EX-99.2 3 dex992.htm SUPPLEMENTAL OPERATING & FINANCIAL DATA Supplemental Operating & Financial Data

Exhibit 99.2

LOGO

 

PRENTISS

PROPERTIES

TRUST

 

SUPPLEMENTAL OPERATING & FINANCIAL DATA

FOR THE QUARTER ENDED MARCH 31, 2005

 


 

Where to Get More Information

 

Prentiss Properties welcomes questions or comments from stockholders, analysts, investment managers, media or any prospective investor. Please address all inquiries to our Investor Relations Department at the following:

 

By phone

    

Switchboard

   214.654.0886

Investor Relations

   214.654.5720

By facsimile

   214.350.2437

By email

   ir@pplinc.com

By mail

   Prentiss Properties Trust
     Investor Relations
     3890 W. Northwest Hwy.
     Suite 400
     Dallas, Texas 75220

Web site

   www.prentissproperties.com

 

Tentative Earnings Announcements and Dividend Declarations

 

     2005 Q2

   2005 Q3

   2005 Q4

Earnings Announcements

   7/19    10/18    1/31

Dividend Declarations

   6/8    9/7    12/7

 


 

Prentiss Properties Trust

Supplemental Information

1st Quarter 2005

 

Overview and Highlights

    

Financial Highlights

   1

Calculation of FFO and FAD

   2

Calculation of NOI

   3

Consolidated Balance Sheets

   4

Consolidated Statements of Income

   5

Joint Venture Financial Summary

   6

Same Store Growth

   7

Portfolio Analysis

   8

Significant Tenants

   9

Industry Diversification

   10

Leasing

    

Leasing Activity Summary

   11

Year-To-Date Renewal Analysis

   12

Lease Expirations

   13-16

Capital Expenditures

    

Development, Leasing and Capital Expenditure Summary

   17

Capital Expenditures

   18

Year-to-Date Non Incremental Leasing Cost Analysis

   19

Non-Incremental Leasing Cost Analysis by City

   20

Development

    

Summary of Land Held for Future Development

   21

Summary of Development Activity

   22

Description and Facts for Properties Under Development

   23

Other Information

    

Acquisition and Disposition Activity

   24

Description and Facts for Properties Acquired

   25

Summary of Properties Owned and Managed

   26

Selected Property Data

   27-29

Summary of Financing

   30

Return on Invested Capital/Stock Performance

   31

Definitions of Non-GAAP Financial Measures

   32-34

 


 

Financial Highlights

 

(dollar in thousands, except per share amounts, shares and units in thousands)

 

     For the Three Months Ended or as of  
     3/31/2005

    12/31/2004

    9/30/2004

    6/30/2004

    3/31/2004

 

Financial Information (1)

                                        

Assets

     2,336,131       2,306,522       2,240,255       2,283,555       2,186,998  

Gross Book Value of Real Estate Assets

     2,255,773       2,227,015       2,173,045       2,211,098       2,139,087  

Unsecured Debt

     413,026       406,260       367,830       413,900       307,450  

Secured Debt

     855,268       807,047       781,393       772,635       810,884  

Weighted Average Maturity (years) (2)

     7.0       4.1       4.4       4.4       4.6  

NOI

     55,949       57,067       58,479       57,582       58,961  

Total Property Revenues (3)

     95,237       94,732       93,477       93,326       92,949  

Total Property Expenses (4)

     36,363       36,257       32,421       33,413       32,829  

Property NOI

     58,874       58,475       61,056       59,913       60,120  

Property Operating Margin

     61.82 %     61.73 %     65.32 %     64.20 %     64.68 %

Adjusted FFO/Share (5)

   $ 0.73     $ 0.75     $ 0.77     $ 0.76     $ 0.77  

Capitalization

                                        

Total Debt (1)

     1,268,294       1,213,307       1,149,223       1,186,535       1,118,334  

Total Common Shares Outstanding (6)

     45,189       45,063       44,925       44,846       44,313  

Total Convertible Preferred Shares Outstanding

     3,774       3,774       3,774       3,774       3,774  

Total OP Units Outstanding

     1,329       1,335       1,417       1,437       1,437  

Combined Shares and OP Units Outstanding

     50,292       50,172       50,116       50,057       49,524  

Share Price at Quarter End

   $ 34.16     $ 38.20     $ 36.00     $ 33.52     $ 36.90  

Equity Value of Common and Common Equivalents

     1,717,975       1,916,570       1,804,176       1,677,911       1,827,436  

Perpetual Preferred Equity

                             —         —    

Total Market Capitalization

     2,986,269       3,129,877       2,953,399       2,864,446       2,945,770  

Debt/Total Market Capitalization

     42.5 %     38.8 %     38.9 %     41.4 %     38.0 %

Financial Ratios

                                        

Interest Coverage

     2.89       3.01       3.02       2.99       3.11  

Fixed Charge Coverage (including preferred dividends)

     2.60       2.71       2.72       2.69       2.65  

Adjusted FFO Pay-out (6)

     76.69 %     75.07 %     72.62 %     74.20 %     74.00 %

FAD Pay-out

     114.68 %     135.30 %     105.23 %     101.32 %     106.26 %

FAD Less Dividends

     (3,606 )     (7,330 )     (1,395 )     (365 )     (1,394 )

ROIC - Annualized NOI / Operating Real Estate

     10.35 %     10.33 %     10.86 %     10.71 %     10.89 %

ROIC - Annualized NOI / (Op. Real Estate + Net Deferred Leasing Cost)

     9.40 %     9.36 %     9.95 %     9.87 %     10.04 %

Annualized NOI / Total Assets (book value before depreciation)

     8.56 %     8.87 %     9.36 %     9.08 %     9.67 %

Debt / Total Assets (book value before depreciation)

     48.52 %     47.17 %     46.01 %     46.79 %     45.84 %

Debt / Annualized NOI

     5.67       5.32       4.91       5.15       4.74  

 

(1) - Amounts adjusted to Prentiss Properties' ownership percentage for unconsolidated and consolidated joint ventures.

 

(2) - Excludes our line of credit.

 

(3) - Includes property revenues from discontinued operations.

 

(4) - Includes property expenses from discontinued operations.

 

(5) - Adjusted to add back impairment losses and debt defeasance related to real estate.

 

(6) - Includes 63,741 shares in treasury related to our deferred compensation plan.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 1


 

Calculation of FFO and FAD

For Common Shares and Common Share Equivalents

(000s, except per share data)

 

     Three Months Ended

 
     3/31/2005

    12/31/2004

    9/30/2004

    6/30/2004

    3/31/2004

 

Funds from Operations (FFO):

                                        

Net income

   $ 12,703     $ 14,078     $ 12,554     $ 18,792     $ 16,999  

Adjustments:

                                        

Real estate depreciation and amortization(1)

     24,407       24,294       24,368       23,785       22,982  

Minority interests (2)

     312       366       333       538       496  

Minority interest share of depreciation and amortization

     (1,431 )     (1,377 )     (1,181 )     (1,303 )     (821 )

Pro rata share of joint venture depreciation and amortization

     747       756       749       744       736  

Issue costs of preferred units redeemed

     —         —         —         —         (1,600 )

(Gain)/loss on sale of real estate

     (15 )     (3,593 )     1,821       (10,091 )     (1,316 )

FFO applicable to common and common equivalents

   $ 36,723     $ 34,524     $ 38,644     $ 32,465     $ 37,476  

Impairment losses and debt defeasance related to real estate

     —         2,900       —         5,316       —    

Adjusted FFO applicable to common and common equivalents

   $ 36,723     $ 37,424     $ 38,644     $ 37,781     $ 37,476  

Weighted average common shares, units and common shares equivalents (diluted)

     50,214       50,174       50,086       49,738       48,896  

Adjusted FFO per weighted average shares outstanding (diluted)

   $ 0.73     $ 0.75     $ 0.77     $ 0.76     $ 0.77  

Funds Available for Distribution (FAD):

                                        

Adjusted FFO

   $ 36,723     $ 37,424     $ 38,644     $ 37,781     $ 37,476  

Adjustments:

                                        

Straight-line rent adjustment

     (2,221 )     (2,053 )     (2,199 )     (2,231 )     (2,479 )

FAS 141 adjustment

     (155 )     (162 )     (344 )     (256 )     10  

Amortization of deferred financing fees

     689       544       646       582       579  

Capital expenditures

     (10,479 )     (14,987 )     (10,077 )     (8,209 )     (9,485 )

FAD

   $ 24,557     $ 20,766     $ 26,670     $ 27,667     $ 26,101  

Weighted average common shares, units and common shares equivalents (diluted)

     50,214       50,174       50,086       49,738       48,896  

Dividend per share

   $ 0.560     $ 0.560     $ 0.560     $ 0.560     $ 0.560  

Total dividend declared

   $ 28,163     $ 28,096     $ 28,065     $ 28,032     $ 27,734  

Payout ratio of Adjusted FFO

     76.69 %     75.07 %     72.62 %     74.20 %     74.00 %

Payout ratio of FAD

     114.68 %     135.30 %     105.23 %     101.32 %     106.26 %

 

(1) - Excludes depreciation and amortization not related to real estate.

