Supplemental Information
March 31, 2006
Supplemental Information
Table of Contents
March 31, 2006
Schedule | Page | |
ii and iii | ||
1 | ||
2 | ||
3 | ||
4, 5 and 6 | ||
7 | ||
8, 9 and 10 | ||
11 | ||
12 | ||
13 and 14 | ||
15 | ||
16 | ||
17 | ||
18 | ||
19 | ||
20 | ||
21 | ||
22 | ||
23 | ||
24 | ||
25 | ||
26 |
The information within refers to all Highwoods Properties’ wholly-owned entities, except pages 24 to 26 unless
noted | otherwise. |
Certain matters discussed in this supplemental, including estimates of net operating income, pre-leasing commitments and the cost, timing and stabilization of announced development projects, are forward-looking statements within the meaning of the federal securities laws. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from Highwoods’ current expectations include general economic conditions, local real estate conditions, the timely development and lease-up of properties, and the other risks detailed from time to time in the Company’s SEC reports.
Highwoods Properties, Inc. | 3/31/06 |
Board of Directors
Thomas W. Adler Gene H. Anderson Kay N. Callison Edward J. Fritsch Lawrence S. Kaplan Sherry Kellett L. Glenn Orr Jr. O. Temple Sloan Jr., Chairman F. William Vandiver, Jr. | Research Coverage
Deutsche Banc Securities
Lou Taylor - 212-469-4912
Green Street Advisors
Jim Sullivan - 949-640-8780
Stifel Nicolaus
John Guinee - 410-454-5520
Morgan Stanley Dean Witter
David Cohen - 212-761-8564
Smith Barney Citigroup
Jonathan Litt - 212-816-0231
Wachovia Securities
Chris Haley - 443-263-6773 | |
Corporate Officers
Edward J. Fritsch President, Chief Executive Officer and Director
Michael E. Harris Executive Vice President and Chief Operating Officer
Terry L. Stevens Vice President, Chief Financial Officer
S. Hugh Esleeck Treasurer
Julie M. Kelly Vice President, Compliance and Internal Audit
Carman J. Liuzzo Vice President, Investments
Kevin E. Penn Chief Information Officer and Vice President, Strategy
Mack D. Pridgen III Vice President, General Counsel and Secretary
Tabitha Zane Vice President, Investor Relations and Corporate Communications |
Highwoods Properties, Inc. ii | 3/31/06 |
Corporate Information
Divisional Officers
Atlanta/Piedmont Triad Gene H. Anderson - Regional Manager
Atlanta, GA Gene H. Anderson, Senior Vice President
Piedmont Triad, NC Mark W. Shumaker, Vice President
Orlando/Tampa Michael F. Beale - Regional Manager
Orlando, FL Michael F. Beale, Senior Vice President
Tampa, FL Stephen A. Meyers, Vice President
Raleigh Raleigh, NC Thomas “Skip” Hill, Vice President
Richmond Richmond, VA Paul W. Kreckman, Vice President
Memphis/Nashville/Columbia/Greenville W. Brian Reames - Regional Manager
Nashville, TN W. Brian Reames, Senior Vice President
Columbia, SC and Greenville, SC W. Brian Reames, Senior Vice President
Memphis, TN Steven Guinn, Vice President
Kansas City Kansas City, MO Barrett Brady, Senior Vice President
| Corporate Headquarters Highwoods Properties, Inc. 3100 Smoketree Court, Suite 600 Raleigh, NC 27604 919-872-4924
Stock Exchange NYSE Trading Symbol: HIW
Investor Relations Contact Tabitha Zane Vice President, Investor Relations and Corporate Communications Phone: 919-431-1529 Fax: 919-876-6929 E-mail: tabitha.zane@highwoods.com
Information Request To request a standard Investor Relations package, Annual Report or to be added to our e-mail or fax list, please contact the Corporate Communications/IR Specialist at: Phone: 919-431-1521 Email: HIW-IR@highwoods.com
The Company Highwoods Properties, Inc., a member of the S&P MidCap 400 Index, is a fully integrated, self-administered real estate investment trust (“REIT”) that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. As of March 31, 2006, the Company owned or had an interest in 417 in-service office, industrial and retail properties encompassing approximately 35.0 million square feet. Highwoods also owns 896 acres of development land. Highwoods is based in Raleigh, North Carolina, and its properties and development land are located in Florida, Georgia, Iowa, Kansas, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our Web site at www.highwoods.com. | |
Highwoods Properties, Inc. iii | 3/31/06 |
Exhibit 99.2
Dollars, shares, and units in thousands
| |||||||||||||||
03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | 03/31/05 | |||||||||||
Long-Term Debt (see pages 2 & 3): | $ | 1,450,424 | $ | 1,471,615 | $ | 1,441,081 | $ | 1,559,352 | $ | 1,582,388 | |||||
Eastshore Debt 1/ | — | — | — | 19,800 | — | ||||||||||
Total debt per the balance sheet | 1,450,424 | 1,471,615 | 1,441,081 | 1,579,152 | 1,582,388 | ||||||||||
Finance Obligations: | $ | 33,833 | $ | 33,706 | $ | 34,746 | $ | 43,168 | $ | 63,096 | |||||
Preferred Stock (at redemption value): | |||||||||||||||
Series A 8 5/8% Perpetual Preferred Stock | $ | 104,945 | $ | 104,945 | $ | 104,945 | $ | 104,945 | $ | 104,945 | |||||
Series B 8% Perpetual Preferred Stock | 92,500 | 142,500 | 142,500 | 172,500 | 172,500 | ||||||||||
Series D 8% Perpetual Preferred Stock | — | — | — | 100,000 | 100,000 | ||||||||||
Total preferred stock | $ | 197,445 | $ | 247,445 | $ | 247,445 | $ | 377,445 | $ | 377,445 | |||||
Shares and Units Outstanding: | |||||||||||||||
Common stock outstanding | 54,054 | 54,029 | 54,030 | 54,037 | 54,053 | ||||||||||
Minority interest partnership units | 5,401 | 5,450 | 5,493 | 5,668 | 5,828 | ||||||||||
Total shares and units outstanding | 59,455 | 59,479 | 59,523 | 59,705 | 59,881 | ||||||||||
Stock price at period end | $ | 33.73 | $ | 28.45 | $ | 29.51 | $ | 29.76 | $ | 26.82 | |||||
Market value of common equity | $ | 2,005,417 | $ | 1,692,178 | $ | 1,756,524 | $ | 1,776,821 | $ | 1,606,008 | |||||
Total market capitalization with debt and obligations | $ | 3,687,119 | $ | 3,444,944 | $ | 3,479,796 | $ | 3,756,786 | $ | 3,628,937 | |||||
1/ | This debt is the 100% obligation of an entity that Highwoods has no ownership interest in but which had been consolidated according to GAAP. The value of this debt is not included in “total market capitalization with debt and obligations.” These properties are no longer consolidated as of 9/30/05. |
Highwoods Properties, Inc. | Page 1 | 3/31/06 |
Dollars in thousands | ||||||||||||||||||||
03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | 03/31/05 | ||||||||||||||||
Balances Outstanding: | ||||||||||||||||||||
Secured: | ||||||||||||||||||||
Conventional fixed rate 1/ | $ | 700,122 | $ | 667,137 | $ | 676,855 | $ | 709,948 | $ | 754,604 | ||||||||||
Variable rate debt 2/ | 12,302 | 53,978 | 46,226 | 84,404 | 67,784 | |||||||||||||||
Secured total | $ | 712,424 | $ | 721,115 | $ | 723,081 | $ | 794,352 | $ | 822,388 | ||||||||||
Unsecured: | ||||||||||||||||||||
Fixed rate bonds and notes | $ | 460,000 | $ | 460,000 | $ | 460,000 | $ | 460,000 | $ | 460,000 | ||||||||||
Variable rate debt | 100,000 | 100,000 | 100,000 | 120,000 | 120,000 | |||||||||||||||
Credit facility | 178,000 | 190,500 | 158,000 | 185,000 | 180,000 | |||||||||||||||
Unsecured total | $ | 738,000 | $ | 750,500 | $ | 718,000 | $ | 765,000 | $ | 760,000 | ||||||||||
Total | $ | 1,450,424 | $ | 1,471,615 | $ | 1,441,081 | $ | 1,559,352 | $ | 1,582,388 | ||||||||||
Average Interest Rates: | ||||||||||||||||||||
Secured: | ||||||||||||||||||||
Conventional fixed rate | 6.9 | % | 7.0 | % | 7.0 | % | 7.1 | % | 7.2 | % | ||||||||||
Variable rate debt | 5.4 | % | 5.5 | % | 5.0 | % | 4.9 | % | 4.7 | % | ||||||||||
Secured total | 6.9 | % | 6.9 | % | 6.9 | % | 6.8 | % | 6.9 | % | ||||||||||
Unsecured: | ||||||||||||||||||||
Fixed rate bonds | 7.4 | % | 7.4 | % | 7.4 | % | 7.4 | % | 7.4 | % | ||||||||||
Variable rate debt | 5.8 | % | 5.4 | % | 5.4 | % | 4.7 | % | 3.5 | % | ||||||||||
Credit facility | 5.8 | % | 5.4 | % | 4.9 | % | 4.3 | % | 3.4 | % | ||||||||||
Unsecured total | 6.8 | % | 6.6 | % | 6.5 | % | 6.2 | % | 6.0 | % | ||||||||||
Average | 6.8 | % | 6.7 | % | 6.7 | % | 6.5 | % | 6.5 | % | ||||||||||
Maturity Schedule: | ||||||||||||||||||||
Future Maturities of Debt | Total Debt 3/ | Average Interest Rate | ||||||||||||||||||
Year | Secured Debt 3/ | Unsecured Debt | ||||||||||||||||||
2006 4/ | $ | — | $ | 388,000 | $ | 388,000 | 6.1 | % | ||||||||||||
2007 | 80,513 | — | 80,513 | 7.8 | % | |||||||||||||||
2008 | — | 100,000 | 100,000 | 7.1 | % | |||||||||||||||
2009 | 154,486 | 50,000 | 204,486 | 7.9 | % | |||||||||||||||
2010 | 134,476 | — | 134,476 | 7.8 | % | |||||||||||||||
