Exhibit 99.2

 

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ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION FOR

THE THREE AND SIX MONTHS ENDED JUNE 30, 2021

 

       Page    

Consolidated Balance Sheets

   3

Consolidated Statements of Income

   5

Portfolio Summary

   7

Second 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

   19

Quarter- and Year-to-Date Production Statistics

   22

Definitions and Non-GAAP Disclosures

   24

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; security breaches, including ransomware, or a failure of the Company’s networks, systems or technology, which could adversely impact the Company’s operations or its business, customer and employee relationships or result in fraudulent payments; 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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           June 30, 2021               December 31, 2020            

ASSETS

      
                

Cash and cash equivalents

   $ 115,965     $ 69,083       (a
                

Real estate facilities, at cost

      

Land

     865,081       864,092    

Buildings and improvements

     2,204,461       2,186,621    
  

 

 

 

 

 

 

 

 
     3,069,542       3,050,713    

Accumulated depreciation

     (1,219,040     (1,181,402  
  

 

 

 

 

 

 

 

 
     1,850,502       1,869,311       (b

Properties held for sale, net

     12,871       26,273    

Land and building held for development, net

     52,529       40,397    
  

 

 

 

 

 

 

 

 
     1,915,902       1,935,981    
                

Rent receivable

     1,903       1,519       (c

Deferred rent receivable

     37,589       36,788    

Other assets

     15,165       14,334       (d
  

 

 

 

 

 

 

 

 

 Total assets

   $ 2,086,524     $ 2,057,705    
  

 

 

 

 

 

 

 

 
      

LIABILITIES AND EQUITY

      
      

Accrued and other liabilities

   $ 88,989     $ 82,065       (e
  

 

 

 

 

 

 

 

 

Total liabilities

     88,989       82,065    
                

Equity

      

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

      

Preferred stock

     944,750       944,750    

Common stock

     275       274    

Paid-in capital

     739,336       738,022       (f

Accumulated earnings

     89,800       73,631       (g
  

 

 

 

 

 

 

 

 

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

     1,774,161       1,756,677    

Noncontrolling interests

     223,374       218,963    
  

 

 

 

 

 

 

 

 

  Total equity

     1,997,535       1,975,640    
  

 

 

 

 

 

 

 

 

 Total liabilities and equity

   $ 2,086,524     $ 2,057,705    
  

 

 

 

 

 

 

 

 

 

 

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

 

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  (a)

   Change in cash and cash equivalents         
  

Beginning cash balance at December 31, 2020

         $ 69,083  
  

Net cash provided by operating activities

               148,107  
  

Net cash used in investing activities

           (1,325
  

Net cash used in financing activities

           (99,900
           

 

 

 

  

Ending cash balance at June 30, 2021

         $ 115,965  
           

 

 

 

           

  (b)

   Change in real estate facilities, at cost         
  

Beginning balance at December 31, 2020

         $ 1,869,311  
  

Recurring capital improvements

           4,436  
  

Tenant improvements, gross

           7,065  
  

Capitalized lease commissions

           3,404  
  

Nonrecurring capital improvements

           843  
  

Depreciation and amortization of real estate facilities

           (44,136
  

Transfer from land and building held for development, net

           9,052  
  

Transfer to properties held for sale, net

           527  
           

 

 

 

  

Ending balance at June 30, 2021

         $             1,850,502  
           

 

 

 

              Increase  

  (c)

   Change in rent receivable        June 30, 2021            December 31, 2020          (Decrease)  
     

 

 

    

 

 

    

 

 

 

  

Non-government customers

   $ 1,093      $ 646      $ 447  
  

U.S. Government customers

     810        873        (63
     

 

 

    

 

 

    

 

 

 

      $ 1,903      $ 1,519      $ 384  
     

 

 

    

 

 

    

 

 

 

              Increase  

  (d)

   Change in other assets      June 30, 2021        December 31, 2020        (Decrease)  
     

 

 

    

 

 

    

 

 

 

  

Lease intangible assets, net

   $ 7,051      $ 9,058      $ (2,007
  

Prepaid property taxes and insurance

     5,537        3,121        2,416  
  

Other

     2,577        2,155        422  
     

 

 

    

 

 

    

 

 

 

      $ 15,165      $ 14,334      $ 831  
     

 

 

    

 

 

    

 

 

 

              Increase  

  (e)

   Change in accrued and other liabilities      June 30, 2021        December 31, 2020        (Decrease)  
     

 

 

    

 

 

    

 

 

 

  

Customer security deposits

   $ 39,769      $ 38,457      $ 1,312  
  

Accrued property taxes

     15,348        12,513        2,835  
  

Customer prepaid rent

     13,047        12,518        529  
  

Lease intangible liabilities, net

     5,618        6,392        (774
  

Other

     15,207        12,185        3,022  
     

 

 

    

 

 

    

 

 

 

      $ 88,989      $ 82,065      $ 6,924  
     

 

 

    

 

 

    

 

 

 

           

  (f)

   Change in paid-in capital         
  

Beginning paid-in capital at December 31, 2020

         $ 738,022  
  

Issuance costs

           (105
  

Exercise of stock options

           906  
  

Stock compensation expense, net

           3,715  
  

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

           (3,202
           

 

 

 

  

Ending paid-in capital at June 30, 2021

         $ 739,336  
           

 

 

 

           

  (g)

   Change in accumulated earnings         
  

Beginning accumulated earnings at December 31, 2020

         $ 73,631  
  

Net income

           98,052  
  

Distributions to preferred stockholders

           (24,093
  

Distributions to common stockholders

           (57,790
           

 

 

 

  

Ending accumulated earnings at June 30, 2021

         $ 89,800  
           

 

 

 

 

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         For the Three Months Ended               For the Six Months Ended        
     June 30,   June 30,      
     2021   2020   2021   2020      

Rental income

   $ 109,364     $ 100,559     $ 217,411     $ 206,775       (a)  
          

Expenses:

          

Cost of operations

     31,849       30,131       65,067       61,394       (b)  

Depreciation and amortization

     22,514       22,963       45,499       49,582    

General and administrative

     4,799       3,004       9,181       6,327       (c)  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

     59,162       56,098       119,747       117,303    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
          

Interest and other income

     923       225       1,179       782       (d)  

Interest and other expense

     (268     (203     (479     (364     (e)  

Gain on sale of real estate facility

     19,193             19,193       19,621    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

     70,050       44,483       117,557       109,511    

Allocation to noncontrolling interests

     (12,094     (6,795     (19,505     (17,887  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income allocable to PS Business Parks, Inc.