 

(2) - Represents the minority interest attributable to holders of common partnership units. The units are included in the share count.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 2


 

Calculation of NOI

(dollars in thousands)

 

     Three Months Ended

 
     3/31/2005

    12/31/2004

    9/30/2004

    6/30/2004

    3/31/2004

 

NOI

                                        

Net income

   $ 12,703     $ 14,078     $ 12,554     $ 18,792     $ 16,999  

Adjustments:

                                        

Interest expense and amortization of financing

     18,593       17,992       18,231       17,736       17,403  

Real estate depreciation and amortization

     24,407       24,294       24,368       23,785       22,982  

Minority interests share of interest expense and deferred financing

     (686 )     (574 )     (372 )     —         —    

Minority interests share of depreciation and amortization

     (1,431 )     (1,377 )     (1,181 )     (1,303 )     (821 )

Other depreciation and amortization

     152       163       144       123       129  

Tax expenses

     (336 )     524       276       (43 )     (408 )

Minority interests applicable to common units

     312       366       333       538       496  

Minority interests applicable to preferred units

     21       19       17       22       1,204  

Loss on investment in securities

     —         —         —         420       —    

(Gain)/loss on sales, net of related defeasance cost

     (15 )     (3,593 )     1,821       (4,775 )     (1,316 )

Loss on impairment of mortgage loan

     —         2,900       —         —         —    

Equity in income of unconsolidated joint ventures

     (698 )     (639 )     (616 )     (596 )     (578 )

Net operating income of unconsolidated joint ventures

     2,927       2,914       2,904       2,883       2,871  
    


 


 


 


 


NOI

   $ 55,949     $ 57,067     $ 58,479     $ 57,582     $ 58,961  
    


 


 


 


 


 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 3


 

Prentiss Properties Trust

Consolidated Balance Sheets

 

(in thousands, except share and per share amounts)

 

     3/31/2005

    12/31/2004

    9/30/2004

    6/30/2004

    3/31/2004

 

Assets

                                        

Operating real estate:

                                        

Land

   $ 349,779     $ 341,321     $ 336,245     $ 345,089     $ 325,623  

Buildings and improvements

     1,827,141       1,789,043       1,731,346       1,779,810       1,728,823  

Less: accumulated depreciation

     (245,518 )     (234,007 )     (224,748 )     (221,575 )     (222,080 )
    


 


 


 


 


       1,931,402       1,896,357       1,842,843       1,903,324       1,832,366  

Construction in progress

     28,963       23,417       18,085       12,594       —    

Land held for development

     59,084       59,014       58,871       43,678       47,462  

Deferred charges and other assets, net

     269,015       260,283       236,392       233,238       209,744  

Notes receivable, net

     1,500       1,500       5,440       5,942       6,440  

Receivables, net

     55,910       55,772       54,841       51,030       49,451  

Cash and cash equivalents

     10,785       8,586       6,956       10,035       11,215  

Escrowed cash

     7,151       9,584       9,579       10,149       13,062  

Investments in securities and insurance contracts

     5,110       3,279       2,928       3,030       3,395  

Investments in unconsolidated joint ventures

     14,648       12,943       12,906       12,774       14,274  

Interest rate hedges

     7,242       2,804       2,107       5,099       475  
    


 


 


 


 


Total assets

   $ 2,390,810     $ 2,333,539     $ 2,250,948     $ 2,290,893     $ 2,187,884  
    


 


 


 


 


Liabilities and Shareholders’ Equity

                                        

Liabilities:

                                        

Mortgages and notes payable

   $ 1,249,083     $ 1,191,911     $ 1,115,534     $ 1,103,992     $ 1,034,934  

Interest rate hedges

     1,222       3,850       6,775       5,277       10,476  

Accounts payable and other liabilities

     89,059       105,304       93,255       82,706       70,492  

Distributions payable

     28,192       28,103       28,072       28,041       27,742  
    


 


 


 


 


Total liabilities

     1,367,556       1,329,168       1,243,636       1,220,016       1,143,644  
    


 


 


 


 


Minority interest in operating partnership

     24,613       24,990       26,790       27,738       27,476  
    


 


 


 


 


Minority interest in real estate partnerships

     62,029       35,792       30,858       77,843       69,841  
    


 


 


 


 


Commitments and contingencies

                                        

Shareholders’ equity:

                                        

Preferred shares $.01 par value, 20,000,000 shares authorized, 3,773,585 shares issued and outstanding

     100,000       100,000       100,000       100,000       100,000  

Common shares $.01 par value, 100,000,000 shares authorized, 48,394,871 and 48,268,845 (includes 3,269,746 and 3,286,957 in treasury) shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively

     484       483       481       480       475  

Additional paid-in capital

     1,024,545       1,020,917       1,017,744       1,014,116       997,537  

Common shares in treasury, at cost, 3,269,746 and 3,286,957 shares at March 31, 2005 and December 31, 2004, respectively

     (82,376 )     (82,694 )     (82,505 )     (82,159 )     (82,115 )

Unearned compensation

     (6,491 )     (3,386 )     (3,827 )     (4,254 )     (4,782 )

Accumulated other comprehensive income

     6,595       (302 )     (4,061 )     564       (9,176 )

Retained earnings/(distributions in excess of earnings)

     (106,145 )     (91,429 )     (78,168 )     (63,451 )     (55,016 )
    


 


 


 


 


Total shareholders’ equity

     936,612       943,589       949,664       965,296       946,923  
    


 


 


 


 


Total liabilities and shareholders' equity

   $ 2,390,810     $ 2,333,539     $ 2,250,948     $ 2,290,893     $ 2,187,884  
    


 


 


 


 


 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 4


 

Prentiss Properties Trust

Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

     Three Months Ended

 
     3/31/2005

    12/31/2004

    9/30/2004

    6/30/2004

    3/31/2004

 

Revenues:

                                        

Rental income

   $ 95,039     $ 93,897     $ 91,008     $ 87,622     $ 84,298  

Service business and other income

     3,050       4,277       3,216       2,928       3,488  
    


 


 


 


 


       98,089       98,174       94,224       90,550       87,786  
    


 


 


 


 


Operating expenses:

                                        

Property operating and maintenance

     26,045       25,604       22,685       22,015       21,377  

Real estate taxes

     10,859       10,894       9,396       9,780       9,336  

General and administrative and personnel cost

     2,883       3,010       3,423       2,785       2,585  

Expenses of service business

     2,655       3,213       2,670       2,466       1,649  

Depreciation and amortization

     24,559       24,393       24,171       22,467       21,284  
    


 


 


 


 


       67,001       67,114       62,345       59,513       56,231  
    


 


 


 


 


Other expenses:

                                        

Interest expense

     17,875       17,433       17,580       16,825       16,199  

Amortization of deferred financing costs

     718       559       651       568       565  

Income from continuing operations before equity in income of unconsolidated joint ventures, loss on securities, impairment and minority interests

     12,495       13,068       13,648       13,644       14,791  

Equity in income of unconsolidated joint ventures

     698       639       616       596       578  

Loss on investment in securities

     —         —         —         (420 )     —    

Loss from impairment of mortgage loan

     —         (2,900 )     —         —         —    

Minority interests

     (505 )     (258 )     (323 )     (563 )     (1,600 )
    


 


 


 


 


Income from continuing operations

     12,688       10,549       13,941       13,257       13,769  

Discontinued operations:

                                        

