Exhibit 99.2
SUPPLEMENTAL OPERATING AND
FINANCIAL DATA
FOR THE QUARTER ENDED
December 31, 2009
The Woodlands Center for Specialized Medicine – Pensacola, Florida
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, strategic planning, delivery (design/build), 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.
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 grown through acquisitions and facility development to encompass a national footprint, including seven regional offices located throughout the United States (Atlanta, Charlotte, Dallas, Denver, Madison, Seattle, and Washington, D.C.). Client relationships and advance planning services 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 completed the first fully integrated project with the completion of The Woodlands Center for Specialized Medicine during the fourth quarter of 2009. The Company provided development, design/build (architectural, engineering and construction), and property management services on the medical office building and outpatient treatment center.
The Company’s capital projects team also 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 with a total estimated investment of approximately $55.4 million and holds of a pipeline of planning and delivery projects through the country.
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. Survey results for 2009 will be published in March 2010.
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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 December 31, 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.
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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 | ||||
| Chief Financial Officer | ||||||
| Christopher E. Lee | David J. Lubar | |||||
| Richard C. Neugent | Scott A. Ransom | |||||
| Randolph D. Smoak, Jr. M.D. | ||||||
| Equity Research Coverage | ||||||
| BMO Capital Markets | KeyBanc Capital Markets | |||||
| Richard Anderson - 212.885.4180 | Karin Ford - 917.368.2293 | |||||
| Janney Montgomery Scott | Raymond James & Associates | |||||
| Dan. Donlan - 215.665.6476 | Paul Puryear - 727.567.2253 | |||||
| Jefferies & Co., Inc. | SmithBarney Citigroup | |||||
| Tayo Okusanya - 212.336.7076 | David Toti - 212.816.1909 | |||||
| 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: 704.940.2959 | ||||||
| www.cogdell.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; customers’ access to financing; delays in project starts and cancellations by 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.
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| Financial and Operating Highlights | ||||||||||||||||
| (in thousands, except per share amounts, years, ratios and portfolio statistics) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Selected Operating Data | ||||||||||||||||
| Rental income | $ | 20,094 | $ | 19,781 | $ | 78,388 | $ | 76,163 | ||||||||
| Straight line rent | 149 | 146 | 556 | 569 | ||||||||||||
Fair value lease revenues (1) | 132 | 162 | 542 | 689 | ||||||||||||
| Rental revenue | 20,375 | 20,089 | 79,486 | 77,421 | ||||||||||||
| Property management and other fees | 807 | 935 | 3,336 | 3,460 | ||||||||||||
| Revenue from property operations | $ | 21,182 | $ | 21,024 | $ | 82,822 | $ | 80,881 | ||||||||
| Costs related to property operations | $ | 8,021 | $ | 7,920 | $ | 31,810 | $ | 31,065 | ||||||||
| Property operations gross margin | 62 | % | 62 | % | 62 | % | 62 | % | ||||||||
| Design-Build and development revenue | $ | 30,114 | $ | 78,860 | $ | 146,693 | $ | 254,481 | ||||||||
| Costs related to design-build contracts and development | $ | 21,388 | $ | 67,112 | $ | 113,961 | $ | 214,019 | ||||||||
| Design-Build and development gross margin | 29 | % | 15 | % | 22 | % | 16 | % | ||||||||
EBITDA (2) | $ | 15,926 | $ | 15,316 | $ | 57,106 | $ | 61,007 | ||||||||
| Interest expense | $ | 5,123 | $ | 6,428 | $ | 21,711 | $ | 25,017 | ||||||||
| Net income (loss) from continuing operations | $ | 3,356 | $ | (1,471 | ) | $ | (100,435 | ) | $ | (7,645 | ) | |||||
| Net income (loss) | $ | 1,956 | $ | (1,505 | ) | $ | (101,962 | ) | $ | (7,857 | ) | |||||
| Net income (loss) attributable to Cogdell Spencer, Inc. | $ | 1,556 | $ | (1,042 | ) | $ | (69,728 | ) | $ | (5,773 | ) | |||||
| Per share and unit - basic and diluted: | ||||||||||||||||
| Income from continuing operations attributable to | ||||||||||||||||
| Cogdell Spencer Inc. | $ | 0.06 | $ | (0.06 | ) | $ | (2.10 | ) | $ | (0.36 | ) | |||||
| Loss from discontinued operations attributable to | ||||||||||||||||
| Cogdell Spencer Inc. | $ | (0.02 | ) | $ | - | $ | (0.04 | ) | $ | (0.01 | ) | |||||
| Net income (loss) attributable to Cogdell Spencer Inc. | $ | 0.04 | $ | (0.06 | ) | $ | (2.14 | ) | $ | (0.37 | ) | |||||
Funds from Operations ("FFO") (3), excluding | ||||||||||||||||
non-recurring events (4) | $ | 7,877 | $ | 6,603 | $ | 28,464 | $ | 22,692 | ||||||||
| Per share and unit - basic and diluted | $ | 0.16 | $ | 0.25 | $ | 0.70 | $ | 0.94 | ||||||||
Funds from Operations Modified ("FFOM") (3), | ||||||||||||||||
excluding non-recurring events (4) | $ | 7,907 | $ | 8,993 | $ | 31,229 | $ | 30,675 | ||||||||
| Per share and unit - basic and diluted | $ | 0.16 | $ | 0.33 | $ | 0.77 | $ | 1.27 | ||||||||
| Dividends and distributions declared per share and unit | $ | 0.10 | $ | 0.225 | $ | 0.525 | 1.275 | |||||||||
As of Dec. 31, 2009 | As of Dec. 31, 2009 | ||||||||
| Selected Balance Sheet Data | Capitalization | ||||||||
| Cash and cash equivalents | $ | 25,914 | Common shares outstanding | 42,729 | |||||
| Book value of real estate assets before depreciation | $ | 604,462 | Units outstanding | 7,780 | |||||
| Total assets | $ | 752,663 | Total common shares and units outstanding | 50,509 | |||||
| Total liabilities | $ | 504,883 | Share price at end of period | $ | 5.66 | ||||
| Noncontrolling interests and equity | $ | 247,780 | Equity value at end of period (5) | $ | 285,881 | ||||
| Debt | $ | 410,892 | |||||||
| Total market capitalization | $ | 696,773 | |||||||
| Debt | Portfolio Statistics - In-service, Consolidated Properties (6) | ||||||||
| Weighted average interest rate | 5.4 | % | Number of properties | 62 | |||||
| Weighted average remaining maturity (years) | 3.7 | Total square footage | 3,381,664 | ||||||
| Debt / total assets | 55 | % | Occupancy | 91.5 | % | ||||
| ____________________ | |||||||||
| (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) For a detailed listing of non-recurring events, see FFO reconciliation on page 8. | |||||||
| (5) Assuming conversion of 100% of the operating partnership units into shares of common stock. | |||||||
| (6) Excludes held for sale property. | |||||||
