Maryland (State or other jurisdiction of incorporation) | 001-35030 (Commission File No.) | 27-3338708 (I.R.S. Employer Identification No.) | |||
11455 El Camino Real, Suite 200 San Diego, California 92130 (Address of principal executive offices) | 92130 (Zip Code) | ||||
(858) 350-2600 Registrant’s telephone number, including area code: | |||||
Not Applicable (Former name or former address, if changed since last report.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Exhibit Description | |
99.1** | Press release issued by American Assets Trust, Inc. on April 29, 2014. | |
99.2** | American Assets Trust, Inc. Supplemental Information for the quarter ended March 31, 2014. |
American Assets Trust, Inc. | ||
By: | /s/ Robert F. Barton | |
Robert F. Barton Executive Vice President, CFO | ||
April 29, 2014 |
Exhibit Number | Exhibit Description | |
99.1 | Press release issued by American Assets Trust, Inc. on April 29, 2014. | |
99.2 | American Assets Trust, Inc. Supplemental Information for the quarter ended March 31, 2014. |
• | Funds From Operations increased 3% to $0.39 per diluted share for the three months ended March 31, 2014 compared to the same period in 2013 |
• | Net income available to common stockholders of $4.6 million for the three months ended March 31, 2014, or $0.11 per diluted share |
• | Same-store cash NOI decreased slightly by 0.5% for the three months ended March 31, 2014, compared to the same period in 2013 |
• | Leased approximately 63,000 comparable retail square feet at an average cash-basis and GAAP-basis contractual rent increase of 9.8% and 20.9%, respectively |
• | Leased approximately 4,400 comparable office square feet at an average cash-basis and GAAP-basis contractual rent increase of 11.1% and 13.8%, respectively |
• | Multifamily occupancy increased to 96.3% at March 31, 2014 compared to 94.3% for the same period in 2013 |
• | Embassy Suites—Waikiki Beach WalkTM increased Revenue per Available Room by 2% for the three months ended March 31, 2014 respectively, compared to the same period in 2013 |
• | Signed 24 retail and office leases for approximately 91,500 square feet |
March 31, 2014 | December 31, 2013 | March 31, 2013 | |
Total Portfolio | |||
Retail | 96.8% | 97.0% | 96.1% |
Office | 89.5% | 89.8% | 93.8% |
Multifamily | 96.3% | 96.4% | 94.3% |
Mixed-Use: | |||
Retail | 98.9% | 97.8% | 95.5% |
Hotel | 90.2% | 87.2% | 89.6% |
Same-Store Portfolio | |||
Retail | 96.8% | 97.0% | 96.0% |
Office | 92.4% | 91.6% | 98.2% |
Multifamily | 96.3% | 96.4% | 94.3% |
Mixed-Use: | |||
Retail | 98.9% | 97.8% | 95.5% |
Hotel | 90.2% | 87.2% | 89.6% |
Q1 2014 | Number of Leases Signed | Comparable Leased Sq. Ft. | Average Cash Basis % Change Over Prior Rent | Average Cash Contractual Rent Per Sq. Ft. | Prior Average Cash Contractual Rent Per Sq. Ft. | GAAP Straight-Line Basis % Change Over Prior Rent |
Retail | 15 | 63,000 | 9.8% | $29.15 | $26.55 | 20.9% |
Office | 4 | 4,400 | 11.1% | $36.88 | $33.19 | 13.8% |
Three Months Ended (1) | |||||||||||
March 31, | |||||||||||
2014 | 2013 | Change | |||||||||
Cash Basis: | |||||||||||
Retail | $ | 16,567 | $ | 17,130 | (3.3 | ) | % | ||||
Office | 9,995 | 10,072 | (0.8 | ) | |||||||
Multifamily | 2,703 | 2,433 | 11.1 | ||||||||
Mixed-Use | 5,755 | 5,570 | 3.3 | ||||||||
$ | 35,020 | $ | 35,205 | (0.5 | ) | % | |||||
GAAP Basis: | |||||||||||
Retail | $ | 16,936 | $ | 17,207 | (1.6 | ) | % | ||||
Office | 11,253 | 11,739 | (4.1 | ) | |||||||
Multifamily | 2,703 | 2,433 | 11.1 | ||||||||
Mixed-Use | 5,725 | 5,492 | 4.2 | ||||||||
$ | 36,617 | $ | 36,871 | (0.7 | ) | % |
(1) | Same-store portfolio excludes (i) Torrey Reserve Campus and Lloyd District Portfolio due to significant redevelopment activity during the period and (ii) land held for development. |
March 31, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 1,924,855 | $ | 1,919,015 | |||
Construction in progress | 89,991 | 67,389 | |||||
Held for development | 9,028 | 9,013 | |||||
2,023,874 | 1,995,417 | ||||||
Accumulated depreciation | (330,945 | ) | (318,581 | ) | |||
Net real estate | 1,692,929 | 1,676,836 | |||||
Cash and cash equivalents | 79,486 | 48,987 | |||||
Restricted cash | 10,568 | 9,124 | |||||
Accounts receivable, net | 6,277 | 7,295 | |||||
Deferred rent receivables, net | 33,372 | 32,531 | |||||
Other assets, net | 56,326 | 57,670 | |||||
Total assets | $ | 1,878,958 | $ | 1,832,443 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Secured notes payable | $ | 952,498 | $ | 952,174 | |||
Term loan | 100,000 | — | |||||
Line of credit | — | 93,000 | |||||
Accounts payable and accrued expenses | 40,248 | 37,063 | |||||
Security deposits payable | 5,222 | 5,163 | |||||
Other liabilities and deferred credits | 58,514 | 58,465 | |||||
Total liabilities | 1,156,482 | 1,145,865 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
American Assets Trust, Inc. stockholders' equity | |||||||
Common stock, $0.01 par value, 490,000,000 shares authorized, 41,935,138 and 40,512,563 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 419 | 405 | |||||
Additional paid-in capital | 735,175 | 692,196 | |||||
Accumulated dividends in excess of net income | (48,619 | ) | (44,090 | ) | |||
Accumulated other comprehensive loss | (521 | ) | — | ||||
Total American Assets Trust, Inc. stockholders' equity | 686,454 | 648,511 | |||||
Noncontrolling interests | 36,022 | 38,067 | |||||
Total equity | 722,476 | 686,578 | |||||
Total liabilities and equity | $ | 1,878,958 | $ | 1,832,443 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Revenue: | |||||||
Rental income | $ | 60,482 | $ | 59,222 | |||
Other property income | 3,471 | 2,958 | |||||
Total revenue | 63,953 | 62,180 | |||||
Expenses: | |||||||
Rental expenses | 16,620 | 16,286 | |||||
Real estate taxes | 6,026 | 4,800 | |||||
General and administrative | 4,612 | 4,201 | |||||
Depreciation and amortization | 16,341 | 17,013 | |||||
Total operating expenses | 43,599 | 42,300 | |||||
Operating income | 20,354 | 19,880 | |||||
Interest expense | (13,632 | ) | (14,736 | ) | |||
Other income (expense), net | (64 | ) | (279 | ) | |||
Net income | 6,658 | 4,865 | |||||
Net income attributable to restricted shares | (70 | ) | (132 | ) | |||
Net income attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | |||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 4,602 | $ | 3,238 | |||
Net income per share | |||||||
Basic income attributable to common stockholders per share | $ | 0.11 | $ | 0.08 | |||
Weighted average shares of common stock outstanding - basic | 40,582,792 | 39,033,013 | |||||
Diluted income attributable to common stockholders per share | $ | 0.11 | $ | 0.08 | |||
Weighted average shares of common stock outstanding - diluted | 58,492,473 | 57,056,448 | |||||
Dividends declared per common share | $ | 0.22 | $ | 0.21 | |||
Three Months Ended | |||
March 31, 2014 | |||
Funds From Operations (FFO) | |||
Net income | $ | 6,658 | |
Depreciation and amortization of real estate assets | 16,341 | ||
FFO, as defined by NAREIT | $ | 22,999 | |
Less: Nonforfeitable dividends on incentive stock awards | (70 | ) | |
FFO attributable to common stock and units | $ | 22,929 | |
FFO per diluted share/unit | $ | 0.39 | |
Weighted average number of common shares and units, diluted | 58,626,718 |
FIRST QUARTER 2014 | |
Supplemental Information | |
Investor and Media Contact | |
American Assets Trust | |
Robert F. Barton | |
Executive Vice President and Chief Financial Officer | |
858-350-2607 |
Retail | Office | Multifamily | Mixed-Use | |||||||||||||
Market | Square Feet | Square Feet | Units | Square Feet | Suites | |||||||||||
San Diego | 1,217,923 | 688,185 | 922 | (1) | — | — | ||||||||||
San Francisco | 35,156 | 519,548 | — | — | — | |||||||||||
Oahu | 549,399 | — | — | 96,707 | 369 | |||||||||||
Monterey | 675,678 | — | — | — | — | |||||||||||
San Antonio | 589,501 | — | — | — | — | |||||||||||
Portland | — | 942,021 | — | — | — | |||||||||||
Seattle | — | 495,038 | — | — | — | |||||||||||
Total | 3,067,657 | 2,644,792 | 922 | 96,707 | 369 | |||||||||||
Square Feet | % | |||||||
Note: Circled areas represent all markets in which American Assets Trust, Inc. (the "Company") currently owns and operates its real estate assets. Size of circle denotes approximation of square feet / units. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties. | Retail | 3.1 | million | 54% | ||||
Office | 2.6 | million | 46% | |||||
Data is as of March 31, 2014. | Totals | 5.7 | million | |||||
(1) Includes 122 RV spaces. |
First Quarter 2014 Supplemental Information | Page 2 |
INDEX | |
FIRST QUARTER 2014 SUPPLEMENTAL INFORMATION | ||
1. | FINANCIAL HIGHLIGHTS | |
Consolidated Balance Sheets | ||
Consolidated Statements of Income | ||
Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution | ||
Same-Store Portfolio Net Operating Income (NOI) | ||
Same-Store Portfolio NOI Comparison excluding Redevelopment | ||
Same-Store Portfolio NOI Comparison with Redevelopment | ||
NOI By Region | ||
NOI Breakdown | ||