Income from discontinued operations including impairment losses

     —         44       390       942       1,978  

Gain/(loss) from disposition of discontinued operations

     15       3,593       (1,821 )     10,185       —    

Loss from debt defeasance related to sale of real estate

     —         —         —         (5,316 )     —    

Minority interest related to discontinued operations

     —         (108 )     44       (182 )     (64 )
    


 


 


 


 


       15       3,529       (1,387 )     5,629       1,914  

Income before (loss)/gain on sale of land and an interest in a real estate partnership

     12,703       14,078       12,554       18,886       15,683  

(Loss)/gain on sale of land and an interest in a real estate partnership

     —         —         —         (94 )     1,316  
    


 


 


 


 


Net income

     12,703       14,078       12,554       18,792       16,999  

Preferred dividends

     (2,113 )     (2,113 )     (2,113 )     (2,113 )     (3,713 )
    


 


 


 


 


Net income applicable to common shareholders

   $ 10,590     $ 11,965     $ 10,441     $ 16,679     $ 13,286  
    


 


 


 


 


Net income per common share - basic

   $ 0.24     $ 0.27     $ 0.23     $ 0.38     $ 0.31  
    


 


 


 


 


Weighted average number of common shares outstanding - basic

     44,884       44,799       44,691       44,386       43,426  
    


 


 


 


 


Net income per common share - diluted

   $ 0.23     $ 0.27     $ 0.23     $ 0.37     $ 0.30  
    


 


 


 


 


Weighted average number of common shares and common share equivalents outstanding-diluted

     45,109       45,024       44,882       44,527       43,670  
    


 


 


 


 


 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 5


 

Joint Venture Financial Summary

As of and for the Quarter Ended March 31, 2005

 

(dollars in thousands)

 

     Unconsolidated Joint Ventures

    Consolidated Joint Ventures

 
     Prentiss Ownership %

    Prentiss Ownership %

 
     Broadmoor
Austin
50%


    Tysons
International
25%


    Unconsolidated
Joint Ventures
Total


    Prentiss Office
Investors 51%


    Del Mar
Heights
70%


   Consolidated
Joint Ventures
Total


 

Results of Operations

                                               

Rental income before straight-line

   $ 2,953     $ 782     $ 3,735     $ 3,394     $ —      $ 3,394  

Straight-line adjustment

     (131 )     5       (126 )     154       —        154  

Other income

     1       2       3       5       —        5  
    


 


 


 


 

  


Revenues

     2,823       789       3,612       3,553       —        3,553  

Property operating expenses

     (414 )     (271 )     (685 )     (1,276 )     —        (1,276 )

Depreciation and amortization

     (527 )     (220 )     (747 )     (1,489 )     —        (1,489 )

Interest expense

     (1,196 )     (283 )     (1,479 )     (681 )     —        (681 )

Amortization of deferred financing costs

     —         (3 )     (3 )     (32 )     —        (32 )
    


 


 


 


 

  


Net income

   $ 686     $ 12     $ 698     $ 75     $ —      $ 75  
    


 


 


 


 

  


Add:

                                               

Depreciation

     527       220       747       1,489       —        1,489  
    


 


 


 


 

  


Funds from operations

   $ 1,213     $ 232     $ 1,445     $ 1,564     $ —      $ 1,564  
    


 


 


 


 

  


Add:

                                               

Interest expense

     1,196       283       1,479       681       —        681  

Amortization of deferred financing costs

     —         3       3       32       —        32  
    


 


 


 


 

  


NOI

   $ 2,409     $ 518     $ 2,927     $ 2,277     $ —      $ 2,277  
    


 


 


 


 

  


Balance Sheet Information

                                               

Real estate book value

   $ 70,034     $ 25,004     $ 95,038     $ 99,884     $ 19,288    $ 119,172  

Accumulated depreciation

     (29,561 )     (4,469 )     (34,030 )     (1,929 )     —        (1,929 )
    


 


 


 


 

  


Real estate book value after depreciation

   $ 40,473     $ 20,535     $ 61,008     $ 97,955     $ 19,288    $ 117,243  

Assets

   $ 48,656     $ 22,340     $ 70,996     $ 121,691     $ 20,433    $ 142,124  

Debt (1)

   $ 65,112     $ 14,726     $ 79,838     $ 59,007     $ 9,182    $ 68,189  

Equity

   $ (17,237 )   $ 7,241     $ (9,996 )   $ 59,808     $ 8,562    $ 68,370  

 

(1) - All joint venture debt is non-recourse.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 6


 

Same Store Growth

 

(in thousands, except per share amounts)

 

          Three Months Ended March 31,

       
          2005

    2004

       

Revenues:

                           

Rental income

        $ 82,802     $ 84,233        

Less:

                           

Straight-line rent adjustment

          1,877       2,453        

Termination fee income

          2,695       3,405        

Management and other fees, net

          24       45        
         


 


     
            78,254       78,420     -0.2 %
         


 


     

Expenses:

                           

Property operating and maintenance

          21,380       20,754     3.0 %

Real estate taxes

          9,355       9,305     0.5 %
         


 


     
            30,735       30,059     2.2 %
         


 


     
            47,519       48,361     -1.7 %
         


 


     

Occupancy

          87.5 %     90.1 %      

Properties

   116                       

Square Feet

   15,845                       

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 7


 

Portfolio Analysis: Operating Properties

 

     Percentage of NOI
by Location and Building Type
For the Quarter Ended 3/31/05


    Percentage Leased
by Location and Building Type
at March 31, 2005


    Rentable Square Footage (000s) of
Properties by Location and Building
Type at March 31, 2005


 
     Office

    Industrial

    Total

    Office

    Industrial

    Total

    Office

    Industrial

    Total

    % of
Total


 

Core Markets

                                                            

Metropolitan Washington, D.C.

   29.7 %         29.7 %   89.3 %         89.3 %   4,100           4,100     22.2 %

Dallas / Fort Worth

   19.2 %         19.2 %   87.1 %         87.1 %   4,718           4,718     25.6 %

Chicago

   12.7 %   0.7 %   13.5 %   87.3 %   82.1 %   86.1 %   2,227     682     2,909     15.8 %

Austin

   12.2 %         12.2 %   98.2 %         98.2 %   1,673           1,673     9.1 %

Northern California

   11.9 %         11.9 %   87.4 %         87.4 %   1,772           1,772     9.6 %

San Diego

   6.0 %   1.3 %   7.3 %   92.8 %   85.1 %   90.9 %   814     268     1,082     5.9 %

Other Markets

                                                            

Los Angeles

         2.8 %   2.8 %         100.0 %   100.0 %         1,253     1,253     6.8 %

Denver

   2.3 %         2.3 %   69.8 %         69.8 %   709           709     3.8 %

Detroit

   1.1 %         1.1 %   90.1 %         90.1 %   242           242     1.3 %
    

 

 

 

 

 

 

 

 

 

     95.1 %   4.9 %   100.0 %   88.4 %   92.6 %   88.9 %   16,255     2,203     18,458     100.0 %
    

 

 

 

 

 

 

 

 

 

                       Percentage of Total     88.1 %   11.9 %   100.0 %      
                                        

 

 

     

 

Notes:

 

(1) - Analysis relates to operating properties owned at the end of the period only.

 

(2) - Jointly owned properties are included at Prentiss Properties Trust’s ownership share.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 8


 

Significant Tenants

March 31, 2005

 

Tenants


   Number of
Properties


   Annualized
Base Rental
Revenue
($000)’s


   Percentage
of Company
Annualized
Base Rental
Revenue


    Square
Feet
Leased
(000)’s


   Percentage
of Company
Leased
Sq. Ft.


   

Month of Lease Expiration (Sq.Ft. in 000’s)


IBM

   4    18,576    6 %   973    6 %   3/06 (169); 1/08 (24); 8/08 (150); 9/09 (163); 3/11 (387); 1/13 (80)

Kaiser Foundation Health Plan

   2    11,868    4 %   382    2 %   11/05 (23); 8/08 (24); 3/09 (23); 2/11 (312)

7-11, Inc.

   1    9,425    3 %   504    3 %   4/07

Northrop Grumman Corporation

   4    7,247    2 %   267    2 %   8/07 (73); 3/08 (168); 4/08 (26)

General Services Administration-U.S. Govt

   5    5,786    2 %   301    2 %   1/06 (80); 2/06 (19); 2/07 (36); 4/07 (3); 10/12 (9); 2/13 (51); 9/13 (103)

CGI Group, Inc.

