Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - Douglas Emmett Inc | ex99-1.htm |
| 8-K - COVER PAGE - Douglas Emmett Inc | form8k.htm |
Supplemental
Operating and Financial Data
For
the Quarter Ended December 31, 2009
|
Douglas
Emmett, Inc.
|
TABLE
OF CONTENTS
|
|
PAGE
|
|
|
Corporate
Data
|
2
|
|
Investor
Information
|
3
|
|
CONSOLIDATED
FINANCIAL RESULTS
|
|
|
Balance
Sheets
|
5
|
|
Quarterly
Operating Results
|
6
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|
Funds
from Operations and Adjusted Funds from Operations
|
7
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|
Same
Property Statistical and Financial Data
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8
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Reconciliation
of Same Property NOI to GAAP Net Income (Loss)
|
9
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Definitions
|
10
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Debt
Balances
|
11
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PORTFOLIO
DATA
|
|
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Office
Portfolio Summary
|
13
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Office
Portfolio Percent Leased and In-Place Rents
|
14
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Multifamily
Portfolio Summary
|
15
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Tenant
Diversification
|
16
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Industry
Diversification
|
17
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Lease
Distribution
|
18
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Lease
Expirations
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19
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Quarterly
Lease Expirations – Next Four Quarters
|
20
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Office
Portfolio Leasing Activity
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21
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This
Supplemental Operating and Financial Data contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. Future events and actual results, financial and otherwise,
may differ materially from the results discussed in the forward-looking
statements. You should not rely on forward looking statements as
predictions of future events. Forward-looking statements involve
numerous risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ materially from
those expressed in any forward-looking statement made by us. These risks and
uncertainties include, but are not limited to: adverse economic and real estate
developments in Southern California and Honolulu; decreased rental rates or
increased tenant incentives and vacancy rates; defaults on, early terminations
of, or non-renewal of leases by tenants; increased interest rates and operating
costs; failure to generate sufficient cash flows to service our outstanding
indebtedness; difficulties in identifying properties to acquire and completing
acquisitions; failure to successfully operate acquired properties and
operations; failure to maintain our status as a REIT under the Internal Revenue
Code of 1986, as amended; possible adverse changes in rent control laws and
regulations; environmental uncertainties; risks related to natural disasters;
lack or insufficient amount of insurance; inability to successfully expand into
new markets or submarkets; risks associated with property development; conflicts
of interest with our officers; changes in real estate and zoning laws and
increases in real property tax rates; the consequences of any possible future
terrorist attacks; and other risks and uncertainties detailed in our Annual
Report on Form 10-K filed with the Securities and Exchange
Commission.
|
Douglas
Emmett, Inc.
|
CORPORATE
DATA
|
Douglas
Emmett, Inc.
|
CORPORATE
DATA
as
of December 31, 2009
|
Douglas
Emmett, Inc. (NYSE: DEI) is a fully integrated, self-administered and
self-managed real estate investment trust (REIT), and one of the largest owners
and operators of high-quality office and multifamily properties located in
submarkets in California and Hawaii. The Company’s properties are concentrated
in ten submarkets – Brentwood, Olympic Corridor, Century City, Santa Monica,
Beverly Hills, Westwood, Sherman Oaks/Encino, Warner Center/Woodland Hills,
Burbank, and Honolulu. The Company focuses on owning and acquiring a
substantial share of top-tier office properties and premier multifamily
communities in neighborhoods that possess significant supply constraints,
high-end executive housing and key lifestyle amenities.
This
Supplemental Operating and Financial Data supplements the information provided
in our reports filed with the Securities and Exchange Commission. We
maintain a website at www.douglasemmett.com.
|
55
|
|||
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Square
feet owned (in thousands)
(1)
|
13,329
|
||
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Office
leased rate as of December 31, 2009 (1)
|
90.3
|
%
|
|
|
Office
occupied rate as of December 31, 2009 (1)
(2)
|
89.0
|
%
|
|
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Number
of multifamily properties owned
|
9
|
||
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Number
of multifamily units owned
|
2,868
|
||
|
Multifamily
leased rate as of December 31, 2009
|
99.0
|
%
|
|
|
Market
capitalization (in thousands):
|
|||
|
Total
debt (3)
(4)
|
3,430,193
|
||
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Common
equity capitalization (5)
|
2,213,219
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||
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Total
market capitalization
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5,643,412
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||
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Debt/total
market capitalization
|
60.8
|
%
|
|
|
Common
stock data (NYSE:DEI):
|
|||
|
Range
of closing prices
(6)
|
$11.64
- $14.85
|
||
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Closing
price at quarter end
|
$14.25
|
||
|
Weighted
average fully diluted shares outstanding (in thousands) (6)
(7)
|
155,657
|
||
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Shares
of common stock outstanding on December 31, 2009 (in thousands)
(8)
|
121,596
|
||
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(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a consolidated joint venture in which we own a 66.7% interest and 6
properties totaling 1.4 million square feet owned by an unconsolidated
real estate fund.
|
|
(2)
|
Represents
percent leased less signed leases not yet commenced.
|
|
(3)
|
Excludes
non-cash loan premium.
|
|
(4)
|
Excludes
one-third of the $18 million debt attributable to the noncontrolling
interest in a consolidated joint venture; includes $178 million of debt
carried by an unconsolidated entity in which our operating partnership
(OP) owns an equity interest.
|
|
(5)
|
Common
equity capitalization represents the total number of shares of common
stock and OP units outstanding multiplied by the closing price of our
stock at the end of the period.
|
|
(6)
|
For
the quarter ended December 31, 2009.
|
|
(7)
|
Diluted
shares represent ownership in our company through shares of common stock,
OP units and other convertible equity instruments.
|
|
(8)
|
This
amount represents undiluted shares, and does not include OP units and
other convertible equity
instruments.
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- 2
-
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Douglas
Emmett, Inc.
|
INVESTOR
INFORMATION
|
CORPORATE
|
|
808
Wilshire Boulevard, Suite 200, Santa Monica, California
90401
|
|
|
(310)
255-7700
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BOARD
OF DIRECTORS
|
|
Dan
A. Emmett
Chairman
of the Board
Douglas
Emmett, Inc
|
Leslie
E. Bider
Chief
Executive Officer
PinnacleCare
|
Dr.
