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Exhibit 99.1
Supplemental Information
(Unaudited)
March 31, 2003
Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
March 31, 2003
| Page | ||
---|---|---|---|
Highlights and Discussion | |||
Reporting Period Highlights — First Quarter 2003 | 1 | ||
Subsequent Events | 3 | ||
Financial Statements | |||
Quarterly Selected Financial Summary Data | 4 | ||
Quarterly Consolidated Balance Sheets | 5 | ||
Quarterly Consolidated Statement of Net Income Available to Common Shareholders | 6 | ||
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) | 7 | ||
Quarterly Consolidated Statements of Operations and FFO per Diluted Share | 8 | ||
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues | 9 | ||
Selected Financial Analyses | |||
Quarterly Equity Analysis | 10 | ||
Quarterly Valuation Analysis | 11 | ||
Quarterly Debt Analysis | 12 | ||
Quarterly Operating Ratios | 13 | ||
Quarterly Dividend Analysis | 14 | ||
Investor Composition and Analyst Coverage | 15 | ||
Debt Maturity Schedule — March 31, 2003 | 16 | ||
Portfolio Summary | |||
Property Summary by Region — March 31, 2003 | 17 | ||
Property Occupancy Rates by Region by Quarter | 20 | ||
Top Twenty Office Tenants as of March 31, 2003 | 21 | ||
Total Rental Revenue and Net Operating Income by Geographic Region by Quarter | 22 | ||
Same Office Property Cash and GAAP Net Operating Income by Quarter | 23 | ||
Average Occupancy Rates by Region for Same Office Properties | 24 | ||
Office Lease Expiration Analysis by Year | 25 | ||
Quarterly Office Renewal Analysis | 26 | ||
Year to Date Acquisition and Disposition Summary as of March 31, 2003 | 28 | ||
Development Summary as of March 31, 2003 | 29 | ||
Year to Date Development Placed into Service as of March 31, 2003 | 30 | ||
Joint Venture Summary as of March 31, 2003 | 31 | ||
Reconciliations of Non GAAP Measurements | 32 | ||
Definitions | 33 |
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 ("SEC") 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 ormaryellen.fowler@copt.com. Reconciliations between GAAP and non GAAP measurements along with definitions have been provided on pages 32 and 33 for certain terms used herein.
Reporting Period Highlights — First Quarter 2003
The information reported in our release of earnings reflects a change in the classification of revenues and expenses associated with our accounting for in-place operating leases of acquired properties under Statement of Financial Accounting Standards No. 141, "Business Combinations" ("SFAS 141") from the classification used in our previous filings with the SEC and earnings releases for the periods ending between January 1, 2002 and December 31, 2002. This change in classification does not change net income, earnings per share, adjusted funds from operations, cash flow from operations and net cash flows previously reported by us for the periods ending between January 1, 2002 and December 31, 2002. However, our FFO, rental revenue and depreciation expense were increased as a result of this reclassification.
Financial Results
- •
- Reported Net Income Available to Common Shareholders — diluted of $5,454,000 or $.22 per share for the first quarter of 2003 as compared to $2,762,000 or $.13 per share for the comparable 2002 period, representing an increase of 69.2% per share. We recognized $3,415,000 of gains on the sales of real estate in the first quarter of 2003 as compared to $946,000 of gains realized in the first quarter of 2002.
- •
- Recorded SFAS 141 revenues of $549,000 and $226,000 in the first quarter of 2003 and 2002, respectively, which increased FFO.
- •
- Reported FFO — diluted of $13,621,000 or $.37 per share/unit for the first quarter of 2003 as compared to $11,557,000 or $.33 per share/unit for the comparable 2002 period, as restated for the effects of SFAS 141, representing an increase of 12.1% per share/unit. FFO — diluted increased $2,064,000, or 17.9%, over the comparable 2002 period.
- •
- Reported AFFO — diluted of $9,139,000 for the first quarter of 2003 as compared to $9,499,000 for the comparable 2002 period, representing a decrease of (3.8)%. The relocation of Ameritrade Holding Corporation to 6940 Columbia Gateway and subsequent retenanting by Harris Corporation and the United States of America in the National Business Park represented $1,033,000 of the $2,756,000 of capital expenditures incurred in the first quarter 2003. Additionally, we realized $514,000 of straight-line rent in the first quarter of 2003 associated with our lease with the United States of America at 9140 Route 108 which commenced in January 2003 but will not remit rent until July 2003.
- •
- Our FFO payout ratio improved to 58.1% for the first quarter of 2003 as compared to 64.3% for the comparable 2002 period. However, our AFFO payout ratio increased to 86.5% as compared to 78.2% for the comparable 2002 period.
Financing and Capital Transactions
- •
- During the quarter, we closed a $25.0 million line of credit with Wachovia Bank, National Association which is secured by pledged membership interests for certain previously unencumbered properties. This line of credit matures in January 2005 and bears interest at varying LIBOR rates,
1
depending upon corporate leverage levels. As of March 31, 2003, we have borrowed $18.9 million under this line of credit.
- •
- We executed a one-year interest rate swap agreement for the notional amount of $50.0 million that fixes the one-month LIBOR rate at 1.52% per annum, commencing in January 2003.
- •
- As of March 31, 2003, our debt to market capitalization is 53.2% and our debt to undepreciated book value of real estate assets is 61.6%. We achieved an EBITDA interest coverage ratio of 2.62x and an EBITDA fixed charge coverage ratio of 2.01x for this quarter.
Operations
- •
- Overall occupancy was 90.8% and our portfolio was 92.8% leased as of March 31, 2003. Occupancy was adversely impacted by 1.7% for development square feet placed into service during this quarter and .5% for the space under construction to accommodate Ameritrade's relocation.
- •
- We experienced unusually high snow and ice removal costs in the first quarter of 2003 of $1,932,000 as compared to $182,000 for the comparable 2002 period, resulting in $1,750,000 of additional snow and ice removal costs. These costs were partially offset by higher tenant recoveries revenues.
- •
- Our same property cash NOI decreased by (3.7)% as compared to the quarter ended March 31, 2002 for the 93 properties comprising our same property portfolio. Our average occupancy for this same property portfolio dropped from 92.4% for the first quarter 2002 to 91.9% for the first quarter 2003. Our same property portfolio represents 80.3% of our total square feet as of March 31, 2003.
- •
- Weighted average lease term of our office portfolio is 4.5 years as of March 31, 2003, with an average contractual rental rate (including tenant reimbursements of operating costs) of $19.12 per square foot.
- •
- We renewed 37.4% of our office leases (based upon square footage) with an average capital cost of $4.32 per square foot during the first quarter. For our renewed and retenanted space, we realized changes in base rent and total rent on a straight-line basis of .1% and (1.4)%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis decreased (9.1)% and (10.0)%, respectively, on this same space.
Acquisitions / Dispositions
- •
- In March 2003, we acquired a 155,000 square foot building located in Annapolis, Maryland for $18.0 million, marking our entrance into the Annapolis submarket of the B/W Corridor. This property is 100% occupied by USinternetworking, Inc. and serves as their headquarters and operations center. Development potential exists on the 12 acre parcel but no immediate development is planned.
- •
- We sold our 181,768 square foot building located in Southern Prince George's County and two development land parcels for $21,288,000 and realized a total gain of $3,388,000, of which $566,000 is included in FFO. This disposition of the building and two land parcels provided $8,288,000 of cash proceeds, after debt repayment, and eliminates our ownership in this non-core market.
- •
- We contributed our previously wholly-owned property located at 695 Route 46 into a joint venture in exchange for $19,960,000 and a 20% interest. The gain on this sale has been deferred due to our remaining investment. We considered this property a non-core asset and we realized cash proceeds, after debt repayment, of $7,285,000.
Development
- •
- In January 2003, we closed on the initial phase of a purchase agreement to acquire up to 108 acres of land adjacent to the National Business Park. This $21.0 million purchase price for the initial phase was funded with $2.6 million of cash and an $18.4 million, five-year seller loan, with a fixed interest rate of 3.0%. This initial phase can accommodate 900,000 square feet of development. Closing of the second phase is contingent upon subdivision approval.
2
- •
- We signed a lease with The Titan Corporation for the entire 156,730 square foot building to be built at 2720 Technology Drive (known as 220 NBP) in our National Business Park. We anticipate groundbreaking for this development in the second quarter of 2003 and stabilization in the fourth quarter of 2004. We contributed this property into a joint venture in January 2003 in exchange for a 20% interest and $4.0 million.
- •
- We placed 155,691 square feet of development space into service during the quarter, including 105,850 square feet held through joint venture interests. Although 36.2% of this space is already leased, this unoccupied square footage reduced our occupancy by 1.7% during this quarter.
Subsequent Events
- •
- In April 2003, we executed a three-year lease with Northrop Grumman Systems Corporation for the entire building located at 921 Elkridge Landing Road, consisting of 54,175 square feet, in the BWI Airport submarket. This property was vacant the entire first quarter of 2003. Occupancy is anticipated in the second quarter of 2003.
- •
- We signed a lease with General Dynamics to release 46,400 square feet scheduled to expire in April 2003. This lease represents the entire building at 1340 Ashton Road and reduces our exposure to leased square feet expiring in the second quarter of 2003 by 15.1%. Occupancy is anticipated to occur in May 2003.
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.
3
Quarterly Selected Financial Summary Data
Dollars in thousands)
| 2003 | 2002 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Total Revenues from Real Estate Operations | $ | 42,412 | $ | 42,367 | $ | 39,031 | $ | 38,160 | $ | 34,725 | |||||||
Net Operating Income from Real Estate Operations | 28,410 | 29,987 | 26,670 | 27,808 | 24,532 | ||||||||||||
EBITDA | 26,808 | 28,235 | 26,789 | 25,744 | 23,145 | ||||||||||||
Net Income before Preferred Dividends | 7,987 | 5,960 | 6,162 | 5,884 | 5,295 | ||||||||||||
Preferred Dividends | (2,533 | ) | (2,534 | ) | (2,533 | ) | (2,534 | ) | (2,533 | ) | |||||||
Net Income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | |||||||
Net Income Available to Common Shareholders — per diluted share | $ | 0.22 | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 0.13 | |||||||
Funds From Operations (FFO) — Diluted | $ | 13,621 | $ | 14,298 | $ | 13,356 | $ | 13,499 | $ | 11,557 | |||||||
FFO per diluted share | $ | 0.37 | $ | 0.39 | $ | 0.36 | $ | 0.37 | $ | 0.33 | |||||||
FFO — Diluted, as previously reported | n/a | $ | 13,985 | $ | 12,991 | $ | 12,331 | $ | 11,373 | ||||||||
FFO per diluted share, as previously reported | n/a | $ | 0.38 | $ | 0.35 | $ | 0.34 | $ | 0.33 | ||||||||
Adjusted FFO — Diluted | $ | 9,139 | $ | 11,565 | $ | 10,474 | $ | 9,802 | $ | 9,499 | |||||||
Payout Ratios: | |||||||||||||||||
FFO — Diluted (A) | 58.06 | % | 55.06 | % | 58.88 | % | 55.26 | % | 64.31 | % | |||||||
AFFO — Diluted (B) | 86.53 | % | 68.08 | % | 75.08 | % | 76.11 | % | 78.24 | % | |||||||
Total Dividends/Distributions | $ | 10,222 | $ | 10,196 | $ | 10,191 | $ | 9,857 | $ | 9,829 |
- (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 and including dividends on restricted shares for the 3rd and 4th quarters of 2002 and 1st quarter of 2003) 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 and including dividends on restricted shares for the 3rd and 4th quarters of 2002 and 1st quarter of 2003) by AFFO diluted.
Note: The above presentation does not separately report discontinued operations.
