Exhibit 99.2

 

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FREEPORT INDUSTRIAL PARK±83,250 SF NEW DEVELOPMENT - IRVING, TX
SUPPLEMENTAL INFORMATIONFOURTH QUARTER 2020701 WESTERN AVENUE | GLENDALE, CA 91201 | 818.244.8080 | PSBUSINESSPARKS.COM


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ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION FOR

THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2020

 

     Page  

Consolidated Balance Sheets

     3  

Consolidated Statements of Income

     5  

Portfolio Summary

     7  

Fourth Quarter Fact Sheet

     8  

Same Park Cash NOI by Region and Type

     9  

Analysis of Capital Expenditures

     11  

Funds from Operations (FFO), Core FFO and Funds Available for Distribution (FAD)

     12  

Capital Structure and Financial Condition

     14  

Portfolio Operating Analysis and Statistics

     15  

Lease Expirations

     22  

Fourth Quarter- and Year-to-Date Production Statistics

     26  

Definitions and Non-GAAP Disclosures

     27  

Forward-Looking Statements

When used within this supplemental information package, the words “may,” “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates,” “intends,” and similar expressions are intended to identify “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results and performance of the Company to be materially different from those expressed or implied in the forward-looking statements. Such factors include the duration and severity of the COVID-19 pandemic and its impact on our business and our customers; the impact of competition from new and existing commercial facilities which could impact rents and occupancy levels at the Company’s facilities; the Company’s ability to evaluate, finance, and integrate acquired and developed properties into the Company’s existing operations; the Company’s ability to effectively compete in the markets that it does business in; the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing REITs; the impact of general economic and business conditions, including as a result of the economic fallout of the COVID-19 pandemic; rental rates and occupancy levels at the Company’s facilities; and changes in these conditions as a result of the COVID-19 pandemic, the availability of permanent capital at attractive rates, the outlook and actions of rating agencies and risks detailed from time to time in the Company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.

 

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         December 31, 2020              December 31, 2019            

ASSETS

       
       

Cash and cash equivalents

   $ 69,083     $ 62,786      (a
       

Real estate facilities, at cost

       

Land

     874,680       844,419   

Buildings and improvements

     2,247,389       2,203,308   
  

 

 

    

 

 

   
     3,122,069       3,047,727   

Accumulated depreciation

     (1,229,102)         (1,158,489)     
  

 

 

    

 

 

   
     1,892,967       1,889,238      (b

Properties held for sale, net (1)

     -        15,264   

Land and building held for development, net

     43,014       28,110   
  

 

 

    

 

 

   
     1,935,981       1,932,612   
       

Rent receivable

     1,519       1,392      (c

Deferred rent receivable (2)

     36,788       32,993   

Other assets

     14,334       16,660      (d
  

 

 

    

 

 

   

Total assets

   $ 2,057,705     $ 2,046,443   
  

 

 

    

 

 

   
       

LIABILITIES AND EQUITY

       
       

Accrued and other liabilities

   $ 82,065     $ 84,632      (e
  

 

 

    

 

 

   

Total liabilities

     82,065       84,632   
       

Equity

       

PS Business Parks, Inc.’s shareholders’ equity:

       

Preferred stock

     944,750       944,750   

Common stock

     274       274   

Paid-in capital

     738,022       736,986      (f

Accumulated earnings

     73,631       63,666      (g
  

 

 

    

 

 

   

Total PS Business Parks, Inc.’s shareholders’ equity

     1,756,677       1,745,676   

Noncontrolling interests

     218,963       216,135   
  

 

 

    

 

 

   

Total equity

     1,975,640       1,961,811   
  

 

 

    

 

 

   

Total liabilities and equity

   $ 2,057,705     $ 2,046,443   
  

 

 

    

 

 

   

 

 

See following page for additional detail related to the tickmarks shown in the table above.

 

(1)

Properties held for sale, net as of December 31, 2019 represents two industrial buildings totaling 40,000 square feet located in Redmond, Washington, which were subject to an eminent domain process and sold on September 16, 2020 for a gross sales price of $11.4 million, and one single-tenant building totaling 113,000 square feet located in Montgomery County, Maryland, which sold on January 7, 2020 for a gross sales price of $30.0 million.

(2)

Increase in deferred rent receivable is primarily attributable to rent deferral arrangements that the Company entered into with certain customers as a result of the COVID-19 pandemic.

 

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(a)

  

Change in cash and cash equivalents

      
  

Beginning cash balance at December 31, 2019

       $ 62,786 
  

Net cash provided by operating activities

         276,975 
  

Net cash used in investing activities

         (71,819)  
  

Net cash used in financing activities

         (198,859)  
         

 

 

 
  

Ending cash balance at December 31, 2020

       $ 69,083 
         

 

 

 
         

(b)

  

Change in real estate facilities, at cost

      
  

Beginning balance at December 31, 2019

       $ 1,889,238 
  

Acquisition of real estate

         57,429 
  

Recurring capital improvements

         9,521 
  

Tenant improvements, gross

         16,214 
  

Capitalized lease commissions

         8,878 
  

Nonrecurring capital improvements

         1,715 
  

Depreciation and amortization of real estate facilities

         (90,058)  
  

Transfer to properties held for sale

         30 
         

 

 

 
  

Ending balance at December 31, 2020

       $ 1,892,967 
         

 

 

 
         
         
                      Increase  
(c)    Change in rent receivable     December 31, 2020         December 31, 2019        (Decrease)  
  

Non-government customers

  $ 646   $ 597    $ 49 
  

U.S. Government customers

    873     795      78 
    

 

 

   

 

 

    

 

 

 
     $ 1,519   $ 1,392    $ 127 
    

 

 

   

 

 

    

 

 

 
                      Increase  
(d)    Change in other assets   December 31, 2020     December 31, 2019      (Decrease)  
  

Lease intangible assets, net

  $ 9,058   $ 9,973    $ (915)  
  

Prepaid property taxes and insurance

    3,121     2,572      549 
  

Other

    2,155     4,115      (1,960)  
    

 

 

   

 

 

    

 

 

 
     $ 14,334   $ 16,660    $ (2,326)  
    

 

 

   

 

 

    

 

 

 
                      Increase  
(e)    Change in accrued and other liabilities   December 31, 2020     December 31, 2019      (Decrease)  
  

Customer security deposits

  $ 38,457   $ 39,118    $ (661)  
  

Accrued property taxes

    12,513     11,521      992 
  

Customer prepaid rent

    12,518     14,519      (2,001)  
  

Lease intangible liabilities, net

    6,392     8,541      (2,149)  
  

Other

    12,185     10,933      1,252 
    

 

 

   

 

 

    

 

 

 
     $ 82,065   $ 84,632    $ (2,567)  
    

 

 

   

 

 

    

 

 

 
         

(f)

  

Change in paid-in capital

      
  

Beginning paid-in capital at December 31, 2019

       $ 736,986 
  

Exercise of stock options

         258 
  

Stock compensation expense, net

         4,994 
  

Cash paid for taxes in lieu of shares upon vesting of restricted stock units

         (4,216)  
         

 

 

 
  

Ending paid-in capital at December 31, 2020

       $ 738,022 
         

 

 

 
         

(g)

  

Change in accumulated earnings

      
  

Beginning accumulated earnings at December 31, 2019

       $ 63,666 
  

Net income

         173,547 
  

Distributions to preferred shareholders

         (48,186)  
  

Distributions to common shareholders

         (115,396)  
         

 

 

 
  

Ending accumulated earnings at December 31, 2020

       $ 73,631 
         

 

 

 

 

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     For The Three Months      For the Years Ended      
     Ended December 31,      Ended December 31,      
     2020      2019      2020      2019      
             

Rental income

   $ 105,088     $ 106,175     $ 415,623     $ 429,846    (a)
             

Expenses:

             

Cost of operations

     32,023       30,822       125,513       128,343    (b)

Depreciation and amortization

     23,668       28,386       96,314       104,249   

General and administrative

     3,152       3,650       14,526       13,761    (c)
  

 

 

    

 

 

    

 

 

    

 

 

   

Total operating expenses

     58,843      62,858      236,353      246,353  
  

 

 

    

 

 

    

 

 

    

 

 

   
             

Interest and other income

     222       1,726       1,234       4,492    (d)

Interest and other expense

     (172)        (173)        (1,072)        (657)     (e)

Gain on sale of real estate facilities

            16,644       27,273       16,644   
  

 

 

    

 

 

    

 

 

    

 

 

   

Net income

     46,295       61,514       206,705       203,972   

Allocation to noncontrolling interests

     (7,147)        (7,336)        (33,158)        (29,006)    
  

 

 

    

 

 

    

 

 

    

 

 

   

Net income allocable to PS Business Parks, Inc.