Property Revenue and Operating Expenses | ||
Segment Capital Expenditures | ||
Summary of Outstanding Debt | ||
Market Capitalization | ||
Summary of Development Opportunities | ||
2. | PORTFOLIO DATA | |
Property Report | ||
Retail Leasing Summary | ||
Office Leasing Summary | ||
Multifamily Leasing Summary | ||
Mixed-Use Leasing Summary | ||
Lease Expirations | ||
Portfolio Leased Statistics | ||
Top Tenants - Retail | ||
Top Tenants - Office | ||
3. | APPENDIX | |
Glossary of Terms |
First Quarter 2014 Supplemental Information | Page 3 |
First Quarter 2014 Supplemental Information | Page 4 |
CONSOLIDATED BALANCE SHEETS | |
(Amounts in thousands, except shares and per share data) | March 31, 2014 | December 31, 2013 | |||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 1,924,855 | $ | 1,919,015 | |||
Construction in progress | 89,991 | 67,389 | |||||
Held for development | 9,028 | 9,013 | |||||
2,023,874 | 1,995,417 | ||||||
Accumulated depreciation | (330,945 | ) | (318,581 | ) | |||
Net real estate | 1,692,929 | 1,676,836 | |||||
Cash and cash equivalents | 79,486 | 48,987 | |||||
Restricted cash | 10,568 | 9,124 | |||||
Accounts receivable, net | 6,277 | 7,295 | |||||
Deferred rent receivable, net | 33,372 | 32,531 | |||||
Other assets, net | 56,326 | 57,670 | |||||
TOTAL ASSETS | $ | 1,878,958 | $ | 1,832,443 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured notes payable | $ | 952,498 | $ | 952,174 | |||
Term loan | 100,000 | — | |||||
Line of credit | — | 93,000 | |||||
Accounts payable and accrued expenses | 40,248 | 37,063 | |||||
Security deposits payable | 5,222 | 5,163 | |||||
Other liabilities and deferred credits | 58,514 | 58,465 | |||||
Total liabilities | 1,156,482 | 1,145,865 | |||||
Commitments and contingencies | |||||||
EQUITY: | |||||||
American Assets Trust, Inc. stockholders' equity | |||||||
Common stock, $0.01 par value, 490,000,000 shares authorized, 41,935,138 and 40,512,563 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 419 | 405 | |||||
Additional paid in capital | 735,175 | 692,196 | |||||
Accumulated dividends in excess of net income | (48,619 | ) | (44,090 | ) | |||
Accumulated other comprehensive loss | (521 | ) | — | ||||
Total American Assets Trust, Inc. stockholders' equity | 686,454 | 648,511 | |||||
Noncontrolling interests | 36,022 | 38,067 | |||||
Total equity | 722,476 | 686,578 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 1,878,958 | $ | 1,832,443 |
First Quarter 2014 Supplemental Information | Page 5 |
CONSOLIDATED STATEMENTS OF INCOME | |
(Unaudited, amounts in thousands, except shares and per share data) | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
REVENUE: | |||||||
Rental income | $ | 60,482 | $ | 59,222 | |||
Other property income | 3,471 | 2,958 | |||||
Total revenue | 63,953 | 62,180 | |||||
EXPENSES: | |||||||
Rental expenses | 16,620 | 16,286 | |||||
Real estate taxes | 6,026 | 4,800 | |||||
General and administrative | 4,612 | 4,201 | |||||
Depreciation and amortization | 16,341 | 17,013 | |||||
Total operating expenses | 43,599 | 42,300 | |||||
OPERATING INCOME | 20,354 | 19,880 | |||||
Interest expense | (13,632 | ) | (14,736 | ) | |||
Other income (expense), net | (64 | ) | (279 | ) | |||
NET INCOME | 6,658 | 4,865 | |||||
Net income attributable to restricted shares | (70 | ) | (132 | ) | |||
Net income attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | |||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ | 4,602 | $ | 3,238 | |||
EARNINGS PER COMMON SHARE | |||||||
Basic income attributable to common stockholders per share | $ | 0.11 | $ | 0.08 | |||
Weighted average shares of common stock outstanding - basic | 40,582,792 | 39,033,013 | |||||
Diluted income attributable to common stockholders per share | $ | 0.11 | $ | 0.08 | |||
Weighted average shares of common stock outstanding - diluted | 58,492,473 | 57,056,448 | |||||
First Quarter 2014 Supplemental Information | Page 6 |
FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION | |
(Unaudited, amounts in thousands, except per share data) | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
Funds from Operations (FFO) (1) | |||||||
Net income | $ | 6,658 | $ | 4,865 | |||
Depreciation and amortization of real estate assets | 16,341 | 17,013 | |||||
FFO, as defined by NAREIT | 22,999 | 21,878 | |||||
Less: Nonforfeitable dividends on incentive stock awards | (70 | ) | (88 | ) | |||
FFO attributable to common stock and common units | $ | 22,929 | $ | 21,790 | |||
FFO per diluted share/unit | $ | 0.39 | $ | 0.38 | |||
Weighted average number of common shares and common units, diluted (2) | 58,626,718 | 57,266,950 | |||||
Dividends | |||||||
Dividends declared and paid | $ | 13,140 | $ | 12,114 | |||
Dividends declared and paid per share/unit | $ | 0.22 | $ | 0.21 |
First Quarter 2014 Supplemental Information | Page 7 |
FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED) | |
(Unaudited, amounts in thousands, except share and per share data) | Three Months Ended | ||||||
March 31, | |||||||
2014 | 2013 | ||||||
Funds Available for Distribution (FAD) (1) | |||||||
FFO | $ | 22,999 | $ | 21,878 | |||
Adjustments: | |||||||
Tenant improvements, leasing commissions and maintenance capital expenditures | (6,057 | ) | (4,051 | ) | |||
Net effect of straight-line rents (3) | (1,058 | ) | (790 | ) | |||
Amortization of net above (below) market rents (4) | (587 | ) | (508 | ) | |||
Net effect of other lease intangibles (5) | 37 | 57 | |||||
Amortization of debt issuance costs and debt fair value adjustment | 1,015 | 983 | |||||
Non-cash compensation expense | 519 | 676 | |||||
Nonforfeitable dividends on incentive stock awards | (70 | ) | (88 | ) | |||
FAD | $ | 16,798 | $ | 18,157 | |||
Summary of Capital Expenditures | |||||||
Tenant improvements and leasing commissions | $ | 3,179 | $ | 2,942 | |||
Maintenance capital expenditures | 2,878 | 1,109 | |||||
$ | 6,057 | $ | 4,051 |
(1) | See Glossary of Terms. |
(2) | For the three months ended March 31, 2014 and 2013, the weighted average common shares and common units used to compute FFO per diluted share/unit include operating partnership common units and unvested restricted stock awards that are subject to time vesting. The shares/units used to compute FFO per diluted share/unit include additional shares/units which were excluded from the computation of diluted EPS, as they were anti-dilutive for the periods presented. |
(3) | Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. |
(4) | Represents the adjustment related to the acquisition of buildings with above (below) market rents. |
(5) | Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail. |
First Quarter 2014 Supplemental Information | Page 8 |
SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) | |
(Unaudited, amounts in thousands) | Three Months Ended March 31, 2014 | ||||||||||||||||||
Retail | Office | Multifamily | Mixed-Use | Total | |||||||||||||||
Real estate rental revenue | |||||||||||||||||||
Same-store portfolio | $ | 22,981 | $ | 15,828 | $ | 4,130 | $ | 13,993 | $ | 56,932 | |||||||||
Non-same store portfolio (1) | 18 | 7,003 | — | — | 7,021 | ||||||||||||||
Total | 22,999 | 22,831 | 4,130 | 13,993 | 63,953 | ||||||||||||||
Real estate expenses | |||||||||||||||||||
Same-store portfolio | 6,045 | 4,575 | 1,427 | 8,268 | 20,315 | ||||||||||||||
Non-same store portfolio (1) | 13 | 2,318 | — | — | 2,331 | ||||||||||||||
Total | 6,058 | 6,893 | 1,427 | 8,268 | 22,646 | ||||||||||||||
Net Operating Income (NOI), GAAP basis | |||||||||||||||||||
Same-store portfolio | 16,936 | 11,253 | 2,703 | 5,725 | 36,617 | ||||||||||||||
Non-same store portfolio (1) | 5 | 4,685 | — | — | 4,690 | ||||||||||||||
Total | $ | 16,941 | $ | 15,938 | $ | 2,703 | $ | 5,725 | $ | 41,307 | |||||||||
Same-store portfolio NOI, GAAP basis | $ | 16,936 | $ | 11,253 | $ | 2,703 | $ | 5,725 | $ | 36,617 | |||||||||
Net effect of straight-line rents (2) | 1 | (672 | ) | — | (86 | ) | (757 | ) | |||||||||||
Amortization of net above (below) market rents (3) | (370 | ) | (556 | ) | — | 141 | (785 | ) | |||||||||||
Net effect of other lease intangibles (4) | — | (30 | ) | — | (25 | ) | (55 | ) | |||||||||||
Same-store portfolio NOI, cash basis | $ | 16,567 | $ | 9,995 | $ | 2,703 | $ | 5,755 | $ | 35,020 |
(1) | Same-store portfolio and non-same store portfolio are determined based on properties held on March 31, 2014 and 2013. See Glossary of Terms. |
(2) | Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. |
(3) | Represents the adjustment related to the acquisition of buildings with above (below) market rents. |
(4) | Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our lease of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail. |
First Quarter 2014 Supplemental Information | Page 9 |
SAME-STORE PORTFOLIO NOI COMPARISON EXCLUDING REDEVELOPMENT | |
(Unaudited, amounts in thousands) | Three Months Ended | |||||||||
March 31, | ||||||||||
2014 | 2013 | Change | ||||||||
Cash Basis: | ||||||||||