     57,956       37,688       98,052       91,624    

Allocation to preferred stockholders

     (12,047     (12,047     (24,093     (24,093  

Allocation to restricted stock unit holders

     (314     (119     (478     (394  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income allocable to common stockholders

   $       45,595     $         25,522     $         73,481     $         67,137    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
          

Net income per share of common stock

          

Basic

   $ 1.66     $ 0.93     $ 2.67     $ 2.44    

Diluted

   $ 1.65     $ 0.93     $ 2.66     $ 2.44    
          

Weighted average common stock outstanding

          

Basic

     27,531       27,479       27,513       27,464    

Diluted

     27,632       27,560       27,611       27,557    

 

 

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 Six Months Ended      Increase  
  (a)    Rental income:          June 30, 2021                  June 30, 2020                  (Decrease)                  June 30, 2021                  June 30, 2020                  (Decrease)        
  

Same Park (1) (2)

   $ 101,471      $ 91,638      $ 9,833      $ 201,029      $ 190,015      $ 11,014  
  

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

     30        2,440        (2,410)        467        3,193        (2,726)  
  

Non-Same Park (1) (2)

     3,706        1,911        1,795        6,605        4,189        2,416  
  

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

     220        156        64        1,090        299        791  
  

Multifamily

     2,248        2,488        (240)        4,575        5,048        (473)  
  

Rental income from assets sold or held for sale (4)

     1,689        1,926        (237)        3,645        4,031        (386)  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 109,364      $ 100,559      $ 8,805      $ 217,411      $ 206,775      $ 10,636  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
          For The Three Months Ended      Increase      For the Six Months Ended      Increase  
  (b)    Cost of operations:    June 30, 2021      June 30, 2020      (Decrease)      June 30, 2021      June 30, 2020      (Decrease)  
  

Same Park (1)

   $ 28,330      $ 27,181      $ 1,149      $ 58,014      $ 55,561      $ 2,453  
  

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

     461        256        205        896        519        377  
  

Non-Same Park (1)

     1,187        878        309        2,340        1,707        633  
  

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

     13        6        7        26        12        14  
  

Multifamily

     1,177        1,002        175        2,244        2,018        226  
  

Operating expenses from assets sold or held for sale (4)

     681        808        (127)        1,547        1,577        (30)  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 31,849      $ 30,131      $ 1,718      $ 65,067      $ 61,394      $ 3,673  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
          For The Three Months Ended      Increase      For the Six Months Ended      Increase  
  (c)    General and administrative expenses:    June 30, 2021      June 30, 2020      (Decrease)      June 30, 2021      June 30, 2020      (Decrease)  
  

Compensation expense

   $ 1,610      $ 1,424      $ 186      $ 3,253      $ 3,177      $ 76  
  

Stock compensation expense

     1,820        665        1,155        3,144        1,333        1,811  
  

Professional fees and other

     1,369        915        454        2,784        1,817        967  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 4,799      $ 3,004      $ 1,795      $ 9,181      $ 6,327      $ 2,854  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
          For The Three Months Ended      Increase      For the Six Months Ended      Increase  
  (d)    Interest and other income:    June 30, 2021      June 30, 2020      (Decrease)      June 30, 2021      June 30, 2020      (Decrease)  
  

Management fee income

   $ 65      $ 63      $ 2      $ 133      $ 133      $ -  
  

Interest income

     4        42        (38)        8        345        (337)  
  

Other income

     854        120        734        1,038        304        734  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
      $ 923      $ 225      $ 698      $ 1,179      $ 782      $ 397  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
          For The Three Months Ended      Increase      For the Six Months Ended      Increase  
  (e)    Interest and other expense:    June 30, 2021      June 30, 2020      (Decrease)      June 30, 2021      June 30, 2020      (Decrease)  
  

Interest expense

   $ -      $ -      $ -      $ -      $ -      $ -  
  

Credit facilities fees & other charges

     (268)        (203)        (65)        (479)        (364)        (115)  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
      $ (268)      $ (203)      $ (65)      $ (479)      $ (364)      $ (115)  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

(1)

Refer to page 24, 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 $0.0 and $1.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.0 and $1.2 million for the six months ended June 30, 2021 and 2020, respectively, and (b) rent deferrals and abatements of $0.2 million and $4.5 million for the three months ended June 30, 2021 and 2020, respectively, and $0.5 million and $4.5 million for the six months ended June 30, 2021 and 2020, respectively. Non-Same Park rental income is presented net of (a) accounts receivable write-offs of $0.0 for the three and six months ended June 30, 2021 and 2020, and (b) rent deferrals and abatements of $0.0 for the three and six months ended June 30, 2021 and 2020.

(3)

Non-cash rental income represents amortization of deferred rent receivable (net of write-offs), in-place intangibles, tenant improvement reimbursements, and lease incentive. Same Park non-cash rental income is presented net of deferred rent receivable write-offs of $0.1 million and $2.4 million for the three months ended June 30, 2021 and 2020, respectively, and $0.2 million and $2.4 million for the six months ended June 30, 2021 and 2020, respectively. Non-Same Park non-cash rental income is presented net of deferred rent receivable write-offs of $0.0 for the three and six months ended June 30, 2021 and 2020.

(4)

Amounts shown for the three and six months ended June 30, 2021 include operating results attributable to assets held for sale comprising 244,000 square feet and an asset sold in June 2021 comprising 198,000 square feet. Amounts shown for the three months ended June 30, 2020 include operating results attributable to assets held for sale comprising 244,000 square feet, the asset sold in June 2021 comprising 198,000 square feet, and an asset sold in September 2020 comprising 40,000 square feet. Amounts shown for the six months ended June 30, 2020 include operating results attributable to assets held for sale comprising 244,000 square feet, the asset sold in June 2021 comprising 198,000 square feet, the asset sold in September 2020 comprising 40,000 square feet, and an asset sold in January 2020 comprising 113,000 square feet.

(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  
         For The Three Months Ended June 30,                     For the Six Months Ended June 30,             
                 2021                              2020                  % Change                  2021                              2020                  % Change  

Total Portfolio (1)

                 

Total rentable square footage at period end

     27,369,000        27,040,000        1.2%        27,369,000        27,040,000        1.2%  

Weighted average occupancy

     92.9%        91.6%        1.4%        92.6%        92.3%        0.3%  

Period end occupancy

     93.5%        91.8%        1.9%        93.5%        91.8%        1.9%  

Cash rental income per occupied square foot (2) (3)

                 

Industrial

   $ 14.26      $ 12.61        13.1%      $ 14.05      $ 13.04        7.7%  

Flex

   $ 20.30      $ 18.36        10.6%      $ 20.06      $ 18.87        6.3%  

Office

   $ 24.67      $ 23.95        3.0%      $ 24.86      $ 24.60        1.1%  

Total cash rental income per occupied square foot

   $ 16.55      $ 15.10        9.6%      $ 16.39      $ 15.56        5.3%  

Cash rental income per available foot (2) (3)

                 

Industrial

   $ 13.56      $ 11.54        17.5%      $ 13.29      $ 12.04        10.4%  

Flex

   $ 18.10      $ 16.83        7.5%      $ 17.97      $ 17.43        3.1%  

Office

   $ 21.34      $ 22.08        (3.4%)      $ 21.55      $ 22.64        (4.8%)  

Total cash rental income per available foot

   $ 15.37      $ 13.84        11.1%      $ 15.19      $ 14.37        5.7%  
                 

Same Park Portfolio (2)

                 

Total rentable square footage at period end

     26,271,000        26,271,000               26,271,000        26,271,000         

Weighted average occupancy

     92.9%        92.2%        0.8%        92.7%        92.5%        0.2%  

Period end occupancy

     93.5%        92.8%        0.8%        93.5%        92.8%        0.8%  

Cash rental income per occupied square foot (2) (4)

                 

Industrial

   $ 14.27      $ 12.60        13.3%      $ 14.13      $ 13.09        7.9%  

Flex

   $ 20.28      $ 18.33        10.6%      $ 20.03      $ 18.84        6.3%  

Office

   $ 24.67      $ 23.95        3.0%      $ 24.86      $ 24.60        1.1%  

Total cash rental income per occupied square foot

   $ 16.63      $ 15.13        9.9%      $ 16.52      $ 15.64        5.6%  

Cash rental income per available foot (2) (4)

                 

Industrial

   $ 13.59      $ 11.64        16.8%      $ 13.38      $ 12.12        10.4%  

Flex

   $ 18.07      $ 16.82        7.4%      $ 17.94      $ 17.41        3.0%  

Office

   $ 21.34      $ 22.08        (3.4%)      $ 21.55      $ 22.64        (4.8%)  

