o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
By: | /s/ Gregg D. Adzema |
Office Leasing Statistics | |
Gregg D. Adzema | Marli Quesinberry | |
Executive Vice President and | Director, Investor Relations and | |
Chief Financial Officer | Corporate Communications | |
(404) 407-1116 | (404) 407-1898 | |
greggadzema@cousinsproperties.com | marliquesinberry@cousinsproperties.com |
• | Funds From Operations for the fourth quarter were $0.18 per share, up from $0.14 in the prior year. |
• | Same property net operating income for the fourth quarter was up 3.7% over the prior year. |
• | Leased or renewed 442,000 square feet of office and retail space during the fourth quarter. |
• | Same property occupancy for the fourth quarter was 90.4%, up from 89.0% in the prior year. |
• | Cash-basis second generation net effective rent for the fourth quarter was up 11.3% over the prior year. |
• | Sold the Inhibitex office building for $8.3 million prior to the allocation of free rent credits, generating a gain of $3.0 million. |
• | Commenced construction on Emory Point Phase II, which will consist of 307 apartments and 43,000 square feet of retail space with a total projected cost of $73.3 million. |
• | Closed a construction loan on Emory Point Phase II, which will provide up to $46.0 million at a floating rate of LIBOR plus 1.85% and a term of 3 years with two one-year extension options. |
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||||
Rental property revenues | $ | 76,620 | $ | 30,486 | $ | 194,420 | $ | 114,208 | |||||||
Fee income | 1,959 | 4,812 | 10,891 | 17,797 | |||||||||||
Other | 941 | 1,036 | 5,430 | 4,841 | |||||||||||
79,520 | 36,334 | 210,741 | 136,846 | ||||||||||||
Costs and expenses: | |||||||||||||||
Rental property operating expenses | 35,386 | 13,892 | 90,498 | 50,329 | |||||||||||
Reimbursed expenses | 850 | 3,095 | 5,215 | 7,063 | |||||||||||
General and administrative expenses | 4,684 | 5,685 | 21,940 | 23,208 | |||||||||||
Interest expense | 7,384 | 5,997 | 21,709 | 23,933 | |||||||||||
Impairment losses | — | — | — | 488 | |||||||||||
Depreciation and amortization | 31,590 | 10,658 | 76,277 | 39,424 | |||||||||||
Separation expenses | — | 1,118 | 520 | 1,985 | |||||||||||
Acquisition and related costs | 57 | 299 | 7,484 | 793 | |||||||||||
Other | 436 | 803 | 3,693 | 5,144 | |||||||||||
80,387 | 41,547 | 227,336 | 152,367 | ||||||||||||
Loss on extinguishment of debt | — | — | — | (94 | ) | ||||||||||
Loss from continuing operations before taxes, unconsolidated joint ventures, and sale of investment properties | (867 | ) | (5,213 | ) | (16,595 | ) | (15,615 | ) | |||||||
Benefit (provision) for income taxes from operations | 26 | 30 | 23 | (91 | ) | ||||||||||
Income from unconsolidated joint ventures | 1,463 | 25,042 | 67,325 | 39,258 | |||||||||||
Income from continuing operations before gain on sale of investment properties | 622 | 19,859 | 50,753 | 23,552 | |||||||||||
Gain (loss) on sale of investment properties | (72 | ) | 3,907 | 61,288 | 4,053 | ||||||||||
Income from continuing operations | 550 | 23,766 | 112,041 | 27,605 | |||||||||||
Income from discontinued operations: | |||||||||||||||
Income from discontinued operations | 577 | 1,799 | 3,299 | 1,907 | |||||||||||
Gain on sale of investment properties | 2,938 | 10,200 | 11,489 | 18,407 | |||||||||||
3,515 | 11,999 | 14,788 | 20,314 | ||||||||||||
Net income | 4,065 | 35,765 | 126,829 | 47,919 | |||||||||||
Net income attributable to noncontrolling interests | (167 | ) | (2,450 | ) | (5,068 | ) | (2,191 | ) | |||||||
Net income attributable to controlling interests | 3,898 | 33,315 | 121,761 | 45,728 | |||||||||||
Preferred share original issuance costs | — | — | (2,656 | ) | — | ||||||||||
Dividends to preferred stockholders | (1,777 | ) | (3,227 | ) | (10,008 | ) | (12,907 | ) | |||||||
Net income available to common stockholders | $ | 2,121 | $ | 30,088 | $ | 109,097 | $ | 32,821 | |||||||
Per common share information — basic and diluted: | |||||||||||||||
Income (loss) from continuing operations attributable to controlling interest | $ | (0.01 | ) | $ | 0.17 | $ | 0.66 | $ | 0.12 | ||||||
Income from discontinued operations | 0.02 | 0.12 | 0.10 | 0.20 | |||||||||||
Net income available to common stockholders | $ | 0.01 | $ | 0.29 | $ | 0.76 | $ | 0.32 | |||||||
Weighted average shares — basic | 189,665 | 104,109 | 144,255 | 104,117 | |||||||||||
Weighted average shares — diluted | 189,853 | 104,132 | 144,420 | 104,125 | |||||||||||
Dividends declared per common share | $ | 0.045 | $ | 0.045 | $ | 0.180 | $ | 0.180 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Income Available to Common Stockholders | $ | 2,121 | $ | 30,088 | $ | 109,097 | $ | 32,821 | |||||||
Depreciation and amortization of real estate assets: | |||||||||||||||
Consolidated properties | 31,401 | 10,426 | 75,524 | 38,349 | |||||||||||
Discontinued properties | 495 | 1,097 | 3,083 | 13,479 | |||||||||||
Share of unconsolidated joint ventures | 2,985 | 2,584 | 13,434 | 10,215 | |||||||||||
Impairment loss on depreciable investment property, net of amounts attributable to noncontrolling interests | — | 1,558 | — | 11,748 | |||||||||||
(Gain) loss on sale of depreciated properties: | |||||||||||||||
Consolidated properties | 96 | (158 | ) | (60,587 | ) | (334 | ) | ||||||||
Discontinued properties | (2,893 | ) | (10,125 | ) | (6,469 | ) | (10,948 | ) | |||||||
Share of unconsolidated joint ventures | 77 | (23,153 | ) | (60,345 | ) | (30,662 | ) | ||||||||
Other | 7 | 1,850 | 3,397 | 1,824 | |||||||||||
Funds From Operations Available to Common Stockholders | $ | 34,289 | $ | 14,167 | $ | 77,134 | $ | 66,492 | |||||||
Per Common Share — Basic and Diluted: | |||||||||||||||
Net Income Available | $ | 0.01 | $ | 0.29 | $ | 0.76 | $ | 0.32 | |||||||
Funds From Operations | $ | 0.18 | $ | 0.14 | $ | 0.53 | $ | 0.64 | |||||||
Weighted Average Shares — Basic | 189,665 | 104,109 | 144,255 | 104,117 | |||||||||||
Weighted Average Shares — Diluted | 189,853 | 104,132 | 144,420 | 104,125 |
December 31, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
Assets: | |||||||
Real estate assets: | |||||||
Operating properties, net of accumulated depreciation of $235,707 and $255,128 in 2013 and 2012, respectively | $ | 1,828,437 | $ | 669,652 | |||
Projects under development, net of accumulated depreciation of $0 and $183 in 2013 and 2012, respectively | 21,681 | 25,209 | |||||
Land | 35,053 | 42,187 | |||||
Other | — | 151 | |||||
1,885,171 | 737,199 | ||||||
Operating properties and related assets held for sale, net of accumulated depreciation of $21,444 and $2,947 in 2013 and 2012, respectively | 24,554 | 1,866 | |||||
Cash and cash equivalents | 975 | 176,892 | |||||
Restricted cash | 2,810 | 2,852 | |||||
Notes and accounts receivable, net of allowance for doubtful accounts of $1,827 and $1,743 in 2013 and 2012, respectively | 11,778 | 9,972 | |||||
Deferred rents receivable | 39,969 | 39,378 | |||||
Investment in unconsolidated joint ventures | 107,082 | 97,868 | |||||
Intangible assets, net of accumulated amortization of $37,544 and $15,153 in 2013 and 2012, respectively | 170,973 | 33,280 | |||||
Other assets | 29,894 | 24,935 | |||||
Total assets | $ | 2,273,206 | $ | 1,124,242 | |||
Liabilities: | |||||||
Notes payable | $ | 630,094 | $ | 425,410 | |||
Accounts payable and accrued expenses | 76,668 | 34,751 | |||||
Deferred income | 25,754 | 11,888 | |||||
Intangible liabilities, net of accumulated amortization of $6,323 and $13,986 in 2013 and 2012, respectively | 66,476 | 7,520 | |||||
Other liabilities | 15,242 | 1,720 | |||||
Total liabilities | 814,234 | 481,289 | |||||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
Stockholders' investment: | |||||||
Preferred stock, 20,000,000 shares authorized, $1 par value: | |||||||
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 0 and 2,993,090 shares issued and outstanding in 2013 and 2012, respectively | — | 74,827 | |||||
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2013 and 2012 | 94,775 | 94,775 | |||||
Common stock, $1 par value, 250,000,000 shares authorized, 193,236,454 and 107,660,080 shares issued in 2013 and 2012, respectively | 193,236 | 107,660 | |||||
Additional paid-in capital | 1,420,951 | 690,024 | |||||
Treasury stock at cost, 3,570,082 shares in 2013 and 2012 | (86,840 | ) | (86,840 | ) | |||
Distributions in excess of cumulative net income | (164,721 | ) | (260,104 | ) | |||
Total stockholders' investment | 1,457,401 | 620,342 | |||||
Nonredeemable noncontrolling interests | 1,571 | 22,611 | |||||
Total equity | 1,458,972 | 642,953 | |||||
Total liabilities and equity | $ | 2,273,206 | $ | 1,124,242 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Operating Income - Consolidated Properties | |||||||||||||||
Rental property revenues | $ | 76,620 | $ | 30,486 | $ | 194,420 | $ | 114,208 | |||||||
Rental property expenses | (35,386 | ) | (13,892 | ) | (90,498 | ) | (50,329 | ) | |||||||
Net Operating Income - Consolidated Properties | 41,234 | 16,594 | 103,922 | 63,879 | |||||||||||
Net Operating Income - Discontinued Operations | |||||||||||||||
Rental property revenues | 1,742 | 5,825 | 10,552 | 33,918 | |||||||||||
Rental property expenses | (666 | ) | (1,775 | ) | (4,157 | ) | (10,936 | ) | |||||||
Net Operating Income - Discontinued Operations | 1,076 | 4,050 | 6,395 | 22,982 | |||||||||||
Net Operating Income - Unconsolidated Joint Ventures | 6,196 | 5,509 | 27,763 | 23,596 | |||||||||||
Total Net Operating Income | $ | 48,506 | $ | 26,153 | $ | 138,080 | $ | 110,457 | |||||||
Net Operating Income: | |||||||||||||||
Same Property | $ | 15,157 | $ | 14,611 | $ | 60,621 | $ | 57,942 | |||||||
Non-Same Property | 33,349 | 11,542 | 77,459 | 52,515 | |||||||||||
Net Operating Income | $ | 48,506 | $ | 26,153 | $ | 138,080 | $ | 110,457 |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
Property Statistics | ||||||||||||||||||||||
Number of Operating Properties | 35 | 35 | 32 | 34 | 30 | 30 | 31 | 33 | 24 | 23 | 23 | |||||||||||
Rentable Square Feet (in thousands) | 12,572 | 12,573 | 11,688 | 12,678 | 11,827 | 11,827 | 13,111 | 13,546 | 15,768 | 15,723 | 15,723 | |||||||||||
Leverage Ratios (1) | ||||||||||||||||||||||
Debt/Total Market Capitalization | 45.7 | % | 42.0 | % | 38.7 | % | 40.7 | % | 36.5 | % | 36.5 | % | 32.3 | % | 32.1 | % | 29.9 | % | 29.5 | % | 29.5 | % |
Debt/Total Undepreciated Assets | 37.3 | % | 37.9 | % | 35.7 | % | 37.7 | % | 35.3 | % | 35.3 | % | 34.6 | % | 33.1 | % | 30.8 | % | 30.0 | % | 30.0 | % |
Debt + Preferred/Total Market Capitalization | 56.7 | % | 52.2 | % | 49.4 | % | 50.8 | % | 46.8 | % | 46.8 | % | 41.2 | % | 37.0 | % | 33.2 | % | 32.8 | % | 32.8 | % |