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| Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Real estate properties: | ||||||||||||||||||||
| Operating real estate properties | $ | 561,124 | $ | 534,887 | $ | 531,069 | $ | 529,142 | $ | 527,710 | ||||||||||
| Less: Accumulated depreciation | (93,247 | ) | (87,109 | ) | (81,023 | ) | (74,892 | ) | (68,764 | ) | ||||||||||
| Total operating real estate properties, net | 467,877 | 447,778 | 450,046 | 454,250 | 458,946 | |||||||||||||||
| Construction in process | 43,338 | 52,260 | 36,419 | 22,260 | 15,314 | |||||||||||||||
| Total real estate properties, net | 511,215 | 500,038 | 486,465 | 476,510 | 474,260 | |||||||||||||||
| Cash and cash equivalents | 25,914 | 24,954 | 12,988 | 12,183 | 34,668 | |||||||||||||||
| Restricted cash | 3,060 | 13,924 | 13,444 | 12,672 | 12,959 | |||||||||||||||
| Tenant and accounts receivable, net | 12,993 | 17,910 | 30,318 | 34,701 | 43,520 | |||||||||||||||
| Goodwill | 108,683 | 108,683 | 108,683 | 108,683 | 180,435 | |||||||||||||||
| Trade names and trademarks | 41,240 | 41,240 | 41,240 | 41,240 | 75,969 | |||||||||||||||
| Intangible assets, net | 21,742 | 22,837 | 24,542 | 27,144 | 45,363 | |||||||||||||||
| Other assets | 25,599 | 29,226 | 29,583 | 31,468 | 29,180 | |||||||||||||||
| Other assets - held for sale | 2,217 | 3,691 | 3,705 | 3,714 | 3,736 | |||||||||||||||
| Total assets | $ | 752,663 | $ | 762,503 | $ | 750,968 | $ | 748,315 | $ | 900,090 | ||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Mortgage notes payable | $ | 280,892 | $ | 264,752 | $ | 253,387 | $ | 240,768 | $ | 238,448 | ||||||||||
| Revolving credit facility | 80,000 | 80,000 | 80,000 | 112,000 | 124,500 | |||||||||||||||
| Term Loan | 50,000 | 50,000 | 50,000 | 100,000 | 100,000 | |||||||||||||||
| Accounts payable | 15,293 | 18,708 | 21,187 | 19,650 | 22,775 | |||||||||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 13,189 | 23,216 | 21,556 | 19,123 | 17,025 | |||||||||||||||
| Deferred income taxes | 15,993 | 14,635 | 13,706 | 14,510 | 34,176 | |||||||||||||||
| Payable to prior MEA Holdings shareholders | - | 18,002 | 18,002 | 18,002 | 18,002 | |||||||||||||||
| Other liabilities | 47,312 | 47,655 | 42,299 | 46,929 | 59,860 | |||||||||||||||
| Other liabilities - held for sale | 2,204 | 2,311 | 2,322 | 2,322 | 2,310 | |||||||||||||||
| Total liabilities | 504,883 | 519,279 | 502,459 | 573,304 | 617,096 | |||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| Equity: | ||||||||||||||||||||
| Cogdell Spencer Inc. stockholders' equity: | ||||||||||||||||||||
| Preferred stock | - | - | - | - | - | |||||||||||||||
| Common stock | 427 | 425 | 425 | 195 | 177 | |||||||||||||||
| Additional paid-in capital | 370,593 | 369,539 | 369,483 | 292,971 | 275,380 | |||||||||||||||
| Accumulated other comprehensive loss | (1,861 | ) | (3,160 | ) | (2,221 | ) | (5,806 | ) | (5,106 | ) | ||||||||||
| Accumulated deficit | (164,321 | ) | (161,604 | ) | (158,598 | ) | (152,042 | ) | (77,438 | ) | ||||||||||
| Total Cogdell Spencer Inc. stockholders' equity | 204,838 | 205,200 | 209,089 | 135,318 | 193,013 | |||||||||||||||
| Noncontrolling interests: | ||||||||||||||||||||
| Real estate partnerships | 5,220 | 4,857 | 5,442 | 4,658 | 4,657 | |||||||||||||||
| Operating partnership | 37,722 | 33,167 | 33,978 | 35,035 | 85,324 | |||||||||||||||
| Total noncontrolling interests | 42,942 | 38,024 | 39,420 | 39,693 | 89,981 | |||||||||||||||
| Total equity | 247,780 | 243,224 | 248,509 | 175,011 | 282,994 | |||||||||||||||
| Total liabilities and equity | $ | 752,663 | $ | 762,503 | $ | 750,968 | $ | 748,315 | $ | 900,090 | ||||||||||
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| Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Rental revenue | $ | 20,375 | $ | 19,960 | $ | 19,574 | $ | 19,576 | $ | 20,089 | ||||||||||||||
| Design-Build contract revenue and other sales | 30,016 | 30,298 | 36,712 | 46,390 | 78,726 | |||||||||||||||||||
| Property management and other fees | 807 | 816 | 863 | 850 | 935 | |||||||||||||||||||
| Development management and other income | 98 | 239 | 227 | 2,799 | 134 | |||||||||||||||||||
| Total revenues | 51,296 | 51,313 | 57,376 | 69,615 | 99,884 | |||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Property operating and management | 8,021 | 8,103 | 7,820 | 7,865 | 7,920 | |||||||||||||||||||
| Design-Build contracts and development management | 21,388 | 21,166 | 31,242 | 40,165 | 67,112 | |||||||||||||||||||
| Selling, general, and administrative | 11,067 | 7,876 | 6,675 | 6,667 | 9,819 | |||||||||||||||||||
| Depreciation and amortization | 7,470 | 8,013 | 8,944 | 10,076 | 11,706 | |||||||||||||||||||
| Impairment charges | - | - | - | 120,920 | - | |||||||||||||||||||
| Total expenses | 47,946 | 45,158 | 54,681 | 185,693 | 96,557 | |||||||||||||||||||
| Income (loss) from operations before other income (expense) | 3,350 | 6,155 | 2,695 | (116,078 | ) | 3,327 | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||
| Interest and other income | 164 | 161 | 139 | 155 | 239 | |||||||||||||||||||
| Gain on settlement from MEA Holdings, Inc. transaction | 4,905 | - | - | - | - | |||||||||||||||||||
| Interest expense | (5,123 | ) | (5,037 | ) | (5,560 | ) | (5,990 | ) | (6,428 | ) | ||||||||||||||
| Debt extinguishment and interest rate derivative expense | (10 | ) | (10 | ) | (2,490 | ) | - | - | ||||||||||||||||
| Equity in earnings of unconsolidated partnerships | 10 | (4 | ) | 2 | 6 | 4 | ||||||||||||||||||
| Total other income (expense) | (54 | ) | (4,890 | ) | (7,909 | ) | (5,829 | ) | (6,185 | ) | ||||||||||||||
| Income (loss) from operations before income | ||||||||||||||||||||||||
| tax (expense) benefit | 3,296 | 1,265 | (5,214 | ) | (121,907 | ) | (2,858 | ) | ||||||||||||||||
| Income tax (expense) benefit | 60 | 231 | 2,208 | 19,626 | 1,387 | |||||||||||||||||||
| Net income (loss) | 3,356 | 1,496 | (3,006 | ) | (102,281 | ) | (1,471 | ) | ||||||||||||||||
| Discontinued operations: | ||||||||||||||||||||||||
| Loss from discontinued operations | (41 | ) | (40 | ) | (44 | ) | (43 | ) | (34 | ) | ||||||||||||||
| Impairment of real estate property | (1,359 | ) | - | - | - | - | ||||||||||||||||||
| Total discontinued operations | (1,400 | ) | (40 | ) | (44 | ) | (43 | ) | (34 | ) | ||||||||||||||
| Net income (loss) | 1,956 | 1,456 | (3,050 | ) | (102,324 | ) | (1,505 | ) | ||||||||||||||||
| Net loss (income) attributable to the noncontrolling | ||||||||||||||||||||||||
| interest in: | ||||||||||||||||||||||||
| Real estate partnerships | (131 | ) | (17 | ) | (48 | ) | (92 | ) | (105 | ) | ||||||||||||||
| Operating partnership | (269 | ) | (191 | ) | 783 | 32,198 | 568 | |||||||||||||||||