2011 | — | — | — | — | ||||||||||||||||
2012 | 22,800 | — | 22,800 | 6.1 | % | |||||||||||||||
2013 | 276,218 | — | 276,218 | 5.9 | % | |||||||||||||||
2014 | 38,799 | — | 38,799 | 5.8 | % | |||||||||||||||
2015 | — | — | — | — | ||||||||||||||||
Thereafter | 5,132 | 200,000 | 205,132 | 7.5 | % | |||||||||||||||
Total maturities | $ | 712,424 | $ | 738,000 | $ | 1,450,424 | 6.8 | % | ||||||||||||
Weighted average maturity = 4.3 years
1/ | March 31, 2006 includes a $22.8 million loan related to a consolidated 20% owned joint venture property (Harborview) and $38.8 million in loans related to consolidated 50% joint venture properties (Markel) |
2/ | March 31, 2006 includes an $8.9 million construction loan related to a consolidated 50% owned joint venture property (Vinings) |
3/ | All periods exclude annual principal amortization |
4/ | The $388.0 million of unsecured debt maturities at 3/31/06 includes $178.0 million related to a credit facility and $100 million bank term loan that were scheduled to mature in July, 2006. On May 1, 2006, the company entered into a new $350 million credit facility that matures in 2009, which can be extended for an additional year, and paid off the old facility and bank term loan. |
Highwoods Properties, Inc. | Page 2 | 3/31/06 |
Dollars in thousands | ||||||||
Secured Loans | ||||||||
Lender | Rate | Maturity Date | Loan Balance 03/31/06 | |||||
Monumental Life Ins. Co. | 7.8 | % | Nov-09 | $ | 148,471 | |||
Northwestern Mutual | 6.0 | % | Mar-13 | 139,358 | ||||
Northwestern Mutual | 7.8 | % | Nov-10 | 134,476 | ||||
Massachusetts Mutual Life Ins. Co. 1/ | 5.7 | % | Dec-13 | 124,913 | ||||
Northwestern Mutual | 8.2 | % | Feb-07 | 62,904 | ||||
Metropolitan Life Ins. Co. 2/ | 6.1 | % | Oct-12 | 22,800 | ||||
Principal Life Insurance Company 3/ | 5.8 | % | Jan-14 | 11,894 | ||||
Principal Life Insurance Company 3/ | 5.8 | % | Jan-14 | 11,894 | ||||
Massachusetts Mutual Life Ins. Co. 1/ | 6.5 | % | Dec-13 | 11,000 | ||||
Principal Life Insurance Company 3/ | 5.7 | % | Jan-14 | 9,382 | ||||
Central Carolina Bank 4/ 5/ | 4.8 | % | Jan-08 | 8,888 | ||||
Principal Life Insurance Company 3/ | 5.9 | % | Jan-14 | 5,629 | ||||
PFL Life Ins. Co. 6/ | 8.1 | % | Jun-07 | 5,308 | ||||
Ohio National | 8.0 | % | Nov-17 | 5,132 | ||||
Lutheran Brotherhood | 6.8 | % | Apr-09 | 3,891 | ||||
PFL Life Ins. Co. 6/ 7/ | 7.1 | % | Jun-07 | 3,414 | ||||
Security Life of Denver | 8.9 | % | Aug-09 | 2,124 | ||||
American United Life | 9.0 | % | Jun-13 | 946 | ||||
6.9 | % | $ | 712,424 | |||||
Unsecured Bonds | ||||||||
Bonds | 7.0 | % | Dec-06 | $ | 110,000 | |||
Bonds | 7.1 | % | Feb-08 | 100,000 | ||||
Bonds | 8.1 | % | Jan-09 | 50,000 | ||||
Bonds | 7.5 | % | Apr-18 | 200,000 | ||||
7.4 | % | $ | 460,000 | |||||
Unsecured Loans | ||||||||
Term Loan 5/ 8/ | 5.8 | % | Jul-06 | $ | 100,000 | |||
Line of Credit 5/ 8/ | 5.8 | % | Jul-06 | 178,000 | ||||
5.8 | % | $ | 278,000 | |||||
Total Debt | 6.8 | % | $ | 1,450,424 | ||||
1/ | These two loans are secured by the same assets. |
2/ | Loan relates to a consolidated 20% owned joint venture property (Harborview). |
3/ | Loans relate to a consolidated 50% owned joint venture property (Markel). |
4/ | Loan relates to a consolidated 50% owned joint venture property (Vinings). |
5/ | Floating rate loan based on one month libor. |
6/ | These two loans are secured by the same assets. |
7/ | Floating rate loan based on ninety day libor. |
8/ | On May 1, 2006 these two loans were paid off when the company closed on a new $350 million line of credit. |
Highwoods Properties, Inc. | Page 3 | 3/31/06 |
Portfolio Summary - Wholly-Owned Properties Only 1/
(Rentable Square Feet) | |||||||||||||||
Office Industrial & Retail | 03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | 03/31/05 | ||||||||||
In-Service: | |||||||||||||||
Office 2/ | 19,691,000 | 21,412,000 | 21,432,000 | 23,849,000 | 24,254,000 | ||||||||||
Industrial | 6,706,000 | 6,977,000 | 6,977,000 | 6,623,000 | 6,991,000 | ||||||||||
Retail 3/ | 1,408,000 | 1,416,000 | 1,417,000 | 1,417,000 | 1,409,000 | ||||||||||
Total | 27,805,000 | 29,805,000 | 29,826,000 | 31,889,000 | 32,654,000 | ||||||||||
Development Completed - Not Stabilized: | |||||||||||||||
Office 2/ | — | — | — | — | — | ||||||||||
Industrial | — | — | — | 353,000 | 353,000 | ||||||||||
Retail | 9,600 | 9,600 | 9,600 | 9,600 | — | ||||||||||
Total | 9,600 | 9,600 | 9,600 | 362,600 | 353,000 | ||||||||||
Development - In Process: | |||||||||||||||
Office 2/ | 1,026,000 | 533,000 | 780,000 | 710,000 | 358,000 | ||||||||||
Industrial | 418,000 | — | — | — | — | ||||||||||
Retail | 23,000 | — | — | — | 9,600 | ||||||||||
Total | 1,467,000 | 533,000 | 780,000 | 710,000 | 367,600 | ||||||||||
Total: | |||||||||||||||
Office 2/ | 20,717,000 | 21,945,000 | 22,212,000 | 24,559,000 | 24,612,000 | ||||||||||
Industrial | 7,124,000 | 6,977,000 | 6,977,000 | 6,976,000 | 7,344,000 | ||||||||||
Retail 3/ | 1,440,600 | 1,425,600 | 1,426,600 | 1,426,600 | 1,418,600 | ||||||||||
Total | 29,281,600 | 30,347,600 | 30,615,600 | 32,961,600 | 33,374,600 | ||||||||||
Same Property | |||||||||||||||
Office 2/ | 19,323,000 | 19,323,000 | 19,323,000 | 19,323,000 | 19,323,000 | ||||||||||
Industrial | 6,352,000 | 6,352,000 | 6,352,000 | 6,352,000 | 6,352,000 | ||||||||||
Retail | 1,408,000 | 1,408,000 | 1,408,000 | 1,408,000 | 1,408,000 | ||||||||||
Total | 27,083,000 | 27,083,000 | 27,083,000 | 27,083,000 | 27,083,000 | ||||||||||
Percent Leased/Pre-Leased: | |||||||||||||||
In-Service: | |||||||||||||||
Office | 87.1 | % | 87.5 | % | 85.0 | % | 83.5 | % | 82.3 | % | |||||
Industrial | 88.0 | % | 92.4 | % | 86.2 | % | 83.8 | % | 86.8 | % | |||||
Retail | 95.7 | % | 97.5 | % | 96.4 | % | 96.0 | % | 95.5 | % | |||||
Total | 87.7 | % | 89.1 | % | 85.8 | % | 84.1 | % | 83.8 | % | |||||
Development Completed - Not Stabilized: | |||||||||||||||
Office | — | — | — | — | — | ||||||||||
Industrial | — | — | — | 100.0 | % | 100.0 | % | ||||||||
Retail | 88.0 | % | 87.0 | % | 87.0 | % | 87.0 | % | — | ||||||
Total | 88.0 | % | 87.0 | % | 87.0 | % | 99.7 | % | 100.0 | % | |||||
Development - In Process: | |||||||||||||||
Office | 57.1 | % | 37.2 | % | 57.1 | % | 60.8 | % | 100.0 | % | |||||
Industrial | 43.8 | % | — | — | — | — | |||||||||
Retail | 100.0 | % | — | — | — | 66.0 | % | ||||||||
Total | 54.0 | % | 37.2 | % | 57.1 | % | 60.8 | % | 99.1 | % | |||||
Same Property | |||||||||||||||
Office | 86.8 | % | 88.3 | % | 86.6 | % | 86.2 | % | 85.8 | % | |||||
Industrial | 87.3 | % | 92.8 | % | 86.9 | % | 84.4 | % | 86.9 | % | |||||
Retail | 95.7 | % | 98.1 | % | 97.0 | % | 96.6 | % | 95.6 | % | |||||
Total | 87.4 | % | 89.9 | % | 87.3 | % | 86.3 | % | 86.6 | % | |||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Substantially all of our Office properties are located in suburban markets |
3/ | Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties |
Highwoods Properties, Inc. | Page 4 | 3/31/06 |
Portfolio Summary
(Continued)
As of March 31, 2006 | ||||||||||||||||||
Summary by Location, Wholly-Owned Properties Only 1/: | ||||||||||||||||||
Percentage of Annualized Revenue 2/ | ||||||||||||||||||
Market | Rentable Square Feet | Occupancy | Office | Industrial | Retail | Total | ||||||||||||
Raleigh /3 | 4,102,000 | 82.7 | % | 14.9 | % | 0.2 | % | — | 15.1 | % | ||||||||
Atlanta | 5,584,000 | 91.1 | % | 10.6 | % | 3.9 | % | — | 14.5 | % | ||||||||
Kansas City | 2,306,000 | 4/ | 90.4 | % | 4.5 | % | — | 10.0 | % | 14.5 | % | |||||||
Nashville | 2,874,000 | 90.7 | % | 13.3 | % | — | — | 13.3 | % | |||||||||
Tampa | 2,523,000 | 91.9 | % | 12.1 | % | — | — | 12.1 | % | |||||||||
Piedmont Triad /5 | 5,589,000 | 86.7 | % | 7.4 | % | 3.8 | % | — | 11.2 | % | ||||||||
Richmond | 1,954,000 | 91.3 | % | 8.3 | % | — | — | 8.3 | % | |||||||||
Memphis | 1,197,000 | 89.9 | % | 5.4 | % | — | — | 5.4 | % | |||||||||
Greenville | 1,106,000 | 73.4 | % | 3.5 | % | 0.1 | % | — | 3.6 | % | ||||||||
Orlando | 218,000 | 99.5 | % | 1.2 | % | — | — | 1.2 | % | |||||||||
Columbia | 252,000 | 41.4 | % | 0.4 | % | — | — | 0.4 | % | |||||||||
Other | 100,000 | 62.4 | % | 0.4 | % | — | — | 0.4 | % | |||||||||
Total | 27,805,000 | 87.7 | % | 82.0 | % | 8.0 | % | 10.0 | % | 100.0 | % | |||||||
Summary by Location, Including Joint Venture Properties: |
| ||||||||||||||||||||
Percentage of Annualized Revenue 2/ 6/ | |||||||||||||||||||||