     39,148       54,178       173,547       174,966   

Allocation to preferred shareholders based upon

             

Distributions

     (12,047)        (15,469)        (48,186)        (54,346)    

Charge related to the redemption of preferred securities

            (11,007)               (11,007)    

Allocation to restricted stock unit holders

     (173)        (211)        (716)        (910)    
  

 

 

    

 

 

    

 

 

    

 

 

   

Net income allocable to common shareholders

   $ 26,928     $ 27,491     $ 124,645     $ 108,703   
  

 

 

    

 

 

    

 

 

    

 

 

   
             

Net income per common share

             

Basic

   $ 0.98     $ 1.00     $ 4.54     $ 3.96   

Diluted

   $ 0.98     $ 1.00     $ 4.52     $ 3.95   
             

Weighted average common shares outstanding

             

Basic

     27,488       27,439       27,475       27,418   

Diluted

     27,572       27,551       27,563       27,526   

 

 

See following page for additional detail related to the tickmarks shown in the table above.

 

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        For The Three Months Ended     Increase     For the Years Ended     Increase  
(a)   Rental income:     December 31, 2020         December 31, 2019           (Decrease)           December 31, 2020         December 31, 2019           (Decrease)      
 

Same Park (1) (2)

  $ 97,777   $ 96,850   $ 927   $ 379,947   $ 379,495   $ 452
 

Same Park non-cash rental income (1) (3)

    (1,204     565     (1,769     3,417     2,455     962
 

Non-Same Park (1) (2)

    5,691     4,500     1,191     20,785     13,352     7,433
 

Non-Same Park non-cash rental income (1) (3)

    609     268     341     1,324     924     400
 

Multifamily

    2,215     2,583     (368     9,464     10,075     (611
 

Rental income from assets sold (4)

    -       1,409     (1,409     686     23,545     (22,859
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    $ 105,088   $ 106,175   $ (1,087   $ 415,623   $ 429,846   $ (14,223
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        For The Three Months Ended     Increase     For the Years Ended     Increase  
(b)   Cost of operations:   December 31, 2020     December 31, 2019     (Decrease)     December 31, 2020     December 31, 2019     (Decrease)  
 

Same Park (1)

  $ 28,535   $ 27,281   $ 1,254   $ 112,569   $ 109,559   $ 3,010
 

Same Park non-cash expense (1) (5)

    398     209     189     1,128     1,026     102
 

Non-Same Park (1)

    1,881     1,595     286     7,327     4,899     2,428
 

Non-Same Park non-cash expense (1) (5)

    29     13     16     82     54     28
 

Multifamily

    1,180     1,019     161     4,264     4,137     127
 

Operating expenses from assets sold (4)

    -       705     (705     143     8,668     (8,525
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    $ 32,023   $ 30,822   $ 1,201   $ 125,513   $ 128,343   $ (2,830
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        For The Three Months Ended     Increase     For the Years Ended     Increase  
(c)   General and administrative expenses:   December 31, 2020     December 31, 2019     (Decrease)     December 31, 2020     December 31, 2019     (Decrease)  
 

Compensation expense

  $ 880   $ 1,964   $ (1,084   $ 5,488   $ 6,258   $ (770
 

Stock compensation expense

    830     741     89     4,438     3,822     616
 

Professional fees and other

    1,442     945     497     4,600     3,681     919
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    $ 3,152   $ 3,650   $ (498   $ 14,526   $ 13,761   $ 765
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        For The Three Months Ended     Increase     For the Years Ended     Increase  
(d)   Interest and other income:   December 31, 2020     December 31, 2019     (Decrease)     December 31, 2020     December 31, 2019     (Decrease)  
 

Management fee income

  $ 64   $ 66   $ (2   $ 262   $ 287   $ (25
 

Interest income

    5     1,068     (1,063     370     1,885     (1,515
 

Other income

    153     592     (439     602     2,320     (1,718
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    $ 222   $ 1,726   $ (1,504   $ 1,234   $ 4,492   $ (3,258
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
        For The Three Months Ended     Increase     For the Years Ended     Increase  
(e)   Interest and other expense:   December 31, 2020     December 31, 2019     (Decrease)     December 31, 2020     December 31, 2019     (Decrease)  
 

Interest expense

  $ -     $ (20   $ 20   $ -     $ (67   $ 67
 

Credit facilities fees & other charges

    (172     (153     (19     (1,072     (590     (482
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    $ (172   $ (173   $ 1   $ (1,072   $ (657   $ (415
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Same Park and Non-Same Park.

(2)

Same Park rental income is presented net of (a) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.4 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively, and (b) rent deferrals and abatements of $0.3 million and $0 for the three months ended December 31, 2020 and 2019, respectively, and $6.7 million and $0 for the years ended December 31, 2020 and 2019, respectively. Non-Same Park rental income is presented net of (a) accounts receivable write-offs of $0.1 million and $0 for the three months ended December 31, 2020 and 2019, and $0.2 million and $0.1 million for the years ended December 31, 2020 and 2019, respectively, and (b) rent deferrals and abatements of $0 for both of the three months ended December 31, 2020 and 2019, respectively, and $0.2 million and $0 for the years ended December 31, 2020 and 2019, respectively.

(3)

Non-cash rental income represents amortization of deferred rent receivable, amortization of above and below market rents, net, and amortization of lease incentives and tenant improvement reimbursements. Same Park non-cash rental income is presented net of deferred rent receivable write-offs of $0.4 million and $0.1 million for the three months ended December 31, 2020 and 2019, respectively, and $3.0 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively. Non-Same Park non-cash rental income is presented net of deferred rent receivable write-offs of $0 for both the three months ended December 31, 2020 and 2019, and $0.1 million and $0 for the years ended December 31, 2020 and 2019, respectively.

(4)

Amounts shown for the year ended December 31, 2020 include operating results attributable to two industrial buildings totaling 40,000 square feet sold in September 2020 and a 113,000 square foot office building sold in January 2020; amounts shown for the three months and year ended December 31, 2019 reflect the operating results of the two industrial buildings totaling 40,000 square feet sold in September 2020, the 113,000 square foot office building sold in January 2020, and 1.3 million square feet of assets sold in October 2019.

(5)

Non-cash expense represents stock compensation expense attributable to employees whose compensation expense is recorded in costs of operations.