Andrea L. Rich
Former
President and Chief Executive Officer
Los
Angeles Museum of Art (LACMA)
Former
Executive Vice Chancellor and Chief Operating Officer
University
of California Los Angeles (UCLA)
|
|
Jordan
L. Kaplan
Chief
Executive Officer and President
Douglas
Emmett, Inc.
|
Ghebre
Selassie Mehreteab
Former
Chief Executive Officer
NHP
Foundation
|
William
Wilson III
Managing
Partner – Wilson Meany Sullivan, LLC
Former
Chairman – Cornerstone Properties, Inc.
|
|
Kenneth
M. Panzer
Chief
Operating Officer
Douglas
Emmett, Inc.
|
Thomas
E. O’Hern
Executive
V.P., Chief Financial Officer & Treasurer
Macerich
Company
|
|
|
EXECUTIVE
AND SENIOR MANAGEMENT
|
|
Jordan
L. Kaplan
President
and Chief Executive Officer
|
Kenneth
M. Panzer
Chief
Operating Officer
|
William
Kamer
Chief
Financial Officer
|
|
Allan
B. Golad
SVP,
Property Management
|
Gregory
R. Hambly
Chief
Accounting Officer
|
Michael
J. Means
SVP,
Commercial Leasing
|
INVESTOR
RELATIONS
Mary
C. Jensen
Vice
President - Investor Relations
(310)
255-7751
Email
Contact: mjensen@douglasemmett.com
Please
visit our corporate website at: www.douglasemmett.com
- 3
-
|
Douglas
Emmett, Inc.
|
CONSOLIDATED
FINANCIAL
RESULTS
- 4
-
|
Douglas
Emmett, Inc.
|
BALANCE
SHEETS
(unaudited
and in thousands)
|
|
December
31, 2009
|
December
31, 2008
|
|||||||
|
Assets
|
||||||||
|
Investment
in real estate:
|
||||||||
|
Land
|
$ | 835,407 | $ | 900,213 | ||||
|
Buildings
and improvements
|
5,017,569 | 5,528,567 | ||||||
|
Tenant
improvements and lease intangibles
|
534,084 | 552,536 | ||||||
|
Investment
in real estate, gross
|
6,387,060 | 6,981,316 | ||||||
|
Less:
accumulated depreciation
|
(688,893 | ) | (490,125 | ) | ||||
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Investment
in real estate, net
|
5,698,167 | 6,491,191 | ||||||
|
Cash
and cash equivalents
|
72,740 | 8,655 | ||||||
|
Tenant
receivables, net
|
1,841 | 2,427 | ||||||
|
Deferred
rent receivables, net
|
40,395 | 33,039 | ||||||
|
Interest
rate contracts
|
108,027 | 176,255 | ||||||
|
Acquired
lease intangible assets, net
|
11,691 | 18,163 | ||||||
|
Investment
in unconsolidated real estate fund
|
97,127 | - | ||||||
|
Other
assets
|
29,944 | 31,304 | ||||||
|
Total
assets
|
$ | 6,059,932 | $ | 6,761,034 | ||||
|
Liabilities
|
||||||||
|
Secured
notes payable
|
$ | 3,258,000 | $ | 3,672,300 | ||||
|
Unamortized
non-cash debt premium
|
15,459 | 20,485 | ||||||
|
Interest
rate contracts
|
237,194 | 407,492 | ||||||
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Accrued
interest payable
|
26,263 | 22,982 | ||||||
|
Accounts
payable and accrued expenses
|
46,630 | 46,463 | ||||||
|
Acquired
lease intangible liabilities, net
|
139,340 | 195,036 | ||||||
|
Security
deposits
|
32,501 | 35,890 | ||||||
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Dividends
payable
|
12,160 | 22,856 | ||||||
|
Other
liabilities
|
- | 57,316 | ||||||
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Total
liabilities
|
3,767,547 | 4,480,820 | ||||||
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Equity
|
||||||||
|
Douglas
Emmett, Inc. stockholders' equity
|
||||||||
|
Common
stock
|
1,216 | 1,219 | ||||||
|
Additional
paid-in capital
|
2,290,419 | 2,284,429 | ||||||
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Accumulated
other comprehensive income (loss)
|
(186,255 | ) | (274,111 | ) | ||||
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Accumulated
deficit
|
(312,017 | ) | (236,348 | ) | ||||
|
Total
Douglas Emmett, Inc. stockholders' equity
|
1,793,363 | 1,775,189 | ||||||
|
Noncontrolling
interests
|
499,022 | 505,025 | ||||||
|
Total
equity
|
2,292,385 | 2,280,214 | ||||||
|
Total
liabilities and equity
|
$ | 6,059,932 | $ | 6,761,034 | ||||
- 5
-
|
Douglas
Emmett, Inc.