4
Quarterly Consolidated Balance Sheets
(Dollars in thousands except per share data)
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Assets | ||||||||||||||||||
Investment in real estate: | ||||||||||||||||||
Land — operational | $ | 192,717 | $ | 195,021 | $ | 194,045 | $ | 179,027 | $ | 165,685 | ||||||||
Land — development | 43,233 | 24,998 | 25,014 | 22,891 | 29,544 | |||||||||||||
Construction in progress | 5,334 | 9,926 | 10,536 | 14,718 | 38,140 | |||||||||||||
Buildings and improvements | 897,957 | 897,280 | 891,962 | 830,268 | 755,597 | |||||||||||||
Investment in and advances to unconsolidated real estate joint ventures | 9,679 | 7,999 | 8,656 | 11,508 | 10,740 | |||||||||||||
Less: accumulated depreciation | (80,513 | ) | (76,095 | ) | (68,968 | ) | (63,101 | ) | (57,245 | ) | ||||||||
Net investment in real estate | 1,068,407 | 1,059,129 | 1,061,245 | 995,311 | 942,461 | |||||||||||||
Cash and cash equivalents | 6,282 | 5,991 | 7,664 | 4,256 | 4,250 | |||||||||||||
Restricted cash | 14,569 | 9,739 | 8,149 | 6,596 | 6,977 | |||||||||||||
Accounts receivable, net | 7,629 | 3,509 | 5,197 | 3,953 | 4,909 | |||||||||||||
Investment in and advances to other unconsolidated entities | 1,621 | 1,621 | 2,092 | 2,107 | 2,105 | |||||||||||||
Deferred rent receivable | 14,278 | 13,698 | 13,395 | 12,636 | 11,651 | |||||||||||||
Deferred charges, net | 21,250 | 19,848 | 19,944 | 19,877 | 18,175 | |||||||||||||
Prepaid and other assets | 12,246 | 11,260 | 9,878 | 4,821 | 10,991 | |||||||||||||
Furniture, fixtures and equipment, net of accumulated depreciation | 1,565 | 1,676 | 1,758 | 1,783 | 1,717 | |||||||||||||
Total assets | $ | 1,147,847 | $ | 1,126,471 | $ | 1,129,322 | $ | 1,051,340 | $ | 1,003,236 | ||||||||
Liabilities and beneficiaries' equity | ||||||||||||||||||
Liabilities: | ||||||||||||||||||
Mortgage loans payable | $ | 707,990 | $ | 705,056 | $ | 710,033 | $ | 633,498 | $ | 573,821 | ||||||||
Accounts payable and accrued expenses | 12,040 | 11,670 | 8,448 | 7,943 | 11,355 | |||||||||||||
Rents received in advance and security deposits | 9,168 | 8,253 | 7,467 | 5,514 | 6,805 | |||||||||||||
Deferred revenue associated with acquired properties | 11,147 | — | — | — | — | |||||||||||||
Dividends/distributions payable | 9,819 | 9,794 | 9,789 | 9,455 | 9,426 | |||||||||||||
Fair value of derivatives | 793 | 494 | 1,044 | 1,970 | 2,720 | |||||||||||||
Other liabilities | 6,157 | 1,821 | 1,673 | 873 | 7,171 | |||||||||||||
Total liabilities | 757,114 | 737,088 | 738,454 | 659,253 | 611,298 | |||||||||||||
Minority interests: | ||||||||||||||||||
Preferred Units in the Operating Partnership | 24,367 | 24,367 | 24,367 | 24,367 | 24,367 | |||||||||||||
Common Units in the Operating Partnership | 76,687 | 76,519 | 76,518 | 79,150 | 81,905 | |||||||||||||
Other consolidated partnerships | — | — | — | 229 | 286 | |||||||||||||
Total minority interests | 101,054 | 100,886 | 100,885 | 103,746 | 106,558 | |||||||||||||
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, 2003) | — | — | — | — | — | |||||||||||||
1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of March 31, 2003) | 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, 2003) | 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, 2003) | 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 March 31, 2003) | 14 | 14 | 14 | 14 | 14 | |||||||||||||
Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 23,765,778 shares issued as of March 31, 2003) | 239 | 238 | 237 | 234 | 229 | |||||||||||||
Treasury Shares, at cost (166,600 shares as of March 31, 2003) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | (1,415 | ) | ||||||||
Additional paid-in capital | 315,781 | 313,786 | 313,862 | 311,391 | 307,500 | |||||||||||||
Cumulative dividends in excess of net income | (20,752 | ) | (21,067 | ) | (19,379 | ) | (17,899 | ) | (16,446 | ) | ||||||||
Value of unearned restricted Common Share grants | (3,657 | ) | (2,739 | ) | (2,739 | ) | (2,739 | ) | (2,739 | ) | ||||||||
Accumulated other comprehensive loss | (560 | ) | (349 | ) | (626 | ) | (1,274 | ) | (1,792 | ) | ||||||||
Total beneficiaries' equity | 289,679 | 288,497 | 289,983 | 288,341 | 285,380 | |||||||||||||
Total beneficiaries' equity and minority interests | 390,733 | 389,383 | 390,868 | 392,087 | 391,938 | |||||||||||||
Total liabilities and beneficiaries' equity | $ | 1,147,847 | $ | 1,126,471 | $ | 1,129,322 | $ | 1,051,340 | $ | 1,003,236 | ||||||||
5
Quarterly Consolidated Statements of Net Income Available to Common Shareholders
(Dollars and units in thousands)
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Real Estate Operations | ||||||||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 35,989 | $ | 37,093 | $ | 33,768 | $ | 33,668 | $ | 29,891 | ||||||||
Tenant recoveries and other revenue | 5,529 | 4,283 | 4,297 | 3,514 | 3,822 | |||||||||||||
Revenues from Real Estate Operations | 41,518 | 41,376 | 38,065 | 37,182 | 33,713 | |||||||||||||
Expenses | ||||||||||||||||||
Property Operating | 13,654 | 12,034 | 11,994 | 10,025 | 9,876 | |||||||||||||
Interest | 10,135 | 10,995 | 10,489 | 9,008 | 8,575 | |||||||||||||
Depreciation and amortization | 8,633 | 9,267 | 7,915 | 8,575 | 7,243 | |||||||||||||
Expenses from Real Estate Operations | 32,422 | 32,656 | 30,398 | 27,608 | 25,694 | |||||||||||||
Earnings from real estate operations before equity in income of unconsolidated real estate joint-ventures | 9,096 | 8,720 | 7,667 | 9,574 | 8,019 | |||||||||||||
Equity in income of unconsolidated real estate joint ventures | (153 | ) | 35 | 138 | (22 | ) | 18 | |||||||||||
Earnings from real estate operations | 8,943 | 8,755 | 7,805 | 9,552 | 8,037 | |||||||||||||
(Losses) income from service operations | (81 | ) | (696 | ) | 15 | (104 | ) | (90 | ) | |||||||||
General and administrative | (1,948 | ) | (1,772 | ) | (815 | ) | (1,940 | ) | (2,170 | ) | ||||||||
Income before gain on sales of real estate, minority interests, income taxes and discontinued operations | 6,914 | 6,287 | 7,005 | 7,508 | 5,777 | |||||||||||||
Gains on sales of real estate | 404 | 822 | 796 | — | 946 | |||||||||||||
Income before minority interests, income taxes and discontinued operations | 7,318 | 7,109 | 7,801 | 7,508 | 6,723 | |||||||||||||
Minority interests | (1,787 | ) | (1,752 | ) | (1,898 | ) | (1,934 | ) | (1,771 | ) | ||||||||
Income before income taxes and discontinued operations | 5,531 | 5,357 | 5,903 | 5,574 | 4,952 | |||||||||||||
Income tax benefit (expense), net | 21 | 199 | (9 | ) | 25 | 27 | ||||||||||||
Income before discontinued operations | 5,552 | 5,556 | 5,894 | 5,599 | 4,979 | |||||||||||||
Discontinued operations, net | 2,435 | 404 | 268 | 285 | 316 | |||||||||||||
Net income | 7,987 | 5,960 | 6,162 | 5,884 | 5,295 | |||||||||||||
Preferred Share dividends | (2,533 | ) | (2,534 | ) | (2,533 | ) | (2,534 | ) | (2,533 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | ||||||||
For EPS Computations: | ||||||||||||||||||
Numerator: | ||||||||||||||||||
Net income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | ||||||||
Dividends on convertible preferred shares | 136 | 136 | 136 | 136 | — | |||||||||||||
Expense on dilutive options | — | — | (6 | ) | — | — | ||||||||||||
Numerator for Dilutive EPS Computation | $ | 5,590 | $ | 3,562 | $ | 3,759 | $ | 3,486 | $ | 2,762 | ||||||||
Denominators | ||||||||||||||||||
Weighted Average Common Shares—Basic | 23,323 | 23,234 | 23,029 | 22,704 | 20,889 | |||||||||||||
Dilutive options | 972 | 898 | 923 | 971 | 765 | |||||||||||||
Preferred shares outstanding assuming conversion | 1,197 | 1,197 | 1,197 | 1,197 | — | |||||||||||||
Weighted Average Common Shares—Diluted | 25,492 | 25,329 | 25,149 | 24,872 | 21,654 | |||||||||||||
Net Income Available Sommon Shareholders per diluted share | $ | 0.22 | $ | 0.14 | $ | 0.15 | $ | 0.14 | $ | 0.13 |
6
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)
(Dollars and shares in thousands)
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 36,793 | $ | 37,974 | $ | 34,646 | $ | 34,545 | $ | 30,764 | ||||||||
Tenant recoveries and other revenue | 5,619 | 4,393 | 4,385 | 3,615 | 3,961 | |||||||||||||
Total Revenues from Real Estate Operations | 42,412 | 42,367 | 39,031 | 38,160 | 34,725 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 5,583 | 4,908 | 5,859 | 4,284 | 4,473 | |||||||||||||
Repairs and maintenance | 5,918 | 5,009 | 4,054 | 4,007 | 3,721 | |||||||||||||
Real estate taxes | 2,501 | 2,463 | 2,448 | 2,061 | 1,999 | |||||||||||||
Total Property Expenses from Real Estate Operations | 14,002 | 12,380 | 12,361 | 10,352 | 10,193 | |||||||||||||
Net Operating Income from Real Estate Operations | 28,410 | 29,987 | 26,670 | 27,808 | 24,532 | |||||||||||||
General and administrative | (1,948 | ) | (1,772 | ) | (815 | ) | (1,940 | ) | (2,170 | ) | ||||||||
Equity in income of unconsol. real estate joint ventures | (153 | ) | 35 | 138 | (22 | ) | 18 | |||||||||||
Earnings from service companies | (81 | ) | (696 | ) | 15 | (104 | ) | (90 | ) | |||||||||
Merchant sales and real estate services | 580 | 681 | 781 | 2 | 855 | |||||||||||||
EBITDA | 26,808 | 28,235 | 26,789 | 25,744 | 23,145 | |||||||||||||
Interest expense | (10,235 | ) | (11,065 | ) | (10,563 | ) | (9,082 | ) | (8,648 | ) | ||||||||
Series B, E & F Preferred Share dividends | (2,397 | ) | (2,398 | ) | (2,398 | ) | (2,397 | ) | (2,397 | ) | ||||||||
Amortization of deferred financing costs | (589 | ) | (708 | ) | (559 | ) | (706 | ) | (528 | ) | ||||||||
Income tax (expense) benefit | 29 | 282 | (11 | ) | 36 | 40 | ||||||||||||
Expense associated with options | 6 | 8 | 3 | 12 | 14 | |||||||||||||
Dividends on restricted shares | 83 | 75 | 71 | — | — | |||||||||||||
Depreciation on unconsolidated real estate entities | 36 | 40 | 40 | 21 | 64 | |||||||||||||
Minority interestholders' share of operations | — | — | 104 | (14 | ) | (31 | ) | |||||||||||
Depreciation of corporate FF&E | (120 | ) | (171 | ) | (120 | ) | (115 | ) | (102 | ) | ||||||||
Funds From Operations (FFO) — Diluted | 13,621 | 14,298 | 13,356 | 13,499 | 11,557 | |||||||||||||
Depreciation and other amortization | (7,944 | ) | (8,765 | ) | (7,384 | ) | (7,918 | ) | (6,765 | ) | ||||||||
Gain on investment property sales | 2,843 | 156 | 19 | — | 93 | |||||||||||||
Expense associated with options | (6 | ) | (8 | ) | (3 | ) | (12 | ) | (14 | ) | ||||||||
Dividends on restricted shares | (83 | ) | (75 | ) | (71 | ) | — | — | ||||||||||
Depreciation on unconsolidated real estate entities | (36 | ) | (40 | ) | (40 | ) | (21 | ) | (64 | ) | ||||||||
Minority interestholders' share of operations | — | — | (104 | ) | 14 | 31 | ||||||||||||
Series B, E & F Preferred Share dividends | 2,397 | 2,398 | 2,398 | 2,397 | 2,397 | |||||||||||||
Income Before Minority Interests and Preferred Share Dividends | 10,792 | 7,964 | 8,171 | 7,959 | 7,235 | |||||||||||||
Minority Interests: | ||||||||||||||||||
Preferred Units in Operating Partnership | (572 | ) | (571 | ) | (572 | ) | (572 | ) | (572 | ) | ||||||||
Common Units in Operating Partnership | (2,233 | ) | (1,433 | ) | (1,541 | ) | (1,489 | ) | (1,337 | ) | ||||||||
Other consolidated entities | — | — | 104 | (14 | ) | (31 | ) | |||||||||||
Preferred Share dividends | (2,533 | ) | (2,534 | ) | (2,533 | ) | (2,534 | ) | (2,533 | ) | ||||||||
Net Income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | ||||||||
Funds From Operations (FFO) — Diluted | $ | 13,621 | $ | 14,298 | $ | 13,356 | $ | 13,499 | $ | 11,557 | ||||||||
Straight line rents | (1,177 | ) | (317 | ) | (867 | ) | (991 | ) | (214 | ) | ||||||||
Amortization of origination value of leases on acquired properties | (549 | ) | (425 | ) | (366 | ) | (1,324 | ) | (226 | ) | ||||||||
Non-incremental capital expenditures | (2,756 | ) | (1,991 | ) | (1,649 | ) | (1,382 | ) | (1,618 | ) | ||||||||
Adjusted Funds from Operations — Diluted | $ | 9,139 | $ | 11,565 | $ | 10,474 | $ | 9,802 | $ | 9,499 | ||||||||
Preferred dividends/distributions (1) | 3,105 | 3,105 | 3,105 | 3,105 | 3,105 | |||||||||||||
Common dividends/distributions (2) | 7,117 | 7,091 | 7,086 | 6,752 | 6,724 | |||||||||||||
Total Dividends/Distributions | $ | 10,222 | $ | 10,196 | $ | 10,191 | $ | 9,857 | $ | 9,829 | ||||||||
- (1)
- Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.
