 6,743 | $ | 16,691 | $ | 18,695 | ||||||||
| Net income (loss) attributable to Cogdell | ||||||||||||||||
| Spencer Inc., excluding impairment charge | ||||||||||||||||
| and debt extinguishment charge, net of tax | $ | 1,248 | $ | (1,086 | ) | $ | (197 | ) | $ | (4,731 | ) | |||||
| Per share and unit - basic and diluted | $ | 0.02 | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.20 | ) | |||||
Funds from Operations ("FFO") (3), excluding | ||||||||||||||||
| impairment charge and debt extinguishment | ||||||||||||||||
| charge, net of tax | $ | 8,475 | $ | 5,769 | $ | 20,584 | $ | 15,685 | ||||||||
| Per share and unit - basic and diluted | $ | 0.17 | $ | 0.23 | $ | 0.55 | $ | 0.68 | ||||||||
Funds from Operations Modified ("FFOM") (3), | ||||||||||||||||
| excluding impairment charge and debt | ||||||||||||||||
| extinguishment charge, net of tax | $ | 8,834 | $ | 8,159 | $ | 23,319 | $ | 21,280 | ||||||||
| Per share and unit - basic and diluted | $ | 0.18 | $ | 0.33 | $ | 0.62 | $ | 0.92 | ||||||||
| Dividends and distributions declared per share and unit | $ | 0.10 | $ | 0.35 | $ | 0.425 | $ | 1.05 | ||||||||
As of Sept. 30, 2009 | As of Sept. 30, 2009 | |||||||||
| Selected Balance Sheet Data | Capitalization | |||||||||
| Cash and cash equivalents | $ | 25,773 | Common shares outstanding | 42,547 | ||||||
| Book value of real estate assets before depreciation | $ | 591,364 | Units outstanding | 7,523 | ||||||
| Total assets | $ | 762,503 | Total common shares and units outstanding | 50,070 | ||||||
| Total liabilities | $ | 519,279 | Share price at end of period | $ | 4.80 | |||||
| Noncontrolling interests and equity | $ | 243,224 | Equity value at end of period (4) | $ | 240,336 | |||||
| Debt | $ | 396,961 | ||||||||
| Total market capitalization | $ | 637,297 | ||||||||
| Debt | Portfolio Statistics - In-service, Consolidated Properties | |||||||||
| Weighted average interest rate | 5.4% | Number of properties | 62 | |||||||
| Weighted average remaining maturity (years) | 3.4 | Total square footage | 3,344,173 | |||||||
| Debt / total assets | 52% | Occupancy | 90.6% | |||||||
| (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 income (loss), see page 9. | ||||||||
| (3) For a definition and discussion and a quantitative reconciliation of the differences between FFO, FFOM, and net income (loss), see page 8. | ||||||||
| (4) Assuming conversion of 100% of the operating partnership units into shares of common stock. | ||||||||
Cogdell Spencer Inc
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | Sept. 30, 2008 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Real estate properties: | ||||||||||||||||||||
| Operating real estate properties | $ | 539,104 | $ | 535,291 | $ | 533,363 | $ | 531,932 | $ | 529,495 | ||||||||||
| Less: Accumulated depreciation | (87,733 | ) | (81,612 | ) | (75,447 | ) | (69,285 | ) | (63,154 | ) | ||||||||||
| Total operating real estate properties, net | 451,371 | 453,679 | 457,916 | 462,647 | 466,341 | |||||||||||||||
| Construction in process | 52,260 | 36,419 | 21,881 | 15,314 | 10,672 | |||||||||||||||
| Total operating real estate properties, net | 503,631 | 490,098 | 479,797 | 477,961 | 477,013 | |||||||||||||||
| Cash and cash equivalents | 25,773 | 13,408 | 12,400 | 34,668 | 10,637 | |||||||||||||||
| Restricted cash | 13,188 | 13,082 | 12,686 | 12,964 | 18,388 | |||||||||||||||
| Tenant and accounts receivable, net | 17,910 | 30,318 | 34,701 | 43,523 | 42,924 | |||||||||||||||
| Goodwill | 108,683 | 108,683 | 108,683 | 180,435 | 181,795 | |||||||||||||||
| Trade names and trademarks | 41,240 | 41,240 | 41,240 | 75,969 | 75,986 | |||||||||||||||
| Intangible assets, net | 22,837 | 24,542 | 27,144 | 45,363 | 50,642 | |||||||||||||||
| Other assets | 29,241 | 29,597 | 31,484 | 29,207 | 27,689 | |||||||||||||||
| Total assets | $ | 762,503 | $ | 750,968 | $ | 748,135 | $ | 900,090 | $ | 885,074 | ||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Mortgage notes payable | $ | 266,961 | $ | 255,622 | $ | 243,030 | $ | 240,736 | $ | 234,497 | ||||||||||
| Revolving credit facility | 80,000 | 80,000 | 112,000 | 124,500 | 90,000 | |||||||||||||||
| Term Loan | 50,000 | 50,000 | 100,000 | 100,000 | 100,000 | |||||||||||||||
| Accounts payable | 18,714 | 17,504 | 17,978 | 22,090 | 23,185 | |||||||||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 23,216 | 21,556 | 19,123 | 17,025 | 27,616 | |||||||||||||||
| Deferred income taxes | 14,635 | 13,706 | 14,510 | 34,176 | 40,302 | |||||||||||||||
| Payable to prior Erdman shareholders | 18,002 | 18,002 | 18,002 | 18,002 | 24,003 | |||||||||||||||
| Other liabilities | 47,751 | 46,069 | 48,481 | 60,567 | 47,751 | |||||||||||||||
| Total liabilities | 519,279 | 502,459 | 573,124 | 617,096 | 587,354 | |||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Equity: | ||||||||||||||||||||
| Cogdell Spencer Inc. stockholders' equity: | ||||||||||||||||||||
| Preferred stock | - | - | - | - | - | |||||||||||||||
| Common stock | 425 | 425 | 195 | 177 | 176 | |||||||||||||||
| Additional paid-in capital | 369,539 | 369,483 | 292,971 | 275,380 | 273,635 | |||||||||||||||
| Accumulated other comprehensive loss | (3,160 | ) | (2,221 | ) | (5,806 | ) | (5,106 | ) | (12 | ) | ||||||||||
| Accumulated deficit | (161,604 | ) | (158,598 | ) | (152,042 | ) | (77,438 | ) | (72,416 | ) | ||||||||||
