SECOND QUARTER 2011 Supplemental Information Investor and Media Contact: American Assets Trust Robert F. Barton Executive Vice President and Chief Financial Officer 858-350-2607 Exhibit 99.2 |
Second Quarter 2011 Supplemental Information Page 2 AAT’s portfolio is concentrated in high-barrier-to-entry markets with favorable supply/demand characteristics Market Property Type No. of Properties Square Feet/Units San Diego Retail Office Multifamily 6 2 4 1,217,634 668,772 922 units (1) San Francisco Office 2 589,920 Oahu Retail Mixed-Use 2 1 549,695 96,569 (retail)/369 suites Monterey Retail 1 674,224 Los Angeles Office 1 194,268 San Antonio Retail 1 589,479 Portland Office 1 363,763 (2) Note: Circled areas represent all markets in which the Company currently owns and operates its real estate assets. Circle size denotes square feet / units. Square Feet % Retail 3.0 million 63% Office 1.8 million 37% Totals 4.8 million (1) Includes 122 RV spaces. (2) On July 1, 2011, the Company completed the acquisition of the Lloyd District Portfolio, which added an additional office property consisting of approximately 600,000 rentable square feet in Portland, Oregon. Such acquisition is not reflected in the map above. |
Second Quarter 2011 Supplemental Information Page 3 PAGE 1. SECOND QUARTER 2011 EARNINGS PRESS RELEASE 2. FINANCIAL HIGHLIGHTS Consolidated Balance Sheets 5 Consolidated Statements of Operations 7 Funds From Operations (FFO), FFO As Adjusted & Funds Available For Distribution 8 Same-Store Portfolio Net Operating Income (NOI) 10 Same-Store Portfolio NOI Comparison 12 NOI By Region 13 NOI Breakdown 14 Property Revenue and Operating Expenses 15 Segment Capital Expenditures 17 Summary of Outstanding Debt 18 Market Capitalization 19 Summary of Redevelopment Opportunities 20 3. PORTFOLIO DATA Property Report 22 Retail Leasing Summary 24 Office Leasing Summary 25 Lease Expirations 26 Portfolio Leased Statistics 28 Top Tenants – Retail 29 Top Tenants – Office 30 4. APPENDIX Glossary of Terms 32 INDEX This Supplemental Information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in our markets; our failure to generate sufficient cash flows to service our outstanding indebtedness; defaults on, early terminations of or non-renewal of leases by tenants, including significant tenants; difficulties in identifying properties to acquire and completing acquisitions; our failure to successfully operate acquired properties and operations; fluctuations in interest rates and increased operating costs; risks related to joint venture arrangements; our failure to obtain necessary outside financing; on-going litigation; general economic conditions; financial market fluctuations; risks that affect the general retail environment; the competitive environment in which we operate; decreased rental rates or increased vacancy rates; conflicts of interests with our officers or directors; lack or insufficient amounts of insurance; environmental uncertainties and risks related to adverse weather conditions and natural disasters; other factors affecting the real estate industry generally; limitations imposed on our business and our ability to satisfy complex rules in order for us to continue to qualify as a REIT for U.S. federal income tax purposes; and changes in governmental regulations or interpretations thereof, such as real estate and zoning laws and increases in real property tax rates and taxation of REITs. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact our future results, refer to our Annual Report on Form 10-K filed and other risks described in documents subsequently filed by us from time to time with the Securities and Exchange Commission. |
Second Quarter 2011 Supplemental Information FINANCIAL HIGHLIGHTS |
Page 5 CONSOLIDATED BALANCE SHEETS Assets Real estate, at cost Operating real estate $ 1,633,287 $ 1,156,091 Construction in progress 1,144 925 Held for development 8,756 8,081 1,643,187 1,165,097 Accumulated depreciation (240,603) (221,997) Net real estate 1,402,584 943,100 Cash and cash equivalents 92,535 41,953 Restricted cash 8,077 4,729 Marketable securities 31,445 - Accounts receivable, net 4,944 1,573 Deferred rent receivables, net 21,665 20,051 Notes receivable from affiliate - 21,769 Investment in real estate joint ventures - 39,816 Prepaid expenses and other assets 69,915 44,366 Purchase deposit 91,600 - Total assets $ 1,722,765 $ 1,117,357 June 30, December 31, 2011 2010 (Amounts in thousands, except share data) Second Quarter 2011 Supplemental Information |