- (2)
- Includes dividends on restricted shares for the 3rd and 4th quarters of 2002 and the 1st quarter of 2003.
Note: The above presentation does not separately report discontinued operations.
7
Quarterly Consolidated Statements of Operations and FFO per Diluted Share
(Shares in thousands)
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Revenues | ||||||||||||||||||
Rental revenue | $ | 0.99 | $ | 1.02 | $ | 0.93 | $ | 0.94 | $ | 0.88 | ||||||||
Tenant recoveries and other revenue | 0.15 | 0.12 | 0.12 | 0.10 | 0.11 | |||||||||||||
Total Revenues from Real Estate Operations | 1.14 | 1.14 | 1.05 | 1.04 | 0.99 | |||||||||||||
Expenses | ||||||||||||||||||
Property operating | 0.15 | 0.13 | 0.16 | 0.12 | 0.13 | |||||||||||||
Repairs and maintenance | 0.16 | 0.13 | 0.11 | 0.11 | 0.11 | |||||||||||||
Real estate taxes | 0.07 | 0.07 | 0.07 | 0.06 | 0.06 | |||||||||||||
Total Property Expenses from Real Estate Operations | 0.38 | 0.33 | 0.33 | 0.28 | 0.29 | |||||||||||||
Net Operating Income from Real Estate Operations | 0.76 | 0.81 | 0.72 | 0.76 | 0.70 | |||||||||||||
General and administrative | (0.05 | ) | (0.05 | ) | (0.02 | ) | (0.05 | ) | (0.06 | ) | ||||||||
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 | ) | (0.02 | ) | 0.00 | (0.00 | ) | (0.00 | ) | |||||||||
Merchant sales and real estate services | 0.02 | 0.02 | 0.02 | 0.00 | 0.02 | |||||||||||||
EBITDA | 0.72 | 0.76 | 0.72 | 0.70 | 0.66 | |||||||||||||
Interest expense | (0.27 | ) | (0.30 | ) | (0.28 | ) | (0.25 | ) | (0.25 | ) | ||||||||
Series B, E & F Preferred Share dividends | (0.06 | ) | (0.06 | ) | (0.06 | ) | (0.07 | ) | (0.07 | ) | ||||||||
Amortization of deferred financing costs | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||||
Income tax (expense) benefit | 0.00 | 0.01 | (0.00 | ) | 0.00 | 0.00 | ||||||||||||
Expense associated with options | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||
Dividends on restricted shares | 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 | ) | |||||||||||
Depreciation of corporate FF&E | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Funds From Operations (FFO) — Diluted | $ | 0.37 | $ | 0.39 | $ | 0.36 | $ | 0.37 | $ | 0.33 | ||||||||
Non-incremental capital expenditures | $ | 0.07 | $ | 0.05 | $ | 0.04 | $ | 0.04 | $ | 0.05 | ||||||||
For FFO Computations: | ||||||||||||||||||
Weighted Average Converted Preferred Shares/Units | 3,948 | 3,944 | 3,935 | 3,618 | 3,618 | |||||||||||||
Weighted Average Common Shares/Units Outstanding | 33,328 | 33,168 | 33,156 | 33,135 | 31,324 | |||||||||||||
Weighted Average Diluted Shares Outstanding | 37,276 | 37,112 | 37,091 | 36,753 | 34,942 | |||||||||||||
Note: The above presentation does not separately report discontinued operations.
8
Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues
| 2003 | 2002 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||
Revenues | |||||||||||||
Rental revenue | 87 | % | 90 | % | 89 | % | 91 | % | 89 | % | |||
Tenant recoveries and other revenue | 13 | % | 10 | % | 11 | % | 9 | % | 11 | % | |||
Total Revenues from Real Estate Operations | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||
Expenses | |||||||||||||
Property operating | 13 | % | 12 | % | 15 | % | 11 | % | 13 | % | |||
Repairs and maintenance | 14 | % | 12 | % | 10 | % | 11 | % | 11 | % | |||
Real estate taxes | 6 | % | 6 | % | 6 | % | 5 | % | 6 | % | |||
Total Property Expenses from Real Estate Operations | 33 | % | 29 | % | 32 | % | 27 | % | 29 | % | |||
Net Operating Income from Real Estate Operations | 67 | % | 71 | % | 68 | % | 73 | % | 71 | % | |||
General and administrative | (5 | )% | (4 | )% | (2 | )% | (5 | )% | (6 | )% | |||
Equity in income of unconsol. real estate joint ventures | (0 | )% | 0 | % | 0 | % | (0 | )% | 0 | % | |||
Earnings from service companies | (0 | )% | (2 | )% | 0 | % | (0 | )% | (0 | )% | |||
Merchant sales and real estate services | 1 | % | 2 | % | 2 | % | 0 | % | 2 | % | |||
EBITDA | 63 | % | 67 | % | 69 | % | 67 | % | 67 | % | |||
Interest expense | (24 | )% | (26 | )% | (27 | )% | (24 | )% | (25 | )% | |||
Series B, E & F Preferred Share dividends | (6 | )% | (6 | )% | (6 | )% | (6 | )% | (7 | )% | |||
Amortization of deferred financing costs | (1 | )% | (2 | )% | (1 | )% | (2 | )% | (2 | )% | |||
Income tax (expense) benefit | 0 | % | 1 | % | (0 | )% | 0 | % | 0 | % | |||
Expense associated with options | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||
Dividends on restricted shares | 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 | 32 | % | 34 | % | 34 | % | 35 | % | 33 | % | |||
Depreciation and other amortization | (19 | )% | (21 | )% | (19 | )% | (21 | )% | (19 | )% | |||
Gain on investment property sales | 7 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||
Expense associated with options | (0 | )% | (0 | )% | (0 | )% | (0 | )% | (0 | )% | |||
Dividends on restricted shares | (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 | 6 | % | 6 | % | 6 | % | 6 | % | 7 | % | |||
Income Before Minority Interests and Preferred Share Dividends | 25 | % | 19 | % | 21 | % | 21 | % | 21 | % | |||
Minority Interests: | |||||||||||||
Preferred Units in Operating Partnership | (1 | )% | (1 | )% | (1 | )% | (1 | )% | (2 | )% | |||
Common Units in Operating Partnership | (5 | )% | (3 | )% | (4 | )% | (4 | )% | (4 | )% | |||
Other consolidated entities | 0 | % | 0 | % | 0 | % | (0 | )% | (0 | )% | |||
Preferred Share dividends | (6 | )% | (6 | )% | (6 | )% | (7 | )% | (7 | )% | |||
Net Income Available to Common Shareholders | 13 | % | 8 | % | 9 | % | 9 | % | 8 | % | |||
Funds From Operations (FFO) — Diluted | 32 | % | 34 | % | 34 | % | 35 | % | 33 | % | |||
Straight line rents | (3 | )% | (1 | )% | (2 | )% | (3 | )% | (1 | )% | |||
Amortization of origination value of leases on acquired properties | (1 | )% | (1 | )% | (1 | )% | (3 | )% | (1 | )% | |||
Non-incremental capital expenditures | (6 | )% | (5 | )% | (4 | )% | (4 | )% | (5 | )% | |||
Adjusted Funds from Operations — Diluted | 22 | % | 27 | % | 27 | % | 26 | % | 27 | % | |||
Note: The above presentation does not separately report discontinued operations.
9
Quarterly Equity Analysis
(Amounts in thousands except per share data, share prices and ratios)
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Common Equity — End of Quarter | ||||||||||||||||||
Common Shares(1) | 23,766 | 23,606 | 23,583 | 23,236 | 22,772 | |||||||||||||
Common Units | 8,990 | 8,990 | 8,990 | 9,278 | 9,607 | |||||||||||||
Total | 32,756 | 32,596 | 32,573 | 32,514 | 32,379 | |||||||||||||
Convertible Preferred Equity — End of Quarter | ||||||||||||||||||
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 | 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 | 1,425 | 1,425 | 1,425 | 1,425 | 1,425 | |||||||||||||
Preferred Share Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||||||
Weighted Average Shares: | ||||||||||||||||||
Common Shares Outstanding | 23,323 | 23,234 | 23,029 | 22,704 | 20,889 | |||||||||||||
Restricted Shares Outstanding | 330 | 326 | 317 | — | — | |||||||||||||
Preferred Shares Outstanding Assuming Conversion | 1,197 | 1,197 | 1,197 | 1,197 | 1,197 | |||||||||||||
Dilutive Options | 1,015 | 944 | 978 | 1,040 | 828 | |||||||||||||
Common Units | 8,990 | 8,990 | 9,149 | 9,391 | 9,607 | |||||||||||||
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 | 37,276 | 37,112 | 37,091 | 36,753 | 34,942 | |||||||||||||
Common Shares Trading Volume | ||||||||||||||||||
Average Daily Volume (Shares) | 73 | 70 | 95 | 76 | 116 | |||||||||||||
Average Daily Volume (Dollars in thousands) | $ | 1,027.57 | $ | 948.95 | $ | 1,291.31 | $ | 1,042.19 | $ | 1,460.22 | ||||||||
As a Percentage of Common Shares | 0.3 | % | 0.3 | % | 0.4 | % | 0.3 | % | 0.6 | % | ||||||||
Common Share Price Range | ||||||||||||||||||
Quarterly High | $ | 15.07 | $ | 14.16 | $ | 14.50 | $ | 14.69 | $ | 13.20 | ||||||||
Quarterly Low | $ | 13.50 | $ | 11.60 | $ | 11.97 | $ | 12.95 | $ | 11.62 | ||||||||
Quarterly Average | $ | 14.00 | $ | 13.49 | $ | 13.56 | $ | 13.78 | $ | 12.54 | ||||||||
End of Quarter | $ | 14.90 | $ | 14.03 | $ | 13.55 | $ | 14.59 | $ | 13.10 | ||||||||
Capitalization | ||||||||||||||||||
Liquidation Value of Preferred Shares/Units | $ | 134,642 | $ | 134,642 | $ | 134,642 | $ | 134,642 | $ | 134,642 | ||||||||
Market Value of Common Shares/Units | 488,064 | 457,322 | 441,364 | 474,379 | 424,165 | |||||||||||||
Total Equity Market Capitalization | $ | 622,706 | $ | 591,963 | $ | 576,006 | $ | 609,021 | $ | 558,806 | ||||||||
Total Debt | $ | 707,990 | $ | 705,056 | $ | 710,033 | $ | 633,498 | $ | 573,821 | ||||||||
Total Market Capitalization | $ | 1,330,696 | $ | 1,297,019 | $ | 1,286,039 | $ | 1,242,519 | $ | 1,132,627 | ||||||||
Debt to Total Market Capitalization | 53.2 | % | 54.4 | % | 55.2 | % | 51.0 | % | 50.7 | % | ||||||||
Debt to Undepreciated Book Value of Real Estate Assets | 61.6 | % | 62.1 | % | 62.8 | % | 59.9 | % | 57.4 | % |
- (1)
- Net of 166,600 treasury shares as of March 31, 2003.