Retail | $ | 16,567 | $ | 17,130 | (3.3 | )% | ||||
Office | 9,995 | 10,072 | (0.8 | ) | ||||||
Multifamily | 2,703 | 2,433 | 11.1 | |||||||
Mixed-Use | 5,755 | 5,570 | 3.3 | |||||||
$ | 35,020 | $ | 35,205 | (0.5 | )% | |||||
GAAP Basis: | ||||||||||
Retail | $ | 16,936 | $ | 17,207 | (1.6 | )% | ||||
Office | 11,253 | 11,739 | (4.1 | ) | ||||||
Multifamily | 2,703 | 2,433 | 11.1 | |||||||
Mixed-Use | 5,725 | 5,492 | 4.2 | |||||||
$ | 36,617 | $ | 36,871 | (0.7 | )% |
First Quarter 2014 Supplemental Information | Page 10 |
SAME-STORE PORTFOLIO NOI COMPARISON WITH REDEVELOPMENT | |
(Unaudited, amounts in thousands) | Three Months Ended | |||||||||
March 31, | ||||||||||
2014 | 2013 | Change | ||||||||
Cash Basis: | ||||||||||
Retail | $ | 16,567 | $ | 17,130 | (3.3 | )% | ||||
Office | 14,668 | 14,711 | (0.3 | ) | ||||||
Multifamily | 2,703 | 2,433 | 11.1 | |||||||
Mixed-Use | 5,755 | 5,570 | 3.3 | |||||||
$ | 39,693 | $ | 39,844 | (0.4 | )% | |||||
GAAP Basis: | ||||||||||
Retail | $ | 16,936 | $ | 17,207 | (1.6 | )% | ||||
Office | 15,937 | 15,951 | (0.1 | ) | ||||||
Multifamily | 2,703 | 2,433 | 11.1 | |||||||
Mixed-Use | 5,725 | 5,492 | 4.2 | |||||||
$ | 41,301 | $ | 41,083 | 0.5 | % |
First Quarter 2014 Supplemental Information | Page 11 |
NOI BY REGION | |
(Unaudited, amounts in thousands) | Three Months Ended March 31, 2014 | ||||||||||||||||||
Retail | Office | Multifamily | Mixed-Use | Total | |||||||||||||||
Southern California | |||||||||||||||||||
NOI, GAAP basis (1) | $ | 7,036 | $ | 4,380 | $ | 2,703 | $ | — | $ | 14,119 | |||||||||
Net effect of straight-line rents (2) | (54 | ) | (253 | ) | — | — | (307 | ) | |||||||||||
Amortization of net above (below) market rents (3) | (275 | ) | 18 | — | — | (257 | ) | ||||||||||||
Net effect of other lease intangibles (4) | — | 93 | — | — | 93 | ||||||||||||||
NOI, cash basis | 6,707 | 4,238 | 2,703 | — | 13,648 | ||||||||||||||
Northern California | |||||||||||||||||||
NOI, GAAP basis (1) | 2,615 | 4,180 | — | — | 6,795 | ||||||||||||||
Net effect of straight-line rents (2) | (50 | ) | (413 | ) | — | — | (463 | ) | |||||||||||
Amortization of net above (below) market rents (3) | (82 | ) | (177 | ) | — | — | (259 | ) | |||||||||||
Net effect of other lease intangibles (4) | — | (31 | ) | — | — | (31 | ) | ||||||||||||
NOI, cash basis | 2,483 | 3,559 | — | — | 6,042 | ||||||||||||||
Hawaii | |||||||||||||||||||
NOI, GAAP basis (1) | 4,182 | — | — | 5,725 | 9,907 | ||||||||||||||
Net effect of straight-line rents (2) | 78 | — | — | (86 | ) | (8 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | 44 | — | — | 141 | 185 | ||||||||||||||
Net effect of other lease intangibles (4) | — | — | — | (25 | ) | (25 | ) | ||||||||||||
NOI, cash basis | 4,304 | — | — | 5,755 | 10,059 | ||||||||||||||
Oregon | |||||||||||||||||||
NOI, GAAP basis (1) | — | 3,399 | — | — | 3,399 | ||||||||||||||
Net effect of straight-line rents (2) | — | (27 | ) | — | — | (27 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | — | 123 | — | — | 123 | ||||||||||||||
NOI, cash basis | — | 3,495 | — | — | 3,495 | ||||||||||||||
Texas | |||||||||||||||||||
NOI, GAAP basis (1) | 3,108 | — | — | — | 3,108 | ||||||||||||||
Net effect of straight-line rents (2) | 27 | — | — | — | 27 | ||||||||||||||
Amortization of net above (below) market rents (3) | (57 | ) | — | — | — | (57 | ) | ||||||||||||
NOI, cash basis | 3,078 | — | — | — | 3,078 | ||||||||||||||
Washington | |||||||||||||||||||
NOI, GAAP basis (1) | — | 3,979 | — | — | 3,979 | ||||||||||||||
Net effect of straight-line rents (2) | — | (280 | ) | — | — | (280 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | — | (322 | ) | — | — | (322 | ) | ||||||||||||
NOI, cash basis | — | 3,377 | — | — | 3,377 | ||||||||||||||
Total | |||||||||||||||||||
NOI, GAAP basis (1) | 16,941 | 15,938 | 2,703 | 5,725 | 41,307 | ||||||||||||||
Net effect of straight-line rents (2) | 1 | (973 | ) | — | (86 | ) | (1,058 | ) | |||||||||||
Amortization of net above (below) market rents (3) | (370 | ) | (358 | ) | — | 141 | (587 | ) | |||||||||||
Net effect of other lease intangibles (4) | — | 62 | — | (25 | ) | 37 | |||||||||||||
NOI, cash basis | $ | 16,572 | $ | 14,669 | $ | 2,703 | $ | 5,755 | $ | 39,699 |
(1) | See Glossary of Terms. |
(2) | Represents the straight-line rent income recognized during the period offset by cash received during the period and the provision for bad debts recorded for deferred rent receivable balances. |
(3) | Represents the adjustment related to the acquisition of buildings with above (below) market rents. |
(4) | Represents adjustments related to amortization of lease incentives paid to tenants and amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market and retail space at Waikiki Beach Walk - Retail. |
First Quarter 2014 Supplemental Information | Page 12 |
NOI BREAKDOWN | |
Three Months Ended March 31, 2014 | ||
Portfolio NOI, Cash Basis Breakdown | ||
Portfolio Diversification by Geographic Region | Portfolio Diversification by Segment | |
Portfolio NOI, GAAP Basis Breakdown | ||
Portfolio Diversification by Geographic Region | Portfolio Diversification by Segment | |
First Quarter 2014 Supplemental Information | Page 13 |
PROPERTY REVENUE AND OPERATING EXPENSES | |
(Unaudited, amounts in thousands) | Three Months Ended March 31, 2014 | |||||||||||||||
Additional | Property | |||||||||||||||
Property | Billed Expense | Operating | ||||||||||||||
Property | Base Rent (1) | Income (2) | Reimbursements (3) | Expenses (4) | ||||||||||||
Retail Portfolio | ||||||||||||||||
Carmel Country Plaza | $ | 867 | $ | 20 | $ | 204 | $ | (177 | ) | |||||||
Carmel Mountain Plaza | 2,655 | 38 | 688 | (722 | ) | |||||||||||
South Bay Marketplace | 554 | 31 | 169 | (158 | ) | |||||||||||
Rancho Carmel Plaza | 170 | 10 | 41 | (49 | ) | |||||||||||
Lomas Santa Fe Plaza | 1,169 | 14 | 214 | (448 | ) | |||||||||||
Solana Beach Towne Centre | 1,393 | 29 | 437 | (432 | ) | |||||||||||
Del Monte Center | 2,179 | 242 | 831 | (1,059 | ) | |||||||||||
Geary Marketplace | 292 | 3 | 126 | (131 | ) | |||||||||||
The Shops at Kalakaua | 404 | 21 | 36 | (65 | ) | |||||||||||
Waikele Center | 4,022 | 309 | 862 | (1,274 | ) | |||||||||||
Alamo Quarry Market | 3,234 | 64 | 1,318 | (1,538 | ) | |||||||||||
Subtotal Retail Portfolio | $ | 16,939 | $ | 781 | $ | 4,926 | $ | (6,053 | ) | |||||||
Office Portfolio | ||||||||||||||||
Torrey Reserve Campus (5) | $ | 3,874 | $ | 442 | $ | 144 | $ | (1,007 | ) | |||||||
Solana Beach Corporate Centre | 1,624 | 10 | 43 | (409 | ) | |||||||||||
The Landmark at One Market | 5,024 | 26 | 126 | (1,961 | ) | |||||||||||
One Beach Street | 654 | 2 | 36 | (201 | ) | |||||||||||
First & Main | 2,213 | 162 | 162 | (742 | ) | |||||||||||
Lloyd District Portfolio (5) | 2,640 | 327 | 91 | (1,308 | ) | |||||||||||
City Center Bellevue | 3,795 | 665 | 359 | (1,291 | ) | |||||||||||
Subtotal Office Portfolio | $ | 19,824 | $ | 1,634 | $ | 961 | $ | (6,919 | ) | |||||||
Multifamily Portfolio | ||||||||||||||||
Loma Palisades | $ | 2,621 | $ | 188 | $ | — | $ | (917 | ) | |||||||
Imperial Beach Gardens | 685 | 62 | — | (253 | ) | |||||||||||
Mariner's Point | 313 | 26 | — | (123 | ) | |||||||||||
Santa Fe Park RV Resort | 217 | 20 | — | (134 | ) | |||||||||||
Subtotal Multifamily Portfolio | $ | 3,836 | $ | 296 | $ | — | $ | (1,427 | ) |
First Quarter 2014 Supplemental Information | Page 14 |
PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED) | |
(Unaudited, amounts in thousands) | Three Months Ended March 31, 2014 | |||||||||||||||
Additional | Property | |||||||||||||||
Property | Billed Expense | Operating | ||||||||||||||
Property | Base Rent (1) | Income (2) | Reimbursements (3) | Expenses (4) | ||||||||||||
Mixed-Use Portfolio | ||||||||||||||||
Waikiki Beach Walk - Retail | $ | 2,524 | $ | 962 | $ | 919 | $ | (1,642 | ) | |||||||
Waikiki Beach Walk - Embassy Suites™ | 9,001 | 641 | — | (6,650 | ) | |||||||||||
Subtotal Mixed-Use Portfolio | $ | 11,525 | $ | 1,603 | $ | 919 | $ | (8,292 | ) | |||||||
Total | $ | 52,124 | $ | 4,314 | $ | 6,806 | $ | (22,691 | ) |
(1) | Base rent for our retail and office portfolio and the retail portion of our mixed-use portfolio represents base rent for the three months ended March 31, 2014 (before abatements) and excludes the impact of straight-line rent and above (below) market rent adjustments. Total abatements for our retail and office portfolio were approximately $25 and $821, respectively, for the three months ended March 31, 2014. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended March 31, 2014. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. Multifamily portfolio base rent represents base rent (including parking, before abatements) less vacancy allowance and employee rent credits and includes additional rents (additional rents include insufficient notice penalties, month-to-month charges and pet rent). Total abatements for our multifamily portfolio were approximately $2 for the three months ended March 31, 2014. For Waikiki Beach Walk - Embassy Suites TM, base rent is equal to the actual room revenue for the three months ended March 31, 2014. |
