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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
• | Gateway Marketplace base rent was reflected as $1,384, rather than the correct amount of $563; |
• | Gateway Marketplace additional property income was reflected as $8, rather than the correct amount of $0; |
• | Gateway Marketplace billed expense reimbursements was reflected as $300, rather than the correct amount of $169; |
• | Gateway Marketplace property operating expenses was reflected as $(385), rather than the correct amount of $(208); |
• | Lomas Santa Fe Plaza base rent was reflected as $1,511, rather than the correct amount of $1,384; |
• | Lomas Santa Fe Plaza additional property income was reflected as $18, rather than the correct amount of $8; |
• | Lomas Santa Fe Plaza billed expense reimbursements was reflected as $515, rather than the correct amount of $300; |
• | Lomas Santa Fe Plaza property operating expenses was reflected as $(504), rather than the correct amount of $(385); |
• | Solana Beach Towne Centre base rent was reflected as $563, rather than the correct amount of $1,511; |
• | Solana Beach Towne Centre additional property income was reflected as $0, rather than the correct amount of $18; |
• | Solana Beach Towne Centre billed expense reimbursements was reflected as $169, rather than the correct amount of $515; |
• | Solana Beach Towne Centre property operating expenses was reflected as $(208), rather than the correct amount of $(504); |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Exhibit Description | |
99.2** | American Assets Trust, Inc. Supplemental Information for the quarter ended October 31, 2017. |
American Assets Trust, Inc. | ||
By: | /s/ Robert F. Barton | |
Robert F. Barton Executive Vice President, CFO | ||
November 1, 2017 |
Exhibit Number | Exhibit Description | |
99.2 |
THIRD QUARTER 2017 | |
Supplemental Information | |
Investor and Media Contact | |
American Assets Trust, Inc. | |
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 | 1,323,551 | 727,683 | 1,455 | (1) | — | — | ||||||||||
San Francisco | 35,156 | 516,985 | — | — | — | |||||||||||
Oahu | 549,308 | — | — | 96,707 | 369 | |||||||||||
Monterey | 756,209 | — | — | — | — | |||||||||||
San Antonio | 589,362 | — | — | — | — | |||||||||||
Portland | 44,153 | 942,311 | 657 | — | — | |||||||||||
Seattle | — | 494,658 | — | — | — | |||||||||||
Total | 3,297,739 | 2,681,637 | 2,112 | 96,707 | 369 | |||||||||||
Square Feet | % | |||||||
Note: Circled areas represent all markets in which American Assets Trust, Inc. 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 | 3.3 | million | 55% | ||||
Office | 2.7 | million | 45% | |||||
Data is as of September 30, 2017. | Totals | 6.0 | million | |||||
(1) Includes 122 RV spaces. | ||||||||
Third Quarter 2017 Supplemental Information | Page 2 |
INDEX | |
THIRD QUARTER 2017 SUPPLEMENTAL INFORMATION | ||
1. | FINANCIAL HIGHLIGHTS | |
Consolidated Balance Sheets | ||
Consolidated Statements of Income | ||
Funds From Operations (FFO), FFO As Adjusted & Funds Available for Distribution | ||
Corporate Guidance | ||
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 |
Third Quarter 2017 Supplemental Information | Page 3 |
Third Quarter 2017 Supplemental Information | Page 4 |
CONSOLIDATED BALANCE SHEETS | |
(Amounts in thousands, except shares and per share data) | September 30, 2017 | December 31, 2016 | |||||
(unaudited) | (audited) | ||||||
ASSETS | |||||||
Real estate, at cost | |||||||
Operating real estate | $ | 2,525,628 | $ | 2,241,061 | |||
Construction in progress | 66,218 | 50,498 | |||||
Held for development | 9,391 | 9,447 | |||||
2,601,237 | 2,301,006 | ||||||
Accumulated depreciation | (519,391 | ) | (469,460 | ) | |||
Net real estate | 2,081,846 | 1,831,546 | |||||
Cash and cash equivalents | 94,207 | 44,801 | |||||
Restricted cash | 10,124 | 9,950 | |||||
Accounts receivable, net | 8,649 | 9,330 | |||||
Deferred rent receivable, net | 38,614 | 38,452 | |||||
Other assets, net | 42,178 | 52,854 | |||||
TOTAL ASSETS | $ | 2,275,618 | $ | 1,986,933 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES: | |||||||
Secured notes payable, net | $ | 279,867 | $ | 445,180 | |||
Unsecured notes payable, net | 1,044,934 | 596,350 | |||||
Unsecured line of credit | — | 20,000 | |||||
Accounts payable and accrued expenses | 48,107 | 32,401 | |||||
Security deposits payable | 6,736 | 6,114 | |||||
Other liabilities and deferred credits, net | 47,423 | 48,337 | |||||
Total liabilities | 1,427,067 | 1,148,382 | |||||
Commitments and contingencies | |||||||
EQUITY: | |||||||
American Assets Trust, Inc. stockholders' equity | |||||||
Common stock, $0.01 par value, 490,000,000 shares authorized, 47,130,063 and 45,732,109 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 471 | 457 | |||||
Additional paid in capital | 917,334 | 874,597 | |||||
Accumulated dividends in excess of net income | (91,695 | ) | (77,296 | ) | |||
Accumulated other comprehensive income | 10,350 | 11,798 | |||||
Total American Assets Trust, Inc. stockholders' equity | 836,460 | 809,556 | |||||
Noncontrolling interests | 12,091 | 28,995 | |||||
Total equity | 848,551 | 838,551 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,275,618 | $ | 1,986,933 |
Third Quarter 2017 Supplemental Information | Page 5 |
CONSOLIDATED STATEMENTS OF INCOME | |
(Unaudited, amounts in thousands, except shares and per share data) | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUE: | |||||||||||||||
Rental income | $ | 78,135 | $ | 71,852 | $ | 221,100 | $ | 207,318 | |||||||
Other property income | 4,204 | 4,124 | 12,137 | 11,208 | |||||||||||
Total revenue | 82,339 | 75,976 | 233,237 | 218,526 | |||||||||||
EXPENSES: | |||||||||||||||
Rental expenses | 21,177 | 20,591 | 60,877 | 58,634 | |||||||||||
Real estate taxes | 8,535 | 7,396 | 23,975 | 20,446 | |||||||||||
General and administrative | 4,958 | 4,513 | 15,171 | 13,456 | |||||||||||
Depreciation and amortization | 21,192 | 17,992 | 63,360 | 53,159 | |||||||||||
Total operating expenses | 55,862 | 50,492 | 163,383 | 145,695 | |||||||||||
OPERATING INCOME | 26,477 | 25,484 | 69,854 | 72,831 | |||||||||||
Interest expense | (13,873 | ) | (13,049 | ) | (39,856 | ) | (39,148 | ) | |||||||
Other (expense) income, net | (99 | ) | (577 | ) | 403 | (454 | ) | ||||||||
NET INCOME | 12,505 | 11,858 | 30,401 | 33,229 | |||||||||||
Net income attributable to restricted shares | (60 | ) | (42 | ) | (181 | ) | (128 | ) | |||||||
Net income attributable to unitholders in the Operating Partnership | (3,351 | ) | (3,342 | ) | (8,220 | ) | (9,377 | ) | |||||||
NET INCOME ATTRIBUTABLE TO AMERICAN ASSETS TRUST, INC. STOCKHOLDERS | $ | 9,094 | $ | 8,474 | $ | 22,000 | $ | 23,724 | |||||||
EARNINGS PER COMMON SHARE | |||||||||||||||
Basic income attributable to common stockholders per share | $ | 0.19 | $ | 0.19 | $ | 0.47 | $ | 0.52 | |||||||
Weighted average shares of common stock outstanding - basic | 46,898,086 | 45,377,719 | 46,650,403 | 45,282,643 | |||||||||||
Diluted income attributable to common stockholders per share | $ | 0.19 | $ | 0.19 | $ | 0.47 | $ | 0.52 | |||||||
Weighted average shares of common stock outstanding - diluted | 64,093,066 | 63,272,702 | 64,081,697 | 63,180,637 |
Third Quarter 2017 Supplemental Information | Page 6 |
FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION | |
(Unaudited, amounts in thousands, except shares and per share data) | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Funds from Operations (FFO) (1) | |||||||||||||||
Net income | $ | 12,505 | $ | 11,858 | $ | 30,401 | $ | 33,229 | |||||||
Depreciation and amortization of real estate assets | 21,192 | 17,992 | 63,360 | 53,159 | |||||||||||
FFO, as defined by NAREIT | 33,697 | 29,850 | 93,761 | 86,388 | |||||||||||
Less: Nonforfeitable dividends on incentive stock awards | (59 | ) | (41 | ) | (177 | ) | (124 | ) | |||||||
FFO attributable to common stock and common units | $ | 33,638 | $ | 29,809 | $ | 93,584 | $ | 86,264 | |||||||
FFO per diluted share/unit | $ | 0.52 | $ | 0.47 | $ | 1.46 | $ | 1.37 | |||||||
Weighted average number of common shares and common units, diluted (2) | 64,094,454 | 63,274,411 | 64,083,186 | 63,182,040 | |||||||||||
Funds Available for Distribution (FAD) (1) | $ | 21,013 | $ | 24,290 | $ | 69,708 | $ | 65,848 | |||||||
Dividends | |||||||||||||||
Dividends declared and paid | $ | 16,724 | $ | 15,883 | $ | 50,172 | $ | 47,536 | |||||||
Dividends declared and paid per share/unit | $ | 0.26 | $ | 0.25 | $ | 0.78 | $ | 0.75 |
Third Quarter 2017 Supplemental Information | Page 7 |