Market | Rentable Square Feet | Occupancy | Office | Industrial | Retail | Multi-Family | Total | ||||||||||||||
Atlanta | 6,419,000 | 91.6 | % | 10.7 | % | 3.5 | % | — | — | 14.2 | % | ||||||||||
Kansas City | 3,019,000 | 4/ | 88.3 | % | 5.0 | % | — | 8.8 | % | — | 13.8 | % | |||||||||
Raleigh | 4,557,000 | 84.4 | % | 13.5 | % | 0.1 | % | — | — | 13.6 | % | ||||||||||
Nashville | 2,874,000 | 90.7 | % | 11.7 | % | — | — | — | 11.7 | % | |||||||||||
Tampa | 2,728,000 | 92.5 | % | 10.9 | % | — | — | — | 10.9 | % | |||||||||||
Piedmont Triad | 5,953,000 | 87.5 | % | 6.9 | % | 3.3 | % | — | — | 10.2 | % | ||||||||||
Richmond | 2,367,000 | 92.8 | % | 7.9 | % | — | — | — | 7.9 | % | |||||||||||
Des Moines | 2,315,000 | 93.1 | % | 3.7 | % | 0.5 | % | 0.1 | % | 0.4 | % | 4.7 | % | ||||||||
Memphis | 1,197,000 | 89.9 | % | 4.7 | % | — | — | — | 4.7 | % | |||||||||||
Orlando | 1,903,000 | 95.4 | % | 4.2 | % | — | — | — | 4.2 | % | |||||||||||
Greenville | 1,106,000 | 73.4 | % | 3.1 | % | 0.1 | % | — | — | 3.2 | % | ||||||||||
Columbia | 252,000 | 41.4 | % | 0.4 | % | — | — | — | 0.4 | % | |||||||||||
Other | 210,000 | 82.1 | % | 0.4 | % | — | — | — | 0.4 | % | |||||||||||
Charlotte | 148,000 | 100.0 | % | 0.1 | % | — | — | — | 0.1 | % | |||||||||||
Total | 35,048,000 | 89.1 | % | 83.2 | % | 7.5 | % | 8.9 | % | 0.4 | % | 100.0 | % | ||||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
3/ | Raleigh Market encompasses Raleigh, Durham, Cary, and Research Triangle metropolitan area. |
4/ | Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties |
5/ | Piedmont Triad Market encompasses Greensboro, Winston-Salem metropolitan area. |
6/ | Includes Highwoods’ share of Joint Venture Annualized Rental Revenue, see page 24 |
Highwoods Properties, Inc. | Page 5 | 3/31/06 |
Portfolio Summary—Wholly-Owned Properties Only 1/
(Continued)
As of March 31, 2006 | ||||||||||||||||
Office Properties | Industrial | |||||||||||||||
Market | Rentable Square Feet | Occupancy | Percentage of Office Annualized Revenue 2/ | Rentable Square Feet | Occupancy | Percentage of Industrial Annualized Revenue 2/ | ||||||||||
Raleigh | 4,001,000 | 83.2 | % | 18.3 | % | 101,000 | 63.0 | % | 1.9 | % | ||||||
Nashville | 2,874,000 | 90.7 | % | 16.2 | % | — | — | — | ||||||||
Tampa | 2,523,000 | 91.9 | % | 14.7 | % | — | — | — | ||||||||
Atlanta | 2,529,000 | 86.0 | % | 13.0 | % | 3,055,000 | 95.4 | % | 49.5 | % | ||||||
Richmond | 1,954,000 | 91.3 | % | 10.1 | % | — | — | — | ||||||||
Piedmont Triad | 2,146,000 | 90.8 | % | 9.0 | % | 3,443,000 | 84.2 | % | 47.6 | % | ||||||
Memphis | 1,197,000 | 89.9 | % | 6.5 | % | — | — | — | ||||||||
Kansas City | 894,000 | 82.0 | % | 5.4 | % | 4,000 | 100.0 | % | 0.1 | % | ||||||
Greenville | 1,003,000 | 78.8 | % | 4.3 | % | 103,000 | 20.7 | % | 0.9 | % | ||||||
Orlando | 218,000 | 99.5 | % | 1.5 | % | — | — | — | ||||||||
Columbia | 252,000 | 41.4 | % | 0.5 | % | — | — | — | ||||||||
Other | 100,000 | 62.4 | % | 0.5 | % | — | — | — | ||||||||
19,691,000 | 87.1 | % | 100.0 | % | 6,706,000 | 88.0 | % | 100.0 | % | |||||||
Retail | ||||||||||||||||
Market | Rentable Square Feet | Occupancy | Percentage of Retail Annualized Revenue 2/ | |||||||||||||
Kansas City 3/ | 1,408,000 | 95.7 | % | 100.0 | % | |||||||||||
1,408,000 | 95.7 | % | 100.0 | % | ||||||||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
3/ | Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties |
Highwoods Properties, Inc. | Page 6 | 3/31/06 |
Occupancy Trends - Office, Industrial and Retail Properties 1/
Market | Measurement | 03/31/06 | 12/31/05 | 09/30/05 | 06/30/05 | 03/31/05 | |||||||||||
Atlanta | Rentable Square Feet | 5,584,000 | 6,806,000 | 6,818,000 | 6,465,000 | 6,826,000 | |||||||||||
Occupancy | 91.1 | % | 87.4 | % | 83.3 | % | 81.9 | % | 83.0 | % | |||||||
Current Properties 2/ | 90.3 | % | 90.1 | % | 88.0 | % | 86.7 | % | 86.7 | % | |||||||
Charlotte | Rentable Square Feet | — | — | — | 1,492,000 | 1,492,000 | |||||||||||
Occupancy | — | — | — | 66.9 | % | 67.7 | % | ||||||||||
Current Properties 2/ | — | — | — | — | — | ||||||||||||
Columbia | Rentable Square Feet | 252,000 | 426,000 | 426,000 | 426,000 | 426,000 | |||||||||||
Occupancy | 41.4 | % | 58.9 | % | 62.0 | % | 61.6 | % | 59.9 | % | |||||||
Current Properties 2/ | 41.4 | % | 38.2 | % | 41.9 | % | 40.8 | % | 39.9 | % | |||||||
Greenville | Rentable Square Feet | 1,106,000 | 1,105,000 | 1,105,000 | 1,105,000 | 1,127,000 | |||||||||||
Occupancy | 73.4 | % | 73.0 | % | 71.2 | % | 75.5 | % | 81.1 | % | |||||||
Current Properties 2/ | 73.4 | % | 72.9 | % | 71.1 | % | 75.5 | % | 82.6 | % | |||||||
Kansas City 3/ | Rentable Square Feet | 2,306,000 | 2,314,000 | 2,315,000 | 2,315,000 | 2,308,000 | |||||||||||
Occupancy | 90.4 | % | 92.2 | % | 91.7 | % | 91.4 | % | 91.6 | % | |||||||
Current Properties 2/ | 90.4 | % | 92.5 | % | 92.1 | % | 91.8 | % | 91.7 | % | |||||||
Memphis | Rentable Square Feet | 1,197,000 | 1,197,000 | 1,216,000 | 1,216,000 | 1,216,000 | |||||||||||
Occupancy | 90.0 | % | 88.8 | % | 83.8 | % | 82.3 | % | 80.6 | % | |||||||
Current Properties 2/ | 90.0 | % | 88.8 | % | 83.8 | % | 82.3 | % | 80.6 | % | |||||||
Nashville | Rentable Square Feet | 2,874,000 | 2,874,000 | 2,874,000 | 2,873,000 | 2,870,000 | |||||||||||
Occupancy | 90.6 | % | 94.0 | % | 95.6 | % | 95.1 | % | 92.8 | % | |||||||
Current Properties 2/ | 90.6 | % | 94.0 | % | 95.6 | % | 95.0 | % | 92.7 | % | |||||||
Orlando | Rentable Square Feet | 218,000 | 218,000 | 218,000 | 218,000 | 222,000 | |||||||||||
Occupancy | 99.5 | % | 100.0 | % | 100.0 | % | 96.8 | % | 97.7 | % | |||||||
Current Properties 2/ | 99.5 | % | 100.0 | % | 100.0 | % | 96.8 | % | 99.5 | % | |||||||
Piedmont Triad | Rentable Square Feet | 5,589,000 | 5,589,000 | 5,589,000 | 5,593,000 | 5,722,000 | |||||||||||
Occupancy | 86.7 | % | 93.1 | % | 89.1 | % | 88.3 | % | 90.4 | % | |||||||
Current Properties 2/ | 86.7 | % | 93.1 | % | 89.1 | % | 88.4 | % | 91.0 | % | |||||||
Raleigh | Rentable Square Feet | 4,102,000 | 4,232,000 | 4,358,000 | 4,432,000 | 4,432,000 | |||||||||||
Occupancy | 82.7 | % | 87.5 | % | 85.5 | % | 83.8 | % | 83.3 | % | |||||||
Current Properties 2/ | 82.7 | % | 87.7 | % | 86.6 | % | 85.1 | % | 84.4 | % | |||||||
Richmond | Rentable Square Feet | 1,954,000 | 1,955,000 | 1,955,000 | 1,841,000 | 1,836,000 | |||||||||||
Occupancy | 91.3 | % | 94.4 | % | 93.1 | % | 93.2 | % | 95.1 | % | |||||||
Current Properties 2/ | 90.7 | % | 94.0 | % | 92.7 | % | 93.2 | % | 94.8 | % | |||||||
Tampa | Rentable Square Feet | 2,523,000 | 2,989,000 | 2,851,000 | 3,813,000 | 4,077,000 | |||||||||||
Occupancy | 91.9 | % | 87.6 | % | 76.7 | % | 77.2 | % | 70.5 | % | |||||||
Current Properties 2/ | 91.4 | % | 88.9 | % | 77.5 | % | 73.8 | % | 70.9 | % | |||||||
Total 4/ | Rentable Square Feet | 27,705,000 | 29,705,000 | 29,725,000 | 31,789,000 | 32,554,000 | |||||||||||
Occupancy | 87.7 | % | 89.1 | % | 85.8 | % | 84.1 | % | 83.8 | % | |||||||
Current Properties 2/ | 87.4 | % | 89.9 | % | 87.3 | % | 86.3 | % | 86.6 | % | |||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Only properties that were owned and in-service for all periods shown are included. |
3/ | Excludes 430,000 square feet of basement space in the Country Club Plaza and other Kansas City retail properties |
4/ | Excludes a 100,000 square foot building located in South Florida |
Highwoods Properties, Inc. | Page 7 | 3/31/06 |
Office Portfolio 1/
Three Months Ended | ||||||||||||||||||||||||
3/31/06 2/ | 12/31/05 3/ | 9/30/05 4/ | 6/30/05 5/ | 3/31/05 6/ | Average | |||||||||||||||||||
Net Effective Rents Related to | ||||||||||||||||||||||||
Number of lease transactions (signed leases) | 188 | 171 | 180 | 223 | 188 | 190 | ||||||||||||||||||
Rentable square footage leased | 944,222 | 1,169,148 | 1,069,468 | 1,155,513 | 1,235,718 | 1,114,814 | ||||||||||||||||||
Square footage of Renewal Deals | 528,275 | 890,582 | 826,512 | 785,827 | 677,799 | 741,799 | ||||||||||||||||||
Renewed square footage (% of total) | 55.9 | % | 76.2 | % | 77.3 | % | 68.0 | % | 54.9 | % | 66.5 | % | ||||||||||||
New Leases square footage (% of total) | 44.1 | % | 23.8 | % | 22.7 | % | 32.0 | % | 45.1 | % | 33.5 | % | ||||||||||||
Weighted average per rentable square foot over the lease term: | ||||||||||||||||||||||||
Base rent | $ | 18.06 | $ | 17.37 | $ | 17.71 | $ | 17.31 | $ | 16.20 | $ | 17.33 | ||||||||||||
Tenant improvements | (1.52 | ) | (1.67 | ) | (1.10 | ) | (1.45 | ) | (0.94 | ) | (1.34 | ) | ||||||||||||