Total cash rental income per available foot

   $ 15.45      $ 13.95        10.8%      $ 15.30      $ 14.47        5.7%  
                 

Non-Same Park Portfolio (2)

                 

Total rentable square footage at period end

     1,098,000        769,000        42.8%        1,098,000        769,000        42.8%  

Weighted average occupancy

     92.0%        71.4%        28.9%        92.3%        84.9%        8.7%  

Period end occupancy

     93.0%        55.2%        68.5%        93.0%        55.2%        68.5%  

Cash rental income per occupied square foot (2) (5)

                 

Industrial

   $ 14.09      $ 12.93        9.0%      $ 12.63      $ 11.86        6.5%  

Flex

   $ 21.84      $ 20.87        4.6%      $ 22.27      $ 21.10        5.5%  

Office

   $      $             $      $         

Total cash rental income per occupied square foot

   $ 14.65      $ 13.92        5.2%      $ 13.34      $ 12.87        3.7%  

Cash rental income per available foot (2) (5)

                 

Industrial

   $ 12.95      $ 8.98        44.2%      $ 11.66      $ 10.01        16.5%  

Flex

   $ 20.46      $ 18.23        12.2%      $ 20.58      $ 18.96        8.5%  

Office

   $      $             $      $         

Total cash rental income per available foot

   $ 13.49      $ 9.93        35.9%      $ 12.32      $ 10.94        12.6%  
                 

Multifamily Portfolio

                 

Number of units

     395        395               395        395         

Weighted average occupancy

     94.6%        91.7%        3.1%        94.4%        93.3%        1.2%  

Period end occupancy

     94.9%        90.6%        4.8%        94.9%        90.6%        4.8%  

 

 

(1)

Excludes multifamily assets, assets held for sale comprising 244,000 square feet, an asset sold in June 2021 comprising 198,000 square feet, and assets sold in 2020 comprising 153,000 square feet for the periods shown.

(2)

Refer to page 24, Definitions and Non-GAAP Disclosures, for the definitions of Cash Rental Income per Available Foot, Cash Rental Income per Occupied Square Foot, Same Park, and Non-Same Park.

(3)

Included in the calculation of Total Park Cash Rental Income per Occupied Square Feet and Cash Rental Income per Available foot is (a) lease buyout income of $0.3 million for both of the three months ended June 30, 2021 and 2020, and $0.7 million and $0.5 million for the six months ended June 30, 2021 and 2020, respectively, (b) accounts receivable write-offs of $0.0 and $1.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.0 and $1.2 million for the six months ended June 30, 2021 and 2020, respectively, and (c) rent deferrals and abatements of $0.2 million and $4.5 million for the three months ended June 30, 2021 and 2020, respectively, and $0.5 million and $4.5 million for the six months ended June 30, 2021 and 2020, respectively.

(4)

Included in the calculation of Same Park Cash Rental Income per Occupied Square Feet and Cash Rental Income per Available foot is (a) lease buyout income of $0.3 million for both of the three months ended June 30, 2021 and 2020, and $0.7 million and $0.5 million for the six months ended June 30, 2021 and 2020, respectively, (b) accounts receivable write-offs of $0.0 and $1.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.0 and $1.2 million for the six months ended June 30, 2021 and 2020, respectively, and (c) rent deferrals and abatements of $0.2 million and $4.5 million for the three months ended June 30, 2021 and 2020, respectively, and $0.5 million and $4.5 million for the six months ended June 30, 2021 and 2020, respectively.

(5)

Included in the calculation of Non-Same Park Cash Rental Income per Occupied Square Feet and Cash Rental Income per Available foot is (a) lease buyout income of $0.0 for both of the three and six months ended June 30, 2021 and 2020, (b) accounts receivable write-offs of $0.0 for both of the three and six months ended June 30, 2021 and 2020, and (c) rent deferrals and abatements of $0.0 for both of the three and six months ended June 30, 2021 and 2020.

 

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NET OPERATING INCOME  
     For The Three Months Ended June 30,             For the Six Months Ended June 30,         
             2021                      2020              % Change              2021                      2020              % Change  

Rental income

                 

Same Park (1) (2) (3)

   $ 101,501      $ 94,078        7.9%      $ 201,496      $ 193,208        4.3%  

Non-Same Park (1)

     3,926        2,067        89.9%        7,695        4,488        71.5%  

Multifamily

     2,248        2,488        (9.6%)        4,575        5,048        (9.4%)  

Assets sold or held for sale

     1,689        1,926        (12.3%)        3,645        4,031        (9.6%)  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total rental income

     109,364        100,559        8.8%        217,411        206,775        5.1%  
  

 

 

    

 

 

       

 

 

    

 

 

    

Adjusted cost of operations (1) (5)

                 

Same Park (1) (6)

     28,330        27,181        4.2%        58,014        55,561        4.4%  

Non-Same Park (1)

     1,187        878        35.2%        2,340        1,707        37.1%  

Multifamily

     1,177        1,002        17.5%        2,244        2,018        11.2%  

Assets sold or held for sale

     674        804        (16.2%)        1,532        1,568        (2.3%)  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total

     31,368        29,865        5.0%        64,130        60,854        5.4%  
  

 

 

    

 

 

       

 

 

    

 

 

    

Net operating income

                 

Same Park (1)

     73,171        66,897        9.4%        143,482        137,647        4.2%  

Non-Same Park (1)

     2,739        1,189        130.4%        5,355        2,781        92.6%  

Multifamily

     1,071        1,486        (27.9%)        2,331        3,030        (23.1%)  

Assets sold or held for sale

     1,015        1,122        (9.5%)        2,113        2,463        (14.2%)  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total net operating income

   $ 77,996      $ 70,694        10.3%      $ 153,281      $ 145,921        5.0%  
  

 

 

    

 

 

       

 

 

    

 

 

    
CASH NET OPERATING INCOME  
         For The Three Months Ended June 30,                       For the Six Months Ended June 30,               
     2021      2020      % Change      2021      2020      % Change  

Cash rental income (1) (5)

                 

Same Park (1) (2) (4)

   $ 101,471      $ 91,638        10.7%      $ 201,029      $ 190,015        5.8%  

Non-Same Park (1)

     3,706        1,911        93.9%        6,605        4,189        57.7%  

Multifamily

     2,248        2,487        (9.6%)        4,575        5,046        (9.3%)  

Assets sold or held for sale

     1,756        1,777        (1.2%)        3,712        3,715        (0.1%)  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total cash rental income

     109,181        97,813        11.6%        215,921        202,965        6.4%  
  

 

 

    

 

 

       

 

 

    

 

 

    

Adjusted cost of operations (1) (5)

                 

Same Park (1) (6)

     28,330        27,181        4.2%        58,014        55,561        4.4%  

Non-Same Park (1)

     1,187        878        35.2%        2,340        1,707        37.1%  

Multifamily

     1,177        1,002        17.5%        2,244        2,018        11.2%  

Assets sold or held for sale

     674        804        (16.2%)        1,532        1,568        (2.3%)  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total adjusted cost of operations

     31,368        29,865        5.0%        64,130        60,854        5.4%  
  

 

 

    

 

 

       

 

 

    

 

 

    

Cash net operating income

                 

Same Park (1)

     73,141        64,457        13.5%        143,015        134,454        6.4%  

Non-Same Park (1)

     2,519        1,033        143.9%        4,265        2,482        71.8%  

Multifamily

     1,071        1,485        (27.9%)        2,331        3,028        (23.0%)  