| Net income (loss) attributable to Cogdell Spencer Inc. | $ | 1,556 | $ | 1,248 | $ | (2,315 | ) | $ | (70,218 | ) | $ | (1,042 | ) | |||||||||||
| Per share data - basic and diluted: | ||||||||||||||||||||||||
| Income from continuing operations attributable to | ||||||||||||||||||||||||
| Cogdell Spencer Inc. | $ | 0.06 | $ | 0.03 | $ | (0.09 | ) | $ | (3.90 | ) | $ | (0.06 | ) | |||||||||||
| Loss from discontinued operations attributable to | ||||||||||||||||||||||||
| Cogdell Spencer Inc. | (0.02 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
| Net income (loss) per share sttributable to Cogdell Spencer Inc. | $ | 0.04 | $ | 0.03 | $ | (0.09 | ) | $ | (3.90 | ) | $ | (0.06 | ) | |||||||||||
| Weighted average common shares - basic and diluted | 42,615 | 42,539 | 27,084 | 17,995 | 17,557 | |||||||||||||||||||
| Net income (loss) attributable to Cogdell Spencer Inc.: | ||||||||||||||||||||||||
| Income from continuing operations, net of tax | $ | 2,956 | $ | 1,288 | $ | (2,271 | ) | $ | (70,175 | ) | $ | (1,008 | ) | |||||||||||
| Discontinued operations, net of tax | (1,400 | ) | (40 | ) | (44 | ) | (43 | ) | (34 | ) | ||||||||||||||
| Net income (loss) | $ | 1,556 | $ | 1,248 | $ | (2,315 | ) | $ | (70,218 | ) | $ | (1,042 | ) | |||||||||||
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| Business Segment Reporting | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Three months ended December 31, 2009: | Property Operations | Design-Build and Development | Intersegment Eliminations | Unallocated and Other | Total | |||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Rental revenue | $ | 20,398 | $ | - | $ | (23 | ) | $ | - | $ | 20,375 | |||||||||||||||||||||
| Design-Build contract revenue and other sales | - | 42,310 | (12,294 | ) | - | 30,016 | ||||||||||||||||||||||||||
| Property management and other fees | 807 | - | - | - | 807 | |||||||||||||||||||||||||||
| Development management and other income | - | 959 | (861 | ) | - | 98 | ||||||||||||||||||||||||||
| Total revenues | 21,205 | 43,269 | (13,178 | ) | - | 51,296 | ||||||||||||||||||||||||||
| Certain operating expenses: | ||||||||||||||||||||||||||||||||
| Property operating and management | 8,021 | - | - | - | 8,021 | |||||||||||||||||||||||||||
| Design-Build contracts and development management | - | 30,069 | (8,681 | ) | - | 21,388 | ||||||||||||||||||||||||||
| Selling, general, and administrative | - | 5,783 | (23 | ) | - | 5,760 | ||||||||||||||||||||||||||
| Total certain operating expenses | 8,021 | 35,852 | (8,704 | ) | - | 35,169 | ||||||||||||||||||||||||||
| 13,184 | 7,417 | (4,474 | ) | - | 16,127 | |||||||||||||||||||||||||||
| Interest and other income | 137 | 20 | - | 7 | 164 | |||||||||||||||||||||||||||
| Gain on settlement from MEA Holdings Inc. transaction | - | - | - | 4,905 | 4,905 | |||||||||||||||||||||||||||
| Corporate general and administrative expenses | - | - | - | (5,307 | ) | (5,307 | ) | |||||||||||||||||||||||||
| Interest expense | - | - | - | (5,123 | ) | (5,123 | ) | |||||||||||||||||||||||||
| Debt extinguishment and interest rate derivative expense | - | - | - | (10 | ) | (10 | ) | |||||||||||||||||||||||||
| Benefit from income taxes applicable to funds | - | |||||||||||||||||||||||||||||||
| from operations modified | - | - | - | 41 | 41 | |||||||||||||||||||||||||||
| Non-real estate related depreciation and amortization | - | (199 | ) | - | (59 | ) | (258 | ) | ||||||||||||||||||||||||
| Earnings from unconsolidated real estate partnerships, | ||||||||||||||||||||||||||||||||
| before real estate related depreciation and amortization | 13 | - | - | - | 13 | |||||||||||||||||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||||||||||||||
| real estate related depreciation and amortization | (374 | ) | - | - | - | (374 | ) | |||||||||||||||||||||||||
| Discontinued operations and impairment from real estate, | - | |||||||||||||||||||||||||||||||
| before real estate related depreciation and amortization | (1,332 | ) | - | - | (34 | ) | (1,366 | ) | ||||||||||||||||||||||||
| Funds from operations modified (FFOM) | 11,628 | 7,238 | (4,474 | ) | (5,580 | ) | 8,812 | |||||||||||||||||||||||||
| Amortization of intangibles related to purchase | ||||||||||||||||||||||||||||||||
| accounting, net of income tax benefit | (42 | ) | (7 | ) | - | 19 | (30 | ) | ||||||||||||||||||||||||
| Funds from operations (FFO) | 11,586 | 7,231 | (4,474 | ) | (5,561 | ) | 8,782 | |||||||||||||||||||||||||
| Real estate related depreciation and amortization | (7,200 | ) | - | - | - | (7,200 | ) | |||||||||||||||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||||||||||||||
| real estate related depreciation and amortization | 374 | - | - | - | 374 | |||||||||||||||||||||||||||
| Net income (loss) | 4,760 | 7,231 | (4,474 | ) | (5,561 | ) | 1,956 | |||||||||||||||||||||||||
| Net (income) attributable to the noncontrolling interest in: | ||||||||||||||||||||||||||||||||
| Real estate partnerships | (131 | ) | - | - | - | (131 | ) | |||||||||||||||||||||||||
| Operating partnership | - | - | - | (269 | ) | (269 | ) | |||||||||||||||||||||||||
| Net income (loss) attributable to Cogdell Spencer Inc. | $ | 4,629 | $ | 7,231 | $ | (4,474 | ) | $ | (5,830 | ) | $ | 1,556 | ||||||||||||||||||||
7
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 | ||||||||||||||||||||||||||||||||||||
| Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 1,956 | $ | 1,456 | $ | (3,050 | ) | $ | (102,324 | ) | $ | (1,505 | ) | |||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||
| Real estate related depreciation and amortization: | ||||||||||||||||||||||||||||||||||||
| Wholly-owned and consolidated properties | 7,197 | 7,222 | 7,344 | 7,340 | 7,304 | |||||||||||||||||||||||||||||||
| Unconsolidated real estate partnerships | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||
| Noncontrolling interests in real estate partnerships, before | ||||||||||||||||||||||||||||||||||||
| real estate related depreciation and amortization | (374 | ) | (206 | ) | (224 | ) | (245 | ) | (111 | ) | ||||||||||||||||||||||||||
Funds from Operations (FFO) (1) | 8,782 | 8,475 | 4,073 | (95,226 | ) | 5,691 | ||||||||||||||||||||||||||||||
| Amortization of intangibles related to purchase | ||||||||||||||||||||||||||||||||||||
| accounting, net of tax benefit | 30 | 353 | 842 | 1,540 | 2,390 | |||||||||||||||||||||||||||||||
Funds from Operations Modified (FFOM) (1) | 8,812 | 8,828 | 4,915 | (93,686 | ) | 8,081 | ||||||||||||||||||||||||||||||
| Non-recurring events: | ||||||||||||||||||||||||||||||||||||
| Gain on settlement from MEA Holdings, Inc. transaction | (4,905 | ) | - | - | - | - | ||||||||||||||||||||||||||||||
