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Supplemental Information
(Unaudited)
March 31, 2002
Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
March 31, 2002
| Page | ||
---|---|---|---|
Highlights and Discussion | |||
Reporting Period Highlights—First Quarter 2002 | 1 | ||
Subsequent Events | 2 | ||
Financial Statements | |||
Quarterly Selected Financial Summary Data | 3 | ||
Quarterly Consolidated Balance Sheets | 4 | ||
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) | 5 | ||
Quarterly Consolidated Statements of Operations and FFO per Diluted Share | 6 | ||
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues | 7 | ||
Selected Financial Analyses | |||
Quarterly Equity Analysis | 8 | ||
Quarterly Valuation Analysis | 9 | ||
Quarterly Debt Analysis | 10 | ||
Quarterly Operating Ratios | 11 | ||
Quarterly Dividend Analysis | 12 | ||
Investor Composition and Analyst Coverage | 13 | ||
Debt Maturity Schedule—March 31, 2002 | 14 | ||
Portfolio Summary | |||
Property Summary by Region—March 31, 2002 | 15 | ||
Property Occupancy Rates by Region by Quarter | 18 | ||
Top Twenty Office Tenants as of March 31, 2002 | 19 | ||
Total Rental Revenue and Net Operating Income by Geographic Region by Quarter | 20 | ||
Same Office Property Cash and GAAP Net Operating Income by Quarter | 21 | ||
Average Occupancy Rates by Region for Same Office Properties | 22 | ||
Office Lease Expiration Analysis by Year | 23 | ||
Quarterly Office Renewal Analysis | 24 | ||
Development Summary as of March 31, 2002 | 26 | ||
Joint Venture Summary as of March 31, 2002 | 27 |
To Members of the Investment Community:
We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, filed with the Securities and Exchange Commission and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Mary Ellen Fowler, Vice President, Finance and Investor Relations at (410) 992-7324 or maryellen.fowler@copt.com.
Reporting Period Highlights—First Quarter 2002
Financial Results
- •
- Reported FFO—diluted of $11,373,000 or $.33 per share/unit for the first quarter of 2002 as compared to $10,102,000 or $.31 per share/unit for the comparable 2001 period, representing an increase of 6.5% per share/unit. FFO—diluted increased $1,271,000 or 12.6%, over the comparable 2001 period.
- •
- Reported AFFO—diluted of $9,541,000 or $.27 per share/unit for the first quarter of 2002 as compared to $8,296,000 or $.25 per share/unit for the comparable 2001 period, representing an increase of 8.0% per share/unit.
- •
- Our assets exceeded $1 billion as of March 31, 2002.
Financing and Capital Transactions
- •
- Constellation Real Estate, Inc., our largest shareholder, sold its entire ownership position of 8,876,172 common shares in a public offering at a price of $12.04 per share. As part of this offering, we also sold 2,084,828 common shares and realized gross proceeds of $25.1 million on March 5, 2002 which was used to repay outstanding debt. As a result, our common shares available to be publicly traded have doubled and our institutional ownership has almost tripled.
- •
- We expanded our Deutsche Bank revolving credit facility capacity from $125 to $150 million and added an option to extend the maturity date for a one-year period to March 31, 2005, subject to certain conditions.
- •
- As of March 31, 2002, our debt to market capitalization is 50.7% and our debt to undepreciated book value of real estate assets is 57.4%. We achieved an EBITDA interest coverage ratio of 2.7x and an EBITDA fixed charge coverage ratio of 2.0x for this quarter. Our quarterly weighted average interest rate dropped to 6.52% in the first quarter of 2002 from 6.85% in the prior quarter.
- •
- In January, BB&T Capital Markets initiated coverage of our stock with a Buy recommendation. As a result, we now have equity research coverage provided by seven analysts.
Operations
- •
- Our same property cash NOI increased by 4.1% over the quarter ended March 31, 2001 for the 82 properties comprising our same property portfolio. This improvement is primarily attributable to tighter control over operating costs.
- •
- Overall occupancy was 94% as of March 31, 2002. The occupancy rate was 93% in the Baltimore/Washington Corridor, which represents 61% of our office square footage and 64% of our total office revenues for the first quarter of 2002. We are 95% leased as of March 31, 2002.
- •
- Weighted average lease term of our office portfolio is 4.4 years as of March 31, 2002, with an average contractual rental rate (including tenant reimbursements of operating costs) of $18.52 per square foot.
1
Joint Ventures
- •
- On February 25, 2002, we acquired the remaining 50% joint venture interest in 2701 Technology Drive for $5.4 million and now directly own the 117,450 square foot property located in the National Business Park. As of March 31, 2002, this recently developed building was 100.0% leased. We simultaneously received $14.7 million of a $34.0 million, seven-year loan which bears interest at a fixed rate of 7.0% and repaid the joint venture's outstanding construction loan obligation of $10.0 million. $4.4 million of the remaining proceeds partially funded the $5.4 million payment noted above. The balance of the $34.0 million loan will be disbursed upon rent commencement of our 2711 Technology Drive property, which is anticipated in June 2002.
- •
- We acquired our joint venture partner's 20% interest in the 43,785 square foot operating property located in Montpelier Research Park for $326,000 on February 21, 2002. We simultaneously sold this property and realized a gain of $352,000.
Development
- •
- For the quarter, we signed three leases aggregating 71,693 square feet of development space at 1304 Concourse and 6724 Alexander Bell Drive.
- •
- In March, we sold 1362 Mellon Road, a development property, for a gain of $597,000.
Subsequent Events
- •
- In April, we acquired five buildings totaling 166,625 square feet located in the B/W Corridor for $16.3 million. These buildings are 98.3% occupied. Four of these buildings, totaling 109,449 square feet, contribute to our market concentration in the Howard County perimeter submarket where we now own 19 properties aggregating over 1.2 million square feet.
- •
- We executed two five-year leases totaling 71,243 square feet for 6731 Columbia Gateway Drive in April, increasing this building's leasing to 57.6%. Accordingly, our overall development pre-leasing has improved from 34.9% at year end to 57.0%.
Note: This supplemental information contains "forward looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the financial condition of the business. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ materially. The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the Securities and Exchange Commission.
2
Quarterly Selected Financial Summary Data
(Dollars in thousands)
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total Revenues from Real Estate Operations | $ | 34,499 | $ | 33,460 | $ | 32,050 | $ | 28,711 | $ | 28,851 | |||||||
Net Operating Income from Real Estate Operations | 24,306 | 23,358 | 22,394 | 20,153 | 20,385 | ||||||||||||
EBITDA | 22,919 | 22,731 | 21,411 | 20,471 | 19,490 | ||||||||||||
Net Income before Preferred Dividends | 5,295 | 5,893 | 5,222 | 5,081 | 3,726 | ||||||||||||
Preferred Dividends | (2,533 | ) | (2,533 | ) | (1,830 | ) | (1,613 | ) | (881 | ) | |||||||
Net Income Available to Common Shareholders | $ | 2,762 | $ | 3,360 | $ | 3,392 | $ | 3,468 | $ | 2,845 | |||||||
Funds From Operations (FFO)—Diluted | $ | 11,373 | $ | 11,462 | $ | 11,034 | $ | 10,560 | $ | 10,102 | |||||||
FFO per diluted share | $ | 0.33 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.31 | |||||||
Adjusted FFO—Diluted | $ | 9,541 | $ | 8,560 | $ | 9,106 | $ | 8,591 | $ | 8,296 | |||||||
Adjusted FFO per diluted share | $ | 0.27 | $ | 0.25 | $ | 0.27 | $ | 0.26 | $ | 0.25 | |||||||
Payout Ratios: | |||||||||||||||||
FFO—Diluted(A) | 65.35 | % | 60.80 | % | 62.71 | % | 62.43 | % | 64.87 | % | |||||||
AFFO—Diluted(B) | 77.90 | % | 81.41 | % | 75.98 | % | 76.73 | % | 78.99 | % | |||||||
Total Dividends/Distributions | $ | 9,829 | $ | 9,366 | $ | 8,613 | $ | 8,069 | $ | 7,334 |
- (A)
- Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are deducted to calculate FFO) by FFO diluted.
- (B)
- Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are deducted to calculate AFFO) by AFFO diluted.
Note: The above presentation does not separately report discontinued operations.