Second Quarter 2011 Supplemental Information Page 6 Liabilities and equity Liabilities: Secured notes payable $ 944,279 $ 851,547 Unsecured notes payable - 38,013 Notes payable to affiliates - 5,266 Accounts payable and accrued expenses 20,007 11,644 Security deposits payable 4,302 2,648 Other liabilities and deferred credits 56,922 39,058 Distributions in excess of earnings on real estate joint ventures - 14,060 Total liabilities 1,025,510 962,236 Commitments and contingencies Equity: Owners' equity - 121,874 American Assets Trust, Inc. stockholders' equity Common stock $0.01 par value, 490,000,000 authorized, 39,281,839 outstanding at June 30, 2011 393 - Additional paid-in capital 652,220 - Accumulated deficit (15,168) - Total American Assets Trust, Inc. stockholders' equity 637,445 - Noncontrolling interests Owners in consolidated real estate entities - 33,247 Unitholders in the Operating Partnership 59,810 - 59,810 33,247 Total equity 697,255 155,121 Total liabilities and equity $ 1,722,765 $ 1,117,357 June 30, December 31, 2011 2010 CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amounts in thousands, except share data) |
Second Quarter 2011 Supplemental Information Page 7 CONSOLIDATED STATEMENTS OF OPERATIONS June 30, June 30, Revenue: Rental income $ 49,794 $ 28,414 $ 95,913 $ 56,509 Other property income 2,485 873 4,402 1,710 Total revenue 52,279 29,287 100,315 58,219 Expenses: Rental expenses 14,572 4,870 27,039 9,864 Real estate taxes 5,617 2,992 9,666 5,948 General and administrative 3,825 1,821 7,064 3,408 Depreciation and amortization 14,277 7,509 26,767 14,739 Total operating expenses 38,291 17,192 70,536 33,959 Operating income 13,988 12,095 29,779 24,260 Interest expense (14,063) (10,624) (27,142) (21,278) Early extinguishment of debt - - (25,867) - Loan transfer and consent fees - - (9,019) - Gain on acquisition - 4,297 46,371 4,297 Other income (expense), net 530 71 (71) (916) Net income 455 5,839 14,051 6,363 Net income attributable to restricted shares (132) - (218) - Net loss attributable to Predecessor's noncontrolling interests in consolidated real estate entities - 469 2,458 899 Net income attributable to Predecessor's controlled owners' equity - (6,308) (16,995) (7,262) Net (income) loss attributable to unitholders in the Operating Partnership (104) - 225 - Net income (loss) attributable to American Assets Trust, Inc. stockholders $ 219 $ - $ (479) $ - Net income (loss) attributable to common stockholders per share - basic $ 0.01 $ (0.01) Net income (loss) attributable to common stockholders per share - diluted $ 0.01 $ (0.01) Weighted average shares of common stock outstanding - basic Weighted average shares of common stock outstanding - diluted Dividends declared per common share $ 0.21 $ 0.38 38,655,084 34,810,932 57,051,173 34,810,932 Three Months Ended Six Months Ended 2011 2010 2011 2010 (Amounts in thousands, except share and per share data) |
Second Quarter 2011 Supplemental Information Page 8 FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (Amounts in thousands, except share and per share data) |
Page 9 FUNDS FROM OPERATIONS & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED) (Amounts in thousands, except shares and per share data) (1) (4) (5) (6) Second Quarter 2011 Supplemental Information FFO as adjusted $ 14,732 $ 30,021 Adjustments: Tenant improvements, leasing commissions and maintenance capital expenditures (2,046) (3,491) Net effect of straight-line rents (1,111) (1,465) Amortization of net above (below) market rents 386 781 Net effect of other lease intangibles 266 536 Amortization of debt issuance costs and debt fair value adjustment 1,030 1,895 Non-cash compensation expense 699 1,190 Unrealized gains on marketable securities (318) (53) Nonforfeitable dividends on incentive stock awards (89) (139) FAD $ 13,549 $ 29,275 Summary of Capital Expenditures Tenant improvements and leasing commissions $ 1,684 $ 2,832 Maintenance capital expenditures 362 659 $ 2,046 $ 3,491 June 30, 2011 June 30, 2011 Three Months Ended Six Months Ended Notes: (1) See Glossary of Terms. (2) For the three and six months ended June 30, 2011, the weighted average common shares and units used to compute FFO and FFO as adjusted per diluted share/unit include operating partnership units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO and FFO as adjusted per diluted share/unit include additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented. For the six months ended June 30, 2011, the weighted average shares and units outstanding have been weighted for the full six months, not the date of our initial public offering. (3) Represents the gain recognized upon acquisition of the outside ownership interests in the Solana Beach Centre entities and the Waikiki Beach Walk entities on January 19, 2011, in which we previously held a noncontrolling interest. (4) Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. (5) Represents the adjustment related to the acquisition of buildings with above (below ) market rents. (6) Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail. (7) Computations of per share amounts are made independently for the three and six months ended June 30, 2011. Therefore, the sum of per share amounts from the three months ended June 30 and March 31, 2011 may not agree with the per share amounts for the six months ended June 30, 2011. Funds Available for Distribution (FAD) |