| Impairment of real estate property held for sale | 1,359 | - | - | - | - | |||||||||||||||||||||||||||||||
| Strategic planning professional fees | 2,641 | - | - | - | - | |||||||||||||||||||||||||||||||
| Intangible asset impairment charges, net of tax benefit | - | - | - | 101,746 | - | |||||||||||||||||||||||||||||||
| Debt extinguishment and interest rate derivative expense, | ||||||||||||||||||||||||||||||||||||
| net of tax benefit | - | - | 1,520 | - | - | |||||||||||||||||||||||||||||||
| Restructuring and severance charges, net of tax benefit | - | - | - | - | 912 | |||||||||||||||||||||||||||||||
| Impact of non-recurring events | (905 | ) | - | 1,520 | 101,746 | 912 | ||||||||||||||||||||||||||||||
| FFOM, excluding non-recurring events | $ | 7,907 | $ | 8,828 | $ | 6,435 | $ | 8,060 | $ | 8,993 | ||||||||||||||||||||||||||
| FFO per share and unit - basic and diluted | $ | 0.17 | $ | 0.17 | $ | 0.12 | $ | (3.54 | ) | $ | 0.21 | |||||||||||||||||||||||||
| FFOM per share and unit - basic and diluted | $ | 0.17 | $ | 0.18 | $ | 0.14 | $ | (3.49 | ) | $ | 0.30 | |||||||||||||||||||||||||
| FFOM per share and unit - basic and diluted, excluding | ||||||||||||||||||||||||||||||||||||
| non-recurring events | $ | 0.16 | $ | 0.18 | $ | 0.19 | $ | 0.30 | $ | 0.33 | ||||||||||||||||||||||||||
| Weighted average shares and units outstanding | 50,386 | 50,070 | 34,653 | 26,869 | 26,890 | |||||||||||||||||||||||||||||||
| (1) FFO is a supplemental non-GAAP financial measure used by the real estate industry to measure the operating performance of real estate companies. FFOM adds back to traditionally defined FFO non-cash amortization of non-real estate related intangible assets associated with purchase accounting. The Company presents FFO and FFOM because it considers them important supplemental measures of operational performance. The Company believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing a perspective not immediately apparent from net income. The Company computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and FFOM do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO and FFOM should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of the Company’s performance, nor are they indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions. | ||||||||||
| (2) Real estate depreciation and amortization consists of depreciation and amortization from wholly-owned real estate properties and the Company’s share of real estate depreciation and amortization from consolidated and unconsolidated real estate partnerships. | ||||||||||
8
| Coverage Ratios | ||||||||||||||||||||
| (in thousands, except ratio amounts) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 | Dec. 31, 2008 | ||||||||||||||||
| Interest coverage ratio: | ||||||||||||||||||||
| EBITDA | $ | 15,926 | $ | 14,285 | $ | 11,736 | $ | 15,036 | $ | 15,316 | ||||||||||
| Cash paid for interest | 5,336 | 5,319 | 5,182 | 5,503 | 6,006 | |||||||||||||||
| Interest coverage ratio | 2.98 | 2.70 | 2.28 | 2.75 | 2.55 | |||||||||||||||
| Fixed charge coverage ratio: | ||||||||||||||||||||
| EBITDA | $ | 10,912 | $ | 14,285 | $ | 11,736 | $ | 15,036 | $ | 15,316 | ||||||||||
| Fixed charges: | ||||||||||||||||||||
| Cash paid for interest | 5,336 | 5,319 | 5,182 | 5,503 | 6,006 | |||||||||||||||
| Principal payments | 928 | 943 | 997 | 996 | 853 | |||||||||||||||
| Total fixed charges | $ | 6,264 | $ | 6,262 | $ | 6,179 | $ | 6,499 | $ | 6,859 | ||||||||||
| Fixed charge coverage ratio | 2.54 | 2.29 | 1.91 | 2.32 | 2.23 | |||||||||||||||
Reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") (1) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Reconciliation of net income (loss) to EBITDA: | ||||||||||||||||
| Net income (loss) | $ | 1,956 | $ | (1,505 | ) | $ | (102,207 | ) | $ | (7,857 | ) | |||||
| Interest expense | �� | 5,123 | 6,428 | 21,711 | 25,017 | |||||||||||
| Income tax expense (benefit) | (60 | ) | (1,387 | ) | (21,965 | ) | (1,244 | ) | ||||||||
| Depreciation and amortization | 7,470 | 11,706 | 34,502 | 44,879 | ||||||||||||
| Impairment charges | - | - | 120,920 | - | ||||||||||||
| Discontinued operations impairment charge, interest expense, | ||||||||||||||||
| and depreciation and amortization | 1,427 | 74 | 1,634 | (212 | ) | |||||||||||
| Debt extinguishment and interest rate derivative expense | 10 | - | 2,511 | - | ||||||||||||
| EBITDA | $ | 15,926 | $ | 15,316 | $ | 57,106 | $ | 61,007 | ||||||||
| (1) The Company believes that earnings before interest, income taxes, depreciation and amortization, or EBITDA, is a useful supplemental performance measure because it allows investors to view the Company's performance without the impact of noncash depreciation and amortization or the cost of debt or minority interests. In addition, the Company believes that EBITDA is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the Company's business, its utility as a measure of the Company's performance is limited. Accordingly, EBITDA should be considered only as a supplement to net loss (computed in accordance with GAAP) as a measure of financial performance. Other equity REITs may calculate EBITDA differently; accordingly, the Company's EBITDA may not be comparable to such other equity REITs’ EBITDA. |
9
| Consolidated Debt Analysis as of December 31, 2009 | |||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
Stated Interest Rate (%) | Interest Rate (%) | Principal Balance | Maturity Date | Amortization (years) | |||||||||||||||||||||
| Secured mortgage loans - wholly-owned properties: | |||||||||||||||||||||||||
| Mulberry Medical Park | 6.49 | 6.49 | $ | 923 | 4/15/2010 | 20 | |||||||||||||||||||
| Rocky Mount Medical Park | Prime | 4.25 | (1) | 6,794 | 12/15/2010 | 25 | |||||||||||||||||||
| St. Francis CMOB LLC, St. Francis Professional Medical Center | LIBOR + 1.85 | 5.17 | (2) | 6,870 | 6/15/2011 | 39 | |||||||||||||||||||
| St. Francis Medical Plaza (Greenville), St. Francis Women's | LIBOR + 1.85 | 5.17 | (2) | 7,380 | 6/15/2011 | 39 | |||||||||||||||||||
| Beaufort Medical Plaza | LIBOR + 1.85 | 5.65 | (2) | 4,763 | 8/18/2011 | 25 | |||||||||||||||||||
| Methodist Professional Center I | LIBOR + 1.30 | 6.25 | 25,466 | 10/31/2011 | 30 | ||||||||||||||||||||
| River Hills Medical Plaza | LIBOR + 3.75 | 5.53 | (2) | 3,795 | 12/22/2011 | 22 | |||||||||||||||||||
| East Jefferson Medical Plaza | LIBOR + 3.75 | 5.55 | (2) | 11,600 | 1/31/2012 | Interest only | |||||||||||||||||||
| Barclay Downs | 6.50 | 6.50 | 4,378 | 11/15/2012 | 25 | ||||||||||||||||||||
| Providence Medical Office Building I, II and III | 6.12 | 6.12 | 8,327 | 1/12/2013 | 25 | ||||||||||||||||||||
| One Medical Park | 5.93 | 5.93 | 5,095 | 11/1/2013 | 20 | ||||||||||||||||||||