   1    5,008    2 %   264    2 %   2/11

R.R. Donnelley

   1    4,872    2 %   257    2 %   8/11

Aspen Systems Corporation

   1    4,625    1 %   208    1 %   9/07

AT & T

   2    4,596    1 %   205    1 %   4/06 (1); 12/06 (38); 5/09 (166)

SRA International

   1    4,382    1 %   183    1 %   12/07 (107); 6/10 (76)

Perot Systems

   2    4,303    1 %   161    1 %   12/11 (71); 7/15 (90)

Burlington Resources

   1    4,266    1 %   199    1 %   6/13

Americredit

   1    4,165    1 %   238    1 %   5/11

World Savings & Loan

   2    4,056    1 %   157    1 %   12/07 (148); 2/10 (9)

Brandes Investments

   1    3,997    1 %   128    1 %   9/11

National Union Fire Insurance (AIG)

   1    3,993    1 %   193    1 %   2/09

Thomson Corporation

   2    3,671    1 %   210    1 %   5/11 (82); 7/13 (128)

HMSHost

   1    3,365    1 %   102    1 %   12/06

Hoechst Celanese

   2    3,337    1 %   185    1 %   7/07

The Lewin Group

   1    3,243    1 %   103    1 %   2/09
         
  

 
  

   

Total:

        114,781    37 %   5,220    32 %    
         
  

 
  

   

Total Company

        313,531          16,415           
         
        
          

 

The above table sets forth a schedule of the Company’s 20 largest tenants including subsidiaries for the Operating Properties as of March 31, 2005, based upon annualized base rents. Annualized base rental revenue is based on actual March 2005 billings times 12. For leases whose rent commences after April 1, 2005, annualized base rental revenue is based on the first month’s billing times 12. As annualized base rental revenue is not derived from the historical GAAP results, historical results may differ from those set forth above.

 

The above table includes office and industrial properties, with Broadmoor Austin, 8260 Greensboro Drive, 1676 International Drive and Prentiss Office Investors, LP listed at their ownership percentage.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 9


 

Industry Diversification

March 31, 2005

 

Industry Classification


   Annualized
Base Rental
Revenue
($000)’s


   Percentage
of Company
Annualized Base
Rental Revenue


    Square
Feet
Leased
(000)’s


   Percentage of
Total Company
Leased
Sq. Ft.


 

Computer Systems Design

   54,774    17 %   2,702    16 %

Management / Scientific & Technical

   26,460    8 %   1,228    7 %

Insurance Carriers

   19,145    6 %   1,006    6 %

Legal Services

   15,848    5 %   691    4 %

Ambulatory Health Care Services

   15,446    5 %   546    3 %

Securities, Commodity / Other

   13,713    4 %   593    4 %

Other Professional - Scientific

   12,340    4 %   586    4 %

Architectural / Engineering

   9,986    3 %   393    2 %

Commerical Banking

   9,970    3 %   519    3 %

Food & Beverage Stores

   9,608    3 %   525    3 %

Broadcasting / Telecommunication

   8,563    3 %   380    2 %

Monetary Authority - Central Bank

   8,523    3 %   335    2 %

Real Estate

   8,134    3 %   405    2 %

Information Services / Data Processing

   6,962    2 %   336    2 %

Printing & Related Support

   6,176    2 %   356    2 %

Computer/Electronic Product Manufactuing

   5,761    2 %   314    2 %

Accounting / Tax Preparation / Payroll

   5,675    2 %   236    1 %

Chemical Manufacturing

   5,190    2 %   303    2 %

Warehousing / Storage Facilities

   4,574    1 %   891    5 %

Food Services / Drinking Places

   4,469    1 %   245    1 %

Funds, Trusts & Other Financial

   4,152    1 %   252    2 %

Publishing Industries

   4,027    1 %   194    1 %

Specialized Design Services

   4,007    1 %   205    1 %

Oil & Gas Extraction

   3,756    1 %   242    1 %

Food Manufacturing

   3,230    1 %   206    1 %

Educational Services

   3,110    1 %   183    1 %

Housing/Urban Planning/Development

   2,966    1 %   197    1 %

Administration / Support Service

   2,748    1 %   133    1 %

Air Transportation

   2,185    1 %   94    1 %

Miscellaneous Manufacturing

   2,161    1 %   384    2 %

Other

   29,872    10 %   1,735    11 %
    
  

 
  

Total:

   313,531    100 %   16,415    100 %
    
  

 
  

 

The above table lists the Company’s 30 largest industry classifications based on annualized contractual base rent of the Operating Properties.

 

The Company’s tenants are classified according to the U.S. Government’s new North American Industrial Classification System (NAICS) which is replacing the Standard Industrial Code (SIC) system.

 

The above table includes office and industrial properties, with Broadmoor Austin, 8260 Greensboro Drive, 1676 International Drive and Prentiss Office Investors, LP listed at their ownership percentage.

 

Annualized base rental revenue is based on actual March 2005 billings times 12. For leases whose rent commences after April 1, 2005, annualized base rental revenue is based on the first month’s billing times 12. As annualized base rental revenue is not derived from historical GAAP results, historical results may differ from those set forth above.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 10


 

Leasing Activity Summary

For the Quarter Ended March 31, 2005

 

   

3/31/05


   %
Leased
at
12/31/04


    KSF
Leased
at
12/31/04


   KSF
Expiring
During
Period


    Leasing Activity(KSF) :

   KSF
Leased
at
3/31/05


   %
Leased
at
3/31/05


   

Cash

Net Rent / SF


  

Straight-lined

Net Rent /SF


   %
Increase
of SL
Net
Rent


 
   

KSF


 

%


          Renew

   Expand

   New

   Acquire

       

Expiring

Leases


   Leasing
Activity


   Expiring
Leases


   Leasing
Activity


  

Office Properties

                                                                                          

Oakland

  1,466   8%    92 %   1,346    (36 )   16    0    3    0    1,329    91 %   $ 18.26    $ 17.63    $ 17.64    $ 18.72    6 %

Silicon Valley

  306   2%    72 %   220    0     0    0    0    0    220    72 %                                  

San Diego

  814   4%    91 %   741    (39 )   28    7    18    0    755    93 %   $ 19.05    $ 19.02    $ 18.83    $ 19.81    5 %

Chicago

  2,227   12%    88 %   1,956    (78 )   30    14    22    0    1,944    87 %   $ 16.94    $ 14.54    $ 16.36    $ 15.70    -4 %

Austin

  1,673   9%    97 %   1,618    (11 )   7    26    3    0    1,643    98 %   $ 17.41    $ 12.00    $ 17.41    $ 12.99    -25 %

Dallas

  3,693   20%    82 %   3,050    (44 )   12    6    103    0    3,127    85 %   $ 8.97    $ 10.11    $ 8.93    $ 9.35    5 %

Fort Worth

  1,025   6%    96 %   983    (16 )   13    1    0    0    981    96 %   $ 9.38    $ 9.58    $ 9.37    $ 9.98    7 %

Northern Virginia

  2,837   15%    93 %   2,559    (39 )   12    2    78    87    2,699    95 %   $ 17.14    $ 14.46    $ 17.22    $ 15.89    -8 %

Suburban Maryland

  1,263   7%    76 %   959    (25 )   3    0    26    0    963    76 %   $ 15.08    $ 15.95    $ 13.50    $ 18.06    34 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Subtotal - Core Markets

  15,304   83%    88 %   13,432    (288 )   121    56    253    87    13,661    89 %   $ 14.73    $ 13.69    $ 14.48    $ 14.34    -1 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Denver

  709   4%    85 %   605    (206 )   89    0    7    0    495    70 %   $ 10.31    $ 8.05    $ 10.29    $ 8.66    -16 %

Detroit

  242   1%    89 %   216    (4 )   0    1    5    0    218    90 %   $ 17.63    $ 10.28    $ 16.12    $ 9.96    -38 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Subtotal - Other Markets

  951   5%    86 %   821    (210 )   89    1    12    0    713    75 %   $ 10.74    $ 8.18    $ 10.63    $ 8.74    -18 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Total - Office Properties

  16,255   88%    88 %   14,253    (498 )   210    57    265    87    14,374    88 %   $ 13.96    $ 12.63    $ 13.74    $ 13.27    -3 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Industrial Properties

                                                                                          

Los Angeles

  1,253   7%    88 %   1,107    0     0    0    146    0    1,253    100 %   $ 5.69    $ 2.06    $ 5.51    $ 2.06    -63 %

San Diego

  268   1%    100 %   268    (40 )   0    0    0    0    228    85 %                                  

Chicago

  682   4%    82 %   560    0     0    0    0    0    560    82 %                                  
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Total - Industrial Props.