(2) | Represents additional property-related income for the three months ended March 31, 2014, which includes: (i) percentage rent, (ii) other rent (such as storage rent, license fees and association fees) and (iii) other property income (such as late fees, default fees, lease termination fees, parking revenue, the reimbursement of general excise taxes, laundry income and food and beverage sales). |
(3) | Represents billed tenant expense reimbursements for the three months ended March 31, 2014. |
(4) | Represents property operating expenses for the three months ended March 31, 2014. Property operating expenses includes all rental expenses, except non-cash rent expense and the provision for bad debt recorded for deferred rent receivables. |
(5) | Base rent shown includes amounts related to American Assets Trust, L.P.'s leases at Torrey Reserve Campus and Lloyd District Portfolio. This intercompany rent is eliminated in the consolidated statement of operations. The base rent was $195 and abatements were $195 for the three months ended March 31, 2014. |
First Quarter 2014 Supplemental Information | Page 15 |
SEGMENT CAPITAL EXPENDITURES | |
(Unaudited, amounts in thousands) | Three Months Ended March 31, 2014 | |||||||||||||||||||||||
Segment | Tenant Improvements and Leasing Commissions | Maintenance Capital Expenditures | Total Tenant Improvements, Leasing Commissions and Maintenance Capital Expenditures | Redevelopment and Expansions | New Development | Total Capital Expenditures | ||||||||||||||||||
Retail Portfolio | $ | 733 | $ | 184 | $ | 917 | $ | 571 | $ | 18 | $ | 1,506 | ||||||||||||
Office Portfolio | 2,376 | 1,832 | 4,208 | 2,596 | 287 | 7,091 | ||||||||||||||||||
Multifamily Portfolio | — | 110 | 110 | — | 21,767 | 21,877 | ||||||||||||||||||
Mixed-Use Portfolio | 70 | 752 | 822 | — | — | 822 | ||||||||||||||||||
Total | $ | 3,179 | $ | 2,878 | $ | 6,057 | $ | 3,167 | $ | 22,072 | $ | 31,296 |
First Quarter 2014 Supplemental Information | Page 16 |
SUMMARY OF OUTSTANDING DEBT | |
(Unaudited, amounts in thousands) | Amount | ||||||||||||||||
Outstanding at | Annual Debt | Balance at | |||||||||||||||
Debt | March 31, 2014 | Interest Rate | Service | Maturity Date | Maturity | ||||||||||||
Waikele Center (1) | $ | 140,700 | 5.15 | % | $ | 145,607 | November 1, 2014 | $ | 140,700 | ||||||||
The Shops at Kalakaua (1) | 19,000 | 5.45 | % | 1,053 | May 1, 2015 | 19,000 | |||||||||||
The Landmark at One Market (1)(2) | 133,000 | 5.61 | % | 7,558 | July 5, 2015 | 133,000 | |||||||||||
Del Monte Center (1) | 82,300 | 4.93 | % | 4,121 | July 8, 2015 | 82,300 | |||||||||||
First & Main (1) | 84,500 | 3.97 | % | 3,397 | July 1, 2016 | 84,500 | |||||||||||
Imperial Beach Gardens (1) | 20,000 | 6.16 | % | 1,250 | September 1, 2016 | 20,000 | |||||||||||
Mariner's Point (1) | 7,700 | 6.09 | % | 476 | September 1, 2016 | 7,700 | |||||||||||
South Bay Marketplace (1) | 23,000 | 5.48 | % | 1,281 | February 10, 2017 | 23,000 | |||||||||||
Waikiki Beach Walk - Retail (1) | 130,310 | 5.39 | % | 7,020 | July 1, 2017 | 130,310 | |||||||||||
Solana Beach Corporate Centre III-IV (3) | 36,691 | 6.39 | % | 2,798 | August 1, 2017 | 35,136 | |||||||||||
Loma Palisades (1) | 73,744 | 6.09 | % | 4,553 | July 1, 2018 | 73,744 | |||||||||||
One Beach Street (1) | 21,900 | 3.94 | % | 875 | April 1, 2019 | 21,900 | |||||||||||
Torrey Reserve - North Court (3) | 21,304 | 7.22 | % | 1,836 | June 1, 2019 | 19,443 | |||||||||||
Torrey Reserve - VCI, VCII, VCIII (3) | 7,175 | 6.36 | % | 560 | June 1, 2020 | 6,439 | |||||||||||
Solana Beach Corporate Centre I-II (3) | 11,430 | 5.91 | % | 855 | June 1, 2020 | 10,169 | |||||||||||
Solana Beach Towne Centre (3) | 38,101 | 5.91 | % | 2,849 | June 1, 2020 | 33,898 | |||||||||||
City Center Bellevue (1) | 111,000 | 3.98 | % | 4,479 | November 1, 2022 | 111,000 | |||||||||||
Total / Weighted Average | $ | 961,855 | 5.22 | % | $ | 190,568 | $ | 952,239 | |||||||||
Unamortized fair value adjustment | (9,357 | ) | |||||||||||||||
Secured Notes Payable | $ | 952,498 | |||||||||||||||
Fixed Rate Debt Ratio of Secured Notes Payable | |||||||||||||||||
Fixed rate debt | 100 | % | |||||||||||||||
Term Loan (4) | $ | 100,000 |
(1) | Interest only. |
(2) | Maturity date is the earlier of the loan maturity date under the loan agreement, or the "Anticipated Repayment Date" as specifically defined in the loan agreement, which is the date after which substantial economic penalties apply if the loan has not been paid off. |
(3) | Principal payments based on a 30-year amortization schedule. |
(4) | The term loan matures in January 2016 and we have three 12-month options to extend its maturity to 2019. At March 31, 2014, the all-in interest rate (including interest rate swap costs) on our outstanding term loan was 3.08%. |
First Quarter 2014 Supplemental Information | Page 17 |
MARKET CAPITALIZATION | |
(Unaudited, amounts in thousands, except per share data) | ||||||
Market data | March 31, 2014 | |||||
Common shares outstanding | 41,935 | |||||
Common units outstanding | 17,905 | |||||
Common shares and common units outstanding | 59,840 | |||||
Market price per common share | $ | 33.74 | ||||
Equity market capitalization | $ | 2,019,002 | ||||
Total debt | $ | 1,061,855 | ||||
Total market capitalization | $ | 3,080,857 | ||||
Less: Cash on hand | $ | (79,486 | ) | |||
Total enterprise value | $ | 3,001,371 | ||||
Total assets, gross | $ | 2,209,903 | ||||
Total debt/Total capitalization | 34.5 | % | ||||
Total debt/Total enterprise value | 35.4 | % | ||||
Net debt/Total enterprise value (1) | 32.7 | % | ||||
Total debt/Total assets, gross | 48.0 | % | ||||
Net debt/Total assets, gross (1) | 44.5 | % | ||||
Total debt/EBITDA (2)(3) | 7.2 | x | ||||
Net debt/EBITDA (1)(2)(3) | 6.7 | x | ||||
Interest coverage ratio (4) | 2.8 | x | ||||
Fixed charge coverage ratio (4) | 2.8 | x |
(1) | Net debt is equal to total debt less cash on hand. |
(2) | See Glossary of Terms for discussion of EBITDA. |
(3) | As used here, EBITDA represents the actual for the three months ended March 31, 2014 annualized. |
(4) | Calculated as EBITDA divided by interest on borrowed funds, including capitalized interest and excluding debt fair value adjustments and loan fee amortization. |
First Quarter 2014 Supplemental Information | Page 18 |
SUMMARY OF DEVELOPMENT OPPORTUNITIES | |
Our portfolio has numerous potential opportunities to create future shareholder value. These opportunities could be subject to government approvals, lender consents, tenant consents, market conditions, availability of debt and/or equity financing, etc. Many of these opportunities are in their preliminary stages and may not ultimately come to fruition. This schedule will update as we modify various assumptions and markets conditions change. Square footages and units set forth below are estimates only and ultimately may differ materially from actual square footages and units. | ||||||||||
In-Process Development Projects | ||||||||||
Project Costs (in thousands) (2) | ||||||||||
Start Date | Estimated Completion Date | Estimated Stabilization Date (1) | Estimated Rentable Square Feet | Multifamily Units | Three Months | Cost Incurred to Date | Total Estimated Investment | Estimated Stabilized Yield (3) | ||
Ended | ||||||||||
Property | Location | March 31, 2014 | ||||||||
Office Property: | ||||||||||
Torrey Reserve III & IV | San Diego, CA | 2012 | 2014 | 2015 | 81,500 | N/A | $915 | $20,716 | $34,100 | 8.60% |
Mixed Use Property: | ||||||||||
Lloyd District Portfolio | Portland, OR | 2013 | 2015 | 2017 | 47,000 | 657 | $21,946 | $52,866 | $191,828 | 6.25% - 7.25% |
Development/Redevelopment Pipeline | |||||
Property | Property Type | Location | Estimated Square Footage | Multifamily Units | |
Solana Beach Corporate Centre (Building 5) | Retail | Solana Beach, CA | 10,000 | N/A | |
Lomas Santa Fe Plaza | Retail | Solana Beach, CA | 45,000 | N/A | |
Sorrento Pointe (5) | Office | San Diego, CA | 88,000 | N/A | |
Solana Beach - Highway 101 (4) | Mixed Use | Solana Beach, CA | 48,000 | 36 |
(1) | Based on management's estimation of stabilized occupancy (90%). |
(2) | Project costs exclude allocated land costs and interest costs capitalized in accordance with Accounting Standards Codification ("ASC") 835-20-50-1. |
(3) | Calculated as return on invested capital when project has reached stabilized occupancy, and excludes allocated land costs and interest cost capitalized in accordance with ASC 838-20-50-1. |
(4) | Represents commercial portion of development opportunity for Solana Beach - Highway 101. |
(5) | Development plans began during the second quarter of 2013. |
First Quarter 2014 Supplemental Information | Page 19 |
First Quarter 2014 Supplemental Information | Page 20 |
PROPERTY REPORT | |
As of March 31, 2014 | Retail and Office Portfolios | |||||||||||||||||||||
Net | Annualized | |||||||||||||||||||||