| Three Medical Park | 5.55 | 5.55 | 7,673 | 3/25/2014 | 25 | ||||||||||||||||||||
| Medical Arts Center of Orangeburg | LIBOR + 3.25 | 6.00 | (3) | 2,365 | 5/5/2014 | 20 | |||||||||||||||||||
| Lancaster Rehabilitation Hospital (construction loan) | LIBOR + 3.75 | 3.98 | 26 | 6/26/2014 | 25 | ||||||||||||||||||||
| Lancaster Rehabilitation Hospital | 6.71 | 6.71 | 9,621 | 6/26/2014 | 25 | ||||||||||||||||||||
| Rowan Outpatient Surgery Center | 6.00 | 6.00 | 3,237 | 7/6/2014 | 25 | ||||||||||||||||||||
| East Jefferson MOB | 6.01 | 6.01 | 8,968 | 8/10/2014 | 25 | ||||||||||||||||||||
| Rocky Mount Kidney Center | 6.75 | 6.75 | 1,000 | 8/21/2014 | 15 | ||||||||||||||||||||
| Randolph Medical Park, Lincoln/Lakemont Family Practice, | |||||||||||||||||||||||||
| and Northcross Family Physicians | 7.00 | 7.00 | 7,481 | 10/15/2014 | 20 | ||||||||||||||||||||
| MRMC MOB I (formally known as Hanover MOB) | 7.33 | 7.33 | 5,993 | 11/1/2014 | 25 | ||||||||||||||||||||
| HealthPartners Medical Office Building (construction loan) | LIBOR + 3.25 | 6.00 | (4) | 4,339 | 11/1/2014 | 22.5 | (6) | ||||||||||||||||||
| Copperfield Medical Mall, Harrisburg Medical Mall, Midland Medical | |||||||||||||||||||||||||
| Park and Weddington & Internal/Pediatric Medicine | LIBOR + 1.50 | 3.25 | (5) | 8,268 | 12/15/2014 | 25 | |||||||||||||||||||
| Peerless Crossing Medical Center | 6.06 | 6.06 | 7,354 | 9/1/2016 | 30 | ||||||||||||||||||||
| Central NY Medical Center | 6.22 | 6.22 | 24,500 | 5/15/2017 | Interest only | ||||||||||||||||||||
| Palmetto Health Parkridge | 5.68 | 5.68 | 13,500 | 6/1/2017 | Interest only | (7) | |||||||||||||||||||
| Summit Professional Plaza I and II | 6.18 | 6.18 | 15,925 | 9/1/2017 | Interest only | ||||||||||||||||||||
| Health Park Medical Office Building | 7.50 | 7.50 | 7,000 | 1/1/2019 | 25 | ||||||||||||||||||||
| Medical Center Physicians Tower (construction loan) | LIBOR + 2.50 | 6.19 | (2) | 8,582 | 3/1/2019 | 25 | |||||||||||||||||||
| University Physicians MOB & Outpatient Clinic (construction loan) | LIBOR + 2.25 | 3.70 | (2) | 4,922 | 4/20/2019 | 25 | |||||||||||||||||||
| Roper Medical Office Building | 7.10 | 7.10 | 9,430 | 6/1/2019 | 25 | ||||||||||||||||||||
| Total / weighted average mortgages - wholly-owned properties | 5.96 | $ | 235,575 | ||||||||||||||||||||||
10
| Total / weighted average mortgages - wholly-owned properties | 5.96 | $ | 235,575 | |||||||||||||||||||||
| 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 | 1.54 | 12,262 | 5/1/2010 | 30 | |||||||||||||||||||
| Alamance Regional Mebane Outpatient Center | LIBOR + 4.00 | 4.23 | 1,470 | 5/1/2010 | Interest only | |||||||||||||||||||
| English Road Medical Center (formally known as Rocky Mount MOB) | 6.03 | 6.03 | 5,265 | 3/1/2012 | 25 | |||||||||||||||||||
| Lancaster ASC MOB | LIBOR + 1.20 | 5.23 | (2) | 10,445 | 3/2/2015 | 25 | ||||||||||||||||||
| Woodlands Center for Specialized Medicine (construction loan) | LIBOR + 1.50 | 1.73 | (8) | 15,786 | 9/26/2018 | 25 | (9) | |||||||||||||||||
| Total / weighted average consolidated real estate partnerships | 3.07 | 45,228 | ||||||||||||||||||||||
| Total / weighted average debt | 410,803 | (10) | ||||||||||||||||||||||
| Unamortized premium | 89 | |||||||||||||||||||||||
| Total / weighted average debt | 5.44 | $ | 410,892 | |||||||||||||||||||||
| (1) Maximum interest of 7.25%; minimum interest of 4.25%. | ||||||||||
| (2) Represents the fixed rate for floating rate loans that have been swapped to fixed. | ||||||||||
| (3) Minimum interest of 6.00%. | ||||||||||
| (4) Minimum interest of 6.00%. The Company has entered into a forward starting interest rate swap agreement that effectively fixes the | ||||||||||
| interest rate at 6.80% beginning December 2010, when the construction phase of the loan expires and converts to an amortizing loan. | ||||||||||
| (5) Maximum interest of 8.25%; minimum interest of 3.25%. | ||||||||||
| (6) Interest only during construction period. | ||||||||||
| (7) Interest only through June 2012. Principal and interest payments from July 2012 through June 2017. | ||||||||||
| (8) 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. | ||||||||||
| (9) Interest only through April 2010. Principal and interest payments from May 2010 through October 2018 with a 25 year amortization. | ||||||||||
| (10) Harbison Medical Office Building (formally known as Baptist Northwest Medical Park) mortgage is excluded from the above table as the | ||||||||||
| wholly-owned real estate property was reclassified to discontinued operations during December 2009 and is actively being marketed for sale as of | ||||||||||
| December 31, 2009. This property's mortgage matures February 1, 2011, and has an outstanding balance of $2.1 million as of December 31 2009. | ||||||||||
11
| Consolidated Debt Analysis as of December 31, 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 | |||||||||||||||||
| 2010 | $ | 4,393 | $ | 20,908 | $ | 25,301 | 9 | % | 2.8 | % | ||||||||||
| 2011 | 4,544 | 47,117 | 51,661 | 18 | % | 5.8 | % | |||||||||||||
| 2012 | 4,441 | 20,710 | 25,151 | 9 | % | 5.9 | % | |||||||||||||
| 2013 | 4,415 | 11,577 | 15,992 | 6 | % | 6.1 | % | |||||||||||||
| 2014 | 3,598 | 50,633 | 54,231 | 19 | % | 6.0 | % | |||||||||||||
| Thereafter | 8,145 | 100,322 | 108,467 | 39 | % | 5.8 | % | |||||||||||||
| Total mortgages | $ | 29,536 | $ | 251,267 | $ | 280,803 | 100 | % | 6.0 | % | ||||||||||
| Secured revolving credit facility (March 2011 maturity) | - | 80,000 | 80,000 | |||||||||||||||||
| Term loan (March 2011 maturity) | - | 50,000 | 50,000 | |||||||||||||||||
| Total | $ | 29,536 | $ | 381,267 | $ | 410,803 | (1) | |||||||||||||
| Debt profile | Weighted Average | |||||||||||||
| Balance | Percent of Total | Interest Rate (2) | Maturity (Years) | |||||||||||
| Fixed rate mortgages - wholly-owned properties | $ | 195,047 | 47 | % | 5.8 | % | 5.3 | |||||||
| Variable rate mortgages - wholly-owned properties | 40,528 | 10 | % | 4.6 | % | 1.3 | ||||||||
| Secured revolving credit facility | 80,000 | 19 | % | 4.1 | % | 1.2 | ||||||||
| Term loan | 50,000 | 12 | % | 7.3 | % | 1.2 | ||||||||
| Mortgages - consolidated real estate partnerships | 45,228 | 11 | % | 3.1 | % | 4.6 | ||||||||
| Total | $ | 410,803 | (1) | 100 | % | 5.4 | % | 3.7 | ||||||
| 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 4Q 2009 | $ | 381 | ||||||||||||
Covenant summary
| Required | Current Quarter | In Compliance | |||
Secured revolving credit facility (3): | |||||
| Maximum total leverage ratio | < 70% | 49% | Yes | ||
| Maximum real estate leverage ratio | < 70% | 55% | Yes | ||
| Minimum fixed charge coverage ratio | > 1.50x | 2.17x | Yes | ||