Debt + Preferred/Total Undepreciated Assets | 46.3 | % | 47.2 | % | 45.5 | % | 47.0 | % | 45.4 | % | 45.4 | % | 44.2 | % | 38.1 | % | 34.1 | % | 33.3 | % | 33.3 | % |
Coverage Ratios (1) | ||||||||||||||||||||||
Interest Coverage | 3.10 | 3.32 | 3.41 | 3.86 | 3.54 | 3.53 | 3.28 | 4.13 | 3.98 | 4.92 | 4.15 | |||||||||||
Fixed Charges Coverage | 1.91 | 1.93 | 1.94 | 2.22 | 2.05 | 2.03 | 1.86 | 2.36 | 2.73 | 3.51 | 2.64 | |||||||||||
Debt/Annualized EBITDA | 6.45 | 7.01 | 6.53 | 6.56 | 6.00 | 6.00 | 7.01 | 5.73 | 7.59 | 4.72 | 4.72 | |||||||||||
Dividend Ratios (1) | ||||||||||||||||||||||
FFO Payout Ratio | (24.3 | )% | 34.8 | % | 35.6 | % | 18.3 | % | 33.1 | % | 28.2 | % | 40.9 | % | 38.4 | % | 49.6 | % | 24.9 | % | 35.3 | % |
FFO Before Certain Charges Payout Ratio | 34.6 | % | 36.9 | % | 35.2 | % | 28.7 | % | 30.2 | % | 32.4 | % | 40.1 | % | 31.7 | % | 42.5 | % | 24.9 | % | 32.7 | % |
FAD Payout Ratio | (17.4 | )% | 54.7 | % | 59.3 | % | 24.8 | % | 57.0 | % | 43.0 | % | 79.5 | % | 67.7 | % | 85.3 | % | 42.3 | % | 61.6 | % |
FAD Before Certain Charges Payout Ratio | 78.7 | % | 60.3 | % | 58.2 | % | 49.0 | % | 49.0 | % | 53.6 | % | 76.5 | % | 49.3 | % | 66.4 | % | 42.3 | % | 54.2 | % |
Operations Ratios (1) | ||||||||||||||||||||||
General and Administrative Expenses/Revenues (2) | 12.7 | % | 14.0 | % | 12.2 | % | 9.8 | % | 13.2 | % | 12.2 | % | 14.7 | % | 10.0 | % | 12.4 | % | 5.8 | % | 9.9 | % |
Annualized General and Administrative Expenses/Total Undepreciated Assets | 1.3 | % | 1.4 | % | 1.3 | % | 1.2 | % | 1.3 | % | 1.3 | % | 1.4 | % | 1.0 | % | 0.9 | % | 0.7 | % | 0.7 | % |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
Net Operating Income | ||||||||||||||||||||||
Office | 75,388 | 20,598 | 20,013 | 20,451 | 19,845 | 80,907 | 21,837 | 23,894 | 30,308 | 46,464 | 122,503 | |||||||||||
Retail | 31,583 | 8,658 | 7,415 | 7,168 | 6,188 | 29,429 | 4,290 | 4,302 | 3,663 | 1,023 | 13,278 | |||||||||||
Other | 3,583 | 1 | — | — | 120 | 121 | 43 | 376 | 861 | 1,019 | 2,299 | |||||||||||
Total Net Operating Income | 110,554 | 29,257 | 27,428 | 27,619 | 26,153 | 110,457 | 26,170 | 28,572 | 34,832 | 48,506 | 138,080 | |||||||||||
Sales Less Cost of Sales | ||||||||||||||||||||||
Land | 5,236 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 725 | 29 | 1,273 | |||||||||||
Other | 2,250 | (1 | ) | 53 | — | 257 | 309 | 168 | (8 | ) | (6 | ) | 37 | 191 | ||||||||
Total Sales Less Cost of Sales | 7,486 | 384 | 142 | 378 | 4,320 | 5,224 | 411 | 268 | 719 | 66 | 1,464 | |||||||||||
Fee Income | 13,821 | 2,856 | 2,786 | 7,343 | 4,812 | 17,797 | 3,580 | 2,931 | 2,420 | 1,959 | 10,890 | |||||||||||
Third Party Management and Leasing Revenues | 19,359 | 4,711 | 6,029 | 4,789 | 836 | 16,365 | 74 | 2 | — | — | 76 | |||||||||||
Other Income | 2,204 | 1,507 | 112 | 3,329 | 205 | 5,153 | 282 | 2,064 | 303 | 879 | 3,528 | |||||||||||
Total Fee and Other Income | 35,384 | 9,074 | 8,927 | 15,461 | 5,853 | 39,315 | 3,936 | 4,997 | 2,723 | 2,838 | 14,494 | |||||||||||
Gain on Sale of Third Party Management and Leasing Business | — | — | — | 7,384 | 75 | 7,459 | — | — | 4,531 | 45 | 4,576 | |||||||||||
Third Party Management and Leasing Expenses | (16,585 | ) | (4,300 | ) | (4,607 | ) | (4,260 | ) | (508 | ) | (13,675 | ) | (53 | ) | (27 | ) | (14 | ) | (3 | ) | (97 | ) |
Reimbursed Expenses | (6,208 | ) | (1,376 | ) | (1,357 | ) | (1,235 | ) | (3,095 | ) | (7,063 | ) | (1,910 | ) | (1,359 | ) | (1,097 | ) | (850 | ) | (5,216 | ) |
Separation Expenses | (197 | ) | (213 | ) | (79 | ) | (574 | ) | (1,118 | ) | (1,985 | ) | — | — | (520 | ) | — | (520 | ) | |||
General and Administrative Expenses | (24,166 | ) | (6,623 | ) | (5,646 | ) | (5,255 | ) | (5,684 | ) | (23,208 | ) | (6,069 | ) | (4,552 | ) | (6,635 | ) | (4,684 | ) | (21,940 | ) |
Loss on Debt Extinguishment | (74 | ) | (94 | ) | — | — | — | (94 | ) | — | — | — | — | — | ||||||||
Interest Expense | (32,515 | ) | (7,447 | ) | (6,937 | ) | (6,759 | ) | (7,011 | ) | (28,154 | ) | (6,645 | ) | (6,573 | ) | (7,224 | ) | (9,230 | ) | (29,672 | ) |
Impairment Loss | (129,134 | ) | — | — | (488 | ) | — | (488 | ) | — | — | — | — | — | ||||||||
Other Expenses | (6,990 | ) | (1,551 | ) | (1,232 | ) | (3,040 | ) | (1,388 | ) | (7,209 | ) | (946 | ) | (1,071 | ) | (8,092 | ) | (498 | ) | (10,607 | ) |
Income Tax Benefit (Provision) | 186 | (27 | ) | (33 | ) | (60 | ) | 30 | (90 | ) | (1 | ) | (1 | ) | (1 | ) | 26 | 23 | ||||
Depreciation and Amortization of Non-Real Estate Assets | (1,708 | ) | (369 | ) | (228 | ) | (261 | ) | (232 | ) | (1,090 | ) | (205 | ) | (213 | ) | (219 | ) | (150 | ) | (787 | ) |
Preferred Stock Dividends and Original Issuance Costs | (12,907 | ) | (3,227 | ) | (3,227 | ) | (3,226 | ) | (3,227 | ) | (12,907 | ) | (3,227 | ) | (5,883 | ) | (1,777 | ) | (1,777 | ) | (12,664 | ) |
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
Weighted Average Shares - Basic | 103,651 | 104,000 | 104,165 | 104,193 | 104,109 | 104,117 | 104,119 | 118,661 | 163,426 | 189,665 | 144,255 | |||||||||||
Weighted Average Shares - Diluted | 103,655 | 104,000 | 104,165 | 104,203 | 104,132 | 104,125 | 104,252 | 118,845 | 163,603 | 189,853 | 144,420 | |||||||||||
FFO per Share - Basic and Diluted | (0.74 | ) | 0.13 | 0.13 | 0.25 | 0.14 | 0.64 | 0.11 | 0.12 | 0.11 | 0.18 | 0.53 |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
NET OPERATING INCOME | ||||||||||||||||||||||
OFFICE: | ||||||||||||||||||||||
CONSOLIDATED PROPERTIES: | ||||||||||||||||||||||
GREENWAY PLAZA | — | — | — | — | — | — | — | — | 5,103 | 19,503 | 24,606 | |||||||||||
POST OAK CENTRAL | — | — | — | — | — | — | 2,459 | 4,328 | 4,498 | 4,308 | 15,593 | |||||||||||
191 PEACHTREE TOWER | 14,044 | 3,789 | 3,745 | 3,899 | 3,789 | 15,222 | 4,064 | 4,021 | 3,982 | 3,973 | 16,040 | |||||||||||
THE AMERICAN CANCER SOCIETY CENTER | 11,571 | 2,872 | 2,581 | 2,744 | 2,832 | 11,029 | 2,881 | 2,932 | 2,911 | 2,815 | 11,539 | |||||||||||
PROMENADE | 693 | 2,014 | 2,324 | 2,124 | 2,286 | 8,748 | 2,485 | 2,235 | 2,453 | 2,395 | 9,568 | |||||||||||
NORTH POINT CENTER EAST | 6,363 | 1,254 | 1,269 | 1,142 | 1,521 | 5,186 | 1,373 | 1,452 | 1,508 | 1,576 | 5,909 | |||||||||||
816 CONGRESS AVENUE | — | — | — | — | — | — | — | 1,098 | 1,498 | 1,433 | 4,029 | |||||||||||
MERIDIAN MARK PLAZA | 3,863 | 1,015 | 996 | 1,013 | 1,009 | 4,033 | 1,037 | 1,011 | 1,056 | 1,007 | 4,111 | |||||||||||
2100 ROSS AVENUE | — | — | — | 876 | 635 | 1,511 | 1,101 | 1,305 | 965 | 1,249 | 4,620 | |||||||||||
777 MAIN | — | — | — | — | — | — | — | — | 699 | 2,355 | 3,054 | |||||||||||
THE POINTS AT WATERVIEW | 1,824 | 504 | 557 | 516 | 488 | 2,065 | 505 | 464 | 449 | 458 | 1,876 | |||||||||||
TERMINUS 100 (2) | 15,537 | 4,063 | 4,039 | 3,922 | 3,785 | 15,809 | 1,627 | (1 | ) | 58 | 11 | 1,695 | ||||||||||
OTHER | (6 | ) | (5 | ) | (30 | ) | (3 | ) | (8 | ) | (46 | ) | (7 | ) | (4 | ) | (5 | ) | — | (16 | ) | |
SUBTOTAL - OFFICE CONSOLIDATED | 53,889 | 15,506 | 15,481 | 16,233 | 16,337 | 63,557 | 17,525 | 18,841 | 25,175 | 41,083 | 102,624 | |||||||||||
UNCONSOLIDATED PROPERTIES: | ||||||||||||||||||||||
TERMINUS 100 (2) | — | — | — | — | — | — | 1,208 | 1,821 | 1,938 | 1,925 | 6,892 | |||||||||||
TERMINUS 200 (3) | 463 | 358 | 374 | 439 | 374 | 1,545 | 898 | 1,144 | 1,093 | 1,143 | 4,278 | |||||||||||
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER | 3,822 | 970 | 920 | 950 | 918 | 3,758 | 981 | 956 | 968 | 969 | 3,874 | |||||||||||
GATEWAY VILLAGE (4) | 1,208 | 302 | 302 | 302 | 302 | 1,208 | 302 | 302 | 302 | 302 | 1,208 | |||||||||||
OTHER (5) | 8,099 | 2,031 | 1,675 | 1,519 | 1,019 | 6,244 | (16 | ) | (17 | ) | (16 | ) | (12 | ) | (61 | ) | ||||||
SUBTOTAL - OFFICE UNCONSOLIDATED | 13,592 | 3,661 | 3,271 | 3,210 | 2,613 | 12,755 | 3,373 | 4,206 | 4,285 | 4,327 | 16,191 | |||||||||||
DISCONTINUED OPERATIONS (6) | 7,907 | 1,431 | 1,261 | 1,008 | 895 | 4,595 | 939 | 847 | 848 | 1,054 | 3,688 | |||||||||||
TOTAL - OFFICE NET OPERATING INCOME | 75,388 | 20,598 | 20,013 | 20,451 | 19,845 | 80,907 | 21,837 | 23,894 | 30,308 | 46,464 | 122,503 | |||||||||||
RETAIL: | ||||||||||||||||||||||
CONSOLIDATED PROPERTIES: | ||||||||||||||||||||||
MAHAN VILLAGE | — | — | — | 55 | 259 | 314 | 390 | 389 | 363 | 454 | 1,596 | |||||||||||
OTHER | (3 | ) | — | 4 | 2 | — | 6 | (2 | ) | 1 | 1 | (303 | ) | (303 | ) | |||||||
SUBTOTAL - RETAIL CONSOLIDATED | (3 | ) | — | 4 | 57 | 259 | 320 | 388 | 390 | 364 | 151 | 1,293 | ||||||||||
UNCONSOLIDATED PROPERTIES: | ||||||||||||||||||||||
CW INVESTMENTS (7) | 2,410 | 610 | 610 | 591 | 587 | 2,398 | 580 | 578 | 579 | 568 | 2,305 | |||||||||||
EMORY POINT | — | — | — | (9 | ) | 19 | 10 | 274 | 344 | 303 | 290 | 1,211 | ||||||||||
OTHER (8) | 8,256 | 1,998 | 2,056 | 2,089 | 2,168 | 8,311 | 2,177 | 2,078 | 1,510 | (9 | ) | 5,756 | ||||||||||
SUBTOTAL - RETAIL UNCONSOLIDATED | 10,666 | 2,608 | 2,666 | 2,671 | 2,774 | 10,719 | 3,031 | 3,000 | 2,392 | 849 | 9,272 | |||||||||||
DISCONTINUED OPERATIONS (9) | 20,920 | 6,050 | 4,745 | 4,440 | 3,155 | 18,390 | 871 | 912 | 907 | 23 | 2,713 | |||||||||||
TOTAL - RETAIL NET OPERATING INCOME | 31,583 | 8,658 | 7,415 | 7,168 | 6,188 | 29,429 | 4,290 | 4,302 | 3,663 | 1,023 | 13,278 | |||||||||||
OTHER: | ||||||||||||||||||||||
UNCONSOLIDATED PROPERTIES: | ||||||||||||||||||||||
EMORY POINT RESIDENTIAL | — | — | — | — | 122 | 122 | 43 | 376 | 861 | 1,020 | 2,300 | |||||||||||
SUBTOTAL - OTHER UNCONSOLIDATED | — | — | — | — | 122 | 122 | 43 | 376 | 861 | 1,020 | 2,300 | |||||||||||
DISCONTINUED OPERATIONS OTHER (10) | 3,583 | 1 | — | — | (2 | ) | (1 | ) | — | — | — | (1 | ) | (1 | ) | |||||||
TOTAL - OTHER NET OPERATING INCOME | 3,583 | 1 | — | — | 120 | 121 | 43 | 376 | 861 | 1,019 | 2,299 | |||||||||||
TOTAL NET OPERATING INCOME | 110,554 | 29,257 | 27,428 | 27,619 | 26,153 | 110,457 | 26,170 | 28,572 | 34,832 | 48,506 | 138,080 | |||||||||||
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
SALES LESS COST OF SALES | ||||||||||||||||||||||
LAND SALES LESS COST OF SALES - CONSOLIDATED | 3,382 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 610 | 29 | 1,158 | |||||||||||
LAND SALES LESS COST OF SALES - UNCONSOLIDATED | 1,854 | — | — | — | — | — | — | — | 115 | — | 115 | |||||||||||
SUBTOTAL - LAND SALES LESS COST OF SALES | 5,236 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 725 | 29 | 1,273 | |||||||||||
OTHER - CONSOLIDATED | 2,177 | — | 55 | — | 226 | 281 | 158 | — | — | 37 | 195 | |||||||||||
OTHER - UNCONSOLIDATED | 73 | (1 | ) | (2 | ) | — | 31 | 28 | 10 | (8 | ) | (6 | ) | — | (4 | ) | ||||||
SUBTOTAL - OTHER SALES LESS COST OF SALES | 2,250 | (1 | ) | 53 | — | 257 | 309 | 168 | (8 | ) | (6 | ) | 37 | 191 | ||||||||