Number | Rentable | Base Rent | ||||||||||||||||||||
Year Built/ | of | Square | Percentage | Annualized | per Leased | |||||||||||||||||
Property | Location | Renovated | Buildings | Feet (1) | Leased (2) | Base Rent (3) | Square Foot (4) | Retail Anchor Tenant(s) (5) | Other Principal Retail Tenants (6) | |||||||||||||
Retail Properties | ||||||||||||||||||||||
Carmel Country Plaza | San Diego, CA | 1991 | 9 | 78,098 | 96.2% | $ | 3,467,449 | $46.15 | Sharp Healthcare, San Diego County Credit Union | |||||||||||||
Carmel Mountain Plaza (7) | San Diego, CA | 1994 | 13 | 520,228 | 99.5 | 10,728,273 | 20.73 | Sears | Sports Authority, Saks Fifth Avenue Off 5th | |||||||||||||
South Bay Marketplace (7) | San Diego, CA | 1997 | 9 | 132,877 | 100.0 | 2,219,472 | 16.70 | Ross Dress for Less, Grocery Outlet | ||||||||||||||
Rancho Carmel Plaza | San Diego, CA | 1993 | 3 | 30,421 | 73.9 | 679,518 | 30.23 | Oggi's Pizza & Brewing Co., Saloncentric | ||||||||||||||
Lomas Santa Fe Plaza | Solana Beach, CA | 1972/1997 | 9 | 209,569 | 82.2 | 4,677,992 | 27.16 | Vons, We-R-Fabrics | ||||||||||||||
Solana Beach Towne Centre | Solana Beach, CA | 1973/2000/2004 | 12 | 246,730 | 99.3 | 5,598,935 | 22.85 | Dixieline Probuild, Marshalls | ||||||||||||||
Del Monte Center (7) | Monterey, CA | 1967/1984/2006 | 16 | 675,678 | 99.2 | 9,295,932 | 13.87 | Macy's, KLA Monterrey | Century Theatres, Macy's Furniture Gallery | |||||||||||||
Geary Marketplace | Walnut Creek, CA | 2012 | 3 | 35,156 | 100.0 | 1,167,310 | 33.20 | Sprouts Farmer Market, Freebirds Wild Burrito | ||||||||||||||
The Shops at Kalakaua | Honolulu, HI | 1971/2006 | 3 | 11,671 | 100.0 | 1,631,568 | 139.80 | Hawaii Beachware & Fashion, Diesel U.S.A. Inc. | ||||||||||||||
Waikele Center | Waipahu, HI | 1993/2008 | 9 | 537,728 | 98.3 | 15,535,744 | 29.39 | Lowe's, Kmart, Sports Authority | UFC Gym, Old Navy | |||||||||||||
Alamo Quarry Market (7) | San Antonio, TX | 1997/1999 | 16 | 589,501 | 94.5 | 13,029,598 | 23.39 | Regal Cinemas | Bed Bath & Beyond, Whole Foods Market | |||||||||||||
Subtotal/Weighted Average Retail Portfolio | 102 | 3,067,657 | 96.8% | $ | 68,031,791 | $22.91 | ||||||||||||||||
Office Properties | ||||||||||||||||||||||
Torrey Reserve Campus | San Diego, CA | 1996-2000 | 10 | 476,020 | 89.0% | $ | 15,488,246 | $36.56 | ||||||||||||||
Solana Beach Corporate Centre | Solana Beach, CA | 1982/2005 | 4 | 212,165 | 90.0 | 6,537,353 | 34.24 | |||||||||||||||
The Landmark at One Market (8) | San Francisco, CA | 1917/2000 | 1 | 421,934 | 100.0 | 20,125,813 | 47.70 | |||||||||||||||
One Beach Street | San Francisco, CA | 1924/1972/1987/1992 | 1 | 97,614 | 84.2 | 2,618,097 | 31.85 | |||||||||||||||
First & Main | Portland, OR | 2010 | 1 | 360,813 | 80.4 | 8,751,722 | 30.17 | |||||||||||||||
Lloyd District Portfolio | Portland, OR | 1940-2011 | 6 | 581,208 | 82.2 | 10,369,589 | 21.70 | |||||||||||||||
City Center Bellevue | Bellevue, WA | 1987 | 1 | 495,038 | 97.4 | 15,513,025 | 32.17 | |||||||||||||||
Subtotal/Weighted Average Office Portfolio | 24 | 2,644,792 | 89.5% | $ | 79,403,845 | $33.54 | ||||||||||||||||
Total/Weighted Average Retail and Office Portfolio | 126 | 5,712,449 | 93.4% | $ | 147,435,636 | $27.63 |
First Quarter 2014 Supplemental Information | Page 21 |
PROPERTY REPORT (CONTINUED) | |
As of March 31, 2014 | |||||||||||||||||||||||||
Average | |||||||||||||||||||||||||
Number | Monthly | ||||||||||||||||||||||||
Year Built/ | of | Percentage | Annualized | Base Rent per | |||||||||||||||||||||
Property | Location | Renovated | Buildings | Units | Leased (2) | Base Rent (3) | Leased Unit (4) | ||||||||||||||||||
Loma Palisades | San Diego, CA | 1958/2001-2008 | 80 | 548 | 100.0% | $ | 10,600,776 | $ | 1,612 | ||||||||||||||||
Imperial Beach Gardens | Imperial Beach, CA | 1959/2008-present | 26 | 160 | 100.0 | 2,737,956 | $ | 1,426 | |||||||||||||||||
Mariner's Point | Imperial Beach, CA | 1986 | 8 | 88 | 98.9 | 1,246,392 | $ | 1,193 | |||||||||||||||||
Santa Fe Park RV Resort (9) | San Diego, CA | 1971/2007-2008 | 1 | 126 | 74.0 | 813,420 | $ | 727 | |||||||||||||||||
Total/Weighted Average Multifamily Portfolio | 115 | 922 | 96.3% | $ | 15,398,544 | $ | 1,445 | ||||||||||||||||||
Mixed-Use Portfolio | |||||||||||||||||||||||||
Net | Annualized | ||||||||||||||||||||||||
Number | Rentable | Base Rent | |||||||||||||||||||||||
Year Built/ | of | Square | Percentage | Annualized | per Leased | Retail | |||||||||||||||||||
Retail Portion | Location | Renovated | Buildings | Feet (1) | Leased (2) | Base Rent (3) | Square Foot (4) | Anchor Tenant(s) (5) | Other Principal Retail Tenants (6) | ||||||||||||||||
Waikiki Beach Walk - Retail | Honolulu, HI | 2006 | 3 | 96,707 | 98.9 | % | $ | 10,163,129 | $ | 106.26 | Yard House, Roy's | ||||||||||||||
Annualized | |||||||||||||||||||||||||
Number | Revenue per | ||||||||||||||||||||||||
Year Built/ | of | Average | Average | Available | |||||||||||||||||||||
Hotel Portion | Location | Renovated | Buildings | Units | Occupancy (10) | Daily Rate(10) | Room (10) | ||||||||||||||||||
Waikiki Beach Walk - Embassy Suites™ | Honolulu, HI | 2008 | 2 | 369 | 90.2 | % | $ | 300.35 | $ | 270.92 |
(1) | The net rentable square feet for each of our retail properties and the retail portion of our mixed-use property is the sum of (1) the square footages of existing leases, plus (2) for available space, the field-verified square footage. The net rentable square feet for each of our office properties is the sum of (1) the square footages of existing leases, plus (2) for available space, management’s estimate of net rentable square feet based, in part, on past leases. The net rentable square feet included in such office leases is generally determined consistently with the Building Owners and Managers Association, or BOMA, 1996 measurement guidelines. Net rentable square footage may be adjusted from the prior periods to reflect re-measurement of leased space at the properties. |
(2) | Percentage leased for each of our retail and office properties and the retail portion of the mixed-use property includes square footage under leases as of March 31, 2014, including leases which may not have commenced as of March 31, 2014. Percentage leased for our multifamily properties includes total units rented as of March 31, 2014. |
(3) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended March 31, 2014 by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. |
(4) | Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of March 31, 2014. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of March 31, 2014. |
(5) | Retail anchor tenants are defined as retail tenants leasing 50,000 square feet or more. |
(6) | Other principal retail tenants are defined as the two tenants leasing the most square footage, excluding anchor tenants. |
(7) | Net rentable square feet at certain of our retail properties includes pad sites leased pursuant to the ground leases in the following table: |
Property | Number of Ground Leases | Square Footage Leased Pursuant to Ground Leases | Aggregate Annualized Base Rent | ||||||
Carmel Mountain Plaza | 6 | 127,112 | $ | 1,081,452 | |||||
South Bay Marketplace | 1 | 2,824 | $ | 91,320 | |||||
Del Monte Center | 2 | 295,100 | $ | 201,291 | |||||
Alamo Quarry Market | 4 | 31,994 | $ | 470,075 |
(8) | This property contains 421,934 net rentable square feet consisting of The Landmark at One Market (377,714 net rentable square feet) as well as a separate long-term leasehold interest in approximately 44,220 net rentable square feet of space located in an adjacent six-story leasehold known as the Annex. We currently lease the Annex from an affiliate of the Paramount Group pursuant to a long-term master lease effective through June 30, 2016, which we have the option to extend until 2026 pursuant to two five-year extension options. |
(9) | The Santa Fe Park RV Resort is subject to seasonal variation, with higher rates of occupancy occurring during the summer months. During the 12 months ended March 31, 2014, the highest average monthly occupancy rate for this property was 99%, occurring in July 2013. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments. |
(10) | Average occupancy represents the percentage of available units that were sold during the three months ended March 31, 2014, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for the three months ended March 31, 2014 by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for the three months ended March 31, 2014 and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services. |
First Quarter 2014 Supplemental Information | Page 22 |
RETAIL LEASING SUMMARY | |
As of March 31, 2014 | |||||||||||||||||||||||||||||||||
Total Lease Summary - Comparable (1) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 15 | 100% | 62,667 | $29.15 | $26.55 | $ | 162,804 | 9.8 | % | 20.9 | % | 5.8 | $ | 529,318 | $8.45 | ||||||||||||||||||
4th Quarter 2013 | 14 | 100% | 79,122 | $36.61 | $36.60 | $ | 373 | — | % | 6.4 | % | 6.6 | $ | 240,100 | $3.03 | ||||||||||||||||||