| Minimum required tangible net worth | > $ 141,983 | $ 200,905 | Yes | ||
| Maximum total debt to real estate value ratio | < 90% | 62% | Yes | ||
Term loan (3): | |||||
| Maximum Erdman senior indebtedness to adjusted EBITDA | < 3.50x | 2.37x | Yes | ||
| Maximum Erdman total indebtedness to adjusted EBITDA | < 5.50x | 2.37x | Yes | ||
| Minimum adjusted EBITDA to fixed charges | > 2.00x | 3.69x | Yes | ||
| ___________________ | |||||
| (1) Future debt obligations related to the Harbison Medical Office Building mortgage are excluded from the above table as the wholly-owned real estate property | |||||||
| was reclassified to discontinued operations during December 2009 and is actively being marketed for sale as of December 31, 2009. The mortgage note requires | |||||||
| monthly principal and interest payments of approximately $0.02 million until February 1, 2011, at which time a balloon payment of approximately $2.1 million is due. | |||||||
| (2) Includes the fixed rate swapped interest rates. | |||||||
| (3) For covenant definitions and a listing of non-financial debt covenants, please refer to the Company's filings with the Securities and Exchange Commission. | |||||||
12
| Property Listing as of December 31, 2009 | |||||||||||||||||||||||||
| Location | Ownership | Net Rentable Square Feet | Occupancy Rate | Annualized Rent | Annualized Rent Per Leased Square Foot | ||||||||||||||||||||
| California | |||||||||||||||||||||||||
| Verdugo Hills Professional Bldg I | Glendale | 100.0 | % | 63,887 | 95.2 | % | $ | 1,952,001 | $ | 32.09 | |||||||||||||||
| Verdugo Hills Professional Bldg II | Glendale | 100.0 | % | 42,906 | 99.5 | % | 1,421,506 | 33.29 | |||||||||||||||||
| 106,793 | 96.9 | % | 3,373,507 | 32.59 | |||||||||||||||||||||
| Florida | |||||||||||||||||||||||||
| Woodlands Center for Specialized Medicine | Pensacola | 40.0 | % | 75,985 | 100.0 | % | 2,511,586 | 33.05 | |||||||||||||||||
| Georgia | |||||||||||||||||||||||||
| Augusta POB I | Augusta | 100.0 | % | 99,494 | 81.9 | % | 1,136,792 | 13.95 | |||||||||||||||||
| 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 | 82.5 | % | 897,199 | 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 | 87.7 | % | 7,776,359 | 20.88 | |||||||||||||||||||||
| Indiana | |||||||||||||||||||||||||
Methodist Professional Center I (1) | Indianapolis | 100.0 | % | 150,243 | 96.4 | % | 3,512,790 | 24.25 | |||||||||||||||||
| Methodist Professional Center II (sub-lease) | Indianapolis | 100.0 | % | 24,080 | 100.0 | % | 605,739 | 25.16 | |||||||||||||||||
| 174,323 | 96.9 | % | 4,118,529 | 24.38 | |||||||||||||||||||||
| Kentucky | |||||||||||||||||||||||||
| OLBH Same Day Surgery Center and MOB | Ashland | 100.0 | % | 46,907 | 95.9 | % | 1,156,321 | 25.70 | |||||||||||||||||
| OLBH Parking Garage | 868,554 | ||||||||||||||||||||||||
| 46,907 | 95.9 | % | 2,024,875 | 25.70 | (2) | ||||||||||||||||||||
| Louisiana | |||||||||||||||||||||||||
| East Jefferson MOB | 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 MRI | Metairie | 100.0 | % | 10,809 | 100.0 | % | 968,693 | 89.62 | |||||||||||||||||
| 253,914 | 100.0 | % | 6,293,937 | 24.79 | |||||||||||||||||||||
| New York | |||||||||||||||||||||||||
Central NY Medical Center (3) | Syracuse | 100.0 | % | 111,634 | 96.7 | % | 3,003,222 | 27.82 | |||||||||||||||||
| North Carolina | |||||||||||||||||||||||||
| Alamance Regional Mebane Outpatient Ctr | 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 Bldgs C, D, E and Birkdale Wellness | Huntersville | 100.0 | % | 64,669 | 100.0 | % | 1,424,210 | 22.02 | |||||||||||||||||
| Birkdale II | Huntersville | 100.0 | % | 8,269 | 100.0 | % | 219,787 | 26.58 | |||||||||||||||||
| Copperfield Medical Mall | Concord | 100.0 | % | 26,000 | 100.0 | % | 619,286 | 23.82 | |||||||||||||||||
| East Rocky Mount Kidney Center | Rocky Mount | 100.0 | % | 8,043 | 100.0 | % | 158,849 | 19.75 | |||||||||||||||||
| English Road Medical Center | Rocky Mount | 34.5 | % | 35,393 | 95.7 | % | 923,616 | 27.28 | |||||||||||||||||
| (formerly known as Rocky Mount MOB) | |||||||||||||||||||||||||
| Gaston Professional & Ambulatory Surgery Centers | Gastonia | 100.0 | % | 114,956 | 100.0 | % | 2,765,656 | 24.06 | |||||||||||||||||
| Gaston Parking | 606,141 | ||||||||||||||||||||||||
| Gateway Medical Office Building | Concord | 100.0 | % | 61,789 | 87.9 | % | 1,302,208 | 23.99 | |||||||||||||||||
| (formerly known as Copperfield MOB) | |||||||||||||||||||||||||
| Harrisburg Family Physicians | 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 | Lincolnton | 100.0 | % | 16,500 | 100.0 | % | 390,119 | 23.64 | |||||||||||||||||
| Mallard Crossing Medical Park | Charlotte | 100.0 | % | 52,540 | 62.9 | % | 843,352 | 25.51 | |||||||||||||||||
| Medical Arts Building | Concord | 100.0 | % | 84,972 | 98.2 | % | 1,877,862 | 22.51 | |||||||||||||||||
| (formerly known as Cabarrus POB) | |||||||||||||||||||||||||
| Midland Medical Park | Midland | 100.0 | % | 14,610 | 100.0 | % | 437,341 | 29.93 | |||||||||||||||||
| Mulberry Medical Park | Lenoir | 100.0 | % | 24,992 | 87.0 | % | 459,177 | 21.11 | |||||||||||||||||
| Northcross Family Physicians | 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 | |||||||||||||||||
13
| Property Listing as of December 31, 2009 | |||||||||||||||||||||||||
| Location | Ownership | Net Rentable Square Feet | Occupancy Rate | Annualized Rent | Annualized Rent Per Leased Square Foot | ||||||||||||||||||||
| North Carolina (continued) | |||||||||||||||||||||||||
| Rocky Mount Medical Park | Rocky Mount | 100.0 | % | 96,993 | 100.0 | % | 2,036,941 | 21.00 | |||||||||||||||||
| 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 | % | 19,807,773 | 24.14 | (2) | ||||||||||||||||||||
| Pennsylvania | |||||||||||||||||||||||||
| Lancaster Rehabilitation Hospital | Lancaster | 100.0 | % | 52,878 | 100.0 | % | 1,258,155 | 23.79 | |||||||||||||||||
| Lancaster ASC MOB | Lancaster | 80.9 | % | 64,214 | 100.0 | % | 1,984,201 | 30.90 | |||||||||||||||||
| 117,092 | 100.0 | % | 3,242,356 | 27.69 | |||||||||||||||||||||
| South Carolina | |||||||||||||||||||||||||
| 200 Andrews | Greenville | 100.0 | % | 25,902 | 100.0 | % | 621,138 | 23.98 | |||||||||||||||||
| Beaufort Medical Plaza | Beaufort | 100.0 | % | 59,340 | 100.0 | % | 1,288,908 | 21.72 | |||||||||||||||||
| Carolina Forest Medical Plaza | Myrtle Beach | 100.0 | % | 38,902 | 43.5 | % | 525,068 | 31.05 | |||||||||||||||||
| Mary Black Westside Medical Office Bldg | Spartanburg | 100.0 | % | 37,455 | 100.0 | % | 817,044 | 21.81 | |||||||||||||||||
| Medical Arts Center of Orangeburg | Orangeburg | 100.0 | % | 49,324 | 80.4 | % | 776,318 | 19.58 | |||||||||||||||||
| One Medical Park | Columbia | 100.0 | % | 69,840 | 80.8 | % | 1,369,857 | 24.27 | |||||||||||||||||