 

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PROPERTY INFORMATION (1)

 

      For The Three Months Ended December 31,               For the Years Ended December 31,           
     2020      2019      % Change      2020      2019      % Change  
                 

Total Portfolio (2)

                 

Total rentable square footage at period end

     27,728,000        27,409,000        1.2%        27,728,000        27,409,000        1.2%  

Weighted average occupancy

     91.8%        94.4%        (2.8%)        91.9%        94.2%        (2.4%)  

Period end occupancy

     92.9%        94.9%        (2.1%)        92.9%        94.9%        (2.1%)  

Revenue per occupied sq. ft. (3) (4)

   $ 16.21      $ 15.83        2.4%      $ 16.03      $ 15.62        2.6%  

RevPAF (3) (4)

   $ 14.88      $ 14.95        (0.5%)      $ 14.73      $ 14.70        0.2%  
                 

Same Park Portfolio (3)

                 

Total rentable square footage at period end

     25,656,000        25,656,000        -        25,656,000        25,656,000        -  

Weighted average occupancy

     92.0%        94.4%        (2.5%)        92.4%        94.5%        (2.2%)  

Period end occupancy

     92.9%        94.9%        (2.1%)        92.9%        94.9%        (2.1%)  

Revenue per occupied sq. ft. (3) (5)

   $ 16.37      $ 16.09        1.7%      $ 16.17      $ 15.75        2.7%  

RevPAF (3) (5)

   $ 15.06      $ 15.19        (0.9%)      $ 14.94      $ 14.89        0.3%  
                 

Non-Same Park Portfolio (3)

                 

Total rentable square footage at period end

     2,072,000        1,753,000        18.2%        2,072,000        1,753,000        18.2%  

Weighted average occupancy

     89.6%        94.7%        (5.4%)        85.4%        87.4%        (2.3%)  

Period end occupancy

     93.1%        94.4%        (1.4%)        93.1%        94.4%        (1.4%)  

Revenue per occupied sq. ft. (3) (6)

   $ 14.05      $ 11.95        17.6%        13.85        12.69        9.1%  

RevPAF (3) (6)

   $ 12.60      $ 11.32        11.3%        11.83        11.09        6.7%  
                 

Multifamily Portfolio

                 

Number of units

     395        395        -        395        395        -  

Weighted average occupancy

     93.7%        95.5%        (1.9%)        92.9%        95.4%        (2.6%)  

Period end occupancy

     94.9%        94.7%        0.2%        94.9%        94.7%        0.2%  

 

 

 

(1)

Excludes assets sold for the periods shown.

(2)

Operating metrics from our multifamily asset are excluded from total portfolio operating metrics.

(3)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Revenue per Occupied Square Foot, RevPAF, Same Park and Non-Same Park.

(4)

Included in the calculation of Total Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0.4 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.3 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively, (b) accounts receivable write-offs of $0.2 million for both the three months ended December 31, 2020 and 2019, and $1.6 million and $1.1 million for the years ended December 31, 2020 and 2019, respectively, and (c) deferred rent receivable write-offs of $0.4 million and $0.1 million for the three months ended December 31, 2020 and 2019, respectively, and $3.1 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively.

(5)

Included in the calculation of Same Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0.4 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.2 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively, (b) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.4 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively, and (c) deferred rent receivable write-offs of $0.4 million and $0.1 million for the three months ended December 31, 2020 and 2019, respectively, and $3.0 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively.

(6)

Included in the calculation of Non-Same Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0 for both the three months ended December 31, 2020 and 2019 and $0.1 million and $0 for the years ended December 31, 2020 and 2019, respectively, (b) accounts receivable write-offs of $0.1 million and $0 for the three months ended December 31, 2020 and 2019, respectively, and $0.2 million and $0.1 million for the years ended December 31, 2020 and 2019, respectively, and (c) deferred rent receivable write-offs of $0 for both the three months ended December 31, 2020 and 2019, and $0.1 million and $0 for the years ended December 31, 2020 and 2019, respectively.

 

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NET OPERATING INCOME

 

 

       For The Three Months Ended December 31,                For the Years Ended December 31,           
     2020      2019      % Change     2020      2019      % Change  

Rental income

                

Same Park (1) (2) (3)

   $  96,573      $  97,415        (0.9%   $ 383,364      $ 381,950        0.4%  

Non-Same Park (1)

     6,300        4,768        32.1%       22,109        14,276        54.9%  

Multifamily

     2,215        2,583        (14.2%)       9,464        10,075        (6.1%)  

Assets sold

            1,409        (100.0%)       686        23,545        (97.1%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total rental income

     105,088        106,175        (1.0%)       415,623        429,846        (3.3%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Adjusted cost of operations (1) (5)

                

Same Park (1) (6)

     28,535        27,281        4.6%       112,569        109,559        2.7%  

Non-Same Park (1)

     1,881        1,595        17.9%       7,327        4,899        49.6%  

Multifamily

     1,180        1,019        15.8%       4,264        4,137        3.1%  

Assets sold

            703        (100.0%)       143        8,614        (98.3%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total

     31,596        30,598        3.3%       124,303        127,209        (2.3%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Net operating income

                

Same Park (1)

     68,038        70,134        (3.0%)       270,795        272,391        (0.6%)  

Non-Same Park (1)

     4,419        3,173        39.3%       14,782        9,377        57.6%  

Multifamily

     1,035        1,564        (33.8%)       5,200        5,938        (12.4%)  

Assets sold

            706        (100.0%)       543        14,931        (96.4%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total net operating income

   $  73,492      $  75,577        (2.8%)     $ 291,320      $ 302,637        (3.7%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

CASH NET OPERATING INCOME

 

     For The Three Months Ended December 31,            For the Years Ended December 31,         
     2020      2019      % Change     2020      2019      % Change  

Cash rental income (1) (5)

                

Same Park (1) (2) (4)

   $ 97,777      $ 96,850        1.0%     $ 379,947      $ 379,495        0.1%  

Non-Same Park (1)

     5,691        4,500        26.5%       20,785        13,352        55.7%  

Multifamily

     2,247        2,582        (13.0%)       9,492        10,070        (5.7%)  

Assets sold

            1,376        (100.0%)       686        22,993        (97.0%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total cash rental income

     105,715        105,308        0.4%       410,910        425,910        (3.5%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Adjusted cost of operations (1) (5)

                

Same Park (1) (6)

     28,535        27,281        4.6%       112,569        109,559        2.7%  

Non-Same Park (1)

     1,881        1,595        17.9%       7,327        4,899        49.6%  

Multifamily

     1,180        1,019        15.8%       4,264        4,137        3.1%  

Assets sold

            703        (100.0%)       143        8,614        (98.3%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total adjusted cost of operations

     31,596        30,598        3.3%       124,303        127,209        (2.3%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Cash net operating income

                

Same Park (1)

     69,242        69,569        (0.5%)       267,378        269,936        (0.9%)  

Non-Same Park (1)

     3,810        2,905        31.2%       13,458        8,453        59.2%  

Multifamily

     1,067        1,563        (31.7%)       5,228        5,933        (11.9%)  

Assets sold

            673        (100.0%)       543        14,379        (96.2%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total cash net operating income

   $ 74,119      $
 
 
74,710
 
 
     (0.8%)     $ 286,607      $ 298,701        (4.0%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) (1)

 

     For The Three Months Ended December 31,            For the Years Ended December 31,         
     2020      2019      % Change     2020      2019      % Change  

Net income

   $ 46,295      $ 61,514        (24.7%)     $ 206,705      $ 203,972        1.3%  

Net interest (income) expense

     133        (912)        114.6%       178        (1,274)        114.0%  

Depreciation and amortization

     23,668        28,386        (16.6%)       96,314        104,249        (7.6%)  

Gain on sale of real estate facilities and development rights

            (16,644)        (100.0%)       (27,273)        (16,644)        63.9%  
  

 

 

    

 

 

      

 

 

    

 

 

    

EBITDAre

   $ 70,096      $ 72,344        (3.1%)     $ 275,924      $ 290,303        (5.0%)  
  

 

 

    

 

 

      

 

 

    

 

 

    

 

(1)

Refer to page 27, Definition and Non-GAAP Disclosures, for the definitions of Same Park, Non-Same Park, Cash Rental Income, Adjusted Cost of Operations, and EBITDAre.

(2)

Same Park rental income and cash rental income include lease buyout income of $0.4 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.2 million and $1.4 million for the years ended December 31, 2020 and 2019, respectively.