3
Quarterly Consolidated Balance Sheets
(Dollars in thousands except per share data)
| 2002 | 2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Assets | ||||||||||||||||||
Investment in real estate: | ||||||||||||||||||
Land—operational | $ | 165,685 | $ | 164,994 | $ | 157,789 | $ | 142,461 | $ | 140,620 | ||||||||
Land—development | 29,544 | 26,751 | 23,507 | 24,488 | 24,683 | |||||||||||||
Construction in progress | 38,140 | 37,493 | 33,860 | 30,066 | 22,228 | |||||||||||||
Buildings and improvements | 755,597 | 738,320 | 682,474 | 624,635 | 615,586 | |||||||||||||
Investment in and advances to unconsolidated real estate joint ventures | 10,740 | 11,047 | 8,005 | 12,009 | 6,877 | |||||||||||||
Less: accumulated depreciation | (57,245 | ) | (51,552 | ) | (46,361 | ) | (41,659 | ) | (37,652 | ) | ||||||||
Net investment in real estate | 942,461 | 927,053 | 859,274 | 792,000 | 772,342 | |||||||||||||
Cash and cash equivalents | 4,250 | 6,640 | 7,881 | 2,962 | 3,806 | |||||||||||||
Restricted cash | 6,977 | 4,947 | 4,116 | 9,633 | 4,468 | |||||||||||||
Accounts receivable, net | 4,909 | 3,805 | 4,720 | 4,855 | 5,519 | |||||||||||||
Investment in and advances to other unconsolidated entities | 2,105 | 2,112 | 1,939 | 2,041 | 2,159 | |||||||||||||
Deferred rent receivable | 11,651 | 11,447 | 10,511 | 9,804 | 9,335 | |||||||||||||
Deferred charges, net | 18,175 | 16,884 | 16,561 | 16,357 | 15,550 | |||||||||||||
Prepaid and other assets | 10,991 | 9,551 | 8,145 | 9,383 | 6,726 | |||||||||||||
Furniture, fixtures and equipment, net of accumulated depreciation | 1,717 | 1,771 | 1,699 | 1,772 | 1,807 | |||||||||||||
Total assets | $ | 1,003,236 | $ | 984,210 | $ | 914,846 | $ | 848,807 | $ | 821,712 | ||||||||
Liabilities and beneficiaries' equity | ||||||||||||||||||
Liabilities: | ||||||||||||||||||
Mortgage loans payable | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | $ | 478,913 | ||||||||
Accounts payable and accrued expenses | 11,355 | 10,674 | 8,923 | 13,361 | 10,889 | |||||||||||||
Rents received in advance and security deposits | 6,805 | 6,567 | 4,319 | 4,023 | 4,236 | |||||||||||||
Dividends/distributions payable | 9,426 | 8,965 | 8,346 | 7,918 | 7,203 | |||||||||||||
Fair value of derivatives | 2,720 | 3,781 | 3,894 | 2,232 | 1,993 | |||||||||||||
Other liabilities | 7,171 | 12,193 | 11,082 | 10,637 | 10,243 | |||||||||||||
Total liabilities | 611,298 | 615,507 | 545,279 | 514,170 | 513,477 | |||||||||||||
Minority interests: | ||||||||||||||||||
Preferred Units in the Operating Partnership | 24,367 | 24,367 | 24,367 | 24,367 | 24,367 | |||||||||||||
Common Units in the Operating Partnership | 81,905 | 80,158 | 80,720 | 78,900 | 79,792 | |||||||||||||
Other consolidated partnerships | 286 | 257 | 231 | 224 | 166 | |||||||||||||
Total minority interests | 106,558 | 104,782 | 105,318 | 103,491 | 104,325 | |||||||||||||
Commitments and contingencies | — | — | — | — | — | |||||||||||||
Beneficiaries' equity: | ||||||||||||||||||
Preferred Shares ($0.01 par value; 10,000,000 authorized); | ||||||||||||||||||
40,693 designated as Series A Convertible Preferred Shares of beneficial interest (no shares issued as of March 31, 2002) | — | — | — | — | — | |||||||||||||
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of March 31, 2002) | 13 | 13 | 13 | 13 | 13 | |||||||||||||
544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of March 31, 2002) | 5 | 5 | 5 | 5 | 5 | |||||||||||||
1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of March 31, 2002) | 11 | 11 | 11 | 11 | — | |||||||||||||
1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of March 31, 2002) | 14 | 14 | 14 | — | — | |||||||||||||
Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 22,938,151 shares issued as of March 31, 2002) | 229 | 208 | 208 | 207 | 206 | |||||||||||||
Treasury Shares, at cost (166,600 shares as of March 31, 2002) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | ||||||||
Additional paid-in capital | 307,500 | 285,362 | 284,834 | 249,618 | 221,683 | |||||||||||||
Cumulative dividends in excess of net income | (16,446 | ) | (14,502 | ) | (13,618 | ) | (12,776 | ) | (12,222 | ) | ||||||||
Value of unearned restricted Common Share grants | (2,739 | ) | (3,275 | ) | (3,229 | ) | (3,042 | ) | (3,042 | ) | ||||||||
Accumulated other comprehensive loss | (1,792 | ) | (2,500 | ) | (2,574 | ) | (1,475 | ) | (1,318 | ) | ||||||||
Total beneficiaries' equity | 285,380 | 263,921 | 264,249 | 231,146 | 203,910 | |||||||||||||
Total beneficiaries' equity and minority interests | 391,938 | 368,703 | 369,567 | 334,637 | 308,235 | |||||||||||||
Total liabilities and beneficiaries' equity | $ | 1,003,236 | $ | 984,210 | $ | 914,846 | $ | 848,807 | $ | 821,712 | ||||||||
4
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)
(Dollars and units in thousands)
| 2002 | 2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 30,538 | $ | 29,957 | $ | 29,011 | $ | 25,960 | $ | 25,619 | ||||||||
Tenant recoveries and other revenue | 3,961 | 3,503 | 3,039 | 2,751 | 3,232 | |||||||||||||
Total Revenues from Real Estate Operations | 34,499 | 33,460 | 32,050 | 28,711 | 28,851 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 4,473 | 4,243 | 4,178 | 3,492 | 3,448 | |||||||||||||
Repairs and maintenance | 3,721 | 3,980 | 3,759 | 3,595 | 3,518 | |||||||||||||
Real estate taxes | 1,999 | 1,879 | 1,719 | 1,471 | 1,500 | |||||||||||||
Total Property Expenses from Real Estate Operations | 10,193 | 10,102 | 9,656 | 8,558 | 8,466 | |||||||||||||
Net Operating Income from Real Estate Operations | 24,306 | 23,358 | 22,394 | 20,153 | 20,385 | |||||||||||||
General and administrative | (2,170 | ) | (1,167 | ) | (1,347 | ) | (1,329 | ) | (1,446 | ) | ||||||||
Equity in income of unconsol. real estate joint ventures | 18 | 27 | 27 | 124 | 30 | |||||||||||||
Earnings from service companies | (90 | ) | (218 | ) | (378 | ) | 143 | (329 | ) | |||||||||
Income from real estate services | 855 | 731 | 715 | 1,380 | 850 | |||||||||||||
EBITDA | 22,919 | 22,731 | 21,411 | 20,471 | 19,490 | |||||||||||||
Interest expense | (8,648 | ) | (8,475 | ) | (8,342 | ) | (7,762 | ) | (8,194 | ) | ||||||||
Series B, E & F Preferred Share dividends | (2,397 | ) | (2,397 | ) | (1,694 | ) | (1,477 | ) | (781 | ) | ||||||||
Amortization of deferred financing costs | (486 | ) | (492 | ) | (397 | ) | (546 | ) | (383 | ) | ||||||||
Income tax (expense) benefit | 40 | 207 | 124 | (44 | ) | 122 | ||||||||||||
Expense (income) associated with options | 14 | — | 5 | — | (61 | ) | ||||||||||||
Depreciation on unconsolidated real estate entities | 64 | 40 | 38 | 70 | (4 | ) | ||||||||||||
Minority interestholders' share of operations | (31 | ) | (23 | ) | (7 | ) | (58 | ) | 4 | |||||||||
Depreciation of corporate FF&E | (102 | ) | (129 | ) | (104 | ) | (94 | ) | (91 | ) | ||||||||
Funds From Operations (FFO)—Diluted | 11,373 | 11,462 | 11,034 | 10,560 | 10,102 | |||||||||||||
Depreciation and other amortization | (6,539 | ) | (5,738 | ) | (5,148 | ) | (4,863 | ) | (4,809 | ) | ||||||||
Gain on property sales | 93 | — | — | 416 | — | |||||||||||||
Loss on early extinguishment of debt | (42 | ) | (7 | ) | — | (99 | ) | (106 | ) | |||||||||
Cumulative effect adjustment for accounting change | — | — | — | — | (263 | ) | ||||||||||||
Expense (income) associated with options | (14 | ) | — | (5 | ) | — | 61 | |||||||||||
Depreciation on unconsolidated real estate entities | (64 | ) | (40 | ) | (38 | ) | (70 | ) | 4 | |||||||||
Minority interestholders' share of operations | 31 | 23 | 7 | 58 | (4 | ) | ||||||||||||
Series B, E & F Preferred Share dividends | 2,397 | 2,397 | 1,694 | 1,477 | 781 | |||||||||||||
Income Before Minority Interests and Preferred Share Dividends | 7,235 | 8,097 | 7,544 | 7,479 | 5,766 | |||||||||||||
Minority Interests: | ||||||||||||||||||
Preferred Units in Operating Partnership | (572 | ) | (571 | ) | (572 | ) | (572 | ) | (572 | ) | ||||||||
Common Units in Operating Partnership | (1,337 | ) | (1,610 | ) | (1,743 | ) | (1,768 | ) | (1,472 | ) | ||||||||
Other consolidated entities | (31 | ) | (23 | ) | (7 | ) | (58 | ) | 4 | |||||||||
Preferred Share dividends | (2,533 | ) | (2,533 | ) | (1,830 | ) | (1,613 | ) | (881 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 2,762 | $ | 3,360 | $ | 3,392 | $ | 3,468 | $ | 2,845 | ||||||||
Funds From Operations (FFO)—Diluted | $ | 11,373 | $ | 11,462 | $ | 11,034 | $ | 10,560 | $ | 10,102 | ||||||||
Straight line rents | (214 | ) | (952 | ) | (717 | ) | (816 | ) | (690 | ) | ||||||||
Non-incremental capital expenditures | (1,618 | ) | (1,950 | ) | (1,211 | ) | (1,153 | ) | (1,116 | ) | ||||||||
Adjusted Funds from Operations—Diluted | $ | 9,541 | $ | 8,560 | $ | 9,106 | $ | 8,591 | $ | 8,296 | ||||||||
Preferred dividends/distributions(1) | 3,105 | 3,104 | 2,402 | 2,185 | 1,453 | |||||||||||||
Common dividends/distributions | 6,724 | 6,262 | 6,211 | 5,884 | 5,881 | |||||||||||||
Total Dividends/Distributions | $ | 9,829 | $ | 9,366 | $ | 8,613 | $ | 8,069 | $ | 7,334 | ||||||||
- (1)
- Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.
- Note:
- The above presentation does not separately report discontinued operations.