| Palmetto Health Parkridge | Columbia | 100.0 | % | 89,451 | 94.6 | % | 2,054,587 | 24.28 | |||||||||||||||||
| Providence MOB I | Columbia | 100.0 | % | 48,500 | 87.2 | % | 928,504 | 21.95 | |||||||||||||||||
| Providence MOB II | Columbia | 100.0 | % | 23,280 | 100.0 | % | 481,609 | 20.69 | |||||||||||||||||
| Providence MOB III | Columbia | 100.0 | % | 54,417 | 55.5 | % | 650,109 | 21.54 | |||||||||||||||||
| River Hills Medical Plaza | Little River | 100.0 | % | 27,566 | 79.5 | % | 701,030 | 31.99 | |||||||||||||||||
| Roper Medical Office Building | Charleston | 100.0 | % | 122,785 | 99.3 | % | 2,547,834 | 20.91 | |||||||||||||||||
| Roper Mt. Pleasant Medical Office (Long Point) | Mt. Pleasant | 100.0 | % | 38,735 | 77.4 | % | 787,813 | 26.29 | |||||||||||||||||
| (formerly known as Mt. Pleasant MOB) | |||||||||||||||||||||||||
| St. Francis CMOB | Greenville | 100.0 | % | 45,140 | 100.0 | % | 1,185,828 | 26.27 | |||||||||||||||||
| St. Francis Medical Plaza (Charleston) | Charleston | 100.0 | % | 28,734 | 100.0 | % | 819,105 | 28.51 | |||||||||||||||||
| (formerly known as West Medical I) | |||||||||||||||||||||||||
| St. Francis Medical Plaza (Greenville) | Greenville | 100.0 | % | 62,724 | 50.7 | % | 634,553 | 19.96 | |||||||||||||||||
| St. Francis Professional Medical Center | Greenville | 100.0 | % | 49,767 | 100.0 | % | 1,111,631 | 22.34 | |||||||||||||||||
| St. Francis Women's | Greenville | 100.0 | % | 57,590 | 76.5 | % | 937,594 | 21.29 | |||||||||||||||||
| Three Medical Park | Columbia | 100.0 | % | 88,755 | 100.0 | % | 2,147,321 | 24.19 | |||||||||||||||||
| 1,018,207 | 86.2 | % | 20,385,851 | 23.22 | |||||||||||||||||||||
| Tennessee | |||||||||||||||||||||||||
| Health Park Medical Office Building | Chattanooga | 100.0 | % | 52,151 | 100.0 | % | 1,975,483 | 37.88 | |||||||||||||||||
| Peerless Crossing Medical Center | Cleveland | 100.0 | % | 40,506 | 100.0 | % | 1,231,652 | 30.41 | |||||||||||||||||
| 92,657 | 100.0 | % | 3,207,135 | 34.61 | |||||||||||||||||||||
| Virginia | |||||||||||||||||||||||||
| MRMC MOB I | Mechanicsville | 100.0 | % | 56,610 | 100.0 | % | 1,602,012 | 28.30 | |||||||||||||||||
| (formerly known as Hanover MOB I) | |||||||||||||||||||||||||
| St. Mary's MOB North (Floors 6 & 7) | Richmond | 100.0 | % | 30,617 | 90.1 | % | 700,573 | 25.40 | |||||||||||||||||
| 87,227 | 96.5 | % | 2,302,585 | 27.35 | |||||||||||||||||||||
| Total | 3,381,664 | 91.5 | % | $ | 78,047,715 | $ | 24.74 | (2) | |||||||||||||||||
| Discontinued Operations - South Carolina | |||||||||||||||||||||||||
| Harbison Medical Office Building | Columbia | 100.0 | % | 38,703 | 41.3 | % | $ | 354,267 | $ | 22.15 | |||||||||||||||
| (formerly known as Baptist Northwest) | |||||||||||||||||||||||||
| __________________ | |||||||||||||||||||||||||
14
| Property Occupancy Rates | ||||||||||||||||||||
December 31, 2009 | September 30, 2009 | June 30, 2009 | March 31, 2009 | December 31, 2008 | ||||||||||||||||
| California | ||||||||||||||||||||
| Verdugo Professional Bldg I | 95.2 | % | 95.2 | % | 94.5 | % | 94.5 | % | 92.6 | % | ||||||||||
| Verdugo Professional Bldg II | 99.5 | % | 99.5 | % | 97.3 | % | 88.6 | % | 88.6 | % | ||||||||||
| Florida | ||||||||||||||||||||
| Woodlands Center for Specialized Medicine | 100.0 | % | n/a | n/a | n/a | n/a | ||||||||||||||
| Georgia | ||||||||||||||||||||
| Augusta POB I | 81.9 | % | 82.2 | % | 85.3 | % | 84.7 | % | 92.7 | % | ||||||||||
| Augusta POB II | 87.6 | % | 87.6 | % | 87.6 | % | 87.6 | % | 95.1 | % | ||||||||||
| Augusta POB III | 90.0 | % | 90.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Augusta POB IV | 82.5 | % | 88.9 | % | 88.9 | % | 88.9 | % | 88.9 | % | ||||||||||
| 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 | % | 95.6 | % | 95.6 | % | 98.2 | % | 99.0 | % | ||||||||||
| Methodist Professional Center II | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Kentucky | ||||||||||||||||||||
| OLBH Same Day Surgery Center and MOB | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | 95.9 | % | ||||||||||
| Louisiana | ||||||||||||||||||||
| East Jefferson MOB | 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 MRI | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| New York | ||||||||||||||||||||
| Central NY Medical Center | 96.7 | % | 96.7 | % | 96.7 | % | 96.7 | % | 96.7 | % | ||||||||||
| North Carolina | ||||||||||||||||||||
| Alamance Regional Mebane Outpatient Ctr | 71.1 | % | 71.1 | % | 66.9 | % | n/a | n/a | ||||||||||||
| Barclay Downs | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Birkdale Bldgs C, D, E and Birkdale Wellness | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| 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 | % | 100.0 | % | ||||||||||
| (formerly known as Rocky Mount MOB) | ||||||||||||||||||||
| Gaston Professional & Ambulatory Surgery | ||||||||||||||||||||
| Centers | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Gateway Medical Office Building | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | 87.9 | % | ||||||||||
| (formerly known as Copperfield MOB) | ||||||||||||||||||||
| 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 | 62.9 | % | 62.9 | % | 62.9 | % | 62.9 | % | 62.9 | % | ||||||||||
| Medical Arts Building | 98.2 | % | 98.2 | % | 98.2 | % | 98.2 | % | 95.0 | % | ||||||||||
| (formerly known as Cabarrus POB) | ||||||||||||||||||||
| Midland Medical Park | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Mulberry Medical Park | 87.0 | % | 87.0 | % | 87.0 | % | 87.0 | % | 85.4 | % | ||||||||||
| Northcross Family Physicians | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Randolph Medical Park | 71.8 | % | 71.8 | % | 64.8 | % | 67.6 | % | 67.6 | % | ||||||||||
| Rocky Mount Kidney Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 95.7 | % | ||||||||||
15
| Property Occupancy Rates | ||||||||||||||||||||
| North Carolina (continued) | ||||||||||||||||||||
| 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 | % | ||||||||||
| Pennsylvania | ||||||||||||||||||||
| Lancaster Rehabilitation Hospital | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Lancaster ASC MOB | 100.0 | % | 100.0 | % | 93.0 | % | 94.2 | % | 93.1 | % | ||||||||||
| 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 Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Medical Arts Center of Orangeburg | 80.4 | % | 80.1 | % | 82.2 | % | 82.2 | % | 92.9 | % | ||||||||||
| One Medical Park | 80.8 | % | 80.8 | % | 80.3 | % | 80.3 | % | 80.3 | % | ||||||||||
| Palmetto Health Parkridge | 94.6 | % | 94.6 | % | 94.6 | % | 95.5 | % | 95.5 | % | ||||||||||
| Providence MOB I | 87.2 | % | 91.7 | % | 94.7 | % | 94.7 | % | 94.7 | % | ||||||||||