|
QUARTERLY
OPERATING RESULTS
(unaudited
and in thousands, except per share
data)
|
|
Three
Months Ended December 31,
|
Twelve
Months Ended December 31,
|
|||||||||||
|
2009
|
(1)
|
2008
|
(2)
|
2009
|
(1)
|
2008
|
(2)
|
|||||
|
Revenues:
|
||||||||||||
|
Office
rental:
|
||||||||||||
|
Rental
revenues
|
$
|
98,898
|
$
|
110,471
|
$
|
406,117
|
$
|
433,487
|
||||
|
Tenant
recoveries
|
8,248
|
9,869
|
31,407
|
32,392
|
||||||||
|
Parking
and other income
|
15,266
|
17,726
|
65,243
|
71,498
|
||||||||
|
Total
office revenues
|
122,412
|
(3)
|
138,066
|
(3)
|
502,767
|
(4)
|
537,377
|
(4)
|
||||
|
Multifamily
rental:
|
||||||||||||
|
Rental
revenues
|
15,953
|
16,380
|
64,127
|
66,510
|
||||||||
|
Parking
and other income
|
1,056
|
1,124
|
4,166
|
4,207
|
||||||||
|
Total
multifamily revenues
|
17,009
|
17,504
|
68,293
|
70,717
|
||||||||
|
Total
revenues
|
139,421
|
155,570
|
571,060
|
608,094
|
||||||||
|
Operating
Expenses:
|
||||||||||||
|
Office
expenses
|
38,602
|
(5)
|
44,200
|
(5)
|
154,270
|
(6)
|
166,124
|
(6)
|
||||
|
Multifamily
expenses
|
4,562
|
4,191
|
17,925
|
17,079
|
||||||||
|
General
and administrative
|
5,992
|
6,389
|
23,887
|
22,646
|
||||||||
|
Depreciation
and amortization
|
54,288
|
63,793
|
226,620
|
248,011
|
||||||||
|
Total
operating expenses
|
103,444
|
118,573
|
422,702
|
453,860
|
||||||||
|
Operating
income
|
35,977
|
36,997
|
148,358
|
154,234
|
||||||||
|
Gain
on disposition of interest in unconsolidated real estate
fund
|
-
|
-
|
5,573
|
-
|
||||||||
|
Other
income (loss)
|
439
|
3,091
|
(12)
|
3,580
|
||||||||
|
Loss,
including depreciation, from unconsolidated real estate
fund
|
(2,050)
|
-
|
(3,279)
|
-
|
||||||||
|
Interest
expense
|
(45,643)
|
(48,147)
|
(184,797)
|
(193,727)
|
||||||||
|
Net
loss
|
(11,277)
|
(8,059)
|
(34,157)
|
(35,913)
|
||||||||
|
Less: Net
loss attributable to noncontrolling interests
|
2,368
|
1,690
|
7,093
|
7,920
|
||||||||
|
Net
loss attributable to common stockholders
|
$
|
(8,909)
|
$
|
(6,369)
|
$
|
(27,064)
|
$
|
(27,993)
|
||||
|
Net
loss per common share – basic and diluted(7)
|
$
|
(0.07)
|
$
|
(0.05)
|
$
|
(0.22)
|
$
|
(0.23)
|
||||
|
Weighted
average shares of common stock outstanding – basic and diluted(7)
|
121,568
|
121,777
|
121,553
|
120,726
|
||||||||
|
(1)
|
Douglas
Emmett Fund X, LLC (Fund X) was deconsolidated from our financial
statements as of the end of February 2009 and is presented on an
unconsolidated basis beginning March 2009. As a result, the
consolidated operating results of Douglas Emmett, Inc. for 2009 presented
above reflect the impact of the properties owned by Fund X only for the
months of January and February 2009 on a consolidated
basis.
|
|
(2)
|
The
properties currently owned by Fund X were acquired by us at the end of
March 2008. As such, our consolidated operating results reflect
the impact of the properties now owned by Fund X for the period from March
26, 2008 through December 31, 2008.
|
|
(3)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the entire fourth quarter of 2008, total office revenues
for the fourth quarter of 2008 would have been $122,612 (after subtracting
office revenues attributable to the properties contributed to Fund X of
$15,454) in comparison to the total office revenues of $122,412 for the
fourth quarter of 2009 shown above.
|
|
(4)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the period during 2008 following our acquisition of the
properties and for all of 2009, total office revenues would have been
$491,567 for 2008 (after subtracting office revenues attributable to the
properties contributed to Fund X of $45,810) in comparison to total office
revenues of $493,191 for 2009 (after subtracting office revenues
attributable to the properties contributed to Fund X of
$9,576).
|
|
(5)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the entire fourth quarter of 2008, total office expenses
for the fourth quarter of 2008 would have been $38,949 (after subtracting
office expenses attributable to the properties contributed to Fund X of
$5,251) in comparison to the total office expenses of $38,602 for the
fourth quarter of 2009 shown above.
|
|
(6)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the period during 2008 following our acquisition of the
properties and for all of 2009, total office expenses would have been
$150,423 for 2008 (after subtracting office expenses attributable to the
properties contributed to Fund X of $15,701) in comparison to total office
expenses of $151,572 for 2009 (after subtracting office expenses
attributable to the properties contributed to Fund X of
$2,698).
|
|
(7)
|
Diluted
shares are calculated in accordance with accounting principles generally
accepted in the United States (GAAP) and include common stock plus
dilutive equity instruments, as appropriate. This amount
excludes OP units and vested LTIP units (Long-Term Incentive Plan units
that are limited partnership units in our OP), which are included in the
non-GAAP calculation of diluted shares on the “Corporate Data” page
preceding this section.
|
- 6
-
|
Douglas
Emmett, Inc.
|
FUNDS
FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(unaudited
and in thousands, except per share
data)
|
|
Three
Months Ended December 31,
|
Twelve
Months Ended December 31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Funds
From Operations (FFO)
|
||||||||||||||||
|
Net
loss attributable to common stockholders
|
$ | (8,909 | ) | $ | (6,369 | ) | $ | (27,064 | ) | $ | (27,993 | ) | ||||
|
Depreciation
and amortization of real estate assets
|
54,288 | 63,793 | 226,620 | 248,011 | ||||||||||||
|
Net
loss attributable to noncontrolling interests
|
(2,368 | ) | (1,690 | ) | (7,093 | ) | (7,920 | ) | ||||||||
|
Loss
on asset disposition
|
- | - | - | 65 | ||||||||||||
|
Gain
on disposition of interest in unconsolidated real estate
fund
|
- | - | (5,573 | ) | - | |||||||||||
|
Less:
adjustments attributable to consolidated joint venture and
unconsolidated
investment
in real estate fund
|
3,249 | (157 | ) | 11,183 | (470 | ) | ||||||||||
|
FFO
|
$ | 46,260 | $ | 55,577 | $ | 198,073 | $ | 211,693 | ||||||||
|
Adjusted
Funds From Operations (AFFO)
|
||||||||||||||||
|
FFO
|
$ | 46,260 | $ | 55,577 | $ | 198,073 | $ | 211,693 | ||||||||
|
Straight-line
rent adjustment
|
(2,287 | ) | (1,348 | ) | (8,961 | ) | (12,234 | ) | ||||||||
|
Amortization
of acquired above and below market leases
|
(6,998 | ) | (10,577 | ) | (32,468 | ) | (42,907 | ) | ||||||||
|
Amortization
of interest rate contracts and loan premium
|
3,807 | (315 | ) | 15,036 | 9,063 | |||||||||||
|
Amortization
of prepaid financing
|
445 | 666 | 2,018 | 2,083 | ||||||||||||
|
Recurring
capital expenditures, tenant improvements and leasing
commissions
|
(11,905 | ) | (10,618 | ) | (32,031 | ) | (29,018 | ) | ||||||||
|
Non-cash
compensation expense
|
1,542 | 1,137 | 6,534 | 6,596 | ||||||||||||
|
Less:
adjustments attributable to consolidated joint venture and
unconsolidated
investment
in real estate fund
|
(816 | ) | 48 | (2,952 | ) | 154 | ||||||||||
|
AFFO
|
$ | 30,048 | $ | 34,570 | $ | 145,249 | $ | 145,430 | ||||||||
|
Weighted
average share equivalents outstanding - fully diluted
|
155,657 | 156,062 | 155,561 | 156,172 | ||||||||||||
|
FFO
per share- fully diluted
|
$ | 0.30 | $ | 0.36 | $ | 1.27 | $ | 1.36 | ||||||||
|
Dividends
per share declared
|
$ | 0.10 | $ | 0.1875 | $ | 0.40 | $ | 0.75 | ||||||||
|
AFFO
payout ratio
|
51.69 | % | 84.66 | % | 42.75 | % | 80.40 | % | ||||||||
|
NOTE: Our
definitions of FFO and AFFO are contained on the page titled "Definitions"
which follows.