10
Quarterly Valuation Analysis
(Dollars in thousands except per share data and ratios)
| 2003 | 2002 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
PRICING MULTIPLES | ||||||||||||||||
Quarter End Common Stock Price | $ | 14.90 | $ | 14.03 | $ | 13.55 | $ | 14.59 | $ | 13.10 | ||||||
NOI Multiple (Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI | 11.85x | 10.84x | 11.78x | 10.94x | 11.60x | |||||||||||
EBITDA Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA | 12.56x | 11.52x | 11.73x | 11.81x | 12.29x | |||||||||||
FFO Multiple (Quarter End Common Share Price / Ann. FFO — diluted) | 10.19x | 9.10x | 9.41x | 9.93x | 9.90x | |||||||||||
AFFO Multiple (Quarter End Common Share Price / Ann. AFFO — diluted) | 15.19x | 11.26x | 12.00x | 13.68x | 12.05x | |||||||||||
NOI Yield (Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 8.44 | % | 9.22 | % | 8.49 | % | 9.14 | % | 8.62 | % | ||||||
EBITDA Yield (Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt)) | 7.96 | % | 8.68 | % | 8.53 | % | 8.46 | % | 8.14 | % | ||||||
FFO Yield (Ann. FFO / Quarter End Common Share Price) | 9.81 | % | 10.98 | % | 10.63 | % | 10.07 | % | 10.10 | % | ||||||
AFFO Yield (Ann. AFFO / Quarter End Common Share Price) | 6.58 | % | 8.88 | % | 8.34 | % | 7.31 | % | 8.30 | % | ||||||
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)(1) | $ | 146.75 | $ | 145.06 | $ | 142.91 | $ | 147.84 | $ | 145.61 | ||||||
RETURNS Yield on Real Estate Owned — NOI (Ann. NOI / Avg. Adjusted Gross Real Estate Investment)(2) | 10.41 | % | 11.01 | % | 10.18 | % | 11.52 | % | 10.75 | % | ||||||
Yield on Real Estate Owned — EBITDA (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2) | 9.82 | % | 10.37 | % | 10.23 | % | 10.67 | % | 10.14 | % | ||||||
Return on Book Value of Average Equity & Minority Interest (Ann. EBTDA / Avg. Equity & Minority Interest) | 17.00 | % | 17.60 | % | 16.58 | % | 17.00 | % | 15.25 | % |
- (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.
11
Quarterly Debt Analysis
(Dollars in thousands)
| 2003 | 2002 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Debt Outstanding | |||||||||||||||||
Mortgage Loans | $ | 577,380 | $ | 565,486 | $ | 564,522 | $ | 489,145 | $ | 462,287 | |||||||
Construction Loans | 12,710 | 11,570 | 20,511 | 18,553 | 17,534 | ||||||||||||
Revolving Credit Facility | 18,900 | — | — | — | — | ||||||||||||
Secured Revolving Credit Facility | 99,000 | 128,000 | 125,000 | 125,800 | 94,000 | ||||||||||||
$ | 707,990 | $ | 705,056 | $ | 710,033 | $ | 633,498 | $ | 573,821 | ||||||||
Average Outstanding Balance | |||||||||||||||||
Mortgage Loans | $ | 575,078 | $ | 563,904 | $ | 537,954 | $ | 467,885 | $ | 452,987 | |||||||
Construction Loans | 12,353 | 18,011 | 20,144 | 18,273 | 17,431 | ||||||||||||
Revolving Credit Facility | 9,574 | — | — | — | — | ||||||||||||
Secured Revolving Credit Facility | 127,052 | 126,645 | 122,685 | 121,403 | 108,581 | ||||||||||||
$ | 724,057 | $ | 708,560 | $ | 680,783 | $ | 607,561 | $ | 578,999 | ||||||||
Interest Rate Structure | |||||||||||||||||
Fixed | $ | 496,084 | $ | 481,121 | $ | 433,931 | $ | 391,906 | $ | 340,037 | |||||||
Variable | 111,906 | 123,935 | 176,102 | 141,592 | 83,784 | ||||||||||||
Variable Subject to Interest Rate Protection (1-4) | 100,000 | 100,000 | 100,000 | 100,000 | 150,000 | ||||||||||||
$ | 707,990 | $ | 705,056 | $ | 710,033 | $ | 633,498 | $ | 573,821 | ||||||||
% of Fixed Rate Loans (5) | 84.19 | % | 82.42 | % | 75.20 | % | 77.65 | % | 85.40 | % | |||||||
% of Variable Rate Loans | 15.81 | % | 17.58 | % | 24.80 | % | 22.35 | % | 14.60 | % | |||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||
Average Interest Rates | |||||||||||||||||
Mortgage & Construction Loans | 6.38 | % | 6.36 | % | 6.40 | % | 6.40 | % | 6.37 | % | |||||||
Revolving Credit Facility | 3.25 | % | n/a | n/a | n/a | n/a | |||||||||||
Secured Revolving Credit Facility | 3.58 | % | 6.64 | % | 6.79 | % | 6.86 | % | 7.21 | % | |||||||
Total Weighted Average | 5.90 | % | 6.41 | % | 6.51 | % | 6.47 | % | 6.52 | % | |||||||
Debt Ratios | |||||||||||||||||
Debt to Total Market Capitalization | 53.2 | % | 54.4 | % | 55.2 | % | 51.0 | % | 50.7 | % | |||||||
Debt to Undepreciated Book Value of Real Estate Assets | 61.6 | % | 62.1 | % | 62.8 | % | 59.9 | % | 57.4 | % | |||||||
Coverage Ratios (excluding capitalized interest) | |||||||||||||||||
Interest Coverage — NOI (NOI / Interest) | 2.78x | 2.71x | 2.52x | 3.06x | 2.84x | ||||||||||||
Interest Coverage — EBITDA (EBITDA / Interest) | 2.62x | 2.55x | 2.54x | 2.83x | 2.68x | ||||||||||||
Interest Coverage — EBITDA — YTD (EBITDA / Interest — Year-to-date) | 2.62x | 2.64x | 2.67x | 2.76x | 2.68x | ||||||||||||
Debt Service Coverage — NOI (NOI / (Interest + Principal Amortization)) | 2.30x | 2.31x | 2.02x | 2.62x | 2.45x | ||||||||||||
Debt Service Coverage — EBITDA (EBITDA / (Interest + Principal Amortization)) | 2.17x | 2.18x | 2.03x | 2.42x | 2.31x | ||||||||||||
Fixed Charge Coverage — NOI (NOI / (Interest + Preferred Distribution)) | 2.13x | 2.12x | 1.95x | 2.28x | 2.09x | ||||||||||||
Fixed Charge Coverage — EBITDA (EBITDA / (Interest + Preferred Distribution)) | 2.01x | 1.99x | 1.96x | 2.11x | 1.97x |
- (1)
- We purchased a $50 million 2-year cap on LIBOR at a rate of 7.0% which expired May 31, 2002.
- (2)
- We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% which expired January 2, 2003.
- (3)
- We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 2.308% which expires January 3, 2005.
- (4)
- We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 1.52% which expires January 7, 2004.
- (5)
- Includes interest rate protection agreements.
12
Quarterly Operating Ratios
(Dollars in thousands except per share data and ratios)
| 2003 | 2002 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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.)) | 66.99 | % | 70.78 | % | 68.33 | % | 72.87 | % | 70.65 | % | ||||||
EBITDA as a % of Real Estate Revenues (EBITDA / (Rental Revenue + Oper. Expense Reimb.)) | 63.21 | % | 66.64 | % | 68.64 | % | 67.46 | % | 66.65 | % | ||||||
G&A as a % of Real Estate Revenues (G&A / (Rental Revenue + Oper. Expense Reimb.)) | 4.59 | % | 4.18 | % | 2.09 | % | 5.08 | % | 6.25 | % | ||||||
G&A as a % of EBITDA (G&A / EBITDA) | 7.27 | % | 6.28 | % | 3.04 | % | 7.54 | % | 9.38 | % | ||||||
Quarter end occupancy for operating portfolio | 90.85 | % | 93.05 | % | 93.98 | % | 94.10 | % | 93.92 | % | ||||||
Quarter end % leased for operating portfolio | 92.77 | % | 93.75 | % | 94.37 | % | 95.07 | % | 94.70 | % | ||||||
Non-Incremental Capital Expenditures | $ | 2,756 | $ | 1,991 | $ | 1,649 | $ | 1,382 | $ | 1,618 | ||||||
Non-Incremental Capital Expenditures per average square foot | $ | 0.31 | $ | 0.22 | $ | 0.19 | $ | 0.17 | $ | 0.21 | ||||||
Non-Incremental Capital Expenditures as a % of NOI | 9.70 | % | 6.64 | % | 6.18 | % | 4.97 | % | 6.60 | % |
13
| 2003 | 2002 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||
Common Share Dividends | ||||||||||||||||||
Dividends per share/unit | $ | 0.22 | �� | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | |||||||
Increase over prior quarter | 0.0 | % | 0.0 | % | 4.8 | % | 0.0 | % | 0.0 | % | ||||||||
Increase over prior year | 4.8 | % | 4.8 | % | 4.8 | % | 5.0 | % | 5.0 | % | ||||||||
Common Dividend Payout Ratios | ||||||||||||||||||
Payout — FFO — Diluted | 58.1 | % | 55.1 | % | 58.9 | % | 55.3 | % | 64.3 | % | ||||||||
((Dividend + Distributions)/FFO) | ||||||||||||||||||
Payout — AFFO — Diluted | 86.5 | % | 68.1 | % | 75.1 | % | 76.1 | % | 78.2 | % | ||||||||
(Dividend /FAD) | ||||||||||||||||||
Dividend Coverage — FFO — Diluted | 1.72x | 1.82x | 1.70x | 1.81x | 1.56x | |||||||||||||
(FFO /dividends) | ||||||||||||||||||
Dividend Coverage — AFFO — Diluted | 1.16x | 1.47x | 1.33x | 1.31x | 1.28x | |||||||||||||
(AFFO /dividends) | ||||||||||||||||||
Common Dividend Yields | ||||||||||||||||||
Dividend Yield | 5.91 | % | 6.27 | % | 6.49 | % | 5.76 | % | 6.41 | % | ||||||||
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 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 | ||||||||||||||||||
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 | ||||||||||||||||||
Preferred Share Dividends Per Share | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | $ | 0.61719 | ||||||||
Preferred Share Dividend Yield | 9.875 | % | 9.875 | % | 9.875 | % | 9.875 | % | 9.875 | % | ||||||||
Quarter End Liquidation Preference | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 |
14
Investor Composition and Analyst Coverage
(as of March 31, 2003)
| Common Shares | Common Units | As if Converted Preferred Shares/Units | Total | Fully Diluted Ownership % of Total | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|
SHAREHOLDER CLASSIFICATION | |||||||||||
Insiders | 894,407 | 7,734,558 | — | 8,628,965 | 23.72 | % | |||||
Institutional Ownership | 14,816,220 | — | 3,617,472 | 18,433,692 | 50.68 | % | |||||
Other / Retail | 8,055,151 | 1,255,291 | — | 9,310,442 | 25.60 | % | |||||
23,765,778 | 8,989,849 | 3,617,472 | 36,373,099 | 100.00 | % | ||||||
| March 31, 2003 | December 31, 2002 | September 30, 2002 | June 30, 2002 | March 31, 2002 | |||||
---|---|---|---|---|---|---|---|---|---|---|
RESEARCH COVERAGE | ||||||||||
A. G. Edwards | x | x | x | x | x | |||||
BB&T Capital Markets | n/a | x | x | x | x | |||||
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 | |||||
Legg Mason Wood Walker, Inc. | x | x | x | x | x | |||||
McDonald Investments | x | x | x | x | x | |||||
Mercury Partners, LLC | x | x | x | x | n/a | |||||
Raymond James | x | x | n/a | n/a | n/a | |||||
Wachovia Securities | x | x | n/a | n/a | n/a |
Source: Institutional ownership was obtained from filed Forms 13(f) as of December 31, 2002 per Vickers Stock Research Corporation.