  2,203   12%    88 %   1,935    (40 )   0    0    146    0    2,041    93 %   $ 5.69    $ 2.06    $ 5.51    $ 2.06    -63 %
   
 
  

 
  

 
  
  
  
  
  

 

  

  

  

  

Total Properties

  18,458   100%    88 %   16,188    (538 )   210    57    411    87    16,415    89 %                                  
   
 
  

 
  

 
  
  
  
  
  

                                 

 

Notes: The Leasing Activity Summary reflects activity for all operating properties. Rates for “Expiring Leases” relate to the lease previously occupying the space.

 

“Net Rent” means the fixed base rental amount paid by tenants under the terms of the related lease agreement less any portion of that base rent used by landlord to offset real estate taxes, utility charges, and other operating expenses incurred in connection with the leased space. Square footage shown at Prentiss Properties Trust’s ownership percentage.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 11


 

Year-To-Date Renewal Analysis

For the Period Ended March 31, 2005

 

     Q1 2005

    YTD 2005

 
     Expiring
SF


   Renewal
Rate


    Expiring
SF


   Renewal
Rate


 

Percentage of Tenants Retained on a Square Footage Basis

                      

Office

   498    46 %   498    46 %

Industrial

   40    0 %   40    0 %
    
  

 
  

Total

   538    43 %   538    43 %
    
  

 
  

 

     Q1 2005

    YTD 2005

 
     Expiring
Leases


   Renewal
Rate


    Expiring
Leases


   Renewal
Rate


 

Percentage of Tenants Retained on a Number of Leases Basis

                      

Office

   69    57 %   69    57 %

Industrial

   1    0 %   1    0 %
    
  

 
  

Total

   70    56 %   70    56 %
    
  

 
  

 

Notes: The calculation is based upon the percentage of expiring leases in the appropriate building with a tenant or subtenant being retained in the expiring space or an existing tenant expanding into the expiring space.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 12


Lease Expirations From April 1, 2005

 

Office Properties

 

         2005

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    Thereafter

 

Southwest Office

  

Square Feet Expiring (000’s)

    298       643       1,054       461       859       513       1,120       144       650       109       395  
    

Square Feet as a % of NRA

    4 %     9 %     15 %     6 %     12 %     7 %     16 %     2 %     9 %     2 %     6 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 5,394     $ 12,980     $ 19,897     $ 7,509     $ 17,648     $ 9,432     $ 22,824     $ 3,130     $ 11,922     $ 1,897     $ 6,591  
    

Annualized Base Rent PSF in Expiring Year

  $ 18.10     $ 20.19     $ 18.88     $ 16.29     $ 20.54     $ 18.39     $ 20.38     $ 21.74     $ 18.34     $ 17.40     $ 16.69  
    

Number of Leases Expiring

    42       42       46       46       45       21       13       5       9       4       4  

Mid-Atlantic Office

  

Square Feet Expiring (000’s)

    218       659       622       307       513       404       495       111       9       167       157  
    

Square Feet as a % of NRA

    5 %     16 %     15 %     7 %     13 %     10 %     12 %     3 %     0 %     4 %     4 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 5,833     $ 16,548     $ 15,422     $ 8,477     $ 14,154     $ 10,636     $ 12,292     $ 3,570     $ 232     $ 4,791     $ 4,822  
    

Annualized Base Rent PSF in Expiring Year

  $ 26.76     $ 25.11     $ 24.79     $ 27.61     $ 27.59     $ 26.33     $ 24.83     $ 32.16     $ 25.78     $ 28.69     $ 30.71  
    

Number of Leases Expiring

    28       40       40       20       37       19       12       4       2       5       6  

Midwest Office

  

Square Feet Expiring (000’s)

    40       200       138       211       176       148       405       221       240       60       323  
    

Square Feet as a % of NRA

    2 %     8 %     6 %     9 %     7 %     6 %     16 %     9 %     10 %     2 %     13 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 577     $ 4,399     $ 3,391     $ 3,730     $ 3,547     $ 2,943     $ 9,963     $ 4,954     $ 5,194     $ 1,366     $ 6,811  
    

Annualized Base Rent PSF in Expiring Year

  $ 14.43     $ 22.00     $ 24.57     $ 17.68     $ 20.15     $ 19.89     $ 24.60     $ 22.42     $ 21.64     $ 22.77     $ 21.09  
    

Number of Leases Expiring

    16       24       26       19       23       12       10       10       9       9       9  

Northern California Office

  

Square Feet Expiring (000’s)

    84       100       231       204       188       109       335       54       8       220       16  
    

Square Feet as a % of NRA

    5 %     6 %     13 %     12 %     11 %     6 %     19 %     3 %     0 %     12 %     1 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 2,504     $ 2,865     $ 6,668     $ 6,186     $ 5,466     $ 3,624     $ 11,029     $ 1,609     $ 275     $ 3,823     $ 541  
    

Annualized Base Rent PSF in Expiring Year

  $ 29.81     $ 28.65     $ 28.87     $ 30.32     $ 29.07     $ 33.25     $ 32.92     $ 29.80     $ 34.38     $ 17.38     $ 33.81  
    

Number of Leases Expiring

    28       15       21       11       16       4       2       2       1       1       1  

Southern California Office

  

Square Feet Expiring (000’s)

    99       120       123       106       94       58       128       1       12       14       0  
    

Square Feet as a % of NRA

    12 %     15 %     15 %     13 %     12 %     7 %     16 %     0 %     1 %     2 %     0 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 2,687     $ 2,962     $ 3,441     $ 2,928     $ 2,776     $ 2,012     $ 4,461     $ 58     $ 467     $ 497     $ 0  
    

Annualized Base Rent PSF in Expiring Year

  $ 27.14     $ 24.68     $ 27.98     $ 27.62     $ 29.53     $ 34.69     $ 34.85     $ 58.00     $ 38.92     $ 35.50     $ 0.00  
    

Number of Leases Expiring

    40       38       38       19       20       7       2       1       1       2       0  

Total Office Properties

  

Square Feet Expiring (000’s)

    739       1,722       2,168       1,289       1,830       1,232       2,483       531       919       570       891  
    

Square Feet as a % of NRA

    5 %     11 %     13 %     8 %     11 %     8 %     15 %     3 %     6 %     4 %     5 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 16,995     $ 39,754     $ 48,819     $ 28,830     $ 43,591     $ 28,647     $ 60,569     $ 13,321     $ 18,090     $ 12,374     $ 18,765  
    

Annualized Base Rent PSF in Expiring Year

  $ 23.00     $ 23.09     $ 22.52     $ 22.37     $ 23.82     $ 23.25     $ 24.39     $ 25.09     $ 19.68     $ 21.71     $ 21.06  
    

Number of Leases Expiring

    154       159       171       115       141       63       39       22       22       21       20  

 

Note: “Base Rent” means the fixed base rental amount paid by tenants under the terms of the related lease agreement. Base Rent may or may not include payments on account of base year real estate taxes, utility charges, and other operating expenses, according to the terms of the specific lease.

 

Note: The above schedule represents remaining leasing exposure (expiring space with no signed lease to take the place of the expiring lease).