|
||||||||||||||||
- 7
-
|
Douglas
Emmett, Inc.
|
SAME
PROPERTY STATISTICAL AND FINANCIAL DATA
(unaudited
and in thousands, except
statistics)
|
|
As
of December 31,
|
||||||||||
|
2009
|
2008
|
|||||||||
|
Same
Property Office Statistics
|
||||||||||
|
Number
of properties
|
49
|
49
|
||||||||
|
Rentable
square feet
|
11,889,282
|
11,888,907
|
||||||||
|
%
leased
|
91.7
|
%
|
94.0
|
%
|
||||||
|
%
occupied
|
90.6
|
%
|
93.3
|
%
|
||||||
|
Same
Property Multifamily Statistics
|
||||||||||
|
Number
of properties
|
9
|
9
|
||||||||
|
Number
of units
|
2,868
|
2,868
|
||||||||
|
%
leased
|
99.0
|
%
|
99.1
|
%
|
||||||
|
Three
Months Ended December 31,
|
%
Favorable
|
|||||||||
|
2009
|
2008
|
(Unfavorable)
|
||||||||
|
Same
Property Net Operating Income - GAAP Basis
|
||||||||||
|
Total
office revenues
|
$
|
122,412
|
$
|
122,612
|
(0.2)
|
%
|
||||
|
Total
multifamily revenues
|
17,009
|
17,504
|
(2.8)
|
|||||||
|
Total
revenues
|
139,421
|
140,116
|
(0.5)
|
|||||||
|
Total
office expense
|
(38,602)
|
(38,949)
|
0.9
|
|||||||
|
Total
multifamily expense
|
(4,562)
|
(4,191)
|
(8.9)
|
|||||||
|
Total
property expense
|
(43,164)
|
(43,140)
|
(0.1)
|
|||||||
|
Same
Property NOI - GAAP basis
|
$
|
96,257
|
$
|
96,976
|
(0.7)
|
%
|
||||
|
Same
Property Net Operating Income - Cash Basis
|
||||||||||
|
Total
office revenues
|
$
|
114,053
|
$
|
114,503
|
(0.4)
|
%
|
||||
|
Total
multifamily revenues
|
16,129
|
16,621
|
(3.0)
|
|||||||
|
Total
revenues
|
130,182
|
131,124
|
(0.7)
|
|||||||
|
Total
office expense
|
(38,648)
|
(38,994)
|
0.9
|
|||||||
|
Total
multifamily expense
|
(4,562)
|
(4,191)
|
(8.9)
|
|||||||
|
Total
property expense
|
(43,210)
|
(43,185)
|
(0.1)
|
|||||||
|
Same
Property NOI - cash basis
|
$
|
86,972
|
$
|
87,939
|
(1.1)
|
%
|
||||
|
NOTE: Our
definitions of NOI, same property and cash basis are contained on the page
titled "Definitions" which follows.
|
||||||||||
- 8
-
|
Douglas
Emmett, Inc.
|
RECONCILIATION
OF SAME PROPERTY NOI TO GAAP NET INCOME (LOSS)
(unaudited
and in thousands)
|
|
Three
Months Ended December 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Same
property office revenues - cash basis
|
$ | 114,053 | $ | 114,503 | ||||
|
GAAP
adjustments
|
8,359 | 8,109 | ||||||
|
Same
property office revenues - GAAP basis
|
122,412 | 122,612 | ||||||
|
Same
property multifamily revenues - cash basis
|
16,129 | 16,621 | ||||||
|
GAAP
adjustments
|
880 | 883 | ||||||
|
Same
property multifamily revenues - GAAP basis
|
17,009 | 17,504 | ||||||
|
Same
property revenues - GAAP basis
|
139,421 | 140,116 | ||||||
|
Same
property office expenses - cash basis
|
(38,648 | ) | (38,994 | ) | ||||
|
GAAP
adjustments
|
46 | 45 | ||||||
|
Same
property office expenses - GAAP basis
|
(38,602 | ) | (38,949 | ) | ||||
|
Same
property multifamily expenses - cash basis
|
(4,562 | ) | (4,191 | ) | ||||
|
GAAP
adjustments
|
- | - | ||||||
|
Same
property multifamily expenses - GAAP basis
|
(4,562 | ) | (4,191 | ) | ||||
|
Same
property expenses - GAAP basis
|
(43,164 | ) | (43,140 | ) | ||||
|
Same
property Net Operating Income (NOI) - GAAP basis
|
96,257 | 96,976 | ||||||
|
Non-comparable
office revenues
|
- | 15,454 | ||||||
|
Non-comparable
office expenses
|
- | (5,251 | ) | |||||
|
Total
property NOI - GAAP basis
|
96,257 | 107,179 | ||||||
|
General
and administrative expenses
|
(5,992 | ) | (6,389 | ) | ||||
|
Depreciation
and amortization
|
(54,288 | ) | (63,793 | ) | ||||
|
Operating
income
|
35,977 | 36,997 | ||||||
|
Other
income
|
439 | 3,091 | ||||||
|
Loss,
including depreciation, from unconsolidated real estate
fund
|
(2,050 | ) | - | |||||
|
Interest
expense
|
(45,643 | ) | (48,147 | ) | ||||
|
Net
loss
|
(11,277 | ) | (8,059 | ) | ||||
|
Less:
Net loss attributable to noncontrolling interests
|
2,368 | 1,690 | ||||||
|
Net
loss attributable to common stockholders
|
$ | (8,909 | ) | $ | (6,369 | ) | ||
|
NOTE: Our
definitions of NOI, same property and cash basis are contained on the page
titled "Definitions" which follows.