Assets sold or held for sale

     1,082        973        11.2%        2,180        2,147        1.5%  
  

 

 

    

 

 

       

 

 

    

 

 

    

Total cash net operating income

   $ 77,813      $ 67,948        14.5%      $ 151,791      $ 142,111        6.8%  
  

 

 

    

 

 

       

 

 

    

 

 

    
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) (1)  
     For The Three Months Ended June 30,             For the Six Months Ended June 30,         
     2021      2020      % Change      2021      2020      % Change  
Net income    $ 70,050      $ 44,483        57.5%      $ 117,557      $ 109,511        7.3%  
Net interest (income) expense      132        94        40.4%        264        (72)        466.7%  
Depreciation and amortization      22,514        22,963        (2.0%)        45,499        49,582        (8.2%)  
Gain on sale of real estate facilities and development rights      (19,193)               (100.0%)        (19,193)        (19,621)        (2.2%)  
  

 

 

    

 

 

       

 

 

    

 

 

    
EBITDAre    $ 73,503      $ 67,540        8.8%      $ 144,127      $ 139,400        3.4%  
  

 

 

    

 

 

       

 

 

    

 

 

    

 

 

(1)

Refer to page 24, 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 $0.3 million for both of the three months ended June 30, 2021 and 2020, and $0.7 million and $0.5 million for the six months ended June 30, 2021 and 2020, respectively.

(3)

Same Park rental income is presented net of (a) accounts receivable write-offs of $0.0 and $1.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.0 and $1.2 million for the six months ended June 30, 2021 and 2020, respectively, and (b) deferred rent receivable write-offs of $0.1 million and $2.4 million for the three months ended June 30, 2021 and 2020, respectively, and $0.2 million and $2.4 million for the six months ended June 30, 2021 and 2020, respectively.

(4)

Same Park cash rental income is presented net of (a) accounts receivable write-offs of $0.0 and $1.1 million for the three months ended June 30, 2021 and 2020, respectively, and $0.0 and $1.2 million for the six months ended June 30, 2021 and 2020, respectively, and (b) rent deferrals and abatements of $0.2 million and $4.5 million for the three months ended June 30, 2021 and 2020, respectively, and $0.5 million and $4.5 million for the six months ended June 30, 2021 and 2020, 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 June 30,                            For the Six Months Ended June 30,                
    2021     2020     % Change     2021     2020     % Change  

Cost of operations

           

Property taxes

  $ 11,155     $ 11,102       0.5%     $ 22,579     $ 22,158       1.9%  

Utilities

    4,323       4,027       7.4%       8,960       8,999       (0.4%)  

Repairs and maintenance

    5,805       5,586       3.9%       11,274       10,950       3.0%  

Compensation

    4,114       3,886       5.9%       8,394       8,156       2.9%  

Snow removal

    9             100.0%       1,028       71       1,347.9%  

Property insurance

    1,171       856       36.8%       2,349       1,735       35.4%  

Other expenses

    1,753       1,724       1.7%       3,430       3,492       (1.8%)  
 

 

 

   

 

 

     

 

 

   

 

 

   

Total cost of operations

  $ 28,330     $ 27,181       4.2%     $ 58,014     $ 55,561       4.4%  
 

 

 

   

 

 

     

 

 

   

 

 

   

 

8


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     For the Three Months Ended  
     June 30, 2021      June 30, 2020      Total  
         Industrial               Flex               Office               Total                Industrial               Flex                Office                Total             % Change   

Cash rental income (1)

                          

Northern California

   $ 23,469      $ 2,433      $ 2,691      $ 28,593      $ 20,304      $ 2,097      $ 3,053      $ 25,454        12.3%  

Southern California

     9,780        5,214        208        15,202        7,711        4,346        201        12,258        24.0%  

Dallas

     3,154        4,823               7,977        2,694        5,253               7,947        0.4%  

Austin

     2,260        6,392               8,652        1,801        5,941               7,742        11.8%  

Northern Virginia

     4,987        5,565        8,543        19,095        4,808        5,105        8,576        18,489        3.3%  

South Florida

     11,494        485        41        12,020        9,779        445        25        10,249        17.3%  

Seattle

     3,207        1,738        136        5,081        2,816        1,616        161        4,593        10.6%  

Suburban Maryland

     1,064               3,787        4,851        983               3,923        4,906        (1.1%)  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     59,415        26,650        15,406        101,471        50,896        24,803        15,939        91,638        10.7%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Adjusted cost of operations (1)

                          

Northern California

     4,812        680        754        6,246        4,599        690        763        6,052        3.2%  

Southern California

     2,376        1,209        81        3,666        2,098        1,169        82        3,349        9.5%  

Dallas

     1,104        2,101               3,205        978        2,218               3,196        0.3%  

Austin

     769        2,372               3,141        736        2,227               2,963        6.0%  

Northern Virginia

     1,446        1,586        2,946        5,978        1,447        1,462        3,022        5,931        0.8%  

South Florida

     3,005        151        19        3,175        2,819        124        17        2,960        7.3%  

Seattle

     801        410        60        1,271        741        381        49        1,171        8.5%  

Suburban Maryland

     355               1,293        1,648        318               1,241        1,559        5.7%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     14,668        8,509        5,153        28,330        13,736        8,271        5,174        27,181        4.2%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cash NOI (1)

                          

Northern California

     18,657        1,753        1,937        22,347        15,705        1,407        2,290        19,402        15.2%  

Southern California

     7,404        4,005        127        11,536        5,613        3,177        119        8,909        29.5%  

Dallas

     2,050        2,722               4,772        1,716        3,035               4,751        0.4%  

Austin

     1,491        4,020               5,511        1,065        3,714               4,779        15.3%  

Northern Virginia

     3,541        3,979        5,597        13,117        3,361        3,643        5,554        12,558        4.5%  

South Florida

     8,489        334        22        8,845        6,960        321        8        7,289        21.3%  

Seattle

     2,406        1,328        76        3,810        2,075        1,235        112        3,422        11.3%  

Suburban Maryland

     709               2,494        3,203        665               2,682        3,347        (4.3%)  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 44,747      $       18,141      $       10,253      $       73,141      $      37,160      $      16,532      $      10,765      $ 64,457        13.5%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

(1)

Refer to page 24, Definitions and Non-GAAP Disclosures, for the definitions of Same Park, Cash Rental Income, Adjusted Cost of Operations, and Cash NOI.

