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Supplemental Information
(Unaudited)
June 30, 2002
Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
June 30, 2002
| Page | ||
---|---|---|---|
Highlights and Discussion | |||
Reporting Period Highlights—Second 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—June 30, 2002 | 14 | ||
Portfolio Summary | |||
Property Summary by Region—June 30, 2002 | 15 | ||
Property Occupancy Rates by Region by Quarter | 18 | ||
Top Twenty Office Tenants as of June 30, 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 | ||
Year to Date Office Renewal Analysis | 24 | ||
Quarterly Office Renewal Analysis | 24 | ||
Acquisition Summary as of June 30, 2002 | 26 | ||
Development Summary as of June 30, 2002 | 27 | ||
Joint Venture Summary as of June 30, 2002 | 28 |
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—Second Quarter 2002
Financial Results
- •
- Reported FFO—diluted of $12,331,000 or $.34 per share/unit for the second quarter of 2002 as compared to $10,560,000 or $.32 per share/unit for the comparable 2001 period, representing an increase of 6.3% per share/unit. FFO—diluted increased $1,771,000 or 16.8% over the comparable 2001 period.
- •
- Reported AFFO—diluted of $9,958,000 or $.27 per share/unit for the second quarter of 2002 as compared to $8,591,000 or $.26 per share/unit for the comparable 2001 period, representing an increase of 3.8% per share/unit.
- •
- Our FFO and AFFO payout ratio improved to 60.5% and 74.9%, respectively, for the second quarter of 2002 as compared to 62.4% and 76.7%, respectively, for the comparable 2001 period.
Financing and Capital Transactions
- •
- We obtained a $34.0 million, 6.91% fixed rate, five-year mortgage loan and utilized the proceeds to repay our $25.0 million loan scheduled to mature in November 2002. We applied the remaining $9.0 million of loan proceeds to our revolving line of credit.
- •
- On June 27, 2002, we borrowed the remaining $19.3 million of a $34.0 million, seven-year mortgage loan which bears interest at a fixed rate of 7.0% and repaid the $17.1 million construction loan collateralized by 2711 Technology Drive. The remaining proceeds were utilized to paydown our revolving line of credit.
- •
- As of June 30, 2002, our debt to market capitalization is 51.0% and our debt to undepreciated book value of real estate assets is 59.9%. We achieved an EBITDA interest coverage ratio of 2.69x and an EBITDA fixed charge coverage ratio of 2.00x for this quarter. Our quarterly weighted average interest rate dropped to 6.47% in the second quarter of 2002 from 6.52% in the prior quarter.
- •
- In June, Mercury Partners, LLC initiated coverage of our stock. As a result, we now have equity research coverage provided by eight analysts.
Operations
- •
- Overall occupancy was 94.1% as of June 30, 2002, consistent with the prior quarter. The occupancy rate was 92.9% in the Baltimore/Washington Corridor, which represents 64.2% of our square footage and 66.9% of our total office revenues for the second quarter of 2002. We were 95.1% leased as of June 30, 2002.
- •
- We renewed 64.4% of our expiring leases totaling 184,974 square feet with an average capital cost of $4.35 per square foot during the second quarter. We realized increases in base and total rents on a straight-line basis of 5.6% and 10.4%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base and total rent on a cash basis increased 2.3% and 7.2%, respectively, on this renewed and retenanted space.
1
- •
- Our same property cash NOI decreased by 1.2% over the quarter ended June 30, 2001 for the 83 properties comprising our same property portfolio. Our same property portfolio average occupancy dropped from 97.0% in the second quarter of 2001 to 93.4% in the second quarter of 2002, primarily causing this NOI decrease.
- •
- Weighted average lease term of our office portfolio is 4.4 years as of June 30, 2002, with an average contractual rental rate (including tenant reimbursements of operating costs) of $18.34 per square foot.
Acquisitions
- •
- During the second quarter, we acquired 6 buildings totaling 312,431 square feet for $32.7 million which equates to an average cost per square foot of $104.71. All of these properties are located in the B/W Corridor and the average occupancy exceeds 99%.
Joint Ventures
- •
- On June 4, 2002, we acquired the remaining 50% joint venture interest in 2711 Technology Drive for $6.4 million and placed into service this 152,000 square foot building. This 100% occupied property increases our market concentration in the National Business Park to 11 operating buildings totaling 1.2 million square feet.
Development
- •
- For the quarter, we signed four leases aggregating 75,712 square feet of development space at 6731 Columbia Gateway Drive and 6724 Alexander Bell Drive.
- •
- During this quarter, we placed into service 293,000 square feet which was 100% leased, primarily to Computer Sciences Corporation (152,000 square feet) at 2711 Technology Drive, to Northrop Grumman (54,000 square feet) at 1304 Concourse Drive and to Group Health, a subsidiary of CareFirst, Inc. (50,000 square feet) at 6731 Columbia Gateway Drive. Accordingly, 263,000 square feet remains to be delivered as of June 30, 2002.
Subsequent Events
- •
- We acquired 32.8 acres of land located in the Westfields Business Park in Northern Virginia, near our existing 470,000 square foot building. This site was purchased for $3.6 million on July 18, 2002 and supports approximately 500,000 square feet of future development.
- •
- On July 17, 2002, we sold 8815 Centre Park Drive, a 53,782 square foot building located in Columbia, Maryland, for $7.2 million.
- •
- We signed a lease for 14,724 square feet at 131 National Business Parkway with Conquest Information Technologies, Inc. The entire National Business Park is now 100% leased.
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 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||
Total Revenues from Real Estate Operations | $ | 36,835 | $ | 34,499 | $ | 33,460 | $ | 32,050 | $ | 28,711 | ||||||
Net Operating Income from Real Estate Operations | 26,483 | 24,306 | 23,358 | 22,394 | 20,153 | |||||||||||
EBITDA | 24,419 | 22,919 | 22,731 | 21,411 | 20,471 | |||||||||||
Net Income before Preferred Dividends | 5,884 | 5,295 | 5,893 | 5,222 | 5,081 | |||||||||||
Preferred Dividends | (2,534 | ) | (2,533 | ) | (2,533 | ) | (1,830 | ) | (1,613 | ) | ||||||
Net Income Available to Common Shareholders | $ | 3,350 | $ | 2,762 | $ | 3,360 | $ | 3,392 | $ | 3,468 | ||||||
Funds From Operations (FFO)—Diluted | $ | 12,331 | $ | 11,373 | $ | 11,462 | $ | 11,034 | $ | 10,560 | ||||||
FFO per diluted share | $ | 0.34 | $ | 0.33 | $ | 0.34 | $ | 0.33 | $ | 0.32 | ||||||
Adjusted FFO—Diluted | $ | 9,958 | $ | 9,541 | $ | 8,560 | $ | 9,106 | $ | 8,591 | ||||||
Adjusted FFO per diluted share | $ | 0.27 | $ | 0.27 | $ | 0.25 | $ | 0.27 | $ | 0.26 | ||||||
Payout Ratios: | ||||||||||||||||
FFO—Diluted(A) | 60.50 | % | 65.35 | % | 60.80 | % | 62.71 | % | 62.43 | % | ||||||
AFFO—Diluted(B) | 74.91 | % | 77.90 | % | 81.41 | % | 75.98 | % | 76.73 | % | ||||||
Total Dividends/Distributions | $ | 9,857 | $ | 9,829 | $ | 9,366 | $ | 8,613 | $ | 8,069 |
- (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 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||
Assets | ||||||||||||||||||
Investment in real estate: | ||||||||||||||||||
Land—operational | $ | 179,027 | $ | 165,685 | $ | 164,994 | $ | 157,789 | $ | 142,461 | ||||||||
Land—development | 22,891 | 29,544 | 26,751 | 23,507 | 24,488 | |||||||||||||
Construction in progress | 14,718 | 38,140 | 37,493 | 33,860 | 30,066 | |||||||||||||
Buildings and improvements | 830,268 | 755,597 | 738,320 | 682,474 | 624,635 | |||||||||||||
Investment in and advances to unconsolidated real estate joint ventures | 11,508 | 10,740 | 11,047 | 8,005 | 12,009 | |||||||||||||
Less: accumulated depreciation | (63,101 | ) | (57,245 | ) | (51,552 | ) | (46,361 | ) | (41,659 | ) | ||||||||
Net investment in real estate | 995,311 | 942,461 | 927,053 | 859,274 | 792,000 | |||||||||||||
Cash and cash equivalents | 4,256 | 4,250 | 6,640 | 7,881 | 2,962 | |||||||||||||
Restricted cash | 6,596 | 6,977 | 4,947 | 4,116 | 9,633 | |||||||||||||
Accounts receivable, net | 3,953 | 4,909 | 3,805 | 4,720 | 4,855 | |||||||||||||
Investment in and advances to other unconsolidated entities | 2,107 | 2,105 | 2,112 | 1,939 | 2,041 | |||||||||||||
Deferred rent receivable | 12,636 | 11,651 | 11,447 | 10,511 | 9,804 | |||||||||||||
Deferred charges, net | 19,877 | 18,175 | 16,884 | 16,561 | 16,357 | |||||||||||||
Prepaid and other assets | 4,821 | 10,991 | 9,551 | 8,145 | 9,383 | |||||||||||||
Furniture, fixtures and equipment, net of accumulated depreciation | 1,783 | 1,717 | 1,771 | 1,699 | 1,772 | |||||||||||||
Total assets | $ | 1,051,340 | $ | 1,003,236 | $ | 984,210 | $ | 914,846 | $ | 848,807 | ||||||||
Liabilities and beneficiaries' equity | ||||||||||||||||||
Liabilities: | ||||||||||||||||||
Mortgage loans payable | $ | 633,498 | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | ||||||||
Accounts payable and accrued expenses | 7,943 | 11,355 | 10,674 | 8,923 | 13,361 | |||||||||||||
Rents received in advance and security deposits | 5,514 | 6,805 | 6,567 | 4,319 | 4,023 | |||||||||||||
Dividends/distributions payable | 9,455 | 9,426 | 8,965 | 8,346 | 7,918 | |||||||||||||
Fair value of derivatives | 1,970 | 2,720 | 3,781 | 3,894 | 2,232 | |||||||||||||
Other liabilities | 873 | 7,171 | 12,193 | 11,082 | 10,637 | |||||||||||||