|
||||||||
- 9
-
|
Douglas
Emmett, Inc.
|
DEFINITIONS
|
|
Funds From
Operations (FFO): We calculate funds from operations
before noncontrolling interest (FFO) in accordance with the standards
established by the National Association of Real Estate Investment Trusts
(NAREIT). FFO represents net income (loss), computed in accordance with
accounting principles generally accepted in the United States of America
(GAAP), excluding gains (or losses) from sales of depreciable operating
property, real estate depreciation and amortization (excluding
amortization of deferred financing costs) and after adjustments for
unconsolidated partnerships and joint ventures. We use FFO as a
supplemental performance measure because, in excluding real estate
depreciation and amortization and gains and losses from property
dispositions, it provides a performance measure that, when compared year
over year, captures trends in occupancy rates, rental rates and operating
costs. We also believe that, as a widely recognized measure of the
performance of REITs, FFO will be used by investors as a basis to compare
our operating performance with that of other REITs. However,
because FFO excludes depreciation and amortization and captures neither
the changes in the value of our properties that results from use or market
conditions nor the level of capital expenditures and leasing commissions
necessary to maintain the operating performance of our properties, all of
which have real economic effect and could materially impact our results
from operations, the utility of FFO as a measure of our performance is
limited. Other equity REITs may not calculate FFO in accordance with the
NAREIT definition and, accordingly, our FFO may not be comparable to such
other REITs’ FFO. Accordingly, FFO should be considered only as a
supplement to net income as a measure of our performance. FFO should not
be used as a measure of our liquidity, nor is it indicative of funds
available to fund our cash needs, including our ability to pay dividends.
FFO should not be used as a supplement to or substitute for cash flow from
operating activities computed in accordance with GAAP.
|
|
Adjusted
Funds From Operations (AFFO): Adjusted Funds From
Operations (AFFO) is a non-GAAP financial measure we believe is a useful
supplemental measure of our performance. We compute AFFO by
adding to FFO the non-cash compensation expense, amortization of prepaid
financing costs and straight-line rents, and then subtracting recurring
capital expenditures, tenant improvements and leasing
commissions. AFFO is not intended to represent cash flow for
the period, and it only provides an additional perspective on our ability
to fund cash needs and make distributions to shareholders by adjusting the
effect of the non-cash items included in FFO, as well as recurring capital
expenditures and leasing costs. We believe that net income is
the most directly comparable GAAP financial measure to AFFO. We
also believe that AFFO provides useful information to the investment
community about our financial position as compared to other REITs since
AFFO is a widely reported measure used by other REITs. However,
other REITs may use different methodologies for calculating AFFO and,
accordingly, our AFFO may not be comparable to other REITs.
|
|
Net
Operating Income (NOI): Reported net income (or loss) is
computed in accordance with GAAP. In contrast, net operating
income (NOI) is a non-GAAP measure consisting of the revenue and expense
attributable to the real estate properties that we own and
operate. Although NOI is considered a non-GAAP measure, we
present NOI on a “GAAP basis” by using property revenues and expenses
calculated in accordance with GAAP. The most directly
comparable GAAP measure to NOI is net income (or loss), adjusted to
exclude general and administrative expense, depreciation and amortization
expense, interest income, interest expense, income from unconsolidated
partnerships, income (or loss) attributable to noncontrolling interests,
gains (or losses) from sales of depreciable operating properties, net
income from discontinued operations and extraordinary items. We
use NOI as a supplemental performance measure because, in excluding real
estate depreciation and amortization expense and gains (or losses) from
property dispositions, it provides a performance measure that, when
compared year over year, captures trends in occupancy rates, rental rates
and operating costs. We also believe that NOI will be useful to
investors as a basis to compare our operating performance with that of
other REITs. However, because NOI excludes depreciation and amortization
expense and captures neither the changes in the value of our properties
that result from use or market conditions, nor the level of capital
expenditures and leasing commissions necessary to maintain the operating
performance of our properties (all of which have real economic effect and
could materially impact our results from operations), the utility of NOI
as a measure of our performance is limited. Other equity REITs may not
calculate NOI in a similar manner and, accordingly, our NOI may not be
comparable to such other REITs’ NOI. Accordingly, NOI should be
considered only as a supplement to net income as a measure of our
performance. NOI should not be used as a measure of our liquidity, nor is
it indicative of funds available to fund our cash needs, including our
ability to pay dividends. NOI should not be used as a
substitute for cash flow from operating activities computed in accordance
with GAAP.
|
|
Same
Property NOI: To facilitate a more meaningful comparison
of NOI between periods, we calculate comparable amounts for a subset of
our owned properties referred to as “same properties.” Same
property amounts are calculated as the amounts attributable to properties
which have been owned and operated by us, and reported in our consolidated
results, during the entire span of both periods
compared. Therefore, any properties either acquired after the
first day of the earlier comparison period or sold, contributed or
otherwise removed from our consolidated financial statements before the
last day of the later comparison period are excluded from same
properties. We may also exclude from the same property set any
property that is undergoing a major repositioning project that would
impact the comparability of its results between two periods.