 

9


LOGO

 

     For the Six Months Ended  
     June 30, 2021      June 30, 2020      Total  
         Industrial               Flex               Office               Total               Industrial               Flex                Office                Total             % Change   

Cash rental income (1)

                          

Northern California

   $ 45,845      $ 4,834      $ 5,296      $ 55,975      $ 41,344      $ 4,676      $ 6,180      $ 52,200        7.2%  

Southern California

     19,210        10,155        400        29,765        16,714        9,244        388        26,346        13.0%  

Dallas

     6,220        9,647               15,867        5,862        10,683               16,545        (4.1%)  

Austin

     4,465        12,820               17,285        3,985        12,041               16,026        7.9%  

Northern Virginia

     10,050        10,996        17,533        38,579        9,823        10,422        17,665        37,910        1.8%  

South Florida

     22,751        972        83        23,806        20,387        947        57        21,391        11.3%  

Seattle

     6,238        3,492        271        10,001        5,820        3,351        347        9,518        5.1%  

Suburban Maryland

     2,212               7,539        9,751        2,025               8,054        10,079        (3.3%)  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     116,991        52,916        31,122        201,029        105,960        51,364        32,691        190,015        5.8%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Adjusted cost of operations (1)

                          

Northern California

     9,740        1,354        1,496        12,590        9,336        1,338        1,544        12,218        3.0%  

Southern California

     4,693        2,509        156        7,358        4,397        2,522        155        7,074        4.0%  

Dallas

     2,207        4,107               6,314        1,989        4,252               6,241        1.2%  

Austin

     1,568        4,788               6,356        1,481        4,441               5,922        7.3%  

Northern Virginia

     3,093        3,386        6,538        13,017        2,930        2,968        6,496        12,394        5.0%  

South Florida

     6,029        291        39        6,359        5,663        258        31        5,952        6.8%  

Seattle

     1,613        820        130        2,563        1,544        801        103        2,448        4.7%  

Suburban Maryland

     760               2,697        3,457        669               2,643        3,312        4.4%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

     29,703        17,255        11,056        58,014        28,009        16,580        10,972        55,561        4.4%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cash NOI (1)

                          

Northern California

     36,105        3,480        3,800        43,385        32,008        3,338        4,636        39,982        8.5%  

Southern California

     14,517        7,646        244        22,407        12,317        6,722        233        19,272        16.3%  

Dallas

     4,013        5,540               9,553        3,873        6,431               10,304        (7.3%)  

Austin

     2,897        8,032               10,929        2,504        7,600               10,104        8.2%  

Northern Virginia

     6,957        7,610        10,995        25,562        6,893        7,454        11,169        25,516        0.2%  

South Florida

     16,722        681        44        17,447        14,724        689        26        15,439        13.0%  

Seattle

     4,625        2,672        141        7,438        4,276        2,550        244        7,070        5.2%  

Suburban Maryland

     1,452               4,842        6,294        1,356               5,411        6,767        (7.0%)  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total

   $ 87,288      $       35,661      $       20,066           $ 143,015      $ 77,951      $      34,784      $ 21,719      $      134,454        6.4%  

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

(1)

Refer to page 24, 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 Six Months Ended June 30,          
                         2021                                               2020                       

Commercial recurring capital expenditures (1)

     

 Same Park

     

 Capital improvements

   $ 4,376      $ 4,249  

 Tenant improvements

     6,682        7,380  

 Lease commissions

     3,208        3,027  
  

 

 

    

 

 

 

Total Same Park recurring capital expenditures

     14,266        14,656  

 Non-Same Park recurring capital expenditures

     481        26  
  

 

 

    

 

 

 

Total recurring capital expenditures

     14,747        14,682  

 Assets sold or held for sale recurring capital expenditures

     110        1,143  
  

 

 

    

 

 

 

Total commercial recurring capital expenditures

     14,857        15,825  

 Non-recurring property renovations (1)

     843        213  

 Multifamily capital expenditures

     7       
  

 

 

    

 

 

 

Total capital expenditures

   $ 15,707      $ 16,038  
  

 

 

    

 

 

 
     

Same Park recurring capital expenditures as a percentage of NOI

     9.9%        10.6%  

 

 

 

(1)

Refer to page 24, 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 Six Months Ended
     June 30,   June 30,
             2021                 2020                   2021                       2020            

Net income allocable to common stockholders

   $ 45,595     $ 25,522     $ 73,481     $ 67,137  

Adjustments

        

Gain on sale of real estate facility

     (19,193           (19,193     (19,621

Depreciation and amortization

     22,514       22,963       45,499       49,582  

Net income allocable to noncontrolling interests

     12,094       6,795       19,505       17,887  

Net income allocable to restricted stock unit holders

     314       119       478       394  

FFO allocated to joint venture partner

     (18     (38     (45     (81
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO allocable to diluted common stock and units (1)

     61,306       55,361       119,725       115,298  

Maryland reincorporation costs

     510             510        
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

     61,816       55,361       120,235       115,298  

Adjustments

        

Recurring capital improvements

     (3,761     (3,133     (4,407     (4,298

Tenant improvements

     (4,100     (3,938     (6,956     (7,343

Capitalized lease commissions

     (1,544     (1,212     (3,384     (3,041

Total recurring capital expenditures for assets sold or held for sale

     (47     (691     (110     (1,143

Total multifamily capital expenditures

     (7           (7      

Non-cash rental income (2)

     (183     (2,746     (1,490     (3,810

Non-cash stock compensation expense

     2,301       931       4,081       1,873  

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

     (5     (5     (3,202     (3,660
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAD allocable to diluted common stock and units (1)

     54,470       44,567       104,760       93,876  

Distributions to common stockholders

     (28,918     (28,856     (57,790     (57,673

Distributions to noncontrolling interests - common units

     (7,670     (7,670     (15,341     (15,341

Distributions to restricted stock unit holders

     (202     (147     (366     (329

Distributions to noncontrolling interests - joint venture

     (23     (25     (40     (63
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash available after fixed charges

     17,657       7,869       31,223       20,470  

Non-recurring property renovations (1)

     (432     (120     (843     (213

Investment in multifamily development

     (7,539     (1,248     (17,024     (2,123

Investment in industrial development

     (93     (2,435     (1,216     (2,872
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retained cash (1)

   $ 9,593     $ 4,066     $ 12,140     $ 15,262  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
        

Weighted average outstanding

        

Common stock

     27,531       27,479       27,513       27,464  

Operating partnership units

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

Restricted stock units

     32       43       35       65  

Common stock equivalents

     101       81       98       93  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total diluted common stock and units

     34,969       34,908       34,951       34,927  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
        

FFO per share

   $ 1.75     $ 1.59     $ 3.43     $ 3.30  

Core FFO per share

   $ 1.77     $ 1.59     $ 3.44     $ 3.30  

FAD distribution payout ratio (3)

     67.6%       82.3%       70.2%       78.2%  

 

 

(1)

Refer to page 24, 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 reimbursements, and lease incentives.

(3)

FAD distribution payout ratio is equal to total distributions to common stockholders, 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 June 30, 2021      As of December 31, 2020  
           Total          

% of Total

Market

  Capitalization  

         Wtd Avg    
Rate
     Total    

% of Total

Market
Capitalization

    

    Wtd Avg    

Rate

 
  

 

 

    

 

 

 
               

Unsecured Debt:

               

Credit facility borrowing ($250.0 million at LIBOR + 0.825%)

   $ -       -        -      $ -       -        -  

Unrestricted cash

     (115,965           (69,083     
  

 

 

         

 

 

      

Net debt

   $ (115,965     -        -      $ (69,083     -        -  
  

 

 

         

 

 

      
               

Preferred Equity:

               

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

   $ 189,750       3.2%         $ 189,750       3.5%     

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

     230,000       3.8%           230,000       4.2%     

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

     200,000       3.3%           200,000       3.6%     

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

     325,000       5.4%           325,000       5.9%     
  

 

 

         

 

 

      

Total preferred equity

   $ 944,750       15.7%        5.10%      $ 944,750       17.2%        5.10%  
  

 

 

         

 

 

      
               
  

 

 

         

 

 

      

Total net debt and preferred equity

   $ 828,785       13.8%        5.10%      $ 875,667       15.9%        5.10%  
  

 

 

         

 

 

      
               

Common stock (27,541,464 and 27,488,547 shares outstanding as of June 30, 2021 and December 31, 2020, respectively) (1)

   $ 4,078,340       68.1%         $ 3,652,403       66.4%     

Common operating partnership units (7,305,355 units outstanding as of June 30, 2021 and December 31, 2020) (1)

