Exhibit 99.2

 

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   Table of Contents

 

Section    Page    

Corporate Data:

  

Investor Company Summary

     3  

Company Overview

     4  

Financial and Portfolio Highlights and Capitalization Data

     5  

Consolidated Financial Results:

  

Consolidated Balance Sheets

     6  

Consolidated Statements of Operations

     8  

Non-GAAP Funds from Operations (FFO) and Core FFO Reconciliations

     11  

Non-GAAP FFO, Core FFO and Funds Available for Distribution (FAD) Reconciliations

     12  

Net Operating Income (NOI), Cash NOI and EBITDAre

     13  

Same Park Cash NOI by Region and Type

     14  

Capitalization Summary

     16  

Analysis of Capital Expenditures

     17  

Portfolio Data:

  

Portfolio Summary

     18  

Portfolio Overview by Product Type

     19  

Fourth Quarter- and Year-to-Date Production Statistics

     21  

Lease Expirations

     23  

Industry Concentration and Top Ten Customers

     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, including but not limited to: (i) the duration and severity of the COVID-19 pandemic and its impact on our business and our customers; (ii) changes in general economic and business conditions, including as a result of the economic fallout of the COVID-19 pandemic; (iii) potential regulatory actions to close our facilities or limit our ability to evict delinquent customers; (iv) decreases in rental rates or increases in vacancy rates/failure to renew or replace expiring leases; (v) tenant defaults; (vi) the effect of the recent credit and financial market conditions; (vii) our failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”); (viii) the economic health of our customers; (ix) the health of our officers and directors; (x) increases in operating costs; (xi) casualties to our properties not covered by insurance; (xii) the availability and cost of capital; (xiii) increases in interest rates and its effect on our stock price; (xiv) security breaches, including ransomware, or a failure of our networks, systems or technology which could adversely impact our operations or our business, customer and employee relationships or result in fraudulent payments; (xv) the impact of inflation; and (xvi) other factors discussed 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.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    2


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Investor Company Summary

 

Executive Management Team
 

Stephen W. Wilson

       Interim President and Chief Executive Officer
 

Maria R. Hawthorne

       Interim Chief Operating Officer
 

Dan M. Chandler III

       President and Chief Executive Officer (On leave)
 

Adeel Khan

       Chief Financial Officer and Corporate Secretary
 

Trenton Groves

       SVP, Chief Accounting Officer

Board of Directors

 

Ronald L. Havner, Jr.

       Chairman of the Board
 

Stephen W. Wilson

       Director, Interim President and Chief Executive Officer
 

Maria R. Hawthorne

       Director, Interim Chief Operating Officer
 

Dan M. Chandler III

       President and Chief Executive Officer (On leave)
 

Jennifer Holden Dunbar

       Director
 

M. Christian Mitchell

       Director
 

Irene H. Oh

       Director
 

Kristy M. Pipes

       Director
 

Gary E. Pruitt

       Director
 

Robert S. Rollo

       Director
 

Joseph D. Russell, Jr.

       Director
 

Peter Schultz

       Director

Investor Relations Information

Adeel Khan

  

T: 818.244.8080, Ext. 8975

  

akhan@psbusinessparks.com

  

Equity Research Coverage

 

    
   

FIRM

  

ANALYST

  

PHONE

  

EMAIL

     
                         
 

Citi

   Manny Korchman    212-816-1382    emmanuel.korchman@citi.com   
 

Green Street Advisors

   Vince Tibone    949-640-8780    vtibone@greenstreetadvisors.com   
 

JP Morgan

   Anthony Paolone    212-622-6682    anthony.paolone@jpmorgan.com   
 

KeyBanc

   Craig Mailman    917-368-2316    cmailman@key.com   
 

Wells Fargo

   Blaine Heck    443-263-6529    blaine.heck@wellsfargo.com   

PS Business Parks, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding PS Business Parks, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of PS Business Parks, Inc. or its management. PS Business Parks, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    3


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Company Overview

As Of December 31, 2021

 

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TOTAL NUMBER OF PROPERTIES 97 TOTAL RENTABLE SQUARE FEET 27,712,000 SF TOTAL RENTABLE SQUARE FEET EXCLUDING ASSETS HELD FOR SALE 27,010,000 SF TOTAL PORTFOLIO OCCUPANCY 95.9% SAME PARK PORTFOLIO OCCUPANCY 96.4% 2021 SAME PROPERTY PORTFOLIO NOI GROUTH 7.0% 2021 SAME PROPERTY PORTFOLIO CASH NOI GROUTH 8.0% 2021 COMPANY SHARE OF CORE FFO PER SAHRE GROUTH 6.1% CREDIT RATINGS (S&P)/MOODY’S) A-,BBB/Baa2 NET DEBT TO TOTAL COMBINED MARKET CAPITALIZATION 0.1% NET DEBT & PREFERRED EQUITY TO TOTAL COMBINED MARKET CAPITALIZATION 10.6% NET DEBT TO ADJUSTED EBITDAre 2.6x SEATTLE SQUARE FEET: 1.4M% OF FY2021 NOI: 5.1% NORTHERN CALIFORNIA SQUARE FEET: 7.3M % OF FY2021 NOI: 30.8% SOUTHERN CALIFORNIA SQUARE FEET: 3.6M % OF FY2021 NOI: 15.6% AUSTIN SQUARE FEET: 2.0M % OF FY2021 NOI: 7.1% DALLAS SQUARE FEET: 3.6M % OF FY2021 NOI: 7.2% NORTHERN VIRGINIA SQUARE FEET: 4.8M % OF FY2021 NOI: 18.0% MARYLAND SQUARE FEET: 1.1M % OF FY2021 NOI: 4.2% FLORIDA SQUARE FEET: 3.9M%OF FY2021 NOI: 12.0% 89.6% OF SQUARE FEET FROM INDUSTRIAL-FLEX SPACE

  

 

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Financial and Portfolio Highlights and Capitalization Data

(unaudited, in thousands except share and per share data and portfolio  statistics)

 

    Three Months Ended  
    December 31, 2021     September 30, 2021     June 30, 2021     March 31, 2021     December 31, 2020  

Financial Results:

         

Rental income

  $ 110,844   $ 110,448   $ 109,364   $ 108,047   $ 105,088

Net income

  $ 357,009     $ 78,463     $ 70,050     $ 47,507     $ 46,295  

Net Operating Income (NOI) (1)

  $ 78,498     $ 77,785     $ 77,996     $ 75,285     $ 73,492  

Cash NOI (1)

  $ 77,641     $ 77,332     $ 77,813     $ 73,978     $ 74,119  

Core FFO (1)

  $ 63,485     $ 60,328     $ 61,816     $ 58,419     $ 57,900  

Core FFO per common stock – diluted (1)

  $ 1.81     $ 1.72     $ 1.77     $ 1.67     $ 1.66  

EBITDAre

  $ 74,224   $ 72,599   $ 73,503   $ 70,624   $ 70,096

Dividend declared per share of common stock

  $ 1.05     $ 1.05     $ 1.05     $ 1.05     $ 1.05  

Portfolio Statistics:

         

Total rentable square footage at period end (2)

    27,010,000       26,869,000       26,151,000       26,151,000       26,068,000  

Weighted average occupancy

    95.5%       94.7%       93.8%       93.2%       92.4%  

Period end Occupancy

    95.9%       95.5%       94.5%       93.6%       93.7%  

Rent Change - Cash

    6.1%       5.0%       3.1%       6.4%       4.0%  

Rent Change - Net Effective

    16.4%       15.4%       10.7%       16.4%       13.1%  

Same Park Performance:

         

Same Park Portfolio weighted average occupancy

    95.7%       94.8%       93.9%       93.2%       92.7%  

Same Park Portfolio NOI growth (3)

    8.6%       8.5%       10.5%       0.5%       -1.5%  

Same Park Portfolio Cash NOI growth (1) (3)