(3)

Same Park rental income is presented net of (a) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.4 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively, and (b) deferred rent receivable write-offs of $0.4 million and $0.1 million for the three months ended December 31, 2020 and 2019, respectively, and $3.0 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively.

(4)

Same Park cash rental income is presented net of (a) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2020 and 2019, respectively, and $1.4 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively, and (b) rent deferrals and abatements of $0.3 million and $0 for the three months ended December 31, 2020 and 2019, respectively, and $6.7 million and $0 for the years ended December 31, 2020 and 2019, respectively.

(5)

Refer to page 6 for a reconciliation of cash rental income to rental income and adjusted cost of operations to cost of operations as reported on our GAAP statements of income.

(6)

The table below details Same Park adjusted cost of operations:

 

       For The Three Months Ended December 31,                For the Years Ended December 31,           
     2020      2019      % Change     2020      2019      % Change  

Cost of operations

                

Property taxes

   $ 9,950      $ 9,601        3.6   $ 42,360      $ 40,016        5.9

Utilities

     4,729        4,883        (3.2 %)      18,835        19,493        (3.4 %) 

Repairs and maintenance

     7,219        6,094        18.5     24,495        23,489        4.3

Payroll

     3,951        4,127        (4.3 %)      15,981        15,197        5.2

Snow removal

     195        13        1,400.0     274        1,046        (73.8 %) 

Property insurance

     1,073        1,025        4.7     4,082        3,371        21.1

Other expenses

     1,418        1,538        (7.8 %)      6,542        6,947        (5.8 %) 
  

 

 

    

 

 

      

 

 

    

 

 

    

Total cost of operations

   $ 28,535      $ 27,281        4.6   $ 112,569      $ 109,559        2.7
  

 

 

    

 

 

      

 

 

    

 

 

    

 

8


LOGO

 

     For the Three Months Ended  
     December 31, 2020      December 31, 2019      Total
% Change
 
       Industrial          Flex          Office          Total          Industrial          Flex          Office          Total    

Cash rental income (1)

                          

Northern California

   $  21,823       $ 2,390       $ 2,888       $  27,101       $  22,753       $ 2,503       $ 3,187        $  28,443         (4.7 %) 

Southern California

     9,306         4,717         224         14,247         9,011         4,779         184         13,974         2.0

Dallas

     2,971         4,680                7,651         2,977         5,214                8,191         (6.6 %) 

Austin

     2,208         6,315                8,523         1,985         5,528                7,513         13.4

Northern Virginia

     1,894         6,562         10,209         18,665         1,814         6,389         10,068         18,271         2.2

South Florida

     11,270         507         38         11,815         10,359         497         32         10,888         8.5

Seattle

     3,055         1,737         132         4,924         2,716         1,605         187         4,508         9.2

Suburban Maryland

     1,147                3,704         4,851         1,034                4,028         5,062         (4.2 %) 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     53,674         26,908         17,195         97,777         52,649         26,515         17,686         96,850         1.0

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Adjusted cost of operations (1)

                          

Northern California

     4,958         686         771         6,415         4,716         626         805         6,147         4.4

Southern California

     2,155         1,338         98         3,591         2,217         1,267         62         3,546         1.3

Dallas

     872         1,731                2,603         872         1,798                2,670         (2.5 %) 

Austin

     754         2,245                2,999         625         1,764                2,389         25.5

Northern Virginia

     571         2,100         3,980         6,651         532         2,007         4,019         6,558         1.4

South Florida

     3,035         150         16         3,201         2,998         148         32         3,178         0.7

Seattle

     780         410         55         1,245         631         366         51         1,048         18.8

Suburban Maryland

     399                1,431         1,830         357                1,388         1,745         4.9

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     13,524         8,660         6,351         28,535         12,948         7,976         6,357         27,281         4.6

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cash NOI (1)

                          

Northern California

     16,865         1,704         2,117         20,686         18,037         1,877         2,382         22,296         (7.2 %) 

Southern California

     7,151         3,379         126         10,656         6,794         3,512         122         10,428         2.2

Dallas

     2,099         2,949                5,048         2,105         3,416                5,521         (8.6 %) 

Austin

     1,454         4,070                5,524         1,360         3,764                5,124         7.8

Northern Virginia

     1,323         4,462         6,229         12,014         1,282         4,382         6,049         11,713         2.6

South Florida

     8,235         357         22         8,614         7,361         349                7,710         11.7

Seattle

     2,275         1,327         77         3,679         2,085         1,239         136         3,460         6.3

Suburban Maryland

     748                2,273         3,021         677                2,640         3,317         (8.9 %) 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 40,150       $  18,248       $  10,844       $ 69,242       $ 39,701       $  18,539       $  11,329       $ 69,569         (0.5 %) 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Same Park, Cash Rental Income, Adjusted Cost of Operations, and Cash NOI.

 

9


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     For the Years Ended  
     December 31, 2020      December 31, 2019      Total
% Change
 
       Industrial            Flex              Office              Total            Industrial            Flex              Office              Total      

Cash rental income (1)

                          

Northern California

   $ 84,337       $ 9,357       $ 12,139       $ 105,833       $ 85,234       $ 9,917       $ 12,203       $ 107,354         (1.4 %) 

Southern California

     34,879         18,604         815         54,298         35,199         18,909         757         54,865         (1.0 %) 

Dallas

     11,780         20,692                32,472         12,230         21,082                33,312         (2.5 %) 

Austin

     8,270         24,546                32,816         8,288         22,077                30,365         8.1

Northern Virginia

     7,443         24,635         39,239         71,317         7,114         25,277         41,010         73,401         (2.8 %) 

South Florida

     42,102         1,880         137         44,119         41,303         1,920         103         43,326         1.8

Seattle

     11,831         6,873         607         19,311         10,231         6,302         735         17,268         11.8

Suburban Maryland

     4,214                15,567         19,781         4,407                15,197         19,604         0.9

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     204,856         106,587         68,504         379,947         204,006         105,484         70,005         379,495         0.1

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Adjusted cost of operations (1)

                          

Northern California

     19,340         2,672         3,109         25,121         18,526         2,602         3,185         24,313         3.3

Southern California

     9,053         5,196         344         14,593         8,869         5,063         283         14,215         2.7

Dallas

     3,885         7,818                11,703         3,702         7,786                11,488         1.9

Austin

     3,022         9,019                12,041         2,778         8,065                10,843         11.0

Northern Virginia

     2,119         7,650         14,853         24,622         2,104         7,557         15,827         25,488         (3.4 %) 

South Florida

     11,841         562         67         12,470         11,262         602         113         11,977         4.1

Seattle

     3,192         1,635         224         5,051         2,417         1,492         200         4,109         22.9

Suburban Maryland

     1,431                5,537         6,968         1,427                5,699         7,126         (2.2 %) 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     53,883         34,552         24,134         112,569         51,085         33,167         25,307         109,559         2.7

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cash NOI (1)

                          

Northern California

     64,997         6,685         9,030         80,712         66,708         7,315         9,018         83,041         (2.8 %) 

Southern California

     25,826         13,408         471         39,705         26,330         13,846         474         40,650         (2.3 %) 

Dallas

     7,895         12,874                20,769         8,528         13,296                21,824         (4.8 %) 

Austin

     5,248         15,527                20,775         5,510         14,012                19,522         6.4

Northern Virginia

     5,324         16,985         24,386         46,695         5,010         17,720         25,183         47,913         (2.5 %) 

South Florida

     30,261         1,318         70         31,649         30,041         1,318         (10)        31,349         1.0

Seattle

     8,639         5,238         383         14,260         7,814         4,810         535         13,159         8.4

Suburban Maryland

     2,783                10,030         12,813         2,980                9,498         12,478         2.7

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $     150,973       $     72,035       $     44,370       $     267,378       $     152,921       $     72,317       $     44,698       $     269,936         (0.9 %) 

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Same Park, Cash Rental Income, Adjusted Cost of Operations, and Cash NOI.