|
|
Cash Basis
NOI: NOI as defined above includes the revenue and
expense directly attributable to our real estate properties calculated in
accordance with GAAP, and is specifically labeled as “GAAP
basis.” We also believe that NOI calculated on a cash basis is
useful for investors to understand our operations. Cash basis
NOI is also a non-GAAP measure, which we calculate by excluding from GAAP
basis NOI our straight-line rent adjustments and the amortization of
above/below market lease intangible assets and
liabilities. Accordingly, cash basis NOI should be considered
only as a supplement to net income as a measure of our
performance. Cash basis NOI should not be used as a measure of
our liquidity, nor is it indicative of funds available to fund our cash
needs, including our ability to pay dividends. Cash basis NOI
should not be used as a substitute for cash flow from operating activities
computed in accordance with GAAP.
|
- 10
-
|
Douglas
Emmett, Inc.
|
DEBT
BALANCES
as
of December 31, 2009
(unaudited
and in thousands)
|
|
Maturity
Date(1)
|
Principal
Balance
|
Variable
Rate
|
Effective
Annual Fixed Rate(2)
|
Swap
Maturity Date(1)
|
|||||||||||
|
Variable
Rate Swapped to Fixed Rate:
|
|||||||||||||||
|
Fannie
Mae Loan I(3)
|
06/01/12
|
$ | 293,000 |
DMBS
+ 0.60%
|
4.70 | % |
08/01/11
|
||||||||
|
Fannie
Mae Loan II(3)
|
06/01/12
|
95,080 |
DMBS
+ 0.60%
|
5.78 |
08/01/11
|
||||||||||
|
Modified
Term Loan(4)(5)
|
08/31/12
|
2,300,000 |
LIBOR
+ 0.85%
|
5.13 |
08/01/10
- 08/01/12
|
||||||||||
|
Fannie
Mae Loan III(3)
|
02/01/15
|
36,920 |
DMBS
+ 0.60%
|
5.78 |
08/01/11
|
||||||||||
|
Fannie
Mae Loan IV(3)
|
02/01/15
|
75,000 |
DMBS
+ 0.76%
|
4.86 |
08/01/11
|
||||||||||
|
Term
Loan(6)
|
04/01/15
|
340,000 |
LIBOR
+ 1.50%
|
4.77 |
01/02/13
|
||||||||||
|
Fannie
Mae Loan V(3)
|
02/01/16
|
82,000 |
LIBOR
+ 0.62%
|
5.62 |
03/01/12
|
||||||||||
|
Fannie
Mae Loan VI(3)
|
06/01/17
|
18,000 |
LIBOR
+ 0.62%
|
5.82 |
06/01/12
|
||||||||||
|
Subtotal
|
3,240,000 | 5.10 | % | (2) | |||||||||||
|
Variable
Rate:
|
|||||||||||||||
|
Wells
Fargo Loan(7)
|
03/01/11
|
12,000 |
LIBOR
+ 1.25%
|
-- | -- | ||||||||||
|
Secured
Revolving Credit Facility(8)
|
10/30/11
|
(9) | - |
LIBOR
/ Fed Funds +(10)
|
-- | -- | |||||||||
|
Subtotal
|
12,000 | ||||||||||||||
|
Consolidated
total, net of portion attributable to
noncontrolling
interest in consolidated joint venture
|
3,252,000 | (11) | |||||||||||||
|
Debt
Attributable from Unconsolidated Real Estate Fund:
|
|||||||||||||||
|
Term
Loan(12)
|
08/18/13
|
178,193 |
LIBOR
+ 1.65%
|
5.52 | % |
09/04/12
|
|||||||||
|
Total
consolidated and unconsolidated debt
|
$ | 3,430,193 | |||||||||||||
|
(1)
|
As
of December 31, 2009, the weighted average remaining life of our
consolidated outstanding debt is 3.1 years, and the weighted average
remaining life of the interest rate swaps is 1.4 years.
|
|
(2)
|
Includes
the effect of interest rate contracts. Based on actual/360-day
basis and excludes amortization of loan fees and unused fees on credit
line. The total consolidated effective rate on an
actual/365-day basis is 5.17% at December 31, 2009.
|
|
(3)
|
Secured
by four separate collateralized pools. Fannie Mae Discount
Mortgage-Backed Security (DMBS) has historically tracked 90-day LIBOR,
although volatility may exist between the two rates, resulting in an
immaterial amount of swap ineffectiveness.
|
|
(4)
|
Secured
by seven separate collateralized pools. Requires monthly
payments of interest only, with outstanding principal due upon
maturity.
|
|
(5)
|
Includes
$1.11 billion swapped to 4.89% until August 1, 2010; $545.0 million
swapped to 5.75% until December 1, 2010; $322.5 million swapped to 4.98%
until August 1, 2011; and $322.5 million swapped to 5.02% until August 1,
2012. Each of these rates is based on actual/360-day
basis.
|
|
(6)
|
Secured
by four properties in a collateralized pool. Requires monthly
payments of interest only, with outstanding principal due upon
maturity.
|
|
(7)
|
This
is an $18 million loan held by a consolidated entity in which our
Operating Partnership owns a two-thirds interest.
|
|
(8)
|
This
credit facility is secured by nine properties and has no borrowings
outstanding. We exercised a one-year extension option and
renewed the credit facility for $350 million (reduced from $370 million,
but on the same pricing and otherwise on the same terms and conditions as
prior to the extension). A second one-year extension option
remains available.
|
|
(9)
|
Represents
the current maturity date of October 30, 2010 which we may extend to
October 30, 2011.
|
|
(10)
|
This
revolver bears interest at either LIBOR +0.70% or Fed Funds +0.95% at our
election. If the amount outstanding exceeds
$262.5 million, the credit facility bears interest at either LIBOR
+0.80% or Fed Funds +1.05% at our election.
|
|
(11)
|
Excludes
the unamortized non-cash debt premium of $15,459 which represents the
mark-to-market adjustment recorded on all variable rate debt outstanding
at the time of our IPO.
|
|
(12)
|
This
is a $365 million loan held by an unconsolidated real estate fund in which
our Operating Partnership owns an equity interest. Secured by
six properties in a cross-collateralized pool. Requires monthly
payments of interest only, with outstanding principal due upon
maturity.
|
- 11
-
|
Douglas
Emmett, Inc.