    6.5%       10.7%       14.7%       0.8%       0.8%  

Capitalization:

         

Total shares and units issued and outstanding at period end (4)

    34,895,162       34,851,508       34,846,819       34,822,294       34,793,902  

Total equity market capitalization

  $ 6,426,642     $ 5,462,625     $ 5,160,177     $ 5,382,830     $ 4,623,066  

Series W, X, Y and Z Preferred Stock(5)

  $ 755,000     $ 944,750     $ 944,750     $ 944,750     $ 944,750  

Total consolidated debt

  $ 32,000     $     $     $     $  

Unrestricted cash

  $ (27,074   $ (46,594   $ (115,965   $ (69,492   $ (69,083)  

Total combined market capitalization (net debt plus equity)

  $ 7,186,568     $ 6,360,781     $ 5,988,902     $ 6,258,088     $ 5,498,733  

Ratios:

         

Net debt & preferred equity to total combined market capitalization

    10.6%       14.1%       13.8%       14.0%       15.9%  

Net debt to total combined market capitalization

    0.1%       n/a                    n/a                    n/a               n/a           

Ratio of EBITDAre to fixed charges and
preferred distributions (6)

    6.9x       5.9x       6.0x       5.8x       5.8x  

Net debt and preferred equity to EBITDAre (7)

    2.6x       3.1x       2.8x       3.1x       3.1x  

 

(1)

For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section & reconciliation section beginning on page 27 and page 11 of this report, respectively.

(2)

Excludes assets sold or held for sale

(3)

Represents the quarter over quarter percentage change in NOI and Cash NOI for the Same Park Portfolio.

(4)

Total shares and units issued and outstanding at period end is comprised of common stock and common operating partnership units.

(5)

Series W Preferred Stock redeemed in November 2021.

(6)

For each period shown, ratio of total fixed charges to EBITDAre is calculated using the respective quarter’s annualized fixed charges divided by the respective quarter’s annualized EBITDAre.

(7)

For each period shown, ratio of debt and preferred equity to EBITDAre is calculated using total net debt and preferred equity reported during the quarter divided by the respective quarter’s annualized EBITDAre.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    5


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Consolidated Balance Sheets

(unaudited, in thousands)

 

         December 31, 2021             December 31, 2020      

ASSETS

    
    

Cash and cash equivalents

   $ 27,074     $ 69,083     (a) 
    

Real estate facilities, at cost

    

Land

     867,345     843,765  

Buildings and improvements

     2,239,137       2,080,895  
  

 

 

   

 

 

 
     3,106,482     2,924,660  

Accumulated depreciation

     (1,178,397     (1,101,739
  

 

 

   

 

 

 
     1,928,085     1,822,921     (b) 

Properties held for sale, net (1)

     33,609       75,138  

Land and building held for development, net

     78,990     37,922  
  

 

 

   

 

 

 
     2,040,684       1,935,981  
    

Rent receivable

     1,621       1,519     (c) 

Deferred rent receivable

     37,581     36,788  

Other assets

     16,262       14,334     (d) 
  

 

 

   

 

 

 

Total assets

   $ 2,123,222   $ 2,057,705  
  

 

 

   

 

 

 
    

LIABILITIES AND EQUITY

    
    

Accrued and other liabilities

   $ 97,151   $ 82,065     (e) 

Credit facility

     32,000        
  

 

 

   

 

 

 

Total liabilities

     129,151     82,065  
    

Equity

    

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

    

Preferred stock

     755,000     944,750  

Common stock

     275       274  

Paid-in capital

     752,444     738,022     (f) 

Accumulated earnings

     226,737       73,631     (g) 
  

 

 

   

 

 

 

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

     1,734,456     1,756,677  

Noncontrolling interests

     259,615       218,963  
  

 

 

   

 

 

 

Total equity

     1,994,071     1,975,640  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 2,123,222     $ 2,057,705  
  

 

 

   

 

 

 

 

 

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

 

(1)

As of December 31, 2021 and 2020, respectively, the Company had reclassified to properties held for sale (“AHFS”) a total of 702,000 square feet in both periods. See Definitions and Non-GAAP Disclosures for listing of assets classified as AHFS and Assets Sold in 2021 and 2020.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    6


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Consolidated Balance Sheets Variance Detail

(in thousands)

 

  (a)

   Change in cash and cash equivalents         
  

Beginning cash balance at December 31, 2020

         $ 69,083  
  

Net cash provided by operating activities

           302,237  
  

Net cash provided by investing activities

           169,366  
  

Net cash used in financing activities

           (513,612)  
           

 

 

 
  

Ending cash balance at December 31, 2021

         $ 27,074  
           

 

 

 
           

  (b)

   Change in real estate facilities, at cost         
  

Beginning balance at December 31, 2020

         $ 1,822,921  
  

Acquisition of real estate

           146,302  
  

Recurring capital improvements

           11,649  
  

Tenant improvements, gross

           14,903  
  

Capitalized lease commissions

           8,719  
  

Nonrecurring capital improvements

           2,705  
  

Depreciation and amortization of real estate facilities

           (90,175)  
  

Transfer from land and building held for development, net

           9,052  
  

Transfer to properties held for sale, net

           2,009  
           

 

 

 
  

Ending balance at December 31, 2021

         $             1,928,085  
           

 

 

 
           
  (c)    Change in rent receivable      December 31, 2021          December 31, 2020        Increase
(Decrease)
 
  

Non-government customers

   $ 1,186      $ 646      $ 540  
  

U.S. Government customers

     435        873        (438)  
     

 

 

    

 

 

    

 

 

 
      $ 1,621      $ 1,519      $ 102  
     

 

 

    

 

 

    

 

 

 
           
           
  (d)    Change in other assets    December 31, 2021      December 31, 2020      Increase
(Decrease)
 
  

Lease intangible assets, net

   $ 8,555      $ 9,058      $ (503)  
  

Prepaid property taxes and insurance

     3,439        3,121        318  
  

Other

     4,268        2,155        2,113  
     

 

 

    

 

 

    

 

 

 
      $ 16,262      $ 14,334      $ 1,928  
     

 

 

    

 

 

    

 

 

 
           
           
  (e)    Change in accrued and other liabilities    December 31, 2021      December 31, 2020      Increase
(Decrease)
 
  

Customer security deposits

   $ 42,027      $ 38,457      $ 3,570  
  

Accrued property taxes

     13,289        12,513        776  
  

Customer prepaid rent

     14,232        12,518        1,714  
  

Lease intangible liabilities, net

     6,330        6,392        (62)  
  

Accrued tax liability

     3,600               3,600  
  

Other

     17,673        12,185        5,488  
     

 

 

    

 

 

    

 

 

 
      $             97,151      $             82,065      $ 15,086  
     

 

 

    

 

 

    

 

 

 
           

  (f)

   Change in paid-in capital         
  

Beginning paid-in capital at December 31, 2020

         $ 738,022  
  

Charge related to the redemption of preferred securities

           6,434  
  

Issuance costs

           (105)  
  

Exercise of stock options

           5,011  
  

Stock compensation expense, net

           7,022  
  

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

           (3,940)  
           

 

 

 
  

Ending paid-in capital at December 31, 2021

         $ 752,444  
           

 

 

 
           

  (g)

   Change in accumulated earnings         
  

Beginning accumulated earnings at December 31, 2020

         $ 73,631  
  

Net income

           448,759  
  

Charge related to the redemption of preferred securities

           (6,434)  
  

Distributions to preferred stockholders

           (46,624)  
  

Distributions to common stockholders

           (242,595)  
           

 

 

 
  

Ending accumulated earnings at December 31, 2021

         $ 226,737  
           

 

 

 

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    7


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Consolidated Statements of Operations

(unaudited and in thousands, except per share data)

 

    Three Months Ended  
    December 31, 2021     September 30, 2021     June 30, 2021     March 31, 2021     December 31, 2020  

Rental income

  $ 110,844     $ 110,448     $ 109,364     $ 108,047     $ 105,088  
         

Expenses:

         

Cost of operations

    32,738     33,091     31,849     33,218     32,023

Depreciation and amortization

    24,130       23,857       22,514       22,985       23,668  

General and administrative

    4,728     5,148     4,799     4,382     3,152
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    61,596       62,096       59,162       60,585       58,843  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         

Interest and other income

    946       411       923       256       222  

Interest and other expense (1)

    (3,943     (224     (268     (211     (172

Gain on sale of real estate facilities

    310,758       29,924       19,193              
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    357,009     78,463     70,050     47,507     46,295

Allocation to noncontrolling interests

    (70,915     (13,850     (12,094     (7,411     (7,147
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to PS Business Parks, Inc.