5
Quarterly Consolidated Statements of Operations and FFO per Diluted Share
(Shares in thousands)
| 2002 | 2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 0.87 | $ | 0.88 | $ | 0.86 | $ | 0.78 | $ | 0.78 | ||||||||
Tenant recoveries and other revenue | 0.11 | 0.10 | 0.09 | 0.08 | 0.10 | |||||||||||||
Total Revenues from Real Estate Operations | 0.99 | 0.98 | 0.95 | 0.86 | 0.88 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 0.13 | 0.12 | 0.12 | 0.10 | 0.10 | |||||||||||||
Repairs and maintenance | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | |||||||||||||
Real estate taxes | 0.06 | 0.06 | 0.05 | 0.04 | 0.05 | |||||||||||||
Total Property Expenses from Real Estate Operations | 0.29 | 0.30 | 0.29 | 0.26 | 0.26 | |||||||||||||
Net Operating Income from Real Estate Operations | 0.70 | 0.69 | 0.67 | 0.60 | 0.62 | |||||||||||||
General and administrative | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | ||||||||
Equity in income of unconsol. real estate joint ventures | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||
Earnings from service companies | (0.00 | ) | (0.01 | ) | (0.01 | ) | 0.00 | (0.01 | ) | |||||||||
Income from real estate services | 0.02 | 0.02 | 0.02 | 0.04 | 0.03 | |||||||||||||
EBITDA | 0.66 | 0.67 | 0.64 | 0.61 | 0.59 | |||||||||||||
Interest expense | (0.25 | ) | (0.25 | ) | (0.25 | ) | (0.23 | ) | (0.25 | ) | ||||||||
Series B, E & F Preferred Share dividends | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.04 | ) | (0.02 | ) | ||||||||
Amortization of deferred financing costs | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | ||||||||
Income tax (expense) benefit | 0.00 | 0.01 | 0.00 | (0.00 | ) | 0.00 | ||||||||||||
Expense (income) associated with options | 0.00 | — | 0.00 | — | (0.00 | ) | ||||||||||||
Depreciation on unconsolidated real estate entities | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 | ) | ||||||||||||
Minority interestholders' share of operations | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | 0.00 | |||||||||
Depreciation of corporate FF&E | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Funds From Operations (FFO)—Diluted | 0.33 | 0.34 | 0.33 | 0.32 | 0.31 | |||||||||||||
Depreciation and other amortization | (0.19 | ) | (0.17 | ) | (0.15 | ) | (0.15 | ) | (0.15 | ) | ||||||||
Gain on property sales | 0.00 | — | — | 0.01 | — | |||||||||||||
Loss on early extinguishment of debt | (0.00 | ) | (0.00 | ) | — | (0.00 | ) | (0.00 | ) | |||||||||
Cumulative effect adjustment for accounting change | — | — | — | — | (0.01 | ) | ||||||||||||
Expense (income) associated with options | (0.00 | ) | — | (0.00 | ) | — | 0.00 | |||||||||||
Depreciation on unconsolidated real estate entities | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | 0.00 | |||||||||
Minority interestholders' share of operations | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 | ) | ||||||||||||
Series B, E & F Preferred Share dividends | 0.07 | 0.07 | 0.05 | 0.04 | 0.02 | |||||||||||||
Income Before Minority Interests and Preferred Share Dividends | 0.21 | 0.24 | 0.22 | 0.22 | 0.18 | |||||||||||||
Minority Interests: | ||||||||||||||||||
Preferred Units in Operating Partnership | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Common Units in Operating Partnership | (0.04 | ) | (0.05 | ) | (0.05 | ) | (0.05 | ) | (0.04 | ) | ||||||||
Other consolidated entities | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | 0.00 | |||||||||
Preferred Share dividends | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.05 | ) | (0.03 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 0.08 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.09 | ||||||||
Funds From Operations (FFO)—Diluted | $ | 0.33 | $ | 0.34 | $ | 0.33 | $ | 0.32 | $ | 0.31 | ||||||||
Straight line rents | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Non-incremental capital expenditures | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.03 | ) | (0.03 | ) | ||||||||
Adjusted Funds from Operations—Diluted | $ | 0.27 | $ | 0.25 | $ | 0.27 | $ | 0.26 | $ | 0.25 | ||||||||
For FFO Computations: | ||||||||||||||||||
Weighted Average Converted Preferred Shares/Units | 3,618 | 3,618 | 3,618 | 3,618 | 3,299 | |||||||||||||
Weighted Average Common Shares/Units Outstanding | 31,324 | 30,385 | 30,037 | 29,746 | 29,643 | |||||||||||||
Weighted Average Diluted Shares Outstanding | 34,942 | 34,003 | 33,655 | 33,364 | 32,942 | |||||||||||||
6
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues
| 2002 | 2001 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
Revenues | |||||||||||||
Rental revenue | 89 | % | 90 | % | 91 | % | 90 | % | 89 | % | |||
Tenant recoveries and other revenue | 11 | % | 10 | % | 9 | % | 10 | % | 11 | % | |||
Total Revenues from Real Estate Operations | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||
Expenses | |||||||||||||
Property operating | 13 | % | 13 | % | 13 | % | 12 | % | 12 | % | |||
Repairs and maintenance | 11 | % | 12 | % | 12 | % | 13 | % | 12 | % | |||
Real estate taxes | 6 | % | 6 | % | 5 | % | 5 | % | 5 | % | |||
Total Property Expenses from Real Estate Operations | 30 | % | 30 | % | 30 | % | 30 | % | 29 | % | |||
Net Operating Income from Real Estate Operations | 70 | % | 70 | % | 70 | % | 70 | % | 71 | % | |||
General and administrative | (6 | )% | (3 | )% | (4 | )% | (5 | )% | (5 | )% | |||
Equity in income of unconsol. real estate joint ventures | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||
Earnings from service companies | (0 | )% | (1 | )% | (1 | )% | 0 | % | (1 | )% | |||
Income from real estate services | 2 | % | 2 | % | 2 | % | 5 | % | 3 | % | |||
EBITDA | 66 | % | 68 | % | 67 | % | 71 | % | 68 | % | |||
Interest expense | (25 | )% | (25 | )% | (26 | )% | (27 | )% | (28 | )% | |||
Series B, E & F Preferred Share dividends | (7 | )% | (7 | )% | (5 | )% | (5 | )% | (3 | )% | |||
Amortization of deferred financing costs | (1 | )% | (1 | )% | (1 | )% | (2 | )% | (1 | )% | |||
Income tax (expense) benefit | 0 | % | 1 | % | 0 | % | (0 | )% | 0 | % | |||
Expense (income) associated with options | 0 | % | 0 | % | 0 | % | 0 | % | (0 | )% | |||
Depreciation on unconsolidated real estate entities | 0 | % | 0 | % | 0 | % | 0 | % | (0 | )% | |||
Minority interestholders' share of operations | (0 | )% | (0 | )% | (0 | )% | (0 | )% | 0 | % | |||
Depreciation of corporate FF&E | (0 | )% | (0 | )% | (0 | )% | (0 | )% | (0 | )% | |||
Funds From Operations (FFO)—Diluted | 33 | % | 34 | % | 34 | % | 37 | % | 35 | % | |||
Depreciation and other amortization | (19 | )% | (17 | )% | (16 | )% | (17 | )% | (17 | )% | |||
Gain on property sales | 0 | % | 0 | % | 0 | % | 1 | % | 0 | % | |||
Loss on early extinguishment of debt | (0 | )% | (0 | )% | 0 | % | (0 | )% | (0 | )% | |||
Cumulative effect adjustment for accounting change | 0 | % | 0 | % | 0 | % | 0 | % | (1 | )% | |||
Expense (income) associated with options | (0 | )% | 0 | % | (0 | )% | 0 | % | 0 | % | |||
Depreciation on unconsolidated real estate entities | (0 | )% | (0 | )% | (0 | )% | (0 | )% | 0 | % | |||
Minority interestholders' share of operations | 0 | % | 0 | % | 0 | % | 0 | % | (0 | )% | |||
Series B, E & F Preferred Share dividends | 7 | % | 7 | % | 5 | % | 5 | % | 3 | % | |||
Income Before Minority Interests and Preferred Share Dividends | 21 | % | 24 | % | 24 | % | 26 | % | 20 | % | |||
Minority Interests: | |||||||||||||
Preferred Units in Operating Partnership | (2 | )% | (2 | )% | (2 | )% | (2 | )% | (2 | )% | |||
Common Units in Operating Partnership | (4 | )% | (5 | )% | (5 | )% | (6 | )% | (5 | )% | |||
Other consolidated entities | (0 | )% | (0 | )% | (0 | )% | (0 | )% | 0 | % | |||
Preferred Share dividends | (7 | )% | (8 | )% | (6 | )% | (6 | )% | (3 | )% | |||
Net Income Available to Common Shareholders | 8 | % | 10 | % | 11 | % | 12 | % | 10 | % | |||
Funds From Operations (FFO)—Diluted | 33 | % | 34 | % | 34 | % | 37 | % | 35 | % | |||
Straight line rents | (1 | )% | (3 | )% | (2 | )% | (3 | )% | (2 | )% | |||
Non-incremental capital expenditures | (5 | )% | (6 | )% | (4 | )% | (4 | )% | (4 | )% | |||
Adjusted Funds from Operations—Diluted | 28 | % | 26 | % | 28 | % | 30 | % | 29 | % | |||
7
Quarterly Equity Analysis
(Amounts in thousands, except per share data, share prices and ratios)
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Common Equity—End of Quarter | |||||||||||||||||
Common Shares(1) | 22,772 | 20,648 | 20,590 | 20,526 | 20,429 | ||||||||||||
Common Units | 9,607 | 9,607 | 9,617 | 9,307 | 9,388 | ||||||||||||
Total | 32,379 | 30,255 | 30,207 | 29,833 | 29,817 | ||||||||||||
Convertible Preferred Equity—End of Quarter | |||||||||||||||||
Convertible Series A Preferred Shares Outstanding | n/a | 0 | 0 | 0 | 0 | ||||||||||||
Conversion Ratio | n/a | 1.8748 | 1.8748 | 1.8748 | 1.8748 | ||||||||||||
Common Shares Issued Assuming Conversion | n/a | 0 | 0 | 0 | 0 | ||||||||||||
Preferred Share Liquidation Preference | n/a | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||||||
Convertible Series D Preferred Shares Outstanding(2) | 544 | 544 | 544 | 544 | 544 | ||||||||||||
Conversion Ratio | 2.2000 | 2.2000 | 2.2000 | 2.2000 | 2.2000 | ||||||||||||
Common Shares Issued Assuming Conversion | 1,197 | 1,197 | 1,197 | 1,197 | 1,197 | ||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Convertible Series C Preferred Units Outstanding | 1,017 | 1,017 | 1,017 | 1,017 | 1,017 | ||||||||||||
Conversion Ratio | 2.3810 | 2.3810 | 2.3810 | 2.3810 | 2.3810 | ||||||||||||
Common Units Issued Assuming Conversion | 2,421 | 2,421 | 2,421 | 2,421 | 2,421 | ||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Perpetual Preferred Equity—End of Quarter | |||||||||||||||||
Redeemable Series B Shares Outstanding | 1,250 | 1,250 | 1,250 | 1,250 | 1,250 | ||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Redeemable Series E Shares Outstanding(3) | 1,150 | 1,150 | 1,150 | 1,150 | n/a | ||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | n/a | ||||||||
Redeemable Series F Shares Outstanding(4) | 1,425 | 1,425 | 1,425 | n/a | n/a | ||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | n/a | n/a | |||||||||
Weighted Average Shares: | |||||||||||||||||
Weighted Average Common Shares Outstanding | 20,889 | 20,186 | 20,141 | 20,077 | 19,982 | ||||||||||||
Weighted Average Preferred Shares Outstanding Assuming Conversion | 1,197 | 1,197 | 1,197 | 1,197 | 878 | ||||||||||||
Weighted Average Dilutive Options | 828 | 590 | 481 | 334 | 273 | ||||||||||||
Weighted Average Common Units | 9,607 | 9,609 | 9,415 | 9,335 | 9,388 | ||||||||||||
Weighted Average Preferred Units Assuming Conversion | 2,421 | 2,421 | 2,421 | 2,421 | 2,421 | ||||||||||||
Weighted Avg. Shares/Units Outstanding Assuming Conversion of Preferred Shares/Units | 34,942 | 34,003 | 33,655 | 33,364 | 32,942 | ||||||||||||
Common Shares Trading Volume | |||||||||||||||||
Average Daily Volume (Shares) | 116 | 23 | 30 | 24 | 21 | ||||||||||||
Average Daily Volume (Dollars in thousands) | $ | 1,460.22 | $ | 261.76 | $ | 313.45 | $ | 237.66 | $ | 198.00 | |||||||
As a Percentage of Common Shares | 0.6 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||
Common Share Price Range | |||||||||||||||||
Quarterly High | $ | 13.20 | $ | 12.71 | $ | 11.50 | $ | 10.60 | $ | 9.98 | |||||||
Quarterly Low | $ | 11.62 | $ | 10.75 | $ | 9.86 | $ | 9.36 | $ | 9.03 | |||||||
Quarterly Average | $ | 12.54 | $ | 11.50 | $ | 10.61 | $ | 10.10 | $ | 9.59 | |||||||
End of Quarter | $ | 13.10 | $ | 11.87 | $ | 10.90 | $ | 10.00 | $ | 9.51 | |||||||
Capitalization | |||||||||||||||||
Liquidation Value of Preferred Shares/Units | $ | 134,642 | $ | 134,642 | $ | 134,642 | $ | 99,017 | $ | 70,267 | |||||||
Market Value of Common Shares/Units | 424,165 | 359,127 | 329,256 | 298,330 | 283,560 | ||||||||||||
Total Equity Market Capitalization | $ | 558,806 | $ | 493,768 | $ | 463,898 | $ | 397,347 | $ | 353,826 | |||||||
Total Debt | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | $ | 478,913 | |||||||
Total Market Capitalization | $ | 1,132,627 | $ | 1,067,095 | $ | 972,613 | $ | 873,346 | $ | 832,739 | |||||||
Debt to Total Market Capitalization | 50.7 | % | 53.7 | % | 52.3 | % | 54.5 | % | 57.5 | % | |||||||
Debt to Undepreciated Book Value of Real Estate Assets | 57.4 | % | 58.6 | % | 56.2 | % | 57.1 | % | 59.1 | % |
- (1)
- Net of 166,600 treasury shares as of March 31, 2002. Includes 2,084,828 common shares issued on March 5, 2002.