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 13


 

Lease Expirations

From April 1, 2005

 

Industrial Properties

 

         2005

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    Thereafter

 

Midwest Industrial

  

Square Feet Expiring (000’s)

    13       202       28       267       50       0       0       0       0       0       0  
    

Square Feet as a % of NRA

    2 %     30 %     4 %     39 %     7 %     0 %     0 %     0 %     0 %     0 %     0 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 92     $ 711     $ 165     $ 988     $ 262     $ 0     $ 0     $ 0     $ 0     $ 0     $ 0  
    

Annualized Base Rent PSF in Expiring Year

  $ 7.08     $ 3.52     $ 5.89     $ 3.70     $ 5.24     $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00     $ 0.00  
    

Number of Leases Expiring

    1       2       2       1       1       0       0       0       0       0       0  

Southern California Industrial

  

Square Feet Expiring (000’s)

    385       144       429       144       290       22       0       67       0       0       0  
    

Square Feet as a % of NRA

    25 %     9 %     28 %     9 %     19 %     1 %     0 %     4 %     0 %     0 %     0 %
    

Annualized Base Rent in Expiring Year (000’s)

  $ 2,246     $ 1,957     $ 2,962     $ 890     $ 2,164     $ 172     $ 0     $ 501     $ 0     $ 0     $ 0  
    

Annualized Base Rent PSF in Expiring Year

  $ 5.83     $ 13.59     $ 6.90     $ 6.18     $ 7.46     $ 7.82     $ 0.00     $ 7.48     $ 0.00     $ 0.00     $ 0.00  
    

Number of Leases Expiring

    7       4       6       3       8       1       0       1       0       0       0  

Total Industrial Properties

  

Square Feet Expiring (000’s)

    398       346       457       411       340       22       0       67       0       0       0  
    

Square Feet as a % of NRA

    18 %     16 %     21 %     19 %     15 %     1 %     0 %     3 %     0 %     0 %     0 %
    

Annualized Base Rent in Expiring Year (000’s)

    2,338       2,668       3,127       1,878       2,426       172       0       501       0       0       0  
    

Annualized Base Rent PSF in Expiring Year

  $ 5.87     $ 7.71     $ 6.84     $ 4.57     $ 7.14     $ 7.82     $ 0.00     $ 7.48     $ 0.00     $ 0.00     $ 0.00  
    

Number of Leases Expiring

    8       6       8       4       9       1       0       1       0       0       0  

 

Note: “Base Rent” means the fixed base rental amount paid by tenants under the terms of the related lease agreement. Base Rent may or may not include payments on account of base year real estate taxes, utility charges, and other operating expenses, according to the terms of the specific lease.

 

Note: The above schedule represents remaining leasing exposure (expiring space with no signed lease to take the place of the expiring lease).

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 14


 

Lease Expirations for the Next Four Quarters

From April 1, 2005

 

Office Properties

 

          Qtr 2
2005


    Qtr 3
2005


    Qtr 4
2005


    Qtr 1
2006


    Total

 

Southwest Office

  

Square Feet Expiring (000’s)

     81       87       130       57       355  
    

Square Feet as a % of NRA

     1 %     1 %     2 %     1 %     5 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 1,477     $ 1,648     $ 2,269     $ 1,121     $ 6,515  
    

Annualized Base Rent PSF in Expiring Year

   $ 18.23     $ 18.94     $ 17.45     $ 19.67     $ 18.35  
    

Number of Leases Expiring

     12       12       18       7       49  

Mid-Atlantic Office

  

Square Feet Expiring (000’s)

     76       62       80       110       328  
    

Square Feet as a % of NRA

     2 %     1 %     2 %     3 %     8 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 2,095     $ 1,538     $ 2,200     $ 2,327     $ 8,160  
    

Annualized Base Rent PSF in Expiring Year

   $ 27.57     $ 24.81     $ 27.50     $ 21.15     $ 24.88  
    

Number of Leases Expiring

     7       10       11       10       38  

Midwest Office

  

Square Feet Expiring (000’s)

     3       12       25       55       95  
    

Square Feet as a % of NRA

     0 %     0 %     1 %     2 %     4 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 30     $ 110     $ 437     $ 1,073     $ 1,650  
    

Annualized Base Rent PSF in Expiring Year

   $ 10.00     $ 9.17     $ 17.48     $ 19.51     $ 17.37  
    

Number of Leases Expiring

     1       4       11       6       22  

Northern California Office

  

Square Feet Expiring (000’s)

     28       3       53       31       115  
    

Square Feet as a % of NRA

     2 %     0 %     3 %     2 %     6 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 799     $ 137     $ 1,568     $ 941     $ 3,445  
    

Annualized Base Rent PSF in Expiring Year

   $ 28.54     $ 45.67     $ 29.58     $ 30.35     $ 29.96  
    

Number of Leases Expiring

     7       2       19       5       33  

Southern California Office

  

Square Feet Expiring (000’s)

     33       20       46       48       147  
    

Square Feet as a % of NRA

     4 %     2 %     6 %     6 %     18 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 938     $ 491     $ 1,258     $ 1,173     $ 3,860  
    

Annualized Base Rent PSF in Expiring Year

   $ 28.42     $ 24.55     $ 27.35     $ 24.44     $ 26.26  
    

Number of Leases Expiring

     13       12       15       14       54  

Total Office Properties

  

Square Feet Expiring (000’s)

     221       184       334       301       1,040  
    

Square Feet as a % of NRA

     1 %     1 %     2 %     2 %     6 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 5,339     $ 3,924     $ 7,732     $ 6,635     $ 23,630  
    

Annualized Base Rent PSF in Expiring Year

   $ 24.16     $ 21.33     $ 23.15     $ 22.04     $ 22.72  
    

Number of Leases Expiring

     40       40       74       42       196  

 

Note: “Base Rent” means the fixed base rental amount paid by tenants under the terms of the related lease agreement. Base Rent may or may not include payments on account of base year real estate taxes, utility charges, and other operating expenses, according to the terms of the specific lease.

 

Note: The above schedule represents remaining leasing exposure (expiring space with no signed lease to take the place of the expiring lease).

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 15


 

Lease Expirations for the Next Four Quarters

From April 1, 2005

 

Industrial Properties

 

          Qtr 2
2005


    Qtr 3
2005


    Qtr 4
2005


    Qtr 1
2006


    Total

 
                                               

Midwest Industrial

  

Square Feet Expiring (000’s)

     0       13       0       0       13  
    

Square Feet as a % of NRA

     0 %     2 %     0 %     0 %     2 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 0     $ 92     $ 0     $ 0     $ 92  
    

Annualized Base Rent PSF in Expiring Year

   $ 0.00     $ 7.08     $ 0.00     $ 0.00     $ 7.08  
    

Number of Leases Expiring

     0       1       0       0       1  

Southern California Industrial

  

Square Feet Expiring (000’s)

     54       119       212       92       477  
    

Square Feet as a % of NRA

     4 %     8 %     14 %     6 %     31 %
    

Annualized Base Rent in Expiring Year (000’s)

   $ 624     $ 927     $ 695     $ 1,316     $ 3,562  
    

Annualized Base Rent PSF in Expiring Year

   $ 11.56     $ 7.79     $ 3.28     $ 14.30     $ 7.47  
    

Number of Leases Expiring

     2       3       2       2       9  

Total Industrial Properties

  

Square Feet Expiring (000’s)

     54       132       212       92       490  
    

Square Feet as a % of NRA

     2 %     6 %     10 %     4 %     22 %
    

Annualized Base Rent in Expiring Year (000’s)

     624       1,019       695       1,316     $ 3,654  
    

Annualized Base Rent PSF in Expiring Year

   $ 11.56     $ 7.72     $ 3.28     $ 14.30     $ 7.46  
    

Number of Leases Expiring

     2       4       2       2       10  

 

Note: “Base Rent” means the fixed base rental amount paid by tenants under the terms of the related lease agreement. Base Rent may or may not include payments on account of base year real estate taxes, utility charges, and other operating expenses, according to the terms of the specific lease.

 

Note: The above schedule represents remaining leasing exposure (expiring space with no signed lease to take the place of the expiring lease).

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 16


 

Development, Leasing and

Capital Expenditures Summary

 

    

(000s)

For the Three Months Ended


     3/31/2005

   12/31/2004

   9/30/2004

   6/30/2004

   3/31/2004

Development (1)

   $ 3,948    $ 3,866    $ 3,901    $ 655    $ 37

Re-development (2)

     454      491      1,020      453      1,450
    

  

  

  

  

Subtotal Developments

     4,402      4,357      4,921      1,108      1,487
    

  

  

  

  

Incremental Leasing Costs (3)

     3,902      4,127      2,904      1,843      908

Incremental Capital Expenditures (4)

     476      690      188      73      319
    

  

  

  

  

Subtotal Incremental

     4,378      4,817      3,092      1,916      1,227
    

  

  

  

  

Non-incremental Leasing Costs (5)

     8,170      13,179      9,008      7,449      7,748

Non-incremental Capital Expenditures (5)

     2,309      1,808      1,069      760      1,737
    

  

  

  

  

Subtotal Non-Incremental

     10,479      14,987      10,077      8,209      9,485
    

  

  

  

  

Total Capital Expenditures

   $ 19,259    $ 24,161    $ 18,090    $ 11,233    $ 12,199
    

  

  

  

  

 

(1) Development includes all new construction costs related to base building and all costs associated with leasing these new properties.