FUNDS FROM OPERATIONS, FFO AS ADJUSTED & FUNDS AVAILABLE FOR DISTRIBUTION (CONTINUED) | |
(Unaudited, amounts in thousands, except shares and per share data) | Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Funds Available for Distribution (FAD) (1) | |||||||||||||||
FFO | $ | 33,697 | $ | 29,850 | $ | 93,761 | $ | 86,388 | |||||||
Adjustments: | |||||||||||||||
Tenant improvements, leasing commissions and maintenance capital expenditures | (12,537 | ) | (7,882 | ) | (26,957 | ) | (24,563 | ) | |||||||
Net effect of straight-line rents (3) | (327 | ) | 882 | 119 | 598 | ||||||||||
Amortization of net above (below) market rents (4) | (836 | ) | (857 | ) | (2,545 | ) | (2,552 | ) | |||||||
Net effect of other lease assets (5) | (9 | ) | 622 | 965 | 892 | ||||||||||
Amortization of debt issuance costs and debt fair value adjustment | 445 | 1,116 | 2,625 | 3,354 | |||||||||||
Non-cash compensation expense | 639 | 600 | 1,917 | 1,855 | |||||||||||
Nonforfeitable dividends on incentive stock awards | (59 | ) | (41 | ) | (177 | ) | (124 | ) | |||||||
FAD | $ | 21,013 | $ | 24,290 | $ | 69,708 | $ | 65,848 | |||||||
Summary of Capital Expenditures | |||||||||||||||
Tenant improvements and leasing commissions | $ | 7,240 | $ | 4,933 | $ | 14,624 | $ | 11,839 | |||||||
Maintenance capital expenditures | 5,297 | 2,949 | 12,333 | 12,724 | |||||||||||
$ | 12,537 | $ | 7,882 | $ | 26,957 | $ | 24,563 |
(1) | See Glossary of Terms. |
(2) | For the three and nine months ended September 30, 2017 and 2016, 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, amortization of lease intangibles, lease termination fees at City Center Bellevue 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. |
Third Quarter 2017 Supplemental Information | Page 8 |
CORPORATE GUIDANCE | |
(Unaudited, amounts in thousands, except share and per share data) | ||||||||||||||||
Prior 2017 Guidance Range (1) (2) | Revised 2017 Guidance Range (2) | |||||||||||||||
Funds from Operations (FFO): | ||||||||||||||||
Net income | $ | 48,618 | $ | 52,529 | $ | 43,620 | $ | 44,903 | ||||||||
Depreciation and amortization of real estate assets | 81,972 | 81,972 | 84,310 | 84,310 | ||||||||||||
FFO, as defined by NAREIT | 130,590 | 134,501 | 127,930 | 129,213 | ||||||||||||
Less: Nonforfeitable dividends on incentive stock awards | (236 | ) | (236 | ) | (236 | ) | (236 | ) | ||||||||
FFO attributable to common stock and units | $ | 130,354 | $ | 134,265 | $ | 127,694 | $ | 128,977 | ||||||||
Weighted average number of common shares and units, diluted | 65,177,168 | 65,177,168 | 64,167,851 | 64,167,851 | ||||||||||||
FFO per diluted share, updated | $ | 2.00 | $ | 2.06 | $ | 1.99 | $ | 2.01 | ||||||||
2018 Guidance Range (2) | ||||||||||||||||
Funds from Operations (FFO): | ||||||||||||||||
Net income | $ | 42,497 | $ | 47,669 | ||||||||||||
Depreciation and amortization of real estate assets | 87,703 | 87,703 | ||||||||||||||
FFO, as defined by NAREIT | 130,200 | 135,372 | ||||||||||||||
Less: Nonforfeitable dividends on incentive stock awards | (250 | ) | (250 | ) | ||||||||||||
FFO attributable to common stock and units | $ | 129,950 | $ | 135,122 | ||||||||||||
Weighted average number of common shares and units, diluted | 64,651,844 | 64,651,844 | ||||||||||||||
FFO per diluted share, updated | $ | 2.01 | $ | 2.09 |
(1) | Prior 2017 Guidance Range as reported in the Company's First Quarter 2017 Supplemental Information. |
(2) | The Company's guidance excludes any impact from future acquisitions, dispositions, equity issuances or repurchases, future debt financings or repayments. |
Third Quarter 2017 Supplemental Information | Page 9 |
SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) | |
(Unaudited, amounts in thousands) | Three Months Ended September 30, 2017 | ||||||||||||||||||
Retail | Office | Multifamily | Mixed-Use | Total | |||||||||||||||
Real estate rental revenue | |||||||||||||||||||
Same-store portfolio | $ | 25,361 | $ | 26,653 | $ | 5,223 | $ | 16,729 | $ | 73,966 | |||||||||
Non-same store portfolio (1) | 1,186 | — | 7,187 | — | 8,373 | ||||||||||||||
Total | 26,547 | 26,653 | 12,410 | 16,729 | 82,339 | ||||||||||||||
Real estate expenses | |||||||||||||||||||
Same-store portfolio | 6,616 | 7,872 | 1,772 | 9,623 | 25,883 | ||||||||||||||
Non-same store portfolio (1) | 318 | 2 | 3,509 | — | 3,829 | ||||||||||||||
Total | 6,934 | 7,874 | 5,281 | 9,623 | 29,712 | ||||||||||||||
Net Operating Income (NOI), GAAP basis | |||||||||||||||||||
Same-store portfolio | 18,745 | 18,781 | 3,451 | 7,106 | 48,083 | ||||||||||||||
Non-same store portfolio (1) | 868 | (2 | ) | 3,678 | — | 4,544 | |||||||||||||
Total | $ | 19,613 | $ | 18,779 | $ | 7,129 | $ | 7,106 | $ | 52,627 | |||||||||
Same-store portfolio NOI, GAAP basis | $ | 18,745 | $ | 18,781 | $ | 3,451 | $ | 7,106 | $ | 48,083 | |||||||||
Net effect of straight-line rents (2) | (156 | ) | 97 | — | (80 | ) | (139 | ) | |||||||||||
Amortization of net above (below) market rents (3) | (308 | ) | (477 | ) | — | (28 | ) | (813 | ) | ||||||||||
Net effect of other lease intangibles (4) | 5 | (15 | ) | — | — | (10 | ) | ||||||||||||
Same-store portfolio NOI, cash basis | $ | 18,286 | $ | 18,386 | $ | 3,451 | $ | 6,998 | $ | 47,121 |
(1) | Same-store portfolio and non-same store portfolio are determined based on properties held on September 30, 2017 and 2016. 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, amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market. |
Third Quarter 2017 Supplemental Information | Page 10 |
SAME-STORE PORTFOLIO NET OPERATING INCOME (NOI) (CONTINUED) | |
(Unaudited, amounts in thousands) | Nine Months Ended September 30, 2017 | ||||||||||||||||||
Retail | Office | Multifamily | Mixed-Use | Total | |||||||||||||||
Real estate rental revenue | |||||||||||||||||||
Same-store portfolio | $ | 74,355 | $ | 65,997 | $ | 15,118 | $ | 46,619 | $ | 202,089 | |||||||||
Non-same store portfolio (1) | 1,937 | 13,005 | 16,206 | — | 31,148 | ||||||||||||||
Total | 76,292 | 79,002 | 31,324 | 46,619 | 233,237 | ||||||||||||||
Real estate expenses | |||||||||||||||||||
Same-store portfolio | 19,890 | 19,454 | 5,063 | 28,139 | 72,546 | ||||||||||||||
Non-same store portfolio (1) | 529 | 4,266 | 7,511 | — | 12,306 | ||||||||||||||
Total | 20,419 | 23,720 | 12,574 | 28,139 | 84,852 | ||||||||||||||
Net Operating Income (NOI), GAAP basis | |||||||||||||||||||
Same-store portfolio | 54,465 | 46,543 | 10,055 | 18,480 | 129,543 | ||||||||||||||
Non-same store portfolio (1) | 1,408 | 8,739 | 8,695 | — | 18,842 | ||||||||||||||
Total | $ | 55,873 | $ | 55,282 | $ | 18,750 | $ | 18,480 | $ | 148,385 | |||||||||
Same-store portfolio NOI, GAAP basis | $ | 54,465 | $ | 46,543 | $ | 10,055 | $ | 18,480 | $ | 129,543 | |||||||||
Net effect of straight-line rents (2) | 164 | 360 | — | (57 | ) | 467 | |||||||||||||
Amortization of net above (below) market rents (3) | (896 | ) | (1,548 | ) | — | (78 | ) | (2,522 | ) | ||||||||||
Net effect of other lease assets (4) | 8 | (26 | ) | — | (18 | ) | (36 | ) | |||||||||||
Same-store portfolio NOI, cash basis | $ | 53,741 | $ | 45,329 | $ | 10,055 | $ | 18,327 | $ | 127,452 |
(1) | Same-store portfolio and non-same store portfolio are determined based on properties held on September 30, 2017 and 2016. 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, amortization of lease intangibles, lease termination fees at City Center Bellevue, 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. |
Third Quarter 2017 Supplemental Information | Page 11 |
SAME-STORE PORTFOLIO NOI COMPARISON EXCLUDING REDEVELOPMENT | |
(Unaudited, amounts in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Cash Basis: | |||||||||||||||||||||
Retail | $ | 18,286 | $ | 18,318 | (0.2 | )% | $ | 53,741 | $ | 54,224 | (0.9 | )% | |||||||||
Office | 18,386 | 18,085 | 1.7 | 45,329 | 43,181 | 5.0 | |||||||||||||||
Multifamily | 3,451 | 3,236 | 6.6 | 10,055 | 9,595 | 4.8 | |||||||||||||||
Mixed-Use | 6,998 | 7,615 | (8.1 | ) | 18,327 | 19,783 | (7.4 | ) | |||||||||||||
$ | 47,121 | $ | 47,254 | (0.3 | )% | $ | 127,452 | $ | 126,783 | 0.5 | % | ||||||||||
GAAP Basis: | |||||||||||||||||||||
Retail | $ | 18,745 | $ | 17,831 | 5.1 | % | $ | 54,465 | $ | 54,068 | 0.7 | % | |||||||||
Office | 18,781 | 17,675 | 6.3 | 46,543 | 44,031 | 5.7 | |||||||||||||||
Multifamily | 3,451 | 3,236 | 6.6 | 10,055 | 9,595 | 4.8 | |||||||||||||||
Mixed-Use | 7,106 | 7,647 | (7.1 | ) | 18,480 | 19,865 | (7.0 | ) | |||||||||||||
$ | 48,083 | $ | 46,389 | 3.7 | % | $ | 129,543 | $ | 127,559 | 1.6 | % |
Third Quarter 2017 Supplemental Information | Page 12 |
SAME-STORE PORTFOLIO NOI COMPARISON WITH REDEVELOPMENT | |