Total liabilities | 659,253 | 611,298 | 615,507 | 545,279 | 514,170 | |||||||||||||
Minority interests: | ||||||||||||||||||
Preferred Units in the Operating Partnership | 24,367 | 24,367 | 24,367 | 24,367 | 24,367 | |||||||||||||
Common Units in the Operating Partnership | 79,150 | 81,905 | 80,158 | 80,720 | 78,900 | |||||||||||||
Other consolidated partnerships | 229 | 286 | 257 | 231 | 224 | |||||||||||||
Total minority interests | 103,746 | 106,558 | 104,782 | 105,318 | 103,491 | |||||||||||||
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 June 30, 2002) | — | — | — | — | — | |||||||||||||
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of June 30, 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 June 30, 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 June 30, 2002) | 11 | 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 June 30, 2002) | 14 | 14 | 14 | 14 | — | |||||||||||||
Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 23,402,398 shares issued as of June 30, 2002) | 234 | 229 | 208 | 208 | 207 | |||||||||||||
Treasury Shares, at cost (166,600 shares as of June 30, 2002) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | ||||||||
Additional paid-in capital | 311,391 | 307,500 | 285,362 | 284,834 | 249,618 | |||||||||||||
Cumulative dividends in excess of net income | (17,899 | ) | (16,446 | ) | (14,502 | ) | (13,618 | ) | (12,776 | ) | ||||||||
Value of unearned restricted Common Share grants | (2,739 | ) | (2,739 | ) | (3,275 | ) | (3,229 | ) | (3,042 | ) | ||||||||
Accumulated other comprehensive loss | (1,274 | ) | (1,792 | ) | (2,500 | ) | (2,574 | ) | (1,475 | ) | ||||||||
Total beneficiaries' equity | 288,341 | 285,380 | 263,921 | 264,249 | 231,146 | |||||||||||||
Total beneficiaries' equity and minority interests | 392,087 | 391,938 | 368,703 | 369,567 | 334,637 | |||||||||||||
Total liabilities and beneficiaries' equity | $ | 1,051,340 | $ | 1,003,236 | $ | 984,210 | $ | 914,846 | $ | 848,807 | ||||||||
4
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)
(Dollars and units in thousands)
| 2002 | 2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 33,220 | $ | 30,538 | $ | 29,957 | $ | 29,011 | $ | 25,960 | ||||||||
Tenant recoveries and other revenue | 3,615 | 3,961 | 3,503 | 3,039 | 2,751 | |||||||||||||
Total Revenues from Real Estate Operations | 36,835 | 34,499 | 33,460 | 32,050 | 28,711 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 4,284 | 4,473 | 4,243 | 4,178 | 3,492 | |||||||||||||
Repairs and maintenance | 4,007 | 3,721 | 3,980 | 3,759 | 3,595 | |||||||||||||
Real estate taxes | 2,061 | 1,999 | 1,879 | 1,719 | 1,471 | |||||||||||||
Total Property Expenses from Real Estate Operations | 10,352 | 10,193 | 10,102 | 9,656 | 8,558 | |||||||||||||
Net Operating Income from Real Estate Operations | 26,483 | 24,306 | 23,358 | 22,394 | 20,153 | |||||||||||||
General and administrative | (1,940 | ) | (2,170 | ) | (1,167 | ) | (1,347 | ) | (1,329 | ) | ||||||||
Equity in income of unconsol. real estate joint ventures | (22 | ) | 18 | 27 | 27 | 124 | ||||||||||||
Earnings from service companies | (104 | ) | (90 | ) | (218 | ) | (378 | ) | 143 | |||||||||
Income from real estate services | 2 | 855 | 731 | 715 | 1,380 | |||||||||||||
EBITDA | 24,419 | 22,919 | 22,731 | 21,411 | 20,471 | |||||||||||||
Interest expense | (9,082 | ) | (8,648 | ) | (8,475 | ) | (8,342 | ) | (7,762 | ) | ||||||||
Series B, E & F Preferred Share dividends | (2,397 | ) | (2,397 | ) | (2,397 | ) | (1,694 | ) | (1,477 | ) | ||||||||
Amortization of deferred financing costs | (549 | ) | (486 | ) | (492 | ) | (397 | ) | (546 | ) | ||||||||
Income tax (expense) benefit | 36 | 40 | 207 | 124 | (44 | ) | ||||||||||||
Expense (income) associated with options | 12 | 14 | — | 5 | — | |||||||||||||
Depreciation on unconsolidated real estate entities | 21 | 64 | 40 | 38 | 70 | |||||||||||||
Minority interestholders' share of operations | (14 | ) | (31 | ) | (23 | ) | (7 | ) | (58 | ) | ||||||||
Depreciation of corporate FF&E | (115 | ) | (102 | ) | (129 | ) | (104 | ) | (94 | ) | ||||||||
Funds From Operations (FFO)—Diluted | 12,331 | 11,373 | 11,462 | 11,034 | 10,560 | |||||||||||||
Depreciation and other amortization | (6,593 | ) | (6,539 | ) | (5,738 | ) | (5,148 | ) | (4,863 | ) | ||||||||
Gain on property sales | — | 93 | — | — | 416 | |||||||||||||
Loss on early extinguishment of debt | (157 | ) | (42 | ) | (7 | ) | — | (99 | ) | |||||||||
Expense (income) associated with options | (12 | ) | (14 | ) | — | (5 | ) | — | ||||||||||
Depreciation on unconsolidated real estate entities | (21 | ) | (64 | ) | (40 | ) | (38 | ) | (70 | ) | ||||||||
Minority interestholders' share of operations | 14 | 31 | 23 | 7 | 58 | |||||||||||||
Series B, E & F Preferred Share dividends | 2,397 | 2,397 | 2,397 | 1,694 | 1,477 | |||||||||||||
Income Before Minority Interests and Preferred Share Dividends | 7,959 | 7,235 | 8,097 | 7,544 | 7,479 | |||||||||||||
Minority Interests: | ||||||||||||||||||
Preferred Units in Operating Partnership | (572 | ) | (572 | ) | (571 | ) | (572 | ) | (572 | ) | ||||||||
Common Units in Operating Partnership | (1,489 | ) | (1,337 | ) | (1,610 | ) | (1,743 | ) | (1,768 | ) | ||||||||
Other consolidated entities | (14 | ) | (31 | ) | (23 | ) | (7 | ) | (58 | ) | ||||||||
Preferred Share dividends | (2,534 | ) | (2,533 | ) | (2,533 | ) | (1,830 | ) | (1,613 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 3,350 | $ | 2,762 | $ | 3,360 | $ | 3,392 | $ | 3,468 | ||||||||
Funds From Operations (FFO)—Diluted | $ | 12,331 | $ | 11,373 | $ | 11,462 | $ | 11,034 | $ | 10,560 | ||||||||
Straight line rents | (991 | ) | (214 | ) | (952 | ) | (717 | ) | (816 | ) | ||||||||
Non-incremental capital expenditures | (1,382 | ) | (1,618 | ) | (1,950 | ) | (1,211 | ) | (1,153 | ) | ||||||||
Adjusted Funds from Operations—Diluted | $ | 9,958 | $ | 9,541 | $ | 8,560 | $ | 9,106 | $ | 8,591 | ||||||||
Preferred dividends/distributions(1) | 3,105 | 3,105 | 3,104 | 2,402 | 2,185 | |||||||||||||
Common dividends/distributions | 6,752 | 6,724 | 6,262 | 6,211 | 5,884 | |||||||||||||
Total Dividends/Distributions | $ | 9,857 | $ | 9,829 | $ | 9,366 | $ | 8,613 | $ | 8,069 | ||||||||
- (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 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 0.90 | $ | 0.87 | $ | 0.88 | $ | 0.86 | $ | 0.78 | ||||||||
Tenant recoveries and other revenue | 0.10 | 0.11 | 0.10 | 0.09 | 0.08 | |||||||||||||
Total Revenues from Real Estate Operations | 1.00 | 0.99 | 0.98 | 0.95 | 0.86 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 0.12 | 0.13 | 0.12 | 0.12 | 0.10 | |||||||||||||
Repairs and maintenance | 0.11 | 0.11 | 0.12 | 0.11 | 0.11 | |||||||||||||
Real estate taxes | 0.06 | 0.06 | 0.06 | 0.05 | 0.04 | |||||||||||||
Total Property Expenses from Real Estate Operations | 0.28 | 0.29 | 0.30 | 0.29 | 0.26 | |||||||||||||
Net Operating Income from Real Estate Operations | 0.72 | 0.70 | 0.69 | 0.67 | 0.60 | |||||||||||||
General and administrative | (0.05 | ) | (0.06 | ) | (0.03 | ) | (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 | ) | (0.00 | ) | (0.01 | ) | (0.01 | ) | 0.00 | |||||||||
Income from real estate services | 0.00 | 0.02 | 0.02 | 0.02 | 0.04 | |||||||||||||
EBITDA | 0.66 | 0.66 | 0.67 | 0.64 | 0.61 | |||||||||||||
Interest expense | (0.25 | ) | (0.25 | ) | (0.25 | ) | (0.25 | ) | (0.23 | ) | ||||||||
Series B, E & F Preferred Share dividends | (0.07 | ) | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.04 | ) | ||||||||
Amortization of deferred financing costs | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||
Income tax (expense) benefit | 0.00 | 0.00 | 0.01 | 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 | 0.34 | 0.33 | 0.34 | 0.33 | 0.32 | |||||||||||||
Depreciation and other amortization | (0.18 | ) | (0.19 | ) | (0.17 | ) | (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 | ) | |||||||||
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 | 0.07 | 0.05 | 0.04 | |||||||||||||
Income Before Minority Interests and Preferred Share Dividends | 0.22 | 0.21 | 0.24 | 0.22 | 0.22 | |||||||||||||
Minority Interests: | ||||||||||||||||||
Preferred Units in Operating Partnership | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Common Units in Operating Partnership | (0.04 | ) | (0.04 | ) | (0.05 | ) | (0.05 | ) | (0.05 | ) | ||||||||
Other consolidated entities | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Preferred Share dividends | (0.07 | ) | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.05 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 0.09 | $ | 0.08 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
Funds From Operations (FFO)—Diluted | $ | 0.34 | $ | 0.33 | $ | 0.34 | $ | 0.33 | $ | 0.32 | ||||||||
Straight line rents | (0.03 | ) | (0.01 | ) | (0.03 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Non-incremental capital expenditures | (0.04 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Adjusted Funds from Operations—Diluted | $ | 0.27 | $ | 0.27 | $ | 0.25 | $ | 0.27 | $ | 0.26 | ||||||||
For FFO Computations: | ||||||||||||||||||
Weighted Average Converted Preferred Shares/Units | 3,618 | 3,618 | 3,618 | 3,618 | 3,618 | |||||||||||||
Weighted Average Common Shares/Units Outstanding | 33,135 | 31,324 | 30,385 | 30,037 | 29,746 | |||||||||||||
Weighted Average Diluted Shares Outstanding | 36,753 | 34,942 | 34,003 | 33,655 | 33,364 | |||||||||||||
Note: The above presentation does not separately report discontinued operations.