15
Debt Maturity Schedule — March 31, 2003
(Dollars in thousands)
| Mortgages (1) | Construction Loan(2) | | | | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year of Maturity | Annual Amortization of Monthly Payments | Due on Maturity | Annual Amortization of Monthly Payments | Due on Maturity | $25,000 Revolving Credit Facility (3) | $150,000 Secured Revolving Credit Facility (4) | Total Scheduled Payments | ||||||||||||||
April - December 2003 | $ | 7,441 | $ | 6,360 | $ | — | $ | 12,710 | $ | — | $ | — | $ | 26,511 | |||||||
2004 | 14,279 | 73,154 | — | — | 18,900 | — | 106,333 | ||||||||||||||
2005 | 13,576 | 41,567 | — | — | — | 99,000 | 154,143 | ||||||||||||||
2006 | 13,322 | 59,975 | — | — | — | — | 73,297 | ||||||||||||||
2007 | 14,333 | 51,346 | — | — | — | — | 65,679 | ||||||||||||||
2008 | 6,536 | 142,837 | — | — | — | — | 149,373 | ||||||||||||||
2009 | 3,095 | 52,056 | — | — | — | — | 55,151 | ||||||||||||||
2010 | 2,148 | 12,461 | — | — | — | — | 14,609 | ||||||||||||||
2011 | 2,226 | — | — | — | — | — | 2,226 | ||||||||||||||
2012 | 2,006 | 21,586 | — | — | — | — | 23,592 | ||||||||||||||
2013 | — | 37,076 | — | — | — | — | 37,076 | ||||||||||||||
$ | 78,962 | $ | 498,418 | $ | — | $ | 12,710 | $ | 18,900 | $ | 99,000 | $ | 707,990 | ||||||||
Notes:
- (1)
- Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The above table reflects these maturities as if the mortgages have already been extended.
- (2)
- The construction loan balance as of March 31, 2003 represents the outstanding balance as of that date.
- (3)
- The Revolving Credit Facility matures January 23, 2005. However, each individual draw matures one year from the date of the advance.
- (4)
- 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:
$50 million notional amount swap of one-month LIBOR at 2.3075%, commencing in January 2003 and expiring in January 2005.
$50 million notional amount swap of one-month LIBOR at 1.52%, commencing in January 2003 and expiring in January 2004.
16
Property Summary by Region — March 31, 2003
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 | 2500 Riva Road | Owned | BWI Airport | MD | 2000 | M | 155,000 | |||||||||
3 | 2711 Technology Drive (211 NBP) | Owned | BWI Airport | MD | 2002 | M | 152,000 | |||||||||
140 National Business Parkway | JV | BWI Airport | MD | M | 119,904 | |||||||||||
4 | 132 National Business Parkway | Owned | BWI Airport | MD | 2000 | M | 118,456 | |||||||||
5 | 2721 Technology Drive (221 NBP) | Owned | BWI Airport | MD | 2000 | M | 118,093 | |||||||||
6 | 2701 Technology Drive (201 NBP) | Owned | BWI Airport | MD | 2001 | M | 117,450 | |||||||||
7 | 1306 Concourse Drive | Owned | BWI Airport | MD | 1990 | M | 114,046 | |||||||||
8 | 1304 Concourse Drive | Owned | BWI Airport | MD | 2002 | M | 102,964 | |||||||||
9 | 870-880 Elkridge Landing Road | Owned | BWI Airport | �� | MD | 1981 | M | 101,785 | ||||||||
10 | 900 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 97,261 | |||||||||
11 | 1199 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 96,636 | |||||||||
12 | 920 Elkridge Landing Road | Owned | BWI Airport | MD | 1982 | M | 96,566 | |||||||||
13 | 134 National Business Parkway | Owned | BWI Airport | MD | 1999 | M | 93,482 | |||||||||
14 | 133 National Business Parkway | Owned | BWI Airport | MD | 1997 | M | 88,666 | |||||||||
15 | 141 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 87,318 | |||||||||
16 | 135 National Business Parkway | Owned | BWI Airport | MD | 1998 | M | 86,863 | |||||||||
17 | 1302 Concourse Drive | Owned | BWI Airport | MD | 1996 | M | 84,607 | |||||||||
18 | 7467 Ridge Road | Owned | BWI Airport | MD | 1990 | M | 74,273 | |||||||||
19 | 7240 Parkway Drive | Owned | BWI Airport | MD | 1985 | M | 74,162 | |||||||||
20 | 881 Elkridge Landing Road | Owned | BWI Airport | MD | 1986 | M | 73,572 | |||||||||
21 | 1099 Winterson Road | Owned | BWI Airport | MD | 1988 | M | 71,076 | |||||||||
22 | 131 National Business Parkway | Owned | BWI Airport | MD | 1990 | M | 69,039 | |||||||||
23 | 849 International Drive | Owned | BWI Airport | MD | 1988 | M | 68,758 | |||||||||
24 | 1190 Winterson Road | Owned | BWI Airport | MD | 1987 | M | 68,567 | |||||||||
25 | 911 Elkridge Landing Road | Owned | BWI Airport | MD | 1985 | M | 68,296 | |||||||||
26 | 1201 Winterson Road | Owned | BWI Airport | MD | 1985 | M | 67,903 | |||||||||
27 | 999 Corporate Boulevard | Owned | BWI Airport | MD | 2000 | M | 67,351 | |||||||||
28 | 7318 Parkway Drive | Owned | BWI Airport | MD | 1984 | M | 59,204 | |||||||||
29 | 901 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 57,308 | |||||||||
30 | 7320 Parkway Drive | Owned | BWI Airport | MD | 1983 | S | 57,176 | |||||||||
31 | 900 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
32 | 930 International Drive | Owned | BWI Airport | MD | 1986 | S | 57,140 | |||||||||
33 | 891 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 56,489 | |||||||||
34 | 921 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 54,175 | |||||||||
35 | 939 Elkridge Landing Road | Owned | BWI Airport | MD | 1983 | M | 53,031 | |||||||||
36 | 938 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 52,988 | |||||||||
37 | 940 Elkridge Landing Road | Owned | BWI Airport | MD | 1984 | M | 51,704 | |||||||||
38 | 800 International Drive | Owned | BWI Airport | MD | 1988 | S | 50,979 | |||||||||
39 | 1340 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 46,400 | |||||||||
40 | 7321 Parkway Drive | Owned | BWI Airport | MD | 1984 | S | 39,822 | |||||||||
41 | 1334 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 37,565 | |||||||||
42 | 1331 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 29,936 | |||||||||
43 | 1350 Dorsey Road | Owned | BWI Airport | MD | 1989 | S | 19,992 | |||||||||
44 | 1344 Ashton Road | Owned | BWI Airport | MD | 1989 | M | 17,061 | |||||||||
45 | 1341 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 15,841 | |||||||||
46 | 1343 Ashton Road | Owned | BWI Airport | MD | 1989 | S | 9,962 | |||||||||
47 | 114 National Business Parkway | Owned | BWI Airport | MD | 2002 | S | 9,717 | |||||||||
Subtotal (continued on next page) | 3,488,156 | 119,904 |
17
Property Summary by Region — March 31, 2003
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) | 3,488,156 | 119,904 | ||||||||||||||
48 | 7200 Riverwood Drive | Owned | Howard Co. Perimeter | MD | 1986 | S | 160,000 | |||||||||
49 | 9140 Route 108 | Owned | Howard Co. Perimeter | MD | 1985 | S | 150,000 | |||||||||
50 | 7000 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1999 | M | 145,806 | |||||||||
51 | 6731 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2002 | M | 123,743 | |||||||||
52 | 6940 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1999 | M | 108,847 | |||||||||
53 | 6950 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 1998 | M | 107,778 | |||||||||
54 | 7067 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 82,953 | |||||||||
55 | 6750 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 2001 | M | 78,460 | |||||||||
56 | 6700 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 75,650 | |||||||||
57 | 6740 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1992 | M | 61,957 | |||||||||
58 | 8671 Robert Fulton Drive | JV | Howard Co. Perimeter | MD | 2002 | M | 56,350 | |||||||||
59 | 6716 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1990 | M | 52,002 | |||||||||
60 | 8661 Robert Fulton Drive | JV | Howard Co. Perimeter | MD | 2002 | M | 49,500 | |||||||||
61 | 9140 Guilford Road | Owned | Howard Co. Perimeter | MD | 1983 | S | 41,704 | |||||||||
62 | 7065 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 38,560 | |||||||||
63 | 7063 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | S | 36,936 | |||||||||
64 | 9160 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | M | 36,528 | |||||||||
65 | 6760 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1991 | M | 36,309 | |||||||||
66 | 6708 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 1988 | M | 35,040 | |||||||||
67 | 7061 Columbia Gateway Drive | Owned | Howard Co. Perimeter | MD | 2000 | M | 29,604 | |||||||||
68 | 6724 Alexander Bell Drive | Owned | Howard Co. Perimeter | MD | 2002 | M | 28,420 | |||||||||
69 | 9150 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | S | 17,655 | |||||||||
70 | 9130 Guilford Road | Owned | Howard Co. Perimeter | MD | 1984 | S | 13,700 | — | ||||||||
Total Baltimore / Washington Corridor | 5,055,658 | 119,904 | ||||||||||||||
Suburban Maryland | ||||||||||||||||
1 | 11800 Tech Road | Owned | North Silver Spring | MD | 1989 | M | 235,866 | |||||||||
2 | 14502 Greenview Drive | Owned | Laurel | MD | 1988 | M | 71,926 | |||||||||
3 | 14504 Greenview Drive | Owned | Laurel | MD | 1985 | M | 69,194 | |||||||||
Forbes Boulevard — Phase II | JV | Lanham | MD | M | — | 55,757 | ||||||||||
Total Suburban Maryland | 376,986 | 55,757 | ||||||||||||||
Northern Virginia | ||||||||||||||||
1 | 15000 Conference Center Drive | Owned | Chantilly | VA | 1989 | M | 470,406 | |||||||||
2 | 15059 Conference Center Drive | Owned | Chantilly | VA | 2000 | M | 145,192 | |||||||||
3 | 15049 Conference Center Drive | Owned | Chantilly | VA | 1997 | M | 145,053 | — | ||||||||
Total Northern Virginia | 760,651 | — | ||||||||||||||
Other | ||||||||||||||||
1 | 9690 Deereco Road | Owned | North Baltimore Co. | MD | 1988 | M | 133,737 | |||||||||
2 | 375 West Padonia Road | Owned | North Baltimore Co. | MD | 1986 | M | 101,133 | |||||||||
3 | 1615 and 1629 Thames Street | Owned | Baltimore City | MD | 1989 | M | 101,115 | — | ||||||||
Total Other | 335,985 | — | ||||||||||||||
18
Property Summary by Region — March 31, 2003
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 | 1992 | M | 419,472 | |||||||||
2 | 785 Jolly Road | Owned | Blue Bell | PA | 1996 | M | 219,065 | |||||||||
3 | 760 Jolly Road | Owned | Blue Bell | PA | 1994 | M | 208,854 | |||||||||
4 | 751 Jolly Road | Owned | Blue Bell | PA | 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 | 66,224 | |||||||||
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 | 32,921 | |||||||||
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 | 673,940 | — | ||||||||||||||
Northern/Central New Jersey | ||||||||||||||||
1 | 431 Ridge Road | Owned | Exit 8A — Cranbury | NJ | 1998 | S | 170,000 | |||||||||
2 | 429 Ridge Road | Owned | Exit 8A — Cranbury | NJ | 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 | 1998 | S | 41,398 | |||||||||