| Total Cogdell Spencer Inc. stockholders' equity | 205,200 | 209,089 | 135,318 | 193,013 | 201,383 | |||||||||||||||
| Noncontrolling interests: | ||||||||||||||||||||
| Real estate partnerships | 4,857 | 5,442 | 4,658 | 4,657 | 6,176 | |||||||||||||||
| Operating partnership | 33,167 | 33,978 | 35,035 | 85,324 | 90,161 | |||||||||||||||
| Total noncontrolling interests | 38,024 | 39,420 | 39,693 | 89,981 | 96,337 | |||||||||||||||
| Total equity | 243,224 | 248,509 | 175,011 | 282,994 | 297,720 | |||||||||||||||
| Total liabilities and equity | $ | 762,503 | $ | 750,968 | $ | 748,135 | $ | 900,090 | $ | 885,074 | ||||||||||
Cogdell Spencer Inc
| Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | Sept. 30, 2008 | ||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental revenue | $ | 20,049 | $ | 19,662 | $ | 19,665 | $ | 20,177 | $ | 19,631 | ||||||||||
| Design-Build contract revenue and other sales | 30,298 | 36,712 | 46,390 | 78,726 | 72,914 | |||||||||||||||
| Property management and other fees | 816 | 863 | 850 | 935 | 852 | |||||||||||||||
| Development management and other income | 239 | 227 | 2,799 | 134 | 622 | |||||||||||||||
| Total revenues | 51,402 | 57,464 | 69,704 | 99,972 | 94,019 | |||||||||||||||
| Expenses: | ||||||||||||||||||||
| Property operating and management | 8,163 | 7,884 | 7,927 | 7,972 | 8,370 | |||||||||||||||
| Design-Build contracts and development management | 21,166 | 31,242 | 40,165 | 67,112 | 59,578 | |||||||||||||||
| Selling, general, and administrative | 7,876 | 6,675 | 6,667 | 9,819 | 7,599 | |||||||||||||||
| Depreciation and amortization | 8,047 | 8,978 | 10,111 | 11,741 | 11,871 | |||||||||||||||
| Impairment charges | - | - | 120,920 | - | - | |||||||||||||||
| Total expenses | 45,252 | 54,779 | 185,790 | 96,644 | 87,418 | |||||||||||||||
| Income (loss) from operations before other income (expense) | 6,150 | 2,685 | (116,086 | ) | 3,328 | 6,601 | ||||||||||||||
| Other income (expense): | ||||||||||||||||||||
| Interest and other income | 161 | 139 | 155 | 239 | 210 | |||||||||||||||
| Interest expense | (5,072 | ) | (5,594 | ) | (6,025 | ) | (6,463 | ) | (6,743 | ) | ||||||||||
| Debt extinguishment and interest rate derivative expense | (10 | ) | (2,490 | ) | - | - | - | |||||||||||||
| Equity in earnings of unconsolidated partnerships | (4 | ) | 2 | 6 | 4 | 10 | ||||||||||||||
| Total other income (expense) | (4,925 | ) | (7,943 | ) | (5,864 | ) | (6,220 | ) | (6,523 | ) | ||||||||||
| Income (loss) from operations before income | ||||||||||||||||||||
| tax (expense) benefit | 1,225 | (5,258 | ) | (121,950 | ) | (2,892 | ) | 78 | ||||||||||||
| Income tax (expense) benefit | 231 | 2,208 | 19,626 | 1,387 | (883 | ) | ||||||||||||||
| Net income (loss) | 1,456 | (3,050 | ) | (102,324 | ) | (1,505 | ) | (805 | ) | |||||||||||
| Net loss (income) attributable to the noncontrolling interest in: | ||||||||||||||||||||
| Real estate partnerships | (17 | ) | (48 | ) | (92 | ) | (105 | ) | (920 | ) | ||||||||||
| Operating partnership | (191 | ) | 783 | 32,198 | 568 | 639 | ||||||||||||||
| Net income (loss) attributable to Cogdell Spencer Inc. | $ | 1,248 | $ | (2,315 | ) | $ | (70,218 | ) | $ | (1,042 | ) | $ | (1,086 | ) | ||||||
| Per share data - basic and diluted: | ||||||||||||||||||||
| Net income (loss) per share attributable | ||||||||||||||||||||
| to Cogdell Spencer Inc. | $ | 0.03 | $ | (0.09 | ) | $ | (3.90 | ) | $ | (0.06 | ) | $ | (0.07 | ) | ||||||
| Weighted average common shares - basic and diluted | 42,539 | 27,084 | 17,995 | 17,557 | 15,747 | |||||||||||||||
Cogdell Spencer Inc
| Business Segment Reporting | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Three months ended September 30, 2009: | Property Operations | Design-Build and Development | Intersegment Eliminations | Unallocated and Other | Total | |||||||||||||||
| Revenues: | ||||||||||||||||||||
| Rental revenue | $ | 20,072 | $ | - | $ | (23 | ) | $ | - | $ | 20,049 | |||||||||
| Design-Build contract revenue and other sales | - | 40,644 | (10,346 | ) | - | 30,298 | ||||||||||||||
| Property management and other fees | 816 | - | - | - | 816 | |||||||||||||||
| Development management and other income | - | 723 | (484 | ) | - | 239 | ||||||||||||||
| Total revenues | 20,888 | 41,367 | (10,853 | ) | - | 51,402 | ||||||||||||||
| Certain operating expenses: | ||||||||||||||||||||
| Property operating and management | 8,163 | - | - | - | 8,163 | |||||||||||||||
| Design-Build contracts and development management | - | 31,169 | (10,003 | ) | - | 21,166 | ||||||||||||||
| Selling, general, and administrative | - | 6,098 | (23 | ) | - | 6,075 | ||||||||||||||
| Total certain operating expenses | 8,163 | 37,267 | (10,026 | ) | - | 35,404 | ||||||||||||||
| 12,725 | 4,100 | (827 | ) | - | 15,998 | |||||||||||||||
| Interest and other income | 134 | 24 | - | 3 | 161 | |||||||||||||||
| Corporate general and administrative expenses | - | - | (1,801 | ) | (1,801 | ) | ||||||||||||||
| Interest expense | - | - | - | (5,072 | ) | (5,072 | ) | |||||||||||||
| Debt extinguishment and interest rate derivative expense | - | - | - | (10 | ) | (10 | ) | |||||||||||||
| Benefit from income taxes applicable to funds | ||||||||||||||||||||
| from operations modified | - | - | - | 6 | 6 | |||||||||||||||
| Non-real estate related depreciation and amortization | - | (190 | ) | - | (57 | ) | (247 | ) | ||||||||||||
| Earnings from unconsolidated real estate partnerships, | ||||||||||||||||||||