 

(2) Redevelopment costs are related to 123 North Wacker and 5480 Great America Parkway. We classify projects as redevelopments if we make substantial improvements to the property, which change the character of the asset and result in development type returns on capital. Since our IPO, 123 North Wacker, Park West at Dulles and 5480 Great America Parkway are the only redevelopments we have done.

 

(3) Incremental Leasing Costs include costs to lease any shell space in our developments after they have been moved to our operating portfolio. Incremental Leasing Costs also include costs to lease shell or vacant space acquired by acquisition.

 

(4) Incremental Capital Expenditures include costs incurred to expand rentable square footage in a project or are capital improvements that we identified as necessary at the time of acquisition and are then completed as soon as practicable and possible after acquisition. Additionally, costs of major renovations that raise the class level of the property are considered Incremental Capital Expenditures.

 

(5) Non-incremental leasing costs are all leasing costs that are not incremental leasing costs. All capital expenditures that are not incremental capital expenditures are non-incremental capital expenditures.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 17


 

Capital Expenditures Detail

For the Quarter Ended March 31, 2005

(000s)

 

Incremental

 

     Common
Area


   Landscaping
& Parking Lot


   Base
Building


   Roofing

   Other

   Total

Office

   $ 134    $ 3    $ 331    $ 0    $ 8    $ 476

Industrial

     —        —        —        —        —        —  
    

  

  

  

  

  

Total

   $ 134    $ 3    $ 331    $ 0    $ 8    $ 476
    

  

  

  

  

  

 

Non-Incremental

 

     Common
Area


   Landscaping
& Parking Lot


   Base
Building


   Roofing

   Other

   Total

Office

   $ 811    $ 9    $ 615    $ 124    $ 522    $ 2,081

Industrial

     1      227      —        —        —        228
    

  

  

  

  

  

Total

   $ 812    $ 236    $ 615    $ 124    $ 522    $ 2,309
    

  

  

  

  

  

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 18


 

Year-To-Date Non-Incremental Leasing Cost Analysis

For the Period Ended March 31, 2005

 

     Q1 2005

   Total 2005

     KSF

   Ave. Term
in Yrs


   Leasing Cost /Sq Ft

   KSF

   Ave. Term
in Yrs


   Leasing Cost /Sq Ft

Office


         for Term

   per Year

         for Term

   per Year

Renewals

   210    4.4    $ 13.31    $ 3.03    210    4.4    $ 13.31    $ 3.03

Expansions

   53    5.1    $ 24.14    $ 4.72    53    5.1    $ 24.14    $ 4.72

New Leases

   233    7.6    $ 28.26    $ 3.72    233    7.6    $ 28.26    $ 3.72
    
  
  

  

  
  
  

  

     496    6.0    $ 21.49    $ 3.59    496    6.0    $ 21.49    $ 3.59
    
  
  

  

  
  
  

  

 

     Q1 2005

   Total 2005

     KSF

   Ave. Term
in Yrs


   Leasing Cost /Sq Ft

   KSF

   Ave. Term
in Yrs


   Leasing Cost /Sq Ft

Industrial


         for Term

   per Year

         for Term

   per Year

Renewals

   —      —      $ 0.00    $ 0.00    0    —      $ 0.00    $ —  

Expansions

   —      —      $ 0.00    $ 0.00    0    —      $ 0.00    $ —  

New Leases

   146    0.1    $ 0.02    $ 0.02    146    0.1    $ 0.02    $ 0.02
    
  
  

  

  
  
  

  

     146    0.1    $ 0.02    $ 0.02    146    0.1    $ 0.02    $ 0.02
    
  
  

  

  
  
  

  

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 19


 

Non-Incremental Leasing Cost Analysis By City

For the Quarter Ended March 31, 2005

 

          Renewals

   Expansions

   New Leases

    

NRA

KSF


   No. of
Leases


   KSF

  

Ave.

Term
in
Years


  

Weighted
Average

Leasing Costs


  

S/L

Net

Rent


  

No. of

Leases


   KSF

  

Ave.
Term
in

Years


  

Weighted
Average

Leasing Costs


  

S/L

Net

Rent


  

No. of

Leases


   KSF

  

Ave.
Term
in

Years


  

Weighted
Average

Leasing Costs


   S/L Net
Rent


Property


               /SF

   /SF/Yr

               /SF

   /SF/Yr

               /SF

   /SF/Yr

  

Office Properties

                                                                                                                

Oakland Properties

   1,466    4    16    4.5    $ 1.04    $ 0.23    $ 19.04    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    1    3    1.0    $ 0.00    $ 0.00    $ 17.00

Silicon Valley

   306    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00

San Diego Properties

   814    8    28    3.7    $ 11.35    $ 3.05    $ 21.45    1    7    3.0    $ 6.69    $ 2.23    $ 17.21    8    17    2.8    $ 8.33    $ 3.02    $ 18.41

Denver Properties

   709    4    89    4.4    $ 17.54    $ 4.01    $ 8.77    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    1    7    1.0    $ 1.16    $ 1.16    $ 7.23

Chicago Properties

   2,227    4    30    5.4    $ 16.81    $ 3.12    $ 14.10    1    10    3.5    $ 2.66    $ 0.76    $ 14.39    1    1    1.0    $ 0.91    $ 0.91    $ 12.43

Detroit Properties

   242    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    1    1    2.7    $ 9.01    $ 3.37    $ 8.67    2    5    5.1    $ 22.91    $ 4.48    $ 10.22

Austin Properties

   1,673    2    7    4.4    $ 11.13    $ 2.54    $ 10.14    3    26    6.7    $ 41.58    $ 6.25    $ 13.64    1    3    2.0    $ 9.57    $ 4.79    $ 14.00

Dallas Properties

   3,693    2    12    5.0    $ 6.83    $ 1.37    $ 8.71    2    6    4.7    $ 15.09    $ 3.22    $ 12.01    3    93    11.5    $ 38.01    $ 3.31    $ 9.05

Fort Worth Properties

   1,025    4    13    3.5    $ 4.88    $ 1.38    $ 9.99    1    1    5.0    $ 4.05    $ 0.81    $ 9.82    0    0    0.0    $ 0.00    $ 0.00    $ 0.00

Northern Virginia Properties

   2,837    4    12    4.2    $ 14.10    $ 3.33    $ 14.90    2    2    3.1    $ 10.53    $ 3.36    $ 15.18    2    78    5.2    $ 22.28    $ 4.32    $ 16.06

Suburban Maryland

   1,263    1    3    3.0    $ 0.88    $ 0.29    $ 11.19    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    3    26    8.0    $ 39.14    $ 4.89    $ 18.85
    
  
  
  
  

  

  

  
  
  
  

  

  

  
  
  
  

  

  

Subtotal - Office Properties

   16,255    33    210    4.4    $ 13.31    $ 3.03    $ 12.51    11    53    5.1    $ 24.14    $ 4.72    $ 13.96    22    233    7.6    $ 28.26    $ 3.72    $ 13.32
    
  
  
  
  

  

  

  
  
  
  

  

  

  
  
  
  

  

  

Industrial Properties

                                                                                                                

Los Angeles Properties

   1,253    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    1    146    0.1    $ 0.02    $ 0.02    $ 2.06

San Diego Properties

   268    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00

Chicago Properties

   682    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00
    
  
  
  
  

  

  

  
  
  
  

  

  

  
  
  
  

  

  

Subtotal - Industrial Properties

   2,203    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    0    0    0.0    $ 0.00    $ 0.00    $ 0.00    1    146    0.1    $ 0.02    $ 0.02    $ 2.06
    
  
  
  
  

  

  

  
  
  
  

  

  

  
  
  
  

  

  

Total Properties

   18,458    33    210    4.4                         11    53    5.1                         23    379    4.7                     
    
  
  
  
                       
  
  
                       
  
  
                    

 

Note: Square footage shown at Prentiss’ ownership percentage. Straight-lined Net Rent represents base rent straight-lined over the term of the lease, net of any operating cost recovery portion of base rent.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 20


 

Summary of Land Held for Future Development

Quarter Ended March 31, 2005

(in thousands, except acres)

 

Project


  

Market


   Acres

    Buildable
Square Feet


   Month of
Acquisition


   Cost
Basis (1)