7 | 437 Ridge Road | Owned | Exit 8A — Cranbury | NJ | 1996 | S | 30,000 | |||||||||
8 | 7 Centre Drive | Owned | Exit 8A — Cranbury | NJ | 1986 | S | 19,468 | |||||||||
9 | 8 Centre Drive | Owned | Exit 8A — Cranbury | NJ | 1989 | 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 | 61,311 | |||||||||
12 | 695 Route 46 | JV | Wayne | NJ | 1990 | M | 157,394 | |||||||||
13 | 710 Route 46 | Owned | Wayne | NJ | 1985 | M | 101,263 | — | ||||||||
Total Northern / Central New Jersey | 904,128 | — | ||||||||||||||
112 | TOTAL PORTFOLIO | 9,067,697 | 175,661 | |||||||||||||
19
Property Occupancy Rates by Region by Quarter
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Northern Virginia | Suburban Maryland | Other | Total Portfolio | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2003 | |||||||||||||||||
Number of Buildings | 4 | 70 | 13 | 16 | 3 | 3 | 3 | 112 | |||||||||
Rentable Square Feet | 960,349 | 5,055,658 | 904,128 | 673,940 | 760,651 | 376,986 | 335,985 | 9,067,697 | |||||||||
Percent Occupied | 100.00 | % | 87.47 | % | 93.02 | % | 91.14 | % | 99.12 | % | 89.14 | % | 92.45 | % | 90.85 | % | |
December 31, 2002 | |||||||||||||||||
Number of Buildings | 4 | 67 | 13 | 16 | 3 | 4 | 3 | 110 | |||||||||
Rentable Square Feet | 960,349 | 4,744,691 | 904,142 | 673,940 | 760,651 | 558,754 | 338,985 | 8,941,512 | |||||||||
Percent Occupied | 100.00 | % | 91.30 | % | 93.67 | % | 90.65 | % | 98.32 | % | 93.24 | % | 88.75 | % | 93.05 | % | |
September 30, 2002 | |||||||||||||||||
Number of Buildings | 4 | 68 | 13 | 16 | 3 | 4 | 3 | 111 | |||||||||
Rentable Square Feet | 960,349 | 4,800,253 | 903,972 | 675,338 | 760,651 | 559,329 | 338,985 | 8,998,877 | |||||||||
Percent Occupied | 100.00 | % | 92.60 | % | 95.38 | % | 91.46 | % | 98.32 | % | 93.53 | % | 88.75 | % | 93.98 | % | |
June 30, 2002 | |||||||||||||||||
Number of Buildings | 4 | 68 | 13 | 16 | 1 | 3 | 3 | 108 | |||||||||
Rentable Square Feet | 960,349 | 4,732,483 | 903,972 | 675,338 | 470,406 | 322,888 | 338,985 | 8,404,421 | |||||||||
Percent Occupied | 100.00 | % | 93.30 | % | 94.82 | % | 90.31 | % | 99.56 | % | 92.03 | % | 88.45 | % | 94.10 | % | |
March 31, 2002 | |||||||||||||||||
Number of Buildings | 4 | 59 | 13 | 16 | 1 | 3 | 3 | 99 | |||||||||
Rentable Square Feet | 960,349 | 4,107,811 | 903,972 | 674,686 | 470,406 | 322,835 | 338,224 | 7,778,283 | |||||||||
Percent Occupied | 100.00 | % | 92.78 | % | 93.88 | % | 89.83 | % | 99.56 | % | 94.06 | % | 90.73 | % | 93.92 | % |
20
Top Twenty Office Tenants as of March 31, 2003
(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) | 25 | 1,092,529 | 13.3 | % | $ | 20,550 | 13.6 | % | 4.9 | |||||
Computer Sciences Corporation | (4) | 3 | 427,147 | 5.2 | % | 9,871 | 6.5 | % | 7.9 | ||||||
AT&T Local Services | (4) | 7 | 451,498 | 5.5 | % | 9,028 | 6.0 | % | 5.3 | ||||||
Unisys | (5) | 3 | 741,284 | 9.0 | % | 7,593 | 5.0 | % | 6.3 | ||||||
General Dynamics Government Corp. | 4 | 181,097 | 2.2 | % | 4,385 | 2.9 | % | 5.8 | |||||||
Booz Allen Hamilton | 6 | 185,776 | 2.3 | % | 3,961 | 2.6 | % | 2.6 | |||||||
Ciena Corporation | (6) | 4 | 278,749 | 3.4 | % | 3,874 | 2.6 | % | 3.2 | ||||||
The Aerospace Corporation | 1 | 133,691 | 1.6 | % | 3,298 | 2.2 | % | 9.3 | |||||||
Northrop Grumman Corporation | 3 | 138,031 | 1.7 | % | 3,290 | 2.2 | % | 4.9 | |||||||
Magellan Health Services, Inc. | 2 | 150,622 | 1.8 | % | 3,282 | 2.2 | % | 0.8 | |||||||
The Boeing Company | (4) | 6 | 129,300 | 1.6 | % | 3,185 | 2.1 | % | 6.1 | ||||||
Commonwealth of Pennsylvania | (4) | 9 | 185,290 | 2.2 | % | 2,661 | 1.8 | % | 5.4 | ||||||
Merck & Co., Inc. | 1 | 219,065 | 2.7 | % | 2,281 | 1.5 | % | 6.3 | |||||||
Johns Hopkins University | (4) | 5 | 96,152 | 1.2 | % | 2,137 | 1.4 | % | 4.4 | ||||||
CareFirst, Inc. and Subsidiaries | (4) | 3 | 94,223 | 1.1 | % | 2,040 | 1.3 | % | 4.8 | ||||||
USinternetworking, Inc. | 1 | 155,000 | 1.9 | % | 1,935 | 1.3 | % | 15.0 | |||||||
Comcast Corporation | 1 | 98,897 | 1.2 | % | 1,577 | 1.0 | % | 6.5 | |||||||
Sun Microsystems, Inc. | 2 | 60,730 | 0.7 | % | 1,559 | 1.0 | % | 2.8 | |||||||
Lockheed Martin Corporation | 2 | 75,829 | 0.9 | % | 1,448 | 1.0 | % | 1.9 | |||||||
First American Credit Management Solutions | 1 | 70,982 | 0.9 | % | 1,416 | 0.9 | % | 5.7 | |||||||
Subtotal Top 20 Office Tenants | 89 | 4,965,892 | 60.3 | % | 89,372 | 58.9 | % | 5.5 | |||||||
All remaining tenants | 369 | 3,272,425 | 39.7 | % | 62,239 | 41.1 | % | 3.2 | |||||||
Total/Weighted Average | 458 | 8,238,317 | 100.0 | % | $ | 151,611 | 100.0 | % | 4.5 | ||||||
- (1)
- Total Rental Revenue is the monthly contractual base rent as of March 31, 2003 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 278,749 square feet directly leased, Ciena Corporation also subleases 44,890 rentable square feet from various tenants in our portfolio over different lease terms.
21
Total Rental Revenue by Geographic Region by Quarter (1)
(Dollars in thousands)
| 2003 | 2002 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||
Office Properties: | |||||||||||||||
Baltimore/Washington Corridor | $ | 22,848 | $ | 23,973 | $ | 21,152 | $ | 22,721 | $ | 18,984 | |||||
Northern Virginia | 5,860 | 4,964 | 3,777 | 2,741 | 2,768 | ||||||||||
Northern/Central New Jersey | 4,522 | 4,286 | 5,175 | 4,604 | 4,921 | ||||||||||
Greater Philadelphia | 2,506 | 2,506 | 2,506 | 2,506 | 2,506 | ||||||||||
Greater Harrisburg | 2,493 | 2,349 | 2,406 | 2,390 | 2,407 | ||||||||||
Suburban Maryland | 2,482 | 2,586 | 2,339 | 1,563 | 1,506 | ||||||||||
Other | 1,604 | 1,624 | 1,563 | 1,534 | 1,552 | ||||||||||
Total Regional Rental Revenue | $ | 42,315 | $ | 42,288 | $ | 38,918 | $ | 38,059 | $ | 34,644 | |||||
- (1)
- Rental revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments, SFAS 141 revenues and tenant services income.
Net Operating Income by Geographic Region by Quarter
(Dollars in thousands)
| 2003 | 2002 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties: | ||||||||||||||||
Baltimore/Washington Corridor | $ | 14,821 | $ | 17,216 | $ | 14,382 | $ | 17,038 | $ | 13,471 | ||||||
Northern Virginia | 3,977 | 3,175 | 2,304 | 1,630 | 1,678 | |||||||||||
Northern/Central New Jersey | 2,893 | 2,774 | 3,145 | 2,930 | 3,213 | |||||||||||
Greater Philadelphia | 2,472 | 2,468 | 2,468 | 2,473 | 2,466 | |||||||||||
Greater Harrisburg | 1,746 | 1,640 | 1,802 | 1,738 | 1,810 | |||||||||||
Suburban Maryland | 1,458 | 1,621 | 1,425 | 885 | 870 | |||||||||||
Other | 945 | 1,017 | 1,032 | 1,010 | 944 | |||||||||||
Total Regional NOI | $ | 28,312 | $ | 29,911 | $ | 26,558 | $ | 27,704 | $ | 24,452 | ||||||
Other income / expenses, net | 98 | 76 | 112 | 104 | 80 | |||||||||||
Total NOI | $ | 28,410 | $ | 29,987 | $ | 26,670 | $ | 27,808 | $ | 24,532 | ||||||
22
Same Office Property Cash Net Operating Income by Quarter
(Dollars in thousands)
| 2003 | 2002 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties: (1) | ||||||||||||||||
Greater Philadelphia | $ | 2,434 | $ | 2,430 | $ | 2,430 | $ | 2,387 | $ | 2,380 | ||||||
Baltimore/Washington Corridor | 10,987 | 14,504 | 11,370 | 13,430 | 12,697 | |||||||||||
Northern/Central New Jersey | 2,454 | 2,208 | 2,629 | 2,418 | 2,690 | |||||||||||
Greater Harrisburg | 1,731 | 1,638 | 1,788 | 1,709 | 1,748 | |||||||||||
Suburban Maryland | 217 | 207 | 374 | 315 | 224 | |||||||||||
Northern Virginia | 2,696 | 1,701 | 1,542 | 1,538 | 1,583 | |||||||||||
Other | 933 | 1,005 | 1,011 | 988 | 961 | |||||||||||
Total Office Properties | $ | 21,452 | $ | 23,693 | $ | 21,144 | $ | 22,785 | $ | 22,283 | ||||||
Same Office Property GAAP Net Operating Income by Quarter
(Dollars in thousands)
| 2003 | 2002 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||
Office Properties: (1) | ||||||||||||||||
Greater Philadelphia | $ | 2,472 | $ | 2,468 | $ | 2,468 | $ | 2,473 | $ | 2,466 | ||||||
Baltimore/Washington Corridor | 11,810 | 14,373 | 11,471 | 15,022 | 12,801 | |||||||||||
Northern/Central New Jersey | 2,495 | 2,250 | 2,671 | 2,438 | 2,706 | |||||||||||
Greater Harrisburg | 1,745 | 1,639 | 1,801 | 1,741 | 1,809 | |||||||||||
Suburban Maryland | 218 | 203 | 369 | 320 | 229 | |||||||||||
Northern Virginia | 2,851 | 1,762 | 1,604 | 1,630 | 1,678 | |||||||||||
Other | 945 | 1,017 | 1,032 | 1,010 | 944 | |||||||||||
Total Office Properties | $ | 22,536 | $ | 23,712 | $ | 21,416 | $ | 24,634 | $ | 22,633 | ||||||
- (1)
- Same office properties include buildings owned for a minimum of five reporting quarters.
23
Average Occupancy Rates by Region for Same Office Properties (1)
| Greater Philadelphia | Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Suburban Maryland | Northern Virginia | Other | Total Office | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1st Quarter 2003 Average | |||||||||||||||||
Number of Buildings | 4 | 55 | 12 | 16 | 2 | 1 | 3 | 93 | |||||||||
Rentable Square Feet | 960,349 | 3,948,284 | 746,734 | 673,940 | 141,120 | 470,406 | 336,985 | 7,277,818 | |||||||||
Percent Occupied | 100.00 | % | 89.88 | % | 93.04 | % | 90.52 | % | 71.74 | % | 99.56 | % | 90.08 | % | 91.88 | % | |
4th Quarter 2002 Average | |||||||||||||||||
Number of Buildings | 4 | 55 | 12 | 16 | 2 | 1 | 3 | 93 | |||||||||
Rentable Square Feet | 960,349 | 3,947,744 | 746,700 | 674,446 | 141,120 | 470,406 | 338,985 | 7,279,750 | |||||||||
Percent Occupied | 100.00 | % | 91.24 | % | 93.84 | % | 90.21 | % | 73.25 | % | 99.56 | % | 88.75 | % | 90.77 | % | |
3rd Quarter 2002 Average | |||||||||||||||||
Number of Buildings | 4 | 55 | 12 | 16 | 2 | 1 | 3 | 93 | |||||||||
Rentable Square Feet | 960,349 | 3,948,341 | 746,578 | 675,338 | 141,120 | 470,406 | 338,985 | 7,281,117 | |||||||||
Percent Occupied | 100.00 | % | 90.27 | % | 95.19 | % | 90.69 | % | 83.24 | % | 99.56 | % | 89.27 | % | 90.64 | % | |
2nd Quarter 2002 Average | |||||||||||||||||
Number of Buildings | 4 | 55 | 12 | 16 | 2 | 1 | 3 | 93 | |||||||||
Rentable Square Feet | 960,349 | 3,945,271 | 746,578 | 674,916 | 141,085 | 470,406 | 338,697 | 7,277,302 | |||||||||
Percent Occupied | 100.00 | % | 92.15 | % | 93.98 | % | 89.96 | % | 85.35 | % | 99.56 | % | 88.50 | % | 91.47 | % | |
1st Quarter 2002 Average | |||||||||||||||||
Number of Buildings | 4 | 55 | 12 | 16 | 2 | 1 | 3 | 93 | |||||||||
Rentable Square Feet | 960,349 | 3,941,564 | 746,578 | 674,686 | 141,067 | 470,406 | 338,224 | 7,272,874 | |||||||||
Percent Occupied | 100.00 | % | 93.33 | % | 94.20 | % | 90.48 | % | 85.15 | % | 99.56 | % | 93.77 | % | 92.43 | % |
- (1)
- Same office properties include buildings owned for a minimum of five reporting quarters.