TOTAL SALES LESS COST OF SALES | 7,486 | 384 | 142 | 378 | 4,320 | 5,224 | 411 | 268 | 719 | 66 | 1,464 | |||||||||||
FEE INCOME | ||||||||||||||||||||||
DEVELOPMENT FEES | 2,850 | 525 | 640 | 5,278 | 2,616 | 9,059 | 1,335 | 585 | 594 | 588 | 3,102 | |||||||||||
MANAGEMENT FEES (11) | 8,857 | 2,099 | 2,051 | 1,944 | 2,070 | 8,164 | 2,030 | 2,146 | 1,793 | 1,254 | 7,223 | |||||||||||
LEASING & OTHER FEES | 2,114 | 232 | 95 | 121 | 126 | 574 | 215 | 200 | 33 | 117 | 565 | |||||||||||
TOTAL - FEE INCOME | 13,821 | 2,856 | 2,786 | 7,343 | 4,812 | 17,797 | 3,580 | 2,931 | 2,420 | 1,959 | 10,890 | |||||||||||
THIRD PARTY MANAGEMENT AND LEASING REVENUES | 19,359 | 4,711 | 6,029 | 4,789 | 836 | 16,365 | 74 | 2 | — | — | 76 | |||||||||||
OTHER INCOME | ||||||||||||||||||||||
TERMINATION FEES | 1,549 | 43 | 21 | — | 64 | 128 | 19 | 1,965 | 155 | 813 | 2,952 | |||||||||||
TERMINATION FEES - DISCONTINUED OPERATIONS | 77 | 192 | 13 | 3,232 | 75 | 3,512 | — | — | — | — | — | |||||||||||
INTEREST AND OTHER INCOME | 539 | 1,281 | 84 | 87 | 61 | 1,513 | 259 | 100 | 136 | 66 | 561 | |||||||||||
INTEREST AND OTHER INCOME - DISCONTINUED OPERATIONS | 39 | (9 | ) | (6 | ) | 10 | 5 | — | 4 | (1 | ) | 12 | — | 15 | ||||||||
TOTAL INTEREST INCOME & OTHER | 2,204 | 1,507 | 112 | 3,329 | 205 | 5,153 | 282 | 2,064 | 303 | 879 | 3,528 | |||||||||||
TOTAL FEE AND OTHER INCOME | 35,384 | 9,074 | 8,927 | 15,461 | 5,853 | 39,315 | 3,936 | 4,997 | 2,723 | 2,838 | 14,494 | |||||||||||
GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS | — | — | — | 7,384 | 75 | 7,459 | — | — | 4,531 | 45 | 4,576 | |||||||||||
THIRD PARTY MANAGEMENT AND LEASING EXPENSES | (16,585 | ) | (4,300 | ) | (4,607 | ) | (4,260 | ) | (508 | ) | (13,675 | ) | (53 | ) | (27 | ) | (14 | ) | (3 | ) | (97 | ) |
REIMBURSED EXPENSES | (6,208 | ) | (1,376 | ) | (1,357 | ) | (1,235 | ) | (3,095 | ) | (7,063 | ) | (1,910 | ) | (1,359 | ) | (1,097 | ) | (850 | ) | (5,216 | ) |
SEPARATION EXPENSES | (197 | ) | (213 | ) | (79 | ) | (574 | ) | (1,118 | ) | (1,985 | ) | — | — | (520 | ) | — | (520 | ) | |||
GENERAL AND ADMINISTRATIVE EXPENSES | (24,166 | ) | (6,623 | ) | (5,646 | ) | (5,255 | ) | (5,684 | ) | (23,208 | ) | (6,069 | ) | (4,552 | ) | (6,635 | ) | (4,684 | ) | (21,940 | ) |
LOSS ON DEBT EXTINGUISHMENT | (74 | ) | (94 | ) | — | — | — | (94 | ) | — | — | — | — | — | ||||||||
INTEREST EXPENSE | ||||||||||||||||||||||
CONSOLIDATED DEBT: | ||||||||||||||||||||||
THE AMERICAN CANCER SOCIETY CENTER | (8,979 | ) | (2,230 | ) | (2,223 | ) | (2,242 | ) | (2,237 | ) | (8,932 | ) | (2,183 | ) | (2,200 | ) | (2,219 | ) | (2,211 | ) | (8,813 | ) |
191 PEACHTREE TOWER | — | (28 | ) | (891 | ) | (891 | ) | (891 | ) | (2,701 | ) | (890 | ) | (871 | ) | (861 | ) | (861 | ) | (3,483 | ) | |
UNSECURED CREDIT FACILITY | (6,205 | ) | (1,648 | ) | (777 | ) | (725 | ) | (562 | ) | (3,712 | ) | (546 | ) | (522 | ) | (608 | ) | (584 | ) | (2,260 | ) |
POST OAK CENTRAL | — | — | — | — | — | — | — | — | (565 | ) | (2,053 | ) | (2,618 | ) | ||||||||
MERIDIAN MARK PLAZA | (1,630 | ) | (404 | ) | (403 | ) | (402 | ) | (400 | ) | (1,609 | ) | (399 | ) | (397 | ) | (396 | ) | (395 | ) | (1,587 | ) |
PROMENADE | — | — | — | — | — | — | — | — | (338 | ) | (1,230 | ) | (1,568 | ) | ||||||||
THE POINTS AT WATERVIEW | (958 | ) | (235 | ) | (234 | ) | (232 | ) | (230 | ) | (931 | ) | (228 | ) | (227 | ) | (225 | ) | (223 | ) | (903 | ) |
MAHAN VILLAGE | — | — | (20 | ) | (43 | ) | (59 | ) | (122 | ) | (65 | ) | (81 | ) | (56 | ) | (68 | ) | (270 | ) | ||
TERMINUS 100 (2) | (7,328 | ) | (1,816 | ) | (1,808 | ) | (1,802 | ) | (1,795 | ) | (7,221 | ) | (725 | ) | — | — | — | (725 | ) | |||
OTHER | (3,284 | ) | (333 | ) | (8 | ) | — | — | (341 | ) | — | — | — | — | — | |||||||
CAPITALIZED | 600 | 426 | 489 | 544 | 177 | 1,636 | 101 | 57 | 119 | 241 | 518 | |||||||||||
SUBTOTAL - CONSOLIDATED | (27,784 | ) | (6,268 | ) | (5,875 | ) | (5,793 | ) | (5,997 | ) | (23,933 | ) | (4,935 | ) | (4,241 | ) | (5,149 | ) | (7,384 | ) | (21,709 | ) |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
UNCONSOLIDATED DEBT: | ||||||||||||||||||||||
TERMINUS 100 (2) | — | — | — | — | — | — | (530 | ) | (893 | ) | (887 | ) | (883 | ) | (3,193 | ) | ||||||
TERMINUS 200 (3) | (393 | ) | (126 | ) | (129 | ) | (129 | ) | (128 | ) | (512 | ) | (199 | ) | (390 | ) | (390 | ) | (390 | ) | (1,369 | ) |
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER | (1,441 | ) | (355 | ) | (353 | ) | (351 | ) | (349 | ) | (1,408 | ) | (347 | ) | (341 | ) | (336 | ) | (334 | ) | (1,358 | ) |
EMORY POINT | — | — | — | — | (59 | ) | (59 | ) | (155 | ) | (229 | ) | (244 | ) | (239 | ) | (867 | ) | ||||
THE AVENUE MURFREESBORO | (1,812 | ) | (444 | ) | (437 | ) | (438 | ) | (430 | ) | (1,749 | ) | (431 | ) | (431 | ) | (175 | ) | — | (1,037 | ) | |
THE AVENUE EAST COBB | (196 | ) | (49 | ) | (48 | ) | (48 | ) | (48 | ) | (193 | ) | (48 | ) | (48 | ) | (43 | ) | — | (139 | ) | |
OTHER | (889 | ) | (205 | ) | (95 | ) | — | — | (300 | ) | — | — | — | — | — | |||||||
SUBTOTAL - UNCONSOLIDATED | (4,731 | ) | (1,179 | ) | (1,062 | ) | (966 | ) | (1,014 | ) | (4,221 | ) | (1,710 | ) | (2,332 | ) | (2,075 | ) | (1,846 | ) | (7,963 | ) |
TOTAL INTEREST EXPENSE | (32,515 | ) | (7,447 | ) | (6,937 | ) | (6,759 | ) | (7,011 | ) | (28,154 | ) | (6,645 | ) | (6,573 | ) | (7,224 | ) | (9,230 | ) | (29,672 | ) |
IMPAIRMENT LOSSES | (129,134 | ) | — | — | (488 | ) | — | (488 | ) | — | — | — | — | — | ||||||||
OTHER EXPENSES | ||||||||||||||||||||||
NONCONTROLLING INTERESTS | (2,087 | ) | (574 | ) | (631 | ) | (608 | ) | (604 | ) | (2,415 | ) | (507 | ) | (515 | ) | (489 | ) | (160 | ) | (1,671 | ) |
PROPERTY TAXES & OTHER HOLDING COSTS | (2,394 | ) | (433 | ) | (320 | ) | (518 | ) | (467 | ) | (1,738 | ) | (274 | ) | (242 | ) | (827 | ) | (227 | ) | (1,570 | ) |
PREDEVELOPMENT & OTHER | (1,574 | ) | (187 | ) | (76 | ) | (1,397 | ) | 37 | (1,623 | ) | (42 | ) | (63 | ) | (104 | ) | (186 | ) | (395 | ) | |
ACQUISITION AND RELATED COSTS | (468 | ) | (78 | ) | (67 | ) | (350 | ) | (299 | ) | (794 | ) | (235 | ) | (333 | ) | (6,859 | ) | (57 | ) | (7,484 | ) |
OTHER - UNCONSOLIDATED | (467 | ) | (279 | ) | (138 | ) | (167 | ) | (55 | ) | (639 | ) | 112 | 82 | 187 | 132 | 513 | |||||
TOTAL - OTHER EXPENSES | (6,990 | ) | (1,551 | ) | (1,232 | ) | (3,040 | ) | (1,388 | ) | (7,209 | ) | (946 | ) | (1,071 | ) | (8,092 | ) | (498 | ) | (10,607 | ) |
INCOME TAX (PROVISION) BENEFIT | 186 | (27 | ) | (33 | ) | (60 | ) | 30 | (90 | ) | (1 | ) | (1 | ) | (1 | ) | 26 | 23 | ||||
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS | ||||||||||||||||||||||
CONSOLIDATED | (1,688 | ) | (364 | ) | (223 | ) | (256 | ) | (232 | ) | (1,075 | ) | (183 | ) | (189 | ) | (192 | ) | (189 | ) | (753 | ) |
SHARE OF UNCONSOLIDATED JOINT VENTURES | (20 | ) | (5 | ) | (5 | ) | (5 | ) | — | (15 | ) | (22 | ) | (24 | ) | (27 | ) | 39 | (34 | ) | ||
TOTAL - NON-REAL ESTATE DEPRECIATION AND AMORTIZATION | (1,708 | ) | (369 | ) | (228 | ) | (261 | ) | (232 | ) | (1,090 | ) | (205 | ) | (213 | ) | (219 | ) | (150 | ) | (787 | ) |
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS | (12,907 | ) | (3,227 | ) | (3,227 | ) | (3,226 | ) | (3,227 | ) | (12,907 | ) | (3,227 | ) | (5,883 | ) | (1,777 | ) | (1,777 | ) | (12,664 | ) |
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
WEIGHTED AVERAGE SHARES - BASIC | 103,651 | 104,000 | 104,165 | 104,193 | 104,109 | 104,117 | 104,119 | 118,661 | 163,426 | 189,665 | 144,255 | |||||||||||
WEIGHTED AVERAGE SHARES - DILUTED | 103,655 | 104,000 | 104,165 | 104,203 | 104,132 | 104,125 | 104,252 | 118,845 | 163,603 | 189,853 | 144,420 | |||||||||||
FFO PER SHARE - BASIC AND DILUTED | (0.74 | ) | 0.13 | 0.13 | 0.25 | 0.14 | 0.64 | 0.11 | 0.12 | 0.11 | 0.18 | 0.53 |
(1) Amounts may differ slightly from other schedules contained herein due to rounding. | |||||||||||||||||
(2) In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The Terminus 100 Consolidated line represents the Company's share for the period prior to the joint venture formation, the Terminus 100 Unconsolidated line represents the Company's share for the period subsequent to the joint venture formation. | |||||||||||||||||
(3) In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The first quarter 2013 Terminus 200 line includes the Company's share for both the Company's 20% share of the previous MSREF/T200 Joint Venture and the Company’s 50% share subsequent to the joint venture formation. | |||||||||||||||||
(4) The Company receives an 11.46% current return on its $10.4 million investment in Gateway Village and recognizes this amount as NOI from this venture. See Joint Venture Information included herein for further details. | |||||||||||||||||
(5) Other includes sold unconsolidated properties as well as Other Unconsolidated NOI. The sold unconsolidated properties include: Palisades West, Ten Peachtree Place, and Presbyterian Medical Plaza. Previous quarters were restated to be consistent with the new presentation. | |||||||||||||||||
(6) Discontinued Office Properties includes the discontinued NOI for the following consolidated Office Properties: Cosmopolitan Center, One Georgia Center, 8995 Westside Parkway, Galleria 75, Inhibitex, Lakeshore Park Plaza, and 600 University Park. | |||||||||||||||||
(7) The Company recognizes a 16% return on its investment in CW Investments as NOI from this investment. As of December 31, 2013, its investment in CW Investments was $14.4 million. CW Investments has an investment in four retail properties: Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village, and Highland City Town Center. See Joint Information included herein for further details. | |||||||||||||||||
(8) Other includes sold unconsolidated properties as well as Other Unconsolidated NOI. The sold unconsolidated properties include: North Point MarketCenter, Viera MarketCenter, Greenbrier MarketCenter, Los Altos MarketCenter, The Avenue Murfreesboro, The Avenue East Cobb, The Avenue West Cobb, The Avenue Peachtree City, and The Avenue Viera. Previous quarters were restated to be consistent with the new presentation. | |||||||||||||||||
(9) Discontinued Retail Properties includes the discontinued NOI for the following consolidated Retail Properties: Tiffany Springs MarketCenter, The Avenue Forsyth, The Avenue Webb Gin, The Avenue Collierville, and San Jose MarketCenter. | |||||||||||||||||
(10) Discontinued Other Properties includes the discontinued NOI for the following consolidated Industrial Properties: King Mill Building 3, Jefferson Mill Building A, and Lakeside Building 20. | |||||||||||||||||
(11) Management Fees include reimbursed expenses that are included in the "Reimbursed Expenses" line item. |