| before real estate related depreciation and amortization | (1 | ) | - | - | - | (1 | ) | |||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||
| real estate related depreciation and amortization | (206 | ) | - | - | - | (206 | ) | |||||||||||||
| Funds from operations modified (FFOM) | 12,652 | 3,934 | (827 | ) | (6,931 | ) | 8,828 | |||||||||||||
| Amortization of intangibles related to purchase | ||||||||||||||||||||
| accounting, net of income tax benefit | (42 | ) | (536 | ) | - | 225 | (353 | ) | ||||||||||||
| Funds from operations (FFO) | 12,610 | 3,398 | (827 | ) | (6,706 | ) | 8,475 | |||||||||||||
| Real estate related depreciation and amortization | (7,225 | ) | - | - | - | (7,225 | ) | |||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||
| real estate related depreciation and amortization | 206 | - | - | - | 206 | |||||||||||||||
| Net income (loss) | 5,591 | 3,398 | (827 | ) | (6,706 | ) | 1,456 | |||||||||||||
| Net income attributable to the noncontrolling interest in: | ||||||||||||||||||||
| Real estate partnerships | (17 | ) | - | - | - | (17 | ) | |||||||||||||
| Operating partnership | - | - | - | (191 | ) | (191 | ) | |||||||||||||
| Net income (loss) attributable to Cogdell Spencer Inc. | $ | 5,574 | $ | 3,398 | $ | (827 | ) | $ | (6,897 | ) | $ | 1,248 | ||||||||
Cogdell Spencer Inc
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 | ||||||||||||||||||||
| Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | Sept. 30, 2008 | ||||||||||||||||
| Net income (loss) | $ | 1,456 | $ | (3,050 | ) | $ | (102,324 | ) | $ | (1,505 | ) | $ | (805 | ) | ||||||
| Add: | ||||||||||||||||||||
| Real estate related depreciation and amortization: | ||||||||||||||||||||
| Wholly-owned and consolidated properties | 7,222 | 7,344 | 7,340 | 7,408 | 7,548 | |||||||||||||||
| Unconsolidated real estate partnerships | 3 | 3 | 3 | 3 | 3 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||
| real estate related depreciation and amortization | (206 | ) | (224 | ) | (245 | ) | (215 | ) | (977 | ) | ||||||||||
Funds from Operations (FFO) (1) | 8,475 | 4,073 | (95,226 | ) | 5,691 | 5,769 | ||||||||||||||
| Amortization of intangibles related to purchase | ||||||||||||||||||||
| accounting, net of tax benefit | 353 | 842 | 1,540 | 2,390 | 2,390 | |||||||||||||||
Funds from Operations Modified (FFOM) (1) | 8,828 | 4,915 | (93,686 | ) | 8,081 | 8,159 | ||||||||||||||
| Impairment charges, net of income tax benefit | - | - | 101,746 | - | - | |||||||||||||||
| Debt extinguishment and interest rate derivative | ||||||||||||||||||||
| expense, net of income tax benefit | 6 | 1,519 | - | - | - | |||||||||||||||
| FFOM, excluding impairment charge and debt | ||||||||||||||||||||
| extinguishment and interest rate derivative charge | $ | 8,834 | $ | 6,434 | $ | 8,060 | $ | 8,081 | $ | 8,159 | ||||||||||
| FFO per share and unit - basic and diluted | $ | 0.17 | $ | 0.12 | $ | (3.54 | ) | $ | 0.21 | $ | 0.23 | |||||||||
| FFOM per share and unit - basic and diluted | $ | 0.18 | $ | 0.14 | $ | (3.49 | ) | $ | 0.30 | $ | 0.33 | |||||||||
| FFOM per share and unit - basic and diluted, excluding | ||||||||||||||||||||
| impairment charge and debt extinguishment and | ||||||||||||||||||||
| interest rate derivative charge | $ | 0.18 | $ | 0.19 | $ | 0.30 | $ | 0.30 | $ | 0.33 | ||||||||||
| Weighted average shares and units outstanding | 50,070 | 34,653 | 26,869 | 26,890 | 24,993 | |||||||||||||||
| ______________________________ | ||||||||||||||||||||
| (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. | ||||||||||
Cogdell Spencer Inc.
| Coverage Ratios | ||||||||||||||||||||
| (in thousands, except ratio amounts) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | Sept. 30, 2008 | ||||||||||||||||
| Interest coverage ratio: | ||||||||||||||||||||
| EBITDA | $ | 14,354 | $ | 11,804 | $ | 15,106 | $ | 15,312 | $ | 18,692 | ||||||||||
| Cash paid for interest | 5,319 | 5,182 | 5,503 | 6,006 | 6,328 | |||||||||||||||
| Interest coverage ratio | 2.70 | 2.28 | 2.75 | 2.55 | 2.95 | |||||||||||||||
| Fixed charge coverage ratio: | ||||||||||||||||||||
| EBITDA | $ | 14,354 | $ | 11,804 | $ | 15,106 | $ | 15,312 | $ | 18,692 | ||||||||||
| Fixed charges: | ||||||||||||||||||||
| Cash paid for interest | 5,319 | 5,182 | 5,503 | 6,006 | 6,328 | |||||||||||||||
| Principal payments | 943 | 997 | 996 | 853 | 906 | |||||||||||||||
| Total fixed charges | $ | 6,262 | $ | 6,179 | $ | 6,499 | $ | 6,859 | $ | 7,234 | ||||||||||
| Fixed charge coverage ratio | 2.29 | 1.91 | 2.32 | 2.23 | 2.58 | |||||||||||||||
Reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") (1) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Reconciliation of net income (loss) to EBITDA: | ||||||||||||||||
| Net income (loss) | $ | 1,456 | $ | (805 | ) | $ | (103,919 | ) | $ | (6,352 | ) | |||||
| Interest expense | 5,072 | 6,743 | 16,691 | 18,695 | ||||||||||||
| Income tax espense (benefit) | (231 | ) | 883 | (22,065 | ) | 143 | ||||||||||
| Depreciation and amortization | 8,047 | 11,871 | 27,136 | 33,275 | ||||||||||||
| Impairment charges | - | - | 120,920 | - | ||||||||||||
| Debt extinguishment and interest rate derivative expense | 10 | - | 2,501 | - | ||||||||||||
| EBITDA | $ | 14,354 | $ | 18,692 | $ | 41,264 | $ | 45,761 | ||||||||
| ____________________ | ||||||||||||||||
| (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. |
Cogdell Spencer Inc.