24
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 - December 2003 | 81 | 687,017 | 8.3 | % | $ | 13,645 | 9.0 | % | $ | 19.86 | ||||
2004 | 75 | 849,463 | 10.3 | % | 16,246 | 10.7 | % | 19.13 | ||||||
2005 | 83 | 812,321 | 9.9 | % | 15,465 | 10.2 | % | 19.04 | ||||||
2006 | 61 | 860,902 | 10.4 | % | 15,470 | 10.2 | % | 17.97 | ||||||
2007 | 70 | 1,273,266 | 15.5 | % | 25,200 | 16.6 | % | 19.79 | ||||||
2008 | 29 | 804,770 | 9.8 | % | 17,394 | 11.5 | % | 21.61 | ||||||
2009 | 17 | 1,366,183 | 16.6 | % | 17,024 | 11.2 | % | 12.46 | ||||||
2010 | 14 | 714,859 | 8.7 | % | 15,755 | 10.4 | % | 22.04 | ||||||
2011 | 3 | 71,501 | 0.9 | % | 1,762 | 1.2 | % | 24.64 | ||||||
2012 | 7 | 428,474 | 5.2 | % | 9,622 | 6.3 | % | 22.46 | ||||||
2013 | 3 | 159,169 | 1.9 | % | 2,040 | 1.3 | % | 12.81 | ||||||
2014 | — | — | 0.0 | % | — | 0.0 | % | 0.00 | ||||||
2015 | — | — | 0.0 | % | — | 0.0 | % | 0.00 | ||||||
2016 | — | — | 0.0 | % | — | 0.0 | % | 0.00 | ||||||
2017 | — | — | 0.0 | % | — | 0.0 | % | 0.00 | ||||||
2018 | 1 | 155,000 | 1.9 | % | 1,935 | 1.3 | % | 12.48 | ||||||
Other (3) | 14 | 55,392 | 0.7 | % | 53 | 0.0 | % | 0.95 | ||||||
Total/Weighted Average | 458 | 8,238,317 | 100.0 | % | $ | 151,611 | 100.0 | % | $ | 19.12 | ||||
NOTE: As of March 31, 2003, the weighted average lease term is 4.5 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, 2003 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. In addition, month-to-month leases are included in this line item as the exact expiration date is unknown.
25
Quarterly Office Renewal Analysis
| Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Suburban Maryland | Other | Northern Virginia | Total Office | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended March 31, 2003: | |||||||||||||||||||||||
Expiring Square Feet | 63,755 | 13,259 | 13,824 | 11,926 | 10,320 | — | 113,084 | ||||||||||||||||
Vacated Square Feet | 46,462 | 9,927 | 2,501 | 11,926 | — | — | 70,816 | ||||||||||||||||
Renewed Square Feet | 17,293 | 3,332 | 11,323 | — | 10,320 | — | 42,268 | ||||||||||||||||
Retention Rate (% based upon square feet) | 27.12 | % | 25.13 | % | 81.91 | % | 0.00 | % | 100.00 | % | 0.00 | % | 37.38 | % | |||||||||
Renewed Space Only: | |||||||||||||||||||||||
Change in Base Rent — Straight-line | 7.89 | % | 14.22 | % | -5.67 | % | 0.00 | % | -2.39 | % | 0.00 | % | 2.71 | % | |||||||||
Change in Total Rent — Straight-line | 2.61 | % | 9.08 | % | -4.96 | % | 0.00 | % | -2.39 | % | 0.00 | % | 0.08 | % | |||||||||
Change in Base Rent — Cash | 1.03 | % | 3.71 | % | - -6.10 | % | 0.00 | % | - -9.33 | % | 0.00 | % | - -3.35 | % | |||||||||
Change in Total Rent — Cash | -3.64 | % | -0.74 | % | -5.29 | % | 0.00 | % | -9.33 | % | 0.00 | % | -5.50 | % | |||||||||
Average Capital Cost per Square Foot | $ | 2.22 | $ | 6.99 | $ | 0.17 | $ | — | $ | 11.51 | $ | — | $ | 4.32 | |||||||||
Renewed & Retenanted Space: | |||||||||||||||||||||||
Change in Base Rent — Straight-line | 4.60 | % | 14.22 | % | -15.98 | % | 0.00 | % | -4.91 | % | 0.00 | % | 0.09 | % | |||||||||
Change in Total Rent — Straight-line | 2.01 | % | 9.08 | % | -15.22 | % | 0.00 | % | -2.51 | % | 0.00 | % | -1.42 | % | |||||||||
Change in Base Rent — Cash | - -7.77 | % | 3.71 | % | - -17.19 | % | 0.00 | % | - -9.81 | % | 0.00 | % | - -9.12 | % | |||||||||
Change in Total Rent — Cash | -9.95 | % | -0.74 | % | -16.21 | % | 0.00 | % | -6.97 | % | 0.00 | % | -10.02 | % | |||||||||
Average Capital Cost per Square Foot | $ | 12.68 | $ | 6.99 | $ | 5.78 | $ | — | $ | 11.23 | $ | — | $ | 10.76 | |||||||||
Quarter Ended December 31, 2002: | |||||||||||||||||||||||
Expiring Square Feet | 417,227 | 19,099 | 103,860 | n/a | n/a | — | 540,186 | ||||||||||||||||
Vacated Square Feet | 123,656 | 10,825 | 39,606 | n/a | n/a | — | 174,087 | ||||||||||||||||
Renewed Square Feet | 293,571 | 8,274 | 64,254 | n/a | n/a | — | 366,099 | ||||||||||||||||
Retention Rate (% based upon square feet) | 70.36 | % | 43.32 | % | 61.87 | % | n/a | n/a | 0.00 | % | 67.77 | % | |||||||||||
Renewed & Retenanted Space: | |||||||||||||||||||||||
Change in Base Rent — Straight-line | 93.33 | % | 94.20 | % | -4.53 | % | n/a | n/a | 0.00 | % | 5.00 | % | |||||||||||
Change in Total Rent — Straight-line | 4.53 | % | 0.13 | % | -5.79 | % | n/a | n/a | 0.00 | % | 3.25 | % | |||||||||||
Change in Base Rent — Cash | 2.27 | % | - -1.17 | % | - -7.63 | % | n/a | n/a | 0.00 | % | 1.14 | % | |||||||||||
Change in Total Rent — Cash | 0.94 | % | -2.55 | % | -8.34 | % | n/a | n/a | 0.00 | % | -0.20 | % | |||||||||||
Average Capital Cost per Square Foot | $ | 4.43 | $ | 13.69 | $ | 2.27 | n/a | n/a | $ | — | $ | 4.49 |
Note: No renewal or retenanting activity transpired in our Greater Philadelphia region. Prior to January 1, 2003, our Suburban Maryland and Other regions were grouped within the Baltimore / Washington Corridor. Historically, this data has not been separately reported.
26
| Baltimore/ Washington Corridor | Northern/ Central New Jersey | Greater Harrisburg | Northern Virginia | Total Office | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended September 30, 2002: | |||||||||||||||||
Expiring Square Feet | 211,614 | 49,489 | 80,037 | — | 341,140 | ||||||||||||
Vacated Square Feet | 82,267 | 26,028 | — | — | 108,295 | ||||||||||||
Renewed Square Feet | 129,347 | 23,461 | 80,037 | — | 232,845 | ||||||||||||
Retention Rate (% based upon square feet) | 61.12 | % | 47.41 | % | 100.00 | % | 0.00 | % | 68.25 | % | |||||||
Renewed & Retenanted Space: | |||||||||||||||||
Change in Base Rent — Straight-line | 24.90 | % | 18.23 | % | 0.34 | % | 0.00 | % | 19.34 | % | |||||||
Change in Total Rent — Straight-line | 15.67 | % | 9.58 | % | -0.25 | % | 0.00 | % | 11.92 | % | |||||||
Change in Base Rent — Cash | 20.66 | % | 19.09 | % | - -1.17 | % | 0.00 | % | 16.11 | % | |||||||
Change in Total Rent — Cash | 12.16 | % | 10.39 | % | -1.51 | % | 0.00 | % | 9.23 | % | |||||||
Average Capital Cost per Square Foot | $ | 8.48 | $ | 11.41 | $ | 1.96 | $ | — | $ | 7.23 | |||||||
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) | 64.39 | % | 78.66 | % | 40.10 | % | 0.00 | % | 64.44 | % | |||||||
Renewed & Retenanted Space: | |||||||||||||||||
Change in Base Rent — Straight-line | 2.04 | % | 25.04 | % | -8.86 | % | 29.72 | % | 5.60 | % | |||||||
Change in Total Rent — Straight-line | 8.25 | % | 20.24 | % | -5.35 | % | 29.72 | % | 10.39 | % | |||||||
Change in Base Rent — Cash | - -1.50 | % | 21.74 | % | - -8.86 | % | 30.11 | % | 2.34 | % | |||||||
Change in Total Rent — Cash | 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) | 49.74 | % | 16.46 | % | 71.28 | % | 0.00 | % | 56.72 | % | |||||||
Renewed & Retenanted Space: | |||||||||||||||||
Change in Base Rent — Straight-line | -4.35 | % | -2.70 | % | 29.35 | % | 0.00 | % | 3.21 | % | |||||||
Change in Total Rent — Straight-line | 0.55 | % | -12.76 | % | -2.02 | % | 0.00 | % | -1.53 | % | |||||||
Change in Base Rent — Cash | - -3.11 | % | - -7.51 | % | 20.16 | % | 0.00 | % | 1.71 | % | |||||||
Change in Total Rent — Cash | 2.04 | % | -16.86 | % | -9.06 | % | 0.00 | % | -3.05 | % | |||||||
Average Capital Cost per Square Foot | $ | 5.01 | $ | 5.67 | $ | 0.04 | $ | — | $ | 3.08 |
Note: No renewal or retenanting activity transpired in our Greater Philadelphia region. Prior to January 1, 2003, our Suburban Maryland and Other regions were grouped within the Baltimore /Washington Corridor. Historically, this data has not been separately reported.
27
Year to Date Acquisition Summary as of March 31, 2003
(Dollars in thousands)
| Submarket | Acquisition Date | Square Feet | Occupancy Percentage at Acquisition | March 31, 2003 Occupancy Percentage | Investment(1) | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Individual Property: | |||||||||||||
2500 Riva Road | BWI Airport | 3/4/2003 | 155,000 | 100.0 | % | 100.0 | % | $ | 18,036 | ||||
Total | 155,000 | 100.0 | % | 100.0 | % | $ | 18,036 | ||||||
- (1)
- Initial investment recorded by property as of March 31, 2003 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.
Year to Date Disposition Summary as of March 31, 2003
(Dollars in thousands)
| Submarket | Disposition Date | Square Feet | Gross Sales Proceeds | Debt Assumption or Repayment | Cash Proceeds After Debt Repayment | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Individual Property: | ||||||||||||||||
695 Route 46(1) | Wayne | 3/14/2003 | 157,394 | $ | 19,960 | $ | 12,675 | $ | 7,285 | |||||||
6009 - 6011 Oxon Hill Road(2) | Southern Prince George's County | 3/30/2003 | 181,768 | 20,188 | 13,000 | 7,188 | ||||||||||
Total | 339,162 | $ | 40,148 | $ | 25,675 | $ | 14,473 | |||||||||
- (1)
- This property was contributed to a joint venture in exchange for $19,960 and a 20% joint venture interest. Refer to joint venture summary. The gain on this disposition has been deferred due to our retained 20% interest in this property.
- (2)
- In addition, we sold two adjacent land parcels for $1,100 and realized a gain of $3,388 on the total sale proceeds of $21,288.
28
Development Summary as of March 31, 2003
(Dollars in thousands except square feet)
Property and Location | Submarket | Owned or Joint Venture (JV) | Total Rentable Square Feet | Square Feet Under Construction | Percentage Leased or Committed | Anticipated Total Cost | Cost to date | Outstanding Loan as of 3/31/2003 | Anticipated Stabilization/ Delivery | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Under Construction | |||||||||||||||||||||||
140 National Business Parkway Annapolis Junction, Maryland (1) | BWI Airport | JV | 119,904 | 119,904 | 0.00 | % | $ | 17,399 | $ | 10,566 | $ | 4,968 | Construction November 2003 | ||||||||||
4230 Forbes Boulevard Lanham, Maryland (2) | Lanham | JV | 55,757 | 55,757 | 0.00 | % | 6,124 | 2,954 | 2,259 | Construction June 2004 | |||||||||||||
Total Under Construction | 175,661 | 175,661 | 0.00 | % | $ | 23,523 | $ | 13,520 | $ | 7,227 | |||||||||||||
Under Development | |||||||||||||||||||||||
2720 Technology Drive (220 NBP) Annapolis Junction, Maryland (3) | BWI Airport | JV | 156,730 | n/a | 100.00 | % | $ | 26,187 | $ | 4,329 | $ | — | Development December 2004 | ||||||||||
Total Under Development | 156,730 | 100.00 | % | $ | 26,187 | $ | 4,329 | $ | — | ||||||||||||||
- (1)
- Total loan commitment for this property is $14,100.