(Unaudited, amounts in thousands) | Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Cash Basis: | |||||||||||||||||||||
Retail | $ | 18,286 | $ | 18,318 | (0.2 | )% | $ | 53,741 | $ | 54,224 | (0.9 | )% | |||||||||
Office | 18,386 | 18,085 | 1.7 | 53,906 | 52,303 | 3.1 | |||||||||||||||
Multifamily | 3,451 | 3,236 | 6.6 | 10,055 | 9,595 | 4.8 | |||||||||||||||
Mixed-Use | 6,998 | 7,615 | (8.1 | ) | 18,327 | 19,783 | (7.4 | ) | |||||||||||||
$ | 47,121 | $ | 47,254 | (0.3 | )% | $ | 136,029 | $ | 135,905 | 0.1 | % | ||||||||||
GAAP Basis: | |||||||||||||||||||||
Retail | $ | 18,745 | $ | 17,831 | 5.1 | % | $ | 54,465 | $ | 54,068 | 0.7 | % | |||||||||
Office | 18,781 | 17,675 | 6.3 | 55,290 | 53,030 | 4.3 | |||||||||||||||
Multifamily | 3,451 | 3,236 | 6.6 | 10,055 | 9,595 | 4.8 | |||||||||||||||
Mixed-Use | 7,106 | 7,647 | (7.1 | ) | 18,480 | 19,865 | (7.0 | ) | |||||||||||||
$ | 48,083 | $ | 46,389 | 3.7 | % | $ | 138,290 | $ | 136,558 | 1.3 | % |
Third Quarter 2017 Supplemental Information | Page 13 |
NOI BY REGION | |
(Unaudited, amounts in thousands) | Three Months Ended September 30, 2017 | ||||||||||||||||||
Retail | Office | Multifamily | Mixed-Use | Total | |||||||||||||||
Southern California | |||||||||||||||||||
NOI, GAAP basis (1) | $ | 8,510 | $ | 4,563 | $ | 5,461 | $ | — | $ | 18,534 | |||||||||
Net effect of straight-line rents (2) | (211 | ) | 45 | — | — | (166 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | (221 | ) | — | — | — | (221 | ) | ||||||||||||
NOI, cash basis | 8,078 | 4,608 | 5,461 | — | 18,147 | ||||||||||||||
Northern California | |||||||||||||||||||
NOI, GAAP basis (1) | 3,054 | 5,099 | — | — | 8,153 | ||||||||||||||
Net effect of straight-line rents (2) | (56 | ) | 182 | — | — | 126 | |||||||||||||
Amortization of net above (below) market rents (3) | (97 | ) | (194 | ) | — | — | (291 | ) | |||||||||||
Net effect of other lease intangibles (4) | — | (37 | ) | — | — | (37 | ) | ||||||||||||
NOI, cash basis | 2,901 | 5,050 | — | — | 7,951 | ||||||||||||||
Hawaii | |||||||||||||||||||
NOI, GAAP basis (1) | 4,210 | — | — | 7,106 | 11,316 | ||||||||||||||
Net effect of straight-line rents (2) | 104 | — | — | (80 | ) | 24 | |||||||||||||
Amortization of net above (below) market rents (3) | 83 | — | — | (28 | ) | 55 | |||||||||||||
Net effect of other lease intangibles (4) | 5 | — | — | — | 5 | ||||||||||||||
NOI, cash basis | 4,402 | — | — | 6,998 | 11,400 | ||||||||||||||
Oregon | |||||||||||||||||||
NOI, GAAP basis (1) | 292 | 5,035 | 1,668 | — | 6,995 | ||||||||||||||
Net effect of straight-line rents (2) | (46 | ) | (101 | ) | (48 | ) | — | (195 | ) | ||||||||||
Amortization of net above (below) market rents (3) | — | (94 | ) | — | — | (94 | ) | ||||||||||||
Net effect of other lease intangibles (4) | — | 6 | — | — | 6 | ||||||||||||||
NOI, cash basis | 246 | 4,846 | 1,620 | — | 6,712 | ||||||||||||||
Texas | |||||||||||||||||||
NOI, GAAP basis (1) | 3,547 | — | — | — | 3,547 | ||||||||||||||
Net effect of straight-line rents (2) | (43 | ) | — | — | — | (43 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | (95 | ) | — | — | — | (95 | ) | ||||||||||||
NOI, cash basis | 3,409 | — | — | — | 3,409 | ||||||||||||||
Washington | |||||||||||||||||||
NOI, GAAP basis (1) | — | 4,082 | — | — | 4,082 | ||||||||||||||
Net effect of straight-line rents (2) | — | (71 | ) | — | — | (71 | ) | ||||||||||||
Amortization of net above (below) market rents (3) | — | (190 | ) | — | — | (190 | ) | ||||||||||||
Net effect of other lease intangibles (4) | — | 17 | — | — | 17 | ||||||||||||||
NOI, cash basis | — | 3,838 | — | — | 3,838 | ||||||||||||||
Total | |||||||||||||||||||
NOI, GAAP basis (1) | 19,613 | 18,779 | 7,129 | 7,106 | 52,627 | ||||||||||||||
Net effect of straight-line rents (2) | (252 | ) | 55 | (48 | ) | (80 | ) | (325 | ) | ||||||||||
Amortization of net above (below) market rents (3) | (330 | ) | (478 | ) | — | (28 | ) | (836 | ) | ||||||||||
Net effect of other lease intangibles (4) | 5 | (14 | ) | — | — | (9 | ) | ||||||||||||
NOI, cash basis | $ | 19,036 | $ | 18,342 | $ | 7,081 | $ | 6,998 | $ | 51,457 |
(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, amortization of lease intangibles and straight-line rent expense for our leases of the Annex at The Landmark at One Market. |
Third Quarter 2017 Supplemental Information | Page 14 |
NOI BREAKDOWN | |
Three Months Ended September 30, 2017 |
Portfolio NOI, Cash Basis Breakdown |
Portfolio Diversification by Geographic Region |
Portfolio NOI, GAAP Basis Breakdown |
Portfolio Diversification by Geographic Region |
Portfolio Diversification by Segment |
Portfolio Diversification by Segment |
Third Quarter 2017 Supplemental Information | Page 15 |
PROPERTY REVENUE AND OPERATING EXPENSES | |
(Unaudited, amounts in thousands) | Three Months Ended September 30, 2017 | |||||||||||||||
Additional | Property | |||||||||||||||
Property | Billed Expense | Operating | ||||||||||||||
Property | Base Rent (1) | Income (2) | Reimbursements (3) | Expenses (4) | ||||||||||||
Retail Portfolio | ||||||||||||||||
Carmel Country Plaza | $ | 908 | $ | 21 | $ | 218 | $ | (201 | ) | |||||||
Carmel Mountain Plaza | 3,233 | 46 | 782 | (849 | ) | |||||||||||
South Bay Marketplace | 570 | 1 | 207 | (203 | ) | |||||||||||
Gateway Marketplace (5) | 563 | — | 169 | (208 | ) | |||||||||||
Lomas Santa Fe Plaza | 1,384 | 8 | 300 | (385 | ) | |||||||||||
Solana Beach Towne Centre | 1,511 | 18 | 515 | (504 | ) | |||||||||||
Del Monte Center (6) | 2,465 | 255 | 1,045 | (1,163 | ) | |||||||||||
Geary Marketplace | 300 | — | 156 | (149 | ) | |||||||||||
The Shops at Kalakaua | 487 | 25 | 51 | (85 | ) | |||||||||||
Waikele Center | 4,083 | 379 | 1,064 | (1,601 | ) | |||||||||||
Alamo Quarry Market | 3,502 | 64 | 1,609 | (1,767 | ) | |||||||||||
Hassalo on Eighth - Retail | 235 | 45 | 50 | (80 | ) | |||||||||||
Subtotal Retail Portfolio | $ | 19,241 | $ | 862 | $ | 6,166 | $ | (7,195 | ) | |||||||
Office Portfolio | ||||||||||||||||
Torrey Reserve Campus (7) | $ | 4,511 | $ | 68 | $ | 343 | $ | (1,481 | ) | |||||||
Solana Beach Corporate Centre | 1,949 | 6 | 38 | (509 | ) | |||||||||||
The Landmark at One Market | 6,245 | 38 | 278 | (2,160 | ) | |||||||||||
One Beach Street | 818 | 2 | 144 | (315 | ) | |||||||||||
First & Main | 2,818 | 174 | 446 | (844 | ) | |||||||||||
Lloyd District Portfolio (7) | 2,967 | 505 | 48 | (1,226 | ) | |||||||||||
City Center Bellevue | 4,515 | 684 | 383 | (1,374 | ) | |||||||||||
Subtotal Office Portfolio | $ | 23,823 | $ | 1,477 | $ | 1,680 | $ | (7,909 | ) |
Third Quarter 2017 Supplemental Information | Page 16 |
PROPERTY REVENUE AND OPERATING EXPENSES (CONTINUED) | |
(Unaudited, amounts in thousands) | Three Months Ended September 30, 2017 | |||||||||||||||
Additional | Property | |||||||||||||||
Property | Billed Expense | Operating | ||||||||||||||
Property | Base Rent (1) | Income (2) | Reimbursements (3) | Expenses (4) | ||||||||||||
Multifamily Portfolio | ||||||||||||||||
Loma Palisades | $ | 3,064 | $ | 267 | $ | — | $ | (1,099 | ) | |||||||
Imperial Beach Gardens | 883 | 72 | — | (323 | ) | |||||||||||
Mariner's Point | 436 | 32 | — | (158 | ) | |||||||||||
Santa Fe Park RV Resort | 438 | 31 | — | (192 | ) | |||||||||||
Pacific Ridge Apartments | 3,782 | 204 | — | (1,966 | ) | |||||||||||
Hassalo on Eighth - Multifamily | 3,029 | 330 | — | (1,544 | ) | |||||||||||
Subtotal Multifamily Portfolio | $ | 11,632 | $ | 936 | $ | — | $ | (5,282 | ) | |||||||
Mixed-Use Portfolio | ||||||||||||||||
Waikiki Beach Walk - Retail | $ | 2,567 | $ | 1,279 | $ | 991 | $ | (1,829 | ) | |||||||
Waikiki Beach Walk - Embassy Suites™ | 11,006 | 782 | — | (7,800 | ) | |||||||||||
Subtotal Mixed-Use Portfolio | $ | 13,573 | $ | 2,061 | $ | 991 | $ | (9,629 | ) | |||||||
Total | $ | 68,269 | $ | 5,336 | $ | 8,837 | $ | (30,015 | ) |
(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 September 30, 2017 (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 $15 and $728, respectively, for the three months ended September 30, 2017. There were no abatements for the retail portion of our mixed-use portfolio for the three months ended September 30, 2017. 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). There were $236 of abatements for our multifamily portfolio for the three months ended September 30, 2017. For Waikiki Beach Walk - Embassy SuitesTM, base rent is equal to the actual room revenue for the three months ended September 30, 2017. |
(2) | Represents additional property-related income for the three months ended September 30, 2017, 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 September 30, 2017. |