|
PORTFOLIO
DATA
- 12
-
|
Douglas
Emmett, Inc.
|
OFFICE
PORTFOLIO SUMMARY (1)
as
of December 31,
2009
|
|
Number
of Properties
|
Rentable
Square
Feet
(2)
|
Square
Feet as a Percent of Total
|
|||||||
|
West
Los Angeles
|
|||||||||
|
Brentwood
|
13
|
1,390,773
|
10.4
|
%
|
|||||
|
Olympic
Corridor
|
5
|
1,096,081
|
8.2
|
||||||
|
Century
City
|
3
|
915,980
|
6.9
|
||||||
|
Santa
Monica
|
8
|
969,982
|
7.3
|
||||||
|
Beverly
Hills
|
6
|
1,343,649
|
10.1
|
||||||
|
Westwood
|
2
|
396,807
|
3.0
|
||||||
|
San
Fernando Valley
|
|||||||||
|
Sherman
Oaks/Encino
|
11
|
3,181,038
|
23.9
|
||||||
|
Warner
Center/Woodland Hills
|
3
|
2,855,868
|
21.4
|
||||||
|
Tri-Cities
|
|||||||||
|
Burbank
|
1
|
420,949
|
3.1
|
||||||
|
Honolulu
|
3
|
757,904
|
5.7
|
||||||
|
Total
|
55
|
13,329,031
|
100.0
|
%
|
|||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Based
on BOMA 1996 remeasurement. Total consists of 11,876,619 leased
square feet, 1,297,619 available square feet, 76,441 building management
use square feet, and 78,352 square feet of BOMA 1996 adjustment on leased
space.
|
- 13
-
|
Douglas
Emmett, Inc.
|
OFFICE
PORTFOLIO PERCENT LEASED AND IN-PLACE RENTS(1)
as of December 31,
2009
|
|
Percent
Leased(2)
|
Annualized
Rent(3)
|
Annualized
Rent Per Leased Square Foot(4)
|
Monthly
Rent Per Leased Square Foot
|
|||||||||||
|
West
Los Angeles
|
||||||||||||||
|
Brentwood
|
95.4 | % | $ | 51,960,077 | $ | 40.12 | $3.34 | |||||||
|
Olympic
Corridor
|
92.2 | 33,142,369 | 33.69 | 2.81 | ||||||||||
|
Century
City
|
98.5 | 33,392,390 | 37.80 | 3.15 | ||||||||||
|
Santa
Monica (5)
|
93.9 | 46,478,152 | 51.52 | 4.29 | ||||||||||
|
Beverly
Hills
|
88.3 | 45,857,663 | 40.43 | 3.37 | ||||||||||
|
Westwood
|
88.3 | 13,155,233 | 38.04 | 3.17 | ||||||||||
|
San
Fernando Valley
|
||||||||||||||
|
Sherman
Oaks/Encino
|
89.4 | 88,352,032 | 32.06 | 2.67 | ||||||||||
|
Warner
Center/Woodland Hills
|
83.7 | 68,341,194 | 29.21 | 2.43 | ||||||||||
|
Tri-Cities
|
||||||||||||||
|
Burbank
|
100.0 | 14,173,451 | 33.67 | 2.81 | ||||||||||
|
Honolulu
|
90.5 | 22,603,651 | 34.73 | 2.89 | ||||||||||
|
Total
/ Weighted Average
|
90.3 | $ | 417,456,212 | 35.64 | 2.97 | |||||||||
|
Recurring
Capital Expenditures (1)
|
||||||||||||||
|
-
Office (per rentable square foot) for the three months ended December 31,
2009
|
$ | 0.07 | ||||||||||||
|
-
Office (per rentable square foot) for the twelve months ended December 31,
2009
|
$ | 0.23 | ||||||||||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Includes
164,616 square feet with respect to signed leases not yet
commenced.
|
|
(3)
|
Represents
annualized monthly cash base rent under leases commenced as of December
31, 2009 (excluding 164,616 square feet with respect to signed leases not
yet commenced). The amount reflects total cash base rent before
abatements. For our Burbank and Honolulu office properties,
annualized base rent is converted from triple net to gross by adding
expense reimbursements to base rent.
|
|
(4)
|
Represents
annualized rent divided by leased square feet (excluding 164,616 square
feet with respect to signed leases not commenced) as set forth in note (2)
above for the total.
|
|
(5)
|
Includes
$1,287,232 of annualized rent attributable to our corporate headquarters
at our Lincoln/Wilshire property.
|
- 14
-
|
Douglas
Emmett, Inc.
|
MULTIFAMILY
PORTFOLIO SUMMARY
as
of December 31, 2009
|
|
Submarket
|
Number
of Properties
|
Number
of Units
|
Units
as a Percent of Total
|
|||||||||
|
West
Los Angeles
|
||||||||||||
|
Brentwood
|
5
|
950
|
33
|
%
|
||||||||
|
Santa
Monica
|
2
|
820
|
29
|
|||||||||
|
Honolulu
|
2
|
1,098
|
38
|
|||||||||
|
Total
|
9
|
2,868
|
100
|
%
|
||||||||
|
Submarket
|
Percent
Leased
|
Annualized
Rent (1)
|
Monthly
Rent Per Leased Unit
|
|||||||||
|
West
Los Angeles
|
||||||||||||
|
Brentwood
|
98.5
|
%
|
$
|
22,271,447
|
$
|
1,983
|
||||||
|
Santa
Monica(2)
|
99.6
|
20,434,020
|
2,084
|
|||||||||
|
Honolulu
|
98.8
|
17,817,178
|
1,368
|
|||||||||
|
Total
/ Weighted Average
|
99.0
|
$
|
60,522,645
|
1,777
|
||||||||
|
Recurring
Capital Expenditures
|
||||||||||||
|
-
Multifamily (per unit) for the three months ended December 31,
2009
|
$
|
124
|
||||||||||
|
-
Multifamily (per unit) for the twelve months ended December 31,
2009
|
$
|
390
|
||||||||||
|
(1)
|
Represents
annualized monthly multifamily rental income under leases commenced as of
December 31, 2009.