 

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     For the Years Ended December 31,  
                 2020                              2019              

Commercial recurring capital expenditures (1)

     

Same Park

     

Capital improvements

   $ 9,348      $ 10,748  

Tenant improvements

     15,092        15,238  

Lease commissions

     6,673        7,623  
  

 

 

    

 

 

 

Total Same Park recurring capital expenditures

     31,113        33,609  

Non-Same Park

     

Capital improvements

     149        72  

Tenant improvements

     840        1,750  

Lease commissions

     2,205        386  
  

 

 

    

 

 

 

Total Non-Same Park recurring capital expenditures

     3,194        2,208  
  

 

 

    

 

 

 

Total recurring capital expenditures

     34,307        35,817  

Assets sold recurring capital expenditures

     16        1,034  
  

 

 

    

 

 

 

Total commercial recurring capital expenditures

     34,323        36,851  

Non-recurring property renovations (1)

     1,715        2,494  

Multifamily capital expenditures

     24      20
  

 

 

    

 

 

 

Total capital expenditures

   $ 36,062      $ 39,365  
  

 

 

    

 

 

 

Same Park recurring capital expenditures as a percentage of NOI

     11.5%        12.3%  

 

 

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Recurring Capital Expenditures and Non-recurring Property Renovations.

 

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     For the Three Months Ended      For the Years Ended  
     December 31,      December 31,  
     2020      2019      2020      2019  

Net income allocable to common shareholders

   $ 26,928      $ 27,491      $ 124,645      $ 108,703  

Adjustments

           

Gain on sale of real estate facilities

     -          (16,644)         (27,273)         (16,644)   

Depreciation and amortization

     23,668        28,386        96,314        104,249  

Net income allocable to noncontrolling interests

     7,147        7,336        33,158        29,006  

Net income allocable to restricted stock unit holders

     173        211        716        910  

FFO allocated to joint venture partner

     (16)         (44)         (118)         (149)   
  

 

 

    

 

 

    

 

 

    

 

 

 

FFO allocable to diluted common shares and units (1)

     57,900        46,736        227,442        226,075  

Non-capitalizable demolition costs

     -          -          335        -    

Acceleration of stock compensation expense due to President and Chief Executive Officer retirement

     -          -          1,687        -    

Charge related to the redemption of preferred securities

     -          11,007        -          11,007  
  

 

 

    

 

 

    

 

 

    

 

 

 

Core FFO allocable to diluted common shares and units (1)

     57,900        57,743        229,464        237,082  

Adjustments

           

Recurring capital improvements

     (3,084)         (4,861)         (9,497)         (10,820)   

Tenant improvements

     (4,909)         (5,289)         (15,932)         (16,988)   

Capitalized lease commissions

     (3,653)         (2,239)         (8,878)         (8,009)   

Total recurring capital expenditures for assets sold

     -          (221)         (16)         (1,034)   

Total multifamily capital expenditures

     (24)         -          (24)          (20)    

Non-cash rental income (2)

     627        (867)         (4,713)         (3,936)   

Non-cash stock compensation expense (3)

     1,257        965       3,961        4,956  

Cash paid for taxes in lieu of shares upon vesting of restricted stock units

     (114)         (230)         (4,216)         (6,350)   
  

 

 

    

 

 

    

 

 

    

 

 

 

FAD allocable to diluted common shares and units (1)

     48,000        45,001        190,149        194,881  

Distributions to common shareholders

     (28,863)         (28,811)         (115,396)         (115,154)   

Distributions to noncontrolling interests - common units

     (7,671)         (7,671)         (30,683)         (30,683)   

Distributions to restricted stock unit holders

     (185)         (211)         (654)         (910)   

Distributions to noncontrolling interests - joint venture

     (31)         (56)         (140)         (134)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Free cash available after fixed charges

     11,250        8,252        43,276        48,000  

Non-recurring property renovations (1)

     (1,203)         (483)         (1,715)         (2,494)   

Investment in multifamily development

     (4,504)         (2,339)         (9,598)         (4,929)   

Investment in industrial development

     (1,306)         (66)         (7,149)         (349)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Retained cash (1)

   $ 4,237      $ 5,364      $ 24,814      $ 40,228  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average outstanding

           

Common shares

     27,488        27,439        27,475        27,418  

Operating partnership units

     7,305        7,305        7,305        7,305  

Restricted stock units

     57        111        51        124  

Common share equivalents

     84        112        88        108  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total diluted common shares and units

     34,934       34,967        34,919       34,955 
  

 

 

    

 

 

    

 

 

    

 

 

 

FFO per share

   $ 1.66      $ 1.34      $ 6.51      $ 6.47  

Core FFO per share

   $ 1.66      $ 1.65      $ 6.57      $ 6.78  

FAD distribution payout ratio (4)

     76.6%        81.7%        77.2%        75.4%  

 

 

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definition of FFO, Core FFO, FAD, Non-Recurring Property Renovations and Retained Cash.

(2)

Non-cash rental income includes amortization of deferred rent receivable (net of write-offs), in-place lease intangible, tenant improvement reimbursement, and lease incentive intangible.

(3)

Amounts shown are net of accelerated stock compensation expense related to the President and Chief Executive Officer retirement, which is also excluded from the computation of Core FFO.

(4)

FAD distribution payout ratio is equal to total distributions to common shareholders, unit holders, restricted stock unit holders and our joint venture partner divided by FAD during the same reporting period.

 

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    As of December 31, 2020           As of December 31, 2019  
          % of Total                       % of Total        
          Market     WTD Average                 Market     WTD Average  
            Total             Capitalization             Rate                           Total             Capitalization             Rate          
 

 

 

     

 

 

 

Unsecured Debt:

             

$250.0 million unsecured credit facility (LIBOR + 0.825%)

  $ —                    $ —               
 

 

 

         

 

 

     

Total unsecured debt

  $ —                    $ —               
 

 

 

         

 

 

     

Preferred Equity:

             

5.200% Series W preferred stock (7,590,000 depositary shares outstanding) callable 10/20/21

  $ 189,750      3.4       $ 189,750      2.8  

5.250% Series X preferred stock (9,200,000 depositary shares outstanding) callable 9/21/22

    230,000      4.1         230,000      3.5  

5.200% Series Y preferred stock (8,000,000 depositary shares outstanding) callable 12/7/22

    200,000      3.6         200,000      3.0  

4.875% Series Z preferred stock (13,000,000 depositary shares outstanding) callable 11/4/24

    325,000      5.9         325,000      4.9  
 

 

 

         

 

 

     

Total preferred equity

  $ 944,750        17.0     5.10     $ 944,750        14.2     5.10
 

 

 

         

 

 

     
             
 

 

 

         

 

 

     

Total debt and preferred equity

  $ 944,750        17.0     5.10     $ 944,750        14.2     5.10
 

 

 

         

 

 

     
             

Common stock (27,488,547 and 27,440,953 shares outstanding as of December 31, 2020 and December 31, 2019, respectively) (1)

  $ 3,652,403     65.6       $ 4,524,190      67.8  

Common operating partnership units (7,305,355 units outstanding as of December 31, 2020 and December 31,2019) (1)

    970,663      17.4         1,204,434      18.0  
 

 

 

         

 

 

     

Total common equity (1)

  $ 4,623,066        83.0       $ 5,728,624        85.8  
 

 

 

         

 

 

     

Total market capitalization

  $          5,567,816      100.0       $          6,673,374      100.0  
 

 

 

         

 

 

     
    For the year ended December 31, 2020           For the year ended December 31, 2019  

Interest expense and related expenses (2)

  $ 548          $ 611     

Preferred distributions

    48,186            54,346     
 

 

 

         

 

 

     

Total fixed charges and preferred distributions

  $ 48,734          $ 54,957     
 

 

 

         

 

 

     
             

Ratio of EBITDAre to fixed charges and preferred distributions

    5.7x             5.3x      

Ratio of FFO to total fixed charges and preferred distributions (3)

    5.7x             5.3x      

Ratio of debt and preferred Equity to EBITDAre (4)

    3.4x             3.3x      

 

 

(1)

Total common equity is calculated as the total number of common stock and operating partnership units outstanding multiplied by the Company’s closing share price at the end of each respective period shown. Closing share prices on December 31, 2020 and December 31, 2019 were $132.87 and $164.87, respectively.