Leasing commissions 7/ | (0.62 | ) | (0.66 | ) | (0.57 | ) | (0.60 | ) | (0.66 | ) | (0.62 | ) | ||||||||||||
Rent concessions | (0.31 | ) | (0.27 | ) | (0.27 | ) | (0.31 | ) | (0.41 | ) | (0.31 | ) | ||||||||||||
Effective rent | 15.61 | 14.77 | 15.77 | 14.95 | 14.19 | 15.06 | ||||||||||||||||||
Expense stop | (5.57 | ) | (4.79 | ) | (4.85 | ) | (5.33 | ) | (4.46 | ) | (5.00 | ) | ||||||||||||
Equivalent effective net rent | $ | 10.04 | $ | 9.98 | $ | 10.92 | $ | 9.62 | $ | 9.73 | $ | 10.06 | ||||||||||||
Weighted average term in years | 4.3 | 5.0 | 3.8 | 4.1 | 5.7 | 4.6 | ||||||||||||||||||
Capital Expenditures Related to | ||||||||||||||||||||||||
Tenant Improvements: | ||||||||||||||||||||||||
Total dollars committed under signed leases | $ | 7,270,758 | $ | 10,506,779 | $ | 5,996,413 | $ | 8,869,553 | $ | 5,644,830 | $ | 7,657,667 | ||||||||||||
Rentable square feet | 944,222 | 1,169,148 | 1,069,468 | 1,155,513 | 1,235,718 | 1,114,814 | ||||||||||||||||||
Per rentable square foot | $ | 7.70 | $ | 8.99 | $ | 5.61 | $ | 7.68 | $ | 4.57 | $ | 6.87 | ||||||||||||
Leasing Commissions: | ||||||||||||||||||||||||
Total dollars committed under signed leases 7/ | $ | 2,363,857 | $ | 3,551,312 | $ | 2,398,139 | $ | 2,629,936 | $ | 4,109,601 | $ | 3,010,569 | ||||||||||||
Rentable square feet | 944,222 | 1,169,148 | 1,069,468 | 1,155,513 | 1,235,718 | 1,114,814 | ||||||||||||||||||
Per rentable square foot | $ | 2.50 | $ | 3.04 | $ | 2.24 | $ | 2.28 | $ | 3.33 | $ | 2.70 | ||||||||||||
Total: | ||||||||||||||||||||||||
Total dollars committed under signed leases | $ | 9,634,615 | $ | 14,058,091 | $ | 8,394,552 | $ | 11,499,489 | $ | 9,754,431 | $ | 10,668,236 | ||||||||||||
Rentable square feet | 944,222 | 1,169,148 | 1,069,468 | 1,155,513 | 1,235,718 | 1,114,814 | ||||||||||||||||||
Per rentable square foot | $ | 10.20 | $ | 12.02 | $ | 7.85 | $ | 9.95 | $ | 7.89 | $ | 9.57 | ||||||||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Includes 82K square feet of leases that start in 2008 or later |
3/ | Includes 171K square feet of leases that start in 2008 or later |
4/ | Includes 115K square feet of leases that start in 2008 or later |
5/ | Includes 68K square feet of leases that start in 2008 or later |
6/ | Includes 89K square feet of leases that start in 2008 or later |
7/ | Excludes a full allocation of internal leasing costs |
Highwoods Properties, Inc. | Page 8 | 3/31/06 |
Leasing Statistics
Industrial Portfolio
Three Months Ended | ||||||||||||||||||||||||
3/31/06 1/ | 12/31/05 2/ | 9/30/05 3/ | 6/30/05 4/ | 3/31/05 | Average | |||||||||||||||||||
Net Effective Rents Related to Re-Leased Space: | ||||||||||||||||||||||||
Number of lease transactions (signed leases) | 22 | 29 | 32 | 30 | 15 | 26 | ||||||||||||||||||
Rentable square footage leased | 300,496 | 532,917 | 498,819 | 359,342 | 599,048 | 458,124 | ||||||||||||||||||
Square footage of Renewal Deals | 165,621 | 274,174 | 349,405 | 224,203 | 579,069 | 318,494 | ||||||||||||||||||
Renewed square footage (% of total) | 55.1 | % | 51.4 | % | 70.0 | % | 62.4 | % | 96.7 | % | 69.5 | % | ||||||||||||
New Leases square footage (% of total) | 44.9 | % | 48.6 | % | 30.0 | % | 37.6 | % | 3.3 | % | 30.5 | % | ||||||||||||
Weighted average per rentable square foot over the lease term: |
| |||||||||||||||||||||||
Base rent | $ | 4.46 | $ | 4.14 | $ | 4.19 | $ | 5.16 | $ | 3.39 | $ | 4.27 | ||||||||||||
Tenant improvements | (0.79 | ) | (0.32 | ) | (0.45 | ) | (0.51 | ) | (0.16 | ) | (0.45 | ) | ||||||||||||
Leasing commissions 5/ | (0.15 | ) | (0.14 | ) | (0.06 | ) | (0.12 | ) | (0.06 | ) | (0.11 | ) | ||||||||||||
Rent concessions | (0.13 | ) | (0.09 | ) | (0.02 | ) | (0.16 | ) | (0.01 | ) | (0.08 | ) | ||||||||||||
Effective rent | 3.39 | 3.59 | 3.66 | 4.37 | 3.16 | 3.63 | ||||||||||||||||||
Expense stop | (0.17 | ) | (0.15 | ) | (0.38 | ) | (0.31 | ) | (0.08 | ) | (0.22 | ) | ||||||||||||
Equivalent effective net rent | $ | 3.22 | $ | 3.44 | $ | 3.28 | $ | 4.06 | $ | 3.08 | $ | 3.41 | ||||||||||||
Weighted average term in years | 3.5 | 3.9 | 4.1 | 3.7 | 1.3 | 3.3 | ||||||||||||||||||
Capital Expenditures Related to Re-leased Space: |
| |||||||||||||||||||||||
Tenant Improvements: | ||||||||||||||||||||||||
Total dollars committed under signed leases | $ | 1,032,151 | $ | 796,212 | $ | 1,256,241 | $ | 917,527 | $ | 361,044 | $ | 872,635 | ||||||||||||
Rentable square feet | 300,496 | 532,917 | 498,819 | 359,342 | 599,048 | 458,124 | ||||||||||||||||||
Per rentable square foot | $ | 3.43 | $ | 1.49 | $ | 2.52 | $ | 2.55 | $ | 0.60 | $ | 1.90 | ||||||||||||
Leasing Commissions: | ||||||||||||||||||||||||
Total dollars committed under signed leases 5/ | $ | 191,615 | $ | 355,767 | $ | 185,669 | $ | 172,719 | $ | 63,473 | $ | 193,849 | ||||||||||||
Rentable square feet | 300,496 | 532,917 | 498,819 | 359,342 | 599,048 | 458,124 | ||||||||||||||||||
Per rentable square foot | $ | 0.64 | $ | 0.67 | $ | 0.37 | $ | 0.48 | $ | 0.11 | $ | 0.42 | ||||||||||||
Total: | �� | |||||||||||||||||||||||
Total dollars committed under signed leases | $ | 1,223,766 | $ | 1,151,979 | $ | 1,441,910 | $ | 1,090,246 | $ | 424,517 | $ | 1,066,484 | ||||||||||||
Rentable square feet | 300,496 | 532,917 | 498,819 | 359,342 | 599,048 | 458,124 | ||||||||||||||||||
Per rentable square foot | $ | 4.07 | $ | 2.16 | $ | 2.89 | $ | 3.03 | $ | 0.71 | $ | 2.33 | ||||||||||||
1/ | Includes 10K square feet of leases that start in 2008 or later |
2/ | Includes 12K square feet of leases that start in 2008 or later |
3/ | Includes 113K square feet of leases that start in 2008 or later |
4/ | Includes 4K square feet of leases that start in 2008 or later |
5/ | Excludes a full allocation of internal leasing costs |
Highwoods Properties, Inc. | Page 9 | 3/31/06 |
Leasing Statistics
Retail Portfolio
Three Months Ended | ||||||||||||||||||||||||
3/31/06 | 12/31/05 | 9/30/05 | 6/30/05 1/ | 3/31/05 | Average | |||||||||||||||||||
Net Effective Rents Related to Re-Leased Space: | ||||||||||||||||||||||||
Number of lease transactions (signed leases) | 12 | 9 | 7 | 10 | 4 | 8 | ||||||||||||||||||
Rentable square footage leased | 49,479 | 19,320 | 10,721 | 39,723 | 10,993 | 26,047 | ||||||||||||||||||
Square footage of Renewal Deals | 36,129 | 2,729 | 6,502 | 36,118 | 1,750 | 16,646 | ||||||||||||||||||
Renewed square footage (% of total) | 73.0 | % | 14.1 | % | 60.6 | % | 90.9 | % | 15.9 | % | 63.9 | % | ||||||||||||
New Leases square footage (% of total) | 27.0 | % | 85.9 | % | 39.4 | % | 9.1 | % | 84.1 | % | 36.1 | % | ||||||||||||
Weighted average per rentable square foot over the lease term: | ||||||||||||||||||||||||
Base rent | $ | 19.22 | $ | 23.03 | $ | 17.61 | $ | 21.49 | $ | 26.09 | $ | 21.49 | ||||||||||||
Tenant improvements | (0.41 | ) | (1.33 | ) | (1.21 | ) | (1.64 | ) | (2.65 | ) | (1.45 | ) | ||||||||||||
Leasing commissions 2/ | (0.28 | ) | (0.60 | ) | (1.11 | ) | (0.40 | ) | (0.88 | ) | (0.65 | ) | ||||||||||||
Rent concessions | (0.06 | ) | (0.35 | ) | (0.08 | ) | 0.00 | 0.00 | (0.10 | ) | ||||||||||||||
Effective rent | 18.47 | 20.75 | 15.21 | 19.45 | 22.56 | 19.29 | ||||||||||||||||||
Expense stop | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||
Equivalent effective net rent | $ | 18.47 | $ | 20.75 | $ | 15.21 | $ | 19.45 | $ | 22.56 | $ | 19.29 | ||||||||||||
Weighted average term in years | 11.1 | 6.1 | 4.3 | 8.7 | 9.3 | 7.9 | ||||||||||||||||||
Capital Expenditures Related to Re-leased Space: | ||||||||||||||||||||||||
Tenant Improvements: | ||||||||||||||||||||||||
Total dollars committed under signed leases | $ | 186,372 | $ | 251,252 | $ | 62,187 | $ | 695,152 | $ | 308,098 | $ | 300,612 | ||||||||||||
Rentable square feet | 49,479 | 19,320 | 10,721 | 39,723 | 10,993 | 26,047 | ||||||||||||||||||
Per rentable square foot | $ | 3.77 | $ | 13.00 | $ | 5.80 | $ | 17.50 | $ | 28.03 | $ | 11.54 | ||||||||||||
Leasing Commissions: | ||||||||||||||||||||||||
Total dollars committed under signed leases 2/ | $ | 42,804 | $ | 13,721 | $ | 12,026 | $ | 43,041 | $ | 3,778 | $ | 23,074 | ||||||||||||
Rentable square feet | 49,479 | 19,320 | 10,721 | 39,723 | 10,993 | 26,047 | ||||||||||||||||||
Per rentable square foot | $ | 0.87 | $ | 0.71 | $ | 1.12 | $ | 1.08 | $ | 0.34 | $ | 0.89 | ||||||||||||
Total: | ||||||||||||||||||||||||
Total dollars committed under signed leases | $ | 229,176 | $ | 264,973 | $ | 74,213 | $ | 738,193 | $ | 311,876 | $ | 323,686 | ||||||||||||