  

Comments


Land for Office Development                                 
Park West Commerce Center    Dallas/Fort Worth    7.400     160    Jun-97    $ 1,449    Adjacent to IBM Call Center and Lakeview Center.
Park West C-1    Dallas/Fort Worth    4.700     350    Jun-97      1,851    Adjacent to Park West C-2.
Oakland B Site    San Francisco Bay Area    0.867     300    Mar-98      2,312    Adjacent to World Savings Center in Lake Merritt Financial District.
WestPoint II    Dallas/Fort Worth    5.300     150    Apr-98      2,757    Adjacent to WestPoint I.
Natomas Corporate Center IV    Sacramento    10.933     176    Apr-98      3,484    Within the Natomas Corporate Center office park.
Millennium Center    Dallas/Fort Worth    4.500     89    Sep-98      —      Adjacent to previously developed building. Cost carried by developed bldg.
South Lake at Dulles Corner    Metro. Washington, DC    7.476     265    Dec-00      11,173    Adjacent to Park West at Dulles Corner.
The Park at Barton Creek    Austin    20.630     211    Jun-01      5,168    Located in Southwest Austin near Barton Skyway.
Westlake at Dulles Corner II    Metro. Washington, DC    see note  (2)   200    Jul-01      1,113    Adjacent to Park West at Dulles Corner.
Two Kaiser Plaza (see note 3)    San Francisco Bay Area    1.025     300    Dec-03      6,061    Adjacent to the Ordway in Lake Merritt Financial District.
Cityplace    Dallas/Fort Worth    3.000     600    May-04      1,900    Adjacent to Cityplace.
Great America Parkway    Silicon Valley    see note  (2)   230    May-04      6,670    Adjacent to 5500 Great America Parkway.
Gateway at Torrey Hills    San Diego    7.700     200    Jul-04      15,146    Located in Del Mar Heights.
         

 
  
  

    

Total Land Held for Future Development

        73.531     3,231         $ 59,084     
         

 
  
  

    

 

NOTES:   In addition to the land listed above, the Company owns 5.7 acres which can accommodate a 147,000 sf expansion of its 16801 S. Exchange Industrial Property in Chicago.

 

    The Company also entered into a contract on October 8, 2004 to purchase approximately .6 acres of land in Northern California.

 

(1) - The cost basis includes purchase price plus development costs. Interest and carry cost are not capitalized.

 

(2) - Not yet subdivided.

 

(3) - Purchase price includes the right to lease spaces in a parking structure.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 21


 

Summary of Development Activity

Quarter Ended March 31, 2005

(in thousands)

 

Currently Under Construction

 

Project


   Market

   Square
Feet


   Start
Date


   Shell
Completion
Date


   %
Leased


    % Leased
&
Committe


    Estimated
Cost


   Cost-to -
Date


   Projected
Stabilized
Cash on
Cash
Return


 

High Bluff at Del Mar

   San Diego    158    Jun-04    Jul-05    50 %   63 %   $ 48,064    $ 28,963    8.8 %
         
            

 

 

  

  

Office Developments in Process

        158              50 %   63 %   $ 48,064    $ 28,963    8.8 %
         
            

 

 

  

  

 

NOTES:   - The company owns 70% of this consolidated joint venture.

 

       - Additional information on this project is provided on the following page.

 

       - Leasing figures are updated through April 18, 2005.

 

       - Capitalized interest for the quarter totaled approximately $334,000 and is presented at 100%.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 22


Definitions of Non-GAAP Financial Measures

 

We use non-GAAP financial measures in our filings and other public disclosures. These non-GAAP financial measures are defined below.

 

Funds from Operations (FFO)

 

FFO is a widely recognized measure of REIT operating performance. FFO is a non-GAAP financial measure and as defined by the National Association of Real Estate Investment Trusts, means net income, computed in accordance with GAAP excluding extraordinary items, as defined by GAAP, and gains (or losses) from sales of property, plus depreciation and amortization on real estate assets, and after adjustments for unconsolidated partnerships, joint ventures and subsidiaries. We believe that FFO is helpful to investors and our management as a measure of our operating performance because it excludes depreciation and amortization, gains and losses from property dispositions, and extraordinary items, and, as a result, when compared year over year, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, providing perspective not immediately apparent from net income. In addition, we believe that FFO provides useful information to the investment community about our financial performance when compared to other REITs since FFO is generally recognized as the industry standard for reporting the operating performance of REITs. However, our FFO may not be comparable to FFO reported by other REITs that do not define FFO exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, FFO should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto. We believe that net income is the most directly comparable GAAP financial measure to FFO. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

 

FFO does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs that could materially impact our results of operations.

 

Adjusted FFO

 

Adjusted FFO is a non-GAAP financial measure that we define as FFO (defined above) excluding (adding back) impairment losses related to real estate assets and debt defeasance losses related to real estate assets sold. We believe that our Adjusted FFO provides useful information to the investment community about our financial performance when compared to other REITs as it eliminates FFO differences caused by the timing and classification within the income statement of real estate and real estate debt related losses. However, our Adjusted FFO may not be comparable to FFO or Adjusted FFO reported by other REITs that do not define FFO or Adjusted FFO exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, Adjusted FFO should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto. We believe that net income is the most directly comparable GAAP financial measure to Adjusted FFO. Adjusted FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

 

Like FFO, our Adjusted FFO does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs that could materially impact our results of operations.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 32


Funds Available for Distribution (FAD)

 

FAD is a non-GAAP financial measure that we define as FFO (as defined above) less non-incremental capital expenditures, straight-line rent adjustments, rental income adjustments recognized in accordance with Statement of Financial Accounting Standards No. 141 (SFAS No. 141) and the amortization of financing costs. We believe that FAD is helpful to investors and our management as a measure of the performance of an equity REIT because, along with cash flow from operating activities, financing and investing activities, it provides investors with an indication of our ability to incur and service debt and to fund dividends and other cash needs. Our FAD may not be comparable to FAD reported by other REITs that do not define FAD exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, FAD should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto.

 

We believe that net income is the most directly comparable GAAP financial measure to FAD. FAD does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

 

Net Operating Income (NOI)

 

NOI is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus depreciation and amortization, interest expense, losses from property dispositions, including impairment losses, and extraordinary expense items less gains from property dispositions and extraordinary income items. Our management uses NOI internally as a performance measure and believes NOI is useful to investors as a performance measure because NOI reflects only those income and expense items that are incurred at the property level and is therefore a useful measure for evaluating a property’s performance. Using NOI on a comparative basis, it allows investors to evaluate property level performance to: (a) hold management accountable for maintaining or increasing property level NOI from period to period and (b) compare the operating performance of our properties in a given market with the operating performance of other real estate companies in the same market, and consequently allocate their own investment capital accordingly. Our management uses NOI to evaluate regional property level performance and to make decisions about resource allocations. Investors are able to evaluate whether management has appropriately allocated or re-allocated resources to better performing properties.

 

Further, we use NOI internally as a performance measure and believe NOI is useful to investors as a performance measure because, when compared year over year, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition and development activity, and general and administrative expenses, on an un-leveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. Certain items such as interest expense, while included in net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. In addition, it is useful to our management and investors that depreciation and amortization are excluded from NOI because historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time, and, instead, real estate values have historically risen or fallen with market conditions.

 

NOI presented by us may not be comparable to NOI reported by other REITs that do not define NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 33


Same Store NOI and Same Store Growth

 

Same store NOI is similar to property level NOI, but excludes termination fees, which are generally onetime payments that may distort results of operations for comparable periods and straight-line rent adjustments, which eliminates the impact of rental rate increases or decreases from in-place leases. Same Store Growth represents the percentage change in property level NOI for properties that have been fully operational for two comparable reporting periods. Same Store Growth allows analysts, investors and management to analyze property operations and evaluate the growth trend of our portfolio. We use Same Store NOI internally as a performance measure and believe Same Store NOI is useful to investors as a performance measure because, when compared period over period, Same Store NOI reflects the impact on operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income.

 

Same Store NOI presented by us may not be comparable to Same Store NOI reported by other REITs that do not define Same Store NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, Same Store NOI should be examined in conjunction with our other performance measures including net income as presented in our consolidated financial statements and notes thereto. Same Store NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

 

Supplemental Operating and
Financial Data
  Prentiss Properties Trust  

1st Quarter 2005

Page 34