| Consolidated Debt Analysis as of September 30, 2009 | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
Stated Interest Rate (%) | Interest Rate (%) | Principal Balance | Maturity Date | Amortization (years) | |||||||||||||
| Secured mortgage loans - wholly-owned properties: | |||||||||||||||||
Methodist Professional Center I (1) | LIBOR + 1.30 | 6.25 | (2) | $ | 30,000 | 10/31/2009 | Interest only | ||||||||||
Hanover Medical Office Building One (3) | 6.00 | 6.00 | 4,724 | 11/1/2009 | 25 | ||||||||||||
| Healthpark Medical Office Building | 5.35 | 5.35 | 8,700 | 1/1/2010 | Interest only | ||||||||||||
| Mulberry Medical Park | 6.49 | 6.49 | 940 | 4/15/2010 | 20 | ||||||||||||
| Rocky Mount Medical Park | Prime | 4.25 | (4) | 6,924 | 12/15/2010 | 25 | |||||||||||
| Baptist Northwest Medical Park | 8.25 | 8.25 | 2,145 | 2/1/2011 | 25 | ||||||||||||
| St. Francis CMOB, St. Francis MOB | LIBOR + 1.85 | 5.17 | (2) | 6,916 | 6/15/2011 | 39 | |||||||||||
| St. Francis Medical Plaza, St. Francis Women's Center | LIBOR + 1.85 | 5.17 | (2) | 7,428 | 6/15/2011 | 39 | |||||||||||
| Beaufort Medical Plaza | LIBOR + 1.85 | 5.65 | (2) | 4,794 | 8/18/2011 | 25 | |||||||||||
| River Hills Medical Plaza | LIBOR + 3.75 | 5.53 | (2) | 3,795 | 12/22/2011 | Interest only | |||||||||||
| East Jefferson Medical Plaza | LIBOR + 3.75 | 5.55 | (2) | 11,600 | 1/31/2012 | Interest only | |||||||||||
| Barclay Downs | 6.50 | 6.50 | 4,401 | 11/15/2012 | 25 | ||||||||||||
| Providence MOB I, II and III | 6.12 | 6.12 | 8,390 | 1/12/2013 | 25 | ||||||||||||
| One Medical Park - HMOB | 5.93 | 5.93 | 5,154 | 11/1/2013 | 20 | ||||||||||||
| Three Medical Park | 5.55 | 5.55 | 7,726 | 3/25/2014 | 25 | ||||||||||||
| Medical Arts Center of Orangeburg | LIBOR + 3.25 | 6.00 | (5) | 2,391 | 5/5/2014 | 20 | |||||||||||
| Lancaster Rehabilitation Hospital | 6.71 | 6.71 | 9,659 | 6/26/2014 | 25 | ||||||||||||
| Rowan Outpatient Surgery Center | 6.00 | 6.00 | 3,259 | 7/6/2014 | 25 | ||||||||||||
| East Jefferson Medical Office Building | 6.01 | 6.01 | 9,025 | 8/10/2014 | 25 | ||||||||||||
| Rocky Mount Kidney Center | 6.75 | 6.75 | 1,009 | 8/21/2014 | 20 | ||||||||||||
| HealthPartners Central Minnesota Clinic (construction loan) | LIBOR + 3.25 | 6.00 | (6) | 1,177 | 11/1/2014 | 22.5 | (7) | ||||||||||
Copperfield Medical Mall, Harrisburg Medical Mall, Midland Medical Mall and Weddington Internal Pediatric Medicine | LIBOR + 1.50 | 3.25 | (8) | 8,328 | 12/15/2014 | 25 | |||||||||||
| Peerless Medical Center | 6.06 | 6.06 | 7,379 | 9/1/2016 | 30 | ||||||||||||
| Central New York Medical Center | 6.22 | 6.22 | 24,500 | 5/15/2017 | Interest only | ||||||||||||
| Parkridge MOB | 5.68 | 5.68 | 13,500 | 6/1/2017 | Interest only | (9) | |||||||||||
| Summit Professional Plaza I and II | 6.18 | 6.18 | 15,925 | 9/1/2017 | Interest only | ||||||||||||
| Roper MOB | 7.10 | 7.10 | 9,465 | 6/1/2019 | 25 | ||||||||||||
| University Physicians - Grants Ferry (construction loan) | LIBOR + 2.25 | 2.50 | (10) | 2,293 | 4/20/2019 | 25 | (7) | ||||||||||
| The Medical Physicians Tower (construction loan) | LIBOR + 2.50 | 4.50 | (11) | 4,152 | 3/1/2019 | 25 | (7) | ||||||||||
| Total / weighted average mortgages - wholly-owned properties | 5.82 | 225,699 | |||||||||||||||
Cogdell Spencer Inc.
| (dollars in thousands) | ||||||||||||||||
Stated Interest Rate (%) | Interest Rate (%) | Principal Balance | Maturity Date | Amortization (years) | ||||||||||||
| Total / weighted average mortgages - wholly-owned properties | 5.82 | $ | 225,699 | |||||||||||||
| Secured revolving credit facility: | ||||||||||||||||
| Tranche I | LIBOR + 1.15 | 3.97 | (2) | 50,000 | 3/10/2011 | Interest only | ||||||||||
| Tranche II | LIBOR + 1.15 | 4.26 | (2) | 30,000 | 3/10/2011 | Interest only | ||||||||||
| Total / weighted average secured revolving credit facility | 4.08 | 80,000 | ||||||||||||||
| Term loan | LIBOR + 4.50 | 7.32 | (2) | 50,000 | 3/10/2011 | Interest only | ||||||||||
| Consolidated real estate partnerships: | ||||||||||||||||
| Alamance Regional Mebane Outpatient Center | LIBOR + 1.30 | 1.55 | 12,242 | 5/1/2010 | 25 | |||||||||||
| Alamance Regional Mebane Outpatient Center | LIBOR + 4.00 | 4.25 | 1,470 | 5/1/2010 | interest only | |||||||||||
| Rocky Mount MOB | 6.03 | 6.03 | 5,290 | 3/1/2012 | 25 | |||||||||||
| Lancaster General Health Campus MOB | LIBOR + 1.20 | 5.23 | (2) | 10,504 | 3/2/2015 | 25 | ||||||||||
| The Woodlands Center (construction loan) | LIBOR + 1.50 | 1.75 | (12) | 11,599 | 9/26/2018 | 25 | (7) | |||||||||
| Total / weighted average consolidated real estate partnerships | 3.07 | 41,105 | ||||||||||||||
| Total / weighted average debt | 396,804 | |||||||||||||||
| Unamortized premium | 159 | |||||||||||||||
| Total / weighted average debt | 5.37 | $ | 396,963 | |||||||||||||
| ___________ | |||||||||||||||||||||||||
| (1) In October 2009, the Company exercised its extension option and extended this note for a two year period to October 2011. The interest | |||||||||||||||||||||||||
| rate remains LIBOR plus 1.30% and the variable to fixed swap agreement ended in October 2009 and was not renewed. Associated | |||||||||||||||||||||||||
| with the extension, a $4.5 million principal payment was made. | |||||||||||||||||||||||||
| (2) Represents the fixed rate for floating rate loans that have been swapped to fixed. | |||||||||||||||||||||||||
| (3) In October 2009, the Company refinanced this mortgage note payable with a $6.0 million mortgage note payable that matures in | |||||||||||||||||||||||||
| November 2014, has a fixed interest rate of 7.35%, and a 25-year amortization. | |||||||||||||||||||||||||
| (4) Maximum interest of 7.25%; minimum interest of 4.25%. | |||||||||||||||||||||||||
| (5) Minimum interest of 6.0% | |||||||||||||||||||||||||
| (6) Minimum interest of 6.0%. The Company has entered into a forward starting interest rate swap agreement that effectively fixes the | |||||||||||||||||||||||||
| interest rate at 6.8% beginning December 2010, when the construction phase of the loan expires and converts to an amortizing loan. | |||||||||||||||||||||||||
| (7) Interest only during the construction period. | |||||||||||||||||||||||||
| (8) Maximum interest of 8.25%; minimum interest of 3.25%. | |||||||||||||||||||||||||
| (9) Interest only through June 2012. Principal and interest payments from July 2012 through June 2017. | |||||||||||||||||||||||||
| (10) The Company has entered into a forward starting interest rate swap agreement that effectively fixes the interest rate at 5.95% beginning | |||||||||||||||||||||||||
| November 2010, when the construction phase of the loan expires and converts to an amortizing loan. | |||||||||||||||||||||||||
| (11) Minimum interest of 4.5%. The Company has entered into a forward starting interest rate swap agreement that effectively fixes the | |||||||||||||||||||||||||
| interest rate at 6.19% beginning October 2010, when the construction phase of the loan expires and converts to an amortizing loan. | |||||||||||||||||||||||||
| (12) The Company has entered into a forward starting interest rate swap agreement that effectively fixes the interest rate at 6.21% beginning | |||||||||||||||||||||||||
| May 2010, when the construction phase of the loan expires and converts to an amortizing loan. | |||||||||||||||||||||||||
Cogdell Spencer Inc.