6
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues
| 2002 | 2001 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||
Revenues | |||||||||||||
Rental revenue | 90 | % | 89 | % | 90 | % | 91 | % | 90 | % | |||
Tenant recoveries and other revenue | 10 | % | 11 | % | 10 | % | 9 | % | 10 | % | |||
Total Revenues from Real Estate Operations | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||
Expenses | |||||||||||||
Property operating | 12 | % | 13 | % | 13 | % | 13 | % | 12 | % | |||
Repairs and maintenance | 11 | % | 11 | % | 12 | % | 12 | % | 13 | % | |||
Real estate taxes | 6 | % | 6 | % | 6 | % | 5 | % | 5 | % | |||
Total Property Expenses from Real Estate Operations | 28 | % | 30 | % | 30 | % | 30 | % | 30 | % | |||
Net Operating Income from Real Estate Operations | 72 | % | 70 | % | 70 | % | 70 | % | 70 | % | |||
General and administrative | (5 | )% | (6 | )% | (3 | )% | (4 | )% | (5 | )% | |||
Equity in income of unconsol. real estate joint ventures | (0 | )% | 0 | % | 0 | % | 0 | % | 0 | % | |||
Earnings from service companies | (0 | )% | (0 | )% | (1 | )% | (1 | )% | 0 | % | |||
Income from real estate services | 0 | % | 2 | % | 2 | % | 2 | % | 5 | % | |||
EBITDA | 66 | % | 66 | % | 68 | % | 67 | % | 71 | % | |||
Interest expense | (25 | )% | (25 | )% | (25 | )% | (26 | )% | (27 | )% | |||
Series B, E & F Preferred Share dividends | (7 | )% | (7 | )% | (7 | )% | (5 | )% | (5 | )% | |||
Amortization of deferred financing costs | (1 | )% | (1 | )% | (1 | )% | (1 | )% | (2 | )% | |||
Income tax (expense) benefit | 0 | % | 0 | % | 1 | % | 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 | % | 33 | % | 34 | % | 34 | % | 37 | % | |||
Depreciation and other amortization | (18 | )% | (19 | )% | (17 | )% | (16 | )% | (17 | )% | |||
Gain on property sales | 0 | % | 0 | % | 0 | % | 0 | % | 1 | % | |||
Loss on early extinguishment of debt | (0 | )% | (0 | )% | (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 | % | |||
Series B, E & F Preferred Share dividends | 7 | % | 7 | % | 7 | % | 5 | % | 5 | % | |||
Income Before Minority Interests and Preferred Share Dividends | 22 | % | 21 | % | 24 | % | 24 | % | 26 | % | |||
Minority Interests: | |||||||||||||
Preferred Units in Operating Partnership | (2 | )% | (2 | )% | (2 | )% | (2 | )% | (2 | )% | |||
Common Units in Operating Partnership | (4 | )% | (4 | )% | (5 | )% | (5 | )% | (6 | )% | |||
Other consolidated entities | (0 | )% | (0 | )% | (0 | )% | (0 | )% | (0 | )% | |||
Preferred Share dividends | (7 | )% | (7 | )% | (8 | )% | (6 | )% | (6 | )% | |||
Net Income Available to Common Shareholders | 9 | % | 8 | % | 10 | % | 11 | % | 12 | % | |||
Funds From Operations (FFO)—Diluted | 33 | % | 33 | % | 34 | % | 34 | % | 37 | % | |||
Straight line rents | (3 | )% | (1 | )% | (3 | )% | (2 | )% | (3 | )% | |||
Non-incremental capital expenditures | (4 | )% | (5 | )% | (6 | )% | (4 | )% | (4 | )% | |||
Adjusted Funds from Operations—Diluted | 27 | % | 28 | % | 26 | % | 28 | % | 30 | % | |||
Note: The above presentation does not separately report discontinued operations.
7
Quarterly Equity Analysis
(Amounts in thousands, except per share data, share prices and ratios)
| 2002 | 2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||
Common Equity—End of Quarter | ||||||||||||||||||
Common Shares(1) | 23,236 | 22,772 | 20,648 | 20,590 | 20,526 | |||||||||||||
Common Units | 9,278 | 9,607 | 9,607 | 9,617 | 9,307 | |||||||||||||
Total | 32,514 | 32,379 | 30,255 | 30,207 | 29,833 | |||||||||||||
Convertible Preferred Equity—End of Quarter | ||||||||||||||||||
Convertible Series A Preferred Shares Outstanding(2) | n/a | n/a | 0 | 0 | 0 | |||||||||||||
Conversion Ratio | n/a | n/a | 1.8748 | 1.8748 | 1.8748 | |||||||||||||
Common Shares Issued Assuming Conversion | n/a | n/a | 0 | 0 | 0 | |||||||||||||
Preferred Share Liquidation Preference | n/a | n/a | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||||||||
Convertible Series D Preferred Shares Outstanding | 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 | 1,150 | |||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||||||
Redeemable Series F Shares Outstanding(4) | 1,425 | 1,425 | 1,425 | 1,425 | n/a | |||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | n/a | |||||||||
Weighted Average Shares: | ||||||||||||||||||
Weighted Average Common Shares Outstanding | 22,704 | 20,889 | 20,186 | 20,141 | 20,077 | |||||||||||||
Weighted Average Preferred Shares Outstanding Assuming Conversion | 1,197 | 1,197 | 1,197 | 1,197 | 1,197 | |||||||||||||
Weighted Average Dilutive Options | 1,040 | 828 | 590 | 481 | 334 | |||||||||||||
Weighted Average Common Units | 9,391 | 9,607 | 9,609 | 9,415 | 9,335 | |||||||||||||
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 | 36,753 | 34,942 | 34,003 | 33,655 | 33,364 | |||||||||||||
Common Shares Trading Volume | ||||||||||||||||||
Average Daily Volume (Shares) | 76 | 116 | 23 | 30 | 24 | |||||||||||||
Average Daily Volume (Dollars in thousands) | $ | 1,042.19 | $ | 1,460.22 | $ | 261.76 | $ | 313.45 | $ | 237.66 | ||||||||
As a Percentage of Common Shares | 0.3 | % | 0.6 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
Common Share Price Range | ||||||||||||||||||
Quarterly High | $ | 14.69 | $ | 13.20 | $ | 12.71 | $ | 11.50 | $ | 10.60 | ||||||||
Quarterly Low | $ | 12.95 | $ | 11.62 | $ | 10.75 | $ | 9.86 | $ | 9.36 | ||||||||
Quarterly Average | $ | 13.78 | $ | 12.54 | $ | 11.50 | $ | 10.61 | $ | 10.10 | ||||||||
End of Quarter | $ | 14.59 | $ | 13.10 | $ | 11.87 | $ | 10.90 | $ | 10.00 | ||||||||
Capitalization | ||||||||||||||||||
Liquidation Value of Preferred Shares/Units | $ | 134,642 | $ | 134,642 | $ | 134,642 | $ | 134,642 | $ | 99,017 | ||||||||
Market Value of Common Shares/Units | 474,379 | 424,165 | 359,127 | 329,256 | 298,330 | |||||||||||||
Total Equity Market Capitalization | $ | 609,021 | $ | 558,806 | $ | 493,768 | $ | 463,898 | $ | 397,347 | ||||||||
Total Debt | $ | 633,498 | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | ||||||||
Total Market Capitalization | $ | 1,242,519 | $ | 1,132,627 | $ | 1,067,095 | $ | 972,613 | $ | 873,346 | ||||||||
Debt to Total Market Capitalization | 51.0 | % | 50.7 | % | 53.7 | % | 52.3 | % | 54.5 | % | ||||||||
Debt to Undepreciated Book Value of Real Estate Assets | 59.9 | % | 57.4 | % | 58.6 | % | 56.2 | % | 57.1 | % |
- (1)
- Net of 166,600 treasury shares as of June 30, 2002.