- (2)
- We issued 544,000 Convertible Series D preferred shares on January 25, 2001.
- (3)
- We issued 1,150,000 Cumulative Redeemable Series E preferred shares on April 6, 2001.
- (4)
- We issued 1,425,000 Cumulative Redeemable Series F preferred shares on September 13, 2001.
8
Quarterly Valuation Analysis
(Dollars in thousands except per share data and ratios)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
PRICING MULTIPLES | ||||||||||||||||
NOI Multiple (Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI | 11.70 | x | 11.00 | x | 10.93 | x | 10.82 | x | 10.17 | x | ||||||
EBITDA Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA | 12.41 | x | 11.30 | x | 11.43 | x | 10.66 | x | 10.64 | x | ||||||
FFO Multiple (Quarter End Common Share Price / Ann. FFO—diluted) | 10.06 | x | 8.80 | x | 8.31 | x | 7.90 | x | 7.75 | x | ||||||
AFFO Multiple (Quarter End Common Share Price / Ann. AFFO—diluted) | 11.99 | x | 11.79 | x | 10.07 | x | 9.71 | x | 9.44 | x | ||||||
NOI Yield (Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 8.54 | % | 9.09 | % | 9.15 | % | 9.24 | % | 9.83 | % | ||||||
EBITDA Yield (Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 8.06 | % | 8.85 | % | 8.75 | % | 9.38 | % | 9.40 | % | ||||||
FFO Yield (Ann. FFO / Quarter End Common Share Price) | 9.94 | % | 11.36 | % | 12.03 | % | 12.66 | % | 12.90 | % | ||||||
AFFO Yield (Ann. AFFO / Quarter End Common Share Price) | 8.34 | % | 8.48 | % | 9.93 | % | 10.30 | % | 10.59 | % | ||||||
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)(1) | $ | 145.61 | $ | 137.76 | $ | 133.34 | $ | 129.22 | $ | 124.70 | ||||||
RETURNS | ||||||||||||||||
Yield on Real Estate Owned—NOI (Ann. NOI / Avg. Adjusted Gross Real Estate Investment)(2) | 10.65 | % | 10.71 | % | 11.12 | % | 10.54 | % | 10.85 | % | ||||||
Yield on Real Estate Owned—EBITDA (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2) | 10.04 | % | 10.42 | % | 10.63 | % | 10.71 | % | 10.37 | % | ||||||
Return on Book Value of Average Equity & Minority Interest (Ann. EBTDA / Avg. Equity & Minority Interest) | 15.01 | % | 15.45 | % | 14.85 | % | 15.82 | % | 14.87 | % |
- (1)
- Excludes square footage of assets under development, under construction or held in a joint venture.
- (2)
- Excludes land-development, construction in progress and investment in development real estate joint ventures as these assets are not yet income generating.
9
Quarterly Debt Analysis
(Dollars in thousands)
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Debt Outstanding | |||||||||||||||||
Mortgage Loans | $ | 462,287 | $ | 445,951 | $ | 475,163 | $ | 409,670 | $ | 356,872 | |||||||
Construction Loans | 17,534 | 17,376 | 15,852 | 13,099 | 18,950 | ||||||||||||
Revolving Credit Facility | �� | — | — | — | — | 29,091 | |||||||||||
Secured Revolving Credit Facility | 94,000 | 110,000 | 17,700 | 53,230 | 74,000 | ||||||||||||
$ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | $ | 478,913 | ||||||||
Average Outstanding Balance | |||||||||||||||||
Mortgage Loans | $ | 452,987 | $ | 428,231 | $ | 446,784 | $ | 377,222 | $ | 344,023 | |||||||
Construction Loans | 17,431 | 16,648 | 15,502 | 10,436 | 26,967 | ||||||||||||
Revolving Credit Facility | — | — | — | 28,445 | 29,091 | ||||||||||||
Secured Revolving Credit Facility | 108,581 | 89,110 | 52,548 | 59,123 | 75,507 | ||||||||||||
$ | 578,999 | $ | 533,989 | $ | 514,834 | $ | 475,226 | $ | 475,588 | ||||||||
Interest Rate Structure | |||||||||||||||||
Fixed | $ | 340,037 | $ | 326,701 | $ | 328,029 | $ | 305,431 | $ | 240,501 | |||||||
Variable | 83,784 | 96,626 | — | — | 13,412 | ||||||||||||
Variable Subject to Interest Rate Protection(1-4) | 150,000 | 150,000 | 180,686 | 170,568 | 225,000 | ||||||||||||
$ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | $ | 478,913 | ||||||||
% of Fixed Rate Loans(A) | 59.26 | % | 56.98 | % | 64.48 | % | 64.17 | % | 50.22 | % | |||||||
% of Variable Rate Loans | 40.74 | % | 43.02 | % | 35.52 | % | 35.83 | % | 49.78 | % | |||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||
Average Interest Rates | |||||||||||||||||
Mortgage & Construction Loans | 6.37 | % | 6.71 | % | 7.12 | % | 7.31 | % | 7.44 | % | |||||||
Revolving Credit Facility | n/a | n/a | n/a | 6.71 | % | 7.31 | % | ||||||||||
Secured Revolving Credit Facility | 7.21 | % | 7.32 | % | 6.73 | % | 6.93 | % | 7.85 | % | |||||||
Total Weighted Average | 6.52 | % | 6.85 | % | 7.08 | % | 7.22 | % | 7.50 | % | |||||||
Debt Ratios | |||||||||||||||||
Debt to Total Market Capitalization | 50.7 | % | 53.7 | % | 52.3 | % | 54.5 | % | 57.5 | % | |||||||
Debt to Undepreciated Book Value of Real Estate Assets | 57.4 | % | 58.6 | % | 56.2 | % | 57.1 | % | 59.1 | % | |||||||
Coverage Ratios (excluding capitalized interest) | |||||||||||||||||
Interest Coverage—NOI (NOI / Interest) | 2.81 | x | 2.76 | x | 2.68 | x | 2.60 | x | 2.49 | x | |||||||
Interest Coverage—EBITDA (EBITDA / Interest) | 2.65 | x | 2.68 | x | 2.57 | x | 2.64 | x | 2.38 | x | |||||||
Interest Coverage—EBITDA—YTD (EBITDA / Interest—Year-to-date) | 2.65 | x | 2.57 | x | 2.53 | x | 2.50 | x | 2.38 | x | |||||||
Debt Service Coverage—NOI (NOI / (Interest + Principal Amortization)) | 2.43 | x | 2.38 | x | 2.32 | x | 2.28 | x | 2.23 | x | |||||||
Debt Service Coverage—EBITDA (EBITDA / (Interest + Principal Amortization)) | 2.29 | x | 2.31 | x | 2.22 | x | 2.32 | x | 2.13 | x | |||||||
Fixed Charge Coverage—NOI (NOI / (Interest + Preferred Distribution)) | 2.07 | x | 2.02 | x | 2.08 | x | 2.03 | x | 2.11 | x | |||||||
Fixed Charge Coverage—EBITDA (EBITDA / (Interest + Preferred Distribution)) | 1.95 | x | 1.96 | x | 1.99 | x | 2.06 | x | 2.02 | x |
- (A)
- Excludes interest rate protection agreements.
- (1)
- We purchased a $50 million 2-year cap on LIBOR at a rate of 7.7% which expires May 31, 2002.
- (2)
- We purchased a $50 million 1-year cap on LIBOR at a rate of 7.0% which expired October 13, 2001.
- (3)
- We purchased a $25 million 1-year cap on LIBOR at a rate of 7.0% which expired October 13, 2001.
- (4)
- We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% over a two-year period which expires January 2, 2003.
10
Quarterly Operating Ratios
(Dollars in thousands except per share data and ratios)
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
OPERATING RATIOS | |||||||||||||||||
NOI as a % of Real Estate Revenues | |||||||||||||||||
(NOI / (Rental Revenue + Oper. Expense Reimb.)) | 70.45 | % | 69.81 | % | 69.87 | % | 70.19 | % | 70.66 | % | |||||||
EBITDA as a % of Real Estate Revenues | |||||||||||||||||
(EBITDA / (Rental Revenue + Oper. Expense Reimb.)) | 66.43 | % | 67.93 | % | 66.80 | % | 71.30 | % | 67.55 | % | |||||||
G&A as a % of Real Estate Revenues | |||||||||||||||||
(G&A / (Rental Revenue + Oper. Expense Reimb.)) | 6.29 | % | 3.49 | % | 4.20 | % | 4.63 | % | 5.01 | % | |||||||
G&A as a % of EBITDA | |||||||||||||||||
(G&A / EBITDA) | 9.47 | % | 5.13 | % | 6.29 | % | 6.49 | % | 7.42 | % | |||||||
Quarter end occupancy for operating portfolio | 93.92 | % | 96.07 | % | 97.18 | % | 96.92 | % | 96.95 | % | |||||||
Quarter end % leased for operating portfolio | 94.70 | % | 96.59 | % | 97.57 | % | 97.60 | % | 98.39 | % | |||||||
Non-Incremental Capital Expenditures | $ | 1,618 | $ | 1,950 | $ | 1,211 | $ | 1,153 | $ | 1,116 | |||||||
Non-Incremental Capital Expenditures per average square foot | $ | 0.21 | $ | 0.26 | $ | 0.17 | $ | 0.17 | $ | 0.17 | |||||||
Non-Incremental Capital Expenditures per Diluted Share | $ | 0.05 | $ | 0.06 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||||
Non-Incremental Capital Expenditures as a % of NOI | 6.66 | % | 8.35 | % | 5.41 | % | 5.72 | % | 5.47 | % |
11
Quarterly Dividend Analysis
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Common Share Dividends | |||||||||||||||||
Dividends per share/unit | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.20 | |||||||
Increase over prior quarter | 0.0 | % | 0.0 | % | 5.0 | % | 0.0 | % | 0.0 | % | |||||||
Increase over prior year | 5.0 | % | 5.0 | % | 5.0 | % | 5.3 | % | 5.3 | % | |||||||
Common Dividend Payout Ratios | |||||||||||||||||
Payout—FFO—Diluted ((Dividend + Distributions)/FFO) | 65.3 | % | 60.8 | % | 62.7 | % | 62.4 | % | 64.9 | % | |||||||
Payout—AFFO—Diluted (Dividend /FAD) | 77.9 | % | 81.4 | % | 76.0 | % | 76.7 | % | 79.0 | % | |||||||
Dividend Coverage—FFO—Diluted (FFO /dividends) | 1.53 | x | 1.64 | x | 1.59 | x | 1.60 | x | 1.54 | x | |||||||
Dividend Coverage—AFFO—Diluted (AFFO /dividends) | 1.28 | x | 1.23 | x | 1.32 | x | 1.30 | x | 1.27 | x | |||||||
Common Dividend Yields | |||||||||||||||||
Dividend Yield | 6.41 | % | 7.08 | % | 7.71 | % | 8.00 | % | 8.41 | % | |||||||
Series C Preferred Unit Distributions | |||||||||||||||||
Preferred Unit Distributions Per Share | $ | 0.56250 | $ | 0.56250 | $ | 0.56250 | $ | 0.56250 | $ | 0.56250 | |||||||
Preferred Unit Distributions Yield | 9.00 | % | 9.00 | % | 9.00 | % | 9.00 | % | 9.00 | % | |||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Series A Preferred Share Dividends(1) | |||||||||||||||||
Preferred Share Dividends Per Share | n/a | $ | 0.34375 | $ | 0.34375 | $ | 0.34375 | $ | 0.34375 | ||||||||
Preferred Share Dividend Yield | n/a | 5.50 | % | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||
Quarter End Liquidation Preference | n/a | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||||||
Series B Preferred Share Dividends | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.62500 | $ | 0.62500 | $ | 0.62500 | $ | 0.62500 | $ | 0.62500 | |||||||
Preferred Share Dividend Yield | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | 10.00 | % | |||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Series D Preferred Share Dividends(2) | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.25000 | $ | 0.25000 | $ | 0.25000 | $ | 0.25000 | $ | 0.25000 | |||||||
Preferred Share Dividend Yield | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | |||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Series E Preferred Share Dividends(3) | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.64063 | $ | 0.64063 | $ | 0.64063 | $ | 0.64063 | n/a | ||||||||
Preferred Share Dividend Yield | 10.25 | % | 10.25 | % | 10.25 | % | 10.25 | % | n/a | ||||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | n/a | ||||||||
Series F Preferred Share Dividends(4) | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | n/a | n/a | |||||||||
Preferred Share Dividend Yield | 9.875 | % | 9.875 | % | 9.875 | % | n/a | n/a | |||||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | n/a | n/a |
- (1)
- On March 5, 2002, Constellation converted its Series A Preferred Share and then sold its entire common share ownership position.