| Consolidated Debt Analysis as of September 30, 2009 | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Future maturities and principal payments | ||||||||||||||||||||
| Future Scheduled Repayments | Percent of Total Mortgages | Weighted Average Interest Rate on Maturing Debt (1) | ||||||||||||||||||
| Year | Amortization | Maturities | Total | |||||||||||||||||
| 2009 | $ | 871 | $ | 34,712 | $ | 35,583 | 13 | % | 6.2 | % | ||||||||||
| 2010 | 3,873 | 29,562 | 33,435 | 13 | % | 3.4 | % | |||||||||||||
| 2011 | 3,990 | 24,087 | 28,077 | 11 | % | 5.6 | % | |||||||||||||
| 2012 | 4,014 | 20,712 | 24,726 | 9 | % | 5.9 | % | |||||||||||||
| 2013 | 3,956 | 11,577 | 15,533 | 6 | % | 6.1 | % | |||||||||||||
| Thereafter | 11,000 | 118,450 | 129,450 | 49 | % | 5.5 | % | |||||||||||||
| Total mortgages | $ | 27,704 | $ | 239,100 | $ | 266,804 | 100 | % | 5.8 | % | ||||||||||
| Secured revolving credit facility (March 2011 maturity) | - | 80,000 | 80,000 | |||||||||||||||||
| Term loan (March 2011 maturity) | - | 50,000 | 50,000 | |||||||||||||||||
| Total | $ | 27,704 | $ | 369,100 | $ | 396,804 | ||||||||||||||
| Debt profile | Weighted Average | |||||||||||||||
| Balance | Percent of Total | Interest Rate (1) | Maturity (Years) | |||||||||||||
| Fixed rate mortgages - wholly-owned properties | $ | 200,434 | 51 | % | 6.0 | % | 4.2 | |||||||||
| Variable rate mortgages - wholly-owned properties | 25,265 | 6 | % | 4.0 | % | 5.1 | ||||||||||
| Secured revolving credit facility | 80,000 | 20 | % | 4.1 | % | 1.4 | ||||||||||
| Term loan | 50,000 | 13 | % | 7.3 | % | 1.4 | ||||||||||
| Mortgages - consolidated real estate partnerships | 41,105 | 10 | % | 3.1 | % | 4.4 | ||||||||||
| Total | $ | 396,804 | 100 | % | 5.4 | % | 3.4 | |||||||||
| Secured revolving credit facility - matures March 2011 | |||||
| Facility | $ | 150,000 | |||
| Less: Outstanding | 80,000 | ||||
| Less: Letters of credit | 8,257 | ||||
| Availability | $ | 61,743 | |||
| Capitalized interest -3Q 2009 | $ | 209 | |||
| Covenant summary | ||||||
| Required | Current Quarter | In Compliance | ||||
Secured revolving credit facility (2) | ||||||
| Maximum total leverage ratio | < 70% | 49 | % | Yes | ||
| Maximum real estate leverage ratio | < 70% | 55 | % | Yes | ||
| Minimum fixed charge coverage ratio | > 1.50x | 2.21 | x | Yes | ||
| Minimum required tangible net worth | >$ 141,983 | $ | 195,64 | 5 | Yes | |
| Maximum total debt to real estate value ratio | < 90% | 63 | % | Yes | ||
Term loan (2): | ||||||
| Maximum Erdman senior indebtedness to adjusted EBITDA | < 3.50x | 2.55 | x | Yes | ||
| Maximum Erdman total indebtedness to adjusted EBITDA | < 5.50x | 2.55 | x | Yes | ||
| Minimum adjusted EBITDA to fixed charges | > 2.00x | 3.24 | x | Yes | ||
| ___________________ | ||||||
(1) Includes the fixed rate swapped interest rates. (2) For covenant definitions and a listing of non-financial debt covenants, please refer to the Company's filings | ||||
| with the Securities and Exchange Commission. | ||||
Cogdell Spencer Inc.
| Property Listing as of September 30, 2009 | ||||||||||||||||||||||
| Location | Ownership | Net Rentable Square Feet | Occupancy Rate | Annualized Rent | Annualized Rent Per Leased Square Foot | |||||||||||||||||
| California | ||||||||||||||||||||||
| Verdugo Professional Building I | Glendale | 100.0 | % | 63,887 | 95.2 | % | $ | 1,938,277 | $ | 31.86 | ||||||||||||
| Verdugo Professional Building II | Glendale | 100.0 | % | 42,906 | 99.5 | % | 1,420,139 | 33.26 | ||||||||||||||
| 106,793 | 96.9 | % | 3,358,416 | 32.44 | ||||||||||||||||||
| Georgia | ||||||||||||||||||||||
| Augusta POB I | Augusta | 100.0 | % | 99,494 | 82.2 | % | 1,145,849 | 14.01 | ||||||||||||||
| Augusta POB II | Augusta | 100.0 | % | 125,634 | 87.6 | % | 2,244,082 | 20.38 | ||||||||||||||
| Augusta POB III | Augusta | 100.0 | % | 47,034 | 90.0 | % | 891,990 | 21.08 | ||||||||||||||
| Augusta POB IV | Augusta | 100.0 | % | 55,134 | 88.9 | % | 966,623 | 19.72 | ||||||||||||||
| Summit Professional Plaza I | Brunswick | 100.0 | % | 33,039 | 93.5 | % | 831,554 | 26.92 | ||||||||||||||
| Summit Professional Plaza II | Brunswick | 100.0 | % | 64,233 | 96.7 | % | 1,774,742 | 28.56 | ||||||||||||||
| 424,568 | 88.6 | % | 7,854,840 | 20.88 | ||||||||||||||||||
| Indiana | ||||||||||||||||||||||
Methodist Professional Center I (1) | Indianapolis | 100.0 | % | 150,035 | 95.6 | % | 3,477,361 | 24.25 | ||||||||||||||
| Methodist Professional Center II (sub-lease) | Indianapolis | 100.0 | % | 24,080 | 100.0 | % | 605,739 | 25.16 | ||||||||||||||
| 174,115 | 96.2 | % | 4,083,100 | 24.38 | ||||||||||||||||||
| Kentucky | ||||||||||||||||||||||
| Our Lady of Bellefonte | Ashland | 100.0 | % | 46,907 | 95.9 | % | 1,154,343 | 25.66 | ||||||||||||||
| Adjacent parking deck | 868,554 | |||||||||||||||||||||
| 46,907 | 95.9 | % | 2,022,897 | 25.66 | (2) | |||||||||||||||||
| Louisiana | ||||||||||||||||||||||
| East Jefferson Medical Office Building | Metairie | 100.0 | % | 119,921 | 100.0 | % | 2,564,795 | 21.39 | ||||||||||||||
| East Jefferson Medical Plaza | Metairie | 100.0 | % | 123,184 | 100.0 | % | 2,760,449 | 22.41 | ||||||||||||||
| East Jefferson Medical Specialty Building | Metairie | 100.0 | % | 10,809 | 100.0 | % | 968,693 | 89.62 | ||||||||||||||
| 253,914 | 100.0 | % | 6,293,937 | 24.79 | ||||||||||||||||||
| New York | ||||||||||||||||||||||
Central New York Medical Center (3) | Syracuse | 100.0 | % | 111,634 | 96.7 | % | 3,003,222 | 27.82 | ||||||||||||||
| North Carolina | ||||||||||||||||||||||
| Alamance Regional Mebane Outpatient Center | Mebane | 35.1 | % | 68,206 | 71.1 | % | 1,777,191 | 36.67 | ||||||||||||||
| Barclay Downs | Charlotte | 100.0 | % | 38,395 | 100.0 | % | 868,845 | 22.63 | ||||||||||||||
| Birkdale Medical Village | Huntersville | 100.0 | % | 64,669 | 100.0 | % | 1,439,283 | 22.26 | ||||||||||||||