| Providence MOB II | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Providence MOB III | 55.5 | % | 51.4 | % | 51.4 | % | 73.4 | % | 73.4 | % | ||||||||||
| River Hills Medical Plaza | 79.5 | % | 79.5 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Roper Medical Office Building | 99.3 | % | 100.0 | % | 99.0 | % | 99.0 | % | 100.0 | % | ||||||||||
| Roper Mt. Pleasant Medical Office (Long Point) | ||||||||||||||||||||
| (formerly known as Mt. Pleasant MOB) | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | 77.4 | % | ||||||||||
| St. Francis CMOB | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| St. Francis Medical Plaza (Charleston) | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| (formerly known as West Medical I) | ||||||||||||||||||||
| St. Francis Medical Plaza (Greenville) | 50.7 | % | 52.5 | % | 52.5 | % | 52.5 | % | 63.5 | % | ||||||||||
| St. Francis Professional Medical Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| St. Francis Women's | 76.5 | % | 73.4 | % | 73.4 | % | 73.4 | % | 73.4 | % | ||||||||||
| Three Medical Park | 100.0 | % | 93.8 | % | 93.8 | % | 93.8 | % | 93.8 | % | ||||||||||
| Tennessee | ||||||||||||||||||||
| Health Park Medical Office Building | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Peerless Crossing Medical Center | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
| Virginia | ||||||||||||||||||||
| MRMC MOB I | 100.0 | % | 92.7 | % | 84.2 | % | 89.3 | % | 96.6 | % | ||||||||||
| (formerly known as Hanover MOB I) | ||||||||||||||||||||
| St. Mary's MOB North - (Floors 6 & 7) | 90.1 | % | 90.1 | % | 90.1 | % | 90.1 | % | 90.1 | % | ||||||||||
| Discontinued Operations - South Carolina | ||||||||||||||||||||
| Harbison Medical Office Building | 41.3 | % | 41.3 | % | 41.3 | % | 41.3 | % | 41.3 | % | ||||||||||
| (formerly known as Baptist Northwest) | ||||||||||||||||||||
16
| Lease Expirations for Leases In Place at December 31, 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 | - | 286,416 | 8.5 | % | $ | - | - | $ | - | |||||||||||||||||||
| 2010 | 161 | 568,817 | 16.8 | % | 13,128,995 | 16.8 | % | 23.08 | ||||||||||||||||||||
| 2011 | 89 | 301,526 | 8.9 | % | 7,040,600 | 9.0 | % | 23.35 | ||||||||||||||||||||
| 2012 | 142 | 649,241 | 19.2 | % | 17,317,928 | 22.2 | % | 24.40 | ||||||||||||||||||||
| 2013 | 72 | 328,127 | 9.7 | % | 7,226,147 | 9.3 | % | 22.02 | ||||||||||||||||||||
| 2014 | 75 | 350,153 | 10.4 | % | 8,598,482 | 11.0 | % | 24.56 | ||||||||||||||||||||
| 2015 | 31 | 111,968 | 3.3 | % | 2,825,886 | 3.6 | % | 25.24 | ||||||||||||||||||||
| 2016 | 19 | 82,073 | 2.4 | % | 1,740,583 | 2.2 | % | 21.21 | ||||||||||||||||||||
| 2017 | 33 | 218,887 | 6.5 | % | 6,170,823 | 7.9 | % | 28.19 | ||||||||||||||||||||
| 2018 | 16 | 90,383 | 2.7 | % | 2,368,234 | 3.0 | % | 26.20 | ||||||||||||||||||||
| Thereafter | 25 | 394,073 | 11.7 | % | 11,630,037 | 14.9 | % | 29.51 | ||||||||||||||||||||
| Total | 663 | 3,381,664 | 100.0 | % | $ | 78,047,715 | 100.0 | % | $ | 24.74 | (1) | |||||||||||||||||
| __________________ | ||||||||||||||||||||||||||||
(1) Excludes annualized rent of adjacent parking decks to OLBH Same Day Surgery Center and MOB and Gaston Professional Center from calculation. | |||||||||
| Excludes discontinued operations consisting of seven leases expiring between December 31, 2009 and December 31, 2013 with annualized rent | |||||||||
| totaling approximately $0.4 million. | |||||||||
| Ten Largest Tenants by Annualized Rent at December 31, 2009 | ||||||||||
| Tenant | Annualized Rent | Percent of Portfolio | ||||||||
| 1 | Carolinas Healthcare System | $ | 5,876,087 | 7.5 | % | |||||
| 2 | Palmetto Health Alliance | 3,355,655 | 4.3 | % | ||||||
| 3 | Bon Secours St. Francis Hospital | 3,029,813 | 3.9 | % | ||||||
| 4 | Lancaster General Hospital | 2,564,813 | 3.3 | % | ||||||
| 5 | Exodus Medical Group, P.A. | 2,511,586 | 3.2 | % | ||||||
| 6 | Gaston Memorial Hospital | 2,026,734 | 2.6 | % | ||||||
| 7 | Jefferson Parish Hospital District #2 | 1,853,794 | 2.4 | % | ||||||
| 8 | Our Lady of Bellefonte | 1,670,768 | 2.1 | % | ||||||
| 9 | Southeast Georgia Health System | 1,642,077 | 2.1 | % | ||||||
| 10 | University Hospital - Augusta, GA | 1,620,430 | 2.1 | % | ||||||
| $ | 26,151,757 | 33.5 | % | |||||||
17
| Acquisitions and Completed Developments for the period January 1, 2008 through December 31, 2009 | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Property | Location | Type | Date Acquired / In-service | Net Rentable Square Feet | Purchase Price / Construction Cost | ||||||||
| St. Mary's MOB (Floors 6 & 7) | 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 | ||||||||
Woodlands Center for Specialized Medicine (2) | Pensacola, FL | Development | 4Q 2009 | 75,985 | 24,732 | ||||||||
| Total 2008 and 2009 | 336,894 | $ | 73,934 | ||||||||||
| (1) Owned by Mebane Medical Investors, LLC, which is a consolidated real estate partnership. The Company had a 35.1% ownership interest at December 31, 2009. | |||||||||||
| Alamance Regional Mebane Outpatient Center consists of a MOB and a cancer center, which became operational during 2Q 2009 and 3Q 2009, respectively. | |||||||||||
| (2) Owned by Genesis Property Holding, LLC, which is a consolidated real estate partnership. The Company had a 40.0% ownership interest at December 31, 2009. | |||||||||||
| Construction in Progress as of December 31, 2009 | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| Property | Location | Estimated Completion Date | Net Rentable Square Feet | Investment to Date | Estimated Total Investment | Percentage Leased | ||||||||||||
| Medical Center Physicians Tower | Jackson, TN | 1Q 2010 | 107,000 | $ | 19,280 | $ | 21,100 | 75 | % | |||||||||
| HealthPartners Medical Office Building | St. Cloud, MN | 2Q 2010 | 60,000 | 11,126 | 18,300 | 94 | % | |||||||||||
Lancaster Rehabilitation Hospital (1) | Lancaster, PA | 2Q 2010 | 4,600 | 414 | 2,100 | 100 | % | |||||||||||
| University Physicians MOB & Outpatient Clinic | Brandon, MS | 2Q 2010 | 50,600 | 10,070 | 13,900 | 100 | % | |||||||||||
| Land and pre-construction developments | - | 2,448 | - | |||||||||||||||
| 222,200 | $ | 43,338 | $ | 55,400 | ||||||||||||||
| (1) Represents 4,600 square foot expansion to the existing property. |
| Investment in Real Estate Properties | ||||||
| (in thousands) | ||||||
| Three Months Ended | Year Ended | |||||
| December 31, 2009 | December 31, 2009 | |||||
| Investment in real estate properties: | ||||||
| Development, redevelopment, and acquisitions | $ | 14,308 | $ | 51,979 | ||
| Second generation tenant improvements | 1,100 | 3,932 | ||||
| Recurring property capital expenditures | 1,465 | 1,633 | ||||
| Total | $ | 16,873 | $ | 57,544 | ||