Company's Share | |||||||||||||||||||||||
Property Description | Metropolitan Area | Rentable Square Feet | Financial Statement Presentation | Company's Ownership Interest | End of Period Leased 4Q13 | End of Period Leased 3Q13 | Weighted Average Occupancy 4Q13 (1) | Weighted Average Occupancy 3Q13 (1) | % of Total Net Operating Income (2)(3) | Property Level Debt ($000) | |||||||||||||
I. | OFFICE PROPERTIES | ||||||||||||||||||||||
Greenway Plaza (4) | Houston | 4,348,000 | Consolidated | 100% | 95.4% | 95.0% | 95.3% | 95.0% | 40% | — | |||||||||||||
Post Oak Central (5) | Houston | 1,280,000 | Consolidated | 100% | 94.5% | 94.5% | 92.5% | 91.6% | 9% | 188,310 | |||||||||||||
777 Main | Fort Worth | 980,000 | Consolidated | 100% | 73.9% | 91.4% | 85.6% | 92.2% | 5% | — | |||||||||||||
2100 Ross Avenue | Dallas | 844,000 | Consolidated | 100% | 79.2% | 80.8% | 58.2% | 58.8% | 2% | — | |||||||||||||
816 Congress | Austin | 435,000 | Consolidated | 100% | 76.6% | 76.1% | 76.0% | 75.2% | 3% | — | |||||||||||||
The Points at Waterview | Dallas | 203,000 | Consolidated | 100% | 89.6% | 87.6% | 90.0% | 90.0% | 1% | 15,139 | |||||||||||||
TEXAS | 8,090,000 | 60% | 203,449 | ||||||||||||||||||||
191 Peachtree Tower | Atlanta | 1,225,000 | Consolidated | 100% | 86.6% | 86.8% | 86.1% | 86.3% | 8% | 100,000 | |||||||||||||
The American Cancer Society Center | Atlanta | 996,000 | Consolidated | 100% | 82.4% | 82.3% | 83.3% | 83.1% | 6% | 132,714 | |||||||||||||
Promenade | Atlanta | 777,000 | Consolidated | 100% | 89.2% | 87.3% | 70.2% | 68.7% | 5% | 113,573 | |||||||||||||
Terminus 100 | Atlanta | 656,000 | Unconsolidated | 50% | 98.3% | 96.1% | 96.0% | 95.5% | 4% | 66,971 | |||||||||||||
North Point Center East (6) | Atlanta | 540,000 | Consolidated | 100% | 94.4% | 93.3% | 92.1% | 91.6% | 3% | — | |||||||||||||
Terminus 200 | Atlanta | 566,000 | Unconsolidated | 50% | 88.4% | 88.4% | 88.2% | 87.8% | 2% | 41,000 | |||||||||||||
Meridian Mark Plaza | Atlanta | 160,000 | Consolidated | 100% | 99.0% | 97.6% | 97.6% | 97.6% | 2% | 25,813 | |||||||||||||
Emory University Hospital Midtown Medical Office Tower | Atlanta | 358,000 | Unconsolidated | 50% | 98.1% | 99.0% | 98.5% | 98.2% | 2% | 37,500 | |||||||||||||
GEORGIA | 5,278,000 | 32% | 517,571 | ||||||||||||||||||||
Lakeshore Park Plaza (7)(8) | Birmingham | 197,000 | Consolidated | 100% | 97.7% | 99.0% | 98.2% | 96.7% | 1% | — | |||||||||||||
600 University Park Place (7)(8) | Birmingham | 123,000 | Consolidated | 100% | 98.2% | 98.2% | 98.2% | 98.2% | 1% | — | |||||||||||||
ALABAMA | 320,000 | 2% | — | ||||||||||||||||||||
Gateway Village (9) | Charlotte | 1,065,000 | Unconsolidated | 50% | 100.0% | 100.0% | 100.0% | 100.0% | 1% | 26,204 | |||||||||||||
NORTH CAROLINA | 1,065,000 | 1% | 26,204 | ||||||||||||||||||||
TOTAL OFFICE PROPERTIES | 14,753,000 | 95% | 747,224 | ||||||||||||||||||||
II. | RETAIL PROPERTIES | ||||||||||||||||||||||
Mt. Juliet Village (9) | Nashville | 91,000 | Unconsolidated | 50.5% | 75.3% | 73.8% | 72.3% | 72.3% | 1% | 3,055 | |||||||||||||
The Shops of Lee Village (9) | Nashville | 74,000 | Unconsolidated | 50.5% | 91.0% | 89.1% | 87.5% | 87.5% | —% | 2,757 | |||||||||||||
Creek Plantation Village (9) | Chattanooga | 78,000 | Unconsolidated | 50.5% | 96.4% | 98.2% | 96.4% | 98.2% | —% | 3,005 | |||||||||||||
TENNESSEE | 243,000 | 1% | 8,817 | ||||||||||||||||||||
Emory Point (Phase I) | Atlanta | 80,000 | Unconsolidated | 75% | 86.7% | 84.0% | 81.9% | 81.9% | 1% | 7,078 | |||||||||||||
GEORGIA | 80,000 | 1% | 7,078 | ||||||||||||||||||||
Mahan Village (7) | Tallahassee | 147,000 | Consolidated | 100% | 90.5% | 90.5% | 90.5% | 90.0% | 1% | 14,470 | |||||||||||||
Highland City Town Center (9) | Lakeland | 96,000 | Unconsolidated | 50.5% | 82.9% | 85.8% | 82.9% | 83.9% | —% | 5,177 | |||||||||||||
FLORIDA | 243,000 | 1% | 19,647 | ||||||||||||||||||||
TOTAL RETAIL PROPERTIES | 566,000 | 3% | 35,542 | ||||||||||||||||||||
III. | APARTMENTS | ||||||||||||||||||||||
Emory Point (Phase I) (10) | Atlanta | 404,000 | Unconsolidated | 75% | 96.8% | 92.3% | 93.6% | 91.4% | 2% | 35,741 | |||||||||||||
GEORGIA | 404,000 | 2% | 35,741 | ||||||||||||||||||||
TOTAL APARTMENTS | 404,000 | 2% | 35,741 | ||||||||||||||||||||
TOTAL PORTFOLIO | 15,723,000 | 100% | 818,507 | ||||||||||||||||||||
(1) | Weighted average occupancy represents an average of the square footage occupied at the property during the quarter. | ||||||||||||||||||||||
(2) | Net operating income represents rental property revenues less rental property operating expenses. | ||||||||||||||||||||||
(3) | Calculation is based on amounts for the three months ended December 31, 2013. | ||||||||||||||||||||||
(4) | Contains ten buildings - One Greenway Plaza, Two Greenway Plaza, Three Greenway Plaza, Four Greenway Plaza, Five Greenway Plaza, 3800 Buffalo Speedway, Eight Greenway Plaza, Nine Greenway Plaza, Eleven Greenway Plaza, and Twelve Greenway Plaza. | ||||||||||||||||||||||
(5) | Contains three buildings - Post Oak Central I, Post Oak Central II, and Post Oak Central III. | ||||||||||||||||||||||
(6) | Contains four buildings - 100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East. | ||||||||||||||||||||||
(7) | This property is shown as 100% as it is owned through a consolidated joint venture. See Joint Venture Information included herein for further details. | ||||||||||||||||||||||
(8) | This property was classified as held for sale as of December 31, 2013. | ||||||||||||||||||||||
(9) | This property is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale may be disproportionate. | ||||||||||||||||||||||
(10) | This property consists of 443 units. |
Property Description | End of Period Leased 4Q13 | End of Period Leased 3Q13 | End of Period Leased 4Q12 | Weighted Average Occupancy 4Q13 (2) | Weighted Average Occupancy 3Q13 (2) | Weighted Average Occupancy 4Q12 (2) | ||||||||||||||
Gateway Village | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
NORTH CAROLINA | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
The Points at Waterview | 89.6 | % | 87.6 | % | 89.6 | % | 90.0 | % | 90.0 | % | 89.6 | % | ||||||||
TEXAS | 89.6 | % | 87.6 | % | 89.6 | % | 90.0 | % | 90.0 | % | 89.6 | % | ||||||||
600 University Park Place | 98.2 | % | 98.2 | % | 98.2 | % | 98.2 | % | 98.2 | % | 94.0 | % | ||||||||
Lakeshore Park Plaza | 97.7 | % | 99.0 | % | 98.1 | % | 98.2 | % | 96.7 | % | 95.7 | % | ||||||||
ALABAMA | 97.9 | % | 98.7 | % | 98.1 | % | 98.2 | % | 97.3 | % | 95.1 | % | ||||||||
Meridian Mark Plaza | 99.0 | % | 97.6 | % | 97.6 | % | 97.6 | % | 97.6 | % | 97.6 | % | ||||||||
Terminus 100 | 98.3 | % | 96.1 | % | 96.1 | % | 96.0 | % | 95.5 | % | 94.6 | % | ||||||||
Emory University Hospital Midtown Medical Office Tower | 98.1 | % | 99.0 | % | 98.8 | % | 98.5 | % | 98.2 | % | 98.6 | % | ||||||||
North Point Center East | 94.4 | % | 93.3 | % | 90.8 | % | 92.1 | % | 91.6 | % | 92.1 | % | ||||||||
Terminus 200 | 88.4 | % | 88.4 | % | 87.8 | % | 88.2 | % | 87.8 | % | 87.8 | % | ||||||||
191 Peachtree Tower | 86.6 | % | 86.8 | % | 87.4 | % | 86.1 | % | 86.3 | % | 82.3 | % | ||||||||
The American Cancer Society Center | 82.4 | % | 82.3 | % | 82.3 | % | 83.3 | % | 83.1 | % | 83.1 | % | ||||||||
GEORGIA | 88.9 | % | 88.5 | % | 88.3 | % | 88.3 | % | 88.2 | % | 86.9 | % | ||||||||
TOTAL PROPERTIES | 90.7 | % | 90.5 | % | 90.3 | % | 90.4 | % | 90.2 | % | 89.0 | % | ||||||||
(1 | ) | Same Properties include those office properties that were operational and stabilized on January 1, 2012, excluding properties subsequently sold. | ||||||||||||||||||
(2 | ) | Weighted average occupancy represents an average of the square footage occupied at the property during the quarter. |
Three Months Ended | ||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | 4Q13 vs. 3Q13 % Change | 4Q13 vs. 4Q12 % Change | ||||||||||
Rental Property Revenues (2) | 26,155 | 26,483 | 25,084 | (1.2 | )% | 4.3 | % | |||||||
Rental Property Operating Expenses (2) | 10,998 | 11,311 | 10,473 | (2.8 | )% | 5.0 | % | |||||||
Same Property Net Operating Income | 15,157 | 15,172 | 14,611 | (0.1 | )% | 3.7 | % | |||||||
Cash Basis Same Property Net Operating Income (3) | 14,007 | 14,053 | 13,531 | (0.2 | )% | 3.5 | % | |||||||
Year Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | % Change | ||||||||||||
Rental Property Revenues (2) | 104,474 | 100,151 | 4.3 | % | ||||||||||
Rental Property Operating Expenses (2) | 43,853 | 42,209 | 3.9 | % | ||||||||||
Same Property Net Operating Income | 60,621 | 57,942 | 4.6 | % | ||||||||||
Cash Basis Same Property Net Operating Income (3) | 55,765 | 53,662 | 3.9 | % | ||||||||||
(1) Same Properties include those office properties that were operational and stabilized on January 1, 2012, excluding properties subsequently sold. | ||||||||||||||
(2) Rental Property Revenues and Expenses includes results for the Company and its share of unconsolidated joint ventures. | ||||||||||||||
(3) Cash Basis Same Property Net Operating Income includes that of the Company and its share of unconsolidated joint ventures. It represents Net Operating Income excluding straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents. |
Company Share | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 & Thereafter | Total | ||||||||||||||||||||||
Square Feet Expiring | 775,135 | 920,155 | 1,424,355 | 1,448,891 | 1,224,965 | 687,206 | 789,999 | 877,178 | 822,830 | 3,177,550 | 12,148,264 | ||||||||||||||||||||||
% of Leased Space | 6 | % | 7 | % | 12 | % | 12 | % | 10 | % | 6 | % | 6 | % | 7 | % | 7 | % | 27 | % | 100 | % | |||||||||||
Annual Contractual Rent ($000s) (1) | $ | 14,540 | $ | 18,508 | $ | 27,017 | $ | 29,273 | $ | 25,803 | $ | 15,542 | $ | 18,271 | $ | 21,055 | $ | 16,797 | $ | 79,521 | $ | 266,327 | |||||||||||
Annual Contractual Rent per Square Foot (1) | $ | 18.76 | $ | 20.11 | $ | 18.97 | $ | 20.20 | $ | 21.06 | $ | 22.62 | $ | 23.13 | $ | 24.00 | $ | 20.41 | $ | 25.03 | $ | 21.92 |
Company Share | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 & Thereafter | Total | ||||||||||||||||||||||
Square Feet Expiring (2) | 12,896 | 6,666 | 6,048 | 16,265 | 18,739 | 5,015 | 4,546 | 8,545 | 15,026 | 238,513 | 332,259 | ||||||||||||||||||||||
% of Leased Space | 4 | % | 2 | % | 2 | % | 4 | % | 6 | % | 2 | % | 1 | % | 3 | % | 5 | % | 71 | % | 100 | % | |||||||||||
Annual Contractual Rent ($000s) (1) | $ | 234 | $ | 131 | $ | 112 | $ | 422 | $ | 450 | $ | 115 | $ | 99 | $ | 244 | $ | 479 | $ | 3,243 | $ | 5,529 | |||||||||||
Annual Contractual Rent per Square Foot (1) | $ | 18.16 | $ | 19.64 | $ | 18.48 | $ | 25.92 | $ | 24.04 | $ | 23.02 | $ | 21.74 | $ | 28.50 | $ | 31.91 | $ | 13.60 | $ | 16.64 |