(4) | Represents property operating expenses for the three months ended September 30, 2017. Property operating expenses includes all rental expenses, except non cash rent expense and the provision for bad debt recorded for deferred rent receivables. |
(5) | Includes revenue and expenses since the acquisition of the Gateway Marketplace for the period from July 6, 2017 to September 30, 2017. |
(6) | Includes revenue and expenses for the ground lease acquired at Del Monte Center for the period from September 1, 2017 to September 30, 2017. |
(7) | 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 and abatements were both $279 for the three months ended September 30, 2017. |
Third Quarter 2017 Supplemental Information | Page 17 |
SEGMENT CAPITAL EXPENDITURES | |
(Unaudited, amounts in thousands) | Three Months Ended September 30, 2017 | ||||||||||||||||||||||||
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 | $ | 3,507 | $ | 350 | $ | 3,857 | $ | — | $ | (54 | ) | $ | 3,803 | ||||||||||||
Office Portfolio | 3,588 | 2,928 | 6,516 | — | 4,039 | 10,555 | |||||||||||||||||||
Multifamily Portfolio | — | 1,953 | 1,953 | — | — | 1,953 | |||||||||||||||||||
Mixed-Use Portfolio | 145 | 66 | 211 | — | — | 211 | |||||||||||||||||||
Total | $ | 7,240 | $ | 5,297 | $ | 12,537 | $ | — | $ | 3,985 | $ | 16,522 | |||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||
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 | $ | 6,526 | $ | 1,377 | $ | 7,903 | $ | — | $ | (54 | ) | $ | 7,849 | ||||||||||||
Office Portfolio | 7,869 | 6,250 | 14,119 | — | 11,596 | 25,715 | |||||||||||||||||||
Multifamily Portfolio | — | 4,521 | 4,521 | — | — | 4,521 | |||||||||||||||||||
Mixed-Use Portfolio | 229 | 185 | 414 | — | — | 414 | |||||||||||||||||||
Total | $ | 14,624 | $ | 12,333 | $ | 26,957 | $ | — | $ | 11,542 | $ | 38,499 | |||||||||||||
Third Quarter 2017 Supplemental Information | Page 18 |
SUMMARY OF OUTSTANDING DEBT | |
(Unaudited, amounts in thousands) | Amount | ||||||||||||||||
Outstanding at | Annual Debt | Balance at | |||||||||||||||
Debt | September 30, 2017 | Interest Rate | Service | Maturity Date | Maturity | ||||||||||||
Loma Palisades (1) | $ | 73,744 | 6.09 | % | $ | 77,524 | July 1, 2018 | $ | 73,744 | ||||||||
One Beach Street (1) | 21,900 | 3.94 | % | 875 | April 1, 2019 | 21,900 | |||||||||||
Torrey Reserve - North Court (2) | 20,120 | 7.22 | % | 1,836 | June 1, 2019 | 19,443 | |||||||||||
Torrey Reserve - VCI, VCII, VCIII (2) | 6,795 | 6.36 | % | 560 | June 1, 2020 | 6,439 | |||||||||||
Solana Beach Corporate Centre I-II (2) | 10,774 | 5.91 | % | 855 | June 1, 2020 | 10,169 | |||||||||||
Solana Beach Towne Centre (2) | 35,914 | 5.91 | % | 2,849 | June 1, 2020 | 33,898 | |||||||||||
City Center Bellevue (1) | 111,000 | 3.98 | % | 4,479 | November 1, 2022 | 111,000 | |||||||||||
Secured Notes Payable / Weighted Average (3) | $ | 280,247 | 5.14 | % | $ | 88,978 | $ | 276,593 | |||||||||
Term Loan A (4) | $ | 100,000 | 3.08 | % | $ | 3,125 | January 9, 2019 | $ | 100,000 | ||||||||
Series A Notes (5) | 150,000 | 3.88 | % | 6,060 | October 31, 2021 | 150,000 | |||||||||||
Term Loan B (6) | 100,000 | 3.15 | % | 3,149 | March 1, 2023 | 100,000 | |||||||||||
Term Loan C (7) | 50,000 | 3.14 | % | 1,571 | March 1, 2023 | 50,000 | |||||||||||
Series F Notes (8) | 100,000 | 3.85 | % | 3,780 | July 19, 2024 | 100,000 | |||||||||||
Series B Notes | 100,000 | 4.45 | % | 4,450 | February 2, 2025 | 100,000 | |||||||||||
Series C Notes | 100,000 | 4.50 | % | 4,500 | April 1, 2025 | 100,000 | |||||||||||
Series D Notes (9) | 250,000 | 3.87 | % | 10,725 | March 1, 2027 | 250,000 | |||||||||||
Series E Notes (10) | 100,000 | 4.18 | % | 4,240 | May 23, 2029 | 100,000 | |||||||||||
Unsecured Notes Payable / Weighted Average (11) | $ | 1,050,000 | 3.84 | % | $ | 41,600 | $ | 1,050,000 |
(1) | Interest only. |
(2) | Principal payments based on a 30-year amortization schedule. |
(3) | The Secured Notes Payable total does not include debt issuance costs, net of $0.4 million. |
(4) | Term Loan A has a maturity date of January 9, 2018 and we have one 12-month option remaining to extend its maturity to 2019, which we intend to exercise. Term Loan A accrues interest at a variable rate, which we fixed as part of an interest rate swap for an effective interest rate of 3.08%, subject to adjustments based on our consolidated leverage ratio. |
(5) | $150 million of 4.04% Senior Guaranteed Notes, Series A, due October 31, 2021. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series A Notes is approximately 3.88% per annum, through maturity. |
(6) | Term Loan B matures on March 1, 2023. Term Loan B accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 3.15%, subject to adjustments based on our consolidated leverage ratio. |
(7) | Term Loan C matures on March 1, 2023. Term Loan C accrues interest at a variable rate, which we fixed as part of an interest rate swap for an all-in interest rate of 3.14%, subject to adjustments based on our consolidated leverage ratio. |
(8) | $100 million of 3.78% Senior Guaranteed Notes, Series F, due July 19, 2024. Net of the settlement of the treasury lock contract, the effective interest rate for the Series F Notes is approximately 3.85%, through maturity. |
(9) | $250 million of 4.29% Senior Guaranteed Notes, Series D, due March 1, 2027. Net of the settlement of the forward-starting interest rate swap, the effective interest rate for the Series D Notes is approximately 3.87% per annum, through maturity. |
(10) | $100 million of 4.24% Senior Guaranteed Notes, Series E, due May 23, 2029. Net of the settlement of the treasury lock contract, the effective interest rate for the Series E Notes is approximately 4.18%, through maturity. |
(11) | The Unsecured Notes Payable total does not include debt issuance costs, net of $5.1 million. |
Third Quarter 2017 Supplemental Information | Page 19 |
MARKET CAPITALIZATION | |
(Unaudited, amounts in thousands, except per share data) | ||||
Market data | September 30, 2017 | |||
Common shares outstanding | 47,130 | |||
Common units outstanding | 17,195 | |||
Common shares and common units outstanding | 64,325 | |||
Market price per common share | $ | 39.77 | ||
Equity market capitalization | $ | 2,558,205 | ||
Total debt | $ | 1,330,247 | ||
Total market capitalization | $ | 3,888,452 | ||
Less: Cash on hand | $ | (94,207 | ) | |
Total enterprise value | $ | 3,794,245 | ||
Total assets, gross | $ | 2,795,009 | ||
Total unencumbered assets, gross | $ | 2,286,612 | ||
Total debt/Total capitalization | 34.2 | % | ||
Total debt/Total enterprise value | 35.1 | % | ||
Net debt/Total enterprise value (1) | 32.6 | % | ||
Total debt/Total assets, gross | 47.6 | % | ||
Net debt/Total assets, gross (1) | 44.2 | % | ||
Total unencumbered assets, gross/Unsecured debt | 217.8 | % | ||
Total debt/Adjusted EBITDA (2)(3) | 6.9 | x | ||
Net debt/Adjusted EBITDA (1)(2)(3) | 6.4 | x | ||
Interest coverage ratio (4) | 3.6 | x | ||
Fixed charge coverage ratio (4) | 3.6 | x |
Weighted Average Fixed Interest Rate | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||||||||
— | % | 6.1 | % | 3.8 | % | 6.0 | % | 3.9 | % | 4.0 | % | 3.1 | % | 3.8 | % | 4.5 | % | — | % | 3.9 | % | — | % | 4.2 | % |
Total Weighed Average Fixed Interest Rate: | 4.1% |
Weighted Average Term to Maturity: | 6.1 years |
Credit Ratings | ||
Rating Agency | Rating | Outlook |
Fitch | BBB | Stable |
Moody's | Baa3 | Stable |
Standard & Poors | BBB- | Stable |
(1) | Net debt is equal to total debt less cash on hand. |
(2) | See Glossary of Terms for discussion of EBITDA and Adjusted EBITDA. |
(3) | As used here, Adjusted EBITDA represents the actual for the three months ended September 30, 2017 annualized. |
(4) | Calculated as Adjusted EBITDA divided by interest on borrowed funds, including capitalized interest and excluding debt fair value adjustments and loan fee amortization. |
(5) | Assumes the exercise of the one 12-month option remaining to extend the maturity of the unsecured term loan to January 2019. |
Third Quarter 2017 Supplemental Information | Page 20 |
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. |
Development/Redevelopment Pipeline | |||||
Property | Property Type | Location | Estimated Rentable Square Feet | 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 | |
Solana Beach - Highway 101 (1) | Mixed Use | Solana Beach, CA | 48,000 | 36 | |
Lloyd District Portfolio - multiple phases (2) | Mixed Use | Portland, OR | TBD | TBD |
(1) | Represents commercial portion of development opportunity for Solana Beach - Highway 101. A third party has been granted an option to acquire this property exercisable on or prior to August 22, 2018 at a price ranging from $9.0 million to $9.45 million in consideration for a non-refundable $0.6 million option payment. |