| Birkdale Retail | Huntersville | 100.0 | % | 8,269 | 100.0 | % | 219,787 | 26.58 | ||||||||||||||
| Cabarrus POB | Concord | 100.0 | % | 84,972 | 98.2 | % | 1,876,982 | 22.50 | ||||||||||||||
| Copperfield Medical Mall | Concord | 100.0 | % | 26,000 | 100.0 | % | 619,286 | 23.82 | ||||||||||||||
| Copperfield MOB | Concord | 100.0 | % | 61,789 | 87.9 | % | 1,302,208 | 23.99 | ||||||||||||||
| East Rocky Mount Kidney Center | Rocky Mount | 100.0 | % | 8,043 | 100.0 | % | 158,849 | 19.75 | ||||||||||||||
| Gaston Professional Center | Gastonia | 100.0 | % | 114,956 | 100.0 | % | 2,765,656 | 24.06 | ||||||||||||||
| Adjacent parking deck | 606,141 | |||||||||||||||||||||
| Harrisburg Family Physicians Building | Harrisburg | 100.0 | % | 8,202 | 100.0 | % | 219,903 | 26.81 | ||||||||||||||
| Harrisburg Medical Mall | Harrisburg | 100.0 | % | 18,360 | 100.0 | % | 495,465 | 26.99 | ||||||||||||||
| Lincoln/Lakemont Family Practice Center | Lincolnton | 100.0 | % | 16,500 | 100.0 | % | 390,119 | 23.64 | ||||||||||||||
| Mallard Crossing Medical Park | Charlotte | 100.0 | % | 52,540 | 62.9 | % | 852,380 | 25.78 | ||||||||||||||
| Midland Medical Mall | Midland | 100.0 | % | 14,610 | 100.0 | % | 437,341 | 29.93 | ||||||||||||||
| Mulberry Medical Park | Lenoir | 100.0 | % | 24,992 | 87.0 | % | 458,317 | 21.07 | ||||||||||||||
| Northcross Family Medical Practice Building | Charlotte | 100.0 | % | 8,018 | 100.0 | % | 229,898 | 28.67 | ||||||||||||||
| Randolph Medical Park | Charlotte | 100.0 | % | 84,131 | 71.8 | % | 1,317,286 | 21.80 | ||||||||||||||
| Rocky Mount Kidney Center | Rocky Mount | 100.0 | % | 10,105 | 100.0 | % | 199,574 | 19.75 | ||||||||||||||
| Rocky Mount Medical Office Building | Rocky Mount | 34.5 | % | 35,393 | 95.7 | % | 923,616 | 27.28 | ||||||||||||||
| Rocky Mount Medical Park | Rocky Mount | 100.0 | % | 96,993 | 100.0 | % | 2,036,941 | 21.00 | ||||||||||||||
Cogdell Spencer Inc.
| Location | Ownership | Net Rentable Square Feet | Occupancy Rate | Annualized Rent | Annualized Rent Per Leased Square Foot | |||||||||||||||||
| North Carolina (continued) | ||||||||||||||||||||||
| Rowan Outpatient Surgery Center | Salisbury | 100.0 | % | 19,464 | 100.0 | % | 435,162 | 22.36 | ||||||||||||||
| Weddington Internal & Pediatric Medicine | Concord | 100.0 | % | 7,750 | 100.0 | % | 199,904 | 25.79 | ||||||||||||||
| 872,357 | 91.2 | % | 19,830,134 | 24.16 | (2) | |||||||||||||||||
| Pennsylvania | ||||||||||||||||||||||
| Lancaster Rehabilitation Hospital | Lancaster | 100.0 | % | 52,878 | 100.0 | % | 1,258,155 | 23.79 | ||||||||||||||
| Lancaster General Health Campus MOB | Lancaster | 80.9 | % | 64,214 | 100.0 | % | 1,980,217 | 30.84 | ||||||||||||||
| 117,092 | 100.0 | % | 3,238,372 | 27.66 | ||||||||||||||||||
| South Carolina | ||||||||||||||||||||||
| 200 Andrews | Greenville | 100.0 | % | 25,902 | 100.0 | % | 621,138 | 23.98 | ||||||||||||||
| Baptist Northwest | Columbia | 100.0 | % | 38,703 | 41.3 | % | 354,267 | 22.15 | ||||||||||||||
| Beaufort Medical Plaza | Beaufort | 100.0 | % | 59,340 | 100.0 | % | 1,288,908 | 21.72 | ||||||||||||||
| Carolina Forest | Myrtle Beach | 100.0 | % | 38,902 | 43.5 | % | 525,068 | 31.05 | ||||||||||||||
| Mary Black Westside MOB | Spartanburg | 100.0 | % | 37,455 | 100.0 | % | 817,044 | 21.81 | ||||||||||||||
| Medical Arts Center of Orangeburg | Orangeburg | 100.0 | % | 49,324 | 80.1 | % | 774,004 | 19.58 | ||||||||||||||
| Mt. Pleasant MOB | Mt. Pleasant | 100.0 | % | 38,735 | 77.4 | % | 787,813 | 26.29 | ||||||||||||||
| One Medical Park - HMOB | Columbia | 100.0 | % | 69,840 | 80.8 | % | 1,369,857 | 24.27 | ||||||||||||||
| Parkridge MOB | Columbia | 100.0 | % | 89,451 | 94.6 | % | 2,054,587 | 24.28 | ||||||||||||||
| Providence MOB I | Columbia | 100.0 | % | 48,500 | 91.7 | % | 967,671 | 21.75 | ||||||||||||||
| Providence MOB II | Columbia | 100.0 | % | 23,280 | 100.0 | % | 481,602 | 20.69 | ||||||||||||||
| Providence MOB III | Columbia | 100.0 | % | 54,417 | 51.4 | % | 615,453 | 22.01 | ||||||||||||||
| River Hills Medical Plaza | Little River | 100.0 | % | 27,566 | 79.5 | % | 707,532 | 32.29 | ||||||||||||||
| Roper MOB | Charleston | 100.0 | % | 122,784 | 100.0 | % | 2,559,243 | 20.84 | ||||||||||||||
| St. Francis Community Medical Office Building | Greenville | 100.0 | % | 45,140 | 100.0 | % | 1,185,828 | 26.27 | ||||||||||||||
| St. Francis Medical Office Building | Greenville | 100.0 | % | 49,767 | 100.0 | % | 1,111,631 | 22.34 | ||||||||||||||
| St. Francis Medical Plaza | Greenville | 100.0 | % | 62,724 | 52.5 | % | 655,407 | 19.91 | ||||||||||||||
| St. Francis Women's Center | Greenville | 100.0 | % | 57,590 | 73.4 | % | 905,183 | 21.43 | ||||||||||||||
| Three Medical Park | Columbia | 100.0 | % | 88,755 | 93.8 | % | 2,027,278 | 24.34 | ||||||||||||||
| West Medical I | Charleston | 100.0 | % | 28,734 | 100.0 | % | 819,105 | 28.51 | ||||||||||||||
| 1,056,909 | 84.1 | % | 20,628,619 | 23.21 | ||||||||||||||||||
| Tennessee | ||||||||||||||||||||||
| Healthpark Medical Office Building | Chattanooga | 100.0 | % | 52,151 | 100.0 | % | 1,916,887 | 36.76 | ||||||||||||||
| Peerless Medical Center | Cleveland | 100.0 | % | 40,506 | 100.0 | % | 1,231,652 | 30.41 | ||||||||||||||
| 92,657 | 100.0 | % | 3,148,539 | 33.98 | ||||||||||||||||||
| Virginia | ||||||||||||||||||||||
| Hanover Medical Office Building I | Mechanicsville | 100.0 | % | 56,610 | 92.7 | % | 1,491,796 | 28.42 | ||||||||||||||
| St. Mary's Medical Office Building North | Richmond | 100.0 | % | 30,617 | 90.1 | % | 700,573 | 25.40 | ||||||||||||||
| 87,227 | 91.8 | % | 2,192,369 | 27.38 | ||||||||||||||||||
| Total | 3,344,173 | 90.6 | % | $ | 75,654,445 | $ | 24.50 | (2) | ||||||||||||||
| __________________ | ||||||||||||||||||||||
(1) Parking revenue from an adjacent parking deck is approximately $93,500 per month, or $1,122,000 annualized. | ||||||||||||||||||||||