(2)

Interest expense and related expenses includes facility fees associated with our unsecured credit facility.

(3)

Ratio of FFO to total fixed charges and preferred distributions is calculated by dividing FFO excluding fixed charges and preferred distributions by total fixed charges and preferred distributions.

(4)

Ratio of debt and preferred equity to EBITDAre is calculated as total debt and preferred equity divided by EBITDAre. Ratio of debt and preferred equity to EBITDAre as of December 31, 2020 is calculated using EBITDAre for the year ended December 31, 2020.

 

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Industry Concentration as of December 31, 2020 (1)

 

        
                   Percentage of  
                         Total Rental Income        

Business services

           19.8%  

Warehouse, distribution, transportation and logistics

           12.9%  

Computer hardware, software and related services

           11.1%  

Retail, food, and automotive

           8.9%  

Engineering and construction

           8.3%  

Health services

           7.6%  

Government

           6.6%  

Electronics

           3.1%  

Insurance and financial services

           2.6%  

Home furnishings

           2.6%  

Communications

           1.8%  

Aerospace/defense products and services

           1.8%  

Educational services

           1.0%  

Other

           11.9%  
        

 

 

 

Total

           100.0%  
        

 

 

 
        
Top 10 Customers by Total Annual Rental Income as of December 31, 2020

 

        
     Square
Footage
     Annualized      Percentage of Total  

Customer

   Rental Income (2)        Annualized Rental Income    
        

US Government

     657,000     $ 15,832       3.8%  

Amazon Inc.

     543,000       6,632       1.6%  

KZ Kitchen Cabinet & Stone

     343,000       5,321       1.3%  

Luminex Corporation

     198,000       4,472       1.1%  

ECS Federal, LLC

     142,000       2,938       0.7%  

Lockheed Martin Corporation

     124,000       2,671       0.6%  

Carbel, LLC

     236,000       2,502       0.6%  

CentralColo, LLC

     96,000       2,402       0.6%  

Applied Materials, Inc.

     162,000       2,401       0.6%  

Costco

     180,000       1,933       0.5%  
  

 

 

    

 

 

    

 

 

 

Total

         2,681,000     $ 47,104       11.4%  
  

 

 

    

 

 

    

 

 

 
        
Tenant Composition as of December 31, 2020

 

        
                   Average Tenant Size  
            Number      (in square feet)  
            of Tenants      Average square footage  

Large Tenant Portfolio (3)

        1,375       13,153 

Small Tenant Portfolio (4)

        3,605       2,138 
     

 

 

    

Total Portfolio

        4,980       5,179 
     

 

 

    

 

 

(1)

Industry concentration is categorized based on customers’ Standard Industrial Classification Code.

(2)

For leases expiring within one year, annualized rental income includes only the income to be received under the existing lease from January 1, 2021 through the respective date of expiration.

(3)

Large tenant portfolio consists of properties with average leases greater than or equal to 5,000 square feet.

(4)

Small tenant portfolio consists of properties with average leases less than 5,000 square feet.

 

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Annualized Revenue per Occupied Square Foot (1)

 
     For the Three Months            For the Years Ended       
     Ended December 31,            Ended December 31,       

                    Product Type

   2020      2019      % Change     2020      2019      % Change

Industrial

    $             13.95     $             13.63      2.3%      $             13.65     $             13.10      4.2%  

Flex

    $ 19.01     $ 18.58      2.3%      $ 18.99     $ 18.62      2.0%  

Office

    $ 24.34     $ 24.42      (0.3%)      $ 24.12     $ 24.55      (1.8%)  

Total

    $ 16.37     $ 16.09      1.7%      $ 16.17     $ 15.75      2.7%  

Annualized Revenue per Available Foot (RevPAF) (1)

 
     For the Three Months            For the Years Ended       
     Ended December 31,            Ended December 31,       

                    Product Type

   2020      2019      % Change     2020      2019      % Change

Industrial

    $             12.96     $             12.96      0.0%      $             12.67     $             12.52      1.2%  

Flex

    $ 17.32     $ 17.42      (0.6%)      $ 17.47     $ 17.28      1.1%  

Office

    $ 21.64     $ 22.54      (4.0%)      $ 21.94     $ 22.64      (3.1%)  

Total

    $ 15.06     $ 15.19      (0.9%)      $ 14.94     $ 14.89      0.3%  

Annualized Cash Rental Income per Occupied Square Foot (1)

 
     For the Three Months            For the Years Ended       
     Ended December 31,            Ended December 31,       

                    Product Type

   2020      2019      % Change     2020      2019      % Change

Industrial

    $             14.07     $             13.49      4.3    $             13.44     $             12.99      3.5%  

Flex

    $ 19.37     $ 18.55      4.4    $ 19.00     $ 18.64      1.9%  

Office

    $ 24.70     $ 24.47      0.9    $ 24.04     $ 24.23      (0.8%)  

Total

    $ 16.57     $ 15.99      3.6    $ 16.03     $ 15.65      2.4%  

Annualized Cash Rental Income per Available Foot (1)

 
     For the Three Months            For the Years Ended       
     Ended December 31,            Ended December 31,       

                    Product Type

   2020      2019      % Change     2020      2019      % Change

Industrial

    $             13.07     $             12.82      2.0%      $             12.47     $             12.42      0.4%  

Flex

    $ 17.65     $ 17.39      1.5%      $ 17.48     $ 17.30      1.0%  

Office

    $ 21.96     $ 22.59      (2.8%)      $ 21.87     $ 22.35      (2.1%)  

Total

    $ 15.24     $ 15.10      0.9%      $ 14.81     $ 14.79      0.1%  

 

(1)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Same Park, Revenue per Occupied Square Foot, Revenue per Available Square Foot, Cash Rental Income per Occupied Square Foot, and Cash Rental Income per Available Square Foot.

 

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Rentable Square Footage of Same Park Properties by Product Type as of December 31, 2020  

Markets                                     

       Industrial         Flex         Office         Total         % of Total      
          

Northern Virginia

     507     1,440     1,970     3,917     15.3%  

South Florida

     3,728     126     12     3,866     15.1%  

Silicon Valley

     3,094     367     -       3,461     13.5%  

East Bay

     3,297     53     -       3,350     13.1%  

Dallas

     1,300     1,587     -       2,887     11.2%  

Austin

     755     1,208     -       1,963     7.6%  

Los Angeles County

     1,256     317     31     1,604     6.2%  

Seattle

     1,052     270     28     1,350     5.3%  

Suburban Maryland

     394     -       751     1,145     4.5%  

Orange County

     810     101     -       911     3.5%  

San Diego County

     233     535     -       768     3.0%  

Mid-Peninsula

     -       94     340     434     1.7%  

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     16,426     6,098     3,132     25,656     100.0%  

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Percentage by Product Type

     64.0     23.8     12.2     100.0  
          
Same Park Weighted Average Occupancy Rates by Product Type for the Three Months Ended December 31, 2020  

    

          

Markets

             Industrial         Flex         Office         Total  

    

                                   