(2) | The Lloyd District Portfolio was acquired in 2011 consisting of approximately 600,000 rentable square feet on more than 16 acres located in the Lloyd District of Portland, Oregon. The portion of the property that has been designated for additional development to include a high density, transit oriented, mixed-use urban village, with the potential to be in excess of approximately three million square feet. The entitlement for such development opportunity allows a 12:1 Floor Area Ratio with a 250 foot height limit and provides for retail, office and/or multifamily development. Additional development plans are in the early stages and will continue to progress as demand and economic conditions allow. |
Third Quarter 2017 Supplemental Information | Page 21 |
Third Quarter 2017 Supplemental Information | Page 22 |
PROPERTY REPORT | |
As of September 30, 2017 | 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 | 95.0% | $ | 3,643,687 | $49.11 | Sharp Healthcare, San Diego County Credit Union | ||||||||||||||
Carmel Mountain Plaza (7) | San Diego, CA | 1994/2014 | 15 | 528,416 | 99.5 | 12,914,931 | 24.56 | Sears | Dick's Sporting Goods, Saks Fifth Avenue Off 5th | ||||||||||||||
South Bay Marketplace (7) | San Diego, CA | 1997 | 9 | 132,877 | 100.0 | 2,381,825 | 17.93 | Ross Dress for Less, Grocery Outlet | |||||||||||||||
Gateway Marketplace | San Diego, CA | 1997/2016 | 3 | 127,861 | 98.7 | 2,378,717 | 18.85 | Hobby Lobby | Smart & Final, Aldi | ||||||||||||||
Lomas Santa Fe Plaza | Solana Beach, CA | 1972/1997 | 9 | 209,569 | 98.0 | 5,564,628 | 27.09 | Vons, Home Goods | |||||||||||||||
Solana Beach Towne Centre | Solana Beach, CA | 1973/2000/2004 | 12 | 246,730 | 95.8 | 6,052,727 | 25.61 | Dixieline Probuild, Marshalls | |||||||||||||||
Del Monte Center (7) | Monterey, CA | 1967/1984/2006 | 16 | 756,209 | 98.3 | 11,350,418 | 15.27 | Macy's, KLA Monterrey | Century Theatres, Macy's Furniture Gallery | ||||||||||||||
Geary Marketplace | Walnut Creek, CA | 2012 | 3 | 35,156 | 100.0 | 1,198,166 | 34.08 | Sprouts Farmer Market, Freebirds Wild Burrito | |||||||||||||||
The Shops at Kalakaua | Honolulu, HI | 1971/2006 | 3 | 11,671 | 100.0 | 1,949,473 | 167.04 | Hawaii Beachware & Fashion, Diesel U.S.A. Inc. | |||||||||||||||
Waikele Center | Waipahu, HI | 1993/2008 | 9 | 537,637 | 90.7 | 16,481,541 | 33.80 | Lowe's, Kmart(8) | UFC Gym, Old Navy | ||||||||||||||
Alamo Quarry Market (7) | San Antonio, TX | 1997/1999 | 16 | 589,362 | 99.6 | 14,038,612 | 23.92 | Regal Cinemas | Bed Bath & Beyond, Whole Foods Market | ||||||||||||||
Hassalo on Eighth | Portland, OR | 2015 | 3 | 44,153 | 76.6 | 940,008 | 27.79 | Providence Health & Services, Green Zebra Grocery | |||||||||||||||
Subtotal/Weighted Average Retail Portfolio | 107 | 3,297,739 | 97.0% | $ | 78,894,733 | $24.66 | |||||||||||||||||
Office Properties | |||||||||||||||||||||||
Torrey Reserve Campus | San Diego, CA | 1996-2000/2014-2016 | 14 | 515,192 | 80.4% | $ | 18,389,462 | $44.40 | |||||||||||||||
Solana Beach Corporate Centre | Solana Beach, CA | 1982/2005 | 4 | 212,491 | 94.2 | 7,614,554 | 38.04 | ||||||||||||||||
The Landmark at One Market (9) | San Francisco, CA | 1917/2000 | 1 | 419,371 | 100.0 | 24,978,615 | 59.56 | ||||||||||||||||
One Beach Street | San Francisco, CA | 1924/1972/1987/1992 | 1 | 97,614 | 100.0 | 3,271,980 | 33.52 | ||||||||||||||||
First & Main | Portland, OR | 2010 | 1 | 360,641 | 98.7 | 11,044,572 | 31.03 | ||||||||||||||||
Lloyd District Portfolio | Portland, OR | 1940-2015 | 6 | 581,670 | 76.0 | 11,146,348 | 25.21 | ||||||||||||||||
City Center Bellevue | Bellevue, WA | 1987 | 1 | 494,658 | 97.5 | 17,136,552 | 35.53 | ||||||||||||||||
Subtotal/Weighted Average Office Portfolio | 28 | 2,681,637 | 89.9% | $ | 93,582,083 | $38.82 | |||||||||||||||||
Total/Weighted Average Retail and Office Portfolio | 135 | 5,979,376 | 93.8% | $ | 172,476,816 | $30.75 |
Third Quarter 2017 Supplemental Information | Page 23 |
PROPERTY REPORT (CONTINUED) | |
As of September 30, 2017 | |||||||||||||||||||||||||
Number | Average Monthly | ||||||||||||||||||||||||
Year Built/ | of | Percentage | Annualized | Base Rent per | |||||||||||||||||||||
Property | Location | Renovated | Buildings | Units | Leased (2) | Base Rent (3) | Leased Unit (4) | ||||||||||||||||||
Loma Palisades (10) | San Diego, CA | 1958/2001-2008 | 80 | 548 | 93.6% | $ | 12,155,772 | $ | 1,975 | ||||||||||||||||
Imperial Beach Gardens | Imperial Beach, CA | 1959/2008 | 26 | 160 | 97.5 | 3,652,080 | $ | 1,951 | |||||||||||||||||
Mariner's Point | Imperial Beach, CA | 1986 | 8 | 88 | 96.6 | 1,737,624 | $ | 1,703 | |||||||||||||||||
Santa Fe Park RV Resort (11) | San Diego, CA | 1971/2007-2008 | 1 | 126 | 67.0 | 1,238,664 | $ | 1,223 | |||||||||||||||||
Pacific Ridge Apartments | San Diego, CA | 2013 | 3 | 533 | 90.4 | 16,170,384 | $ | 2,797 | |||||||||||||||||
Hassalo on Eighth - Velomor | Portland, OR | 2015 | 1 | 177 | 93.2 | 3,301,416 | $ | 1,668 | |||||||||||||||||
Hassalo on Eighth - Aster Tower | Portland, OR | 2015 | 1 | 337 | 93.8 | 6,444,420 | $ | 1,699 | |||||||||||||||||
Hassalo on Eighth - Elwood | Portland, OR | 2015 | 1 | 143 | 89.5 | 2,465,736 | $ | 1,605 | |||||||||||||||||
Total/Weighted Average Multifamily Portfolio (10) | 121 | 2,112 | 91.3% | $ | 47,166,096 | $ | 2,038 | ||||||||||||||||||
Mixed-Use Portfolio | |||||||||||||||||||||||||
Number | Net Rentable | Annualized Base | |||||||||||||||||||||||
Year Built/ | of | Square | Percentage | Annualized | Rent 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 | 93.7 | % | $ | 10,058,429 | $ | 111.00 | Yard House, Roy's | ||||||||||||||
Number | Annualized | ||||||||||||||||||||||||
Year Built/ | of | Average | Average | Revenue per | |||||||||||||||||||||
Hotel Portion | Location | Renovated | Buildings | Units | Occupancy (12) | Daily Rate(12) | Available Room (12) | ||||||||||||||||||
Waikiki Beach Walk - Embassy Suites™ | Honolulu, HI | 2008/2014 | 2 | 369 | 95.3 | % | $ | 340.13 | $ | 324.19 |
(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 September 30, 2017, including leases which may not have commenced as of September 30, 2017. Percentage leased for our multifamily properties includes total units rented as of September 30, 2017. |
(3) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2017 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 September 30, 2017. Annualized base rent per leased unit is calculated by dividing annualized base rent by units under lease as of September 30, 2017. |
(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. |
Property | Number of Ground Leases | Square Footage Leased Pursuant to Ground Leases | Aggregate Annualized Base Rent | ||||||
Carmel Mountain Plaza | 6 | 125,477 | $ | 1,193,816 | |||||
South Bay Marketplace | 1 | 2,824 | $ | 102,276 | |||||
Del Monte Center | 1 | 212,500 | $ | 96,000 | |||||
Alamo Quarry Market | 4 | 31,994 | $ | 491,383 |
(8) | In December 2016, the Kmart store at Waikele Center ceased its operations, but continues to remain fully liable for all of its lease obligations until the lease's scheduled expiration on June 30, 2018. |
(9) | This property contains 419,371 net rentable square feet consisting of The Landmark at One Market (375,151 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, 2021, which we have the option to extend until 2031 pursuant to two five-year extension options. |
Third Quarter 2017 Supplemental Information | Page 24 |
PROPERTY REPORT (CONTINUED) | |
(10) | Excluding the 21 units associated with the Loma Palisades repositioning, Loma Palisades was 97.3% leased and total multifamily was 92.3% leased at September 30, 2017. |
(11) | 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 September 30, 2017, the highest average monthly occupancy rate for this property was 97%, occurring in May 2017. The number of units at the Santa Fe Park RV Resort includes 122 RV spaces and four apartments. |
(12) | Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2017, 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 September 30, 2017 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 September 30, 2017 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. |
Third Quarter 2017 Supplemental Information | Page 25 |
RETAIL LEASING SUMMARY | |
As of September 30, 2017 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 11 | 100% | 24,190 | $52.06 | $52.70 | $ | (15,496 | ) | (1.2 | )% | 8.4 | % | 5.4 | $ | 335,000 | $13.85 | |||||||||||||||||