    286,094     64,613     57,956     40,096     39,148

Allocation to preferred stockholders

    (10,485     (12,046     (12,047     (12,046     (12,047

Preferred securities redemption charge

    (6,434                        

Allocation to restricted stock unit holders

    (1,785     (350     (314     (164     (173
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income allocable to common stockholders

  $ 267,390   $ 52,217   $ 45,595   $ 27,886   $ 26,928
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
         

Net income per share of common stock

         

Basic

  $ 9.70     $ 1.90     $ 1.66     $ 1.01     $ 0.98  

Diluted

  $ 9.66   $ 1.89   $ 1.65   $ 1.01   $ 0.98
         

Weighted average common stock outstanding

         

Basic

    27,565       27,543       27,531       27,495       27,488  

Diluted

    27,671     27,635     27,632     27,594     27,572

 

 

(1)

Other expense includes $3.6 million related to state tax provision in the fourth quarter of 2021.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    8


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Consolidated Statements of Operations, Quarterly & Yearly (continued)

(unaudited and in thousands, except per share data)

 

     For the Three Months Ended     For the Years Ended        
     December 31,     December 31,        
     2021     2020     2021     2020        
                                

Rental income

   $         110,844     $         105,088     $ 438,703     $ 415,623       (a
          

Expenses:

          

Cost of operations

     32,738     32,023     130,896     125,513     (b

Depreciation and amortization

     24,130       23,668       93,486       96,314    

General and administrative

     4,728     3,152     19,057     14,526     (c
  

 

 

   

 

 

   

 

 

   

 

 

   

Total operating expenses

     61,596       58,843       243,439       236,353    
  

 

 

   

 

 

   

 

 

   

 

 

   
          

Interest and other income

     946       222       2,536       1,234       (d

Interest and other expense

     (3,943     (172     (4,646     (1,072     (e

Gain on sale of real estate facilities

     310,758             359,875       27,273    
  

 

 

   

 

 

   

 

 

   

 

 

   

Net income

     357,009     46,295     553,029     206,705  

Allocation to noncontrolling interests

     (70,915     (7,147     (104,270     (33,158  
  

 

 

   

 

 

   

 

 

   

 

 

   

Net income allocable to PS Business Parks, Inc.

     286,094     39,148     448,759     173,547  

Allocation to preferred stockholders

     (10,485     (12,047     (46,624     (48,186  

Preferred securities redemption charge

     (6,434           (6,434        

Allocation to restricted stock unit holders

     (1,785     (173     (2,613     (716  
  

 

 

   

 

 

   

 

 

   

 

 

   

Net income allocable to common stockholders

   $ 267,390   $ 26,928   $         393,088   $         124,645  
  

 

 

   

 

 

   

 

 

   

 

 

   
          

Net income per share of common stock

          

Basic

   $ 9.70     $ 0.98     $ 14.28     $ 4.54    

Diluted

   $ 9.66   $ 0.98   $ 14.22   $ 4.52  
          

Weighted average common stock outstanding

          

Basic

     27,565       27,488       27,534       27,475    

Diluted

     27,671     27,572     27,636     27,563  

 

 

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

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    9


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Consolidated Statements of Operations, Quarterly & Yearly (continued)

(unaudited and in thousands)

 

             For the Three Months Ended                   For the Years Ended            
         December 31,     Increase     December 31,     Increase  
(a)   Rental income:    2021     2020         (Decrease)         2021     2020         (Decrease)      
 

Same Park (1) (2)

   $ 100,006   $ 94,566   $ 5,440   $ 391,125   $ 365,881   $ 25,244
 

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

     414     (959     1,373     1,096     3,567     (2,471
 

Non-Same Park (1) (2)

     5,329     2,494     2,835     16,139     8,252     7,887
 

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

     335     632     (297     1,690     1,059     631
 

Multifamily

     2,186     2,215     (29     9,069     9,464     (395
 

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

     2,574     6,140     (3,566     19,584     27,400     (7,816
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     $ 110,844   $ 105,088   $ 5,756   $ 438,703   $ 415,623   $ 23,080
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              

(b)

 

Cost of operations:

            
 

Same Park (1)

   $ 28,185   $ 27,115   $ 1,070   $ 111,333   $ 106,860   $ 4,473
 

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

     356     391     (35     1,597     1,103     494
 

Non-Same Park (1)

     1,794     1,054     740     5,523     3,661     1,862
 

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

     23     11     12     65     29     36
 

Multifamily

     1,242     1,180     62     4,647     4,264     383
 

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

     1,138     2,272     (1,134     7,731     9,596     (1,865
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     $ 32,738   $ 32,023   $ 715   $ 130,896   $ 125,513   $ 5,383
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              

(c)

 

General and administrative expenses:

            
 

Compensation expense

   $ 1,752   $ 880   $ 872   $ 6,787   $ 5,488   $ 1,299
 

Stock compensation expense

     1,681     830     851     6,738     4,438     2,300
 

Professional fees and other

     1,295     1,442     (147     5,532     4,600     932
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     $ 4,728   $ 3,152   $ 1,576   $ 19,057   $ 14,526   $ 4,531
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              

(d)

 

Interest and other income:

            
 

Management fee income

   $ 59   $ 64   $ (5   $ 258   $ 262   $ (4
 

Interest income

     7     5     2     18     370     (352
 

Other income

     880     153     727     2,260     602     1,658
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     $ 946   $ 222   $ 724   $ 2,536   $ 1,234   $ 1,302
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
              

(e)

 

Interest and other expense:

            
 

Interest expense and credit facility fee (6)

   $ (100   $ (80   $ (20   $ (346   $ (318   $ (28
 

Amortization of credit facility origination costs

     (150     (58     (92     (382     (230     (152
 

Other expense (7)

     (3,693     (34     (3,659     (3,918     (524     (3,394
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     $ (3,943   $ (172   $ (3,771   $ (4,646   $ (1,072   $ (3,574
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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, 2021 and 2020, respectively, and $0.0 million and $1.5 million for the years ended December 31, 2021 and 2020, respectively, and (b) rent deferrals and abatements of $0.0 million and $0.2 million for the three months ended December 31, 2021 and 2020, respectively, and $0.6 million and $6.5 million for the years ended December 31, 2021 and 2020, respectively. Non-Same Park rental income is presented net of (a) accounts receivable write-offs of $0.0 million for each of the three months and years ended December 31, 2021 and 2020, and (b) rent deferrals and abatements of $0.0 million for each of the three months ended December 31, 2021 and 2020, and $0.2 million and $0.0 million for the years ended December 31, 2021 and 2020, 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 $0.1 million and $0.4 million for the three months ended December 31, 2021 and 2020, respectively, and $0.3 million and $3.0 million for the years ended December 31, 2021 and 2020, respectively. Non-Same Park non-cash rental income is presented net of deferred rent receivable write-offs of $0 million for each of the three months and years ended December 31, 2021 and 2020.

(4)

Amounts shown for the year ended December 31, 2021 and 2020 include operating results attributable the Assets Sold in 2021 and Assets Sold in 2020, respectively. Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Assets Sold in 2021 and Assets Sold 2020.