- (2)
- Total loan commitment for this property is $4,700.
- (3)
- We contributed this property into a joint venture on January 31, 2003 in exchange for $4.0 million and a 20% joint venture interest.
29
Year To Date Development Placed into Service
For the period January 1, 2003 through March 31, 2003
| | | Year 2002 | Year 2003 | | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Owned or Joint Venture (JV) | | | ||||||||||
Property and Location | Total Square Feet | Development Square Feet Placed into Service | Percentage Leased as of 3/31/03 | ||||||||||
6731 Columbia Gateway Drive | Owned | 123,743 | 73,902 | 49,841 | 63.45 | % | |||||||
8661 Robert Fulton Drive | JV | 49,500 | — | 49,500 | 46.54 | % | |||||||
8671 Robert Fulton Drive | JV | 56,350 | — | 56,350 | 50.92 | % | |||||||
TOTAL/AVERAGE | 229,593 | 73,902 | 155,691 | 56.28 | % | ||||||||
30
Joint Venture Summary as of March 31, 2003
(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 3/31/03 | Recourse to COPT | Option to Acquire Partner's Interest | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4230 Forbes Boulevard Lanham, Maryland | 80 | % | Construction | 55,757 | 5 acres | $ | 730 | $ | 2,259 | Yes, 50% | Yes | ||||||||
Robert Fulton Drive (Phase I) Columbia, Maryland (1) | 80 | % | Operating | 105,850 | 4 acres | 4,017 | 6,984 | Yes, 80% | Yes | ||||||||||
MOR Montpelier 3 LLC Laurel, Maryland | 50 | % | Development | 2 acres | 455 | — | N/A | Yes | |||||||||||
Gateway 70 Columbia, Maryland | 80 | % | Development | 12 acres | 2,443 | — | N/A | Yes | |||||||||||
140 NBP Annapolis Junction, Maryland | 10 | % | Construction | 119,904 | 13 acres | 1,156 | 4,968 | Yes, 100% | Yes | ||||||||||
220 NBP Annapolis Junction, Maryland (2) | 20 | % | Development | 156,730 | 11 acres | — | — | N/A | Yes | ||||||||||
695 Route 46 Wayne, New Jersey (3) | 20 | % | Operating | 157,394 | 13 acres | 878 | 14,500 | No | No | ||||||||||
TOTAL | $ | 9,679 | $ | 28,711 | |||||||||||||||
- (1)
- The off-balance sheet debt covers phases I and II of these properties.
- (2)
- Upon formation of this joint venture in January 2003, we contributed land and have recorded our investment as land, construction in progress and buildings and improvements on our balance sheet. In addition, we have obtained an option to purchase the joint venture partner's interest for a pre-determined price. Accordingly, we have recorded a liability and have been accreting towards the pre-determined purchase price over the respective time period.
- (3)
- Effective March 14, 2003, we contributed our wholly-owned property into a joint venture in exchange for a 20% joint venture interest and a cash payment of $19,960. The joint venture borrowed a $14,500, ten-year, 5.97% fixed interest rate loan from Allstate Life Insurance Company.
31
Reconciliations of Non GAAP Measurements
(Dollars in thousands)
| 2003 | 2002 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||
Net Income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | |||||||
Depreciation and other amortization | 7,980 | 8,805 | 7,424 | 7,939 | 6,829 | ||||||||||||
Preferred Share Dividends | 2,533 | 2,534 | 2,533 | 2,534 | 2,533 | ||||||||||||
Preferred Units in Operating Partnership | 572 | 571 | 572 | 572 | 572 | ||||||||||||
Common Units in Operating Partnership | 2,233 | 1,433 | 1,541 | 1,489 | 1,337 | ||||||||||||
Gain on investment property sales | (2,843 | ) | (156 | ) | (19 | ) | — | (93 | ) | ||||||||
Series B, E & F Preferred Share dividends | (2,397 | ) | (2,398 | ) | (2,398 | ) | (2,397 | ) | (2,397 | ) | |||||||
Expense associated with options | 6 | 8 | 3 | 12 | 14 | ||||||||||||
Dividends on restricted shares | 83 | 75 | 71 | — | — | ||||||||||||
Funds from Operations (FFO)—diluted | $ | 13,621 | $ | 14,298 | $ | 13,356 | $ | 13,499 | $ | 11,557 | |||||||
Net Income Available to Common Shareholders | $ | 5,454 | $ | 3,426 | $ | 3,629 | $ | 3,350 | $ | 2,762 | |||||||
Interest expense | 10,235 | 11,065 | 10,563 | 9,082 | 8,648 | ||||||||||||
Amortization of deferred financing costs | 589 | 708 | 559 | 706 | 528 | ||||||||||||
Income tax (expense) benefit | (29 | ) | (282 | ) | 11 | (36 | ) | (40 | ) | ||||||||
Depreciation of corporate FF&E | 120 | 171 | 120 | 115 | 102 | ||||||||||||
Depreciation and other amortization | 7,944 | 8,765 | 7,384 | 7,918 | 6,765 | ||||||||||||
Gain on investment property sales | (2,843 | ) | (156 | ) | (19 | ) | — | (93 | ) | ||||||||
Preferred Units in Operating Partnership | 572 | 571 | 572 | 572 | 572 | ||||||||||||
Common Units in Operating Partnership | 2,233 | 1,433 | 1,541 | 1,489 | 1,337 | ||||||||||||
Other consolidated entities | — | — | (104 | ) | 14 | 31 | |||||||||||
Preferred Share Dividends | 2,533 | 2,534 | 2,533 | 2,534 | 2,533 | ||||||||||||
Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) | $ | 26,808 | $ | 28,235 | $ | 26,789 | $ | 25,744 | $ | 23,145 | |||||||
Net investment in real estate | $ | 1,068,407 | $ | 1,059,129 | $ | 1,061,245 | $ | 995,311 | $ | 942,461 | |||||||
Addback: accumulated depreciation | 80,513 | 76,095 | 68,968 | 63,101 | 57,245 | ||||||||||||
Gross investment in real estate | $ | 1,148,920 | $ | 1,135,224 | $ | 1,130,213 | $ | 1,058,412 | $ | 999,706 | |||||||
GAAP Revenues from Real Estate Operations | $ | 41,518 | $ | 41,376 | $ | 38,065 | $ | 37,182 | $ | 33,713 | |||||||
Revenues from discontinued operations | 902 | 1,008 | 971 | 976 | 1,015 | ||||||||||||
Other income (expense) | (8 | ) | (17 | ) | (5 | ) | 2 | (3 | ) | ||||||||
Revenues from Real Estate Operations | $ | 42,412 | $ | 42,367 | $ | 39,031 | $ | 38,160 | $ | 34,725 | |||||||
Interest income | (97 | ) | (79 | ) | (113 | ) | (101 | ) | (81 | ) | |||||||
Total Regional Rental Revenue | $ | 42,315 | $ | 42,288 | $ | 38,918 | $ | 38,059 | $ | 34,644 | |||||||
GAAP Property Operating | $ | 13,654 | $ | 12,034 | $ | 11,994 | $ | 10,025 | $ | 9,876 | |||||||
Property operating from discontinued operations | 348 | 346 | 367 | 327 | 317 | ||||||||||||
Property Operating Expenses from Real Estate Operations | $ | 14,002 | $ | 12,380 | $ | 12,361 | $ | 10,352 | $ | 10,193 | |||||||
GAAP Revenues from Real Estate Operations | $ | 41,518 | $ | 41,376 | $ | 38,065 | $ | 37,182 | $ | 33,713 | |||||||
Property operating | (13,654 | ) | (12,034 | ) | (11,994 | ) | (10,025 | ) | (9,876 | ) | |||||||
Revenues from discontinued operations | 902 | 1,008 | 971 | 976 | 1,015 | ||||||||||||
Property operating from discontinued operations | (348 | ) | (346 | ) | (367 | ) | (327 | ) | (317 | ) | |||||||
Other revenue | (8 | ) | (17 | ) | (5 | ) | 2 | (3 | ) | ||||||||
Net Operating Income from Real Estate Operations | $ | 28,410 | $ | 29,987 | $ | 26,670 | $ | 27,808 | $ | 24,532 | |||||||
Interest income and other income (expense), net | (98 | ) | (76 | ) | (112 | ) | (104 | ) | (80 | ) | |||||||
Regional Net Operating Income | $ | 28,312 | $ | 29,911 | $ | 26,558 | $ | 27,704 | $ | 24,452 |
32
Funds from Operations (FFO) | Under the National Association of Real Estate Investment Trusts' ("NAREIT") definition, FFO means net income (loss) computed using GAAP, excluding gains (or losses) from debt restructuring and sales of real estate, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures, although FFO includes gains from the sales of real estate to the extent such gains related to sales of non-operating properties and development services provided on operating properties. The FFO we present may not be comparable to the FFO of other REITs since they may interpret the current NAREIT definition of FFO differently or they may not use the current NAREIT definition of FFO. | |
Adjusted Funds from Operations (AFFO) | FFO adjusted for the following: straight-line rents, SFAS 141 revenues, and recurring capital expenditures. | |
Net Operating Income (NOI) | Total revenues from real estate operations less total property expenses from real estate operations. | |
Cash Net Operating Income | Net Operating Income adjusted to remove the effect of straight-line rents and SFAS 141 revenues, which are non-cash revenue item. | |
Earnings Before Interest, Income Taxes and Depreciation and Amortization (EBITDA) | Net Operating Income adjusted for the following: general and administrative expenses, equity in income of unconsolidated real estate joint ventures, earnings from service company and merchant sales and real estate services revenues. | |
NAREIT | National Association of Real Estate Investment Trusts. | |
GAAP | Generally accepted accounting principles. | |
FFO Payout Ratio | Total dividends/distributions, exclusive of dividends for perpetual preferred equity which are deducted to calculate FFO and inclusive of dividends on restricted shares for certain periods, divided by FFO. | |
AFFO Payout Ratio | Total dividends/distributions, exclusive of dividends for perpetual preferred equity which are deducted to calculate AFFO and inclusive of dividends on restricted shares for certain periods, divided by AFFO. | |
Debt to Undepreciated Book Value of Real Estate Assets | Mortgage loans payable divided by gross investment in real estate as computed by adding accumulated depreciation to the net investment in real estate as presented on our balance sheet. | |
Base rent—straight-line | Contractual minimum rent under leases recorded into rental revenue using the average contractual rent over the lease term in accordance with GAAP. | |
Total rent—straight-line | Contractual minimum rent under leases plus estimated operating expense reimbursements, or total rent, recorded into total revenue using the average contractual rent over the lease term in accordance with GAAP. | |
Base rent—cash | Contractual minimum rent under leases remitted by the tenant at lease commencement or expiration. | |
Total rent—cash | Contractual minimum rent under leases plus estimated operating expense reimbursements, or total rent, as remitted by the tenant at lease commencement or expiration. |
33
Supplemental Information (Unaudited) March 31, 2003
Corporate Office Properties Trust Index to Supplemental Information (Unaudited) March 31, 2003
Quarterly Selected Financial Summary Data Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Net Income Available to Common Shareholders (Dollars and units in thousands)
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) (Dollars and shares 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 March 31, 2003)
Debt Maturity Schedule — March 31, 2003 (Dollars in thousands)
Property Summary by Region — March 31, 2003
Property Summary by Region — March 31, 2003
Property Summary by Region — March 31, 2003
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of March 31, 2003 (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 (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter (Dollars in thousands)
Average Occupancy Rates by Region for Same Office Properties(1)
Office Lease Expiration Analysis by Year
Quarterly Office Renewal Analysis
Year to Date Acquisition Summary as of March 31, 2003 (Dollars in thousands)
Year to Date Disposition Summary as of March 31, 2003 (Dollars in thousands)
Development Summary as of March 31, 2003 (Dollars in thousands except square feet)
Year To Date Development Placed into Service For the period January 1, 2003 through March 31, 2003
Joint Venture Summary as of March 31, 2003 (Dollars in thousands except acreage and square feet)
Reconciliations of Non GAAP Measurements
Definitions