     1,081,777       18.1%           970,663       17.7%     
  

 

 

         

 

 

      

Total common equity and operating partnership units (1)

   $       5,160,117       86.2%         $       4,623,066       84.1%     
  

 

 

         

 

 

      
               

Total implied market capitalization

   $ 5,988,902       100.0%         $ 5,498,733       100.0%     
  

 

 

         

 

 

      
     For the Six Months Ended      For the year ended  
     June 30, 2021      December 31, 2020  

Interest expense and related expenses (2)

   $ 272           $ 548       

Preferred distributions

     24,093             48,186       
  

 

 

         

 

 

      

Total fixed charges and preferred distributions

   $ 24,365           $ 48,734       
  

 

 

         

 

 

      
               

Ratio of EBITDAre to fixed charges and preferred distributions

     5.9x             5.7x       

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

     5.9x             5.7x       

Ratio of net debt and preferred equity to EBITDAre (4)

     2.9x             3.2x       

 

 

 

(1)

Total common equity is calculated as the total number of shares of common stock and operating partnership units outstanding multiplied by the Company’s closing stock price at the end of each respective period shown. Closing stock prices on June 30, 2021 and December 31, 2020 were $148.08 and $132.87, 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 net debt and preferred equity to EBITDAre is calculated as total net debt and preferred equity divided by EBITDAre. Ratio of net debt and preferred equity to EBITDAre as of June 30, 2021 is calculated using annualized EBITDAre for the six months ended June 30, 2021.

 

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Industry Concentration as of June 30, 2021 (1) (2)  
                      
                   Percentage of
      Total Rental Income      
 

Business services

           21.3%  

Logistics

           13.3%  

Technology

           10.3%  

Retail, food, and automotive

           9.1%  

Construction and engineering

           8.1%  

Health services

           7.2%  

Government

           6.3%  

Electronics

           3.1%  

Home furnishings

           2.5%  

Insurance and financial services

           2.4%  

Communications

           1.8%  

Aerospace/defense

           1.8%  

Education

           1.0%  

Other

           11.8%  
        

 

 

 

Total

           100.0%  
        

 

 

 
                      
Top 10 Customers by Total Annual Rental Income as of June 30, 2021 (2)  
                      

Customer

   Square
    Footage    
     Annualized
     Rental Income (3)     
     Percentage of Total
    Annualized Rental Income    
 
                      

US Government

     602,000    $ 13,637      3.1%  

Amazon Inc.

     543,000      6,709      1.5%  

KZ Kitchen Cabinet & Stone

     370,000      5,385      1.2%  

Luminex Corporation

     199,000      4,508      1.0%  

ECS Federal, LLC

     133,000      2,895      0.7%  

Lockheed Martin Corporation

     124,000      2,703      0.6%  

CentralColo, LLC

     96,000      2,431      0.6%  

Applied Materials, Inc.

     162,000      2,431      0.6%  

Carbel, LLC

     236,000      2,270      0.5%  

Great Way Trading & Transportation, Inc.

     176,000      2,038      0.5%  
  

 

 

    

 

 

    

 

 

 

Total

     2,641,000    $ 45,007      10.3%  
  

 

 

    

 

 

    

 

 

 

 

 

(1)

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

(2)

Excludes assets held for sale as of June 30, 2021.

(3)

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

 

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Rentable Square Footage of Same Park Properties by Product Type as of June 30, 2021 (1)  
                                    

Markets

        Industrial                   Flex                    Office                  Total                 % of Total       
                                    

Northern Virginia

     1,564      1,242      1,726      4,532      17.1%  

South Florida

     3,728      126      12      3,866      14.7%  

Silicon Valley

     3,094      367      -        3,461      13.2%  

East Bay

     3,297      53      -        3,350      12.8%  

Dallas

     1,300      1,587      -        2,887      11.0%  

Austin

     755      1,208      -        1,963      7.5%  

Los Angeles County

     1,256      317      31      1,604      6.1%  

Seattle

     1,052      270      28      1,350      5.1%  

Suburban Maryland

     394      -        751      1,145      4.4%  

Orange County

     810      101      -        911      3.5%  

San Diego County

     233      535      -        768      2.9%  

Mid-Peninsula

     -        94      340      434      1.7%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     17,483      5,900      2,888      26,271      100.0%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Percentage by Product Type

     66.5%        22.5%        11.0%        100.0%     
                                    
Same Park Weighted Average Occupancy Rates by Product Type for the Three Months Ended June 30, 2021 (1)  
                                    

Markets                                                             

                Industrial                    Flex                    Office                  Total        
                                    

Northern Virginia

        93.9%        97.3%        86.8%        92.1%  

South Florida

        97.4%        81.6%        100.0%        96.9%  

Silicon Valley

        96.9%        87.7%        -        95.9%  

East Bay

        93.6%        95.0%        -        93.6%  

Dallas

        89.7%        76.8%        -        82.6%  

Austin

        97.5%        93.4%        -        95.0%  

Los Angeles County

        98.5%        94.8%        93.9%        97.7%  

Seattle

        94.5%        94.5%        69.3%        94.0%  

Suburban Maryland

        86.0%        -        88.9%        87.9%  

Orange County

        94.5%        93.9%        -        94.4%  

San Diego County

        99.3%        92.6%        -        94.6%  

Mid-Peninsula

        -        85.9%        78.5%        80.1%  

Total

        95.3%        89.1%        86.3%        92.9%  
                                    
Same Park Weighted Average Occupancy Rates by Product Type for the Six Months Ended June 30, 2021 (1)  
                                    

Markets                                                             

          Industrial      Flex      Office      Total  
                                    

Northern Virginia

        93.8%        96.7%        86.7%        91.9%  

South Florida

        96.7%        82.3%        100.0%        96.2%  

Silicon Valley

        96.4%        87.7%        -        95.5%  

East Bay

        93.1%        94.8%        -        93.1%  

Dallas

        88.6%        78.3%        -        83.0%  

Austin

        96.5%        94.1%        -        95.0%  

Los Angeles County

        98.4%        94.2%        94.5%        97.5%  

Seattle

        94.0%        94.9%        67.0%        93.6%  

Suburban Maryland

        86.0%        -        89.2%        88.1%  

Orange County

        93.9%        95.3%        -        94.1%  

San Diego County

        98.8%        92.5%        -        94.4%  

Mid-Peninsula

        -        85.0%        80.3%        81.3%  

Total

        94.7%        89.5%        86.6%        92.7%  

 

 

(1)

Excludes assets held for sale as of June 30, 2021.