2nd Quarter 2017 | 25 | 100% | 207,012 | $30.31 | $34.77 | $ | (922,740 | ) | (12.8 | )% | 5.2 | % | 8.7 | $ | 2,088,639 | $10.09 | |||||||||||||||||
1st Quarter 2017 | 12 | 100% | 33,114 | $45.40 | $44.41 | $ | 32,606 | 2.2 | % | 10.2 | % | 5.0 | $ | 382,595 | $11.55 | ||||||||||||||||||
4th Quarter 2016 | 14 | 100% | 28,604 | $44.50 | $42.67 | $ | 52,501 | 4.3 | % | 17.5 | % | 7.3 | $ | 555,445 | $19.42 | ||||||||||||||||||
Total 12 months | 62 | 100% | 292,920 | $35.20 | $38.11 | $ | (853,129 | ) | (7.6 | )% | 7.7 | % | 7.9 | $ | 3,361,679 | $11.48 | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 1 | 9% | 4,785 | $21.91 | $25.00 | $ | (14,771 | ) | (12.3 | )% | (2.5 | )% | 10.2 | $ | 275,000 | $57.47 | |||||||||||||||||
2nd Quarter 2017 | 5 | 20% | 7,353 | $69.78 | $78.54 | $ | (64,397 | ) | (11.2 | )% | 1.4 | % | 7.4 | $ | 289,041 | $39.31 | |||||||||||||||||
1st Quarter 2017 | 3 | 25% | 10,381 | $50.05 | $53.92 | $ | (40,120 | ) | (7.2 | )% | (1.0 | )% | 8.2 | $ | 361,545 | $34.83 | |||||||||||||||||
4th Quarter 2016 | 4 | 29% | 3,246 | $80.62 | $77.70 | $ | 9,477 | 3.8 | % | 12.4 | % | 6.1 | $ | 51,745 | $15.94 | ||||||||||||||||||
Total 12 months | 13 | 21% | 25,765 | $54.31 | $58.57 | $ | (109,811 | ) | (7.3 | )% | 2.0 | % | 8.1 | $ | 977,331 | $37.93 | |||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 10 | 91% | 19,405 | $59.49 | $59.53 | $ | (725 | ) | (0.1 | )% | 9.6 | % | 4.3 | $ | 60,000 | $3.09 | |||||||||||||||||
2nd Quarter 2017 | 20 | 80% | 199,659 | $28.86 | $33.16 | $ | (858,343 | ) | (13.0 | )% | 5.5 | % | 8.7 | $ | 1,799,598 | $9.01 | |||||||||||||||||
1st Quarter 2017 | 9 | 75% | 22,733 | $43.27 | $40.07 | $ | 72,726 | 8.0 | % | 17.0 | % | 3.5 | $ | 21,050 | $0.93 | ||||||||||||||||||
4th Quarter 2016 | 10 | 71% | 25,358 | $39.88 | $38.18 | $ | 43,024 | 4.4 | % | 18.9 | % | 7.5 | $ | 503,700 | $19.86 | ||||||||||||||||||
Total 12 months | 49 | 79% | 267,155 | $33.36 | $36.14 | $ | (743,318 | ) | (7.7 | )% | 8.6 | % | 7.8 | $ | 2,384,348 | $8.92 | |||||||||||||||||
Total Lease Summary - Comparable and Non-Comparable (1) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 12 | 24,711 | $54.61 | 5.5 | $ | 365,000 | $14.77 | ||||||||||||||||||||||||||
2nd Quarter 2017 | 28 | 211,355 | $30.37 | 8.6 | $ | 2,439,264 | $11.54 | ||||||||||||||||||||||||||
1st Quarter 2017 | 15 | 42,915 | $43.67 | 5.7 | $ | 1,049,120 | $24.45 | ||||||||||||||||||||||||||
4th Quarter 2016 | 16 | 31,064 | $43.51 | 7.1 | $ | 599,245 | $19.29 | ||||||||||||||||||||||||||
Total 12 months | 71 | 310,045 | $35.46 | 7.8 | $ | 4,452,629 | $14.36 |
(1) | Comparable leases represent those leases signed on spaces for which there was a previous lease, including leases signed for the retail portion of our mixed-use property. |
(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. |
Third Quarter 2017 Supplemental Information | Page 26 |
OFFICE LEASING SUMMARY | |
As of September 30, 2017 | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 13 | 100% | 68,920 | $46.49 | $42.17 | $ | 297,954 | 10.3 | % | 14.5 | % | 5.2 | $ | 1,519,653 | $22.05 | ||||||||||||||||||
2nd Quarter 2017 | 11 | 100% | 88,675 | $62.62 | $47.24 | $ | 1,363,412 | 32.5 | % | 47.4 | % | 4.9 | $ | 956,040 | $10.78 | ||||||||||||||||||
1st Quarter 2017 | 12 | 100% | 92,029 | $41.79 | $40.08 | $ | 157,322 | 4.3 | % | 6.7 | % | 4.2 | $ | 2,577,621 | $28.01 | ||||||||||||||||||
4th Quarter 2016 | 11 | 100% | 103,401 | $38.81 | $33.78 | $ | 519,828 | 14.9 | % | 31.8 | % | 4.6 | $ | 1,218,128 | $11.78 | ||||||||||||||||||
Total 12 months | 47 | 100% | 353,025 | $47.07 | $40.44 | $ | 2,338,516 | 16.4 | % | 25.8 | % | 4.7 | $ | 6,271,442 | $17.76 | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 5 | 38% | 20,253 | $55.38 | $47.81 | $ | 153,135 | 15.8 | % | 26.0 | % | 7.4 | $ | 877,719 | $43.34 | ||||||||||||||||||
2nd Quarter 2017 | 3 | 27% | 6,583 | $40.87 | $36.56 | $ | 28,395 | 11.8 | % | 20.3 | % | 5.1 | $ | 96,700 | $14.69 | ||||||||||||||||||
1st Quarter 2017 | 8 | 67% | 69,802 | $41.32 | $37.73 | $ | 250,566 | 9.5 | % | 10.6 | % | 4.9 | $ | 2,547,352 | $36.49 | ||||||||||||||||||
4th Quarter 2016 | 5 | 45% | 46,060 | $40.17 | $34.77 | $ | 248,871 | 15.5 | % | 30.7 | % | 3.5 | $ | 700,600 | $15.21 | ||||||||||||||||||
Total 12 months | 21 | 45% | 142,698 | $42.92 | $38.15 | $ | 680,967 | 12.5 | % | 19.7 | % | 4.8 | $ | 4,222,371 | $29.59 | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 8 | 62% | 48,667 | $42.79 | $39.81 | $ | 144,819 | 7.5 | % | 8.7 | % | 4.3 | $ | 641,934 | $13.19 | ||||||||||||||||||
2nd Quarter 2017 | 8 | 73% | 82,092 | $64.36 | $48.10 | $ | 1,335,017 | 33.8 | % | 49.2 | % | 4.9 | $ | 859,340 | $10.47 | ||||||||||||||||||
1st Quarter 2017 | 4 | 33% | 22,227 | $43.24 | $47.44 | $ | (93,244 | ) | (8.8 | )% | (1.6 | )% | 1.8 | $ | 30,269 | $1.36 | |||||||||||||||||
4th Quarter 2016 | 6 | 55% | 57,341 | $37.71 | $32.98 | $ | 270,957 | 14.3 | % | 32.8 | % | 5.5 | $ | 517,528 | $9.03 | ||||||||||||||||||
Total 12 months | 26 | 55% | 210,327 | $49.87 | $41.99 | $ | 1,657,549 | 18.8 | % | 29.5 | % | 4.6 | $ | 2,049,071 | $9.74 | ||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
3rd Quarter 2017 | 22 | 123,140 | $47.25 | 6.7 | $ | 5,133,674 | $41.69 | ||||||||||||||||||||||||||
2nd Quarter 2017 | 13 | 92,875 | $61.74 | 5.0 | $ | 1,115,237 | $12.01 | ||||||||||||||||||||||||||
1st Quarter 2017 | 16 | 123,929 | $39.46 | 5.2 | $ | 4,136,001 | $33.37 | ||||||||||||||||||||||||||
4th Quarter 2016 | 16 | 125,836 | $39.48 | 5.0 | $ | 2,796,553 | $22.22 | ||||||||||||||||||||||||||
Total 12 months | 67 | 465,780 | $45.97 | 5.5 | $ | 13,181,465 | $28.30 |
(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. |
Third Quarter 2017 Supplemental Information | Page 27 |
MULTIFAMILY LEASING SUMMARY | |
As of September 30, 2017 | ||||||||
Lease Summary - Loma Palisades | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 513 | 93.6% | (4) | $12,155,772 | $1,975 | |||
2nd Quarter 2017 | 520 | 94.9% | (4) | $12,286,836 | $1,969 | |||
1st Quarter 2017 | 522 | 95.3% | (4) | $11,977,260 | $1,911 | |||
4th Quarter 2016 | 521 | 95.1% | $11,930,772 | $1,908 | ||||
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 | ||||||||
3rd Quarter 2017 | 156 | 97.5% | $3,652,080 | $1,951 | ||||
2nd Quarter 2017 | 155 | 96.9% | $3,563,640 | $1,915 | ||||
1st Quarter 2017 | 157 | 98.1% | $3,507,744 | $1,862 | ||||
4th Quarter 2016 | 155 | 96.9% | $3,402,948 | $1,829 | ||||
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 | ||||||||
3rd Quarter 2017 | 85 | 96.6% | $1,737,624 | $1,703 | ||||
2nd Quarter 2017 | 87 | 98.9% | $1,687,608 | $1,616 | ||||
1st Quarter 2017 | 86 | 97.7% | $1,666,164 | $1,615 | ||||
4th Quarter 2016 | 86 | 97.7% | $1,626,312 | $1,576 | ||||
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 | ||||||||
3rd Quarter 2017 | 84 | 67.0% | $1,238,664 | $1,223 | ||||
2nd Quarter 2017 | 98 | 78.0% | $1,827,960 | $1,550 | ||||
1st Quarter 2017 | 102 | 81.0% | $1,359,780 | $1,110 | ||||
4th Quarter 2016 | 101 | 80.2% | $1,173,324 | $968 | ||||
Lease Summary - Pacific Ridge Apartments | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 482 | 90.4% | $16,170,384 | $2,797 | ||||
2nd Quarter 2017 | 502 | 94.2% | $16,075,440 | $2,668 |
Third Quarter 2017 Supplemental Information | Page 28 |
MULTIFAMILY LEASING SUMMARY (CONTINUED) | |
As of September 30, 2017 | ||||||||
Lease Summary - Hassalo on Eighth - Velomor | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 165 | 93.2% | $3,301,416 | $1,668 | ||||
2nd Quarter 2017 | 166 | 93.8% | $3,221,940 | $1,617 | ||||
1st Quarter 2017 | 164 | 92.7% | $3,225,948 | $1,638 | ||||
4th Quarter 2016 | 156 | 88.1% | $3,130,644 | $1,673 | ||||
Lease Summary - Hassalo on Eighth - Aster Tower | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 316 | 93.8% | $6,444,420 | $1,699 | ||||
2nd Quarter 2017 | 296 | 87.8% | $6,196,128 | $1,745 | ||||
1st Quarter 2017 | 308 | 91.4% | $6,011,100 | $1,626 | ||||
4th Quarter 2016 | 287 | 85.2% | $5,843,700 | $1,696 | ||||
Lease Summary - Hassalo on Eighth - Elwood | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 128 | 89.5% | $2,465,736 | $1,605 | ||||
2nd Quarter 2017 | 131 | 91.6% | $2,438,040 | $1,551 | ||||
1st Quarter 2017 | 135 | 94.4% | $2,424,204 | $1,497 | ||||
4th Quarter 2016 | 120 | 83.9% | $2,208,456 | $1,534 | ||||
Total Multifamily Lease Summary | ||||||||
Number of Leased Units | Percentage leased (1) | Annualized Base Rent (2) | Average Monthly Base Rent per Leased Unit (3) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 1,929 | 91.3% | (5) | $47,166,096 | $2,038 | |||
2nd Quarter 2017 | 1,955 | 92.6% | (5) | $47,297,592 | $2,015 | |||