(5)

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

(6)

Interest expense was $0.0 million for each of the three months and years ended December 31, 2021 and 2020.

(7)

Other expense includes $3.6 million related to state tax provision in the fourth quarter of 2021.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    10


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Non-GAAP Funds From Operations (FFO) and Core FFO Reconciliations

(unaudited and in thousands, except per share amounts)

 

     Three Months Ended  
     December 31, 2021     September 30, 2021     June 30, 2021     March 31, 2021     December 31, 2020  

Net income allocable to common stockholders

   $                     267,390     $                       52,217     $                   45,595     $                   27,886     $                       26,928  

Adjustments

          

Gain on sale of real estate facilities

     (310,758     (29,924     (19,193            

Depreciation and amortization

     24,130       23,857       22,514       22,985       23,668  

Net income allocable to noncontrolling interests

     70,915       13,850       12,094       7,411       7,147  

Net income allocable to restricted stock unit holders

     1,785       350       314       164       173  

FFO allocated to joint venture partner

     (11     (22     (18     (27     (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FFO allocable to diluted common stock and units (1)

     53,451       60,328       61,306       58,419       57,900  

Maryland reincorporation costs

                 510              

Preferred securities redemption charge

     6,434                          

Income tax expense

     3,600                          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 63,485     $ 60,328     $ 61,816     $ 58,419     $ 57,900  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

Weighted average outstanding

          

Common stock

     27,565       27,543       27,531       27,495       27,488  

Operating partnership units

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

Restricted stock units

     46       33       32       47       57  

Common stock equivalents

     106       92      
101
 
    99       84  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted common stock and units

     35,022       34,973       34,969       34,946       34,934  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          

FFO per share

   $ 1.53     $ 1.72     $ 1.75     $ 1.67     $ 1.66  

Core FFO per share

   $ 1.81     $ 1.72     $ 1.77     $ 1.67     $ 1.66  

 

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Fourth Quarter 2021 Supplemental Financial Reporting Package    11


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Non-GAAP FFO, Core FFO and Funds Available for Distribution (FAD) Reconciliations

(unaudited and in thousands, except per share amounts)

 

     For the Three Months Ended     For the Years Ended  
     December 31,     December 31,  
     2021     2020     2021     2020  

Net income allocable to common stockholders

   $                     267,390   $                     26,928   $                     393,088   $                     124,645

Adjustments

        

Gain on sale of real estate facilities

     (310,758           (359,875     (27,273

Depreciation and amortization

     24,130     23,668     93,486     96,314

Net income allocable to noncontrolling interests

     70,915     7,147     104,270     33,158

Net income allocable to restricted stock unit holders

     1,785     173     2,613     716

FFO allocated to joint venture partner

     (11     (16     (78     (118
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO allocable to diluted common stock and units (1)

     53,451     57,900     233,504     227,442

Maryland reincorporation costs

                 510      

Non-capitalizable demolition costs

                       335

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

                       1,687

Preferred securities redemption charge

    
6,434
 
          6,434      

Income tax expense

     3,600             3,600      
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     63,485     57,900     244,048     229,464

Adjustments

        

Recurring capital improvements

     (3,233     (2,880     (11,335     (8,306

Tenant improvements

     (3,462     (4,725     (13,680     (13,972

Capitalized lease commissions

     (3,274     (3,459     (8,492     (8,153

Total recurring capital expenditures for assets sold or held for sale

     (117     (582     (1,615     (3,892

Total multifamily capital expenditures

     (6     (24     (13     (24

Non-cash rental income (2)

     (857     627     (2,800     (4,713

Non-cash stock compensation expense (3)

     2,073     1,257     8,495     3,961

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

     (260     (114     (3,940     (4,216
  

 

 

   

 

 

   

 

 

   

 

 

 

FAD allocable to diluted common stock and units (1)

     54,349     48,000     210,668     190,149

Distributions to common stockholders (4)

     (28,969     (28,863     (115,682     (115,396

Distributions to noncontrolling interests - common units (4)

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

Distributions to restricted stock unit holders (4)

     (176     (185     (721     (654

Distributions to noncontrolling interests - joint venture

     (17     (31     (77     (140
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash available after fixed charges

     17,516     11,250     63,505     43,276

Non-recurring property renovations (1)

     (1,686     (1,203     (2,705     (1,715

Investment in multifamily development

     (12,903     (4,504     (43,443     (9,598

Investment in industrial development

     (1,223     (1,306     (2,604     (7,149
  

 

 

   

 

 

   

 

 

   

 

 

 

Retained cash (1)

   $ 1,704   $ 4,237   $ 14,753   $ 24,814
  

 

 

   

 

 

   

 

 

   

 

 

 
        

Weighted average outstanding

        

Common stock

     27,565     27,488     27,534     27,475

Operating partnership units

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

Restricted stock units

     46     57     50     51

Common stock equivalents

     106     84     102     88
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted common stock and units

     35,022     34,934     34,991     34,919
  

 

 

   

 

 

   

 

 

   

 

 

 
        

FFO per share

   $ 1.53   $ 1.66   $ 6.67   $ 6.51

Core FFO per share

   $ 1.81   $ 1.66   $ 6.97   $ 6.57

FAD distribution payout ratio (5)

     67.8     76.6     69.9     77.2

 

 

(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 reimbursements, and lease incentives.

(3)

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

(4)

Excludes special dividend distribution to common stockholders, noncontrolling interest and restricted stock unit holders.

(5)

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.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    12


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Net Operating Income (NOI), Cash NOI and EBITDAre

(unaudited, in thousands)

 

NET OPERATING INCOME

          

CASH NET OPERATING INCOME

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

 

 

   

 

 

        

 

 

   

 

 

 
    2021     2020     % Change     2021     2020     % Change                2021     2020     % Change     2021     2020     % Change  
 

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

   

 

 

   

 

 

 

Rental income

                

Cash rental income (1) (5)

           

Same Park (1) (2) (3)

  $ 100,420     $ 93,607       7.3%     $ 392,221     $ 369,448       6.2%       

Same Park (1) (2) (4)

  $ 100,006     $ 94,566       5.8%     $ 391,125     $ 365,881       6.9%  

Non-Same Park (1)

    5,664       3,126       81.2%       17,829       9,311       91.5%       

Non-Same Park (1)

    5,329       2,494       113.7%       16,139       8,252       95.6%  

Multifamily

    2,186       2,215       (1.3%)       9,069       9,464       (4.2%)       

Multifamily

    2,186       2,247       (2.7%)       9,069       9,492       (4.5%)  

Assets sold or held for sale

    2,574       6,140       (58.1%)       19,584       27,400       (28.5%)       

Assets sold or held for sale

    2,466       6,408       (61.5%)       19,570       27,285       (28.3%)  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

Total rental income

    110,844       105,088       5.5%       438,703       415,623       5.6%       

Total cash rental income

    109,987       105,715       4.0%       435,903       410,910       6.1%  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

Adjusted cost of operations (1) (5)

                

Adjusted cost of operations (1) (5)

 

         

Same Park (1)

    28,185       27,115       3.9%       111,333       106,860       4.2%       

Same Park (1)

    28,185       27,115       3.9%       111,333       106,860       4.2%  

Non-Same Park (1)

    1,794       1,054       70.2%       5,523       3,661       50.9%       

Non-Same Park (1)

    1,794       1,054       70.2%       5,523       3,661       50.9%  

Multifamily

    1,242       1,180       5.3%       4,647       4,264       9.0%       

Multifamily

    1,242       1,180       5.3%       4,647       4,264       9.0%  

Assets sold or held for sale

    1,125       2,247       (49.9%)       7,636       9,518       (19.8%)       

Assets sold or held for sale

    1,125       2,247       (49.9%)       7,636       9,518       (19.8%)  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

Total adjusted cost of operations

    32,346       31,596       2.4%       129,139       124,303       3.9%       

Total adjusted cost of operations

    32,346       31,596       2.4%       129,139       124,303       3.9%  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