Second Quarter 2011 Supplemental Information Page 10 SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) Notes: (1) Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2011 and 2010. See Glossary of Terms. (2) Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. (3) Represents the adjustment related to the acquisition of buildings with above (below) market rents. (4) Represents adjustments related to amortization of lease incentives paid to tenants. |
Second Quarter 2011 Supplemental Information Page 11 SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) Real estate rental revenue Same-store portfolio $ 39,865 $ 13,203 $ 6,785 $ - $ 59,853 Non-same store portfolio 3,564 16,561 - 20,337 40,462 Total 43,429 29,764 6,785 20,337 100,315 Real estate expenses Same-store portfolio 10,781 3,933 2,587 - 17,301 Non-same store portfolio 671 5,649 - 13,084 19,404 Total 11,452 9,582 2,587 13,084 36,705 Net Operating Income (NOI), GAAP basis Same-store portfolio 29,084 9,270 4,198 - 42,552 Non-same store portfolio 2,893 10,912 - 7,253 21,058 Total $ 31,977 $ 20,182 $ 4,198 $ 7,253 $ 63,610 Same-store portfolio NOI, GAAP basis $ 29,084 $ 9,270 $ 4,198 $ - $ 42,552 Net effect of straight-line rents 311 (148) - - 163 Amortization of net above (below) market rents (357) 686 - - 329 Net effect of other lease intangibles - 185 - - 185 Same-store portfolio NOI, cash basis $ 29,038 $ 9,993 $ 4,198 $ - $ 43,229 Notes: (1) (2) (3) Represents the adjustment related to the acquisition of buildings with above (below) market rents. (4) Same-store portfolio and non-same store portfolio are determined based on properties held on June 30, 2011 and 2010. See Glossary of Terms. Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. Represents adjustments related to amortization of lease incentives paid to tenants. Six Months Ended June 30, 2011 Retail Office Multifamily Mixed-Use Total (Amounts in thousands) (1) (1) (1) (2) (4) (3) |
Second Quarter 2011 Supplemental Information Page 12 SAME-STORE PORTFOLIO NOI COMPARISON Cash Basis: Retail $ 14,499 $ 14,189 2.2 % Office 4,984 5,095 (2.2) Multifamily 2,066 2,410 (14.3) Mixed-Use - - - $ 21,549 $ 21,694 (0.7) % GAAP Basis: Retail $ 14,509 $ 14,146 2.6 % Office 4,520 4,822 (6.3) Multifamily 2,066 2,411 (14.3) Mixed-Use - - - $ 21,095 $ 21,379 (1.3) % Cash Basis: Retail $ 29,038 $ 28,165 3.1 % Office 9,993 9,708 2.9 Multifamily 4,198 4,891 (14.2) Mixed-Use - - - $ 43,229 $ 42,764 1.1 % GAAP Basis: Retail $ 29,084 $ 28,242 3.0 % Office 9,270 9,192 0.8 Multifamily 4,198 4,891 (14.2) Mixed-Use - - - $ 42,552 $ 42,325 0.5 % Six Months Ended June 30, 2011 2010 Change 2011 2010 Change Three Months Ended June 30, (Amounts in thousands) |
Second Quarter 2011 Supplemental Information Page 13 NOI BY REGION Southern California NOI, GAAP basis (1) $ 6,517 $ 4,521 $ 2,066 $ - $ 13,104 Net effect of straight-line rents (2) (85) (71) - - (156) Amortization of net above (below) market rents (3) (140) 122 - - (18) Net effect of other lease intangibles (4) - 92 - - 92 NOI, cash basis 6,292 4,664 2,066 - 13,022 Northern California NOI, GAAP basis (1) 2,210 3,457 - - 5,667 Net effect of straight-line rents (2) (50) (652) - - (702) Amortization of net above (below) market rents (3) (67) 399 - - 332 Net effect of other lease intangibles (4) - 184 - - 184 NOI, cash basis 2,093 3,388 - - 5,481 Hawaii NOI, GAAP basis (1) 4,462 - - 4,131 8,593 Net effect of straight-line rents (2) 126 - - (114) 12 Amortization of net above (below) market rents (3) (68) - - 220 152 Net effect of other lease intangibles (4) - - - (10) (10) NOI, cash basis 4,520 - - 4,227 8,747 Oregon NOI, GAAP basis (1) - 1,845 - - 1,845 Net effect of straight-line rents (2) - (344) - - (344) Amortization of net above (below) market rents (3) - (22) - - (22) Net effect of other lease intangibles (4) - - - - - NOI, cash basis - 1,479 - - 1,479 Texas NOI, GAAP basis (1) 2,881 - - - 2,881 Net effect of straight-line rents (2) 79 - - - 79 Amortization of net above (below) market rents (3) (58) - - - (58) Net effect of other lease intangibles (4) - - - - - NOI, cash basis 2,902 - - - 2,902 Total NOI, GAAP basis (1) 16,070 9,823 2,066 4,131 32,090 Net effect of straight-line rents (2) 70 (1,067) - (114) (1,111) Amortization of net above (below) market rents (3) (333) 499 - 220 386 Net effect of other lease intangibles (4) - 276 - (10) 266 NOI, cash basis $ 15,807 $ 9,531 $ 2,066 $ 4,227 $ 31,631 Notes: Three Months Ended June 30, 2011 Retail Office Multifamily Mixed-Use Total (Amounts in thousands) (1) See Glossary of Terms. (2) Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. (3) Represents the adjustment related to the acquisition of buildings with above (below) market rents. (4) Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail. |
Second Quarter 2011 Supplemental Information Page 14 NOI BREAKDOWN Portfolio Cash NOI Breakdown Portfolio GAAP NOI Breakdown Portfolio Diversification by Geographic Region Portfolio Diversification by Segment Portfolio Diversification by Geographic Region Portfolio Diversification by Segment Southern California 41% Northern California 17% Hawaii 28% Oregon 5% Texas 9% Retail 50% Office 30% Multifamily 7% Mixed-Use 13% Southern California 41% Northern California 17% Hawaii 27% Oregon 6% Texas 9% Retail 50% Office 31% Multifamily 6% Mixed-Use 13% |