- (2)
- On March 5, 2002, Constellation converted its Series A Preferred Share and then sold its entire common share position.
- (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 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
PRICING MULTIPLES | |||||||||||||||||
NOI Multiple | |||||||||||||||||
(Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI | 11.48 | x | 11.70 | x | 11.00 | x | 10.93 | x | 10.82 | x | |||||||
EBITDA Multiple | |||||||||||||||||
(Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA | 12.46 | x | 12.41 | x | 11.30 | x | 11.43 | x | 10.66 | x | |||||||
FFO Multiple | |||||||||||||||||
(Quarter End Common Share Price / Ann. FFO—diluted) | 10.87 | x | 10.06 | x | 8.80 | x | 8.31 | x | 7.90 | x | |||||||
AFFO Multiple | |||||||||||||||||
(Quarter End Common Share Price / Ann. AFFO—diluted) | 13.46 | x | 11.99 | x | 11.79 | x | 10.07 | x | 9.71 | x | |||||||
NOI Yield | |||||||||||||||||
(Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 8.71 | % | 8.54 | % | 9.09 | % | 9.15 | % | 9.24 | % | |||||||
EBITDA Yield | |||||||||||||||||
(Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 8.03 | % | 8.06 | % | 8.85 | % | 8.75 | % | 9.38 | % | |||||||
FFO Yield | |||||||||||||||||
(Ann. FFO / Quarter End Common Share Price) | 9.20 | % | 9.94 | % | 11.36 | % | 12.03 | % | 12.66 | % | |||||||
AFFO Yield | |||||||||||||||||
(Ann. AFFO / Quarter End Common Share Price) | 7.43 | % | 8.34 | % | 8.48 | % | 9.93 | % | 10.30 | % | |||||||
Total Market Capitalization Per Square Foot | |||||||||||||||||
((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)(1) | $ | 147.84 | $ | 145.61 | $ | 137.76 | $ | 133.34 | $ | 129.22 | |||||||
RETURNS | |||||||||||||||||
Yield on Real Estate Owned—NOI | |||||||||||||||||
(Ann. NOI / Avg. Adjusted Gross Real Estate Investment)(2) | 10.97 | % | 10.65 | % | 10.71 | % | 11.12 | % | 10.54 | % | |||||||
Yield on Real Estate Owned—EBITDA | |||||||||||||||||
(Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2) | 10.12 | % | 10.04 | % | 10.42 | % | 10.63 | % | 10.71 | % | |||||||
Return on Book Value of Average Equity & Minority Interest | |||||||||||||||||
(Ann. EBTDA / Avg. Equity & Minority Interest) | 15.66 | % | 15.01 | % | 15.45 | % | 14.85 | % | 15.82 | % |
- (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 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
Debt Outstanding | |||||||||||||||||
Mortgage Loans | $ | 489,145 | $ | 462,287 | $ | 445,951 | $ | 475,163 | $ | 409,670 | |||||||
Construction Loans | 18,553 | 17,534 | 17,376 | 15,852 | 13,099 | ||||||||||||
Secured Revolving Credit Facility | 125,800 | 94,000 | 110,000 | 17,700 | 53,230 | ||||||||||||
$ | 633,498 | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | ||||||||
Average Outstanding Balance | |||||||||||||||||
Mortgage Loans | $ | 467,885 | $ | 452,987 | $ | 428,231 | $ | 446,784 | $ | 377,222 | |||||||
Construction Loans | 18,273 | 17,431 | 16,648 | 15,502 | 10,436 | ||||||||||||
Revolving Credit Facility | — | — | — | — | 28,445 | ||||||||||||
Secured Revolving Credit Facility | 121,403 | 108,581 | 89,110 | 52,548 | 59,123 | ||||||||||||
$ | 607,561 | $ | 578,999 | $ | 533,989 | $ | 514,834 | $ | 475,226 | ||||||||
Interest Rate Structure | |||||||||||||||||
Fixed | $ | 391,906 | $ | 340,037 | $ | 326,701 | $ | 328,029 | $ | 305,431 | |||||||
Variable | 141,592 | 83,784 | 96,626 | — | — | ||||||||||||
Variable Subject to Interest Rate Protection (1 - 4) | 100,000 | 150,000 | 150,000 | 180,686 | 170,568 | ||||||||||||
$ | 633,498 | $ | 573,821 | $ | 573,327 | $ | 508,715 | $ | 475,999 | ||||||||
% of Fixed Rate Loans(5) | 61.86 | % | 59.26 | % | 56.98 | % | 64.48 | % | 64.17 | % | |||||||
% of Variable Rate Loans | 38.14 | % | 40.74 | % | 43.02 | % | 35.52 | % | 35.83 | % | |||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||
Average Interest Rates | |||||||||||||||||
Mortgage & Construction Loans | 6.40 | % | 6.37 | % | 6.71 | % | 7.12 | % | 7.31 | % | |||||||
Revolving Credit Facility | n/a | n/a | n/a | n/a | 6.71 | % | |||||||||||
Secured Revolving Credit Facility | 6.86 | % | 7.21 | % | 7.32 | % | 6.73 | % | 6.93 | % | |||||||
Total Weighted Average | 6.47 | % | 6.52 | % | 6.85 | % | 7.08 | % | 7.22 | % | |||||||
Debt Ratios | |||||||||||||||||
Debt to Total Market Capitalization | 51.0 | % | 50.7 | % | 53.7 | % | 52.3 | % | 54.5 | % | |||||||
Debt to Undepreciated Book Value of Real Estate Assets | 59.9 | % | 57.4 | % | 58.6 | % | 56.2 | % | 57.1 | % | |||||||
Coverage Ratios (excluding capitalized interest) | |||||||||||||||||
Interest Coverage—NOI (NOI / Interest) | 2.92 | x | 2.81 | x | 2.76 | x | 2.68 | x | 2.60 | x | |||||||
Interest Coverage—EBITDA (EBITDA / Interest) | 2.69 | x | 2.65 | x | 2.68 | x | 2.57 | x | 2.64 | x | |||||||
Interest Coverage—EBITDA—YTD (EBITDA / Interest—Year-to-date) | 2.67 | x | 2.65 | x | 2.63 | x | 2.60 | x | 2.50 | x | |||||||
Debt Service Coverage—NOI (NOI / (Interest + Principal Amortization)) | 2.49 | x | 2.43 | x | 2.38 | x | 2.32 | x | 2.28 | x | |||||||
Debt Service Coverage—EBITDA (EBITDA / (Interest + Principal Amortization)) | 2.30 | x | 2.29 | x | 2.31 | x | 2.22 | x | 2.32 | x | |||||||
Fixed Charge Coverage—NOI (NOI / (Interest + Preferred Distribution)) | 2.17 | x | 2.07 | x | 2.02 | x | 2.08 | x | 2.03 | x | |||||||
Fixed Charge Coverage—EBITDA (EBITDA / (Interest + Preferred Distribution)) | 2.00 | x | 1.95 | x | 1.96 | x | 1.99 | x | 2.06 | x |
- (1)
- We purchased a $50 million 2-year cap on LIBOR at a rate of 7.0% which expired 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.
- (5)
- Excludes interest rate protection agreements.