- (2)
- We issued 544,000 of Series D Convertible Preferred Shares on January 25, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.1833 per share.
- (3)
- We issued 1,150,000 of Series E Cumulative Redeemable Preferred Shares on April 6, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.6050 per share.
- (4)
- We issued 1,425,000 of Series F Cumulative Redeemable Preferred Shares on September 13, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.123435 per share.
12
Investor Composition and Analyst Coverage
(as of March 31, 2002)
SHAREHOLDER CLASSIFICATION | Common Shares | Common Units | As if Converted Preferred Shares / Units | Total | Fully Diluted Ownership % of Total | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Insiders | 1,150,278 | 7,831,137 | — | 8,981,415 | 24.95 | % | |||||
Institutional Ownership | 8,388,815 | — | 3,617,472 | 12,006,287 | 33.35 | % | |||||
Other / Retail | 13,232,457 | 1,776,222 | — | 15,008,679 | 41.69 | % | |||||
22,771,550 | 9,607,359 | 3,617,472 | 35,996,381 | 100.00 | % | ||||||
RESEARCH COVERAGE | March 31, 2002 | December 31, 2001 | September 30, 2001 | June 30, 2001 | March 31, 2001 | |||||
---|---|---|---|---|---|---|---|---|---|---|
A. G. Edwards | x | x | x | x | x | |||||
BB&T Capital Markets | x | n/a | n/a | n/a | n/a | |||||
Credit Suisse First Boston | x | x | x | x | x | |||||
Deutsche Banc Alex. Brown | x | x | x | x | x | |||||
Ferris, Baker Watts, Incorporated | x | x | x | x | x | |||||
Janney Montgomery Scott | n/a | x | x | x | x | |||||
Legg Mason Wood Walker, Inc. | x | x | x | x | x | |||||
McDonald Investments | x | x | x | x | x |
Source: Institutional ownership was obtained from filed Forms 13(f) as of December 31, 2001 per Vickers Stock Research Corporation. For the March 5, 2002 common share offering, an institutional ownership analysis was provided by the joint lead managers.
13
Debt Maturity Schedule—March 31, 2002
(Dollars in thousands)
| Mortgages | Construction Loans(1) | | | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year of Maturity | Annual Amortization of Monthly Payments | Due on Maturity | Annual Amortization of Monthly Payments | Due on Maturity(2) | $150,000 Secured Revolving Credit Facility(3) | Total Scheduled Payments | ||||||||||||
April - Dec. 2002 | $ | 4,490 | $ | 50,000 | $ | 119 | $ | — | $ | — | $ | 54,609 | ||||||
2003 | 6,493 | 25,121 | 172 | 17,243 | — | 49,029 | ||||||||||||
2004 | 7,137 | 46,315 | — | — | — | 53,452 | ||||||||||||
2005 | 6,899 | 41,567 | — | — | 94,000 | 142,466 | ||||||||||||
2006 | 6,446 | 59,975 | — | — | — | 66,421 | ||||||||||||
2007 | 5,417 | 20,377 | — | — | — | 25,794 | ||||||||||||
2008 | 3,677 | 142,737 | — | — | — | 146,414 | ||||||||||||
2009 | 447 | 35,189 | — | — | — | 35,636 | ||||||||||||
$ | 41,006 | $ | 421,281 | $ | 291 | $ | 17,243 | $ | 94,000 | $ | 573,821 | |||||||
Notes:
- (1)
- The construction loan balances as of March 31, 2002 represent the outstanding balances as of that date.
- (2)
- We have the right to extend construction loans of $10,489 and $7,045, for a one-year period subject to certain conditions, upon maturity in July 2002. The above table reflects the maturities in 2003, as if the loans had been extended.
- (3)
- We have the right to extend the Secured Revolving Credit Facility for a one-year period, subject to certain conditions, upon maturity in March 2004. The extended maturity date has been presented above.
We have obtained interest rate protection agreements as follows:
$50 million cap on thirty-day LIBOR at 7.7% expiring in May 2002.
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.
14
Property Summary by Region—March 31, 2002
Operating Property Count | | Owned or Joint Venture (JV) | Submarket | State | Year Built or Renovated | Single Story (S) or Multi-story (M) | Total Operational Square Feet | Total Square Feet Under Development | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Office Properties Baltimore /Washington Corridor | ||||||||||||||||
1 | 2730 Hercules Road | Owned | BWI Airport | MD | 1990 | M | 240,336 | |||||||||
2 | 132 National Business Parkway | Owned | BWI Airport | MD | 2000 | M | 118,456 | |||||||||
3 | 2721 Technology Drive (221 NBP) | Owned | BWI Airport | MD | 2000 | M | 118,093 | |||||||||
4 | 2701 Technology Drive (201 NBP) | Owned | BWI Airport | MD | 2001 | M | 91,643 | 25,807 | ||||||||
5 | 1306 Concourse Drive | Owned | BWI Airport | MD | 1990 | M | 114,046 | |||||||||
6 | 1304 Concourse Drive | Owned | BWI Airport | MD | 2002 | M | 10,657 | 92,307 | ||||||||
7 | 870-880 Elkridge Landing Road | Owned | BWI Airport | MD | 1981 | M | 97,161 | |||||||||
8 | 900 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 97,139 | |||||||||
9 | 1199 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 96,636 | |||||||||
10 | 920 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 96,566 | |||||||||
11 | 134 National Business Parkway | Owned | BWI Airport | MD | 1999 | M | 93,482 | |||||||||
12 | 133 National Business Parkway | Owned | BWI Airport | MD | 1997 | M | 88,666 | |||||||||
13 | 141 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 86,964 | |||||||||
14 | 135 National Business Parkway | Owned | BWI Airport | MD | 1998 | M | 86,863 | |||||||||
15 | 1302 Concourse Drive | Owned | BWI Airport | MD | 1996 | M | 84,607 | |||||||||
16 | 7467 Ridge Road | Owned | BWI Airport | MD | 1990 | M | 73,756 | |||||||||
17 | 881 Elkridge Landing Road | Owned | BWI Airport | MD | 1986 | M | 73,572 | |||||||||
18 | 7240 Parkway Drive | Owned | BWI Airport | MD | 1985 | M | 74,156 | |||||||||
19 | 1099 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 70,938 | |||||||||
20 | 131 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 68,906 | |||||||||
21 | 1190 Winterson Road | Owned | BWI Airport | MD | 1987 | M | 68,567 | |||||||||
22 | 849 International Drive | Owned | BWI Airport | MD | 1988 | M | 68,397 | |||||||||
23 | 911 Elkridge Landing Road | Owned | BWI Airport | MD | 1985 | M | 68,296 | |||||||||
24 | 1201 Winterson Road | Owned | BWI Airport | MD | 1985 | M | 67,903 | |||||||||
25 | 999 Corporate Boulevard | Owned | BWI Airport | MD | 2000 | M | 67,351 | |||||||||
26 | 7318 Parkway Drive | Owned | BWI Airport | MD | 1984 | S | 59,204 | |||||||||
27 | 900 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
28 | 930 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
29 | 901 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 57,130 | |||||||||
30 | 891 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 56,489 | |||||||||
31 | 921 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 54,057 | |||||||||
32 | 939 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 53,031 | |||||||||
33 | 938 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 52,988 | |||||||||
34 | 940 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 51,704 | |||||||||
35 | 800 International Drive | Owned | BWI Airport | MD | 1988 | S | 50,979 | |||||||||
36 | 1340 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 46,400 | |||||||||
37 | 7321 Parkway Drive | Owned | BWI Airport | MD | 1984 | S | 39,822 | |||||||||
38 | 1334 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 37,565 | |||||||||
39 | 1331 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 29,936 | |||||||||
40 | 1350 Dorsey Road | Owned | BWI Airport | MD | 1989 | S | 19,992 | |||||||||
41 | 1344 Ashton Road | Owned | BWI Airport | MD | 1989 | M | 16,865 | |||||||||
42 | 1341 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 15,841 | |||||||||
43 | 1343 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 9,962 | |||||||||
44 | 114 National Business Parkway | Owned | BWI Airport | MD | 2002 | S | 9,717 | |||||||||
2711 Technology Drive (211 NBP) | JV | BWI Airport | MD | M | 150,000 | |||||||||||
Subtotal (continued on next page) | 2,999,119 | 268,114 |
15
Property Summary by Region—March 31, 2002 (Continued)
Operating Property Count | | Owned or Joint Venture (JV) | Submarket | State | Year Built or Renovated | Single Story (S) or Multi-story (M) | Total Operational Square Feet | Total Square Feet Under Development | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Subtotal (continued from prior page) | 2,999,119 | 268,114 | ||||||||||||||
45 | 1615 and 1629 Thames Street | Owned | Baltimore City | MD | 1989 | M | 103,683 | |||||||||
46 | 9690 Deereco Road | Owned | North Baltimore Co. | MD | 1988 | M | 133,737 | |||||||||
47 | 375 West Padonia Road | Owned | North Baltimore Co. | MD | 1986 | M | 100,804 | |||||||||
48 | 7200 Riverwood Drive | Owned | Howard Co. Perimeter | MD | 1986 | S | 160,000 | |||||||||
49 | 9140 Route 108 | Owned | Howard Co. Perimeter | MD | 1974/1985 | S | 150,000 | |||||||||
50 | 6940 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1999 | M | 108,737 | |||||||||
51 | 6950 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1998 | M | 107,778 | |||||||||
52 | 7067 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 82,953 | |||||||||
53 | 6750 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 78,460 | |||||||||