Net operating income

                

Cash net operating income

           

Same Park (1)

    72,235       66,492       8.6%       280,888       262,588       7.0%       

Same Park (1)

    71,821       67,451       6.5%       279,792       259,021       8.0%  

Non-Same Park (1)

    3,870       2,072       86.8%       12,306       5,650       117.8%       

Non-Same Park (1)

    3,535       1,440       145.5%       10,616       4,591       131.2%  

Multifamily

    944       1,035       (8.8%)       4,422       5,200       (15.0%)       

Multifamily

    944       1,067       (11.5%)       4,422       5,228       (15.4%)  

Assets sold or held for sale

    1,449       3,893       (62.8%)       11,948       17,882       (33.2%)       

Assets sold or held for sale

    1,341       4,161       (67.8%)       11,934       17,767       (32.8%)  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

Total net operating income

  $ 78,498     $ 73,492       6.8%     $ 309,564     $ 291,320       6.3%       

Total cash net operating income

  $ 77,641     $ 74,119       4.8%     $ 306,764     $ 286,607       7.0%  
 

 

 

   

 

 

     

 

 

   

 

 

          

 

 

   

 

 

     

 

 

   

 

 

   

 

 

(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, EBITDAre, and Cost of Operations table.

(2)

Same Park rental income and cash rental income include lease buyout income of $0.5 million and $0.3 million for the three months ended December 31, 2021 and 2020, respectively, and $1.9 million and $1.0 million for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, respectively, and $0.0 million and $1.5 million for the years ended December 31, 2021 and 2020, respectively, and (b) deferred rent receivable write-offs of $0.1 million and $0.4 million for the three months ended December 31, 2021 and 2020, respectively, and $0.3 million and $3.0 million for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, respectively, and $0.0 million and $1.5 million for the years ended December 31, 2021 and 2020, respectively, and (b) rent deferrals and abatements of $0.0 million and $0.2 million for the three months ended December 31, 2021 and 2020, respectively, and $0.6 million and $6.5 million for the years ended December 31, 2021 and 2020, respectively.

(5)

Refer to page 10 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.

 

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

 

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

 

 

     

 

 

 
    2021     2020     $ Change           2021     2020     $ Change  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net income

  $ 357,009     $     46,295     $ 310,714       $ 553,029     $ 206,705     $ 346,324  

Net interest (income) expense

    243       133       110         710       178       532  

Depreciation and amortization

    24,130       23,668       462         93,486       96,314       (2,828)  

Gain on sale of real estate facilities and development rights

        (310,758)                 (310,758)             (359,875)       (27,273)           (332,602)  

Income tax expense

    3,600             3,600         3,600             3,600  
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

EBITDAre

  $ 74,224     $ 70,096     $ 4,128       $ 290,950     $     275,924     $ 15,026  
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

 

 

 

(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, EBITDAre, and Cost of Operations table.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    13


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Same Park (1) Cash NOI by Region and Type

(in thousands)

 

     For the Three Months Ended  
     December 31, 2021            December 31, 2020            Total  
         Industrial               Flex               Office               Total                      Industrial               Flex                 Office                 Total                    % Change  

Cash rental income (1)

                        

Northern California

   $ 24,411     $ 2,603     $ 2,521     $ 29,535        $ 21,823     $ 2,390     $ 2,888     $ 27,101          9.0

Southern California

     10,057       3,373       213       13,643          9,306       3,055       224       12,585          8.4

Dallas

     3,194       2,028             5,222          2,971       1,798             4,769          9.5

Austin

     2,374       5,972             8,346          2,208       6,315             8,523          (2.1 %) 

Northern Virginia

     5,187       5,551       9,266       20,004          5,094       5,620       9,296       20,010          0.0

South Florida

     12,479       603       62       13,144          11,270       507       38       11,815          11.2

Seattle

     3,250       1,746       145       5,141          3,055       1,737       132       4,924          4.4

Suburban Maryland

     1,187             3,784       4,971          1,135             3,704       4,839          2.7
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

     62,139       21,876       15,991       100,006          56,862       21,422       16,282       94,566          5.8
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Adjusted cost of operations (1)

                        

Northern California

     5,244       710       843       6,797          4,958       686       771       6,415          6.0

Southern California

     2,334       944       84       3,362          2,155       885       98       3,138          7.1

Dallas

     829       652             1,481          872       725             1,597          (7.3 %) 

Austin

     722       2,110             2,832          754       2,245             2,999          (5.6 %) 

Northern Virginia

     1,568       1,733       3,834       7,135          1,398       1,768       3,574       6,740          5.9

South Florida

     3,414       165       41       3,620          3,035       150       16       3,201          13.1

Seattle

     822       418       56       1,296          780       410       55       1,245          4.1

Suburban Maryland

     303             1,359       1,662          349             1,431       1,780          (6.6 %) 
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

     15,236       6,732       6,217       28,185          14,301       6,869       5,945       27,115          3.9
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Cash NOI (1)

                        

Northern California

     19,167       1,893       1,678       22,738          16,865       1,704       2,117       20,686          9.9

Southern California

     7,723       2,429       129       10,281          7,151       2,170       126       9,447          8.8

Dallas

     2,365       1,376             3,741          2,099       1,073             3,172          17.9

Austin

     1,652       3,862             5,514          1,454       4,070             5,524          (0.2 %) 

Northern Virginia

     3,619       3,818       5,432       12,869          3,696       3,852       5,722       13,270          (3.0 %) 

South Florida

     9,065       438       21       9,524          8,235       357       22       8,614          10.6

Seattle

     2,428       1,328       89       3,845          2,275       1,327       77       3,679          4.5

Suburban Maryland

     884             2,425       3,309          786             2,273       3,059          8.2
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

   $ 46,903     $       15,144     $       9,774     $       71,821        $       42,561     $      14,553     $      10,337     $ 67,451          6.5
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Percentage by Product Type

     65.3     21.1     13.6     100.0        63.1     21.6     15.3     100.0     
      

                              

         Industrial      

 

 

   

                    

        Flex     

 

 

   

                  

    Office    

 

 

      

Cash NOI Period Growth by Type

           10.2%           4.1%       -5.4%         

 

 

(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.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    14


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Same Park (1) Cash NOI by Region and Type

(in thousands)

 

     For the Years Ended  
     December 31, 2021            December 31, 2020            Total  
         Industrial               Flex                 Office                 Total                        Industrial                 Flex                 Office             Total                    % Change  

Cash rental income (1)

                        

Northern California

   $ 94,414     $ 10,040     $ 10,516     $ 114,970        $ 84,337     $ 9,357     $ 12,139     $ 105,833          8.6

Southern California

     39,072       13,423       852       53,347          34,879       12,108       815       47,802          11.6

Dallas

     12,568       7,995             20,563          11,780       7,490             19,270          6.7

Austin

     9,191       25,223             34,414          8,270       24,546             32,816          4.9

Northern Virginia

     20,381       22,270       35,731       78,382          19,972       21,327       35,718       77,017          1.8

South Florida

     47,351       2,094       186       49,631          42,102       1,880       137       44,119          12.5

Seattle

     12,723       7,075       556       20,354          11,831       6,873       607       19,311          5.4

Suburban Maryland

     4,357             15,107       19,464          4,146             15,567       19,713          (1.3 %) 
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

     240,057       88,120       62,948       391,125          217,317       83,581       64,983       365,881          6.9
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Adjusted cost of operations (1)

                        

Northern California

     20,074       2,755       3,127       25,956          19,340       2,672       3,109       25,121          3.3

Southern California

     9,343       3,575       345       13,263          9,053       3,473       344       12,870          3.1

Dallas

     4,015       3,085             7,100          3,885       3,260             7,145          (0.6 %) 

Austin

     3,184       9,486             12,670          3,022       9,019             12,041          5.2

Northern Virginia

     6,190       6,823       13,970       26,983          5,785       6,333       13,264       25,382          6.3