10
Quarterly Operating Ratios
(Dollars in thousands except per share data and ratios)
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
OPERATING RATIOS | |||||||||||||||||
NOI as a % of Real Estate Revenues | |||||||||||||||||
(NOI / (Rental Revenue + Oper. Expense Reimb.)) | 71.90 | % | 70.45 | % | 69.81 | % | 69.87 | % | 70.19 | % | |||||||
EBITDA as a % of Real Estate Revenues | |||||||||||||||||
(EBITDA / (Rental Revenue + Oper. Expense Reimb.)) | 66.29 | % | 66.43 | % | 67.93 | % | 66.80 | % | 71.30 | % | |||||||
G&A as a % of Real Estate Revenues | |||||||||||||||||
(G&A / (Rental Revenue + Oper. Expense Reimb.)) | 5.27 | % | 6.29 | % | 3.49 | % | 4.20 | % | 4.63 | % | |||||||
G&A as a % of EBITDA | |||||||||||||||||
(G&A / EBITDA) | 7.94 | % | 9.47 | % | 5.13 | % | 6.29 | % | 6.49 | % | |||||||
Quarter end occupancy for operating portfolio | 94.10 | % | 93.92 | % | 96.07 | % | 97.18 | % | 96.92 | % | |||||||
Quarter end % leased for operating portfolio | 95.07 | % | 94.70 | % | 96.59 | % | 97.57 | % | 97.60 | % | |||||||
Non-Incremental Capital Expenditures | $ | 1,382 | $ | 1,618 | $ | 1,950 | $ | 1,211 | $ | 1,153 | |||||||
Non-Incremental Capital Expenditures per average square foot | $ | 0.17 | $ | 0.21 | $ | 0.26 | $ | 0.17 | $ | 0.17 | |||||||
Non-Incremental Capital Expenditures per Diluted Share | $ | 0.04 | $ | 0.05 | $ | 0.06 | $ | 0.04 | $ | 0.03 | |||||||
Non-Incremental Capital Expenditures as a % of NOI | 5.22 | % | 6.66 | % | 8.35 | % | 5.41 | % | 5.72 | % |
11
| 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||
Common Share Dividends | |||||||||||||||||
Dividends per share/unit | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.20 | |||||||
Increase over prior quarter | 0.0 | % | 0.0 | % | 0.0 | % | 5.0 | % | 0.0 | % | |||||||
Increase over prior year | 5.0 | % | 5.0 | % | 5.0 | % | 5.0 | % | 5.3 | % | |||||||
Common Dividend Payout Ratios | |||||||||||||||||
Payout—FFO—Diluted ((Dividend + Distributions)/FFO) | 60.5 | % | 65.3 | % | 60.8 | % | 62.7 | % | 62.4 | % | |||||||
Payout—AFFO—Diluted (Dividend /FAD) | 74.9 | % | 77.9 | % | 81.4 | % | 76.0 | % | 76.7 | % | |||||||
Dividend Coverage—FFO—Diluted (FFO /dividends) | 1.65 | x | 1.53 | x | 1.64 | x | 1.59 | x | 1.60 | x | |||||||
Dividend Coverage—AFFO—Diluted (AFFO/dividends) | 1.33 | x | 1.28 | x | 1.23 | x | 1.32 | x | 1.30 | x | |||||||
Common Dividend Yields | |||||||||||||||||
Dividend Yield | 5.76 | % | 6.41 | % | 7.08 | % | 7.71 | % | 8.00 | % | |||||||
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 | n/a | $ | 0.34375 | $ | 0.34375 | $ | 0.34375 | |||||||||
Preferred Share Dividend Yield | n/a | n/a | 5.50 | % | 5.50 | % | 5.50 | % | |||||||||
Quarter End Liquidation Preference | n/a | n/a | $ | 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 | |||||||||||||||||
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(2) | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.64063 | $ | 0.64063 | $ | 0.64063 | $ | 0.64063 | $ | 0.64063 | |||||||
Preferred Share Dividend Yield | 10.25 | % | 10.25 | % | 10.25 | % | 10.25 | % | 10.25 | % | |||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | |||||||
Series F Preferred Share Dividends(3) | |||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | n/a | ||||||||
Preferred Share Dividend Yield | 9.875 | % | 9.875 | % | 9.875 | % | 9.875 | % | n/a | ||||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | 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 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.
- (3)
- 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 June 30, 2002)
SHAREHOLDER CLASSIFICATION | Common Shares | Common Units | As If Converted Preferred Shares/Units | Total | Fully Diluted Ownership % of Total | |||||
---|---|---|---|---|---|---|---|---|---|---|
Insiders | 1,184,378 | 7,819,137 | — | 9,003,515 | 24.92% | |||||
Institutional Ownership | 11,690,996 | — | 3,617,472 | 15,308,468 | 42.37% | |||||
Other / Retail | 10,360,424 | 1,459,080 | — | 11,819,504 | 32.71% | |||||
23,235,798 | 9,278,217 | 3,617,472 | 36,131,487 | 100.00% | ||||||
RESEARCH COVERAGE | June 30, 2002 | March 31, 2002 | December 31, 2001 | September 30, 2001 | June 30, 2001 | |||||
---|---|---|---|---|---|---|---|---|---|---|
A. G. Edwards | x | x | x | x | x | |||||
BB&T Capital Markets | x | x | 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 | n/a | x | x | x | |||||
Legg Mason Wood Walker, Inc. | x | x | x | x | x | |||||
McDonald Investments | x | x | x | x | x | |||||
Mercury Partners, LLC | x | n/a | n/a | n/a | n/a |
Source: Institutional ownership was obtained from filed Forms 13(f) as of March 31, 2002 per Vickers Stock Research Corporation.
13
Debt Maturity Schedule—June 30, 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 | ||||||||||||
July - Dec. 2002 | $ | 3,378 | $ | 25,000 | $ | 79 | $ | — | $ | — | $ | 28,457 | ||||||
2003 | 7,348 | 25,110 | 173 | 18,301 | — | 50,932 | ||||||||||||
2004 | 8,054 | 46,315 | — | — | — | 54,369 | ||||||||||||
2005 | 7,881 | 41,567 | — | — | 125,800 | 175,248 | ||||||||||||
2006 | 7,500 | 59,975 | — | — | — | 67,475 | ||||||||||||
2007 | 6,122 | 51,455 | — | — | — | 57,577 | ||||||||||||
2008 | 4,121 | 142,737 | — | — | — | 146,858 | ||||||||||||
2009 | 524 | 52,058 | — | — | — | 52,582 | ||||||||||||
$ | 44,928 | $ | 444,217 | $ | 252 | $ | 18,301 | $ | 125,800 | $ | 633,498 | |||||||
Notes:
- (1)
- The construction loan balances as of June 30, 2002 represent the outstanding balances as of that date.
- (2)
- We have the right to extend a $10,587 construction loan for a one-year period subject to certain conditions, upon maturity in December 2002. The above table reflects this $10,492 maturity in 2003 as if the loan 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 the following interest rate protection agreements in place:
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.
14
Property Summary by Region—June 30, 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 | 2711 Technology Drive (211 NBP) | Owned | BWI Airport | MD | 2002 | M | 152,000 | |||||||||
3 | 132 National Business Parkway | Owned | BWI Airport | MD | 2000 | M | 118,456 | |||||||||
4 | 2721 Technology Drive (221 NBP) | Owned | BWI Airport | MD | 2000 | M | 118,093 | |||||||||
5 | 2701 Technology Drive (201 NBP) | Owned | BWI Airport | MD | 2001 | M | 105,332 | 12,118 | ||||||||
6 | 1306 Concourse Drive | Owned | BWI Airport | MD | 1990 | M | 114,046 | |||||||||
7 | 1304 Concourse Drive | Owned | BWI Airport | MD | 2002 | M | 64,745 | 38,219 | ||||||||
8 | 870-880 Elkridge Landing Road | Owned | BWI Airport | MD | 1981 | M | 101,785 | |||||||||
9 | 900 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 97,139 | |||||||||
10 | 1199 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 96,636 | |||||||||
11 | 920 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 96,566 | |||||||||
12 | 134 National Business Parkway | Owned | BWI Airport | MD | 1999 | M | 93,482 | |||||||||
13 | 133 National Business Parkway | Owned | BWI Airport | MD | 1997 | M | 88,666 | |||||||||
14 | 141 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 86,964 | |||||||||
15 | 135 National Business Parkway | Owned | BWI Airport | MD | 1998 | M | 86,863 | |||||||||
16 | 1302 Concourse Drive | Owned | BWI Airport | MD | 1996 | M | 84,607 | |||||||||
17 | 7467 Ridge Road | Owned | BWI Airport | MD | 1990 | M | 74,273 | |||||||||
18 | 7240 Parkway Drive | Owned | BWI Airport | MD | 1985 | M | 74,156 | |||||||||
19 | 881 Elkridge Landing Road | Owned | BWI Airport | MD | 1986 | M | 73,572 | |||||||||
20 | 1099 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 70,938 | |||||||||
21 | 131 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 68,910 | |||||||||
22 | 1190 Winterson Road | Owned | BWI Airport | MD | 1987 | M | 68,567 | |||||||||
23 | 849 International Drive | Owned | BWI Airport | MD | 1988 | M | 68,397 | |||||||||
24 | 911 Elkridge Landing Road | Owned | BWI Airport | MD | 1985 | M | 68,296 | |||||||||
25 | 1201 Winterson Road | Owned | BWI Airport | MD | 1985 | M | 67,903 | |||||||||