Second Quarter 2011 Supplemental Information Page 15 PROPERTY REVENUE AND OPERATING EXPENSES Retail Portfolio Carmel Country Plaza $ 1,744 $ 42 $ 384 $ (361) Carmel Mountain Plaza 4,429 113 1,278 (1,433) South Bay Marketplace 1,024 23 316 (374) Rancho Carmel Plaza 360 36 97 (120) Lomas Santa Fe Plaza 2,592 76 514 (650) Solana Beach Towne Centre 2,656 36 732 (698) Del Monte Center 4,088 423 1,695 (2,059) The Shops at Kalakaua 769 40 79 (134) Waikele Center 8,401 628 2,075 (2,756) Alamo Quarry Market 5,944 124 2,565 (2,891) Subtotal Retail Portfolio $ 32,007 $ 1,541 $ 9,735 $ (11,476) Office Portfolio Torrey Reserve Campus $ 7,378 $ 295 $ 252 $ (1,814) Solana Beach Corporate Centre 3,043 15 61 (756) Valencia Corporate Center 2,239 1 19 (755) 160 King Street 2,722 663 522 (1,205) The Landmark at One Market 9,820 123 449 (3,566) First & Main 3,233 54 - (984) Subtotal Office Portfolio $ 28,435 $ 1,151 $ 1,303 $ (9,080) Multifamily Portfolio Loma Palisades $ 4,784 $ 334 $ - $ (1,763) Imperial Beach Gardens 1,189 83 - (402) Mariner's Point 551 50 - (208) Santa Fe Park RV Resort 372 30 - (214) Subtotal Multifamily Portfolio $ 6,896 $ 497 $ - $ (2,587) Expenses Property Base Rent Income Reimbursements Six Months Ended June 30, 2011 Additional Property Property Billed Expense Operating (Amounts in thousands) (5) (5) (6) (7) (8) (9) (10) (1) (2) (3) (4) |
Second Quarter 2011 Supplemental Information Page 16 PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED) (Amounts in thousands) |
Second Quarter 2011 Supplemental Information Page 17 SEGMENT CAPITAL EXPENDITURES Retail Portfolio $ 280 $ 203 $ 483 $ 12 $ - $ 495 Office Portfolio 1,404 41 1,445 - 87 1,532 Multifamily Portfolio - 83 83 - - 83 Mixed-Use Portfolio - 35 35 - - 35 Total $ 1,684 $ 362 $ 2,046 $ 12 $ 87 $ 2,145 Retail Portfolio $ 658 $ 277 $ 935 $ 12 $ - $ 947 Office Portfolio 2,174 115 2,289 - 182 2,471 Multifamily Portfolio - 137 137 - - 137 Mixed-Use Portfolio - 130 130 - - 130 Total $ 2,832 $ 659 $ 3,491 $ 12 $ 182 $ 3,685 Total Capital Expenditures Segment Tenant Improvements and Leasing Commissions Maintenance Capital Expenditures Total Capital Expenditures Segment Tenant Improvements and Leasing Commissions Maintenance Capital Expenditures Redevelopment and Expansions New Development Redevelopment and Expansions New Development Total Tenant Improvements, Leasing Commissions and Maintenance Expenditures Total Tenant Improvements, Leasing Commissions and Maintenance Expenditures Three Months Ended June 30, 2011 Six Months Ended June 30, 2011 (Amounts in thousands) |
Second Quarter 2011 Supplemental Information Page 18 Maturity Date Alamo Quarry Market (1)(2) $ 97,026 5.67 % $ 7,567 January 8, 2014 $ 91,717 160 King Street (3) 32,182 5.68 3,350 May 1, 2014 27,513 Waikele Center (4) 140,700 5.15 7,360 November 1, 2014 140,700 The Shops at Kalakaua (4) 19,000 5.45 1,053 May 1, 2015 19,000 The Landmark at One Market (2)(4) 133,000 5.61 7,558 July 5, 2015 133,000 Del Monte Center (4) 82,300 4.93 4,121 July 8, 2015 82,300 First & Main (4) 84,500 3.97 3,397 July 1, 2016 84,500 Imperial Beach Gardens (4) 20,000 6.16 1,250 September 1, 2016 20,000 Mariner's Point (4) 7,700 6.09 476 September 1, 2016 7,700 South Bay Marketplace (4) 23,000 5.48 1,281 February 10, 2017 23,000 Waikiki Beach Walk - Retail (4) 130,310 5.39 7,020 July 1, 2017 130,310 Solana Beach Corporate Centre III-IV (5) 37,330 6.39 2,418 August 1, 2017 35,136 Loma Palisades (4) 73,744 6.09 4,553 July 1, 2018 73,744 Torrey Reserve - North Court (1) 22,046 7.22 1,836 June 1, 2019 19,443 Torrey Reserve - VCI, VCII, VCIII (1) 7,421 6.36 560 June 1, 2020 6,439 Solana Beach Corporate Centre I-II (1) 11,860 5.91 855 June 1, 2020 10,169 Solana Beach Towne Centre (1) 39,533 5.91 2,849 June 1, 2020 33,898 Total / Weighted Average $ 961,652 5.45 % $ 57,504 $ 938,569 Unamortized fair value adjustment (17,373) Debt Balance $ 944,279 Fixed Rate Debt Ratio Fixed rate debt 100% Variable rate debt - Notes: (1) Principal payments based on a 30-year amortization schedule. (2) Maturity date is the earlier of the loan maturity date under the loan agreement, or the "Anticipated Repayment Date" as specifically defined in the loan agreement, which is the date after which substantial economic penalties apply if the loan has not been paid off. (3) Principal payments based on a 20-year amortization schedule. (4) Interest only. (5) Loan is interest only through August 2012. Beginning in September 2012, principal payments are based on a 30-year amortization schedule. Balance at Debt June 30, 2011 Interest Rate Service Maturity Amount Outstanding at Annual Debt SUMMARY OF OUTSTANDING DEBT (Amounts in thousands) |
Second Quarter 2011 Supplemental Information Page 19 MARKET CAPITALIZATION |