South Florida

     12,770       607       99       13,476          11,841       562       67       12,470          8.1

Seattle

     3,279       1,701       253       5,233          3,192       1,635       224       5,051          3.6

Suburban Maryland

     1,237             5,415       6,652          1,243             5,537       6,780          (1.9 %) 
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

     60,092       28,032       23,209       111,333          57,361       26,954       22,545       106,860          4.2
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Cash NOI (1)

                        

Northern California

     74,340       7,285       7,389       89,014          64,997       6,685       9,030       80,712          10.3

Southern California

     29,729       9,848       507       40,084          25,826       8,635       471       34,932          14.7

Dallas

     8,553       4,910             13,463          7,895       4,230             12,125          11.0

Austin

     6,007       15,737             21,744          5,248       15,527             20,775          4.7

Northern Virginia

     14,191       15,447       21,761       51,399          14,187       14,994       22,454       51,635          (0.5 %) 

South Florida

     34,581       1,487       87       36,155          30,261       1,318       70       31,649          14.2

Seattle

     9,444       5,374       303       15,121          8,639       5,238       383       14,260          6.0

Suburban Maryland

     3,120             9,692       12,812          2,903             10,030       12,933          (0.9 %) 
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Total

   $ 179,965     $       60,088     $       39,739     $      279,792        $   159,956     $      56,627     $ 42,438     $      259,021          8.0
  

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

   

 

 

   

 

 

      

Percentage by Product Type

     64.3     21.5     14.2     100.0        61.7     21.9     16.4     100.0     
      

                              

         Industrial      

 

 

   

                    

        Flex     

 

 

   

                  

    Office    

 

 

      

Cash NOI Period Growth by Type

           12.5%           6.1%       -6.4%         

 

 

 

(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.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    15


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Capitalization Summary

(unaudited and in thousands, except share and per share data)

 

     As of December 31, 2021          As of December 31, 2020  
           % of Total                      % of Total        
           Market     Wtd Avg                Market     Wtd Avg  
     Total     Capitalization     Rate          Total     Capitalization     Rate  
                                           

Common Stock:

               

Common stock (27,589,807 and 27,488,547 shares outstanding as of December 31, 2021 and 2020, respectively) (1)

     $ 5,081,215     70.7          $ 3,652,403     66.4  

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

     1,345,427     18.7          970,663     17.7  
  

 

 

          

 

 

     

Total common equity and operating partnership units (1)

     $ 6,426,642       89.4          $ 4,623,066       84.1  
  

 

 

          

 

 

     

Preferred Equity:

               

5.200% Series W preferred stock (7,590,000 depositary shares outstanding) redeemed 11/20/21

     $ -       -            $ 189,750     3.5  

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

     230,000     3.2          230,000     4.2  

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

     200,000     2.8          200,000     3.6  

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

     325,000     4.5          325,000     5.9  
  

 

 

          

 

 

     

Total preferred equity

     $ 755,000       10.5     5.08        $ 944,750       17.2     5.10
  

 

 

          

 

 

     
               

Unsecured Debt:

               

Credit facility borrowing ($400.0 million at LIBOR + 0.70%) (2)

     $ 32,000     0.4     0.80        $ -      

Credit facility borrowing ($250.0 million at LIBOR + 0.825%) (2)

     -              -      

Unrestricted cash

     (27,074     (0.4 %)           (69,083     (1.3 %)   
  

 

 

          

 

 

     

Net debt

     $ 4,926     0.1          $ (69,083     (1.3 %)   
  

 

 

          

 

 

     
               
               
  

 

 

          

 

 

     

Total net debt and preferred equity

     $ 759,926       10.6     4.90        $ 875,667       15.9     5.10
  

 

 

          

 

 

     
               

Total implied market capitalization

     $                 7,186,568     100.0          $             5,498,733     100.0  
  

 

 

          

 

 

     
               

Interest expense and related expenses (3)

     $ 1,000            $ 552    

Preferred distributions

     41,940            48,188    
  

 

 

          

 

 

     

Total fixed charges and preferred distributions

     $ 42,940            $ 48,740    
  

 

 

          

 

 

     
               

Ratio of EBITDAre to fixed charges and preferred distributions (4)

     6.9x              5.8x      

Ratio of net debt and preferred equity to EBITDAre (5)

     2.6x              3.1x      

 

 

(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, 2021 and December 31, 2020 were $184.17 and $132.87, respectively.

(2)

In August 2021, the Company amended and restated its Credit Facility which increased the aggregate principal amount of the Credit Facility from $250.0 million to $400.0 million.

(3)

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

(4)

For each period shown, ratio of total fixed charges to EBITDAre is calculated using the respective quarter’s annualized fixed charges divided by the respective quarter’s annualized EBITDAre.

(5)

For each period shown, ratio of debt and preferred equity to EBITDAre is calculated using total net debt and preferred equity reported during the quarter divided by the respective quarter’s annualized EBITDAre.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    16


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Analysis of Capital Expenditures

(unaudited and in thousands, except per square foot data)

 

             For the Years Ended December 31,          
  

 

 

 
                         2021                                               2020                       
  

 

 

    

 

 

 
               

Commercial Recurring Capital Expenditures (1)

     

 Same Park

     

 Capital improvements

   $ 11,139      $ 8,288  

 Tenant improvements

     13,085        13,833  

 Lease commissions

     8,117        6,049  
  

 

 

    

 

 

 

Total Same Park Recurring Capital Expenditures

     32,341        28,170  

 Non-Same Park

     

 Capital improvements

     196        18  

 Tenant improvements

     595        139  

 Lease commissions

     375        2,104  
  

 

 

    

 

 

 

Total Non-Same Park Recurring Capital Expenditures

     1,166        2,261  
  

 

 

    

 

 

 

Total Recurring Capital Expenditures

     33,507        30,431  

Assets sold or held for sale Recurring Capital Expenditures

     1,615        3,892  
  

 

 

    

 

 

 

Total commercial Recurring Capital Expenditures

     35,122        34,323  

 Non-recurring Property Renovations (1)

     2,705        1,715  

 Multifamily capital expenditures

     13      24
  

 

 

    

 

 

 

Total capital expenditures

   $ 37,840      $ 36,062  
  

 

 

    

 

 

 
     

Same Park Recurring Capital Expenditures as a percentage of NOI

     11.5%        10.7%  

 

 

(1)

 

(1)

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

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    17


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Portfolio Summary

(unaudited)

 

PROPERTY INFORMATION  
     For the Three Months Ended December 31,      For the Years Ended December 31,  
     2021      2020      % Change      2021      2020      % Change  

Total Portfolio (1)

                 

Total rentable square footage at period end

     27,010,000        26,068,000        3.6%        27,010,000        26,068,000        3.6%  

Weighted average occupancy

     95.5%        92.4%        3.4%        94.3%        92.2%        2.3%  

Period end occupancy

     95.9%        93.7%        2.3%        95.9%        93.7%        2.3%  

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

                 

Industrial

   $ 14.35      $ 13.90        3.2%      $ 14.21      $ 13.36        6.4%  

Flex

   $ 19.70      $ 19.38        1.7%      $ 20.00      $ 19.04        5.0%  

Office

   $ 25.47      $ 25.47        0.0%      $ 25.16      $ 24.83        1.3%  

Total cash rental income per occupied square foot

   $ 16.38      $ 16.16        1.4%      $ 16.35      $ 15.68        4.3%  

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

                 

Industrial

   $ 13.94      $ 12.89        8.1%      $ 13.62      $ 12.34        10.4%  

Flex

   $ 18.52      $ 18.13        2.2%      $ 18.64      $ 17.67        5.5%  

Office

   $ 22.15      $ 22.55        (1.8%)      $ 21.80      $ 22.50        (3.1%)  

Total cash rental income per available square foot

   $ 15.64      $ 14.93        4.8%      $ 15.43      $ 14.46        6.7%  
                 

Same Park Portfolio (2)