 

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Rentable Square Footage of Properties by Product Type as of June 30, 2021 (1)  
                                    

Markets

        Industrial                   Flex                    Office                  Total                 % of Total       
                                    

Northern Virginia

     1,810      1,242      1,726      4,778      17.5%  

South Florida

     3,728      126      12      3,866      14.1%  

Silicon Valley

     3,094      446      -        3,540      12.9%  

East Bay

     3,297      53      -        3,350      12.2%  

Dallas

     1,383      1,587      -        2,970      10.9%  

Los Angeles County

     1,946      317      31      2,294      8.4%  

Austin

     755      1,208      -        1,963      7.2%  

Seattle

     1,052      270      28      1,350      4.9%  

Suburban Maryland

     394      -        751      1,145      4.2%  

Orange County

     810      101      -        911      3.3%  

San Diego County

     233      535      -        768      2.8%  

Mid-Peninsula

     -        94      340      434      1.6%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     18,502      5,979      2,888      27,369      100.0%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Percentage by Product Type

     67.6%        21.8%        10.6%        100.0%     

    

              
Weighted Average Occupancy Rates by Product Type for the Three Months Ended June 30, 2021 (1)  
                                    

Markets                                                             

                Industrial                    Flex                    Office                  Total        
                                    

Northern Virginia

        93.7%        97.3%        86.8%        92.1%  

South Florida

        97.4%        81.6%        100.0%        96.9%  

Silicon Valley

        96.9%        88.6%        -        95.9%  

East Bay

        93.6%        95.0%        -        93.6%  

Dallas

        86.1%        76.8%        -        81.1%  

Los Angeles County

        98.9%        94.8%        93.9%        98.2%  

Austin

        97.5%        93.4%        -        95.0%  

Seattle

        94.5%        94.5%        69.3%        94.0%  

Suburban Maryland

        86.0%        -        88.9%        87.9%  

Orange County

        94.5%        93.9%        -        94.4%  

San Diego County

        99.3%        92.6%        -        94.6%  

Mid-Peninsula

        -        85.9%        78.5%        80.1%  

Total

        95.1%        89.2%        86.3%        92.9%  
                                    
Weighted Average Occupancy Rates by Product Type for the Six Months Ended June 30, 2021 (1)  
                                    

Markets                                                             

          Industrial      Flex      Office      Total  
                                    

Northern Virginia

        93.6%        96.7%        86.7%        91.9%  

South Florida

        96.7%        82.3%        100.0%        96.2%  

Silicon Valley

        96.4%        88.4%        -        95.4%  

East Bay

        93.1%        94.8%        -        93.1%  

Dallas

        86.0%        78.3%        -        81.9%  

Los Angeles County

        98.2%        94.2%        94.5%        97.6%  

Austin

        96.5%        94.1%        -        95.0%  

Seattle

        94.0%        94.9%        67.0%        93.6%  

Suburban Maryland

        86.0%        -        89.2%        88.1%  

Orange County

        93.9%        95.3%        -        94.1%  

San Diego County

        98.8%        92.5%        -        94.4%  

Mid-Peninsula

        -        85.0%        80.3%        81.3%  

Total

        94.6%        89.6%        86.6%        92.6%  

 

 

(1)

Excludes assets held for sale as of June 30, 2021.

 

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  (1)

Excludes assets sold or held for sale as of June 30, 2021.

 

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Lease Expirations - Total Portfolio (1)  
                       

Year of Lease Expiration

       Leased Square Footage       Annualized
      Rental Income (2)       
  % Total          % of Total Annualized    
Rental Income
 
                       

                2021

     2,454     $ 43,790       9.7%        9.7%  

                2022

     5,967     105,739     23.5%        23.5%  

                2023

     5,719     97,076     21.5%        21.5%  

                2024

     4,235     75,245     16.7%        16.7%  

                2025

     3,008     52,237     11.6%        11.6%  

            Thereafter

     4,268     76,922     17.0%        17.0%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     25,651   $ 451,009             100.0%        100.0%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Industrial  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (2)
  % of
Industrial
     % of Total Annualized
Rental Income
 
                       

                2021

     1,526   $ 22,291     8.3%        5.0%  

                2022

     3,830     56,591     21.0%        12.6%  

                2023

     3,984     58,375     21.7%        12.9%  

                2024

     2,939     46,160     17.1%        10.2%  

                2025

     1,989     28,772     10.7%        6.4%  

            Thereafter

     3,458     57,068     21.2%        12.6%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     17,726   $ 269,257     100.0%        59.7%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Flex  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (2)
  % of
Flex
     % of Total Annualized
Rental Income
 
                       

                2021

     632   $ 13,194     11.7%        2.9%  

                2022

     1,439     29,822     26.5%        6.6%  

                2023

     1,144     23,142     20.6%        5.1%  

                2024

     872     17,989     16.0%        4.0%  

                2025

     801     17,798     15.8%        3.9%  

            Thereafter

     500     10,547     9.4%        2.3%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     5,388   $ 112,492     100.0%        24.8%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Office (1)  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (2)
  % of
Office
     % of Total Annualized
Rental Income
 
                       

                2021

     296   $ 8,305     12.0%        1.8%  

                2022

     698     19,326     27.9%        4.3%  

                2023

     591     15,559     22.5%        3.5%  

                2024

     424     11,096     16.0%        2.5%  

                2025

     218     5,667     8.2%        1.3%  

            Thereafter

     310     9,307     13.4%        2.1%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     2,537   $ 69,260     100.0%        15.5%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

(1)

Excludes assets held for sale as of June 30, 2021.

(2)

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  
                       

Year of Lease Expiration

       Leased Square Footage       Annualized
      Rental Income (1)       
  % of
  No. CA  
         % of Total Annualized    
Rental Income
 
                       

                2021

     509     $ 11,828       9.3%        2.6%  

                2022

     1,180     21,852     17.2%        4.9%  

                2023

     1,344     24,658     19.5%        5.5%  

                2024

     1,094     19,449     15.4%        4.3%  

                2025

     755     11,125     8.8%        2.5%  

            Thereafter

     2,051     37,810     29.8%        8.4%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     6,933   $ 126,722             100.0%        28.2%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Southern California  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (1)
  % of
So. CA
     % of Total Annualized
Rental Income
 
                       

                2021

     356   $ 7,181     9.8%        1.6%  

                2022

     1,205     22,207     30.3%        4.9%  

                2023

     890     17,095     23.3%        3.8%  

                2024

     556     11,620     15.8%        2.6%  

                2025

     328     5,860     8.0%        1.3%  

            Thereafter

     531     9,373     12.8%        2.1%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     3,866   $ 73,336     100.0%        16.3%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Dallas  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (1)
  % of
Dallas
     % of Total Annualized
Rental Income
 
                       

                2021

     273   $ 3,408     10.3%        0.8%  

                2022

     562     6,416     19.4%        1.4%  

                2023

     692     9,032     27.3%        2.0%  

                2024

     376     5,655     17.1%        1.2%  

                2025

     267     5,208     15.8%        1.2%  

            Thereafter

     281     3,328     10.1%        0.7%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     2,451   $ 33,047     100.0%        7.3%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 
                       
Lease Expirations - Austin  
                       

Year of Lease Expiration

   Leased Square Footage   Annualized
Rental Income (1)
  % of
Austin
     % of Total Annualized
Rental Income
 
                       

                2021

     252   $ 4,614     12.5%        1.0%  

                2022

     331     7,138     19.4%        1.6%  

                2023

     291     5,444     14.8%        1.2%  

                2024

     308     6,664     18.1%        1.5%  

                2025

     401     8,520     23.2%        1.9%  

            Thereafter

     293     4,426     12.0%        0.9%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

                Total

     1,876   $ 36,806     100.0%        8.1%  
  

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

(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 (1)  

Year of Lease Expiration

       Leased Square Footage          Annualized
      Rental Income (2)       
     % of
  No. VA  
         % of Total Annualized    
Rental Income
 
           

                2021

     384     $ 7,254       8.2%        1.6%  

                2022

     1,247       26,504       29.8%        5.9%  

                2023

     737       14,437       16.2%        3.2%  

                2024

     760       14,796       16.6%        3.3%  

                2025

     661       12,634       14.2%        2.8%  

            Thereafter

     664       13,375       15.0%        3.0%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     4,453     $                 89,000               100.0%                    19.8%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           
 
Lease Expirations - South Florida  

Year of Lease Expiration

   Leased Square Footage      Annualized
Rental Income (2)
     % of
So. FL
     % of Total Annualized
Rental Income
 