Northern Virginia

       95.4%       97.1%       89.3%       93.0%  

South Florida

       95.2%       82.7%       100.0%       94.8%  

Silicon Valley

       96.0%       88.5%       -       95.2%  

East Bay

       87.6%       88.5%       -       87.7%  

Dallas

       88.5%       80.8%       -       84.3%  

Austin

       95.8%       95.5%       -       95.6%  

Los Angeles County

       95.5%       94.7%       94.5%       95.3%  

Seattle

       92.0%       96.7%       59.6%       92.3%  

Suburban Maryland

       86.0%       -       89.1%       88.1%  

Orange County

       93.0%       98.8%       -       93.6%  

San Diego County

       99.2%       93.9%       -       95.5%  

Mid-Peninsula

       -       87.7%       86.2%       86.6%  

Total

       92.9%       91.1%       88.8%       92.0%  
          
Same Park Weighted Average Occupancy Rates by Product Type for the Year Ended December 31, 2020  
          

Markets

             Industrial         Flex         Office         Total  

    

                                   

Northern Virginia

       94.6%       95.4%       90.2%       92.7%  

South Florida

       93.8%       83.9%       100.0%       93.5%  

Silicon Valley

       96.3%       90.0%       -       95.6%  

East Bay

       87.0%       91.4%       -       87.0%  

Dallas

       90.9%       85.7%       -       88.0%  

Austin

       95.6%       94.4%       -       94.9%  

Los Angeles County

       95.3%       95.5%       97.9%       95.4%  

Seattle

       95.8%       96.9%       76.3%       95.6%  

Suburban Maryland

       84.1%       -       92.4%       89.5%  

Orange County

       93.0%       94.5%       -       93.2%  

San Diego County

       97.8%       95.1%       -       96.0%  

Mid-Peninsula

       -       87.0%       91.5%       90.5%  

Total

       92.8%       92.0%       90.8%       92.4%  

 

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Rentable Square Footage of Same Park Properties by Size as of December 31, 2020 (1)  

    

                         

Markets                                         

                                                         Large Tenant         Small Tenant                 Total          
            

Northern Virginia

           2,479     1,438     3,917

South Florida

           3,107     759     3,866

Silicon Valley

           2,835     626     3,461

East Bay

           3,052     298     3,350

Dallas

           1,758     1,129     2,887

Austin

           1,718     245     1,963

Los Angeles County

           712     892     1,604

Seattle

           951     399     1,350

Suburban Maryland

           537     608     1,145

Orange County

           513     398     911

San Diego County

           -       768     768

Mid-Peninsula

           -       434     434

 

        

 

 

   

 

 

   

 

 

 

Total

           17,662     7,994     25,656

 

        

 

 

   

 

 

   

 

 

 

Percentage by Size

           68.8     31.2     100.0
            
Same Park Weighted Average Occupancy Rates by Size for the Three Months Ended December 31, 2020 (1)  

    

 

Markets

                 Large Tenant     Small Tenant     Total  
            

Northern Virginia

           92.6     93.6     93.0

South Florida

           95.0     94.2     94.8

Silicon Valley

           96.2     90.8     95.2

East Bay

           86.6     98.0     87.7

Dallas

           85.7     82.1     84.3

Austin

           96.1     92.3     95.6

Los Angeles County

           97.5     93.6     95.3

Seattle

           91.6     93.7     92.3

Suburban Maryland

           83.0     92.6     88.1

Orange County

           92.8     94.8     93.6

San Diego County

           -       95.5     95.5

Mid-Peninsula

           -       86.6     86.6

Total

           92.1     91.7     92.0
            
Same Park Weighted Average Occupancy Rates by Size for the Year Ended December 31, 2020 (1)  

    

 

Markets

                     Large Tenant             Small Tenant         Total  
            

Northern Virginia

           91.8     94.2     92.7

South Florida

           93.5     93.6     93.5

Silicon Valley

           96.3     92.7     95.6

East Bay

           85.9     98.5     87.0

Dallas

           90.1     84.8     88.0

Austin

           95.6     90.1     94.9

Los Angeles County

           97.5     93.7     95.4

Seattle

           95.7     95.4     95.6

Suburban Maryland

           87.8     91.0     89.5

Orange County

           92.3     94.3     93.2

San Diego County

           -       96.0     96.0

Mid-Peninsula

           -       90.5     90.5

Total

           92.3     92.5     92.4

 

(1)

The Company’s “large tenant” portfolio consists of properties with average leases greater than or equal to 5,000 square feet while the “small tenant” portfolio consists of properties with average leases less than 5,000 square feet.

 

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Rentable Square Footage of Properties by Product Type as of December 31, 2020  
   

Markets

       Industrial         Flex         Office         Total         % of Total      
          

Northern Virginia

     1,810     1,440     1,970     5,220     18.8%  

South Florida

     3,728     126     12     3,866     13.9%  

Silicon Valley

     3,094     446     -         3,540     12.7%  

East Bay

     3,297     53     -         3,350     12.1%  

Dallas

     1,300     1,587     -         2,887     10.4%  

Los Angeles County

     1,946     317     31     2,294     8.3%  

Austin

     755     1,208     -         1,963     7.1%  

Seattle

     1,052     270     28     1,350     4.9%  

Suburban Maryland

     394     -         751     1,145     4.1%  

Orange County

     810     101     -         911     3.3%  

San Diego County

     233     535     -         768     2.8%  

Mid-Peninsula

     -         94     340     434     1.6%  

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     18,419     6,177     3,132     27,728     100.0

 

  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Percentage by Product Type

     66.4     22.3     11.3     100.0  
          
Weighted Average Occupancy Rates by Product Type for the Three Months Ended December 31, 2020  

    

 

Markets

         Industrial     Flex     Office     Total  
          

Northern Virginia

       93.5%       97.1%       89.3%       92.9%  

South Florida

       95.2%       82.7%       100.0%       94.8%  

Silicon Valley

       96.0%       88.4%       -         95.0%  

East Bay

       87.6%       88.5%       -         87.7%  

Dallas

       88.5%       80.8%       -         84.3%  

Los Angeles County

       91.5%       94.7%       94.5%       92.0%  

Austin

       95.8%       95.5%       -         95.6%  

Seattle

       92.0%       96.7%       59.6%       92.3%  

Suburban Maryland

       86.0%       -         89.1%       88.1%  

Orange County

       93.0%       98.8%       -         93.6%  

San Diego County

       99.2%       93.9%       -         95.5%  

Mid-Peninsula

       -         87.7%       86.2%       86.6%  

Total

       92.5%       91.1%       88.8%       91.8%  
          

Weighted Average Occupancy Rates by Product Type for the Year Ended December 31, 2020

 

    

 

Markets

             Industrial         Flex         Office         Total  

    

          

Northern Virginia

       92.2%       95.4%       90.2%       92.3%  

South Florida

       93.8%       83.9%       100.0%       93.5%  

Silicon Valley

       96.3%       89.7%       -         95.5%  

East Bay

       87.0%       91.4%       -         87.0%  

Dallas

       90.9%       85.7%       -         88.0%  

Los Angeles County

       88.5%       95.5%       97.9%       89.6%  

Austin

       95.6%       94.4%       -         94.9%  

Seattle

       95.8%       96.9%       76.3%       95.6%  

Suburban Maryland

       84.1%       -         92.4%       89.5%  

Orange County

       93.0%       94.5%       -         93.2%  

San Diego County

       97.8%       95.1%       -         96.0%  

Mid-Peninsula

       -         87.0%       91.5%       90.5%  

Total

       92.1%       91.9%       90.8%       91.9%  

 

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Rentable Square Footage of Properties by Size as of December 31, 2020 (1)

 

    

 