3rd Quarter 2013 | 23 | 100% | 53,709 | $33.68 | $34.08 | $ | (21,357 | ) | (1.2 | )% | 4.5 | % | 3.7 | $ | 333,800 | $6.21 | |||||||||||||||||
2nd Quarter 2013 | 11 | 100% | 38,960 | $30.60 | $28.09 | $ | 97,872 | 8.9 | % | 17.6 | % | 5.5 | $ | 54,358 | $1.40 | ||||||||||||||||||
Total 12 months | 63 | 100% | 234,458 | $32.95 | $31.92 | $ | 239,692 | 3.2 | % | 10.7 | % | 5.5 | $ | 1,157,576 | $4.94 | ||||||||||||||||||
New Lease Summary - Comparable (1) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 1 | 7% | 1,609 | $42.00 | $40.76 | $ | 1,996 | 3.0 | % | 3.0 | % | 5.0 | $ | 16,090 | $10.00 | ||||||||||||||||||
4th Quarter 2013 | 4 | 29% | 12,377 | $77.23 | $58.46 | $ | 232,378 | 32.1 | % | 36.3 | % | 8.0 | $ | 240,100 | $19.40 | ||||||||||||||||||
3rd Quarter 2013 | 3 | 13% | 5,790 | $38.49 | $44.97 | $ | (37,565 | ) | (14.4 | )% | (14.5 | )% | 3.2 | $ | 313,800 | $54.20 | |||||||||||||||||
2nd Quarter 2013 | 2 | 18% | 3,275 | $31.75 | $26.72 | $ | 16,470 | 18.8 | % | 20.1 | % | 5.3 | $ | 32,750 | $10.00 | ||||||||||||||||||
Total 12 months | 10 | 16% | 23,051 | $58.58 | $49.33 | $ | 213,279 | 18.8 | % | 22.1 | % | 6.2 | $ | 602,740 | $26.15 | ||||||||||||||||||
Renewal Lease Summary - Comparable (1)(5) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 14 | 93% | 61,058 | $28.81 | $26.18 | $ | 160,808 | 10.1 | % | 21.6 | % | 5.9 | $ | 513,228 | $8.41 | ||||||||||||||||||
4th Quarter 2013 | 10 | 71% | 66,745 | $29.07 | $32.55 | $ | (232,005 | ) | (10.7 | )% | (4.4 | )% | 6.3 | $ | — | $0.00 | |||||||||||||||||
3rd Quarter 2013 | 20 | 87% | 47,919 | $33.10 | $32.76 | $ | 16,208 | 1.0 | % | 7.7 | % | 3.7 | $ | 20,000 | $0.42 | ||||||||||||||||||
2nd Quarter 2013 | 9 | 82% | 35,685 | $30.49 | $28.21 | $ | 81,402 | 8.1 | % | 17.4 | % | 5.5 | $ | 21,608 | $0.61 | ||||||||||||||||||
Total 12 months | 53 | 84% | 211,407 | $30.15 | $30.03 | $ | 26,413 | 0.4 | % | 8.5 | % | 5.5 | $ | 554,836 | $2.63 | ||||||||||||||||||
Total Lease Summary - Comparable and Non-Comparable | |||||||||||||||||||||||||||||||||
Number of Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | ||||||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 15 | 62,667 | $29.15 | 5.8 | $ | 529,318 | $8.45 | ||||||||||||||||||||||||||
4th Quarter 2013 | 21 | 128,422 | $32.37 | 7.6 | $ | 1,704,715 | $13.27 | ||||||||||||||||||||||||||
3rd Quarter 2013 | 26 | 59,433 | $34.49 | 4.1 | $ | 448,940 | $7.55 | ||||||||||||||||||||||||||
2nd Quarter 2013 | 16 | 73,385 | $22.18 | 7.1 | $ | 350,858 | $4.78 | ||||||||||||||||||||||||||
Total 12 months | 78 | 323,907 | $29.83 | 6.5 | $ | 3,033,831 | $9.36 |
(1) | Comparable leases represent those leases signed on spaces for which there was a previous lease. |
(2) | Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term. |
(3) | Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term. |
(4) | Weighted average is calculated on the basis of square footage. |
(5) | Excludes renewals at fixed contractual rates specified in the lease. |
First Quarter 2014 Supplemental Information | Page 23 |
OFFICE LEASING SUMMARY | |
As of March 31, 2014 | |||||||||||||||||||||||||||||||||
Total Lease Summary - Comparable (1) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 4 | 100% | 4,406 | $36.88 | $33.19 | $ | 16,274 | 11.1 | % | 13.8 | % | 3.3 | $ | 30,626 | $6.95 | ||||||||||||||||||
4th Quarter 2013 | 16 | 100% | 163,157 | $28.76 | $28.89 | $ | (21,093 | ) | (0.4 | )% | 12.3 | % | 7.2 | $ | 2,693,623 | $16.51 | |||||||||||||||||
3rd Quarter 2013 | 11 | 100% | 52,805 | $31.44 | $31.32 | $ | 5,875 | 0.4 | % | 3.7 | % | 5.8 | $ | 412,943 | $7.82 | ||||||||||||||||||
2nd Quarter 2013 | 12 | 100% | 59,028 | $30.99 | $32.23 | $ | (72,922 | ) | (3.8 | )% | 5.4 | % | 6.7 | $ | 1,486,752 | $25.19 | |||||||||||||||||
Total 12 months | 43 | 100% | 279,396 | $29.87 | $30.12 | $ | (71,866 | ) | (0.9 | )% | 9.1 | % | 6.8 | $ | 4,623,944 | $16.55 | |||||||||||||||||
New Lease Summary - Comparable (1) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 2 | 50% | 2,469 | $35.58 | $32.67 | $ | 7,192 | 8.9 | % | 10.3 | % | 4.3 | $ | 30,626 | $12.40 | ||||||||||||||||||
4th Quarter 2013 | 5 | 31% | 68,796 | $25.81 | $27.57 | $ | (120,948 | ) | (6.4 | )% | 12.3 | % | 9.8 | $ | 1,981,147 | $28.80 | |||||||||||||||||
3rd Quarter 2013 | 2 | 18% | 14,930 | $35.74 | $32.28 | $ | 51,693 | 10.7 | % | 12.8 | % | 9.1 | $ | 134,327 | $9.00 | ||||||||||||||||||
2nd Quarter 2013 | 5 | 42% | 38,462 | $27.43 | $29.83 | $ | (92,602 | ) | (8.1 | )% | 6.0 | % | 8.7 | $ | 1,343,691 | $34.94 | |||||||||||||||||
Total 12 months | 14 | 33% | 124,657 | $27.69 | $28.93 | $ | (154,665 | ) | (4.3 | )% | 10.3 | % | 9.3 | $ | 3,489,791 | $28.00 | |||||||||||||||||
Renewal Lease Summary - Comparable (1)(5) | |||||||||||||||||||||||||||||||||
Number of Leases Signed | % of Comparable Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Prior Rent Per Sq. Ft. (3) | Annual Change in Rent | Cash Basis % Change Over Prior Rent | Straight-Line Basis % Change Over Prior Rent | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | |||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 2 | 50% | 1,937 | $38.54 | $33.86 | $ | 9,082 | 13.8 | % | 18.3 | % | 2.0 | $ | — | $0.00 | ||||||||||||||||||
4th Quarter 2013 | 11 | 69% | 94,361 | $30.91 | $29.85 | $ | 99,855 | 3.5 | % | 12.3 | % | 5.4 | $ | 712,476 | $7.55 | ||||||||||||||||||
3rd Quarter 2013 | 9 | 82% | 37,875 | $29.74 | $30.95 | $ | (45,818 | ) | (3.9 | )% | — | % | 4.5 | $ | 278,616 | $7.36 | |||||||||||||||||
2nd Quarter 2013 | 7 | 58% | 20,566 | $37.66 | $36.70 | $ | 19,680 | 2.6 | % | 4.5 | % | 2.9 | $ | 143,061 | $6.96 | ||||||||||||||||||
Total 12 months | 29 | 67% | 154,739 | $31.62 | $31.08 | $ | 82,799 | 1.7 | % | 8.2 | % | 4.8 | $ | 1,134,153 | $7.33 | ||||||||||||||||||
Total Lease Summary - Comparable and Non-Comparable | |||||||||||||||||||||||||||||||||
Number of Leases Signed | Net Rentable Square Feet Signed | Contractual Rent Per Sq. Ft. (2) | Weighted Average Lease Term (4) | Tenant Improvements & Incentives | Tenant Improvements & Incentives Per Sq. Ft. | ||||||||||||||||||||||||||||
Quarter | |||||||||||||||||||||||||||||||||
1st Quarter 2014 | 9 | 28,773 | $40.57 | 5.5 | $ | 930,102 | $32.33 | ||||||||||||||||||||||||||
4th Quarter 2013 | 23 | 198,307 | $29.35 | 7.1 | $ | 4,207,999 | $21.22 | ||||||||||||||||||||||||||
3rd Quarter 2013 | 19 | 79,317 | $32.87 | 4.7 | $ | 910,994 | $11.49 | ||||||||||||||||||||||||||
2nd Quarter 2013 | 17 | 70,070 | $31.56 | 6.6 | $ | 1,756,251 | $25.06 | ||||||||||||||||||||||||||
Total 12 months | 68 | 376,467 | $31.36 | 6.4 | $ | 7,805,346 | $20.73 |
(1) | Comparable leases represent those leases signed on spaces for which there was a previous lease. |
(2) | Contractual rent represents contractual minimum rent under the new lease for the first twelve months of the term. |
(3) | Prior rent represents the minimum rent paid under the previous lease in the final twelve months of the term. |
(4) | Weighted average is calculated on the basis of square footage. |
(5) | Excludes renewals at fixed contractual rates specified in the lease. |
First Quarter 2014 Supplemental Information | Page 24 |
MULTIFAMILY LEASING SUMMARY | |
As of March 31, 2014 | ||||||||
Lease Summary - Loma Palisades | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 548 | 100.0% | $10,600,776 | $1,612 | ||||
4th Quarter 2013 | 539 | 98.4% | $10,439,364 | $1,613 | ||||
3rd Quarter 2013 | 546 | 99.6% | $10,306,416 | $1,574 | ||||
2nd Quarter 2013 | 538 | 98.2% | $10,058,160 | $1,558 | ||||
Lease Summary - Imperial Beach Gardens | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 160 | 100.0% | $2,737,956 | $1,426 | ||||
4th Quarter 2013 | 156 | 97.5% | $2,692,248 | $1,438 | ||||
3rd Quarter 2013 | 160 | 100.0% | $2,758,512 | $1,437 | ||||
2nd Quarter 2013 | 160 | 100.0% | $2,725,968 | $1,420 | ||||
Lease Summary - Mariner's Point | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 87 | 98.9% | $1,246,392 | $1,193 | ||||
4th Quarter 2013 | 88 | 100.0% | $1,203,624 | $1,140 | ||||
3rd Quarter 2013 | 88 | 100.0% | $1,231,584 | $1,166 | ||||
2nd Quarter 2013 | 88 | 100.0% | $1,198,860 | $1,135 | ||||
Lease Summary - Santa Fe Park RV Resort | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 93 | 74.0% | $813,420 | $727 | ||||
4th Quarter 2013 | 106 | 84.0% | $828,720 | $652 | ||||
3rd Quarter 2013 | 98 | 77.8% | $789,708 | $671 | ||||
2nd Quarter 2013 | 115 | 91.3% | $1,153,548 | $836 | ||||
Total Multifamily Lease Summary | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 888 | 96.3% | $15,398,544 | $1,445 | ||||
4th Quarter 2013 | 889 | 96.4% | $15,163,956 | $1,422 | ||||
3rd Quarter 2013 | 892 | 96.7% | $15,086,220 | $1,410 | ||||
2nd Quarter 2013 | 901 | 97.7% | $15,136,536 | $1,400 |
(1) | Percentage leased for our multifamily properties includes total units rented as of each respective quarter end date. |
(2) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) as of each respective quarter end date. |