Second Quarter 2011 Supplemental Information Page 20 SUMMARY OF REDEVELOPMENT OPPORTUNITIES Potential Future Development/Redevelopment Pipeline Property Location Opportunity Solana Beach Corporate Centre (Building 5) Solana Beach, CA $ 5,800 $ - Lomas Santa Fe Plaza Expansion Solana Beach, CA 17,000 - Torrey Reserve Phase III San Diego, CA 17,200 - Torrey Reserve Phase IV San Diego, CA 17,000 - Sorrento Pointe San Diego, CA 30,300 - Solana Beach Towne Centre II Solana Beach, CA 1,000 12 Total $ 88,300 $ 12 Complete the facade improvements to the Solana Beach Towne Centre. to Date Construction of a new 10,300 square foot building and structured parking for retail/restaurant use oriented toward the Solana Beach Towne Centre. Expansion of 30,700 square feet and the renovation of 14,787 square feet for a combined project of 45,487 square feet, plus structured parking. Construction of three additional commercial buildings (retail, restaurant, office and medical) for a total of 41,692 square feet, and a 34,603 square foot underground parking structure. Estimated Cost Construction Cost Construction of two 20,000 square foot commercial buildings (restaurant and office) for a total of 40,000 square feet atop subterranean parking. Construction of two class "A" office buildings for a total of 79,053 square feet with subterranean parking. (Dollar amounts in thousands) Note: The Lloyd District Portfolio development pipeline is not included as the property was not acquired until July 1, 2011. |
Second Quarter 2011 Supplemental Information PORTFOLIO DATA |
Second Quarter 2011 Supplemental Information Page 22 PROPERTY REPORT As of June 30, 2011 Net Number Rentable Year Built/ of Square Location Renovated Buildings Feet (1) Retail Properties Carmel Country Plaza San Diego, CA 1991 9 77,813 100.0 % $ 3,515,846 $ 45.18 Sharp Healthcare, Frazee Industries Inc. Carmel Mountain Plaza (7) San Diego, CA 1994 13 520,228 82.9 8,686,016 20.14 Sears Sports Authority, Reading Cinemas South Bay Marketplace (7) San Diego, CA 1997 9 132,873 100.0 2,067,796 15.56 Office Depot Inc., Ross Dress for Less Rancho Carmel Plaza San Diego, CA 1993 3 30,421 74.5 713,589 31.47 Oggi's Pizza & Brewing Co., Sprint PCS Assets Lomas Santa Fe Plaza Solana Beach, CA 1972/1997 9 209,569 97.6 5,257,257 25.71 Vons, Ross Dress for Less Del Monte Center (7) Monterey, CA 1967/1984/2006 16 674,224 97.2 8,789,864 13.41 Macy's, KLA Monterey Century Theatres, Macy's Furniture Gallery The Shops at Kalakaua Honolulu, HI 1971/2006 3 11,671 100.0 1,535,028 131.52 Whalers General Store, Diesel U.S.A. Inc. Waikele Center Waipahu, HI 1993/2008 9 538,024 90.9 17,014,540 34.81 Old Navy, Officemax Alamo Quarry Market (7) San Antonio, TX 1997/1999 16 589,479 98.9 11,808,839 20.26 Regal Cinemas Bed Bath & Beyond, Whole Foods Market Subtotal/Weighted Average Retail Portfolio 87 2,784,302 93.7 % $ 59,388,775 $ 22.77 Office Properties Torrey Reserve Campus San Diego, CA 1996-2000 9 456,801 93.1 % $ 14,795,889 $ 34.78 Valencia Corporate Center Santa Clarita, CA 1999-2007 3 194,268 80.9 4,493,083 28.58 160 King Street San Francisco, CA 2002 1 167,986 95.2 5,467,207 34.18 Subtotal/Weighted Average Office Portfolio 13 819,055 90.7 % $ 24,756,179 $ 33.34 Total/Weighted Average Retail and Office Portfolio 100 3,603,357 93.0 % $ 84,144,954 $ 25.11 Number Year Built/ of Location Renovated Buildings Units Loma Palisades San Diego, CA 1958/2001-2008 80 548 100.0 % $ 10,392,072 $ 1,580 Imperial Beach Gardens Imperial Beach, CA 1959/2008-present 26 160 96.9 2,674,296 1,437 Mariner's Point Imperial Beach, CA 1986 8 88 98.9 1,173,900 1,124 Santa Fe Park RV Resort (8) San Diego, CA 1971/2007-2008 1 126 88.0 968,388 728 Total/Weighted Average Multifamily Portfolio 115 922 97.7 % $ 15,208,656 $ 1,407 Net Number Rentable Year Built/ of Square Location Renovated Buildings Feet (1) Retail Property Solana Beach Towne Centre Solana Beach, CA 1973/2000/2004 12 246,730 97.7 % $ 5,306,176 $ 22.01 Dixieline Probuild, Marshalls Office Properties Solana Beach Corporate Centre Solana Beach, CA 1982/2005 4 211,971 84.1 $ 5,691,424 $ 31.94 The Landmark at One Market (9) San Francisco, CA 1917/2000 1 421,934 100.0 18,289,232 43.35 First & Main Portland, OR 2010 1 363,763 96.5 10,548,509 30.04 Subtotal/Weighted Average Office Portfolio 6 997,668 95.4 % $ 34,529,165 $ 36.30 Total/Weighted Average Retail and Office Portfolio 18 1,244,398 95.8 % $ 39,835,341 $ 33.41 Lowe's, Kmart, Sports Authority, Foodland Super Martket Square Foot (4) Property Leased (2) Base Rent (3) Leased Unit (4) Non - Same Store Retail and Office Portfolios Same - Store Multifamily Portfolio Average Monthly Percentage Annualized Base Rent per Same - Store Retail and Office Portfolios Annualized Base Rent Retail Anchor Tenant(s) (5) Other Principal Retail Tenants (6) Percentage Annualized per Leased Property Leased (2) Base Rent (3) Square Foot (4) Annualized Base Rent Property Retail Anchor Tenant(s) (5) Other Principal Retail Tenants (6) Percentage Annualized per Leased Leased (2) Base Rent (3) |