Rentable square feet | 49,479 | 19,320 | 10,721 | 39,723 | 10,993 | 26,047 | ||||||||||||||||||
Per rentable square foot | $ | 4.63 | $ | 13.71 | $ | 6.92 | $ | 18.58 | $ | 28.37 | $ | 12.43 | ||||||||||||
1/ | Includes 16K square feet of leases that start in 2008 or later |
2/ | Excludes a full allocation of internal leasing costs |
Highwoods Properties, Inc. | Page 10 | 3/31/06 |
For the Three Months ended March 31, 2006
Office Portfolio 1/ | |||||||||||||
Market | Rentable Square Feet Leased | Average Term | GAAP Rental Rate | TI’s Per SF | Lease Commissions Per SF 2/ | ||||||||
Raleigh | 386,248 | 4.6 | $ | 16.13 | $ | 9.04 | $ | 2.47 | |||||
Tampa | 120,635 | 6.0 | 22.30 | 10.54 | 3.82 | ||||||||
Nashville | 109,123 | 3.8 | 19.13 | 6.38 | 1.81 | ||||||||
Richmond | 102,065 | 3.2 | 18.90 | 2.99 | 1.57 | ||||||||
Kansas City | 63,089 | 3.5 | 20.68 | 4.51 | 3.05 | ||||||||
Atlanta | 48,838 | 4.0 | 16.88 | 12.12 | 2.82 | ||||||||
Piedmont Triad | 43,906 | 3.4 | 15.21 | 3.87 | 0.94 | ||||||||
Memphis | 38,993 | 3.4 | 17.53 | 7.98 | 1.43 | ||||||||
Columbia | 24,371 | 2.6 | 9.85 | 2.29 | 1.32 | ||||||||
Greenville | 5,930 | 5.2 | 14.68 | 14.03 | 3.79 | ||||||||
Orlando | 1,024 | 5.3 | 16.61 | 8.75 | 0.00 | ||||||||
944,222 | 4.3 | $ | 17.75 | $ | 7.70 | $ | 2.50 | ||||||
Industrial Portfolio | |||||||||||||
Market | Rentable Square Feet Leased | Average Term | GAAP Rental Rate | TI’s Per SF | Lease Commissions Per SF 2/ | ||||||||
Atlanta | 213,906 | 4.4 | $ | 4.19 | $ | 4.75 | $ | 0.85 | |||||
Piedmont Triad | 86,590 | 1.5 | 4.67 | 0.20 | 0.02 | ||||||||
300,496 | 3.5 | $ | 4.33 | $ | 3.43 | $ | 0.64 | ||||||
Retail Portfolio | |||||||||||||
Market | Rentable Square Feet Leased | Average Term | GAAP Rental Rate | TI’s Per SF | Lease Commissions Per SF | ||||||||
Kansas City | 49,479 | 11.1 | $ | 19.16 | $ | 3.77 | $ | 0.87 | |||||
49,479 | 11.1 | $ | 19.16 | $ | 3.77 | $ | 0.87 | ||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Total lease commisions per square foot excludes capitalized internal leasing costs. |
Highwoods Properties, Inc. | Page 11 | 3/31/06 |
Rental Rate Comparisons by Market
For the Three Months ended March 31, 2006
Office Portfolio 1/ | |||||||||||
Market | Rentable Square Feet Leased | Current Rent | Previous Rent | Percentage Rent | |||||||
Raleigh | 386,248 | $ | 16.13 | $ | 16.02 | 0.7 | % | ||||
Tampa | 120,635 | 22.30 | 19.49 | 14.4 | % | ||||||
Nashville | 109,123 | 19.13 | 19.03 | 0.5 | % | ||||||
Richmond | 102,065 | 18.90 | 17.71 | 6.7 | % | ||||||
Kansas City | 63,089 | 20.68 | 19.83 | 4.3 | % | ||||||
Atlanta | 48,838 | 16.88 | 19.54 | -13.6 | % | ||||||
Piedmont Triad | 43,906 | 15.21 | 14.39 | 5.7 | % | ||||||
Memphis | 38,993 | 17.53 | 19.56 | -10.4 | % | ||||||
Columbia | 24,371 | 9.85 | 11.35 | -13.2 | % | ||||||
Greenville | 5,930 | 14.68 | 17.56 | -16.4 | % | ||||||
Orlando | 1,024 | 16.61 | 16.61 | 0.0 | % | ||||||
GAAP Rent Growth | 944,222 | $ | 17.75 | $ | 17.37 | 2.2 | % | ||||
Cash Rent Growth | 944,222 | $ | 17.55 | $ | 18.73 | -6.3 | % | ||||
Industrial Portfolio | |||||||||||
Market | Rentable Square Feet Leased | Current Rent | Previous Rent | Percentage Rent | |||||||
Atlanta | 213,906 | $ | 4.19 | $ | 4.49 | -6.7 | % | ||||
Piedmont Triad | 86,590 | 4.67 | 4.50 | 3.7 | % | ||||||
GAAP Rent Growth | 300,496 | $ | 4.33 | $ | 4.47 | -3.2 | % | ||||
Cash Rent Growth | 300,496 | $ | 4.46 | $ | 5.00 | -10.8 | % | ||||
Retail Portfolio | |||||||||||
Market | Rentable Square Feet Leased | Current Rent | Previous Rent | Percentage Rent | |||||||
Kansas City | 49,479 | $ | 19.16 | $ | 17.46 | 9.7 | % | ||||
GAAP Rent Growth | 49,479 | $ | 19.16 | $ | 17.46 | 9.7 | % | ||||
Cash Rent Growth | 49,479 | $ | 19.68 | $ | 18.97 | 3.7 | % | ||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
Highwoods Properties, Inc. | Page 12 | 3/31/06 |
March 31, 2006
Dollars in thousands | ||||||||||||||
Year | Rentable Square Feet Expiring | Percent of Rentable Square Feet | Annualized Revenue 1/ | Average Rental Rate | Percent of Annualized Revenue 1/ | |||||||||
Office: 2/ | ||||||||||||||
2006 /3 | 1,604,678 | 9.4 | % | $ | 28,934 | $ | 18.03 | 9.4 | % | |||||
2007 | 1,540,883 | 9.0 | % | 28,137 | 18.26 | 9.1 | % | |||||||
2008 | 2,738,894 | 15.9 | % | 47,610 | 17.38 | 15.4 | % | |||||||
2009 | 2,552,031 | 14.9 | % | 47,630 | 18.66 | 15.4 | % | |||||||
2010 | 2,247,969 | 13.1 | % | 44,581 | 19.83 | 14.4 | % | |||||||
2011 | 2,124,661 | 12.4 | % | 37,461 | 17.63 | 12.1 | % | |||||||
2012 | 1,209,745 | 7.1 | % | 23,259 | 19.23 | 7.5 | % | |||||||
2013 | 552,102 | 3.2 | % | 9,271 | 16.79 | 3.0 | % | |||||||
2014 | 451,009 | 2.6 | % | 9,694 | 21.49 | 3.1 | % | |||||||
2015 | 602,137 | 3.5 | % | 12,017 | 19.96 | 3.9 | % | |||||||
2016 and thereafter | 1,517,739 | 8.9 | % | 20,562 | 13.55 | 6.7 | % | |||||||
17,141,848 | 100.0 | % | $ | 309,156 | $ | 18.04 | 100.0 | % | ||||||
Industrial: | ||||||||||||||
2006 /4 | 1,126,442 | 19.0 | % | $ | 4,668 | $ | 4.14 | 15.6 | % | |||||
2007 | 920,517 | 15.6 | % | 5,631 | 6.12 | 18.8 | % | |||||||
2008 | 1,017,104 | 17.2 | % | 5,003 | 4.92 | 16.7 | % | |||||||
2009 | 683,795 | 11.6 | % | 4,275 | 6.25 | 14.3 | % | |||||||
2010 | 529,339 | 9.0 | % | 2,659 | 5.02 | 8.9 | % | |||||||
2011 | 418,352 | 7.1 | % | 1,610 | 3.85 | 5.4 | % | |||||||
2012 | 203,897 | 3.5 | % | 961 | 4.71 | 3.2 | % | |||||||
2013 | 146,784 | 2.5 | % | 750 | 5.11 | 2.5 | % | |||||||
2014 | 206,731 | 3.5 | % | 1,093 | 5.29 | 3.6 | % | |||||||
2015 | 137,882 | 2.3 | % | 695 | 5.04 | 2.3 | % | |||||||
2016 and thereafter | 511,330 | 8.7 | % | 2,618 | 5.12 | 8.7 | % | |||||||
5,902,173 | 100.0 | % | $ | 29,963 | $ | 5.08 | 100.0 | % | ||||||
1/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
2/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
3/ | Includes 157,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue |
4/ | Includes 288,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue |
Note: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.
Highwoods Properties, Inc. | Page 13 | 3/31/06 |
Lease Expirations
March 31, 2006
(Continued)
Dollars in thousands | ||||||||||||||
Year | Rentable Square Feet Expiring | Percent of Rentable Square Feet | Annualized Revenue 1/ | Average Rental Rate | Percent of Annualized Revenue 1/ | |||||||||
Retail: | ||||||||||||||
2006 2/ | 61,096 | 4.5 | % | $ | 1,532 | $ | 25.08 | 4.0 | % | |||||
2007 | 78,381 | 5.8 | % | 2,341 | 29.87 | 6.2 | % | |||||||
2008 | 130,164 | 9.6 | % | 3,691 | 28.36 | 9.7 | % | |||||||
2009 | 179,434 | 13.2 | % | 4,657 | 25.95 | 12.3 | % | |||||||
2010 | 104,180 | 7.7 | % | 3,569 | 34.26 | 9.4 | % | |||||||
2011 | 62,294 | 4.6 | % | 1,917 | 30.77 | 5.1 | % | |||||||
2012 | 135,597 | 10.0 | % | 4,017 | 29.62 | 10.6 | % | |||||||
2013 | 105,564 | 7.8 | % | 2,607 | 24.70 | 6.9 | % | |||||||
2014 | 80,159 | 5.9 | % | 1,464 | 18.26 | 3.9 | % | |||||||
2015 | 134,858 | 9.9 | % | 4,322 | 32.05 | 11.4 | % | |||||||
2016 and thereafter | 283,910 | 21.0 | % | 7,814 | 27.52 | 20.5 | % | |||||||
1,355,637 | 100.0 | % | $ | 37,931 | $ | 27.98 | 100.0 | % | ||||||
Total: | ||||||||||||||
2006 3/4/ | 2,792,216 | 11.4 | % | $ | 35,134 | $ | 12.58 | 9.3 | % | |||||
2007 | 2,539,781 | 10.4 | % | 36,109 | 14.22 | 9.6 | % | |||||||
2008 | 3,886,162 | 16.0 | % | 56,304 | 14.49 | 14.9 | % | |||||||
2009 | 3,415,260 | 14.0 | % | 56,562 | 16.56 | 15.1 | % | |||||||
2010 | 2,881,488 | 11.8 | % | 50,809 | 17.63 | 13.5 | % | |||||||
2011 | 2,605,307 | 10.7 | % | 40,988 | 15.73 | 10.9 | % | |||||||
2012 | 1,549,239 | 6.3 | % | 28,237 | 18.23 | 7.5 | % | |||||||
2013 | 804,450 | 3.3 | % | 12,628 | 15.70 | 3.3 | % | |||||||
2014 | 737,899 | 3.0 | % | 12,251 | 16.60 | 3.2 | % | |||||||
2015 | 874,877 | 3.6 | % | 17,034 | 19.47 | 4.5 | % | |||||||
2016 and thereafter | 2,312,979 | 9.5 | % | 30,994 | 13.40 | 8.2 | % | |||||||
24,399,658 | 100.0 | % | $ | 377,050 | $ | 15.45 | 100.0 | % | ||||||
1/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
2/ | Includes 4,000 square feet of leases that are on a month to month basis or 0.0% of total annualized revenue |
3/ | Includes 449,000 square feet of leases that are on a month to month basis or 0.9% of total annualized revenue |
4/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
Note: 2006 and beyond expirations that have been renewed are reflected above based on the renewal expiration date.