(3) | Annualized base rent per leased unit is calculated by dividing annualized base rent, by units under lease as of each respective quarter end date. |
First Quarter 2014 Supplemental Information | Page 25 |
MIXED-USE LEASING SUMMARY | |
As of March 31, 2014 | ||||||||
Lease Summary - Retail Portion | ||||||||
Number of Leased Square Feet | Percentage leased (1) | Annualized Base Rent (2) | Annualized base Rent per Leased Square Foot (3) | |||||
Quarter | ||||||||
1st Quarter 2014 | 95,682 | 98.9% | $10,163,129 | $106 | ||||
4th Quarter 2013 | 94,623 | 97.8% | $10,235,236 | $108 | ||||
3rd Quarter 2013 | 94,692 | 97.9% | $10,130,130 | $107 | ||||
2nd Quarter 2013 | 90,664 | 93.8% | $9,898,572 | $109 | ||||
Lease Summary - Hotel Portion | ||||||||
Number of Leased Units | Average Occupancy (4) | Average Daily Rate (4) | Annualized Revenue per Available Room (4) | |||||
Quarter | ||||||||
1st Quarter 2014 | 333 | 90.2% | $300 | $271 | ||||
4th Quarter 2013 | 305 | 82.6% | $290 | $239 | ||||
3rd Quarter 2013 | 328 | 88.9% | $331 | $294 | ||||
2nd Quarter 2013 | 323 | 87.6% | $278 | $244 |
(1) | Percentage leased for mixed-use property includes square footage under leases as of March 31, 2014, including leases which may not have commenced as of March 31, 2014. |
(2) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended March 31, 2014 by 12. In the case of triple net or modified gross leases, annualized base rent does not include tenant reimbursements for real estate taxes, insurance, common area or other operating expenses. |
(3) | Annualized base rent per leased square foot is calculated by dividing annualized base rent, by square footage under lease as of March 31, 2014. |
(4) | Average occupancy represents the percentage of available units that were sold during the three months ended March 31, 2014, and is calculated by dividing the number of units sold by the product of the total number of units and the total number of days in the period. Average daily rate represents the average rate paid for the units sold and is calculated by dividing the total room revenue (i.e., excluding food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services) for each respective quarter period by the number of units sold. Revenue per available room, or RevPAR, represents the total unit revenue per total available units for each respective quarter period and is calculated by multiplying average occupancy by the average daily rate. RevPAR does not include food and beverage revenues or other hotel operations revenues such as telephone, parking and other guest services. |
First Quarter 2014 Supplemental Information | Page 26 |
LEASE EXPIRATIONS | |
As of March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Assumes no exercise of lease options | |||||||||||||||||||||||||||||||||||||||||
Office | Retail | Mixed-Use (Retail Portion Only) | Total | ||||||||||||||||||||||||||||||||||||||
% of | % of | Annualized | % of | % of | Annualized | % of | % of | Annualized | % of | Annualized | |||||||||||||||||||||||||||||||
Expiring | Office | Total | Base Rent | Expiring | Retail | Total | Base Rent | Expiring | Mixed-Use | Total | Base Rent | Expiring | Total | Base Rent | |||||||||||||||||||||||||||
Year | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | ||||||||||||||||||||||||||
Month to Month | 25,265 | 1.0 | % | 0.4 | % | $4.45 | 24,557 | 0.8 | % | 0.4 | % | $15.05 | 2,791 | 2.9 | % | — | % | $— | 52,613 | 0.9 | % | $9.16 | |||||||||||||||||||
2014 | 173,516 | 6.6 | 3.0 | $29.64 | 97,087 | 3.2 | 1.7 | $31.62 | 4,544 | 4.7 | 0.1 | $114.60 | 275,147 | 4.7 | $31.74 | ||||||||||||||||||||||||||
2015 | 255,568 | 9.7 | 4.4 | $34.65 | 246,784 | 8.0 | 4.2 | $25.92 | 10,573 | 10.9 | 0.2 | $231.63 | 512,925 | 8.8 | $34.51 | ||||||||||||||||||||||||||
2016 | 274,013 | 10.4 | 4.7 | $30.87 | 200,274 | 6.5 | 3.4 | $34.83 | 12,750 | 13.2 | 0.2 | $139.95 | 487,037 | 8.4 | $35.35 | ||||||||||||||||||||||||||
2017 | 373,848 | 14.1 | 6.4 | $35.53 | 371,789 | 12.1 | 6.4 | $24.74 | 8,411 | 8.7 | 0.1 | $150.73 | 754,048 | 13.0 | $31.49 | ||||||||||||||||||||||||||
2018 | 201,055 | 7.6 | 3.5 | $36.30 | 1,079,794 | 35.2 | 18.6 | $19.48 | 10,767 | 11.1 | 0.2 | $121.71 | 1,291,616 | 22.2 | $22.95 | ||||||||||||||||||||||||||
2019 | 262,810 | 9.9 | 4.5 | $37.79 | 331,078 | 10.8 | 5.7 | $23.91 | 15,279 | 15.8 | 0.3 | $77.65 | 609,167 | 10.5 | $31.25 | ||||||||||||||||||||||||||
2020 | 278,001 | 10.5 | 4.8 | $39.26 | 137,024 | 4.5 | 2.4 | $11.92 | 17,843 | 18.5 | 0.3 | $45.53 | 432,868 | 7.5 | $30.86 | ||||||||||||||||||||||||||
2021 | 215,469 | 8.1 | 3.7 | $36.31 | 45,011 | 1.5 | 0.8 | $46.73 | — | — | — | — | 260,480 | 4.5 | $38.11 | ||||||||||||||||||||||||||
2022 | 9,364 | 0.4 | 0.2 | $20.00 | 148,868 | 4.9 | 2.6 | $30.70 | 11,464 | 11.9 | 0.2 | $72.56 | 169,696 | 2.9 | $32.94 | ||||||||||||||||||||||||||
2023 | 96,281 | 3.6 | 1.7 | $26.91 | 57,170 | 1.9 | 1.0 | $24.60 | — | — | — | — | 153,451 | 2.6 | $26.05 | ||||||||||||||||||||||||||
Thereafter | 175,953 | (2)(3) | 6.7 | 3.0 | $27.32 | 177,487 | 5.8 | 3.1 | $18.87 | — | — | — | — | 353,440 | 6.1 | $23.08 | |||||||||||||||||||||||||
Signed Leases Not Commenced | 27,156 | 1.0 | 0.5 | — | 51,483 | 1.7 | 0.9 | — | 1,260 | 1.3 | — | — | 79,899 | 1.4 | — | ||||||||||||||||||||||||||
Available | 276,493 | 10.5 | 4.8 | — | 99,251 | 3.2 | 1.7 | — | 1,025 | 1.1 | — | — | 376,769 | 6.5 | — | ||||||||||||||||||||||||||
Total (4) | 2,644,792 | 100.0 | % | 45.5 | % | $30.02 | 3,067,657 | 100.0 | % | 52.8 | % | $22.18 | 96,707 | 100.0 | % | 1.7 | % | $105.09 | 5,809,156 | 100.0 | % | $27.13 | |||||||||||||||||||
Assumes all lease options are exercised | |||||||||||||||||||||||||||||||||||||||||
Office | Retail | Mixed-Use (Retail Portion Only) | Total | ||||||||||||||||||||||||||||||||||||||
% of | % of | Annualized | % of | % of | Annualized | % of | % of | Annualized | % of | Annualized | |||||||||||||||||||||||||||||||
Expiring | Office | Total | Base Rent | Expiring | Retail | Total | Base Rent | Expiring | Mixed-Use | Total | Base Rent | Expiring | Total | Base Rent | |||||||||||||||||||||||||||
Year | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | Sq. Ft. | Sq. Ft. | Per Sq. Ft.(1) | ||||||||||||||||||||||||||
Month to Month | 25,265 | 1.0 | % | 0.4 | % | $4.45 | 24,557 | 0.8 | % | 0.4 | % | $15.05 | 2,791 | 2.9 | % | — | % | $— | 52,613 | 0.9 | % | $9.16 | |||||||||||||||||||
2014 | 150,869 | 5.7 | 2.6 | $30.87 | 57,830 | 1.9 | 1.0 | $33.48 | 4,544 | 4.7 | 0.1 | $114.60 | 213,243 | 3.7 | $33.36 | ||||||||||||||||||||||||||
2015 | 95,310 | 3.6 | 1.6 | $33.73 | 57,388 | 1.9 | 1.0 | $34.29 | 4,359 | 4.5 | 0.1 | $198.32 | 157,057 | 2.7 | $38.50 | ||||||||||||||||||||||||||
2016 | 194,747 | 7.4 | 3.4 | $29.96 | 63,309 | 2.1 | 1.1 | $30.80 | 8,722 | 9.0 | 0.2 | $145.98 | 266,778 | 4.6 | $33.95 | ||||||||||||||||||||||||||
2017 | 58,398 | 2.2 | 1.0 | $36.85 | 127,156 | 4.1 | 2.2 | $28.07 | 7,371 | 7.6 | 0.1 | $145.86 | 192,925 | 3.3 | $35.23 | ||||||||||||||||||||||||||
2018 | 91,857 | 3.5 | 1.6 | $31.93 | 90,694 | 3.0 | 1.6 | $29.46 | 10,767 | 11.1 | 0.2 | $121.71 | 193,318 | 3.3 | $35.77 | ||||||||||||||||||||||||||
2019 | 68,536 | 2.6 | 1.2 | $38.64 | 120,563 | 3.9 | 2.1 | $24.15 | 3,589 | 3.7 | 0.1 | $147.48 | 192,688 | 3.3 | $31.60 | ||||||||||||||||||||||||||
2020 | 185,038 | 7.0 | 3.2 | $30.69 | 203,166 | 6.6 | 3.5 | $22.62 | 1,951 | 2.0 | — | $142.92 | 390,155 | 6.7 | $27.05 | ||||||||||||||||||||||||||
2021 | 85,490 | 3.2 | 1.5 | $32.81 | 58,908 | 1.9 | 1.0 | $52.43 | 10,242 | 10.6 | 0.2 | $204.62 | 154,640 | 2.7 | $51.66 | ||||||||||||||||||||||||||
2022 | 342,292 | 12.9 | 5.9 | $35.84 | 87,098 | 2.8 | 1.5 | $35.36 | 11,464 | 11.9 | 0.2 | $72.56 | 440,854 | 7.6 | $36.70 | ||||||||||||||||||||||||||
2023 | 142,146 | 5.4 | 2.4 | $41.80 | 178,755 | 5.8 | 3.1 | $31.47 | — | — | — | — | 320,901 | 5.5 | $36.05 | ||||||||||||||||||||||||||
Thereafter | 901,195 | (2)(3) | 34.1 | 15.5 | $34.57 | 1,847,499 | 60.2 | 31.8 | $19.63 | 28,622 | 29.6 | 0.5 | $48.33 | 2,777,316 | 47.8 | $24.77 | |||||||||||||||||||||||||
Signed Leases Not Commenced | 27,156 | 1.0 | 0.5 | — | 51,483 | 1.7 | 0.9 | — | 1,260 | 1.3 | — | — | 79,899 | 1.4 | — | ||||||||||||||||||||||||||
Available | 276,493 | 10.5 | 4.8 | — | 99,251 | 3.2 | 1.7 | — | 1,025 | 1.1 | — | — | 376,769 | 6.5 | — | ||||||||||||||||||||||||||
Total (4) | 2,644,792 | 100.0 | % | 45.5 | % | $30.02 | 3,067,657 | 100.0 | % | 52.8 | % | $22.18 | 96,707 | 100.0 | % | 1.7 | % | $105.09 | 5,809,156 | 100.0 | % | $27.13 |
First Quarter 2014 Supplemental Information | Page 27 |
LEASE EXPIRATIONS (CONTINUED) | |
As of March 31, 2014 |
(1) | Annualized base rent per leased square foot is calculated by dividing (i) annualized base rent for leases expiring during the applicable period, by (ii) square footage under such expiring leases. Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended March 31, 2014 for the leases expiring during the applicable period by (ii) 12 months. |