Second Quarter 2011 Supplemental Information Page 23 PROPERTY REPORT (CONTINUED) Net Number Rentable Year Built/ of Square Location Renovated Buildings Feet (1) Waikiki Beach Walk - Retail Honolulu, HI 2006 3 96,569 97.6 % $ 9,388,624 $ 99.57 Yardhouse, Ruths Chris Number Year Built/ of Location Renovated Buildings Units Waikiki Beach Walk - Embassy Suites™ Honolulu, HI 2008 2 369 87.3 % $ 233.94 $ 204.23 Notes: (1) (2) (3) (4) (5) Retail anchor tenants are defined as retail tenants leasing 50,000 square feet or more. (6) Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants. (7) Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the following table: Square Footage Aggregate Number of Leased Pursuant Annualized Property Ground Leases to Ground Leases Base Rent Carmel Mountain Plaza 6 127,112 1,020,900 $ South Bay Marketplace 1 2,824 81,540 $ Del Monte Center 2 295,100 201,291 $ Alamo Quarry Market 4 31,994 428,250 $ (8) (9) (10) The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended June 30, 2011, the highest average monthly occupancy rate for this property was 98.0%, occurring in July 2010, and the lowest average monthly occupancy rate for this property was 60.0%, occurring in November 2010. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments. This property contains 421,934 net rentable square feet consisting of The Landmark at One Market (377,714 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2016, which we have the option to extend until 2031 pursuant to three five-year extension options. Average occupancy represents the percentage of available units that were sold during the 6-month period ended June 30, 2011, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for the 6-month period ended June 30, 2011, by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the 6-month period ended June 30, 2011 and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services. Hotel Portion Occupancy (10) Daily Rate (10) Room (10) The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines. Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property includes square footage under leases as of June 30, 2011, including leases which may not have commenced as of June 30, 2011. Percentage leased for our multifamily properties includes total units rented as of June 30, 2011. Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2011, by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of June 30, 2011. Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of June 30, 2011. Non - Same Store Mixed-Use Portfolio Annualized Base Rent Retail Anchor Tenant(s) (5) Other Principal Retail Tenants (6) Percentage Annualized per Leased Retail Portion Leased (2) Base Rent (3) Square Foot (4) Annualized Revenue per Average Average Available As of June 30, 2011 |
Second Quarter 2011 Supplemental Information Page 24 RETAIL LEASING SUMMARY As of June 30, 2011 |
Second Quarter 2011 Supplemental Information Page 25 OFFICE LEASING SUMMARY As of June 30, 2011 Total Lease Summary - Comparable (1) Number of Quarter Leases Signed Lease Term (4) 2nd Quarter 2011 6 100 % 81,360 $ 39.25 $ 45.54 $ (512,187) (13.8) % (0.9) % 5.8 $ 231,839 $ 2.85 1st Quarter 2011 10 100 31,298 32.88 37.54 (145,946) (12.4) (2.3) 2.5 57,520 1.84 Total 6 months 16 100 % 112,658 $ 37.48 $ 43.32 $ (658,133) (13.5) % (1.2) % 4.9 $ 289,359 $ 2.57 New Lease Summary - Comparable (1) Number of Quarter Leases Signed Lease Term (4) 2nd Quarter 2011 3 50 % 68,085 $ 40.69 $ 46.47 $ (393,958) (12.5) % 1.1 % 6.5 $ 212,691 $ 3.12 1st Quarter 2011 2 20 5,066 33.90 42.78 (44,982) (20.8) (14.0) 4.2 5,938 1.17 Total 6 months 5 31 % 73,151 $ 40.22 $ 46.22 $ (438,940) (13.0) % 0.1 % 6.4 $ 218,629 $ 2.99 Renewal Lease Summary - Comparable (1)(5) Number of Quarter Leases Signed Lease Term (4) 2nd Quarter 2011 3 50 % 13,275 $ 31.86 $ 40.76 $ (118,229) (21.8) % (12.8) % 1.7 $ 19,149 $ 1.44 1st Quarter 2011 8 80 26,232 32.68 36.53 (100,964) (10.5) 0.5 2.2 51,582 1.97 Total 6 months 11 69 % 39,507 $ 32.40 $ 37.95 $ (219,193) (14.6) % (4.3) % 2.0 $ 70,731 $ 1.79 Total Lease Summary - Comparable and Non-Comparable Number of Quarter Leases Signed Signed 2nd Quarter 2011 9 94,851 $ 38.25 5.8 $ 711,785 $ 7.50 1st Quarter 2011 14 43,502 32.44 2.7 141,420 3.25 Total 6 months 23 138,353 $ 36.42 4.8 $ 853,205 $ 6.17 (1) Comparable leases represent those leases signed on spaces for which there was a previous lease. (2) Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term. (3) Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term. (4) Weighted average is calculated on the basis of square footage. (5) Excludes renewals at fixed contractual rates specified in the lease. Tenant Net Rentable Contractual Annual Change Cash Basis Straight-Line Weighted Average Tenant Improvements Improvements & Incentives Basis % Change Leases Signed Signed Per Sq. Ft. (2) Per Sq. Ft. (3) in Rent % of Comparable Square Feet Rent Prior Rent % Change Rent Over Prior Rent Over Prior Rent & Incentives Per Sq. Ft. in Rent Tenant Net Rentable Contractual Annual Change Cash Basis Straight-Line Weighted Average Tenant Improvements Improvements & Incentives Basis % Change % of Comparable Square Feet Prior Rent % Change Per Sq. Ft. Tenant Net Rentable Contractual Annual Change Cash Basis Straight-Line Weighted Average Tenant Improvements Improvements & Incentives Over Prior Rent Over Prior Rent & Incentives Basis % Change Leases Signed Signed Per Sq. Ft. (2) Per Sq. Ft. (3) in Rent % of Comparable Square Feet Rent Prior Rent % Change Leases Signed Signed Per Sq. Ft. (2) Per Sq. Ft. (3) Net Rentable Contractual Weighted Average Tenant Improvements Square Feet Rent Improvements & Incentives Per Sq. Ft. (2) Lease Term (4) & Incentives Per Sq. Ft. Per Sq. Ft. Tenant Over Prior Rent Over Prior Rent & Incentives |