Three Months Ended December 31, 2013 | Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||
New | Renewal | Expansion | Total | New | Renewal | Expansion | Total | ||||||||||||||||||||||||
Gross leased square footage | 431,184 | 1,399,814 | |||||||||||||||||||||||||||||
Less: Leases less than one year, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements | (33,971) | (143,390) | |||||||||||||||||||||||||||||
Net leased square footage | 86,766 | 232,016 | 78,431 | 397,213 | 555,868 | 572,646 | 127,910 | 1,256,424 | |||||||||||||||||||||||
Number of transactions | 9 | 20 | 9 | 38 | 33 | 53 | 22 | 108 | |||||||||||||||||||||||
Lease term (years) (2) | 8.73 | 6.81 | 6.32 | 7.13 | 10.28 | 8.07 | 6.06 | 8.84 | |||||||||||||||||||||||
Net rent per square foot (2)(3) | $ | 21.17 | $ | 18.66 | $ | 20.38 | $ | 19.55 | $ | 17.97 | $ | 18.92 | $ | 19.09 | $ | 18.54 | |||||||||||||||
Total leasing costs per square foot (2)(4) | (6.31 | ) | (3.19 | ) | (5.16 | ) | (4.26 | ) | (7.30 | ) | (3.06 | ) | (5.65 | ) | (5.25 | ) | |||||||||||||||
Net effective rent per square foot (2) | $ | 14.86 | $ | 15.47 | $ | 15.22 | $ | 15.29 | $ | 10.67 | $ | 15.86 | $ | 13.44 | $ | 13.29 | |||||||||||||||
Second generation leased square footage (2)(5) | 335,338 | 761,924 | |||||||||||||||||||||||||||||
Increase in average second generation net rent per square foot (2)(3)(5) | 23.2 | % | 12.9 | % | |||||||||||||||||||||||||||
Increase (decrease) in cash-basis second generation net rent per square foot (2)(5)(6) | 11.3 | % | (3.6 | )% | |||||||||||||||||||||||||||
(1) Excludes all non-office leasing, such as apartment and retail leasing. | |||||||||||||||||||||||||||||||
(2) Weighted average. | |||||||||||||||||||||||||||||||
(3) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term. | |||||||||||||||||||||||||||||||
(4) Includes tenant improvements, external leasing commissions, and free rent. | |||||||||||||||||||||||||||||||
(5) Excludes leases executed for spaces that were vacant upon acquisition, new leases in a development property, and leases for spaces that have been vacant for one year or more. | |||||||||||||||||||||||||||||||
(6) Represents increase (decrease) in net rent at the end of term paid by the prior tenant compared to net rent at beginning of term paid by the current tenant. |
Tenant (1) | Company Share of Annualized Base Rent (2) | Average Remaining Lease Term (Years) | ||||
1. | Occidental Oil & Gas Corp. | 7% | 13 | |||
2. | Apache Corporation | 4% | 5 | |||
3. | Transocean Offshore Deepwater (3) | 3% | 2 | |||
4. | Deloitte & Touche | 3% | 10 | |||
5. | Invesco Management Group, Inc | 2% | 10 | |||
6. | American Cancer Society | 2% | 9 | |||
7. | Smith, Gambrell & Russell, LLP | 2% | 8 | |||
8. | Stewart Information Services | 2% | 3 | |||
9. | CPL Retail Energy, LP | 2% | 5 | |||
10. | ExxonMobil Corporation | 2% | 1 | |||
11. | US South Communications | 2% | 8 | |||
12. | Internap Network Services | 2% | 6 | |||
13. | CB Richard Ellis, Inc. | 1% | 7 | |||
14. | IPR-GDF SUEZ North America | 1% | 6 | |||
15. | Bank of America (4) | 1% | 3 | |||
16. | MedAssets Net Revenue Systems, LLC | 1% | 1 | |||
17. | FTS International Services, LLC | 1% | 5 | |||
18. | Northside Hospital | 1% | 9 | |||
19. | Gulf South Pipeline Company LP | 1% | 3 | |||
20. | Lockton Companies | 1% | 12 | |||
41% | 7 | |||||
(1) | In some cases, the actual tenant may be an affiliate of the entity shown. | |||||
(2) | Annualized Base Rent represents the annualized minimum rent paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Base Rent represents the annualized minimum contractual rent the tenant will pay in the first month it is required to pay rent. | |||||
(3) | During the fourth quarter of 2013, tenant signed an agreement to reduce their space during the second quarter of 2014. | |||||
(4) | A portion of the Company's economic exposure for this tenant is limited to a fixed return through a joint venture arrangement. | |||||
NOTE: | This schedule includes tenants whose leases have commenced and/or have taken occupancy. Leases that have been signed but have not commenced are excluded from this schedule. |
Project | Type | Metropolitan Area | Company's Ownership Interest | Project Start Date | Number of Apartment Units/Square Feet | Estimated Project Cost (2) | Project Cost Incurred to Date (2) | Percent Leased | Percent Occupied | Initial Occupancy | Estimated Stabilization (5) | |||||||||||||||||
Colorado Tower | Office | Austin, TX | 100 | % | 2Q13 | 373,000 | $126,100 | $21,681 | 22 | % | — | % | 4Q14 | (3 | ) | 4Q15 | ||||||||||||
Emory Point (Phase II) | Mixed | Atlanta, GA | 75 | % | 4Q13 | $73,300 | $13,378 | |||||||||||||||||||||
Apartments | 307 | — | % | — | % | 1Q15 | (4 | ) | 1Q16 | |||||||||||||||||||
Retail | 43,000 | — | % | — | % | 2Q15 | (4 | ) | 3Q15 |
Metropolitan Area | Company's Ownership Interest | Developable Land Area (Acres) | ||||||
COMMERCIAL | ||||||||
Wildwood Office Park | Atlanta | 50.00% | 42 | |||||
North Point | Atlanta | 100.00% | 35 | |||||
Wildwood Office Park | Atlanta | 100.00% | 18 | |||||
The Avenue Forsyth-Adjacent Land | Atlanta | 100.00% | 11 | |||||
549 / 555 / 557 Peachtree Street | Atlanta | 100.00% | 1 | |||||
Georgia | 107 | |||||||
Round Rock | Austin | 100.00% | 51 | |||||
Research Park V | Austin | 100.00% | 6 | |||||
Texas | 57 | |||||||
Highland City Town Center-Outparcels, Adjacent Land (1) (2) (3) | Lakeland | 50.50% | 55 | |||||
Florida | 55 | |||||||
The Shops of Lee Village-Outparcels (2) (3) | Nashville | 50.50% | 5 | |||||
Tennessee | 5 | |||||||
TOTAL COMMERCIAL LAND ACRES HELD | 224 | |||||||
COMPANY'S SHARE OF TOTAL ACRES HELD | 172 | |||||||
COST BASIS OF COMMERCIAL LAND HELD | $ | 49,831 | ||||||
COMPANY'S SHARE OF COST BASIS OF COMMERCIAL LAND HELD | $ | 25,181 | ||||||
RESIDENTIAL (4) | ||||||||
Paulding County | Atlanta | 50.00% | 5,458 | |||||
Blalock Lakes | Atlanta | 100.00% | 2,660 | |||||
Callaway Gardens (5) | Atlanta | 100.00% | 218 | |||||
Georgia | 8,336 | |||||||
Padre Island | Corpus Christi | 50.00% | 15 | |||||
Texas | 15 | |||||||
TOTAL RESIDENTIAL LAND ACRES HELD | 8,351 | |||||||
COMPANY'S SHARE OF TOTAL ACRES HELD | 5,614 | |||||||
COST BASIS OF RESIDENTIAL LAND HELD | $ | 25,704 | ||||||
COMPANY'S SHARE OF COST BASIS OF RESIDENTIAL LAND HELD | $ | 19,605 | ||||||
GRAND TOTAL COMPANY'S SHARE OF ACRES | 5,786 | |||||||
GRAND TOTAL COMPANY'S SHARE OF COST BASIS OF LAND HELD | $ | 44,786 | ||||||
Company's Share of Debt Maturities and Principal Payments | ||||||||||||||||||||||||||||||||||||||||
Description (Interest Rate Base, if not fixed) | Company's Ownership Interest | Rate End of Quarter | Maturity Date | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | Company's Share Recourse (1) | |||||||||||||||||||||||||||||
CONSOLIDATED DEBT | ||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt | ||||||||||||||||||||||||||||||||||||||||
Mahan Village (LIBOR + 1.65%; $15mm facility) | 100.00 | % | (2) | 1.82 | % | 9/12/14 | $ | 14,470 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,470 | $ | 3,618 | ||||||||||||||||||
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (3) | 100.00 | % | 1.67 | % | 2/28/16 | — | — | 40,075 | — | — | — | 40,075 | 40,075 | |||||||||||||||||||||||||||
Total Floating Rate Debt | 14,470 | — | 40,075 | — | — | — | 54,545 | 43,693 | ||||||||||||||||||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||||||||||||||||||||||
The Points at Waterview | 100.00 | % | 5.66 | % | 1/1/16 | 541 | 573 | 14,025 | — | — | — | 15,139 | — | |||||||||||||||||||||||||||
The American Cancer Society Center (4) | 100.00 | % | 6.45 | % | 9/1/17 | 1,631 | 1,741 | 1,834 | 127,508 | — | — | 132,714 | — | |||||||||||||||||||||||||||
191 Peachtree Tower | 100.00 | % | 3.35 | % | 10/1/18 | — | — | 1,305 | 2,013 | 96,682 | — | 100,000 | — | |||||||||||||||||||||||||||
Meridian Mark Plaza | 100.00 | % | 6.00 | % | 8/1/20 | 405 | 430 | 456 | 484 | 514 | 23,524 | 25,813 | — | |||||||||||||||||||||||||||
Post Oak Central | 100.00 | % | 4.26 | % | 10/1/20 | 3,200 | 3,339 | 3,485 | 3,636 | 3,794 | 170,856 | 188,310 | — | |||||||||||||||||||||||||||
Promenade | 100.00 | % | 4.27 | % | 10/1/22 | 2,628 | 2,742 | 2,862 | 2,986 | 3,116 | 99,239 | 113,573 | — | |||||||||||||||||||||||||||
Total Fixed Rate Debt | 8,405 | 8,825 | 23,967 | 136,627 | 104,106 | 293,619 | 575,549 | — | ||||||||||||||||||||||||||||||||
TOTAL CONSOLIDATED DEBT | $ | 22,875 | $ | 8,825 | $ | 64,042 | $ | 136,627 | $ | 104,106 | $ | 293,619 | $ | 630,094 | $ | 43,693 | ||||||||||||||||||||||||
UNCONSOLIDATED DEBT | ||||||||||||||||||||||||||||||||||||||||
Floating Rate Debt | ||||||||||||||||||||||||||||||||||||||||
Emory Point (LIBOR + 1.75%, $61.1mm facility) | 75.00 | % | 1.92 | % | 10/9/14 | 42,819 | — | — | — | — | — | 42,819 | 4,282 | |||||||||||||||||||||||||||
Highland City Town Center (LIBOR + 2.65%) | 50.50 | % | (2) | 2.82 | % | 1/1/16 | 116 | 123 | 4,938 | — | — | — | 5,177 | — | ||||||||||||||||||||||||||
Creek Plantation Village (LIBOR + 2.65%) | 50.50 | % | (2) | 2.82 | % | 1/1/16 | 67 | 71 | 2,867 | — | — | — | 3,005 | — | ||||||||||||||||||||||||||
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility) | 50.50 | % | (2) | 3.02 | % | 1/1/16 | 58 | 62 | 2,935 | — | — | — | 3,055 | 1,538 | ||||||||||||||||||||||||||
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility) | 50.50 | % | (2) | 3.02 | % | 1/1/16 | 53 | 56 | 2,648 | — | — | — | 2,757 | 1,388 | ||||||||||||||||||||||||||
Emory Point II (LIBOR + 1.85%, $46mm facility) | 75.00 | % | 2.02 | % | 10/9/16 | — | — | 1 | — | — | — | 1 | 1 | |||||||||||||||||||||||||||
Total Floating Rate Debt | 43,113 | 312 | 13,389 | — | — | — | 56,814 | 7,209 | ||||||||||||||||||||||||||||||||
Fixed Rate Debt | ||||||||||||||||||||||||||||||||||||||||
Gateway Village (5) | 50.00 | % | 6.41 | % | 12/1/16 | 8,439 | 8,997 | 8,768 | — | — | — | 26,204 | — | |||||||||||||||||||||||||||
Terminus 100 | 50.00 | % | 5.25 | % | 1/1/23 | 1,150 | 1,212 | 1,277 | 1,346 | 1,418 | 60,568 | 66,971 | — | |||||||||||||||||||||||||||
Terminus 200 | 50.00 | % | 3.79 | % | 1/1/23 | — | — | 559 | 770 | 39,671 | — | 41,000 | — | |||||||||||||||||||||||||||
Emory University Hospital Midtown Medical Office Tower | 50.00 | % | 3.50 | % | 6/1/23 | — | 357 | 732 | 758 | 35,653 | — | 37,500 | — | |||||||||||||||||||||||||||
Total Fixed Rate Debt | 9,589 | 10,566 | 11,336 | 2,874 | 76,742 | 60,568 | 171,675 | — | ||||||||||||||||||||||||||||||||
TOTAL UNCONSOLIDATED DEBT | $ | 52,702 | $ | 10,878 | $ | 24,725 | $ | 2,874 | $ | 76,742 | $ | 60,568 | $ | 228,489 | $ | 7,209 | ||||||||||||||||||||||||