26 | 999 Corporate Boulevard | Owned | BWI Airport | MD | 2000 | M | 67,351 | |||||||||
27 | 7318 Parkway Drive | Owned | BWI Airport | MD | 1984 | M | 59,204 | |||||||||
28 | 7320 Parkway Drive | Owned | BWI Airport | MD | 1983 | S | 57,176 | |||||||||
29 | 900 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
30 | 930 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
31 | 901 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 57,130 | |||||||||
32 | 891 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 56,489 | |||||||||
33 | 921 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 54,057 | |||||||||
34 | 939 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 53,031 | |||||||||
35 | 938 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 52,988 | |||||||||
36 | 940 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 51,704 | |||||||||
37 | 800 International Drive | Owned | BWI Airport | MD | 1988 | S | 50,979 | |||||||||
38 | 1340 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 46,400 | |||||||||
39 | 7321 Parkway Drive | Owned | BWI Airport | MD | 1984 | S | 39,822 | |||||||||
40 | 1334 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 37,565 | |||||||||
41 | 1331 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 29,936 | |||||||||
42 | 1350 Dorsey Road | Owned | BWI Airport | MD | 1989 | S | 19,992 | |||||||||
43 | 1344 Ashton Road | Owned | BWI Airport | MD | 1989 | M | 16,865 | |||||||||
44 | 1341 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 15,841 | |||||||||
45 | 1343 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 9,962 | |||||||||
46 | 114 National Business Parkway | Owned | BWI Airport | MD | 2002 | S | 9,717 | |||||||||
Subtotal (continued on next page) | 3,281,217 | 50,337 |
15
Property Summary by Region—June 30, 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 | ||||||||
Subtotal (continued from prior page) | 3,281,217 | 50,337 | ||||||||||||||
47 | 1615 and 1629 Thames Street | Owned | Baltimore City | MD | 1989 | M | 104,115 | |||||||||
48 | 9690 Deereco Road | Owned | North Baltimore Co. | MD | 1988 | M | 133,737 | |||||||||
49 | 375 West Padonia Road | Owned | North Baltimore Co. | MD | 1986 | M | 101,133 | |||||||||
50 | 7200 Riverwood Drive | Owned | Howard Co. Perimeter | MD | 1986 | S | 160,000 | |||||||||
51 | 9140 Route 108 | Owned | Howard Co. Perimeter | MD | 1974/1985 | S | 150,000 | |||||||||
52 | 7000 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1999 | M | 145,806 | |||||||||
53 | 6731 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2002 | M | 71,243 | 52,500 | ||||||||
54 | 6940 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1999 | M | 108,737 | |||||||||
55 | 6950 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1998 | M | 107,778 | |||||||||
56 | 7067 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 82,953 | |||||||||
57 | 6750 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 78,460 | |||||||||
58 | 6700 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 75,635 | |||||||||
59 | 6740 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1992 | M | 61,957 | |||||||||
60 | 8815 Centre Park Drive | Owned | Howard Co. Perimeter | MD | 1987 | M | 53,782 | |||||||||
61 | 6716 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1990 | M | 52,002 | |||||||||
62 | 9140 Guilford Road | Owned | Howard Co. Perimeter | MD | 1983 | S | 41,566 | |||||||||
63 | 7065 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 38,560 | |||||||||
64 | 6760 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1991 | M | 37,248 | |||||||||
65 | 7063 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 36,936 | |||||||||
66 | 9160 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | M | 36,528 | |||||||||
67 | 6708 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 35,040 | |||||||||
68 | 7061 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | M | 29,604 | |||||||||
69 | 9150 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | S | 17,655 | |||||||||
70 | 6724 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 2002 | M | 16,076 | 12,236 | ||||||||
71 | 9130 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | S | 13,700 | |||||||||
Robert Fulton Drive—Phase I | JV | Howard Co. Perimeter | MD | M | 105,850 | |||||||||||
72 | 14502 Greenview Drive | Owned | Laurel | MD | 1988 | M | 71,926 | |||||||||
73 | 14504 Greenview Drive | Owned | Laurel | MD | 1985 | M | 69,194 | |||||||||
4260 Forbes Boulevard | JV | Lanham | MD | M | 54,692 | |||||||||||
74 | 6009-6011 Oxon Hill Road | Owned | Southern Prince George's County | MD | 1990 | M | 181,768 | — | ||||||||
Total Baltimore/Washington Corridor: | 5,394,356 | 275,615 | ||||||||||||||
16
Property Summary by Region—June 30, 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 | ||||||||
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 | — | ||||||||||||||
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 | 32,613 | |||||||||
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 | 28,039 | — | ||||||||
Total Greater Harrisburg: | 675,338 | — | ||||||||||||||
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 | — | ||||||||||||||
108 | TOTAL PORTFOLIO | 8,404,421 | 275,615 | |||||||||||||
17
Property Occupancy Rates by Region by Quarter
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Northern Virginia | Total Portfolio | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 2002 | |||||||||||||
Number of Buildings | 4 | 74 | 13 | 16 | 1 | 108 | |||||||
Rentable Square Feet | 960,349 | 5,394,356 | 903,972 | 675,338 | 470,406 | 8,404,421 | |||||||
Percent Occupied | 100.00 | % | 92.92 | % | 94.82 | % | 90.31 | % | 99.56 | % | 94.10 | % | |
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 | % |
18
Top Twenty Office Tenants as of June 30, 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 | 11.3 | % | $ | 16,710 | 11.9 | % | 4.0 | ||||
AT&T Local Services(4) | 7 | 451,498 | 5.7 | % | 9,159 | 6.5 | % | 6.0 | |||||
Unisys(5) | 3 | 741,284 | 9.4 | % | 7,444 | 5.3 | % | 7.0 | |||||
Dyncorp Information Systems, LLC | 1 | 244,522 | 3.1 | % | 5,384 | 3.8 | % | 8.5 | |||||
Computer Sciences Corporation | 2 | 207,232 | 2.6 | % | 4,779 | 3.4 | % | 7.5 | |||||
General Dynamics Government Corp. | 3 | 173,486 | 2.2 | % | 4,080 | 2.9 | % | 6.6 | |||||
Ciena Corporation(6) | 5 | 298,482 | 3.8 | % | 4,007 | 2.9 | % | 3.5 | |||||
Magellan Behavioral Health, Inc. | 2 | 150,622 | 1.9 | % | 3,259 | 2.3 | % | 1.6 | |||||
Booz-Allen & Hamilton | 4 | 151,960 | 1.9 | % | 3,084 | 2.2 | % | 3.0 | |||||
Northrop Grumman Systems | 3 | 125,913 | 1.6 | % | 2,922 | 2.1 | % | 5.6 | |||||
Commonwealth of Pennsylvania(4) | 9 | 185,353 | 2.3 | % | 2,624 | 1.9 | % | 6.1 | |||||
Merck & Co., Inc.(5) | 1 | 219,065 | 2.8 | % | 2,237 | 1.6 | % | 7.0 | |||||
CareFirst, Inc. and Subsidiaries | 3 | 94,223 | 1.2 | % | 2,044 | 1.5 | % | 5.5 | |||||
Bookham Technology, Inc. | 1 | 150,000 | 1.9 | % | 1,900 | 1.4 | % | 5.6 | |||||
Johns Hopkins University(4) | 4 | 81,935 | 1.0 | % | 1,798 | 1.3 | % | 4.2 | |||||
Genuity, Inc. | 2 | 47,344 | 0.6 | % | 1,641 | 1.2 | % | 1.9 | |||||
Sun Microsystems, Inc. | 2 | 60,730 | 0.8 | % | 1,484 | 1.1 | % | 3.5 | |||||
First American Credit Management Solutions, Inc. | 1 | 70,982 | 0.9 | % | 1,374 | 1.0 | % | 6.4 | |||||
Honeywell International | 1 | 145,806 | 1.8 | % | 1,334 | 1.0 | % | 3.6 | |||||
Deutsche Banc Alex. Brown | 1 | 84,354 | 1.1 | % | 1,327 | 0.9 | % | 1.9 | |||||
Subtotal Top 20 Office Tenants | 76 | 4,580,803 | 57.9 | % | 78,590 | 56.0 | % | 5.3 | |||||
All remaining tenants | 380 | 3,327,554 | 42.1 | % | 61,838 | 44.0 | % | 3.4 | |||||
Total/Weighted Average | 456 | 7,908,357 | 100.0 | % | $ | 140,428 | 100.0 | % | 4.4 | ||||
- (1)
- Total Rental Revenue is the monthly contractual base rent as of June 30, 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 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||
Office Properties: | |||||||||||||||
Greater Philadelphia | $ | 2,506 | $ | 2,506 | $ | 2,506 | $ | 2,506 | $ | 2,506 | |||||