Second Quarter 2011 Supplemental Information Page 26 LEASE EXPIRATIONS Assumes no exercise of lease options Office Retail Mixed-Use (Retail Portion Only) Total Expiring Expiring Expiring Expiring Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft. 21,028 1.2 % 0.4 % $ 12.17 11,129 0.4 % 0.2 % $ 23.76 7,615 7.9 % 0.2 % $ 40.76 39,772 0.8 % $ 20.89 39,287 2.2 0.8 28.90 55,920 1.8 1.1 31.69 360 0.4 0.0 194.88 95,567 1.9 31.16 154,530 8.5 3.1 33.10 329,256 10.9 6.7 24.05 6,184 6.4 0.1 163.76 489,970 9.9 28.67 188,542 10.4 3.8 33.55 519,415 17.1 10.5 24.17 7,065 7.3 0.1 145.95 715,022 14.5 27.84 90,514 5.0 1.8 34.69 427,246 14.1 8.6 26.03 1,959 2.0 0.0 116.83 519,719 10.5 27.88 207,619 11.4 4.2 37.39 221,132 7.3 4.5 25.37 12,697 13.1 0.3 153.03 441,448 8.9 34.70 151,668 8.3 3.1 29.72 122,640 (4)(5) 4.0 2.5 37.21 10,191 10.6 0.2 171.11 284,499 5.8 38.01 120,901 (2) 6.7 2.4 38.74 111,249 3.7 2.3 25.00 4,628 4.8 0.1 134.78 236,778 4.8 34.16 36,226 2.0 0.7 45.50 737,758 24.3 14.9 15.51 4,673 4.8 0.1 139.02 778,657 15.7 17.64 225,679 (3) 12.4 4.6 44.25 70,197 2.3 1.4 26.80 11,690 12.1 0.2 51.73 307,566 6.2 40.55 225,108 12.4 4.6 35.12 118,506 3.9 2.4 8.79 17,843 18.5 0.4 41.30 361,457 7.3 26.79 Thereafter 208,215 11.4 4.2 32.74 120,381 4.1 2.4 25.71 9,382 9.7 0.2 46.20 337,978 6.9 30.61 Signed Leases 38,437 2.1 0.8 - 19,537 0.6 0.4 - - - - - 57,974 1.2 - Not Commenced Available 108,969 6.0 2.2 - 166,666 5.5 3.4 - 2,282 2.4 0.0 - 277,917 5.6 - Total 1,816,723 100.0 % 36.7 % $ 32.63 3,031,032 100.0 % 61.3 % $ 21.13 96,569 100.0 % 1.9 % $ 97.22 4,944,324 100.0 % $ 26.84 �� Assumes all lease options are exercised Office Retail Mixed-Use (Retail Portion Only) Total Expiring Expiring Expiring Expiring Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft. 21,028 1.2 % 0.4 % $ 12.17 11,129 0.4 % 0.2 % $ 23.76 7,615 7.9 % 0.2 % $ 40.76 39,772 0.8 % $ 20.89 28,549 1.6 0.6 25.14 47,522 1.6 1.0 30.59 360 0.4 0.0 194.88 76,431 1.5 29.33 87,482 4.8 1.8 35.87 111,839 3.7 2.3 29.77 6,184 6.4 0.1 163.76 205,505 4.2 36.40 87,648 4.8 1.8 36.00 104,912 3.5 2.1 36.19 7,065 7.3 0.1 145.95 199,625 4.0 39.99 19,184 1.1 0.4 32.81 179,978 5.9 3.6 35.58 1,959 2.0 0.0 116.83 201,121 4.1 36.11 107,157 5.9 2.2 36.64 44,830 1.5 0.9 39.24 12,697 13.1 0.3 153.03 164,684 3.3 46.32 133,920 7.4 2.7 29.50 66,344 (4) 2.2 1.3 33.32 10,191 10.6 0.2 171.11 210,455 4.3 37.56 74,500 4.1 1.5 29.71 84,432 2.8 1.7 30.71 4,628 4.8 0.1 134.78 163,560 3.3 33.20 96,210 5.3 1.9 31.49 186,879 6.2 3.8 23.38 4,673 4.8 0.1 139.02 287,762 5.8 27.97 55,454 3.1 1.1 35.58 142,792 4.7 2.9 22.08 11,690 12.1 0.2 51.73 209,936 4.2 27.29 88,652 4.9 1.8 33.24 299,889 9.9 6.1 15.58 17,843 18.5 0.4 41.30 406,384 8.2 20.56 Thereafter 869,533 (2)(3) 47.7 17.6 38.35 1,564,283 (5) 51.5 31.6 19.20 9,382 9.7 0.2 46.20 2,443,198 49.5 26.12 Signed Leases 38,437 2.1 0.8 - 19,537 0.6 0.4 - - - - - 57,974 1.2 - Not Commenced Available 108,969 6.0 2.2 - 166,666 5.5 3.4 - 2,282 2.4 0.0 - 277,917 5.6 - Total 1,816,723 100.0 % 36.8 % $ 32.63 3,031,032 100.0 % 61.3 % $ 21.13 96,569 100.0 % 1.9 % $ 97.22 4,944,324 100.0 % $ 26.84 Per Sq. Ft. (1) 2017 2018 2019 2020 Per Sq. Ft. (1) Sq. Ft. Sq. Ft. Per Sq. Ft. (1) Sq. Ft. Sq. Ft. Sq. Ft. Per Sq. Ft. (1) Sq. Ft. Sq. Ft. Annualized Office Total Base Rent Retail Total Base Rent Mixed-Use Total Base Rent Total Base Rent Annualized % of % of Annualized % of % of % of Annualized % of % of Per Sq. Ft. (1) 2017 2018 2019 2020 Per Sq. Ft. (1) Sq. Ft. Sq. Ft. Per Sq. Ft. (1) Sq. Ft. Sq. Ft. Sq. Ft. Per Sq. Ft. (1) Sq. Ft. Sq. Ft. 2016 Annualized Office Total Base Rent Retail Total Base Rent Mixed-Use Total Base Rent Total Base Rent Annualized % of % of Annualized % of % of % of Annualized % of % of Year Month to Month 2011 2012 2013 2014 2015 2016 Year Month to Month 2011 2012 2013 2014 2015 As of June 30, 2011 |