(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 $97,500 per month, or $1,170,000 annualized. | ||||||||||||||||||||||
Cogdell Spencer Inc.
| Property Occupancy Rates | ||||||||||||||||||||
September 30, 2009 | June 30, 2009 | March 31, 2009 | December 31, 2008 | September 30, 2008 | ||||||||||||||||
| California | ||||||||||||||||||||
| Verdugo Professional Building I | 95.2 | % | 94.5 | % | 94.5 | % | 92.6 | % | 94.5 | % | ||||||||||
| Verdugo Professional Building II | 99.5 | % | 97.3 | % | 88.6 | % | 88.6 | % | 88.6 | % | ||||||||||
| Georgia | ||||||||||||||||||||
| Augusta POB I | 82.2 | % | 85.3 | % | 84.7 | % | 92.7 | % | 77.4 | % | ||||||||||
| Augusta POB II | 87.6 | % | 87.6 | % | 87.6 | % | 95.1 | % | 93.2 | % | ||||||||||
| Augusta POB III | 90.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Augusta POB IV | 88.9 | % | 88.9 | % | 88.9 | % | 88.9 | % | 97.1 | % | ||||||||||
| 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 | 95.6 | % | 95.6 | % | 98.2 | % | 99.0 | % | 100.0 | % | ||||||||||
| Methodist Professional Center II (sub-lease) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Kentucky | ||||||||||||||||||||
| Our Lady of Bellefonte | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | 100.0 | % | ||||||||||
| Louisiana | ||||||||||||||||||||
| East Jefferson Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| East Jefferson Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| East Jefferson Medical Specialty Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| New York | ||||||||||||||||||||
| Central New York Medical Center | 96.7 | % | 96.7 | % | 96.7 | % | 96.7 | % | 96.7 | % | ||||||||||
| North Carolina | ||||||||||||||||||||
| Alamance Regional Mebane Outpatient Center | 71.1 | % | 66.9 | % | n/a | n/a | n/a | |||||||||||||
| Barclay Downs | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Birkdale Medical Village | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Birkdale Retail | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Cabarrus POB | 98.2 | % | 98.2 | % | 98.2 | % | 95.0 | % | 92.7 | % | ||||||||||
| Copperfield Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Copperfield MOB | 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 | % | ||||||||||
| Gaston Professional Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Harrisburg Family Physicians Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Harrisburg Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Lincoln/Lakemont Family Practice Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mallard Crossing Medical Park | 62.9 | % | 62.9 | % | 62.9 | % | 62.9 | % | 62.9 | % | ||||||||||
| Midland Medical Mall | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mulberry Medical Park | 87.0 | % | 87.0 | % | 87.0 | % | 85.4 | % | 85.4 | % | ||||||||||
| Northcross Family Medical Practice Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Randolph Medical Park | 71.8 | % | 64.8 | % | 67.6 | % | 67.6 | % | 62.1 | % | ||||||||||
| Rocky Mount Kidney Center | 100.0 | % | 100.0 | % | 100.0 | % | 95.7 | % | 95.7 | % | ||||||||||
| Rocky Mount Medical Office Building | 95.7 | % | 95.7 | % | 95.7 | % | 100.0 | % | 100.0 | % | ||||||||||
| Rocky Mount Medical Park | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| 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 | % | ||||||||||
Cogdell Spencer Inc.
| Property Occupancy Rates | ||||||||||||||||||||
September 30, 2009 | June 30, 2009 | March 31, 2009 | December 31, 2008 | September 30, 2008 | ||||||||||||||||
| Pennsylvania | ||||||||||||||||||||
| Lancaster Rehabilitation Hospital | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Lancaster Health Campus MOB | 100.0 | % | 93.0 | % | 94.2 | % | 93.1 | % | 93.1 | % | ||||||||||
| South Carolina | ||||||||||||||||||||
| 190 Andrews | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Baptist Northwest | 41.3 | % | 41.3 | % | 41.3 | % | 41.3 | % | 41.3 | % | ||||||||||
| Beaufort Medical Plaza | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Carolina Forest | 43.5 | % | 43.5 | % | 43.5 | % | 43.5 | % | 43.5 | % | ||||||||||
| Mary Black Westside MOB | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Medical Arts Center of Orangeburg | 80.1 | % | 82.2 | % | 82.2 | % | 92.9 | % | 92.9 | % | ||||||||||
| Mt. Pleasant MOB | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | ||||||||||
| One Medical Park - HMOB | 80.8 | % | 80.3 | % | 80.3 | % | 80.3 | % | 80.3 | % | ||||||||||
| Parkridge MOB | 94.6 | % | 94.6 | % | 95.5 | % | 95.5 | % | 95.5 | % | ||||||||||
| Providence MOB I | 91.7 | % | 94.7 | % | 94.7 | % | 94.7 | % | 100.0 | % | ||||||||||
| Providence MOB II | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Providence MOB III | 51.4 | % | 51.4 | % | 73.4 | % | 73.4 | % | 73.4 | % | ||||||||||
| River Hills Medical Plaza | 79.5 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Roper MOB | 100.0 | % | 99.0 | % | 99.0 | % | 100.0 | % | 97.3 | % | ||||||||||
| St. Francis Community MOB | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| St. Francis Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| St. Francis Medical Plaza | 52.5 | % | 52.5 | % | 52.5 | % | 63.5 | % | 61.7 | % | ||||||||||
| St. Francis Women's Center | 73.4 | % | 73.4 | % | 73.4 | % | 73.4 | % | 73.4 | % | ||||||||||
| Three Medical Park | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | ||||||||||
| West Medical I | 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 | % | ||||||||||
| Peerless Medical Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Virginia | ||||||||||||||||||||
| Hanover Medical Office Building I | 92.7 | % | 84.2 | % | 89.3 | % | 96.6 | % | 96.6 | % | ||||||||||
| St. Mary's Medical Office Building North | 90.1 | % | 90.1 | % | 90.1 | % | 90.1 | % | 90.1 | % | ||||||||||
Cogdell Spencer Inc.