54 | 6700 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 75,635 | |||||||||
55 | 6740 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1992 | M | 61,957 | |||||||||
56 | 8815 Centre Park Drive | Owned | Howard Co. Perimeter | MD | 1987 | M | 53,782 | |||||||||
57 | 6716 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1990 | M | 52,002 | |||||||||
58 | 7065 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 38,560 | |||||||||
59 | 6760 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1991 | M | 37,248 | |||||||||
60 | 7063 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 36,936 | |||||||||
61 | 6708 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 35,040 | |||||||||
62 | 7061 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | M | 29,604 | |||||||||
6731 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | M | 123,743 | |||||||||||
Robert Fulton Drive—Phase I | JV | Howard Co. Perimeter | MD | M | 105,850 | |||||||||||
6724 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | M | 28,312 | |||||||||||
63 | 14502 Greenview Drive | Owned | Laurel | MD | 1988 | M | 71,873 | |||||||||
64 | 14504 Greenview Drive | Owned | Laurel | MD | 1985 | M | 69,194 | |||||||||
4260 Forbes Boulevard | JV | Lanham | MD | S | 54,692 | |||||||||||
65 | 6009 - 6011 Oxon Hill Road | Owned | Southern Prince George's County | MD | 1990 | M | 181,768 | |||||||||
Total Baltimore / Washington Corridor: | 4,768,870 | 580,711 | ||||||||||||||
Greater Philadelphia | ||||||||||||||||
1 | 753 Jolly Road | Owned | Blue Bell | PA | 1960/1992 - 94 | M | 419,472 | |||||||||
2 | 785 Jolly Road | Owned | Blue Bell | PA | 1970/1996 | M | 219,065 | |||||||||
3 | 760 Jolly Road | Owned | Blue Bell | PA | 1974/1994 | M | 208,854 | |||||||||
4 | 751 Jolly Road | Owned | Blue Bell | PA | 1966/1991 | M | 112,958 | |||||||||
Total Greater Philadelphia: | 960,349 | — | ||||||||||||||
16
Property Summary by Region—March 31, 2002 (Continued)
Operating Property Count | | Owned or Joint Venture (JV) | Submarket | State | Year Built or Renovated | Single Story (S) or Multi-story (M) | Total Operational Square Feet | Total Square Feet Under Development | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Greater Harrisburg | ||||||||||||||||
1 | 2605 Interstate Drive | Owned | East Shore | PA | 1990 | M | 81,187 | |||||||||
2 | 6345 Flank Drive | Owned | East Shore | PA | 1989 | S | 69,443 | |||||||||
3 | 6340 Flank Drive | Owned | East Shore | PA | 1988 | S | 68,200 | |||||||||
4 | 2601 Market Place | Owned | East Shore | PA | 1989 | M | 67,743 | |||||||||
5 | 6400 Flank Drive | Owned | East Shore | PA | 1992 | S | 52,439 | |||||||||
6 | 6360 Flank Drive | Owned | East Shore | PA | 1988 | S | 46,500 | |||||||||
7 | 6385 Flank Drive | Owned | East Shore | PA | 1995 | S | 32,800 | |||||||||
8 | 6380 Flank Drive | Owned | East Shore | PA | 1991 | S | 32,000 | |||||||||
9 | 6405 Flank Drive | Owned | East Shore | PA | 1991 | S | 32,000 | |||||||||
10 | 95 Shannon Road | Owned | East Shore | PA | 1999 | S | 21,976 | |||||||||
11 | 75 Shannon Road | Owned | East Shore | PA | 1999 | S | 20,887 | |||||||||
12 | 6375 Flank Drive | Owned | East Shore | PA | 2000 | S | 19,783 | |||||||||
13 | 85 Shannon Road | Owned | East Shore | PA | 1999 | S | 12,863 | |||||||||
14 | 5035 Ritter Road | Owned | West Shore | PA | 1988 | S | 56,556 | |||||||||
15 | 5070 Ritter Road—Building A | Owned | West Shore | PA | 1989 | S | 32,309 | |||||||||
16 | 5070 Ritter Road—Building B | Owned | West Shore | PA | 1989 | S | 28,000 | |||||||||
Total Greater Harrisburg: | 674,686 | — | ||||||||||||||
Northern/Central New Jersey | ||||||||||||||||
1 | 431 Ridge Road | Owned | Exit 8A—Cranbury | NJ | 1958/1998 | S | 170,000 | |||||||||
2 | 429 Ridge Road | Owned | Exit 8A—Cranbury | NJ | 1966/1996 | M | 142,385 | |||||||||
3 | 68 Culver Road | Owned | Exit 8A—Cranbury | NJ | 2000 | M | 57,280 | |||||||||
4 | 104 Interchange Plaza | Owned | Exit 8A—Cranbury | NJ | 1990 | M | 47,677 | |||||||||
5 | 101 Interchange Plaza | Owned | Exit 8A—Cranbury | NJ | 1985 | M | 43,621 | |||||||||
6 | 47 Commerce | Owned | Exit 8A—Cranbury | NJ | 1992/1998 | S | 41,398 | |||||||||
7 | 437 Ridge Road | Owned | Exit 8A—Cranbury | NJ | 1962/1996 | S | 30,000 | |||||||||
8 | 7 Centre Drive | Owned | Exit 8A—Cranbury | NJ | 1989 | S | 19,466 | |||||||||
9 | 8 Centre Drive | Owned | Exit 8A—Cranbury | NJ | 1986 | S | 16,199 | |||||||||
10 | 2 Centre Drive | Owned | Exit 8A—Cranbury | NJ | 1989 | S | 16,132 | |||||||||
11 | 4301 Route 1 | Owned | Monmouth Junction | NJ | 1986 | M | 61,300 | |||||||||
12 | 695 Route 46 | Owned | Wayne | NJ | 1990 | M | 157,394 | |||||||||
13 | 710 Route 46 | Owned | Wayne | NJ | 1985 | M | 101,120 | |||||||||
Total Northern / Central New Jersey: | 903,972 | — | ||||||||||||||
Northern Virginia | ||||||||||||||||
1 | 15000 Conference Center Drive | Owned | Chantilly | VA | 1989 | M | 470,406 | |||||||||
Total Northern Virginia: | 470,406 | — | ||||||||||||||
99 | TOTAL PORTFOLIO | 7,778,283 | 580,711 | |||||||||||||
17
Property Occupancy Rates by Region by Quarter
| Greater Philadelphia | Baltimore / Washington Corridor | Northern / Central New Jersey | Greater Harrisburg | Northern Virginia | Total Portfolio | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2002 | |||||||||||||
Number of Buildings | 4 | 65 | 13 | 16 | 1 | 99 | |||||||
Rentable Square Feet | 960,349 | 4,768,870 | 903,972 | 674,686 | 470,406 | 7,778,283 | |||||||
Percent Occupied | 100.00 | % | 92.73 | % | 93.88 | % | 89.83 | % | 99.56 | % | 93.92 | % | |
December 31, 2001 | |||||||||||||
Number of Buildings | 4 | 64 | 13 | 16 | 1 | 98 | |||||||
Rentable Square Feet | 960,349 | 4,791,139 | 903,972 | 674,686 | 470,406 | 7,800,552 | |||||||
Percent Occupied | 100.00 | % | 95.68 | % | 95.80 | % | 91.17 | % | 99.56 | % | 96.07 | % | |
September 30, 2001 | |||||||||||||
Number of Buildings | 4 | 64 | 13 | 16 | — | 97 | |||||||
Rentable Square Feet | 960,349 | 4,759,623 | 904,854 | 677,903 | — | 7,302,729 | |||||||
Percent Occupied | 100.00 | % | 98.33 | % | 95.65 | % | 87.19 | % | 0 | % | 97.18 | % | |
June 30, 2001 | |||||||||||||
Number of Buildings | 4 | 58 | 13 | 16 | — | 91 | |||||||
Rentable Square Feet | 960,349 | 4,413,104 | 904,854 | 677,903 | — | 6,956,210 | |||||||
Percent Occupied | 100.00 | % | 97.96 | % | 94.19 | % | 89.41 | % | 0 | % | 96.92 | % | |
March 31, 2001 | |||||||||||||
Number of Buildings | 4 | 55 | 14 | 16 | — | 89 | |||||||
Rentable Square Feet | 960,349 | 4,258,610 | 970,048 | 677,458 | — | 6,866,465 | |||||||
Percent Occupied | 100.00 | % | 97.76 | % | 94.03 | % | 91.75 | % | 0 | % | 96.95 | % |
18
Top Twenty Office Tenants as of March 31, 2002
(Dollars and Square Feet in thousands)
Tenant | Number of Leases | Total Occupied Square Feet | Percentage of Total Occupied Square Feet | Total Rental Revenue(1) | Percentage of Total Rental Revenue | Weighted Average Remaining Lease Term(2) | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
United States of America(3) | 21 | 896,012 | 12.3 | % | $ | 16,663 | 12.8 | % | 4.2 | ||||
AT&T Local Services(4) | 6 | 414,970 | 5.7 | % | 8,628 | 6.6 | % | 6.5 | |||||
Unisys(5) | 3 | 741,284 | 10.1 | % | 7,444 | 5.7 | % | 7.3 | |||||
Dyncorp Information Systems, LLC | 1 | 244,522 | 3.3 | % | 5,384 | 4.1 | % | 8.8 | |||||
Ciena Corporation(6) | 5 | 298,482 | 4.1 | % | 3,968 | 3.0 | % | 3.2 | |||||
General Dynamics Government Corp. | 3 | 161,657 | 2.2 | % | 3,798 | 2.9 | % | 7.1 | |||||
Magellan Behavioral Health, Inc. | 2 | 150,622 | 2.1 | % | 3,259 | 2.5 | % | 1.8 | |||||
Commonwealth of Pennsylvania(4) | 9 | 177,813 | 2.4 | % | 2,533 | 1.9 | % | 6.5 | |||||
Booz-Allen & Hamilton | 3 | 127,919 | 1.8 | % | 2,527 | 1.9 | % | 3.3 | |||||
Merck & Co., Inc.(5) | 1 | 219,065 | 3.0 | % | 2,237 | 1.7 | % | 7.3 | |||||
Bookham Technology, Inc. | 1 | 150,000 | 2.1 | % | 1,900 | 1.5 | % | 5.8 | |||||
Johns Hopkins University(4) | 4 | 81,935 | 1.1 | % | 1,836 | 1.4 | % | 4.4 | |||||
Northrop Grumman Systems | 1 | 61,250 | 0.8 | % | 1,554 | 1.2 | % | 6.5 | |||||
Arbros Communications, Inc. | 1 | 91,534 | 1.3 | % | 1,554 | 1.2 | % | 9.1 | |||||
Genuity, Inc. | 1 | 59,173 | 0.8 | % | 1,538 | 1.2 | % | 2.2 | |||||
Sun Microsystems, Inc. | 2 | 60,730 | 0.8 | % | 1,484 | 1.1 | % | 3.8 | |||||
First American Credit Management Solutions, Inc. | 1 | 70,982 | 1.0 | % | 1,374 | 1.1 | % | 6.7 | |||||
Deutsche Banc Alex. Brown | 1 | 84,354 | 1.2 | % | 1,327 | 1.0 | % | 2.2 | |||||
Ameritrade Holding Corporation | 1 | 63,224 | 0.9 | % | 1,293 | 1.0 | % | 8.3 | |||||
Computer Sciences Corporation | 1 | 55,232 | 0.8 | % | 1,207 | 0.9 | % | 0.2 | |||||
Subtotal Top 20 Office Tenants | 68 | 4,210,760 | 57.6 | % | 71,508 | 54.7 | % | 5.4 | |||||
All remaining tenants | 369 | 3,094,573 | 42.4 | % | 59,132 | 45.3 | % | 3.1 | |||||
Total/Weighted Average | 437 | 7,305,333 | 100.0 | % | $ | 130,640 | 100.0 | % | 4.4 | ||||
- (1)
- Total Rental Revenue is the monthly contractual base rent as of March 31, 2002 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.