Baltimore/Washington Corridor | 24,573 | 21,896 | 22,911 | 22,558 | 18,654 | ||||||||||
Northern/Central New Jersey | 4,604 | 4,921 | 4,786 | 4,757 | 4,998 | ||||||||||
Greater Harrisburg | 2,390 | 2,407 | 2,231 | 2,174 | 2,483 | ||||||||||
Northern Virginia | 2,661 | 2,688 | 947 | — | — | ||||||||||
Total Regional Rental Revenue | $ | 36,734 | $ | 34,418 | $ | 33,381 | $ | 31,995 | $ | 28,641 | |||||
- (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 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||
Office Properties: | ||||||||||||||||
Greater Philadelphia | $ | 2,473 | $ | 2,466 | $ | 2,478 | $ | 2,476 | $ | 2,469 | ||||||
Baltimore/Washington Corridor | 17,689 | 15,140 | 15,745 | 15,539 | 12,704 | |||||||||||
Northern/Central New Jersey | 2,930 | 3,213 | 2,890 | 2,819 | 3,173 | |||||||||||
Greater Harrisburg | 1,738 | 1,810 | 1,640 | 1,506 | 1,736 | |||||||||||
Northern Virginia | 1,550 | 1,598 | 527 | — | — | |||||||||||
Total Regional NOI | $ | 26,380 | $ | 24,227 | $ | 23,280 | $ | 22,340 | $ | 20,082 | ||||||
Other income / expenses, net | 103 | 79 | 78 | 54 | 71 | |||||||||||
Total NOI | $ | 26,483 | $ | 24,306 | $ | 23,358 | $ | 22,394 | $ | 20,153 | ||||||
20
Same Office Property Cash Net Operating Income by Quarter(1)
(Dollars in thousands)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||
Office Properties:(2) | ||||||||||||||||
Greater Philadelphia | $ | 2,409 | $ | 2,410 | $ | 2,410 | $ | 2,408 | $ | 2,364 | ||||||
Baltimore/Washington Corridor | 11,733 | 12,428 | 11,775 | 12,038 | 12,124 | |||||||||||
Northern/Central New Jersey | 2,939 | 3,221 | 2,850 | 2,779 | 2,845 | |||||||||||
Greater Harrisburg | 1,727 | 1,773 | 1,645 | 1,489 | 1,707 | |||||||||||
Total Office Properties | $ | 18,808 | $ | 19,832 | $ | 18,680 | $ | 18,714 | $ | 19,040 |
Same Office Property GAAP Net Operating Income by Quarter(1)
(Dollars in thousands)
| 2002 | 2001 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||
Office Properties:(2) | ||||||||||||||||
Greater Philadelphia | $ | 2,496 | $ | 2,496 | $ | 2,496 | $ | 2,495 | $ | 2,497 | ||||||
Baltimore/Washington Corridor | 11,932 | 12,478 | 11,984 | 12,457 | 12,554 | |||||||||||
Northern/Central New Jersey | 2,967 | 3,265 | 2,922 | 2,854 | 2,940 | |||||||||||
Greater Harrisburg | 1,760 | 1,834 | 1,654 | 1,518 | 1,757 | |||||||||||
Total Office Properties | $ | 19,155 | $ | 20,073 | $ | 19,056 | $ | 19,324 | $ | 19,748 | ||||||
- (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 | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
2nd Quarter 2002 Average | |||||||||||
Number of Buildings | 4 | 50 | 13 | 16 | 83 | ||||||
Rentable Square Feet | 960,349 | 3,946,754 | 903,972 | 674,916 | 6,485,991 | ||||||
Percent Occupied | 100.00 | % | 92.11 | % | 94.28 | % | 89.96 | % | 93.36 | % | |
1st Quarter 2002 Average | |||||||||||
Number of Buildings | 4 | 50 | 13 | 16 | 83 | ||||||
Rentable Square Feet | 960,349 | 3,945,733 | 903,972 | 674,686 | 6,484,740 | ||||||
Percent Occupied | 100.00 | % | 93.97 | % | 94.46 | % | 90.48 | % | 94.57 | % | |
4th Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 50 | 13 | 16 | 83 | ||||||
Rentable Square Feet | 960,349 | 3,945,093 | 903,972 | 675,758 | 6,485,172 | ||||||
Percent Occupied | 100.00 | % | 95.59 | % | 95.82 | % | 89.03 | % | 95.59 | % | |
3rd Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 50 | 13 | 16 | 83 | ||||||
Rentable Square Feet | 960,349 | 3,944,431 | 904,854 | 677,903 | 6,487,537 | ||||||
Percent Occupied | 100.00 | % | 98.42 | % | 95.19 | % | 87.01 | % | 97.01 | % | |
2nd Quarter 2001 Average | |||||||||||
Number of Buildings | 4 | 50 | 13 | 16 | 83 | ||||||
Rentable Square Feet | 960,349 | 3,926,683 | 904,834 | 677,606 | 6,469,472 | ||||||
Percent Occupied | 100.00 | % | 98.06 | % | 94.22 | % | 90.24 | % | 96.99 | % |
- (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 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
July 1 - December 31, 2002 | 68 | 738,443 | 9.3 | % | $ | 12,083 | 8.6 | % | $ | 16.36 | ||||
2003 | 92 | 784,293 | 9.9 | % | 14,579 | 10.4 | % | 18.59 | ||||||
2004 | 74 | 881,640 | 11.1 | % | 17,580 | 12.5 | % | 19.94 | ||||||
2005 | 71 | 795,697 | 10.1 | % | 15,373 | 10.9 | % | 19.32 | ||||||
2006 | 57 | 804,544 | 10.2 | % | 14,507 | 10.3 | % | 18.03 | ||||||
2007 | 39 | 847,427 | 10.7 | % | 15,118 | 10.8 | % | 17.84 | ||||||
2008 | 15 | 787,904 | 10.0 | % | 15,130 | 10.8 | % | 19.20 | ||||||
2009 | 15 | 1,229,339 | 15.5 | % | 14,639 | 10.4 | % | 11.91 | ||||||
2010 | 12 | 664,561 | 8.4 | % | 14,202 | 10.1 | % | 21.37 | ||||||
2011 | 2 | 45,924 | 0.6 | % | 1,086 | 0.8 | % | 23.64 | ||||||
2012 | 4 | 281,264 | 3.6 | % | 6,130 | 4.4 | % | 21.80 | ||||||
Other(3) | 7 | 47,321 | 0.6 | % | — | 0.0 | % | — | ||||||
Total/Weighted Average | 456 | 7,908,357 | 100.0 | % | $ | 140,428 | 100.0 | % | $ | 18.34 | ||||
NOTE: As of June 30, 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 June 30, 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
Year to Date Office Renewal Analysis
| Greater Philadelphia | Baltimore/Washington Corridor | Northern/Central New Jersey | Greater Harrisburg | Northern Virginia | Total Office | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
For Six Months Ended June 30, 2002: | ||||||||||||||||||||
Expiring Square Feet | — | 311,990 | 23,097 | 59,153 | — | 394,240 | ||||||||||||||
Vacated Square Feet | — | 117,256 | 12,368 | 18,846 | — | 148,470 | ||||||||||||||
Renewed Square Feet | — | 194,734 | 10,729 | 40,307 | — | 245,770 | ||||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 62.42 | % | 46.45 | % | 68.14 | % | 0.00 | % | 62.34 | % | ||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent—Straight-line | 0.00 | % | 0.28 | % | 13.82 | % | 24.34 | % | 29.72 | % | 4.84 | % | ||||||||
Change in Total Rent—Straight-line | 0.00 | % | 6.09 | % | 6.17 | % | (2.47 | )% | 29.72 | % | 6.34 | % | ||||||||
Change in Base Rent—Cash | 0.00 | % | (1.92 | )% | 9.98 | % | 16.12 | % | 30.11 | % | 2.14 | % | ||||||||
Change in Total Rent—Cash | 0.00 | % | 4.06 | % | 2.76 | % | (8.74 | )% | 30.11 | % | 3.84 | % | ||||||||
Average Capital Cost per Square Foot | $ | — | $ | 3.62 | $ | 17.09 | $ | 0.27 | $ | 0.09 | $ | 3.94 |
Quarterly Office Renewal Analysis
| Greater Philadelphia | Baltimore/Washington Corridor | Northern/Central New Jersey | Greater Harrisburg | Northern Virginia | Total Office | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended June 30, 2002: | ||||||||||||||||||||
Expiring Square Feet | — | 269,958 | 11,136 | 5,953 | — | 287,047 | ||||||||||||||
Vacated Square Feet | — | 96,131 | 2,376 | 3,566 | — | 102,073 | ||||||||||||||
Renewed Square Feet | — | 173,827 | 8,760 | 2,387 | — | 184,974 | ||||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 64.39 | % | 78.66 | % | 40.10 | % | 0.00 | % | 64.44 | % | ||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent — Straight-line | 0.00 | % | 2.04 | % | 25.04 | % | (7.04 | )% | 29.72 | % | 5.60 | % | ||||||||
Change in Total Rent—Straight-line | 0.00 | % | 8.25 | % | 20.24 | % | (5.35 | )% | 29.72 | % | 10.39 | % | ||||||||
Change in Base Rent—Cash | 0.00 | % | (1.50 | )% | 21.74 | % | (8.86 | )% | 30.11 | % | 2.34 | % | ||||||||
Change in Total Rent—Cash | 0.00 | % | 4.79 | % | 17.19 | % | (6.75 | )% | 30.11 | % | 7.23 | % | ||||||||
Average Capital Cost per Square Foot | $ | — | $ | 3.20 | $ | 22.94 | $ | 2.25 | $ | 0.09 | $ | 4.35 | ||||||||
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 | % | 0.00 | % | 56.72 | % | ||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent—Straight-line | 0.00 | % | (4.35 | )% | (2.70 | )% | 29.35 | % | 0.00 | % | 3.21 | % | ||||||||
Change in Total Rent—Straight-line | 0.00 | % | 0.55 | % | (12.76 | )% | (2.02 | )% | 0.00 | % | (1.53 | )% | ||||||||
Change in Base Rent—Cash | 0.00 | % | (3.11 | )% | (7.51 | )% | 20.16 | % | 0.00 | % | 1.71 | % | ||||||||
Change in Total Rent—Cash | 0.00 | % | 2.04 | % | (16.86 | )% | (9.06 | )% | 0.00 | % | (3.05 | )% | ||||||||