Highwoods Properties, Inc. | Page 14 | 3/31/06 |
Office Lease Expirations by Market by Quarter 1/
Dollars in thousands | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
6/30/06 2/ | 09/30/06 | 12/31/06 | 03/31/07 | Total | ||||||||||||||||||||
Atlanta | RSF | 66,888 | 151,866 | 18,345 | 32,635 | 269,734 | ||||||||||||||||||
% of Total Office RSF | 0.4 | % | 0.9 | % | 0.1 | % | 0.2 | % | 1.6 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 830 | $ | 2,578 | $ | 371 | $ | 448 | $ | 4,227 | |||||||||||||
% of Total Office Annl Rev | 0.3 | % | 0.8 | % | 0.1 | % | 0.1 | % | 1.4 | % | ||||||||||||||
Columbia | RSF | 0 | 831 | 2,831 | 0 | 3,662 | ||||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | — | $ | 13 | $ | 42 | $ | — | $ | 55 | |||||||||||||
% of Total Office Annl Rev | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Greenville | RSF | 118,521 | 10,699 | 28,545 | 0 | 157,765 | ||||||||||||||||||
% of Total Office RSF | 0.7 | % | 0.1 | % | 0.2 | % | 0.0 | % | 0.9 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 2,227 | $ | 221 | $ | 535 | $ | — | $ | 2,983 | |||||||||||||
% of Total Office Annl Rev | 0.7 | % | 0.1 | % | 0.2 | % | 0.0 | % | 1.0 | % | ||||||||||||||
Kansas City | RSF | 30,786 | 22,735 | 40,701 | 29,913 | 124,135 | ||||||||||||||||||
% of Total Office RSF | 0.2 | % | 0.1 | % | 0.2 | % | 0.2 | % | 0.7 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 615 | $ | 502 | $ | 869 | $ | 625 | $ | 2,611 | |||||||||||||
% of Total Office Annl Rev | 0.2 | % | 0.2 | % | 0.3 | % | 0.2 | % | 0.8 | % | ||||||||||||||
Memphis | RSF | 30,695 | 16,128 | 5,590 | 56,495 | 108,908 | ||||||||||||||||||
% of Total Office RSF | 0.2 | % | 0.1 | % | 0.0 | % | 0.3 | % | 0.6 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 561 | $ | 323 | $ | 112 | $ | 1,105 | $ | 2,101 | |||||||||||||
% of Total Office Annl Rev | 0.2 | % | 0.1 | % | 0.0 | % | 0.4 | % | 0.7 | % | ||||||||||||||
Nashville | RSF | 77,189 | 53,716 | 176,394 | 33,720 | 341,019 | ||||||||||||||||||
% of Total Office RSF | 0.5 | % | 0.3 | % | 1.0 | % | 0.2 | % | 2.0 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 1,394 | $ | 1,164 | $ | 3,869 | $ | 679 | $ | 7,106 | |||||||||||||
% of Total Office Annl Rev | 0.5 | % | 0.4 | % | 1.3 | % | 0.2 | % | 2.3 | % | ||||||||||||||
Orlando | RSF | 0 | 0 | 6,465 | 2,389 | 8,854 | ||||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | — | $ | — | $ | 183 | $ | 62 | $ | 245 | |||||||||||||
% of Total Office Annl Rev | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.1 | % | ||||||||||||||
Piedmont Triad | RSF | 77,152 | 63,278 | 35,187 | 224,302 | 399,919 | ||||||||||||||||||
% of Total Office RSF | 0.5 | % | 0.4 | % | 0.2 | % | 1.3 | % | 2.3 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 1,265 | $ | 1,065 | $ | 571 | $ | 2,708 | $ | 5,609 | |||||||||||||
% of Total Office Annl Rev | 0.4 | % | 0.3 | % | 0.2 | % | 0.9 | % | 1.8 | % | ||||||||||||||
Raleigh | RSF | 88,365 | 244,776 | 31,362 | 134,905 | 499,408 | ||||||||||||||||||
% of Total Office RSF | 0.5 | % | 1.4 | % | 0.2 | % | 0.8 | % | 2.9 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 1,775 | $ | 3,205 | $ | 561 | $ | 2,727 | $ | 8,268 | |||||||||||||
% of Total Office Annl Rev | 0.6 | % | 1.0 | % | 0.2 | % | 0.9 | % | 2.7 | % | ||||||||||||||
Richmond | RSF | 79,821 | 38,286 | 49,762 | 47,077 | 214,946 | ||||||||||||||||||
% of Total Office RSF | 0.5 | % | 0.2 | % | 0.3 | % | 0.3 | % | 1.3 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 1,470 | $ | 740 | $ | 1,076 | $ | 961 | $ | 4,247 | |||||||||||||
% of Total Office Annl Rev | 0.5 | % | 0.2 | % | 0.3 | % | 0.3 | % | 1.4 | % | ||||||||||||||
Tampa | RSF | 21,405 | 4,046 | 9,929 | 23,922 | 59,302 | ||||||||||||||||||
% of Total Office RSF | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.3 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 485 | $ | 104 | $ | 206 | $ | 527 | $ | 1,322 | |||||||||||||
% of Total Office Annl Rev | 0.2 | % | 0.0 | % | 0.1 | % | 0.2 | % | 0.4 | % | ||||||||||||||
Other | RSF | 2,384 | 0 | 0 | 0 | 2,384 | ||||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | |||||||||||||
% of Total Office Annl Rev | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Total | RSF | 593,206 | 606,361 | 405,111 | 585,358 | 2,190,036 | ||||||||||||||||||
% of Total Office RSF | 3.4 | % | 3.5 | % | 2.4 | % | 3.4 | % | 12.7 | % | ||||||||||||||
Annualized Revenue | 3/ | $ | 10,627 | $ | 9,915 | $ | 8,395 | $ | 9,842 | $ | 38,779 | |||||||||||||
% of Total Office Annl Rev | 3.4 | % | 3.2 | % | 2.7 | % | 3.2 | % | 12.5 | % |
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Includes 157,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue |
3/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 15 | 3/31/06 |
Industrial Lease Expirations by Market by Quarter
Dollars in thousands | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
6/30/06 1/ | 09/30/06 | 12/31/06 | 03/31/07 | Total | ||||||||||||||||||||
Atlanta | RSF | 116,853 | 82,920 | 69,763 | 247,028 | 516,564 | ||||||||||||||||||
% of Total Industrial RSF | 2.0 | % | 1.4 | % | 1.2 | % | 4.2 | % | 8.8 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | 425 | $ | 394 | $ | 489 | $ | 1,362 | $ | 2,670 | |||||||||||||
% of Total Industrial Annl Rev | 1.5 | % | 1.3 | % | 1.6 | % | 4.5 | % | 9.0 | % | ||||||||||||||
Greenville | RSF | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
% of Total Industrial RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
% of Total Industrial Annl Rev | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Kansas City | RSF | 2,018 | 0 | 0 | 0 | 2,018 | ||||||||||||||||||
% of Total Industrial RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | 17 | $ | — | $ | — | $ | — | $ | 17 | |||||||||||||
% of Total Industrial Annl Rev | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||||||
Piedmont Triad | RSF | 532,416 | 264,608 | 52,752 | 184,319 | 1,034,095 | ||||||||||||||||||
% of Total Industrial RSF | 9.0 | % | 4.5 | % | 0.9 | % | 3.1 | % | 17.5 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | 1,669 | $ | 1,291 | $ | 332 | $ | 1,008 | $ | 4,300 | |||||||||||||
% of Total Industrial Annl Rev | 5.6 | % | 4.3 | % | 1.1 | % | 3.4 | % | 14.4 | % | ||||||||||||||
Raleigh | RSF | 0 | 5,112 | 0 | 3,550 | 8,662 | ||||||||||||||||||
% of Total Industrial RSF | 0.0 | % | 0.1 | % | 0.0 | % | 0.1 | % | 0.1 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | — | $ | 53 | $ | — | $ | 36 | $ | 89 | |||||||||||||
% of Total Industrial Annl Rev | 0.0 | % | 0.2 | % | 0.0 | % | 0.1 | % | 0.3 | % | ||||||||||||||
Total | RSF | 651,287 | 352,640 | 122,515 | 434,897 | 1,561,339 | ||||||||||||||||||
% of Total Industrial RSF | 11.0 | % | 6.0 | % | 2.1 | % | 7.4 | % | 26.5 | % | ||||||||||||||
Annualized Revenue | 2/ | $ | 2,111 | $ | 1,738 | $ | 821 | $ | 2,406 | $ | 7,076 | |||||||||||||
% of Total Industrial Annl Rev | 7.1 | % | 5.8 | % | 2.7 | % | 8.0 | % | 23.7 | % |
1/ | Includes 288,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue |
2/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 16 | 3/31/06 |
Office Lease Expirations by Market by Year 1/
Dollars in thousands | ||||||||||||||||||||||
2006 2/ | 2007 | 2008 | 2009 | Thereafter | ||||||||||||||||||
Atlanta | RSF | 237,099 | 111,342 | 473,962 | 325,491 | 1,025,915 | ||||||||||||||||
% of Total Office RSF | 1.4 | % | 0.6 | % | 2.8 | % | 1.9 | % | 6.0 | % | ||||||||||||
Annualized Revenue 3/ | $ | 3,779 | $ | 1,891 | $ | 7,913 | $ | 5,609 | $ | 20,949 | ||||||||||||
% of Total Office Annl Rev | 1.2 | % | 0.6 | % | 2.6 | % | 1.8 | % | 6.8 | % | ||||||||||||
Columbia | RSF | 3,662 | 3,258 | 48,880 | 8,409 | 40,054 | ||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.0 | % | 0.3 | % | 0.0 | % | 0.2 | % | ||||||||||||
Annualized Revenue 3/ | $ | 54 | $ | 56 | $ | 857 | $ | 86 | $ | 473 | ||||||||||||
% of Total Office Annl Rev | 0.0 | % | 0.0 | % | 0.3 | % | 0.0 | % | 0.2 | % | ||||||||||||
Greenville | RSF | 157,765 | 10,050 | 99,410 | 49,133 | 474,142 | ||||||||||||||||
% of Total Office RSF | 0.9 | % | 0.1 | % | 0.6 | % | 0.3 | % | 2.8 | % | ||||||||||||
Annualized Revenue 3/ | $ | 2,983 | $ | 193 | $ | 1,824 | $ | 713 | $ | 7,474 | ||||||||||||
% of Total Office Annl Rev | 1.0 | % | 0.1 | % | 0.6 | % | 0.2 | % | 2.4 | % | ||||||||||||