- (2)
- The weighting of the lease term was computed using Total Rental Revenue.
- (3)
- Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.
- (4)
- Includes affiliated organizations or agencies.
- (5)
- Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.
- (6)
- In addition to the 298,482 square feet directly leased, Ciena Corporation also subleases 107,064 rentable square feet from various tenants in our portfolio over different lease terms.
19
Total Rental Revenue by Geographic Region by Quarter(1)
(Dollars in thousands)
| 2002 | 2001 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||
Office Properties: | |||||||||||||||
Greater Philadelphia | $ | 2,506 | $ | 2,506 | $ | 2,506 | $ | 2,506 | $ | 2,506 | |||||
Baltimore/Washington Corridor | 21,896 | 22,911 | 22,558 | 18,654 | 18,573 | ||||||||||
Northern/Central New Jersey | 4,921 | 4,786 | 4,757 | 4,998 | 4,922 | ||||||||||
Greater Harrisburg | 2,407 | 2,231 | 2,174 | 2,483 | 2,789 | ||||||||||
Northern Virginia | 2,688 | 947 | — | — | — | ||||||||||
Total Regional Rental Revenue | $ | 34,418 | $ | 33,381 | $ | 31,995 | $ | 28,641 | $ | 28,790 | |||||
- (1)
- Rental revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments and tenant services income.
Net Operating Income by Geographic Region by Quarter
(Dollars in thousands)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties: | ||||||||||||||||
Greater Philadelphia | $ | 2,466 | $ | 2,478 | $ | 2,476 | $ | 2,469 | $ | 2,486 | ||||||
Baltimore/Washington Corridor | 15,140 | 15,745 | 15,539 | 12,704 | 12,614 | |||||||||||
Northern/Central New Jersey | 3,213 | 2,890 | 2,819 | 3,173 | 3,028 | |||||||||||
Greater Harrisburg | 1,810 | 1,640 | 1,506 | 1,736 | 2,195 | |||||||||||
Northern Virginia | 1,598 | 527 | — | — | — | |||||||||||
Total Regional NOI | $ | 24,227 | $ | 23,280 | $ | 22,340 | $ | 20,082 | $ | 20,323 | ||||||
Other income / expenses, net | 79 | 78 | 54 | 71 | 62 | |||||||||||
Total NOI | $ | 24,306 | $ | 23,358 | $ | 22,394 | $ | 20,153 | $ | 20,385 | ||||||
20
Same Office Property Cash Net Operating Income by Quarter(1)
(Dollars in thousands)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties:(2) | ||||||||||||||||
Greater Philadelphia | $ | 2,410 | $ | 2,410 | $ | 2,408 | $ | 2,363 | $ | 2,363 | ||||||
Baltimore/Washington Corridor | 12,078 | 11,720 | 12,316 | 11,988 | 11,977 | |||||||||||
Northern/Central New Jersey | 3,221 | 2,850 | 2,779 | 2,845 | 2,665 | |||||||||||
Greater Harrisburg | 1,773 | 1,645 | 1,489 | 1,707 | 1,718 | |||||||||||
Total Office Properties | $ | 19,482 | $ | 18,625 | $ | 18,992 | $ | 18,903 | $ | 18,723 | ||||||
Same Office Property GAAP Net Operating Income by Quarter(1)
(Dollars in thousands)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties:(2) | ||||||||||||||||
Greater Philadelphia | $ | 2,496 | $ | 2,496 | $ | 2,495 | $ | 2,497 | $ | 2,497 | ||||||
Baltimore/Washington Corridor | 12,113 | 11,906 | 12,683 | 12,384 | 12,361 | |||||||||||
Northern/Central New Jersey | 3,265 | 2,922 | 2,854 | 2,940 | 2,756 | |||||||||||
Greater Harrisburg | 1,834 | 1,654 | 1,518 | 1,757 | 1,753 | |||||||||||
Total Office Properties | $ | 19,708 | $ | 18,978 | $ | 19,550 | $ | 19,578 | $ | 19,367 | ||||||
- (1)
- Net operating income for same office properties has been presented on a GAAP basis and a modified cash basis which removes the effect of straight-line rents from the GAAP net operating income.
- (2)
- Same office properties include buildings owned for a minimum of five reporting quarters.
21
Average Occupancy Rates by Region for Same Office Properties(1)
| Greater Philadelphia | Baltimore / Washington Corridor | Northern / Central New Jersey | Greater Harrisburg | Total Office | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
1st Quarter 2002 Average | |||||||||||
Number of Buildings | 4 | 49 | 13 | 16 | 82 | ||||||
Rentable Square Feet | 960,349 | 3,867,273 | 903,972 | 674,686 | 6,406,280 | ||||||
Percent Occupied | 100.00 | % | 94.03 | % | 94.46 | % | 90.48 | % | 94.61 | % | |
4th Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 49 | 13 | 16 | 82 | ||||||
Rentable Square Feet | 960,349 | 3,866,633 | 903,972 | 675,758 | 6,406,712 | ||||||
Percent Occupied | 100.00 | % | 95.76 | % | 95.82 | % | 89.03 | % | 95.70 | % | |
3rd Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 49 | 13 | 16 | 82 | ||||||
Rentable Square Feet | 960,349 | 3,865,971 | 904,854 | 677,903 | 6,409,077 | ||||||
Percent Occupied | 100.00 | % | 98.65 | % | 95.19 | % | 87.01 | % | 97.13 | % | |
2nd Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 49 | 13 | 16 | 82 | ||||||
Rentable Square Feet | 960,349 | 3,848,223 | 904,834 | 677,606 | 6,391,012 | ||||||
Percent Occupied | 100.00 | % | 98.29 | % | 94.22 | % | 90.24 | % | 97.11 | % | |
1st Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 49 | 13 | 16 | 82 | ||||||
Rentable Square Feet | 960,349 | 3,839,288 | 904,771 | 677,461 | 6,381,869 | ||||||
Percent Occupied | 100.00 | % | 97.59 | % | 92.19 | % | 93.32 | % | 96.74 | % |
- (1)
- Same office properties include buildings owned for a minimum of five reporting quarters.
22
Office Lease Expiration Analysis by Year
Year of Lease Expiration(1) | Number of Leases Expiring | Square Footage of Leases Expiring | Percentage of Total Occupied Square Feet | Total Rental Revenue of Expiring Leases(2) | Percentage of Total Rental Revenue Expiring | Total Rental Revenue of Expiring Leases per Occupied Square Foot | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | ($000s) | | | ||||||||
April 1 - December 31, 2002 | 80 | 853,226 | 11.7 | % | $ | 15,448 | 11.8 | % | $ | 18.11 | ||||
2003 | 91 | 747,770 | 10.2 | % | 14,103 | 10.8 | % | 18.86 | ||||||
2004 | 72 | 826,766 | 11.3 | % | 16,813 | 12.7 | % | 20.34 | ||||||
2005 | 65 | 692,563 | 9.5 | % | 14,504 | 11.1 | % | 20.94 | ||||||
2006 | 52 | 607,542 | 8.3 | % | 11,930 | 9.1 | % | 19.64 | ||||||
2007 | 27 | 623,347 | 8.5 | % | 10,331 | 7.9 | % | 16.57 | ||||||
2008 | 13 | 782,006 | 10.7 | % | 15,019 | 11.5 | % | 19.21 | ||||||
2009 | 14 | 1,230,442 | 16.8 | % | 14,906 | 11.4 | % | 12.11 | ||||||
2010 | 11 | 657,393 | 9.0 | % | 14,019 | 10.8 | % | 21.33 | ||||||
2011 | 4 | 165,443 | 2.3 | % | 2,314 | 1.8 | % | 13.99 | ||||||
2012 | 1 | 71,514 | 1.0 | % | 1,251 | 1.0 | % | 17.50 | ||||||
Other(3) | 7 | 47,321 | 0.6 | % | — | 0.0 | % | — | ||||||
Total/Weighted Average | 437 | 7,305,333 | 100.0 | % | $ | 130,640 | 100.0 | % | $ | 18.52 | ||||
NOTE: As of March 31, 2002, the weighted average lease term is 4.4 years.
- (1)
- Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.
- (2)
- Total Rental Revenue is the monthly contractual base rent as of March 31, 2002 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.
- (3)
- Other consists primarily of amenities, including cafeterias, concierge offices and property management space.