1st Quarter 2017 | 1,474 | 93.4% | (5) | $30,172,200 | $1,705 | |||
4th Quarter 2016 | 1,426 | 90.3% | $29,316,156 | $1,713 |
(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. |
(4) | Excluding the 21 units associated with the Loma Palisades repositioning, Loma Palisades was 97.3%, 98.7% and 99.1% leased at September 30, 2017, June 30, 2017 and March 31, 2017, respectively. |
(5) | Excluding the 21 units associated with the Loma Palisades repositioning, Total Multifamily was 92.3%, 93.5% and 94.6% leased at September 30, 2017, June 30, 2017 and March 31, 2017, respectively. |
Third Quarter 2017 Supplemental Information | Page 29 |
MIXED-USE LEASING SUMMARY | |
As of September 30, 2017 | ||||||||
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 | ||||||||
3rd Quarter 2017 | 90,650 | 93.7% | $10,058,429 | $111 | ||||
2nd Quarter 2017 | 92,564 | 95.7% | $10,408,616 | $112 | ||||
1st Quarter 2017 | 90,979 | 94.1% | $10,195,628 | $112 | ||||
4th Quarter 2016 | 95,450 | 98.7% | $10,838,934 | $114 | ||||
Lease Summary - Hotel Portion | ||||||||
Number of Leased Units | Average Occupancy (4) | Average Daily Rate (4) | Annualized Revenue per Available Room (4) | |||||
Quarter | ||||||||
3rd Quarter 2017 | 352 | 95.3% | $340 | $324 | ||||
2nd Quarter 2017 | 336 | 91.1% | $305 | $278 | ||||
1st Quarter 2017 | 338 | 91.5% | $325 | $297 | ||||
4th Quarter 2016 | 326 | 88.4% | $311 | $275 |
(1) | Percentage leased for mixed-use property includes square footage under leases as of September 30, 2017, including leases which may not have commenced as of September 30, 2017. |
(2) | Annualized base rent is calculated by multiplying base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2017 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 September 30, 2017. |
(4) | Average occupancy represents the percentage of available units that were sold during the three months ended September 30, 2017, 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. |
Third Quarter 2017 Supplemental Information | Page 30 |
LEASE EXPIRATIONS | |
As of September 30, 2017 | |||||||||||||||||||||||||||||||||||||||||
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 | 15,398 | 0.6 | % | 0.3 | % | $1.77 | 14,954 | 0.5 | % | 0.2 | % | $31.24 | 1,355 | 1.4 | % | — | % | $— | 31,707 | 0.5 | % | $15.59 | |||||||||||||||||||
2017 | 117,204 | 4.4 | 1.9 | $37.44 | 47,750 | 1.4 | 0.8 | $30.66 | 2,162 | 2.2 | — | $189.36 | 167,116 | 2.8 | $37.47 | ||||||||||||||||||||||||||
2018 | 247,487 | 9.2 | 4.1 | $52.93 | 391,605 | 11.9 | 6.4 | $28.67 | 14,782 | 15.3 | 0.2 | $107.00 | 653,874 | 10.8 | $39.62 | ||||||||||||||||||||||||||
2019 | 335,410 | 12.5 | 5.5 | $43.77 | 359,307 | 10.9 | 5.9 | $28.87 | 19,519 | 20.2 | 0.3 | $94.97 | 714,236 | 11.8 | $37.67 | ||||||||||||||||||||||||||
2020 | 381,281 | 14.2 | 6.3 | $41.21 | 366,734 | 11.1 | 6.0 | $21.10 | 19,930 | 20.6 | 0.3 | $57.57 | 767,945 | 12.6 | $32.03 | ||||||||||||||||||||||||||
2021 | 297,447 | 11.1 | 4.9 | $44.37 | 167,152 | 5.1 | 2.8 | $42.97 | 12,383 | 12.8 | 0.2 | $238.51 | 476,982 | 7.9 | $48.92 | ||||||||||||||||||||||||||
2022 | 217,178 | (2) | 8.1 | 3.6 | $41.41 | 441,023 | 13.4 | 7.3 | $28.02 | 13,890 | 14.4 | 0.2 | $101.62 | 672,091 | 11.1 | $33.87 | |||||||||||||||||||||||||
2023 | 194,886 | 7.3 | 3.2 | $35.31 | 221,646 | 6.7 | 3.6 | $17.97 | 1,004 | 1.0 | — | $186.24 | 417,536 | 6.9 | $26.47 | ||||||||||||||||||||||||||
2024 | 160,152 | 6.0 | 2.6 | $36.26 | 248,674 | 7.5 | 4.1 | $25.31 | 1,027 | 1.1 | — | $225.00 | 409,853 | 6.7 | $30.09 | ||||||||||||||||||||||||||
2025 | 210,320 | 7.8 | 3.5 | $29.89 | 180,306 | 5.5 | 3.0 | $22.43 | 1,010 | 1.0 | — | — | 391,636 | 6.4 | $26.38 | ||||||||||||||||||||||||||
2026 | 25,120 | 0.9 | 0.4 | $26.89 | 101,045 | 3.1 | 1.7 | $25.76 | — | — | — | — | 126,165 | 2.1 | $25.98 | ||||||||||||||||||||||||||
Thereafter | 122,719 | 4.6 | 2.0 | $31.25 | 643,841 | 19.5 | 10.6 | $17.33 | 2,533 | 2.6 | — | 111.79 | 769,093 | 12.7 | $19.86 | ||||||||||||||||||||||||||
Signed Leases Not Commenced | 87,304 | 3.3 | 1.4 | — | 15,426 | 0.5 | 0.3 | — | 1,055 | 1.1 | — | — | 103,785 | 1.7 | — | ||||||||||||||||||||||||||
Available | 269,731 | 10.1 | 4.4 | — | 98,276 | 3.0 | 1.6 | — | 6,057 | 6.3 | 0.1 | — | 374,064 | 6.2 | — | ||||||||||||||||||||||||||
Total (3) | 2,681,637 | 100.0 | % | 44.1 | % | $34.90 | 3,297,739 | 100.0 | % | 54.3 | % | $23.92 | 96,707 | 100.0 | % | 1.6 | % | $104.01 | 6,076,083 | 100.0 | % | $30.04 | |||||||||||||||||||
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 | 15,398 | 0.6 | % | 0.3 | % | $1.77 | 14,954 | 0.5 | % | 0.2 | % | $31.24 | 1,355 | 1.4 | % | — | % | $— | 31,707 | 0.5 | % | $15.59 | |||||||||||||||||||
2017 | 117,204 | 4.4 | 1.9 | $37.44 | 47,750 | 1.4 | 0.8 | $30.66 | 2,162 | 2.2 | — | $189.36 | 167,116 | 2.8 | $37.47 | ||||||||||||||||||||||||||
2018 | 78,098 | 2.9 | 1.3 | $38.81 | 56,923 | 1.7 | 0.9 | $36.13 | 14,782 | 15.3 | 0.2 | $107.00 | 149,803 | 2.5 | $44.52 | ||||||||||||||||||||||||||
2019 | 129,112 | 4.8 | 2.1 | $41.09 | 90,782 | 2.8 | 1.5 | $35.77 | 7,829 | 8.1 | 0.1 | $145.66 | 227,723 | 3.7 | $42.56 | ||||||||||||||||||||||||||
2020 | 159,503 | 5.9 | 2.6 | $38.43 | 87,496 | 2.7 | 1.4 | $29.52 | 2,998 | 3.1 | — | $117.11 | 249,997 | 4.1 | $36.26 | ||||||||||||||||||||||||||
2021 | 82,291 | 3.1 | 1.4 | $35.20 | 93,810 | 2.8 | 1.5 | $46.34 | 12,383 | 12.8 | 0.2 | $238.51 | 188,484 | 3.1 | $54.10 | ||||||||||||||||||||||||||
2022 | 82,211 | 3.1 | 1.4 | $43.41 | 89,380 | 2.7 | 1.5 | $36.61 | 13,890 | 14.4 | 0.2 | $101.62 | 185,481 | 3.1 | $44.49 | ||||||||||||||||||||||||||
2023 | 148,699 | 5.5 | 2.4 | $44.46 | 87,888 | 2.7 | 1.4 | $34.20 | 1,004 | 1.0 | — | $186.24 | 237,591 | 3.9 | $41.26 | ||||||||||||||||||||||||||
2024 | 125,162 | 4.7 | 2.1 | $35.91 | 216,089 | 6.6 | 3.6 | $29.04 | 1,027 | 1.1 | — | $225.00 | 342,278 | 5.6 | $32.14 | ||||||||||||||||||||||||||
2025 | 163,968 | 6.1 | 2.7 | $35.24 | 98,329 | 3.0 | 1.6 | $29.68 | 1,010 | 1.0 | — | — | 263,307 | 4.3 | $33.03 | ||||||||||||||||||||||||||
2026 | 147,994 | 5.5 | 2.4 | $37.33 | 38,642 | 1.2 | 0.6 | $44.05 | — | — | — | — | 186,636 | 3.1 | $38.72 | ||||||||||||||||||||||||||
Thereafter | 1,074,962 | (2) | 40.1 | 17.7 | $42.63 | 2,261,994 | 68.6 | 37.2 | $21.02 | 31,155 | 32.2 | 0.5 | $57.54 | 3,368,111 | 55.4 | $28.25 | |||||||||||||||||||||||||
Signed Leases Not Commenced | 87,304 | 3.3 | 1.4 | — | 15,426 | 0.5 | 0.3 | — | 1,055 | 1.1 | — | — | 103,785 | 1.7 | — | ||||||||||||||||||||||||||
Available | 269,731 | 10.1 | 4.4 | — | 98,276 | 3.0 | 1.6 | — | 6,057 | 6.3 | 0.1 | — | 374,064 | 6.2 | — | ||||||||||||||||||||||||||
Total (3) | 2,681,637 | 100.0 | % | 44.1 | % | $34.90 | 3,297,739 | 100.0 | % | 54.3 | % | $23.92 | 96,707 | 100.0 | % | 1.6 | % | $104.01 | 6,076,083 | 100.0 | % | $30.04 |
Third Quarter 2017 Supplemental Information | Page 31 |
LEASE EXPIRATIONS (CONTINUED) | |
As of September 30, 2017 |
(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 September 30, 2017 for the leases expiring during the applicable period by (ii) 12 months. |
(2) | The expirations include 18,552 square feet leased by Scantron Corporation at City Center Bellevue through April 30, 2018, for which VMWare, Inc. has signed an agreement to lease such space beginning May 1, 2018 through November 30, 2022 with options to extend the lease through November 30, 2032. |
(3) | Individual items may not add up to total due to rounding. |
Third Quarter 2017 Supplemental Information | Page 32 |
PORTFOLIO LEASED STATISTICS | |
At September 30, 2017 | At September 30, 2016 | |||||||||||||||||
Type | Size | Leased (1) | Leased % | Size | Leased (1) | Leased % | ||||||||||||
Overall Portfolio (2) Statistics | ||||||||||||||||||
Retail Properties (square feet) | 3,297,739 | 3,199,463 | 97.0 | % | 3,077,765 | 2,985,749 | 97.0 | % | ||||||||||
Office Properties (square feet) | 2,681,637 | 2,411,906 | 89.9 | % | 2,696,150 | 2,423,889 | 89.9 | % | ||||||||||
Multifamily Properties (units) | 2,112 | 1,929 | 91.3 | % | (3) | 1,579 | 1,448 | 91.7 | % | |||||||||
Mixed-Use Properties (square feet) | 96,707 | 90,650 | 93.7 | % | 96,707 | 95,588 | 98.8 | % | ||||||||||
Mixed-Use Properties (units) | 369 | 342 | (4) | 92.7 | % | 369 | 333 | (4) | 90.3 | % | ||||||||
Same-Store(2) Statistics | ||||||||||||||||||
Retail Properties (square feet) | 3,125,725 | (5) | 3,039,478 | 97.2 | % | 3,045,194 | (5) | 2,963,507 | 97.3 | % | ||||||||
Office Properties (square feet) | 2,681,637 | 2,411,906 | 89.9 | % | 2,696,150 | 2,423,889 | 89.9 | % | ||||||||||
Multifamily Properties (units) | 922 | (6) | 838 | 90.9 | % | (3) | 922 | (6) | 875 | 94.9 | % | |||||||