TOTAL DEBT | $ | 75,577 | $ | 19,703 | $ | 88,767 | $ | 139,501 | $ | 180,848 | $ | 354,187 | $ | 858,583 | $ | 50,902 | ||||||||||||||||||||||||
TOTAL MATURITIES (6) | $ | 57,289 | $ | — | $ | 67,489 | $ | 127,508 | $ | 96,682 | $ | 399,803 | $ | 748,771 | ||||||||||||||||||||||||||
% OF MATURITIES | 8% | —% | 9% | 17% | 13% | 53% | 100% |
Total Debt ($) | Total Debt (%) | Weighted Average Interest Rate | Weighted Average Maturity (Yrs.) | ||||||||||
Floating Rate Debt | $ | 111,359 | 13 | % | 1.94 | % | 1.4 | ||||||
Fixed Rate Debt | 747,224 | 87 | % | 4.72 | % | 6.5 | |||||||
Total Debt | $ | 858,583 | 100 | % | 4.36 | % | 5.8 | ||||||
Cash Flows to Cousins | ||||||||
Unconsolidated Joint Ventures | Properties | Operating | Capital Transactions/Other | GAAP Accounting | ||||
Charlotte Gateway Village LLC | Gateway Village | Preferred return on investment of 11.46%. | 50% of proceeds after partner receives $66.8 million until a 17% leveraged IRR. Thereafter, 20% of remaining proceeds. | Recognize 11.46% of invested capital each period. | ||||
Terminus Office Holdings LLC | Terminus 100, Terminus 200 | 50% of operating cash flows until partner receives an agreed upon return. Thereafter, receive an additional promoted interest if certain return thresholds are met. | Same as operating cash flows. | Recognize 50% of net income from venture. | ||||
CL Realty | Land | 50% of operating cash flows. | 50% of proceeds. | Recognize 50% of net income from venture. | ||||
Cousins Watkins LLC | Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village, Highland City Town Center | Preferred return of 9%, 39.65% of remaining operating cash flows. | All proceeds until a 16% leveraged IRR. Then, partner receives their unreturned capital. Thereafter, 39.65% of remaining proceeds. | Recognize net income equal to 16% of investment. | ||||
Temco Associates LLC | Land | 50% of operating cash flows. | 50% of proceeds. | Recognize 50% of net income from venture. | ||||
EP I LLC | Emory Point (Phase I) | 75% of operating cash flows. | 75% of proceeds. | Recognize 75% of net income from venture. | ||||
EP II LLC | Emory Point (Phase II) | 75% of operating cash flows. | 75% of proceeds. | Recognize 75% of net income from venture. | ||||
Crawford Long-CPI, LLC | Emory University Hospital Midtown Medical Office Tower | 50% of operating cash flows. | 50% of proceeds. | Recognize 50% of net income from venture. | ||||
Wildwood Associates | Land | 50% of operating cash flows. | 50% of proceeds. | Recognize 50% of net income from venture. | ||||
Consolidated Joint Ventures | ||||||||
Cousins/Callaway LLC | Land | The first $2.0 million of cash flows; 77% of the next $17.7 million of cash flows; 50% of remaining cash flows until a IRR of 20%; 40% of remaining cash flows until a 25% IRR; 25% of remainder. | Same as operating cash flow. | Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner. | ||||
Cousins/Daniel LLC | Lakeshore Park Plaza, 600 University Park Place | Through preferred returns, all operating cash flows. | All capital proceeds. | Recognize revenues and expenses as if a wholly-owned property. No minority interest currently recorded. | ||||
Mahan Village LLC | Mahan Village | Preferred return of 9%, 87% of remaining cash flows after partner receives 9% return. | All proceeds until a 16% leveraged IRR. Then 75% of remaining proceeds after partner receives its investment and a 9% preferred return. | Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner. |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX: | ||||||||||||||||||||||
TOTAL BY SEGMENT: | ||||||||||||||||||||||
OFFICE: | ||||||||||||||||||||||
SECOND GENERATION LEASING RELATED COSTS | 16,602 | 1,933 | 2,393 | 4,825 | 4,031 | 13,181 | 2,865 | 1,524 | 2,642 | 5,108 | 12,139 | |||||||||||
SECOND GENERATION BUILDING IMPROVEMENTS | 464 | 155 | 730 | 137 | 250 | 1,271 | 79 | 1,589 | 200 | 1,946 | 3,814 | |||||||||||
17,067 | 2,087 | 3,122 | 4,962 | 4,281 | 14,453 | 2,944 | 3,113 | 2,842 | 7,054 | 15,954 | ||||||||||||
RETAIL: | ||||||||||||||||||||||
SECOND GENERATION LEASING RELATED COSTS | 2,074 | 246 | 64 | 116 | 180 | 605 | 88 | 239 | 133 | — | 460 | |||||||||||
TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX | 19,140 | 2,333 | 3,186 | 5,077 | 4,461 | 15,058 | 3,032 | 3,352 | 2,976 | 7,054 | 16,414 | |||||||||||
NET OPERATING INCOME: | ||||||||||||||||||||||
OFFICE CONSOLIDATED PROPERTIES | 53,889 | 15,506 | 15,481 | 16,233 | 16,335 | 63,555 | 17,526 | 18,841 | 25,175 | 41,083 | 102,625 | |||||||||||
RETAIL CONSOLIDATED PROPERTIES | (3 | ) | — | 4 | 57 | 259 | 320 | 389 | 390 | 364 | 151 | 1,294 | ||||||||||
NET OPERATING INCOME - CONSOLIDATED | 53,889 | 15,506 | 15,485 | 16,290 | 16,594 | 63,875 | 17,915 | 19,231 | 25,539 | 41,234 | 103,919 | |||||||||||
RENTAL PROPERTY REVENUES | 94,704 | 26,789 | 27,393 | 29,536 | 30,486 | 114,208 | 33,123 | 37,099 | 47,575 | 76,620 | 194,420 | |||||||||||
RENTAL PROPERTY OPERATING EXPENSES | (40,815 | ) | (11,283 | ) | (11,908 | ) | (13,246 | ) | (13,892 | ) | (50,329 | ) | (15,208 | ) | (17,868 | ) | (22,036 | ) | (35,386 | ) | (90,498 | ) |
NET OPERATING INCOME - CONSOLIDATED | 53,889 | 15,506 | 15,485 | 16,290 | 16,594 | 63,879 | 17,915 | 19,231 | 25,539 | 41,234 | 103,919 | |||||||||||
INCOME FROM DISCONTINUED OPERATIONS: | ||||||||||||||||||||||
RENTAL PROPERTY REVENUES | 51,985 | 10,702 | 9,280 | 8,110 | 5,825 | 33,918 | 3,000 | 2,940 | 2,870 | 1,742 | 10,552 | |||||||||||
RENTAL PROPERTY OPERATING EXPENSES | (19,575 | ) | (3,223 | ) | (3,276 | ) | (2,662 | ) | (1,775 | ) | (10,935 | ) | (1,194 | ) | (1,182 | ) | (1,118 | ) | (668 | ) | (4,162 | ) |
NET OPERATING INCOME | 32,410 | 7,479 | 6,004 | 5,448 | 4,050 | 22,983 | 1,806 | 1,758 | 1,752 | 1,074 | 6,390 | |||||||||||
TERMINATION FEES | 77 | 192 | 13 | 3,232 | 75 | 3,512 | — | — | — | — | — | |||||||||||
INTEREST AND OTHER INCOME (EXPENSE) | 70 | (9 | ) | (6 | ) | 10 | 5 | (3 | ) | 4 | (1 | ) | 12 | — | 15 | |||||||
FFO FROM DISCONTINUED OPERATING PROPERTIES | 32,557 | 7,662 | 6,011 | 8,690 | 4,130 | 26,492 | 1,810 | 1,757 | 1,764 | 1,074 | 6,405 | |||||||||||
THIRD PARTY MANAGEMENT AND LEASING REVENUES | 19,359 | 4,711 | 6,029 | 4,789 | 836 | 16,365 | 74 | 2 | — | — | 76 | |||||||||||
THIRD PARTY MANAGEMENT AND LEASING EXPENSES | (16,585 | ) | (4,300 | ) | (4,607 | ) | (4,260 | ) | (508 | ) | (13,675 | ) | (53 | ) | (27 | ) | (14 | ) | (3 | ) | (97 | ) |
FFO FROM THIRD PARTY MANAGEMENT AND LEASING | 2,774 | 411 | 1,422 | 529 | 328 | 2,690 | 21 | (25 | ) | (14 | ) | (3 | ) | (21 | ) | |||||||
FFO FROM DISCONTINUED OPERATIONS | 35,331 | 8,073 | 7,433 | 9,219 | 4,458 | 29,182 | 1,831 | 1,732 | 1,750 | 1,071 | 6,384 | |||||||||||
DEPRECIATION AND AMORTIZATION OF REAL ESTATE | (23,395 | ) | (4,753 | ) | (3,499 | ) | (4,133 | ) | (1,097 | ) | (13,479 | ) | (1,053 | ) | (1,046 | ) | (492 | ) | (494 | ) | (3,085 | ) |
IMPAIRMENT LOSSES | (10,945 | ) | (12,233 | ) | — | — | (1,558 | ) | (13,791 | ) | — | — | — | — | — | |||||||
INCOME FROM DISCONTINUED OPERATIONS | 991 | (8,913 | ) | 3,934 | 5,086 | 1,803 | 1,912 | 778 | 686 | 1,258 | 577 | 3,299 | ||||||||||
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES AND COST OF SALES: | ||||||||||||||||||||||
CONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT AND OUTPARCEL SALES - CONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT SALES | 3,015 | 949 | 535 | 732 | 400 | 2,616 | 460 | 283 | 155 | 70 | 968 | |||||||||||
OUTPARCEL SALES | — | — | — | — | — | — | 503 | 150 | — | — | 653 | |||||||||||
TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES | 3,015 | 949 | 535 | 732 | 400 | 2,616 | 963 | 433 | 155 | 70 | 1,621 |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT COST OF SALES | 2,941 | 564 | 416 | 354 | 87 | 1,421 | 460 | 283 | 147 | 65 | 955 | |||||||||||
OUTPARCEL COST OF SALES | (50 | ) | — | — | — | — | — | 503 | 150 | — | — | 653 | ||||||||||
TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED | 2,891 | 564 | 416 | 354 | 87 | 1,421 | 963 | 433 | 147 | 65 | 1,608 | |||||||||||
TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES | 3,258 | — | (30 | ) | — | 3,750 | 3,720 | 243 | 276 | 602 | 24 | 1,145 | ||||||||||
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY | ||||||||||||||||||||||
SALES LESS COST OF SALES - CONSOLIDATED | 3,382 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 610 | 29 | 1,158 | |||||||||||
SUMMARY - CONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT SALES LESS COST OF SALES | 74 | 385 | 119 | 378 | 313 | 1,195 | — | — | 8 | 5 | 13 | |||||||||||
OUTPARCEL SALES LESS COST OF SALES | 50 | — | — | — | — | — | — | — | — | — | — | |||||||||||
TRACT SALES LESS COST OF SALES | 3,258 | — | (30 | ) | — | 3,750 | 3,720 | 243 | 276 | 602 | 24 | 1,145 | ||||||||||
TOTAL CONSOLIDATED SALES LESS COST OF SALES | 3,382 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 610 | 29 | 1,158 | |||||||||||
OTHER SALES AND COST OF SALES: | ||||||||||||||||||||||
CONSOLIDATED: | ||||||||||||||||||||||
OTHER SALES - CONSOLIDATED: | ||||||||||||||||||||||
OTHER SALES | 4,664 | — | 174 | — | 520 | 694 | 340 | — | — | — | 340 | |||||||||||
OTHER COST OF SALES | (2,487 | ) | — | (119 | ) | — | (294 | ) | (413 | ) | (182 | ) | — | — | 37 | (145 | ) | |||||
OTHER SALES LESS COST OF SALES - CONSOLIDATED | 2,177 | — | 55 | — | 226 | 281 | 158 | — | — | 37 | 195 | |||||||||||
UNCONSOLIDATED: | ||||||||||||||||||||||
OTHER SALES - UNCONSOLIDATED: | ||||||||||||||||||||||
OTHER SALES | — | — | — | — | — | — | — | — | — | — | — | |||||||||||
OTHER COST OF SALES | (5 | ) | — | — | — | — | — | — | — | — | — | — | ||||||||||
OTHER, NET | 77 | (1 | ) | (2 | ) | — | 31 | 28 | 10 | (8 | ) | (6 | ) | — | (4 | ) | ||||||
OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED | 72 | (1 | ) | (2 | ) | — | 31 | 28 | 10 | (8 | ) | (6 | ) | — | (4 | ) | ||||||
TOTAL OTHER SALES FFO | 2,249 | (1 | ) | 53 | — | 257 | 309 | 168 | (8 | ) | (6 | ) | 37 | 191 | ||||||||
UNCONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT AND TRACT SALES - UNCONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT SALES | 7,343 | — | — | — | — | — | — | — | — | — | — | |||||||||||
OUTPARCEL SALES | — | — | — | — | — | — | — | — | 475 | — | 475 | |||||||||||
TRACT SALES | 794 | 176 | — | — | — | 176 | — | — | 90 | — | 90 | |||||||||||
TOTAL RESIDENTIAL LOT AND TRACT SALES | 8,137 | 176 | — | — | — | 176 | — | — | 565 | — | 565 | |||||||||||
RESIDENTIAL LOT AND TRACT COST OF SALES - UNCONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT COST OF SALES | 5,770 | — | — | — | — | — | — | — | — | — | — | |||||||||||