           

                2021

     425     $ 4,650       9.4%        1.0%  

                2022

     986       12,852       26.0%        2.9%  

                2023

     1,043       13,619       27.5%        3.0%  

                2024

     792       10,702       21.7%        2.4%  

                2025

     323       4,119       8.3%        0.9%  

            Thereafter

     217       3,507       7.1%        0.8%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     3,786     $ 49,449       100.0%        11.0%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           
 
Lease Expirations - Suburban Maryland  

Year of Lease Expiration

   Leased Square Footage      Annualized
Rental Income (2)
     % of
Sub. MD
     % of Total Annualized
Rental Income
 
           

                2021

     113     $ 1,989       9.2%        0.5%  

                2022

     182       3,694       17.1%        0.8%  

                2023

     291       6,259       29.1%        1.4%  

                2024

     141       3,143       14.6%        0.7%  

                2025

     123       2,304       10.7%        0.5%  

            Thereafter

     165       4,150       19.3%        0.9%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     1,015     $ 21,539       100.0%        4.8%  
  

 

 

    

 

 

    

 

 

    

 

 

 
           
 
Lease Expirations - Seattle  

Year of Lease Expiration

   Leased Square Footage      Annualized
Rental Income (2)
     % of
Seattle
     % of Total Annualized
Rental Income
 
           

                2021

     142     $ 2,866       13.6%        0.6%  

                2022

     274       5,076       24.1%        1.1%  

                2023

     431       6,532       30.9%        1.4%  

                2024

     208       3,216       15.2%        0.7%  

                2025

     150       2,467       11.7%        0.5%  

            Thereafter

     66       953       4.5%        0.2%  
  

 

 

    

 

 

    

 

 

    

 

 

 

                Total

     1,271     $ 21,110       100.0%        4.5%  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

 

(1)

Excludes assets held for sale as of June 30, 2021.

(2)

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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    Total Portfolio Activity (1) (2)  

Industrial

  Wtd. Avg.
    Occupancy    
    Leasing
      Volume      
    Customer
    Retention    
    Transaction Costs
    per Executed Foot    
    Transaction Costs
    as a % of Rents (3)     
        Cash Rental Rate    
Change (3)
        Net Effective Rent    
Change (3)
 

Northern Virginia

    93.7%       85,000       67.6%             $  2.26       7.9%       1.9%       4.2%  

South Florida

    97.4%       288,000       52.5%       2.30       5.6%       8.8%       19.7%  

Silicon Valley

    96.9%       191,000       88.6%       2.46       3.6%       11.8%       26.8%  

East Bay

    93.6%       178,000       77.9%       3.07       8.4%       13.4%       25.0%  

Dallas

    86.1%       105,000       63.7%       2.71       9.3%       3.0%       9.9%  

Suburban Maryland

    86.0%       11,000       100.0%       0.80       4.4%             1.3%  

Austin

    97.5%       119,000       100.0%       0.07       0.2%       5.0%       28.5%  

Los Angeles County

    98.9%       127,000       94.0%       1.16       4.3%       6.8%       9.9%  

Seattle

    94.5%       25,000       70.2%       1.38       8.8%       12.0%       18.2%  

Orange County

    94.5%       61,000       54.7%       2.69       5.6%       2.3%       10.0%  

San Diego County

    99.3%       40,000       86.9%       0.80       3.4%       1.0%       5.0%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Industrial Totals by Market

    95.1%       1,230,000       73.8%             $  2.07       5.3%       7.7%       17.9%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Flex

                                         

Northern Virginia

    97.3%       170,000       100.0%             $  2.92       6.9%       -2.4%       -3.6%  

South Florida

    81.6%       1,000       0.0%                   9.4%       22.1%  

Silicon Valley

    88.6%       31,000       75.4%       1.05       3.1%       4.9%       8.6%  

East Bay

    95.0%       5,000       87.2%       1.17       4.3%       -8.5%       -16.3%  

Dallas

    76.8%       108,000       55.9%       2.63       8.3%       2.4%       14.0%  

Austin

    93.4%       35,000       52.0%       6.76       18.5%       -4.6%       -3.0%  

Los Angeles County

    94.8%       33,000       82.7%       2.01       2.2%       7.9%       24.5%  

Seattle

    94.5%       14,000       24.6%       5.41       10.4%       7.8%       13.5%  

Orange County

    93.9%       10,000       65.8%                   1.6%       21.6%  

San Diego County

    92.6%       50,000       78.5%       2.41       7.4%       -2.6%       1.1%  

Mid-Peninsula

    85.9%       10,000       100.0%       1.10       5.9%       -15.7%       -21.0%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Flex Totals by Market

    89.2%       467,000       73.6%             $  2.85       6.8%       -0.1%       4.6%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Office (1)

                                         

Northern Virginia

    86.8%       115,000       70.6%             $  10.12       15.4%       -7.1%       -0.1%  

South Florida

    100.0%                                      

Suburban Maryland

    88.9%       54,000       72.0%       1.61       3.6%       -6.0%       3.7%  

Los Angeles County

    93.9%       4,000       100.0%       0.90       2.3%       2.8%       10.4%  

Seattle

    69.3%       8,000       0.0%       14.20       29.9%       8.5%       19.7%  

Mid-Peninsula

    78.5%       24,000       68.7%       1.20       2.4%       -13.6%       -14.6%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Office Totals by Market

    86.3%       205,000       70.2%             $  6.82       12.0%       -7.3%       -1.2%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
             

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Company Totals by Type

    92.9%       1,902,000       73.3%             $  2.77       6.7%       3.1%       10.6%  

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

 

(1)

Excludes assets held for sale as of June 30, 2021.

(2)

Average lease term for leases executed during the three months ended June 30, 2021 was 3.3 years.

(3)

Refer to page 24, Definitions and Non-GAAP Disclosures, for the definitions of Transaction Costs as a Percentage of Rents, Cash Rental Rate Change, and Average Net Effective Rent Growth.

 

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     Total Portfolio Activity (1) (2)
  

 

Industrial

   Wtd. Avg.
    Occupancy    
  Leasing
            Volume             
    Customer
        Retention        
  Transaction Costs
        per Executed Foot
    Transaction Costs
        as a % of Rents  (3)        
          Cash Rental Rate        
Change (3)
          Net Effective Rent        
Change (3)

Northern Virginia

   93.6%     230,000     81.7%                $ 3.24     7.3%   4.1%   6.8%

South Florida

   96.7%     572,000     60.8%     1.84     4.9%   8.6%   22.0%

Silicon Valley

   96.4%     399,000     89.0%     2.34     3.4%   17.6%   38.0%

East Bay

   93.1%     382,000     72.3%     2.12     5.5%   9.0%   19.5%

Dallas

   86.0%     321,000     83.5%     2.73     13.5%   2.8%   7.6%

Suburban Maryland

   86.0%     52,000     91.8%     2.53     5.5%   -0.5%   6.9%

Austin

   96.5%     145,000     97.2%     1.06     3.8%   8.0%   30.8%

Los Angeles County

   98.2%     275,000     87.9%     1.29     4.0%   7.3%   12.1%

Seattle

   94.0%     98,000     82.3%     2.27     7.5%   16.7%   31.0%

Orange County

   93.9%     143,000     54.2%     3.24     7.1%   3.8%   10.8%

San Diego County

   98.8%     65,000     83.8%     0.74     2.9%   1.1%   4.8%

 

  

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Industrial Totals by Market

           94.6%                     2,682,000             77.4%                        $                 2.16                     5.4%                                   8.7%                               19.7%