Kansas City | RSF | 94,222 | 97,177 | 75,762 | 88,211 | 376,957 | ||||||||||||||||
% of Total Office RSF | 0.5 | % | 0.6 | % | 0.4 | % | 0.5 | % | 2.2 | % | ||||||||||||
Annualized Revenue 3/ | $ | 1,985 | $ | 2,043 | $ | 1,565 | $ | 1,786 | $ | 9,470 | ||||||||||||
% of Total Office Annl Rev | 0.6 | % | 0.7 | % | 0.5 | % | 0.6 | % | 3.1 | % | ||||||||||||
Memphis | RSF | 52,413 | 115,171 | 184,695 | 213,522 | 511,258 | ||||||||||||||||
% of Total Office RSF | 0.3 | % | 0.7 | % | 1.1 | % | 1.2 | % | 3.0 | % | ||||||||||||
Annualized Revenue 3/ | $ | 996 | $ | 2,222 | $ | 3,873 | $ | 4,104 | $ | 9,016 | ||||||||||||
% of Total Office Annl Rev | 0.3 | % | 0.7 | % | 1.3 | % | 1.3 | % | 2.9 | % | ||||||||||||
Nashville | RSF | 307,299 | 199,349 | 203,376 | 683,034 | 1,212,037 | ||||||||||||||||
% of Total Office RSF | 1.8 | % | 1.2 | % | 1.2 | % | 4.0 | % | 7.1 | % | ||||||||||||
Annualized Revenue 3/ | $ | 6,426 | $ | 3,897 | $ | 4,014 | $ | 12,705 | $ | 23,099 | ||||||||||||
% of Total Office Annl Rev | 2.1 | % | 1.3 | % | 1.3 | % | 4.1 | % | 7.5 | % | ||||||||||||
Orlando | RSF | 6,465 | 21,694 | 6,133 | 6,788 | 175,828 | ||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 1.0 | % | ||||||||||||
Annualized Revenue 3/ | $ | 183 | $ | 446 | $ | 153 | $ | 157 | $ | 3,625 | ||||||||||||
% of Total Office Annl Rev | 0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | 1.2 | % | ||||||||||||
Piedmont Triad | RSF | 175,617 | 307,685 | 560,204 | 101,461 | 803,880 | ||||||||||||||||
% of Total Office RSF | 1.0 | % | 1.8 | % | 3.3 | % | 0.6 | % | 4.7 | % | ||||||||||||
Annualized Revenue 3/ | $ | 2,901 | $ | 4,023 | $ | 7,468 | $ | 1,512 | $ | 11,859 | ||||||||||||
% of Total Office Annl Rev | 0.9 | % | 1.3 | % | 2.4 | % | 0.5 | % | 3.8 | % | ||||||||||||
Raleigh | RSF | 364,503 | 377,392 | 521,446 | 452,871 | 1,612,292 | ||||||||||||||||
% of Total Office RSF | 2.1 | % | 2.2 | % | 3.0 | % | 2.6 | % | 9.4 | % | ||||||||||||
Annualized Revenue 3/ | $ | 5,541 | $ | 7,371 | $ | 8,864 | $ | 8,560 | $ | 26,328 | ||||||||||||
% of Total Office Annl Rev | 1.8 | % | 2.4 | % | 2.9 | % | 2.8 | % | 8.5 | % | ||||||||||||
Richmond | RSF | 167,869 | 167,053 | 297,911 | 180,765 | 969,733 | ||||||||||||||||
% of Total Office RSF | 1.0 | % | 1.0 | % | 1.7 | % | 1.1 | % | 5.7 | % | ||||||||||||
Annualized Revenue 3/ | $ | 3,286 | $ | 3,089 | $ | 5,733 | $ | 3,318 | $ | 15,701 | ||||||||||||
% of Total Office Annl Rev | 1.1 | % | 1.0 | % | 1.9 | % | 1.1 | % | 5.1 | % | ||||||||||||
Tampa | RSF | 35,380 | 116,875 | 247,666 | 436,180 | 1,482,785 | ||||||||||||||||
% of Total Office RSF | 0.2 | % | 0.7 | % | 1.4 | % | 2.5 | % | 8.7 | % | ||||||||||||
Annualized Revenue 3/ | $ | 794 | $ | 2,549 | $ | 4,838 | $ | 8,967 | $ | 28,405 | ||||||||||||
% of Total Office Annl Rev | 0.3 | % | 0.8 | % | 1.6 | % | 2.9 | % | 9.2 | % | ||||||||||||
Other | RSF | 2,384 | 13,837 | 19,449 | 6,166 | 20,481 | ||||||||||||||||
% of Total Office RSF | 0.0 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.1 | % | ||||||||||||
Annualized Revenue 3/ | $ | 5 | $ | 357 | $ | 510 | $ | 114 | $ | 450 | ||||||||||||
% of Total Office Annl Rev | 0.0 | % | 0.1 | % | 0.2 | % | 0.0 | % | 0.1 | % | ||||||||||||
Total | RSF | 1,604,678 | 1,540,883 | 2,738,894 | 2,552,031 | 8,705,362 | ||||||||||||||||
% of Total Office RSF | 9.4 | % | 9.0 | % | 16.0 | % | 14.9 | % | 50.8 | % | ||||||||||||
Annualized Revenue 3/ | $ | 28,933 | $ | 28,137 | $ | 47,612 | $ | 47,631 | $ | 156,849 | ||||||||||||
% of Total Office Annl Rev | 9.4 | % | 9.1 | % | 15.4 | % | 15.4 | % | 50.7 | % |
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Includes 157,000 square feet of leases that are on a month to month basis or 0.7% of total annualized revenue |
3/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 17 | 3/31/06 |
Industrial Lease Expirations by Market by Year
Dollars in thousands | ||||||||||||||||||||||
2006 1/ | 2007 | 2008 | 2009 | Thereafter | ||||||||||||||||||
Atlanta | RSF | 269,536 | 377,856 | 551,736 | 275,316 | 1,441,499 | ||||||||||||||||
% of Total Industrial RSF | 4.6 | % | 6.4 | % | 9.3 | % | 4.7 | % | 24.4 | % | ||||||||||||
Annualized Revenue 2/ | $ | 1,308 | $ | 1,997 | $ | 2,776 | $ | 1,714 | $ | 7,029 | ||||||||||||
% of Total Industrial Annl Rev | 4.4 | % | 6.7 | % | 9.3 | % | 5.7 | % | 23.5 | % | ||||||||||||
Greenville | RSF | 0 | 16,081 | 5,350 | 0 | 0 | ||||||||||||||||
% of Total Industrial RSF | 0.0 | % | 0.3 | % | 0.1 | % | 0.0 | % | 0.0 | % | ||||||||||||
Annualized Revenue 2/ | $ | — | $ | 212 | $ | 59 | $ | — | $ | — | ||||||||||||
% of Total Industrial Annl Rev | 0.0 | % | 0.7 | % | 0.2 | % | 0.0 | % | 0.0 | % | ||||||||||||
Kansas City | RSF | 2,018 | 0 | 0 | 1,756 | 0 | ||||||||||||||||
% of Total Industrial RSF | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
Annualized Revenue 2/ | $ | 17 | $ | — | $ | — | $ | 20 | $ | — | ||||||||||||
% of Total Industrial Annl Rev | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | ||||||||||||
Piedmont Triad | RSF | 849,776 | 523,030 | 444,830 | 378,797 | 700,880 | ||||||||||||||||
% of Total Industrial RSF | 14.4 | % | 8.9 | % | 7.5 | % | 6.4 | % | 11.9 | % | ||||||||||||
Annualized Revenue 2/ | $ | 3,291 | $ | 3,386 | $ | 2,006 | $ | 2,311 | $ | 3,255 | ||||||||||||
% of Total Industrial Annl Rev | 11.0 | % | 11.3 | % | 6.7 | % | 7.7 | % | 10.9 | % | ||||||||||||
Raleigh | RSF | 5,112 | 3,550 | 15,188 | 27,926 | 11,936 | ||||||||||||||||
% of Total Industrial RSF | 0.1 | % | 0.1 | % | 0.3 | % | 0.5 | % | 0.2 | % | ||||||||||||
Annualized Revenue 2/ | $ | 53 | $ | 36 | $ | 162 | $ | 230 | $ | 102 | ||||||||||||
% of Total Industrial Annl Rev | 0.2 | % | 0.1 | % | 0.5 | % | 0.8 | % | �� | 0.3 | % | |||||||||||
Total | RSF | 1,126,442 | 920,517 | 1,017,104 | 683,795 | 2,154,315 | ||||||||||||||||
% of Total Industrial RSF | 19.1 | % | 15.6 | % | 17.2 | % | 11.6 | % | 36.5 | % | ||||||||||||
Annualized Revenue 2/ | $ | 4,669 | $ | 5,631 | $ | 5,003 | $ | 4,275 | $ | 10,386 | ||||||||||||
% of Total Industrial Annl Rev | 15.6 | % | 18.8 | % | 16.7 | % | 14.3 | % | 34.7 | % |
1/ | Includes 288,000 square feet of leases that are on a month to month basis or 0.2% of total annualized revenue |
2/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 18 | 3/31/06 |
March 31, 2006
Dollars in thousands | |||||||||
Top 20 Customers | |||||||||
Customer | RSF | Annualized Revenue 2/ | Percent of Annualized Revenue 2/ | Average Remaining Lease Term in Years | |||||
Federal Government | 1,453,186 | $ | 26,025 | 6.90% | 8.9 | ||||
AT&T | 537,529 | 10,409 | 2.76% | 2.9 | |||||
Price Waterhouse Coopers | 332,931 | 8,408 | 2.23% | 4.1 | |||||
State Of Georgia | 356,175 | 6,835 | 1.81% | 3.6 | |||||
T-Mobile USA | 205,855 | 4,859 | 1.29% | 7.9 | |||||
US Airways | 293,007 | 4,032 | 1.07% | 1.5 | |||||
Volvo | 278,940 | 3,799 | 1.01% | 3.3 | |||||
Lockton Companies | 145,651 | 3,736 | 0.99% | 8.9 | |||||
Northern Telecom | 246,000 | 3,651 | 0.97% | 1.9 | |||||
SCI Services, Inc. | 162,784 | 3,455 | 0.92% | 11.3 | |||||
BB&T | 197,893 | 2,875 | 0.76% | 6.2 | |||||
Metropolitan Life Insurance | 174,944 | 2,731 | 0.72% | 6.7 | |||||
MCI | 127,268 | 2,477 | 0.66% | 1.1 | |||||
Lifepoint Corporate Services | 120,112 | 2,270 | 0.60% | 5.3 | |||||
Jacobs Engineering Group, Inc. | 164,417 | 2,269 | 0.60% | 10.2 | |||||
Vanderbilt University | 115,693 | 2,225 | 0.59% | 9.5 | |||||
Icon Clinical Research, Inc. | 99,163 | 2,185 | 0.58% | 6.4 | |||||
Wachovia | 98,531 | 2,129 | 0.56% | 3.4 | |||||
The Martin Agency | 118,518 | 2,038 | 0.54% | 11.0 | |||||
CIGNA Healthcare of NC, Inc. | 180,000 | 2,006 | 0.53% | 0.3 | |||||
5,408,597 | $ | 98,414 | 26.09% | 6.1 | |||||
By Industry | |||||||||
Category | Percent of Annualized Revenue 2/ | ||||||||
Professional, Scientific, and Technical Services | 20.8% | ||||||||
Insurance | 9.8% | ||||||||
Government/Public Administration | 9.5% | ||||||||
Finance/Banking | 8.9% | ||||||||
Retail Trade | 7.7% | ||||||||
Telecommunication | 7.5% | ||||||||
Manufacturing | 6.9% | ||||||||
Health Care and Social Assistance | 6.0% | ||||||||
Wholesale Trade | 5.8% | ||||||||
Real Estate Rental and Leasing | 3.8% | ||||||||
Transportation and Warehousing | 3.3% | ||||||||
Accommodation and Food Services | 2.7% | ||||||||
Administrative and Support Services | 2.6% | ||||||||