OUTPARCEL COST OF SALES | — | — | — | — | — | — | — | — | 360 | — | 360 | |||||||||||
TRACT COST OF SALES | 513 | 176 | — | — | — | 176 | — | — | 90 | — | 90 | |||||||||||
TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES | 6,283 | 176 | — | — | — | 176 | — | — | 450 | — | 450 | |||||||||||
RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES -UNCONSOLIDATED | 1,854 | — | — | — | — | — | — | — | 115 | — | 115 |
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
SUMMARY - UNCONSOLIDATED: | ||||||||||||||||||||||
RESIDENTIAL LOT SALES LESS COST OF SALES | 1,573 | — | — | — | — | — | — | — | — | — | — | |||||||||||
OUTPARCEL SALES LESS COST OF SALES | — | — | — | — | — | — | — | — | 115 | — | 115 | |||||||||||
TRACT SALES LESS COST OF SALES | 281 | — | — | — | — | — | — | — | — | — | — | |||||||||||
RESIDENTIAL LOT AND TRACT SALES LESS COST OF | ||||||||||||||||||||||
SALES - SHARE OF UNCONSOLIDATED | 1,854 | — | — | — | — | — | — | — | 115 | — | 115 | |||||||||||
TOTAL RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES | 5,236 | 385 | 89 | 378 | 4,063 | 4,915 | 243 | 276 | 725 | 29 | 1,273 | |||||||||||
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES: | ||||||||||||||||||||||
NET OPERATING INCOME: | ||||||||||||||||||||||
OFFICE PROPERTIES | 13,592 | 3,661 | 3,271 | 3,210 | 2,613 | 12,755 | 3,373 | 4,206 | 4,289 | 4,327 | 16,195 | |||||||||||
RETAIL PROPERTIES | 10,666 | 2,608 | 2,666 | 2,671 | 2,774 | 10,719 | 3,031 | 3,000 | 2,392 | 849 | 9,272 | |||||||||||
OTHER PROPERTIES | — | — | — | — | 122 | 122 | 43 | 376 | 861 | 1,020 | 2,300 | |||||||||||
NET OPERATING INCOME | 24,258 | 6,269 | 5,937 | 5,881 | 5,509 | 23,596 | 6,447 | 7,582 | 7,542 | 6,196 | 27,767 | |||||||||||
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES | 1,854 | — | — | — | — | — | — | — | 115 | — | 115 | |||||||||||
OTHER SALES LESS COST OF SALES | 73 | (1 | ) | (2 | ) | — | 31 | 28 | 10 | (8 | ) | (6 | ) | — | (4 | ) | ||||||
TERMINATION FEES | 73 | 42 | 18 | — | 2 | 62 | 19 | — | — | — | 19 | |||||||||||
INTEREST EXPENSE | (4,338 | ) | (1,179 | ) | (1,062 | ) | (966 | ) | (1,014 | ) | (4,221 | ) | (1,710 | ) | (2,332 | ) | (2,075 | ) | (1,846 | ) | (7,963 | ) |
OTHER EXPENSE | (467 | ) | (279 | ) | (138 | ) | (167 | ) | (55 | ) | (639 | ) | 112 | 82 | 187 | 132 | 513 | |||||
IMPAIRMENT LOSSES | (29,003 | ) | — | — | — | — | — | — | — | — | — | — | ||||||||||
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS | (20 | ) | (5 | ) | (5 | ) | (5 | ) | — | (15 | ) | (22 | ) | (24 | ) | (27 | ) | 39 | (34 | ) | ||
FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES | (7,570 | ) | 4,847 | 4,748 | 4,743 | 4,473 | 18,811 | 4,856 | 5,300 | 5,736 | 4,521 | 20,413 | ||||||||||
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET | — | — | 7,509 | — | 23,153 | 30,662 | — | — | 60,421 | (77 | ) | 60,344 | ||||||||||
DEPRECIATION AND AMORTIZATION OF REAL ESTATE | (10,337 | ) | (2,661 | ) | (2,495 | ) | (2,475 | ) | (2,584 | ) | (10,215 | ) | (3,204 | ) | (4,167 | ) | (3,079 | ) | (2,985 | ) | (13,435 | ) |
NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES | (17,906 | ) | 2,186 | 9,762 | 2,268 | 25,043 | 39,258 | 1,652 | 1,133 | 63,078 | 1,459 | 67,322 | ||||||||||
MARKET CAPITALIZATION | ||||||||||||||||||||||
COMMON STOCK PRICE AT PERIOD END | 6.41 | 7.58 | 7.75 | 7.94 | 8.35 | 8.35 | 10.69 | 10.10 | 10.29 | 10.30 | 10.30 | |||||||||||
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END | 103,702 | 104,139 | 104,215 | 104,136 | 104,090 | 104,090 | 104,127 | 120,688 | 189,660 | 189,666 | 189,666 | |||||||||||
COMMON STOCK CAPITALIZATION | 664,730 | 789,374 | 807,666 | 826,840 | 869,152 | 869,152 | 1,113,118 | 1,218,949 | 1,951,601 | 1,953,560 | 1,953,560 | |||||||||||
PREFERRED STOCK-SERIES A-PRICE AT LIQUIDATION VALUE | 74,827 | 74,827 | 74,827 | 74,827 | 74,827 | 74,827 | 74,827 | — | — | — | — | |||||||||||
PREFERRED STOCK-SERIES B-PRICE AT LIQUIDATION VALUE | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | 94,775 | |||||||||||
PREFERRED STOCK AT LIQUIDATION VALUE | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 94,775 | 94,775 | 94,775 | 94,775 | |||||||||||
DEBT | 539,442 | 529,168 | 461,021 | 518,630 | 425,410 | 425,410 | 344,832 | 340,374 | 642,834 | 630,094 | 630,094 | |||||||||||
SHARE OF UNCONSOLIDATED DEBT | 162,127 | 164,217 | 156,364 | 165,571 | 170,480 | 170,480 | 266,069 | 281,960 | 230,280 | 228,489 | 228,489 | |||||||||||
DEBT (2) | 701,569 | 693,385 | 617,385 | 684,201 | 595,890 | 595,890 | 610,901 | 622,334 | 873,114 | 858,583 | 858,583 | |||||||||||
TOTAL MARKET CAPITALIZATION | 1,535,901 | 1,652,361 | 1,594,654 | 1,680,643 | 1,634,644 | 1,634,644 | 1,893,620 | 1,936,057 | 2,919,490 | 2,906,918 | 2,906,918 | |||||||||||
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
LEVERAGE RATIOS | ||||||||||||||||||||||
DEBT (2) | 701,569 | 693,385 | 617,385 | 684,201 | 595,890 | 595,890 | 610,901 | 622,334 | 873,114 | 858,583 | 858,583 | |||||||||||
TOTAL MARKET CAPITALIZATION | 1,535,901 | 1,652,361 | 1,594,654 | 1,680,643 | 1,634,644 | 1,634,644 | 1,893,620 | 1,936,057 | 2,919,490 | 2,906,918 | 2,906,918 | |||||||||||
DEBT (2) / TOTAL MARKET CAPITALIZATION | 45.7% | 42.0% | 38.7% | 40.7% | 36.5% | 36.5% | 32.3% | 32.1% | 29.9% | 29.5% | 29.5% | |||||||||||
TOTAL ASSETS-CONSOLIDATED | 1,235,535 | 1,199,634 | 1,135,315 | 1,199,101 | 1,124,242 | 1,124,242 | 1,096,444 | 1,200,788 | 2,263,766 | 2,273,206 | 2,273,206 | |||||||||||
ACCUMULATED DEPRECIATION-CONSOLIDATED | 289,473 | 302,782 | 281,739 | 294,710 | 258,258 | 258,258 | 221,429 | 245,608 | 238,297 | 257,151 | 257,151 | |||||||||||
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2) | 516,686 | 467,303 | 454,388 | 461,500 | 403,141 | 403,141 | 575,323 | 562,475 | 432,750 | 441,928 | 441,928 | |||||||||||
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | (160,587 | ) | (141,180 | ) | (140,303 | ) | (139,782 | ) | (97,868 | ) | (97,868 | ) | (128,541 | ) | (127,948 | ) | (98,183 | ) | (107,082 | ) | (107,082 | ) |
TOTAL UNDEPRECIATED ASSETS (2) | 1,881,107 | 1,828,539 | 1,731,139 | 1,815,529 | 1,687,773 | 1,687,773 | 1,764,655 | 1,880,923 | 2,836,630 | 2,865,203 | 2,865,203 | |||||||||||
DEBT (2) | 701,569 | 693,385 | 617,385 | 684,201 | 595,890 | 595,890 | 610,901 | 622,334 | 873,114 | 858,583 | 858,583 | |||||||||||
UNDEPRECIATED ASSETS (2) | 1,881,107 | 1,828,539 | 1,731,139 | 1,815,529 | 1,687,773 | 1,687,773 | 1,764,655 | 1,880,923 | 2,836,630 | 2,865,203 | 2,865,203 | |||||||||||
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2) | 37.3% | 37.9% | 35.7% | 37.7% | 35.3% | 35.3% | 34.6% | 33.1% | 30.8% | 30.0% | 30.0% | |||||||||||
DEBT (2) | 701,569 | 693,385 | 617,385 | 684,201 | 595,890 | 595,890 | 610,901 | 622,334 | 873,114 | 858,583 | 858,583 | |||||||||||
PREFERRED STOCK AT LIQUIDATION VALUE | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 169,602 | 94,775 | 94,775 | 94,775 | 94,775 | |||||||||||
DEBT (2) + PREFERRED | 871,171 | 862,987 | 786,987 | 853,803 | 765,492 | 765,492 | 780,503 | 717,109 | 967,889 | 953,358 | 953,358 | |||||||||||
TOTAL MARKET CAPITALIZATION | 1,535,901 | 1,652,361 | 1,594,654 | 1,680,643 | 1,634,644 | 1,634,644 | 1,893,620 | 1,936,057 | 2,919,490 | 2,906,918 | 2,906,918 | |||||||||||
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION | 56.7% | 52.2% | 49.4% | 50.8% | 46.8% | 46.8% | 41.2% | 37.0% | 33.2% | 32.8% | 32.8% | |||||||||||
DEBT (2) + PREFERRED | 871,171 | 862,987 | 786,987 | 853,803 | 765,492 | 765,492 | 780,503 | 717,109 | 967,889 | 953,358 | 953,358 | |||||||||||
TOTAL UNDEPRECIATED ASSETS (2) | 1,881,107 | 1,828,539 | 1,731,139 | 1,815,529 | 1,687,773 | 1,687,773 | 1,764,655 | 1,880,923 | 2,836,630 | 2,865,203 | 2,865,203 | |||||||||||
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2) | 46.3% | 47.2% | 45.5% | 47.0% | 45.4% | 45.4% | 44.2% | 38.1% | 34.1% | 33.3% | 33.3% | |||||||||||
EBITDA (2) | ||||||||||||||||||||||
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
INTEREST EXPENSE | 32,515 | 7,447 | 6,937 | 6,759 | 7,011 | 28,154 | 6,645 | 6,573 | 7,224 | 9,230 | 29,672 | |||||||||||
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION | 1,708 | 369 | 228 | 261 | 232 | 1,090 | 205 | 213 | 219 | 150 | 787 | |||||||||||
INCOME TAX PROVISION (BENEFIT) | (186 | ) | 27 | 33 | 60 | (30 | ) | 90 | 1 | 1 | 1 | (26 | ) | (23 | ) | |||||||
IMPAIRMENT LOSSES | 129,134 | — | — | 488 | — | 488 | — | — | — | — | — | |||||||||||
PREDEVELOPMENT CHARGES | 937 | — | — | — | — | — | — | — | — | — | — | |||||||||||
LOSS ON DEBT EXTINGUISHMENT | 74 | 94 | — | — | — | 94 | — | — | — | — | — | |||||||||||
GAIN ON SALE OF THIRD PARTY BUSINESS | — | — | — | (7,384 | ) | (75 | ) | (7,459 | ) | — | — | (4,531 | ) | (45 | ) | (4,576 | ) | |||||
PARTICIPATION INTEREST INCOME | — | — | — | (3,366 | ) | — | (3,366 | ) | — | — | — | — | — | |||||||||
ACQUISITION AND RELATED COSTS | 468 | 78 | 67 | 350 | 299 | 794 | 235 | 333 | 6,859 | 57 | 7,484 | |||||||||||
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS | 12,907 | 3,227 | 3,227 | 3,226 | 3,227 | 12,907 | 3,227 | 5,883 | 1,777 | 1,777 | 12,664 | |||||||||||
EBITDA (2) | 100,682 | 24,730 | 23,644 | 26,079 | 24,831 | 99,284 | 21,774 | 27,161 | 28,775 | 45,432 | 123,142 | |||||||||||
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
COVERAGE RATIOS (2) | ||||||||||||||||||||||
EBITDA | 100,682 | 24,730 | 23,644 | 26,079 | 24,831 | 99,284 | 21,774 | 27,161 | 28,775 | 45,432 | 123,142 | |||||||||||
INTEREST EXPENSE | 32,515 | 7,447 | 6,937 | 6,759 | 7,011 | 28,154 | 6,645 | 6,573 | 7,224 | 9,230 | 29,672 | |||||||||||
INTEREST COVERAGE RATIO (2) | 3.10 | 3.32 | 3.41 | 3.86 | 3.54 | 3.53 | 3.28 | 4.13 | 3.98 | 4.92 | 4.15 | |||||||||||
INTEREST EXPENSE | 32,515 | 7,447 | 6,937 | 6,759 | 7,011 | 28,154 | 6,645 | 6,573 | 7,224 | 9,230 | 29,672 | |||||||||||
SCHEDULED PRINCIPAL PAYMENTS | 7,279 | 2,123 | 2,045 | 1,755 | 1,846 | 7,769 | 1,855 | 1,728 | 1,528 | 1,922 | 7,032 | |||||||||||
PREFERRED STOCK DIVIDENDS | 12,907 | 3,227 | 3,227 | 3,226 | 3,227 | 12,907 | 3,227 | 3,227 | 1,777 | 1,777 | 10,008 | |||||||||||
FIXED CHARGES | 52,701 | 12,797 | 12,209 | 11,740 | 12,084 | 48,830 | 11,727 | 11,528 | 10,529 | 12,929 | 46,712 | |||||||||||
EBITDA | 100,682 | 24,730 | 23,644 | 26,079 | 24,831 | 99,284 | 21,774 | 27,161 | 28,775 | 45,432 | 123,142 | |||||||||||
FIXED CHARGES COVERAGE RATIO (2) | 1.91 | 1.93 | 1.94 | 2.22 | 2.05 | 2.03 | 1.86 | 2.36 | 2.73 | 3.51 | 2.64 | |||||||||||
DEBT (2) | 701,569 | 693,385 | 617,385 | 684,201 | 595,890 | 595,890 | 610,901 | 622,334 | 873,114 | 858,583 | 858,583 | |||||||||||
ANNUALIZED EBITDA (3) | 108,800 | 98,920 | 94,576 | 104,316 | 99,324 | 99,324 | 87,096 | 108,644 | 115,100 | 181,728 | 181,728 | |||||||||||