23
Quarterly Office Renewal Analysis
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Total Office | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended March 31, 2002: | |||||||||||||||||
Expiring Square Feet | — | 42,032 | 11,961 | 53,200 | 107,193 | ||||||||||||
Vacated Square Feet | — | 21,125 | 9,992 | 15,280 | 46,397 | ||||||||||||
Renewed Square Feet | — | 20,907 | 1,969 | 37,920 | 60,796 | ||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 49.74 | % | 16.46 | % | 71.28 | % | 56.72 | % | |||||||
Renewal & Retenanted Space: | |||||||||||||||||
Increase in Base Rent—Straight-line | 0.00 | % | (4.35 | )% | (2.70 | )% | 29.35 | % | 3.21 | % | |||||||
Increase in Total Rent—Straight-line | 0.00 | % | 0.55 | % | (12.76 | )% | (2.02 | )% | (1.53 | )% | |||||||
Increase in Base Rent—Cash | 0.00 | % | (3.11 | )% | (7.51 | )% | 20.16 | % | 1.71 | % | |||||||
Increase in Total Rent—Cash | 0.00 | % | 2.04 | % | (16.86 | )% | (9.06 | )% | (3.05 | )% | |||||||
Average Capital Cost per Square Foot | $ | — | $ | 5.01 | $ | 5.67 | $ | 0.04 | $ | 3.08 | |||||||
Quarter Ended December 31, 2001: | |||||||||||||||||
Expiring Square Feet | — | 84,400 | 4,276 | 53,256 | 141,932 | ||||||||||||
Vacated Square Feet | — | 24,674 | — | 5,005 | 29,679 | ||||||||||||
Renewed Square Feet | — | 59,726 | 4,276 | 48,251 | 112,253 | ||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 70.77 | % | 100.00 | % | 90.60 | % | 79.09 | % | |||||||
Renewal & Retenanted Space: | |||||||||||||||||
Increase in Base Rent—Straight-line | 0.00 | % | 12.52 | % | 17.24 | % | 18.61 | % | 15.16 | % | |||||||
Increase in Total Rent—Straight-line | 0.00 | % | 9.42 | % | 6.74 | % | 17.70 | % | 12.58 | % | |||||||
Increase in Base Rent—Cash | 0.00 | % | 5.95 | % | 11.02 | % | 5.78 | % | 6.08 | % | |||||||
Increase in Total Rent—Cash | 0.00 | % | 3.10 | % | 1.07 | % | 5.08 | % | 3.80 | % | |||||||
Average Capital Cost per Square Foot | $ | — | $ | 9.56 | $ | 8.92 | $ | 15.25 | $ | 12.20 | |||||||
Quarter Ended September 30, 2001: | |||||||||||||||||
Expiring Square Feet | — | 182,914 | 7,777 | 97,943 | 288,634 | ||||||||||||
Vacated Square Feet | — | 122,030 | — | — | 122,030 | ||||||||||||
Renewed Square Feet | — | 60,884 | 7,777 | 97,943 | 166,604 | ||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 33.29 | % | 100.00 | % | 100.00 | % | 57.72 | % | |||||||
Renewal & Retenanted Space: | |||||||||||||||||
Increase in Base Rent—Straight-line | 0.00 | % | 13.01 | % | 25.29 | % | 8.18 | % | 11.93 | % | |||||||
Increase in Total Rent—Straight-line | 0.00 | % | 10.17 | % | 15.05 | % | 6.47 | % | 9.07 | % | |||||||
Increase in Base Rent—Cash | 0.00 | % | 8.22 | % | 18.70 | % | 5.90 | % | 7.87 | % | |||||||
Increase in Total Rent—Cash | 0.00 | % | 5.76 | % | 9.46 | % | 4.64 | % | 5.51 | % | |||||||
Average Capital Cost per Square Foot | $ | — | $ | 7.34 | $ | 5.67 | $ | 0.95 | $ | 4.40 |
24
Quarterly Office Renewal Analysis (Continued)
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Total Office | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended June 30, 2001: | |||||||||||||||||
Expiring Square Feet | — | 174,078 | 22,678 | 45,325 | 242,081 | ||||||||||||
Vacated Square Feet | — | 16,922 | 6,050 | 33,026 | 55,998 | ||||||||||||
Renewed Square Feet | — | 157,156 | 16,628 | 12,299 | 186,083 | ||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 90.28 | % | 73.32 | % | 27.14 | % | 76.87 | % | |||||||
Renewal & Retenanted Space: | |||||||||||||||||
Increase in Base Rent—Straight-line | 0.00 | % | 24.86 | % | 38.02 | % | 13.69 | % | 26.15 | % | |||||||
Increase in Total Rent—Straight-line | 0.00 | % | 19.76 | % | 32.98 | % | 10.21 | % | 21.02 | % | |||||||
Increase in Base Rent—Cash | 0.00 | % | 19.81 | % | 34.23 | % | 4.57 | % | 21.00 | % | |||||||
Increase in Total Rent—Cash | 0.00 | % | 15.52 | % | 29.50 | % | 2.37 | % | 16.63 | % | |||||||
Average Capital Cost per Square Foot | $ | — | $ | 3.87 | $ | 14.05 | $ | 6.50 | $ | 5.58 | |||||||
Quarter Ended March 31, 2001: | |||||||||||||||||
Expiring Square Feet | — | 80,677 | 1,510 | 4,000 | 86,187 | ||||||||||||
Vacated Square Feet | — | 1,215 | — | — | 1,215 | ||||||||||||
Renewed Square Feet | — | 79,462 | 1,510 | 4,000 | 84,972 | ||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 98.49 | % | 100.00 | % | 100.00 | % | 98.59 | % | |||||||
Renewal & Retenanted Space: | |||||||||||||||||
Increase in Base Rent—Straight-line | 0.00 | % | 23.01 | % | 2.78 | % | (28.63 | )% | 20.44 | % | |||||||
Increase in Total Rent—Straight-line | 0.00 | % | 20.31 | % | 2.03 | % | (18.63 | )% | 18.20 | % | |||||||
Increase in Base Rent—Cash | 0.00 | % | 15.15 | % | 2.78 | % | (30.74 | )% | 12.95 | % | |||||||
Increase in Total Rent—Cash | 0.00 | % | 12.84 | % | 2.03 | % | (20.55 | )% | 11.12 | % | |||||||
Average Capital Cost per Square Foot | $ | — | $ | 7.20 | $ | 0.42 | $ | 1.70 | $ | 6.88 |
25
Development Summary as of March 31, 2002
(Dollars in thousands except square feet and per square foot data)
Property and Location | Submarket | Owned or Joint Venture (JV) | Rentable Square Feet | Percentage Pre-Leased or Committed | Anticipated Cost per Rentable Square Foot | Anticipated Cost | Cost to date | Loan Commitment | Outstanding Loan as of 3/31/2002 | Anticipated Stabilization/ Delivery | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Under Construction | ||||||||||||||||||||||||||
2711 Technology Drive (211 NBP) Annapolis Junction, MD | BWI Airport | JV | 150,000 | 100.00 | % | $ | 175 | $ | 26,215 | $ | 22,806 | $ | 20,550 | $ | 13,430 | June 2002 | ||||||||||
1304 Concourse Drive Linthicum, MD(1) | BWI Airport | Owned | 92,307 | 58.60 | % | 162 | 14,964 | 11,830 | 11,855 | 7,045 | Lease-up September 2002 | |||||||||||||||
4260 Forbes Boulevard—Phase I Lanham, Maryland(2) | Lanham | JV | 54,692 | 43.08 | % | 100 | 5,494 | 4,801 | 9,026 | 4,789 | Lease-up October 2002 | |||||||||||||||
6724 Alexander Bell Drive(3) Columbia, Maryland | Howard County Perimeter | Owned | 28,312 | 62.18 | % | 181 | 5,119 | 4,849 | — | — | Lease-up November 2002 | |||||||||||||||
6731 Columbia Gateway Drive Columbia, Maryland | Howard County Perimeter | Owned | 123,743 | 57.57 | % | 190 | 23,511 | 18,976 | 15,750 | 10,489 | Lease-up February 2003 | |||||||||||||||
Robert Fulton Drive—Phase I Columbia, Maryland(2) | Howard County Perimeter | JV | 105,850 | 0.00 | % | 115 | 12,185 | 8,832 | 14,000 | 6,508 | March 2003 | |||||||||||||||
TOTAL / AVERAGE | 554,904 | 57.04 | % | $ | 158 | $ | 87,488 | $ | 72,094 | $ | 71,181 | $ | 42,261 | |||||||||||||
- (1)
- This property contains 102,964 rentable square feet of which 10,657 rentable square feet have been placed into service in March 2002. Accordingly, the anticipated cost and cost to date have been adjusted to reflect only the developmental portion of the property.
- (2)
- The loan commitments and outstanding loan balances as of March 31, 2002 for these joint venture properties cover Phase I and Phase II development activities.
- (3)
- We purchased this property in May 2001 and are redeveloping. As part of a $12 million loan, we can borrow an additional $1.0 million to fund construction costs. No draws have been made as of March 31, 2002.
26
Joint Venture Summary as of March 31, 2002
(Dollars in thousands except acreage and square feet)
Property and Location | Joint Venture Interest Held By COPT | Status | Square Feet | Acreage | COPT Investment | Off-Balance Sheet Debt as of 3/31/02 | Recourse to COPT | Option to Acquire Partner's Interest | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4260 Forbes Boulevard Lanham, Maryland | 80% | Lease-Up | 54,692 | $ | 921 | $ | 4,789 | Yes, 50 | % | Yes | |||||||||
2711 Technology Drive (211 NBP) Annapolis Junction, Maryland | 50% | Construction | 150,000 | 3,224 | (a) | 13,430 | Yes, 100 | % | Yes | ||||||||||
Robert Fulton Drive (Phase I) Columbia, Maryland | 80% | Construction/ Development | 105,850 | 4 acres | 3,972 | 6,508 | Yes, 80 | % | Yes | ||||||||||
MOR Montpelier 3 LLC Laurel, Maryland | 50% | Development | 2 acres | 298 | (b) | 270 | No | Yes | |||||||||||
Gateway 70 Columbia, Maryland | 80% | Development | 12 acres | 2,366 | — | N/A | Yes | ||||||||||||
140 NBP Annapolis Junction, Maryland | 20% | Development | 8 acres | 3,182 | — | N/A | No | ||||||||||||
TOTAL | $ | 13,963 | $ | 24,997 | |||||||||||||||
- (a)
- Upon formation of this joint venture, we contributed land and have recorded our investment as land, construction in progress and buildings and improvements on our balance sheet. In addition, we obtained an option to acquire the joint venture partner's interest for a pre-determined price. Accordingly, we recorded a liability and are accreting towards the pre-determined purchase price over the respective time period. Refer to our most recent Form 10-Q for additional disclosure.
- (b)
- On February 21, 2002, we contributed $292,000 to a joint venture for this development opportunity.
27
Corporate Office Properties Trust Index to Supplemental Information (Unaudited) March 31, 2002
Quarterly Selected Financial Summary Data (Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) (Dollars and units in thousands)
Quarterly Consolidated Statements of Operations and FFO per Diluted Share (Shares in thousands)
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues
Quarterly Equity Analysis (Amounts in thousands, except per share data, share prices and ratios)
Quarterly Valuation Analysis (Dollars in thousands except per share data and ratios)
Quarterly Debt Analysis (Dollars in thousands)
Quarterly Operating Ratios (Dollars in thousands except per share data and ratios)
Investor Composition and Analyst Coverage (as of March 31, 2002)
Debt Maturity Schedule—March 31, 2002 (Dollars in thousands)
Property Summary by Region—March 31, 2002
Property Summary by Region—March 31, 2002 (Continued)
Property Summary by Region—March 31, 2002 (Continued)
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of March 31, 2002 (Dollars and Square Feet in thousands)
Total Rental Revenue by Geographic Region by Quarter(1) (Dollars in thousands)
Net Operating Income by Geographic Region by Quarter (Dollars in thousands)
Same Office Property Cash Net Operating Income by Quarter(1) (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter(1) (Dollars in thousands)
Average Occupancy Rates by Region for Same Office Properties(1)
Office Lease Expiration Analysis by Year
Quarterly Office Renewal Analysis
Quarterly Office Renewal Analysis (Continued)
Development Summary as of March 31, 2002 (Dollars in thousands except square feet and per square foot data)
Joint Venture Summary as of March 31, 2002 (Dollars in thousands except acreage and square feet)