| Lease Expirations for Leases In Place at September 30, 2009 | ||||||||||||||||||||||||
Number of Leases Expiring | Net Rentable Square Feet | Percentage of Net Rentable Square Feet | Annualized Rent | Percentage of Property Annualized Rent | Annualized Rent Per Leased Square Foot | |||||||||||||||||||
| Available | - | 315,933 | 9.4 | % | $ | - | - | $ | - | |||||||||||||||
| 2009 | 62 | 131,872 | 3.9 | % | 3,135,500 | 4.1 | % | 23.78 | ||||||||||||||||
| 2010 | 123 | 491,676 | 14.7 | % | 11,173,216 | 14.8 | % | 22.72 | ||||||||||||||||
| 2011 | 88 | 306,061 | 9.2 | % | 7,134,862 | 9.4 | % | 23.31 | ||||||||||||||||
| 2012 | 138 | 637,742 | 19.1 | % | 17,048,945 | 22.5 | % | 24.42 | (1) | |||||||||||||||
| 2013 | 72 | 326,520 | 9.8 | % | 7,189,401 | 9.5 | % | 22.02 | ||||||||||||||||
| 2014 | 68 | 325,215 | 9.7 | % | 8,068,238 | 10.7 | % | 24.81 | ||||||||||||||||
| 2015 | 28 | 104,282 | 3.1 | % | 2,601,221 | 3.4 | % | 24.94 | ||||||||||||||||
| 2016 | 19 | 82,362 | 2.5 | % | 1,744,540 | 2.3 | % | 21.18 | ||||||||||||||||
| 2017 | 31 | 213,963 | 6.4 | % | 6,073,042 | 8.0 | % | 28.38 | ||||||||||||||||
| 2018 | 16 | 90,383 | 2.7 | % | 2,368,234 | 3.1 | % | 26.20 | ||||||||||||||||
| Thereafter | 24 | 318,164 | 9.5 | % | 9,117,246 | 12.1 | % | 28.66 | ||||||||||||||||
| Total | 669 | 3,344,173 | 100.0 | % | $ | 75,654,445 | 100.0 | % | $ | 24.50 | (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 September 30, 2009 | ||||||||||||
| Tenant | Annualized Rent | Percent of Portfolio | |||||||||||
| 1 | Carolinas HealthCare System | $ | 5,865,669 | 7.8% | |||||||||
2 | Palmetto Health Alliance | 3,354,843 | 4.4% | ||||||||||
| 3 | Bon Secours St. Francis Hospital | 2,720,265 | 3.6% | ||||||||||
4 | Lancaster General Hospital | 2,560,829 | 3.4% | ||||||||||
5 | Gaston Memorial Hospital | 2,026,734 | 2.7% | ||||||||||
6 | Jefferson Parish Hospital District #2 | 1,853,794 | 2.5% | ||||||||||
7 | University Hospital - Augusta, GA | 1,770,960 | 2.3% | ||||||||||
8 | Our Lady of Bellefonte | 1,675,695 | 2.2% | ||||||||||
9 | Southeast Georgia Health System | 1,642,077 | 2.2% | ||||||||||
10 | Boice Willis Clinic | 1,566,681 | 2.1% | ||||||||||
| $ | 25,037,547 | 33.1% | |||||||||||
Cogdell Spencer Inc.
| Acquisitions and Completed Developments for the period January 1, 2008 through September 30, 2009 | ||||||||||||||
| (dollars in thousands) | ||||||||||||||
| Property | Location | Type | Date Acquired / In-service | Net Rentable Square Feet | Purchase Price / Construction Cost | |||||||||
| 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 | |||||||||
Alamance Regional Mebane Outpatient Center (1) | Mebane, NC | Development | 3Q 2009 | 68,206 | 17,449 | |||||||||
| Total 2008 and 2009 | 260,909 | $ | 49,202 | |||||||||||
| (1) Owned by Mebane Medical Investors, LLC, which is a consolidated real estate partnership. The Company had a 35.1% ownership interest at September 30, 2009. | ||||||||||||||
| Alamance Regional Mebane Outpatient Center consists of a MOB and a cancer center, which became operational during 2Q 2009 and 3Q 2009, respectively. | ||||||||||||||
| Construction in Progress as of September 30, 2009 | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Property | Location | Estimated Completion Date | Net Rentable Square Feet | Investment to Date | Estimated Total Investment | Percentage Leased | |||||||||||||||
The Woodlands Center (1) | Pensacola, FL | 4Q 2009 | 76,000 | $ | 19,385 | $ | 25,900 | 100 | % | ||||||||||||
| The Medical Physicians Tower | Jackson, TN | 1Q 2010 | 107,000 | 15,335 | 21,100 | 75 | % | ||||||||||||||
| HealthPartners Central Minnesota Clinic | St. Cloud, MN | 2Q 2010 | 60,000 | 7,943 | 20,200 | 94 | % | ||||||||||||||
| University Physicians - Grants Ferry | Brandon, MS | 2Q 2010 | 50,600 | 6,510 | 13,900 | 100 | % | ||||||||||||||
| Land and pre-construction developments | - | 3,087 | - | ||||||||||||||||||
| 293,600 | $ | 52,260 | $ | 81,100 | |||||||||||||||||
| (1) Owned by Genesis Property Holding, LLC, which is a consolidated real estate partnership. The Company had a 40.0% ownership interest at September 30, 2009. | |||||||||||||||||||||
| Investment in Real Estate Properties | |||||
| (in thousands) |
| Three Months Ended | Nine Months Ended | |||||||
| September 30, 2009 | September 30, 2009 | |||||||
| Investment in real estate properties: | ||||||||
| Development, redevelopment, and acquisitions | $ | 18,577 | $ | 37,671 | ||||
| Second generation tenant improvements | 1,479 | 2,832 | ||||||
| Recurring property capital expenditures | 15 | 168 | ||||||
| Total | $ | 20,071 | $ | 40,671 | ||||