                 

Total rentable square footage at period end

                 25,053,000                    25,053,000                           25,053,000                    25,053,000         

Weighted average occupancy

     95.7%        92.7%        3.2%        94.4%        92.7%                        1.8%  

Period end occupancy

     96.4%        93.7%        2.9%        96.4%        93.7%        2.9%  

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

                 

Industrial

   $ 14.60      $ 14.01        4.2%      $ 14.34      $ 13.41        6.9%  

Flex

   $ 19.65      $ 19.33        1.7%      $ 19.96      $ 19.00        5.1%  

Office

   $ 25.47      $ 25.47        0.0%      $ 25.16      $ 24.83        1.3%  

Total cash rental income per occupied square foot

   $ 16.67      $ 16.29        2.3%      $ 16.53      $ 15.76        4.9%  

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

                 

Industrial

   $ 14.26      $ 13.05        9.3%      $ 13.77      $ 12.47        10.4%  

Flex

   $ 18.48      $ 18.10        2.1%      $ 18.61      $ 17.65        5.4%  

Office

   $ 22.15      $ 22.55        (1.8%)      $ 21.80      $ 22.50        (3.1%)  

Total cash rental income per available square foot

   $ 15.97      $ 15.10        5.8%      $ 15.61      $ 14.60        6.9%  
                 

Non-Same Park Portfolio (2)

                 

Total rentable square footage at period end

     1,957,000        1,015,000                    92.8%        1,957,000        1,015,000        92.8%  

Weighted average occupancy

     92.2%        86.1%        7.1%        92.6%        78.2%        18.4%  

Period end occupancy

     89.4%        93.9%        (4.8%)        89.4%        93.9%        (4.8%)  

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

                 

Industrial

   $ 11.80      $ 11.32        4.2%      $ 12.40      $ 11.96        3.7%  

Flex

   $ 22.94      $ 22.34        2.7%      $ 22.19      $ 21.36        3.9%  

Total cash rental income per occupied square foot

   $ 12.26      $ 12.27        (0.1%)      $ 12.97      $ 13.00        (0.2%)  

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

                 

Industrial

   $ 10.89      $ 9.72        12.0%      $ 11.49      $ 9.22        24.6%  

Flex

   $ 20.91      $ 19.80        5.6%      $ 20.51      $ 18.92        8.4%  

Total cash rental income per available square foot

   $ 11.31      $ 10.57        7.0%      $ 12.02      $ 10.16        18.3%  
                 

Multifamily Portfolio

                 

Number of units

     395        395               395        395         

Average rent per unit (6)

   $ 2,078      $ 2,084        (0.3%)      $ 2,078      $ 2,084        (0.3%)  

Weighted average occupancy

     94.5%        93.7%        0.9%        94.5%        92.9%        1.8%  

Period end occupancy

     95.7%        94.9%        0.8%        95.7%        94.9%        0.8%  

 

(1)

Excludes assets sold of 494,000 square feet, and 0 square feet, for the three months ended December 31, 2021, and 2020, respectively, and 958,000 square feet and 153,000 square feet for the years ended December 31, 2021 and 2020, respectively. Operating metrics from our multifamily asset are excluded from total portfolio operating metrics.

(2)

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.

(3)

Included in the calculation of Total Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0.5 million and $0.3 million for the three months ended December 31, 2021 and 2020, respectively, and $1.9 million and $1.0 million for the years ended December 31, 2021 and 2020, respectively, (b) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2021 and 2020, respectively, and $0.0 million and $1.5 million for the years ended December 31, 2021 and 2020, respectively, and (c) deferred rent receivable write-offs of $0.1 million and $0.4 million for the three months ended December 31, 2021 and 2020, respectively, and $0.3 million and $3.0 million for the years ended December 31, 2021 and 2020, respectively.

(4)

Included in the calculation of Same Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0.5 million and $0.3 million for the three months ended December 31, 2021 and 2020, respectively, and $1.9 million and $1.0 million for the years ended December 31, 2021 and 2020, respectively, (b) accounts receivable write-offs of $0.1 million and $0.2 million for the three months ended December 31, 2021 and 2020, respectively, and $0.0 million and $1.5 million for the years ended December 31, 2021 and 2020, respectively, and (c) deferred rent receivable write-offs of $0.1 million and $0.4 million for the three months ended December 31, 2021 and 2020, respectively, and $0.3 million and $3.0 million for the years ended December 31, 2021 and 2020, respectively.

(5)

Included in the calculation of Non-Same Park revenue per occupied square foot and RevPAF is (a) lease buyout income of $0.0 million for both each of the three months and years ended December 31, 2021 and 2020, (b) accounts receivable write-offs of $0 for each of the three months and years ended December 31, 2021 and 2020, and (c) deferred rent receivable write-offs of $0.0 million for both the three months and years ended December 31, 2021 and 2020.

(6)

Average rent per unit is defined as the total potential monthly rental revenue (actual rent for occupied apartment units plus market rent for vacant apartment units) divided by the total number of rentable apartment units.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    18


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Total Portfolio Overview by Product Type

(unaudited, in thousands)

 

Rentable Square Footage of Properties by Product Type as of December 31, 2021 (1)

 

Markets

   Industrial      Flex      Office      Total      % of Total  
                                    

Northern California

     6,391        593        340                        7,324        27.1%  

Southern California

     2,989      582      31      3,602      13.3%  

Dallas

     2,242        793               3,035        11.3%  

Austin

     755      1,208             1,963      7.3%  

Northern Virginia

     1,810        1,242        1,726        4,778        17.7%  

South Florida

     3,728      126      12      3,866      14.3%  

Seattle

     1,052        270        28        1,350        5.0%  

Suburban Maryland

     341             751      1,092      4.0%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     19,308                        4,814                        2,888        27,010                        100.0%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Percentage by Product Type

     71.5%        17.8%        10.7%        100.0%     

 

         Weighted Average Occupancy Rates by Product Type for the    
Three Months Ended December 31, 2021 (1)
              Weighted Average Occupancy Rates by Product Type for the    
Year Ended December 31, 2021 (1)

Markets

       Industrial            Flex            Office            Total                   Industrial            Flex            Office            Total    
                                                

Northern California

   97.0%    95.3%    75.6%    95.9%       95.6%    91.4%    78.4%    94.4%

Southern California

   98.5%    95.8%    96.0%    98.0%       97.7%    94.8%    95.8%    97.2%

Dallas

   94.9%    92.1%       94.1%       90.1%    88.2%       89.5%

Austin

   99.1%    89.7%       93.3%       97.5%    92.6%       94.5%

Northern Virginia

   93.9%    98.1%    87.9%    92.8%       94.1%    97.4%    86.9%    92.4%

South Florida

   98.6%    95.7%    100.0%    98.5%       97.6%    87.1%    100.0%    97.3%

Seattle

   98.2%    92.6%    68.1%    96.5%       95.5%    94.4%    68.0%    94.7%

Suburban Maryland

   97.9%       89.5%    92.1%       98.0%       89.4%    92.1%

Total

   97.2%    94.0%    86.8%    95.5%       95.8%    93.2%    86.5%    94.3%

 

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(1)

Excludes assets sold or held for sale as of December 31, 2021.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    19


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Same Park Portfolio Overview by Product Type

(unaudited, in thousands)

 

Rentable Square Footage of Same Park Properties by Product Type as of December 31, 2021 (1)

Markets

   Industrial      Flex      Office      Total      % of Total  
                                    

Northern California

     6,391        514        340        7,245        28.9%  

Southern California

     2,299      582      31      2,912      11.6%  

Dallas

     1,300        793               2,093        8.4%  

Austin

     755      1,208             1,963      7.8%  

Northern Virginia

     1,564        1,242        1,726        4,532        18.1%  

South Florida

     3,728      126      12      3,866      15.4%  

Seattle

     1,052        270        28        1,350        5.4%  

Suburban Maryland

     341             751      1,092      4.4%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     17,430                        4,735                        2,888                        25,053                        100.0%  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Percentage by Product Type