Average Capital Cost per Square Foot | $ | — | $ | 5.01 | $ | 5.67 | $ | 0.04 | $ | — | $ | 3.08 |
24
Quarterly Office Renewal Analysis (continued)
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/Central New Jersey | Greater Harrisburg | Northern Virginia | Total Office | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 | % | 0.00 | % | 79.09 | % | ||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent—Straight-line | 0.00 | % | 12.52 | % | 17.24 | % | 18.61 | % | 0.00 | % | 15.16 | % | ||||||||
Change in Total Rent—Straight-line | 0.00 | % | 9.42 | % | 6.74 | % | 17.70 | % | 0.00 | % | 12.58 | % | ||||||||
Change in Base Rent—Cash | 0.00 | % | 5.95 | % | 11.02 | % | 5.78 | % | 0.00 | % | 6.08 | % | ||||||||
Change in Total Rent—Cash | 0.00 | % | 3.10 | % | 1.07 | % | 5.08 | % | 0.00 | % | 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 | n/a | 288,634 | ||||||||||||||
Vacated Square Feet | — | 122,030 | — | — | n/a | 122,030 | ||||||||||||||
Renewed Square Feet | — | 60,884 | 7,777 | 97,943 | n/a | 166,604 | ||||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 33.29 | % | 100.00 | % | 100.00 | % | n/a | 57.72 | % | |||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent—Straight-line | 0.00 | % | 13.01 | % | 25.29 | % | 8.18 | % | n/a | 11.93 | % | |||||||||
Change in Total Rent—Straight-line | 0.00 | % | 10.17 | % | 15.05 | % | 6.47 | % | n/a | 9.07 | % | |||||||||
Change in Base Rent—Cash | 0.00 | % | 8.22 | % | 18.70 | % | 5.90 | % | n/a | 7.87 | % | |||||||||
Change in Total Rent—Cash | 0.00 | % | 5.76 | % | 9.46 | % | 4.64 | % | n/a | 5.51 | % | |||||||||
Average Capital Cost per Square Foot | $ | — | $ | 7.34 | $ | 5.67 | $ | 0.95 | n/a | $ | 4.40 | |||||||||
Quarter Ended June 30, 2001: | ||||||||||||||||||||
Expiring Square Feet | — | 174,078 | 22,678 | 45,325 | n/a | 242,081 | ||||||||||||||
Vacated Square Feet | — | 16,922 | 6,050 | 33,026 | n/a | 55,998 | ||||||||||||||
Renewed Square Feet | — | 157,156 | 16,628 | 12,299 | n/a | 186,083 | ||||||||||||||
Retention Rate (% based upon square feet) | 0.00 | % | 90.28 | % | 73.32 | % | 27.14 | % | n/a | 76.87 | % | |||||||||
Renewal & Retenanted Space: | ||||||||||||||||||||
Change in Base Rent—Straight-line | 0.00 | % | 24.86 | % | 38.02 | % | 13.69 | % | n/a | 26.15 | % | |||||||||
Change in Total Rent—Straight-line | 0.00 | % | 19.76 | % | 32.98 | % | 10.21 | % | n/a | 21.02 | % | |||||||||
Change in Base Rent—Cash | 0.00 | % | 19.81 | % | 34.23 | % | 4.57 | % | n/a | 21.00 | % | |||||||||
Change in Total Rent—Cash | 0.00 | % | 15.52 | % | 29.50 | % | 2.37 | % | n/a | 16.63 | % | |||||||||
Average Capital Cost per Square Foot | $ | — | $ | 3.87 | $ | 14.05 | $ | 6.50 | n/a | $ | 5.58 |
25
Acquisition Summary as of June 30, 2002
(Dollars in Thousands)
| Submarket | Acquisition Date | Square Feet | Occupied Sq. Ft. at Acquisition | Occupancy Percentage at Acquisition | June 30, 2002 Occupancy Percentage | Investment(1) | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Wholly Owned Portfolio: | ||||||||||||||||
9130 Guilford Road | Howard County Perimeter | 4/4/2002 | 13,700 | 13,700 | 100.0 | % | 100.0 | % | $ | 1,447 | ||||||
9140 Guilford Road | Howard County Perimeter | 4/4/2002 | 41,566 | 38,757 | 93.2 | % | 93.2 | % | 4,391 | |||||||
9150 Guilford Road | Howard County Perimeter | 4/4/2002 | 17,655 | 17,655 | 100.0 | % | 100.0 | % | 1,865 | |||||||
9160 Guilford Road | Howard County Perimeter | 4/4/2002 | 36,528 | 36,528 | 100.0 | % | 100.0 | % | 3,859 | |||||||
7320 Parkway | BWI Airport | 4/4/2002 | 57,176 | 57,176 | 100.0 | % | 100.0 | % | 4,957 | |||||||
7000 Columbia Gateway Drive | Howard County Perimeter | 5/31/2002 | 145,806 | 145,806 | 100.0 | % | 100.0 | % | 16,196 | |||||||
Total | 312,431 | 309,622 | 99.1 | % | 99.1 | % | $ | 32,715 | ||||||||
- (1)
- Initial investment recorded by property as of June 30, 2002 for asset purchase.
NOTE: COPT classifies its acquisitions by type—entity, portfolio or individual acquisitions. Entity acquisitions are defined as mergers of significant portfolios of $100+ million with strong management organizations and a regional presence.
26
Development Summary as of June 30, 2002
(Dollars in thousands except square feet and per square foot data)
Property and Location | Submarket | Owned or Joint Venture (JV) | Total Rentable Square Feet | Square Feet Under Development | Operational Square Feet | Percentage Leased or Committed | Anticipated Cost per Rentable Square Foot | Anticipated Cost | Cost to date | Outstanding Loan as of 6/30/2002 | Anticipated Stabilization/ Delivery | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Under Construction | ||||||||||||||||||||||||||||
4260 Forbes Boulevard—Phase I Lanham, Maryland(1) | Lanham | JV | 54,692 | 54,692 | — | 60.49 | % | $ | 112 | $ | 6,142 | $ | 5,376 | $ | 5,032 | Lease-up October 2002 | ||||||||||||
1304 Concourse Drive Linthicum, MD(2) | BWI Airport | Owned | 102,964 | 38,219 | 64,745 | 62.88 | % | 162 | 16,692 | 14,381 | 7,967 | Lease-up November 2002 | ||||||||||||||||
6724 Alexander Bell Drive(3) Columbia, Maryland | Howard County Perimeter | Owned | 28,312 | 12,236 | 16,076 | 62.18 | % | 194 | 5,497 | 5,335 | — | Lease-up November 2002 | ||||||||||||||||
6731 Columbia Gateway Drive Columbia, Maryland(4) | Howard County Perimeter | Owned | 123,743 | 52,500 | 71,243 | 57.57 | % | 203 | 25,136 | 20,051 | 10,586 | Lease-up February 2003 | ||||||||||||||||
Robert Fulton Drive—Phase I Columbia, Maryland(5) | Howard County Perimeter | JV | 105,850 | 105,850 | — | 0.00 | % | 117 | 12,339 | 8,893 | 6,616 | Lease-up March 2003 | ||||||||||||||||
TOTAL/AVERAGE | 415,561 | 263,497 | 152,064 | 39.25 | % | $ | 158 | $ | 65,806 | $ | 54,036 | $ | 30,201 | |||||||||||||||
- (1)
- The total loan commitment of $9,026 and the outstanding loan balance cover phases I and II of this property.
- (2)
- Total loan commitment for this property is $10,400.
- (3)
- We purchased this property for redevelopment in May 2001. 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 June 30, 2002.
- (4)
- Total loan commitment for this property is $15,750.
- (5)
- The total loan commitment of $14,000 and the outstanding loan balance cover phases I and II of this property.
27
Joint Venture Summary as of June 30, 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 6/30/02 | Recourse to COPT | Option to Acquire Partner's Interest | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4260 Forbes Boulevard (Phase I) Lanham, Maryland(1) | 80% | Lease-Up | 54,692 | $ | 907 | $ | 5,032 | Yes, 50% | Yes | ||||||||||
Robert Fulton Drive (Phase I) Columbia, Maryland(1) | 80% | Construction/ Development | 105,850 | 4 acres | 4,043 | 6,616 | Yes, 80% | Yes | |||||||||||
MOR Montpelier 3 LLC Laurel, Maryland | 50% | Development | 2 acres | 298 | 270 | No | Yes | ||||||||||||
Gateway 70 Columbia, Maryland | 80% | Development | 12 acres | 2,409 | — | N/A | Yes | ||||||||||||
140 NBP Annapolis Junction, Maryland | 20% | Development | 8 acres | 3,851 | — | N/A | No | ||||||||||||
TOTAL | $ | 11,508 | $ | 11,918 | |||||||||||||||
- (1)
- The off-balance sheet debt covers phases I and II of these properties.
28
Corporate Office Properties Trust Index to Supplemental Information (Unaudited) June 30, 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)
Quarterly Dividend Analysis
Investor Composition and Analyst Coverage (as of June 30, 2002)
Debt Maturity Schedule—June 30, 2002 (Dollars in thousands)
Property Summary by Region—June 30, 2002
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of June 30, 2002 (Dollars and Square Feet in thousands)
Average Occupancy Rates by Region for Same Office Properties(1)
Office Lease Expiration Analysis by Year
Year to Date Office Renewal Analysis
Quarterly Office Renewal Analysis
Quarterly Office Renewal Analysis (continued)
Acquisition Summary as of June 30, 2002 (Dollars in Thousands)
Development Summary as of June 30, 2002 (Dollars in thousands except square feet and per square foot data)
Joint Venture Summary as of June 30, 2002 (Dollars in thousands except acreage and square feet)