(2) | The expirations include 22,105 square feet currently leased by Integra Telecom Holdings, Inc. at Lloyd District Portfolio through May 31, 2014, for which Familycare, Inc. has signed an agreement to lease such space beginning June 1, 2014 through September 30, 2024 with an option to extend the lease through September 30, 2029. |
(3) | The expirations include 22,105 square feet currently leased by Familycare, Inc. at Lloyd District Portfolio through May 31, 2014, for which PacifiCorp has signed an agreement to lease such space beginning October 1, 2014 through September 30, 2024 with options to extend the lease through September 30, 2034. |
(4) | Individual items may not add up to total due to rounding. |
First Quarter 2014 Supplemental Information | Page 28 |
PORTFOLIO LEASED STATISTICS | |
At March 31, 2014 | At March 31, 2013 | |||||||||||||||||
Type | Size | Leased (1) | Leased % | Size | Leased (1) | Leased % | ||||||||||||
Overall Portfolio (2) Statistics | ||||||||||||||||||
Retail Properties (square feet) | 3,067,657 | 2,968,406 | 96.8 | % | 3,068,645 | 2,948,392 | 96.1 | % | ||||||||||
Office Properties (square feet) | 2,644,792 | 2,368,299 | 89.5 | % | 2,645,567 | 2,482,061 | 93.8 | % | ||||||||||
Multifamily Properties (units) | 922 | 888 | 96.3 | % | 922 | 869 | 94.3 | % | ||||||||||
Mixed-Use Properties (square feet) | 96,707 | 95,682 | 98.9 | % | 96,707 | 92,333 | 95.5 | % | ||||||||||
Mixed-Use Properties (units) | 369 | 333 | (3) | 90.2 | % | 369 | 331 | (3) | 89.6 | % | ||||||||
Same-Store(2) Statistics | ||||||||||||||||||
Retail Properties (square feet) | 3,067,657 | 2,968,406 | 96.8 | % | 3,033,489 | 2,913,236 | 96.0 | % | ||||||||||
Office Properties (square feet) | 1,587,564 | (4) | 1,467,114 | 92.4 | % | 995,182 | (4) | 977,616 | 98.2 | % | ||||||||
Multifamily Properties (units) | 922 | 888 | 96.3 | % | 922 | 869 | 94.3 | % | ||||||||||
Mixed-Use Properties (square feet) | 96,707 | 95,682 | 98.9 | % | 96,707 | 92,333 | 95.5 | % | ||||||||||
Mixed-Use Properties (units) | 369 | 333 | (3) | 90.2 | % | 369 | 331 | (3) | 89.6 | % |
(1) | Leased square feet includes square feet under lease as of each date, including leases which may not have commenced as of that date. Leased units for our multifamily properties include total units rented as of that date. |
(2) | See Glossary of Terms. |
(3) | Represents average occupancy for the three months ended March 31, 2014 and 2013. |
(4) | The same-store portfolio excludes Torrey Reserve Campus and Lloyd District Portfolio due to significant redevelopment activity. |
First Quarter 2014 Supplemental Information | Page 29 |
TOP TENANTS - RETAIL | |
As of March 31, 2014 | |||||||||||||||||||||||||
Tenant | Property(ies) | Lease Expiration | Total Leased Square Feet | Rentable Square Feet as a Percentage of Total Retail | Rentable Square Feet as a Percentage of Total | Annualized Base Rent | Annualized Base Rent as a Percentage of Total Retail | Annualized Base Rent as a Percentage of Total | |||||||||||||||||
1 | Lowe's | Waikele Center | 5/31/2018 | 155,000 | 5.1 | % | 2.7 | % | $ | 4,307,153 | 6.3 | % | 2.7 | % | |||||||||||
2 | Kmart | Waikele Center | 6/30/2018 | 119,590 | 3.9 | 2.1 | 4,185,650 | 6.2 | 2.7 | ||||||||||||||||
3 | Sports Authority | Carmel Mountain Plaza, Waikele Center | 11/30/2018 7/18/2018 | 90,722 | 3.0 | 1.6 | 2,133,950 | 3.1 | 1.4 | ||||||||||||||||
4 | Nordstrom Rack | Carmel Mountain Plaza, Alamo Quarry Market | 9/30/2022 10/31/2022 | 69,047 | 2.3 | 1.2 | 1,990,316 | 2.9 | 1.3 | ||||||||||||||||
5 | Sprouts Farmers Market | Solana Beach Towne Centre, Carmel Mountain Plaza, Geary Marketplace | 6/30/2019 3/31/2025 9/30/2032 | 71,431 | 2.3 | 1.2 | 1,789,248 | 2.6 | 1.1 | ||||||||||||||||
6 | Old Navy | South Bay Marketplace, Waikele Center, Alamo Quarry Market | 4/30/2016 7/31/2016 9/30/2017 | 59,780 | 1.9 | 1.0 | * | * | * | ||||||||||||||||
7 | Vons | Lomas Santa Fe Plaza | 12/31/2017 | 49,895 | 1.6 | 0.9 | 1,216,700 | 1.8 | 0.8 | ||||||||||||||||
8 | Marshalls | Solana Beach Towne Centre, Carmel Mountain Plaza | 1/31/2015 1/31/2019 | 68,055 | 2.2 | 1.2 | 1,175,170 | 1.7 | 0.7 | ||||||||||||||||
9 | Regal Cinemas | Alamo Quarry Market | 3/31/2018 | 72,447 | 2.4 | 1.2 | 1,122,929 | 1.7 | 0.7 | ||||||||||||||||
10 | Gap | Del Monte Center, Waikele Center, Alamo Quarry Market | 9/20/2020 2/28/2022 4/30/2024 | 41,464 | 1.4 | 0.7 | 960,671 | 1.4 | 0.6 | ||||||||||||||||
Top 10 Retail Tenants Total | 797,431 | 26.1 | % | 13.8 | % | $ | 18,881,787 | 27.7 | % | 12.0 | % |
* | Data withheld at tenant's request. |
First Quarter 2014 Supplemental Information | Page 30 |
TOP TENANTS - OFFICE | |
As of March 31, 2014 | |||||||||||||||||||||||||
Tenant | Property | Lease Expiration | Total Leased Square Feet | Rentable Square Feet as a Percentage of Total Office | Rentable Square Feet as a Percentage of Total | Annualized Base Rent | Annualized Base Rent as a Percentage of Total Office | Annualized Base Rent as a Percentage of Total | |||||||||||||||||
1 | salesforce.com | The Landmark at One Market | 6/30/2019 4/30/2020 5/31/2021 | 254,118 | 9.6 | % | 4.4 | % | $ | 12,461,668 | 15.7 | % | 7.9 | % | |||||||||||
2 | Autodesk, Inc. | The Landmark at One Market | 12/31/2015 12/31/2017 | 114,664 | 4.3 | 2.0 | 5,504,269 | 6.9 | 3.5 | ||||||||||||||||
3 | Veterans Benefits Administration | First & Main | 8/31/2020 | 93,572 | 3.5 | 1.6 | 3,006,453 | 3.8 | 1.9 | ||||||||||||||||
4 | Insurance Company of the West | Torrey Reserve Campus | 12/31/2016 | 81,040 | 3.1 | 1.4 | 2,598,814 | 3.3 | 1.6 | ||||||||||||||||
5 | Treasury Call Center | First & Main | 8/31/2020 | 63,648 | 2.4 | 1.1 | 2,184,302 | 2.8 | 1.4 | ||||||||||||||||
6 | Caradigm USA LLC | City Center Bellevue | 8/14/2017 | 68,956 | 2.6 | 1.2 | 2,166,598 | 2.7 | 1.4 | ||||||||||||||||
7 | HDR Engineering, Inc. | City Center Bellevue | 12/31/2017 | 56,024 | 2.1 | 1.0 | 1,988,852 | 2.5 | 1.3 | ||||||||||||||||
8 | Alliant International University | One Beach Street | 10/31/2019 | 64,161 | 2.4 | 1.1 | 1,796,968 | 2.3 | 1.1 | ||||||||||||||||
9 | Portland Energy Conservation | First & Main | 1/31/2021 | 73,422 | 2.8 | 1.3 | 1,684,998 | 2.1 | 1.1 | ||||||||||||||||
10 | California Bank & Trust | Torrey Reserve Campus | 2/29/2024 | 34,731 | 1.3 | 0.6 | 1,576,848 | 2.0 | 1.0 | ||||||||||||||||
Top 10 Office Tenants Total | 904,336 | 34.1 | % | 15.7 | % | $ | 34,969,770 | 44.1 | % | 22.2 | % |
First Quarter 2014 Supplemental Information | Page 31 |
First Quarter 2014 Supplemental Information | Page 32 |
GLOSSARY OF TERMS | |
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 6,658 | $ | 4,865 | ||||
Depreciation and amortization | 16,341 | 17,013 | ||||||
Interest expense | 13,632 | 14,736 | ||||||
Interest income | (48 | ) | (8 | ) | ||||
Income tax expense | 112 | 297 | ||||||
EBITDA | $ | 36,695 | $ | 36,903 |
First Quarter 2014 Supplemental Information | Page 33 |
GLOSSARY OF TERMS (CONTINUED) | |
Three Months Ended | ||||||||
March 31, | ||||||||
Reconciliation of NOI to net income | 2014 | 2013 | ||||||
Total NOI | $ | 41,307 | $ | 41,094 | ||||
General and administrative | (4,612 | ) | (4,201 | ) | ||||
Depreciation and amortization | (16,341 | ) | (17,013 | ) | ||||
Interest expense | (13,632 | ) | (14,736 | ) | ||||
Other income (expense), net | (64 | ) | (279 | ) | ||||
Net income | 6,658 | 4,865 | ||||||
Net income attributable to restricted shares | (70 | ) | (132 | ) | ||||
Net loss attributable to unitholders in the Operating Partnership | (1,986 | ) | (1,495 | ) | ||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 4,602 | $ | 3,238 |
First Quarter 2014 Supplemental Information | Page 34 |
GLOSSARY OF TERMS (CONTINUED) | |
Comparison of Three Months Ended | |||||
March 31, 2014 to 2013 | |||||
Same-Store | Non Same-Store | Redevelopment Same-Store | |||
Retail Properties | |||||
Carmel Country Plaza | X | X | |||
Carmel Mountain Plaza | X | X | |||
South Bay Marketplace | X | X | |||
Rancho Carmel Plaza | X | X | |||
Lomas Santa Fe Plaza | X | X | |||
Solana Beach Towne Centre | X | X | |||
Del Monte Center | X | X | |||
Geary Marketplace | X | X | |||
The Shops at Kalakaua | X | X | |||
Waikele Center | X | X | |||
Alamo Quarry Market | X | X | |||
Office Properties | |||||
Torrey Reserve Campus | X | X | |||
Solana Beach Corporate Centre | X | X | |||
The Landmark at One Market | X | X | |||
One Beach Street | X | X | |||
First & Main | X | X | |||
Lloyd District Portfolio | X | X | |||
City Center Bellevue | X | X | |||
Multifamily Properties | |||||
Loma Palisades | X | X | |||
Imperial Beach Gardens | X | X | |||
Mariner's Point | X | X | |||
Santa Fe Park RV Resort | X | X | |||
Mixed-Use Properties | |||||
Waikiki Beach Walk - Retail | X | X | |||
Waikiki Beach Walk - Embassy Suites™ | X | X | |||
Development Properties | |||||
Sorrento Pointe - Land | X | ||||
Torrey Reserve - Land | X | ||||
Solana Beach Corporate Centre - Land | X | ||||
Solana Beach - Highway 101 - Land | X | ||||
Lloyd District Portfolio - Land | X |
First Quarter 2014 Supplemental Information | Page 35 |