Mixed-Use Properties (square feet) | 96,707 | 90,650 | 93.7 | % | 96,707 | 95,588 | 98.8 | % | ||||||||||
Mixed-Use Properties (units) | 369 | 342 | (4) | 92.7 | % | 369 | 333 | (4) | 90.3 | % |
(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) | Excluding the 21 units associated with the Loma Palisades repositioning, total multifamily was 92.3% leased and same-store multifamily was 93.1% leased at September 30, 2017. |
(4) | Represents average occupancy for the nine months ended September 30, 2017 and 2016. |
(5) | The same-store portfolio excludes Hassalo on Eighth - Retail; the retail component of the Elwood building was placed into operations in April 2016, the retail component of the Velomor building was placed into operations in July 2016 and the retail component of the Aster Tower building was placed into operations October 2016. The same-store portfolio also excludes Gateway Marketplace, which was acquired on July 6 2017. |
(6) | The same-store portfolio excludes Hassalo on Eighth - Multifamily, as the Velomor building was placed into operations and available for occupancy in July 2015 and the Aster Tower and Elwood buildings were placed into operations and available for occupancy in October 2015. The same-store portfolio also excludes the Pacific Ridge Apartments, as it was acquired on April 28, 2017. |
Third Quarter 2017 Supplemental Information | Page 33 |
TOP TENANTS - RETAIL | |
As of September 30, 2017 | |||||||||||||||||||||||||
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 | Kmart(1) | Waikele Center | 6/30/2018 | 119,590 | 3.9 | % | 2.0 | % | $ | 4,903,090 | 6.2 | % | 2.7 | % | |||||||||||
2 | Lowe's | Waikele Center | 5/31/2018 | 155,000 | 5.0 | 2.6 | 4,586,349 | 5.8 | 2.5 | ||||||||||||||||
3 | Nordstrom Rack | Carmel Mountain Plaza, Alamo Quarry Market | 9/30/2022 10/31/2022 | 69,047 | 2.2 | 1.2 | 1,990,316 | 2.5 | 1.1 | ||||||||||||||||
4 | 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 | 1,919,436 | 2.4 | 1.1 | ||||||||||||||||
5 | Old Navy | Waikele Center, South Bay Marketplace, Alamo Quarry Market | 7/31/2020 4/30/2021 9/30/2022 | 59,780 | 1.9 | 1.0 | * | * | * | ||||||||||||||||
6 | Marshalls | Carmel Mountain Plaza, Solana Beach Towne Centre | 1/31/2019 1/31/2025 | 68,055 | 2.2 | 1.2 | 1,335,447 | 1.7 | 0.7 | ||||||||||||||||
7 | Vons | Lomas Santa Fe Plaza | 12/31/2022 | 49,895 | 1.6 | 0.9 | 1,216,700 | 1.5 | 0.7 | ||||||||||||||||
8 | Regal Cinemas | Alamo Quarry Market | 3/31/2023 | 72,447 | 2.3 | 1.2 | 1,122,929 | 1.4 | 0.6 | ||||||||||||||||
9 | Angelika Film Center | Carmel Mountain Plaza | 1/31/2024 | 34,561 | 1.2 | 0.6 | 957,657 | 1.2 | 0.5 | ||||||||||||||||
10 | Saks Fifth Avenue OFF 5TH | Carmel Mountain Plaza | 5/31/2024 | 40,594 | 1.1 | 0.6 | 939,345 | 1.2 | 0.5 | ||||||||||||||||
Top 10 Retail Tenants Total | 740,400 | 23.7 | % | 12.5 | % | $ | 18,971,269 | 23.9 | % | 10.4 | % |
* | Data withheld at tenant's request. | |
(1 | ) | In December 2016, the Kmart store at Waikele Center ceased its operations, but continues to remain fully liable for all of its lease obligations until the lease's scheduled expiration on June 30, 2018. |
Third Quarter 2017 Supplemental Information | Page 34 |
TOP TENANTS - OFFICE | |
As of September 30, 2017 | |||||||||||||||||||||||||
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 | 9.5 | % | 4.2 | % | $ | 1,440,060 | 15.4 | % | 7.9 | % | |||||||||||
2 | Autodesk, Inc. | The Landmark at One Market | 12/31/2018 12/31/2022 | 114,664 | 4.3 | 1.9 | 8,196,441 | 8.8 | 4.5 | ||||||||||||||||
3 | Veterans Benefits Administration | First & Main | 8/31/2020 | 93,572 | 3.5 | 1.5 | 3,006,453 | 3.2 | 1.6 | ||||||||||||||||
4 | Clearesult Operating, LLC | First & Main | 4/30/2025 | 101,848 | 3.8 | 1.7 | 2,656,401 | 2.8 | 1.5 | ||||||||||||||||
5 | State of Oregon: Department of Environmental Quality | Lloyd District Portfolio | 10/31/2031 | 87,787 | 3.3 | 1.4 | 2,458,036 | 2.6 | 1.3 | ||||||||||||||||
6 | Alliant International University | One Beach Street | 10/31/2019 | 64,161 | 2.4 | 1.1 | 2,374,710 | 2.5 | 1.3 | ||||||||||||||||
7 | Treasury Call Center | First & Main | 8/31/2020 | 63,648 | 2.4 | 1.0 | 2,184,302 | 2.3 | 1.2 | ||||||||||||||||
8 | HDR Engineering, Inc. | City Center Bellevue | 12/31/2017 | 56,024 | 2.1 | 0.9 | 2,156,924 | 2.3 | 1.2 | ||||||||||||||||
9 | California Bank & Trust | Torrey Reserve Campus | 2/29/2024 | 34,731 | 1.3 | 0.6 | 1,754,961 | 1.9 | 1.0 | ||||||||||||||||
10 | Familycare, Inc. | Lloyd District Portfolio | 9/30/2024 | 61,082 | 2.3 | 1.0 | 1,746,222 | 1.9 | 1.0 | ||||||||||||||||
Top 10 Office Tenants Total | 931,635 | 34.9 | % | 15.3 | % | $ | 27,974,510 | 43.7 | % | 22.5 | % |
Third Quarter 2017 Supplemental Information | Page 35 |
Third Quarter 2017 Supplemental Information | Page 36 |
GLOSSARY OF TERMS | |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 12,505 | $ | 11,858 | $ | 30,401 | $ | 33,229 | |||||||
Depreciation and amortization | 21,192 | 17,992 | 63,360 | 53,159 | |||||||||||
Interest expense | 13,873 | 13,049 | 39,856 | 39,148 | |||||||||||
Interest income | (111 | ) | (24 | ) | (371 | ) | (63 | ) | |||||||
Income tax expense/(benefit) | 210 | 601 | (32 | ) | 643 | ||||||||||
EBITDA | $ | 47,669 | $ | 43,476 | $ | 133,214 | $ | 126,116 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
EBITDA | $ | 47,669 | $ | 43,476 | $ | 133,214 | $ | 126,116 | |||||||
Pro forma adjustments | 814 | — | 814 | — | |||||||||||
Adjusted EBITDA | $ | 48,483 | $ | 43,476 | $ | 134,028 | $ | 126,116 |
Third Quarter 2017 Supplemental Information | Page 37 |
GLOSSARY OF TERMS (CONTINUED) | |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Reconciliation of NOI to net income | 2017 | 2016 | 2017 | 2016 | |||||||||||
Total NOI | $ | 52,627 | $ | 47,989 | $ | 148,385 | $ | 139,446 | |||||||
General and administrative | (4,958 | ) | (4,513 | ) | (15,171 | ) | (13,456 | ) | |||||||
Depreciation and amortization | (21,192 | ) | (17,992 | ) | (63,360 | ) | (53,159 | ) | |||||||
Interest expense | (13,873 | ) | (13,049 | ) | (39,856 | ) | (39,148 | ) | |||||||
Other income, net | (99 | ) | (577 | ) | 403 | (454 | ) | ||||||||
Net income | 12,505 | 11,858 | 30,401 | 33,229 | |||||||||||
Net income attributable to restricted shares | (60 | ) | (42 | ) | (181 | ) | (128 | ) | |||||||
Net loss attributable to unitholders in the Operating Partnership | (3,351 | ) | (3,342 | ) | (8,220 | ) | (9,377 | ) | |||||||
Net income attributable to American Assets Trust, Inc. stockholders | $ | 9,094 | $ | 8,474 | $ | 22,000 | $ | 23,724 |
Third Quarter 2017 Supplemental Information | Page 38 |
GLOSSARY OF TERMS (CONTINUED) | |
Comparison of Three Months Ended | Comparison of Nine Months Ended | ||||||||||
September 30, 2017 to 2016 | September 30, 2017 to 2016 | ||||||||||
Same-Store | Non Same-Store | Redevelopment Same-Store | Same-Store | Non Same-Store | Redevelopment Same-Store | ||||||
Retail Properties | |||||||||||
Carmel Country Plaza | X | X | X | X | |||||||
Carmel Mountain Plaza | X | X | X | X | |||||||
South Bay Marketplace | X | X | X | X | |||||||
Gateway Marketplace | X | X | |||||||||
Lomas Santa Fe Plaza | X | X | X | X | |||||||
Solana Beach Towne Centre | X | X | X | X | |||||||
Del Monte Center | X | X | X | X | |||||||
Geary Marketplace | X | X | X | X | |||||||
The Shops at Kalakaua | X | X | X | X | |||||||
Waikele Center | X | X | X | X | |||||||
Alamo Quarry Market | X | X | X | X | |||||||
Hassalo on Eighth - Retail | X | X | |||||||||
Office Properties | |||||||||||
Torrey Reserve Campus | X | X | X | X | |||||||
Solana Beach Corporate Centre | X | X | X | X | |||||||
The Landmark at One Market | X | X | X | X | |||||||
One Beach Street | X | X | X | X | |||||||
First & Main | X | X | X | X | |||||||
Lloyd District Portfolio | X | X | X | X | |||||||
City Center Bellevue | X | X | X | X | |||||||
Multifamily Properties | |||||||||||
Loma Palisades | X | X | X | X | |||||||
Imperial Beach Gardens | X | X | X | X | |||||||
Mariner's Point | X | X | X | X | |||||||
Santa Fe Park RV Resort | X | X | X | X | |||||||
Pacific Ridge Apartments | X | X | |||||||||
Hassalo on Eighth | X | X | |||||||||
Mixed-Use Properties | |||||||||||
Waikiki Beach Walk - Retail | X | X | X | X | |||||||
Waikiki Beach Walk - Embassy Suites™ | X | X | X | X | |||||||
Development Properties | |||||||||||
Torrey Point - Construction in Progress | X | X | |||||||||
Solana Beach Corporate Centre - Land | X | X | |||||||||
Solana Beach - Highway 101 - Land | X | X | |||||||||
Lloyd District Portfolio - Land | X | X |
Third Quarter 2017 Supplemental Information | Page 39 |
GLOSSARY OF TERMS (CONTINUED) | |
Third Quarter 2017 Supplemental Information | Page 40 |