Other Services (except Public Administration) | 2.3% | ||||||||
Information | 1.5% | ||||||||
Educational Services | 0.9% | ||||||||
100.0% | |||||||||
1/ | Excludes properties recorded on our Balance Sheet that (1) were sold but accounted for as Financings or Profit Sharing arrangements under FAS 66 or (2) related to joint ventures properties that are consolidated under GAAP |
2/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 19 | 3/31/06 |
Dollars in thousands | ||||||||||
Name | Market | Type | Date Acquired | Square Footage | Total Cost | |||||
First quarter 2006: | ||||||||||
None |
Highwoods Properties, Inc. | Page 20 | 3/31/06 |
Dollars in thousands | ||||||||||||||
Name | Market | Type 1/ | Date Sold | Square Footage | Occupancy | Gross Sales Price | ||||||||
First quarter 2006: | ||||||||||||||
Office properties | Atlanta/Columbia/Tampa | O | 01/09/06 | 1,596,000 | 74.9 | % | ||||||||
Industrial properties | Atlanta | I | 01/09/06 | 271,000 | 72.8 | % | ||||||||
1,867,000 | 74.6 | % | $ | 141,000 | ||||||||||
Concourse | Raleigh | O | 03/30/06 | 132,000 | 77.2 | % | 12,900 | |||||||
First quarter totals | 1,999,000 | 74.8 | % | $ | 153,900 | |||||||||
1/ | The letters “O” and “I” represent Office and Industrial, respectively. |
Highwoods Properties, Inc. | Page 21 | 3/31/06 |
Dollars in thousands | |||||||||||||||||||
Property | Market | Type 1/ | Rentable Square Feet | Anticipated Total Investment | Investment @ 03/31/06 | Pre- Leasing | Estimated Completion Date | Estimated Stabilization Date | |||||||||||
In - Process | |||||||||||||||||||
Office: | |||||||||||||||||||
Cordoba /2 | Kansas City | O | 24,000 | $ | 3,546 | $ | 1,295 | 0 | % | 4Q 06 | 1Q 08 | ||||||||
ThyssenKrupp | Memphis | O | 78,000 | 8,800 | 2,533 | 100 | % | 1Q 07 | 1Q 07 | ||||||||||
Cool Springs III | Nashville | O | 153,000 | 21,640 | 9,609 | 8 | % | 2Q 06 | 4Q 07 | ||||||||||
Healthways (Cool Springs) | Nashville | O | 255,000 | 58,300 | 3,500 | 100 | % | 2Q 08 | 2Q 08 | ||||||||||
Berkshire | Orlando | O | 99,000 | 13,197 | 1,669 | 0 | % | 1Q 07 | 2Q 08 | ||||||||||
3330 Healy Rd 2/ | Piedmont Triad | O | 40,000 | 3,600 | 2,808 | 0 | % | 4Q 06 | 2Q 07 | ||||||||||
Glenlake Four | Raleigh | O | 158,000 | 27,150 | 12,249 | 46 | % | 3Q 06 | 1Q 08 | ||||||||||
Stony Point IV | Richmond | O | 104,000 | 13,125 | 1,561 | 51 | % | 4Q 06 | 4Q 07 | ||||||||||
Met Life (Highwoods Preserve) | Tampa | O | 115,000 | 21,245 | 1,166 | 100 | % | 1Q 07 | 4Q 08 | ||||||||||
Total or Weighted Average | 1,026,000 | $ | 170,603 | $ | 36,390 | 57 | % | ||||||||||||
Industrial: | |||||||||||||||||||
Enterprise II | Piedmont Triad | I | 418,000 | $ | 14,400 | $ | 3,184 | 44 | % | 3Q 06 | 4Q 08 | ||||||||
Total or Weighted Average | 418,000 | $ | 14,400 | $ | 3,184 | 44 | % | ||||||||||||
Retail: | |||||||||||||||||||
Cordoba /2 | Kansas City | R | 23,000 | $ | 10,328 | $ | 3,660 | 100 | % | 4Q 06 | 4Q 06 | ||||||||
Total or Weighted Average | 23,000 | $ | 10,328 | $ | 3,660 | 100 | % | ||||||||||||
Total or Weighted Average | 1,467,000 | $ | 195,331 | $ | 43,234 | 54 | % | ||||||||||||
Completed Not Stabilized 3/ | |||||||||||||||||||
Retail: | |||||||||||||||||||
Griffith Road/Boutique Shops | Piedmont Triad | R | 9,600 | $ | 2,634 | $ | 2,480 | 88 | % | 2Q05 | 2Q06 | ||||||||
Total or Weighted Average | 9,600 | $ | 2,634 | $ | 2,480 | 88 | % | ||||||||||||
Grand Total or Weighted Average | 1,476,600 | $ | 197,965 | $ | 45,714 | 54 | % | ||||||||||||
1/ | The letters “O”, “I”, and “R” represent Office, Industrial, and Retail, respectively. |
2/ | Redevelopment property |
3/ | Completed Not Stabilized properties are recorded in the Consolidated Balance Sheet in the Land and Building accounts, not Development-in-process. |
Highwoods Properties, Inc. | Page 22 | 3/31/06 |
March 31, 2006
Dollars in thousands
| |||||
Market | Usable Acres | Total Estimated Market Value | |||
On Balance Sheet: | |||||
Research Triangle | 260 | $ | 55,347 | ||
Atlanta | 226 | 41,911 | |||
Piedmont Triad | 96 | 20,713 | |||
Richmond | 57 | 14,234 | |||
Kansas City 1/ | 44 | 24,090 | |||
Baltimore | 44 | 12,566 | |||
Charlotte | 41 | 10,000 | |||
Nashville | 39 | 12,486 | |||
Tampa | 31 | 14,879 | |||
Orlando | 25 | 14,270 | |||
Memphis | 21 | 5,100 | |||
Greenville | 12 | 1,800 | |||
Total 2/ | 896 | $ | 227,396 | ||
1/ | Includes 27 acres of residential land |
2/ | Developable square footage on core land holdings, which constitute 485 of the total 896 acres, is approximately 5.3 million of office space and 1.8 million of industrial space |
Highwoods Properties, Inc. | Page 23 | 3/31/06 |
Joint Ventures Portfolio Summary
As of March 31, 2006 |
| |||||||||||||||||||
Summary by Location: | ||||||||||||||||||||
Percentage of Annualized Revenue - Highwoods’ Share Only 3/ | ||||||||||||||||||||
Market | Rentable Square Feet 1/ | Occupancy 2/ | Office | Industrial | Retail | Multi-Family | Total | |||||||||||||
Des Moines | 2,315,000 | 93.1 | % | 30.2 | % | 4.0 | % | 1.0 | % | 3.1 | % | 38.3 | % | |||||||
Orlando | 1,685,000 | 94.9 | % | 26.0 | % | — | — | — | 26.0 | % | ||||||||||
Atlanta | 835,000 | 94.9 | % | 11.2 | % | — | — | — | 11.2 | % | ||||||||||
Kansas City | 713,000 | 81.8 | % | 8.6 | % | — | — | — | 8.6 | % | ||||||||||
Richmond | 413,000 | 100.0 | % | 5.0 | % | — | — | — | 5.0 | % | ||||||||||
Piedmont Triad | 364,000 | 100.0 | % | 3.9 | % | — | — | — | 3.9 | % | ||||||||||
Raleigh | 455,000 | 99.6 | % | 3.7 | % | — | — | — | 3.7 | % | ||||||||||
Tampa | 205,000 | 100.0 | % | 2.0 | % | — | — | — | 2.0 | % | ||||||||||
Charlotte | 148,000 | 100.0 | % | 0.8 | % | — | — | — | 0.8 | % | ||||||||||
Other | 110,000 | 100.0 | % | 0.5 | % | — | — | — | 0.5 | % | ||||||||||
Total | 7,243,000 | 94.2 | % | 91.9 | % | 4.0 | % | 1.0 | % | 3.1 | % | 100.0 | % | |||||||
1/ | Excludes Des Moines’ apartment units |
2/ | Excludes Des Moines’ apartment occupancy percentage of 91.6% |
3/ | Annualized Rental Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 24 | 3/31/06 |
Joint Ventures Lease Expirations
March 31, 2006
Dollars in thousands | ||||||||||||||
Year | Rentable Square Feet Expiring | Percent of Rentable Square Feet | Annualized Revenue 1/ | Average Rental Rate | Percent of Annualized Revenue 1/ | |||||||||
Total | ||||||||||||||
2006 | 556,657 | 8.0 | % | $ | 10,945 | $ | 19.66 | 8.5 | % | |||||
2007 | 461,164 | 6.6 | % | 9,210 | 19.97 | 7.2 | % | |||||||
2008 | 1,298,570 | 18.8 | % | 21,461 | 16.53 | 16.6 | % | |||||||
2009 | 982,438 | 14.2 | % | 19,620 | 19.97 | 15.3 | % | |||||||
2010 | 713,408 | 10.3 | % | 12,273 | 17.20 | 9.5 | % | |||||||
2011 | 715,052 | 10.3 | % | 11,556 | 16.16 | 9.0 | % | |||||||
2012 | 447,892 | 6.5 | % | 9,285 | 20.73 | 7.2 | % | |||||||
2013 | 721,580 | 10.4 | % | 14,271 | 19.78 | 11.1 | % | |||||||
2014 | 327,606 | 4.7 | % | 7,207 | 22.00 | 5.6 | % | |||||||
2015 | 578,431 | 8.3 | % | 9,328 | 16.13 | 7.3 | % | |||||||
2016 and thereafter | 135,110 | 1.9 | % | 3,456 | 25.58 | 2.7 | % | |||||||
6,937,908 | 100.0 | % | $ | 128,612 | $ | 18.54 | 100.0 | % | ||||||
1/ | Annualized Revenue is March, 2006 rental revenue (base rent plus operating expense pass through revenue) multiplied by 12. |
Highwoods Properties, Inc. | Page 25 | 3/31/06 |
Dollars in thousands | ||||||||||||||||||||
Property | % Ownership | Market | Rentable Square Feet | Anticipated Total Investment | Investment @ 03/31/06 | Pre- Leasing | Estimated Completion Date | Estimated Stabilization Date | ||||||||||||
Sonoma | 50 | % | Des Moines | 75,000 | $ | 9,364 | $ | 9,072 | 68 | % | 2Q05 | 4Q06 | ||||||||
The Vinings at University Center 1/ 2/ | 50 | % | Charlotte | 156 units | 11,300 | 10,664 | 68 | % | 1Q 06 | 3Q 06 | ||||||||||
Weston Lakeside 2/ | 50 | % | Raleigh | 332 units | 33,200 | 10,046 | 0 | % | 1Q 07 | 1Q 08 | ||||||||||
Total or Weighted Average 3/ | 75,000 | $ | 53,864 | $ | 29,782 | 68 | % | |||||||||||||
Highwoods’ Share of the above | $ | 26,932 | $ | 14,891 | ||||||||||||||||
1/ | The Vinings at University Center is currently a fifty percent owned joint venture consolidated under the provisions of FIN 46. |
2/ | Estimated Completion Date is the date the last unit is expected to be delivered |
3/ | Pre-leasing percentage does not include multi-family |
Highwoods Properties, Inc. | Page 26 | 3/31/06 |