DEBT (2) / ANNUALIZED EBITDA (3) | 6.45 | 7.01 | 6.53 | 6.56 | 6.00 | 6.00 | 7.01 | 5.73 | 7.59 | 4.72 | 4.72 | |||||||||||
DIVIDEND RATIOS | ||||||||||||||||||||||
REGULAR COMMON DIVIDENDS: | ||||||||||||||||||||||
CASH COMMON DIVIDENDS | 18,651 | 4,687 | 4,686 | 4,690 | 4,685 | 18,748 | 4,689 | 5,431 | 8,536 | 8,536 | 27,192 | |||||||||||
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
FFO PAYOUT RATIO | (24.3)% | 34.8% | 35.6% | 18.3% | 33.1% | 28.2% | 40.9% | 38.4% | 49.6% | 24.9% | 35.3% | |||||||||||
FFO BEFORE CERTAIN CHARGES | ||||||||||||||||||||||
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
PREFERRED STOCK ORIGINAL ISSUANCE COSTS | — | — | — | — | — | — | — | 2,656 | — | — | 2,656 | |||||||||||
IMPAIRMENT LOSSES (2) | 129,134 | — | — | 488 | — | 488 | — | — | — | — | — | |||||||||||
PREDEVELOPMENT & OTHER CHARGES | 937 | (1,185 | ) | — | — | — | (1,185 | ) | — | — | — | — | — | |||||||||
LOSS ON DEBT EXTINGUISHMENT | 74 | 94 | — | — | — | 94 | — | — | — | — | — | |||||||||||
ACQUISITION AND RELATED COSTS | 468 | 78 | 67 | 350 | 299 | 794 | 235 | 333 | 6,859 | 57 | 7,484 | |||||||||||
GAIN ON SALE OF THIRD PARTY BUSINESS | — | — | — | (7,384 | ) | (75 | ) | (7,459 | ) | — | — | (4,531 | ) | (45 | ) | (4,576 | ) | |||||
PARTICIPATION INTEREST INCOME | — | — | — | (3,366 | ) | — | (3,366 | ) | — | — | — | — | — | |||||||||
SEPARATION CHARGES | 197 | 213 | 79 | 574 | 1,118 | 1,985 | — | — | 520 | — | 520 | |||||||||||
FFO BEFORE CERTAIN CHARGES | 53,935 | 12,688 | 13,298 | 16,347 | 15,509 | 57,843 | 11,696 | 17,147 | 20,074 | 34,301 | 83,218 | |||||||||||
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO | 34.6% | 36.9% | 35.2% | 28.7% | 30.2% | 32.4% | 40.1% | 31.7% | 42.5% | 24.9% | 32.7% | |||||||||||
2011 | 2012 1st | 2012 2nd | 2012 3rd | 2012 4th | 2012 | 2013 1st | 2013 2nd | 2013 3rd | 2013 4th | 2013 | ||||||||||||
FAD (2) | ||||||||||||||||||||||
FFO | (76,875 | ) | 13,488 | 13,152 | 25,685 | 14,167 | 66,492 | 11,461 | 14,158 | 17,226 | 34,289 | 77,134 | ||||||||||
FAS 13 | (11,076 | ) | (2,686 | ) | (2,152 | ) | (1,823 | ) | (1,659 | ) | (8,319 | ) | (2,346 | ) | (2,204 | ) | (3,244 | ) | (5,032 | ) | (12,826 | ) |
ABOVE AND BELOW MARKET RENTS | (26 | ) | 108 | 87 | 124 | 174 | 493 | (185 | ) | (586 | ) | (994 | ) | (2,020 | ) | (3,785 | ) | |||||
SECOND GENERATION CAPEX | (19,140 | ) | (2,333 | ) | (3,186 | ) | (5,077 | ) | (4,461 | ) | (15,058 | ) | (3,032 | ) | (3,352 | ) | (2,976 | ) | (7,054 | ) | (16,414 | ) |
FAD (2) | (107,117 | ) | 8,577 | 7,901 | 18,909 | 8,222 | 43,608 | 5,897 | 8,016 | 10,012 | 20,183 | 44,109 | ||||||||||
COMMON DIVIDENDS | 18,651 | 4,687 | 4,686 | 4,690 | 4,685 | 18,748 | 4,689 | 5,431 | 8,536 | 8,536 | 27,192 | |||||||||||
FAD PAYOUT RATIO (2) | (17.4)% | 54.7% | 59.3% | 24.8% | 57.0% | 43.0% | 79.5% | 67.7% | 85.3% | 42.3% | 61.6% | |||||||||||
FAD BEFORE CERTAIN CHARGES | ||||||||||||||||||||||
FAD (2) | (107,117 | ) | 8,577 | 7,901 | 18,909 | 8,222 | 43,608 | 5,897 | 8,016 | 10,012 | 20,183 | 44,109 | ||||||||||
PREFERRED STOCK ORIGINAL ISSUANCE COSTS | — | — | — | — | — | — | — | 2,656 | — | — | 2,656 | |||||||||||
IMPAIRMENT LOSSES (2) | 129,134 | — | — | 488 | — | 488 | — | — | — | — | — | |||||||||||
PREDEVELOPMENT & OTHER CHARGES | 937 | (1,185 | ) | — | — | — | (1,185 | ) | — | — | — | — | — | |||||||||
LOSS ON DEBT EXTINGUISHMENT | 74 | 94 | — | — | — | 94 | — | — | — | — | — | |||||||||||
ACQUISITION AND RELATED COSTS | 468 | 78 | 67 | 350 | 299 | 794 | 235 | 333 | 6,859 | 57 | 7,484 | |||||||||||
GAIN ON SALE OF THIRD PARTY BUSINESS | — | — | — | (7,384 | ) | (75 | ) | (7,459 | ) | — | — | (4,531 | ) | (45 | ) | (4,576 | ) | |||||
PARTICIPATION INTEREST INCOME | — | — | — | (3,366 | ) | — | (3,366 | ) | — | — | — | — | — | |||||||||
SEPARATION CHARGES | 197 | 213 | 79 | 574 | 1,118 | 1,984 | — | — | 520 | — | 520 | |||||||||||
FAD BEFORE CERTAIN CHARGES | 23,693 | 7,777 | 8,047 | 9,571 | 9,564 | 34,958 | 6,132 | 11,005 | 12,860 | 20,195 | 50,193 | |||||||||||
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO | 78.7% | 60.3% | 58.2% | 49.0% | 49.0% | 53.6% | 76.5% | 49.3% | 66.4% | 42.3% | 54.2% | |||||||||||
OPERATIONS RATIOS | ||||||||||||||||||||||
REVENUES | 118,125 | 31,860 | 30,960 | 37,690 | 36,334 | 136,846 | 38,262 | 42,521 | 50,434 | 79,520 | 210,741 | |||||||||||
REVENUES FROM DISCONTINUED OPERATIONS | 71,553 | 15,613 | 15,330 | 16,149 | 6,747 | 53,839 | 3,082 | 2,951 | 2,888 | 1,750 | 10,668 | |||||||||||
REVENUES INCLUDING DISCONTINUED OPERATIONS | 189,678 | 47,473 | 46,290 | 53,839 | 43,081 | 190,685 | 41,344 | 45,472 | 53,322 | 81,270 | 221,409 | |||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | 24,166 | 6,623 | 5,646 | 5,255 | 5,684 | 23,208 | 6,069 | 4,552 | 6,635 | 4,684 | 21,940 | |||||||||||
REVENUES INCLUDING DISCONTINUED OPERATIONS | 189,678 | 47,473 | 46,290 | 53,839 | 43,081 | 190,685 | 41,344 | 45,472 | 53,322 | 81,270 | 221,409 | |||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS | 12.7% | 14.0% | 12.2% | 9.8% | 13.2% | 12.2% | 14.7% | 10.0% | 12.4% | 5.8% | 9.9% | |||||||||||
TOTAL UNDEPRECIATED ASSETS (2) | 1,881,107 | 1,828,539 | 1,731,139 | 1,815,529 | 1,687,773 | 1,687,773 | 1,764,655 | 1,880,923 | 2,836,630 | 2,865,203 | 2,865,203 | |||||||||||
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS | 1.3% | 1.4% | 1.3% | 1.2% | 1.3% | 1.3% | 1.4% | 1.0% | 0.9% | 0.7% | 0.7% | |||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2013 | December 31, 2012 | ||||||||||||||||
Net Operating Income | ||||||||||||||||||||
Same Property | $ | 15,157 | $ | 14,611 | $ | 15,172 | $ | 60,621 | $ | 57,942 | ||||||||||
Non-Same Property | 33,349 | 11,542 | 19,660 | 77,459 | 52,515 | |||||||||||||||
Consolidated Property Net Operating Income | $ | 48,506 | $ | 26,153 | $ | 34,832 | $ | 138,080 | $ | 110,457 | ||||||||||
Less: Non-Cash Items | ||||||||||||||||||||
Straight-line rent | $ | 5,032 | $ | 2,164 | $ | 3,139 | $ | 13,008 | $ | 10,287 | ||||||||||
Other | 1,679 | (63 | ) | 665 | 2,491 | (41 | ) | |||||||||||||
Non-Cash Items | 6,711 | 2,101 | 3,804 | 15,499 | 10,246 | |||||||||||||||
Cash Basis Property Net Operating Income | ||||||||||||||||||||
Same Property | 14,007 | 13,531 | 14,034 | 55,765 | 53,662 | |||||||||||||||
Non-Same Property | 27,768 | 9,164 | 16,973 | 65,425 | 45,078 | |||||||||||||||
Cash Basis Property Net Operating Income | $ | 41,775 | $ | 22,695 | $ | 31,007 | $ | 121,190 | $ | 98,740 | ||||||||||
Net Operating Income (4) | ||||||||||||||||||||
Operating Properties | $ | 41,234 | $ | 16,594 | $ | 25,539 | $ | 103,922 | $ | 63,877 | ||||||||||
Discontinued Operations | 1,076 | 4,050 | 1,755 | 6,395 | 22,984 | |||||||||||||||
Share of Unconsolidated Joint Ventures | 6,196 | 5,509 | 7,538 | 27,763 | 23,596 | |||||||||||||||
Total Net Operating Income | $ | 48,506 | $ | 26,153 | $ | 34,832 | $ | 138,080 | $ | 110,457 | ||||||||||
(1) AMOUNTS MAY DIFFER SLIGHTLY FROM OTHER SCHEDULES CONTAINED HEREIN DUE TO ROUNDING. | ||||||||||||||||||||
(2) INCLUDES COMPANY SHARE OF UNCONSOLIDATED JOINT VENTURES. | ||||||||||||||||||||
(3) ANNUALIZED REPRESENTS QUARTER AMOUNT ANNUALIZED. | ||||||||||||||||||||
(4) SEE RECONCILIATION ABOVE WITHIN PREVIOUS PAGES OF THE CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES. |
The Company uses non-GAAP financial measures in its filings and other public disclosures. The following is a list of non-GAAP financial measures that the Company commonly uses and a description for each measure of (1) the reasons that management believes the measure is useful to investors and (2) if material, any additional uses of the measure by management of the Company. “2nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space and other building improvements associated with properties acquired for redevelopment or repositioning. “Cash Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents. “EBITDA” represents FFO plus consolidated and Company share of unconsolidated interest expense, non-real estate depreciation and amortization, income taxes, impairment losses, predevelopment charges, loss on debt extinguishment, gain on sale of third party business, participation interest income, acquisition and related costs, and preferred stock dividends and original issuance costs. Management believes that EBITDA provides analysts and investors with appropriate information to use in various ratios that evaluate the Company's level of debt. "Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of straight-line rent and above and below market lease amortization less 2nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company's dividend policy with other real estate companies. “FAD Before Certain Charges” represents FAD before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and related costs, gain on sale of third party business, participation interest income and separation charges. Management believes that FAD Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations and dividend policy with other real estate companies. “Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the National Association of Real Estate Investment Trusts' (“NAREIT”) definition, which is net income (loss) available to | common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, impairment losses on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. FFO is used by industry analysts and investors as a supplemental measure of an equity REIT's operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, as a performance measure for incentive compensation to its officers and other key employees. “FFO Before Certain Charges” represents FFO before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and related costs, gain on sale of third party business, participation interest income and separation charges. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations with other real estate companies. “Net Operating Income” is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Net Operating Income, which is rental property revenues less rental property operating expenses, 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 FFO and 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. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property's performance. Depreciation and amortization are also excluded from Net Operating Income for the reasons described under FFO above. “Same Property Net Operating Income” represents Net Operating income for those office properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. Same-Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio. |
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