Markets

                                                      Large     Small             Total          
          

Northern Virginia

         3,645     1,575     5,220

South Florida

         3,107     759     3,866

Silicon Valley

         2,835     705     3,540

East Bay

         3,052     298     3,350

Dallas

         1,758     1,129     2,887

Los Angeles County

         1,255     1,039     2,294

Austin

         1,718     245     1,963

Seattle

         951     399     1,350

Suburban Maryland

         537     608     1,145

Orange County

         513     398     911

San Diego County

         -            768     768

Mid-Peninsula

         -            434     434

 

      

 

 

   

 

 

   

 

 

 

Total

         19,371     8,357     27,728

 

      

 

 

   

 

 

   

 

 

 

Percentage by Size

         69.9     30.1     100.0
          

Weighted Average Occupancy Rates by Size for the Three Months Ended December 31, 2020 (1)

 

    

 

Markets

               Large Tenant     Small Tenant     Total  
          

Northern Virginia

         92.4     94.1     92.9

South Florida

         95.0     94.2     94.8

Silicon Valley

         96.2     90.5     95.0

East Bay

         86.6     98.0     87.7

Dallas

         85.7     82.1     84.3

Los Angeles County

         90.5     93.8     92.0

Austin

         96.1     92.3     95.6

Seattle

         91.6     93.7     92.3

Suburban Maryland

         83.0     92.6     88.1

Orange County

         92.8     94.8     93.6

San Diego County

         -            95.5     95.5

Mid-Peninsula

         -            86.6     86.6

Total

         91.8     91.9     91.8
          

Weighted Average Occupancy Rates by Size for the Year Ended December 31, 2020 (1)

 

    

 

Markets

                   Large Tenant             Small Tenant                 Total          
          

Northern Virginia

         91.4     94.3     92.3

South Florida

         93.5     93.6     93.5

Silicon Valley

         96.3     92.2     95.5

East Bay

         85.9     98.5     87.0

Dallas

         90.1     84.8     88.0

Los Angeles County

         85.8     94.1     89.6

Austin

         95.6     90.1     94.9

Seattle

         95.7     95.4     95.6

Suburban Maryland

         87.8     91.0     89.5

Orange County

         92.3     94.3     93.2

San Diego County

         -            96.0     96.0

Mid-Peninsula

         -            90.5     90.5

Total

         91.6     92.6     91.9

 

 

(1)

The Company’s “large tenant” portfolio consists of properties with average leases greater than or equal to 5,000 square feet while the “small tenant” portfolio consists of properties with average leases less than 5,000 square feet.

 

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Lease Expirations - Total Portfolio

 

            Annualized               % of Total Annualized    

Year of Lease Expiration

       Leased Square Footage          Rental Income (1)      % Total      Rental Income  
           

                2021

     5,696     $ 98,544       21.8%        21.8%  

                2022

     5,821       103,392       22.9%        22.9%  

                2023

     4,837       81,354       18.0%        18.0%  

                2024

     3,316       59,201       13.1%        13.1%  

                2025

     2,861       50,011       11.1%        11.1%  

            Thereafter

     3,227       59,710       13.1%        13.1%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     25,758     $                             452,212                   100.0%        100.0%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Industrial

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      Industrial      Rental Income  
           

                2021

     3,609     $ 52,355       20.2%        11.6%  

                2022

     3,677       54,051       20.9%        12.0%  

                2023

     3,453       50,272       19.4%        11.1%  

                2024

     2,240       34,660       13.4%        7.7%  

                2025

     1,899       27,534       10.6%        6.1%  

            Thereafter

     2,463       40,278       15.5%        8.9%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     17,341     $ 259,150       100.0%        57.4%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Flex

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      Flex      Rental Income  
           

                2021

     1,420     $ 27,691       23.7%        6.1%  

                2022

     1,482       31,027       26.5%        6.9%  

                2023

     817       16,306       14.0%        3.6%  

                2024

     710       15,017       12.9%        3.3%  

                2025

     734       16,595       14.2%        3.7%  

            Thereafter

     450       10,168       8.7%        2.2%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     5,613     $ 116,804       100.0%        25.8%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Office

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      Office      Rental Income  
           

                2021

     667     $ 18,498       24.3%        4.1%  

                2022

     662       18,314       24.0%        4.0%  

                2023

     567       14,776       19.4%        3.3%  

                2024

     366       9,524       12.5%        2.1%  

                2025

     228       5,882       7.7%        1.3%  

            Thereafter

     314       9,264       12.1%        2.0%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     2,804     $ 76,258       100.0%        16.8%  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-leasing of expiring spaces.

 

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Lease Expirations - Northern California

 

            Annualized      % of        % of Total Annualized    

Year of Lease Expiration

       Leased Square Footage          Rental Income (1)      No. CA      Rental Income  
           

                2021

     1,368     $ 27,468       22.1%        6.1%  

                2022

     1,139       20,582       16.6%        4.6%  

                2023

     1,193       21,773       17.5%        4.8%  

                2024

     881       15,465       12.5%        3.4%  

                2025

     725       10,702       8.6%        2.4%  

            Thereafter

     1,528       28,118       22.7%        6.2%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     6,834     $                             124,108                  100.0%        27.5%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Southern California

 

            Annualized      % of        % of Total Annualized    

Year of Lease Expiration

       Leased Square Footage          Rental Income (1)      So. CA      Rental Income  
           

                2021

     906     $ 17,685       24.7%        3.9%  

                2022

     1,162       21,480       29.9%        4.8%  

                2023

     636       12,154       16.9%        2.7%  

                2024

     388       8,061       11.2%        1.8%  

                2025

     284       5,161       7.2%        1.1%  

            Thereafter

     443       7,267       10.1%        1.6%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     3,819     $ 71,808       100.0%        15.9%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Dallas

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      Dallas      Rental Income  
           

                2021

     765     $ 10,262       31.1%        2.3%  

                2022

     423       5,118       15.5%        1.1%  

                2023

     546       6,500       19.7%        1.4%  

                2024

     243       3,931       11.9%        0.9%  

                2025

     247       4,979       15.1%        1.1%  

            Thereafter

     204       2,233       6.7%        0.5%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     2,428     $ 33,023       100.0%        7.3%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Austin

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      Austin      Rental Income  
           

                2021

     299     $ 5,000       13.6%        1.1%  

                2022

     407       7,625       20.8%        1.7%  

                2023

     244       4,801       13.1%        1.1%  

                2024

     259       5,713       15.6%        1.3%  

                2025

     403       8,537       23.3%        1.9%  

            Thereafter

     260       4,972       13.6%        1.1%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     1,872     $ 36,648       100.0%        8.2%  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

(1)

Annualized rental income represents annualized outgoing rents inclusive of related estimated expense recoveries. Actual rental income amounts may vary depending upon re-leasing of expiring spaces.

 

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Lease Expirations - Northern Virginia

 

            Annualized      % of        % of Total Annualized    

Year of Lease Expiration

       Leased Square Footage          Rental Income (1)      No. VA      Rental Income  
           

                2021

     1,035     $ 18,918       19.4%        4.2%  

                2022

     1,299       27,890       28.6%        6.2%  

                2023

     648       13,128       13.4%        2.9%  

                2024

     702       13,836       14.2%        3.0%  

                2025

     635       12,234       12.5%        2.7%  

            Thereafter

     536       11,579       11.9%        2.5%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     4,855     $                             97,585                   100.0%        21.5%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - South Florida

 

            Annualized      % of      % of Total Annualized  

Year of Lease Expiration

   Leased Square Footage      Rental Income (1)      So. FL      Rental Income  
           

                2021

     839     $ 9,978       21.3%        2.2%  

                2022

     974       12,708       27.1%        2.8%  

                2023

     905       11,517       24.6%        2.5%  

                2024

     591       7,585       16.2%        1.7%  

                2025

     303       3,845       8.2%        0.9%  

            Thereafter

     72       1,248       2.6%        0.3%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     3,684     $ 46,881       100.0%        10.4%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           

Lease Expirations - Suburban Maryland