Second Quarter 2011 Supplemental Information Page 27 LEASE EXPIRATIONS (CONTINUED) Notes: (1) (2) (3) (4) (5) Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent for leases expiring during the applicable period, by (ii) square footage under such expiring leases. Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended June 30, 2011 for the leases expiring during the applicable period, by (ii) 12. The expirations include 45,795 square feet currently leased by Microsoft at The Landmark at One Market, for which Autodesk has signed an agreement to lease the space upon Microsoft's lease termination from December 31, 2012 through December 31, 2017 with an option to extend the lease through December 31, 2024. The expirations include 56,963 square feet currently leased by DLA Piper at 160 King Street with a lease termination of February 28, 2012, for which Ancestry.com has signed an agreement to lease the space upon lease termination from May 1, 2012 through April 30, 2019 with an option to extend the lease through April 30, 2029. The expirations include 2,024 square feet leased by Ocean Breeze Realty through June 30, 2011 at Lomas Santa Fe Plaza , for which JP Morgan has signed an agreement to lease the space from July 18, 2011 through September 30, 2016 with an option to extend the lease through September 30, 2026. The expirations include 1,200 square feet leased by San Diego Wireless through October 31, 2011 at Carmel Mountain Plaza, for which T-Mobile has signed an agreement to lease the space from November 1, 2011 through October 31, 2016. |
Second Quarter 2011 Supplemental Information Page 28 PORTFOLIO LEASED STATISTICS Size Leased (1) Leased % Size Leased (1) Leased % Overall Portfolio Statistics Retail Properties (square feet) 3,031,032 2,849,270 94.0% 2,704,243 2,605,819 96.4% Office Properties (square feet) 1,816,723 1,693,833 93.2% 1,240,989 1,159,627 93.4% Multifamily Properties (units) 922 901 97.7% 922 859 93.2% Mixed-Used Properties (square feet) 96,569 94,287 97.6% - - - Mixed-Used Properties (units) 369 322 (6) 87.3% - - - Same-Store (2) Statistics Retail Properties (square feet) 2,704,302 (3) 2,608,205 96.4% 2,704,243 2,605,819 96.4% Office Properties (square feet) 1,240,989 (4) 1,164,533 93.8% 1,240,989 (7) 1,159,627 93.4% Multifamily Properties (units) 922 901 97.7% 922 859 93.2% Mixed-Used Properties (square feet) - (5) - - - - - Mixed-Used Properties (units) - (5) - - - - - Notes: (2) See Glossary of Terms. (4) Excludes Solana Beach Corporate Centre as the controlling interest in this entity was acquired on January 19, 2011. First & Main is excluded as it was acquired on March 11, 2011. (5) Excludes the Waikiki Beach Walk property as the controlling interest in this entity was acquired on January 19, 2011. (6) Represents average occupancy for the six months ended June 30, 2011. (7) Includes The Landmark at One Market as the controlling interest in this entity was acquired on June 30, 2010. At June 30, 2011 At June 30, 2010 Type (1) Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date. (3) Excludes Solana Beach Towne Centre as the controlling interest in this entity was acquired on January 19, 2011. Also excludes 80,000 square building at Carmel Mountain Plaza acquired on November 10, 2010. |
Second Quarter 2011 Supplemental Information Page 29 TOP TENANTS - RETAIL As of June 30, 2011 |
Second Quarter 2011 Supplemental Information Page 30 TOP TENANTS - OFFICE As of June 30, 2011 |
Second Quarter 2011 Supplemental Information APPENDIX |
Second Quarter 2011 Supplemental Information Page 32 GLOSSARY OF TERMS |
Second Quarter 2011 Supplemental Information Page 33 GLOSSARY OF TERMS (CONTINUED) |
Second Quarter 2011 Supplemental Information Page 34 GLOSSARY OF TERMS (CONTINUED) Overall Portfolio: Includes all operating properties owned by us as of June 30, 2011. Retail Properties Carmel Country Plaza Carmel Mountain South Bay Marketplace Rancho Carmel Plaza Lomas Santa Fe Plaza Solana Beach Towne Centre Del Monte Center The Shops at Kalakaua Waikele Center Alamo Quarry Market Office Properties Torrey Reserve Solana Beach Corporate Centre Valencia Corporate Center 160 King Street The Landmark at One Market First & Main Multifamily Properties Loma Palisades Imperial Beach Gardens Mariner's Point Santa Fe Park RV Resort Mixed-Use Properties Waikiki Beach Walk - Retail Waikiki Beach Walk - Embassy Suites™ Development Properties Sorrento Pointe - Land Torrey Reserve - Land Solana Beach - Land Comparison of Q2 2011 to Q2 2010 Same-Store Non-Same Store X X X X X X X X X X X X X X X X X X X X X X X X X operated for the entirety of both periods being compared and excludes properties that were redeveloped, expanded or under development and properties purchased or sold at any time during the periods being compared. The following table shows the properties included in the same-store and non-same store portfolio for the comparative periods presented. Same-Store Portfolio and Non-Same Store Portfolio: Information provided on a same-store basis is provided for only those properties that were owned and Tenant Improvements and Incentives: Represents not only the total dollars committed for the improvement (fit-out) of a space as it relates to a specific lease but may also include base building costs (i.e. expansion, escalators or new entrances) which are required to make the space leasable. Incentives include amounts paid to tenants as an inducement to sign a lease that do not represent building improvements. |