     69.6%        18.9%        11.5%        100.0%     

 

         Same Park Weighted Average Occupancy Rates by Product    
Type for the Three  Months Ended December 31, 2021 (1)
          Same Park Weighted Average Occupancy Rates by Product    
Type for the Year Ended December  31, 2021 (1)

Markets

   Industrial    Flex    Office    Total           Industrial    Flex    Office    Total
                                                

Northern California

   97.0%    96.0%    75.6%    95.9%       95.6%    91.4%    78.4%    94.5%

Southern California

   98.1%    95.8%    96.0%    97.7%       97.4%    94.8%    95.8%    96.9%

Dallas

   95.1%    92.1%       93.9%       91.2%    88.2%       90.1%

Austin

   99.1%    89.7%       93.3%       97.5%    92.6%       94.5%

Northern Virginia

   98.7%    98.1%    87.9%    94.4%       95.6%    97.4%    86.9%    92.8%

South Florida

   98.6%    95.7%    100.0%    98.5%       97.6%    87.1%    100.0%    97.3%

Seattle

   98.2%    92.6%    68.1%    96.5%       95.5%    94.4%    68.0%    94.7%

Suburban Maryland

   97.9%       89.5%    92.1%       98.0%       89.4%    92.1%

Total

   97.7%    94.1%    86.8%    95.7%       96.1%    93.2%    86.5%    94.4%

 

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(1)

Excludes assets sold or held for sale as of December 31, 2021.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    20


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Fourth Quarter 2021 Production Statistics

(unaudited)

 

    Total Portfolio Activity (1) (2)

Industrial (1)

  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 California

  97.0%     376,000     79.6%           $  3.92     6.6%   10.3%   23.9%

Southern California

  98.5%     195,000   85.7%     1.66   3.4%   11.6%   25.6%

Dallas

  94.9%     152,000     72.5%     3.37     9.5%   7.8%   18.8%

Austin

  99.1%     86,000   46.6%     6.26   10.2%   23.2%   81.7%

Northern Virginia

  93.9%     107,000     36.8%     4.94     13.0%   0.8%   3.6%

South Florida

  98.6%     231,000   69.9%     1.00   2.7%   16.0%   31.2%

Seattle

  98.2%     79,000     54.5%     3.60     6.9%   11.5%   22.2%

Suburban Maryland

  97.9%     20,000   100.0%     7.05   29.3%   -3.0%   -0.8%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Industrial Totals by Market

  97.2%     1,246,000     74.6%           $  3.24     6.8%   11.5%   25.7%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Flex (1)

                             

Northern California

  95.3%     47,000     76.6%           $  0.75     1.9%   4.3%   9.0%

Southern California

  95.8%     44,000   80.9%     1.04   3.1%   0.7%   3.9%

Dallas

  92.1%     73,000     82.7%     2.82     11.4%   8.8%   18.4%

Austin

  89.7%     48,000   67.0%     6.63   16.5%   7.1%   21.9%

Northern Virginia

  98.1%     72,000     94.1%     2.15     7.8%   -7.8%   0.5%

South Florida

  95.7%     1,000   100.0%         0.0%   7.0%   14.3%

Seattle

  92.6%     17,000     50.5%     0.95     2.5%   2.5%   8.5%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Flex Totals by Market

  94.0%     302,000   69.7%           $  2.56   8.0%   1.2%   8.0%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Office

                             

Northern California

  75.6%     29,000     70.7%           $ 0.88     1.6%   -9.6%   -4.2%

Southern California

  96.0%     3,000   56.8%     1.10   2.3%   3.5%   11.2%

Northern Virginia

  87.9%     134,000     82.8%     3.88     3.9%   0.4%   7.1%

South Florida

  100.0%                    

Seattle

  68.1%     4,000     74.1%           1.5%   10.8%

Suburban Maryland

  89.5%     37,000   98.9%     4.77   8.2%   -8.8%   -0.5%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Office Totals by Market

  86.8%     207,000     71.7%           $  3.51     4.1%   -2.3%   4.7%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Company Totals by Type

  95.5%     1,755,000     70.6%           $  3.15     6.4%   6.1%   16.4%

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes assets sold or held for sale as of December 31, 2021.

(2)

Average lease term for leases executed during the quarter-ended December 31, 2021 was 3.6 years.

(3)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Transaction Costs as a Percentage of Rents, Cash Rental Rate Change, and Net Effective Rent Change.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    21


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2021 Production Statistics

(unaudited)

 

    Total Portfolio Activity (1) (2)

Industrial (1)

  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 California

  95.6%     1,532,000     76.3%            $  3.10     5.4%   12.1%   27.3%

Southern California

  97.7%     923,000   79.9%     2.27   5.8%   7.6%   16.2%

Dallas

  90.1%     589,000     79.0%     3.66     14.4%   4.9%   13.6%

Austin

  97.5%     294,000   74.0%     2.67   6.9%   13.5%   41.0%

Northern Virginia

  94.1%     482,000     63.2%     4.81     10.3%   3.7%   9.4%

South Florida

  97.6%     998,000   59.9%     1.29   3.5%   11.5%   25.6%

Seattle

  95.5%     279,000     74.0%     3.91     9.6%   11.5%   21.2%

Suburban Maryland

  98.0%     114,000   68.5%     3.12   8.3%   -2.1%   4.9%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Industrial Totals by Market

          95.8%                     5,211,000             71.9%                    $                 2.85     6.6%   9.4%   21.7%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Flex (1)

                               

Northern California

  91.4%     237,000     69.1%            $  1.23     2.8%   1.2%   5.3%

Southern California

  94.8%     207,000   76.5%     2.10   4.3%   1.0%   8.5%

Dallas

  88.2%     263,000     76.8%     3.22     12.4%   4.8%   15.4%

Austin

  92.6%     169,000   34.1%     5.10   12.8%   1.1%   7.2%

Northern Virginia

  97.4%     508,000     91.9%     4.46     8.4%   -2.1%   3.1%

South Florida

  87.1%     42,000   74.6%     1.69   3.2%   8.3%   20.7%

Seattle

  94.4%     88,000     47.5%     2.25     5.7%   6.1%   13.3%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Flex Totals by Market

  93.2%     1,514,000   70.9%            $  3.29   7.4%   1.0%   7.2%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Office

                               

Northern California

  78.4%     85,000     60.6%            $  0.82     1.6%   -12.0%   -10.4%

Southern California

  95.8%     10,000   57.3%     2.16   4.9%   3.2%   10.5%

Northern Virginia

  86.9%     458,000     69.6%     8.89     9.7%   -4.1%   2.4%

South Florida

  100.0%                    

Seattle

  68.0%     12,000     41.1%     8.08     13.6%   5.7%   15.5%

Suburban Maryland

  89.4%     147,000   78.4%     3.11   6.0%   -5.8%   2.9%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Office Totals by Market

  86.5%     712,000     69.9%            $  6.63     8.6%   -5.6%   0.7%

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

             

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

Company Totals by Type

  94.3%     7,437,000     71.4%            $  3.30             7.1%                   5.2%                   14.7%        

 

 

 

 

 

 

   

 

 

 

 

   

 

 

 

 

 

 

 

(1)

Excludes assets sold or held for sale as of December 31, 2021.

(2)

Average lease term for leases executed during the year-ended December 31, 2021 was 3.4 years.

(3)

Refer to page 27, Definitions and Non-GAAP Disclosures, for the definitions of Transaction Costs as a Percentage of Rents, Cash Rental Rate Change, and Net Effective Rent Change.

 

Fourth Quarter 2021 Supplemental Financial Reporting Package    22


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Lease Expirations by Type

(unaudited, in thousands)

 

 
Lease Expirations - Total Portfolio (1)  

Year of Lease Expiration

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