|
|
(2)
|
Excludes
10,013 square feet of ancillary retail space, which generates $300,545 of
annualized rent as of December 31,
2009.
|
- 15
-
|
Douglas
Emmett, Inc.
|
TENANT
DIVERSIFICATION (1)
(1.0%
or Greater of Annualized
Rent)
as
of December 31,
2009
|
|
Number
of
Leases
|
Number
of
Properties
|
Lease
Expiration(2)
|
Total
Leased
Square
Feet
|
Percent
of
Rentable
Square
Feet
|
Annualized
Rent(3)
|
Percent
of
Annualized
Rent
|
||||||||||||||||||||
|
Time
Warner(4)
|
4 | 4 | 2010-2020 | 642,845 | 4.8 | % | $ | 22,268,046 | 5.3 | % | ||||||||||||||||
|
AIG
(Sun America Life Insurance)
|
1 | 1 | 2013 | 182,010 | 1.4 | 5,725,351 | 1.4 | |||||||||||||||||||
|
William
Morris Endeavor
|
2 | 1 | 2019 | 118,612 | 0.9 | 5,602,506 | 1.4 | |||||||||||||||||||
|
Bank
of America(5)
|
13 | 9 | 2010-2018 | 134,561 | 1.0 | 5,462,536 | 1.3 | |||||||||||||||||||
|
The
Macerich Partnership, L.P.
|
1 | 1 | 2018 | 90,832 | 0.7 | 4,316,881 | 1.0 | |||||||||||||||||||
|
Total
|
21 | 16 | 1,168,860 | 8.8 | % | $ | 43,375,320 | 10.4 | % | |||||||||||||||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Expiration
dates are per leases and do not assume exercise of renewal, extension or
termination options. For tenants with multiple leases,
expirations are shown as a range.
|
|
(3)
|
Represents
annualized monthly cash base rent under leases commenced as of December
31, 2009. The amount reflects total cash base rent before
abatements. For our Burbank and Honolulu office properties, annualized
base rent is converted from triple net to gross by adding expense
reimbursements to base rent.
|
|
(4)
|
Includes
a 62,000 square foot lease expiring in June 2010, in which 45,000 square
feet was renewed with a new expiration date in December 2020, a 10,000
square foot lease expiring in October 2013, a 150,000 square foot lease
expiring in April 2016, and a 421,000 square foot lease expiring in
September 2019.
|
|
(5)
|
The
notable leases include a 9,000 square foot lease expiring in September
2010, a 7,000 square foot lease expiring in December 2010, two leases
totaling 19,000 square feet expiring in January 2011, a 2,000 square foot
lease expiring in May 2011, a 16,000 square foot lease expiring in July
2011, a 41,000 square foot lease expiring in January 2012, a 6,000 square
foot lease expiring in May 2012, an 8,000 square foot lease expiring in
July 2013, a 11,000 square foot lease expiring in November 2014, a 4,000
square foot lease expiring in February 2015, and a 12,000 square foot
lease expiring in March 2018; as well as a small ATM
lease.
|
- 16
-
|
Douglas
Emmett, Inc.
|
INDUSTRY
DIVERSIFICATION (1)
as
of December 31, 2009
|
|
Industry
|
Number
of
Leases
|
Annualized
Rent as
a
Percent of Total
|
||||||
|
Legal
|
346
|
16.1
|
%
|
|||||
|
Financial
Services
|
249
|
14.2
|
||||||
|
Entertainment
|
116
|
12.1
|
||||||
|
Real
Estate
|
156
|
9.6
|
||||||
|
Accounting
& Consulting
|
211
|
8.4
|
||||||
|
Health
Services
|
294
|
8.4
|
||||||
|
Insurance
|
86
|
7.9
|
||||||
|
Retail
|
158
|
6.9
|
||||||
|
Technology
|
66
|
3.8
|
||||||
|
Advertising
|
53
|
3.3
|
||||||
|
Public
Administration
|
31
|
1.8
|
||||||
|
Educational
Services
|
10
|
0.8
|
||||||
|
Other
|
257
|
6.7
|
||||||
|
Total
|
2,033
|
100.0
|
%
|
|||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
- 17
-
|
Douglas
Emmett, Inc.
|
LEASE
DISTRIBUTION (1)
as
of December 31,
2009
|
|
Number
of Leases
|
Leases
as a Percent of Total
|
Rentable
Square
Feet (2)
|
Square
Feet
as
a Percent
of
Total
|
Annualized
Rent(3)
|
Annualized
Rent as a Percent of Total
|
|||||||||||||
|
2,500
or less
|
1,025
|
50.4
|
% |
1,398,794
|
10.5
|
% | $ |
52,610,286
|
12.6
|
% | ||||||||
|
2,501-10,000
|
732
|
36.0
|
3,594,016
|
27.0
|
129,824,645
|
31.1
|
||||||||||||
|
10,001-20,000
|
185
|
9.1
|
2,583,271
|
19.4
|
91,080,131
|
21.8
|
||||||||||||
|
20,001-40,000
|
62
|
3.1
|
1,698,422
|
12.7
|
59,558,274
|
14.3
|
||||||||||||
|
40,001-100,000
|
23
|
1.1
|
1,324,010
|
9.9
|
47,821,433
|
11.4
|
||||||||||||
|
Greater
than 100,000
|
6
|
0.3
|
1,113,490
|
8.4
|
36,561,443
|
8.8
|
||||||||||||
|
Subtotal
|
2,033
|
100.0
|
% |
11,712,003
|
(5)
|
87.9
|
% |
417,456,212
|
100.0
|
% | ||||||||
|
Available
|
-
|
-
|
1,297,619
|
9.7
|
-
|
-
|
||||||||||||
|
BOMA
Adjustment(4)
|
-
|
-
|
78,352
|
0.6
|
-
|
-
|
||||||||||||
|
Building
Management Use
|
-
|
-
|
76,441
|
0.6
|
-
|
-
|
||||||||||||
|
Signed
leases not commenced
|
-
|
-
|
164,616
|
1.2
|
-
|
-
|
||||||||||||
|
Total
|
2,033
|
100.0
|
% |
13,329,031
|
100.0
|
% | $ |
417,456,212
|
100.0
|
% | ||||||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Based
on BOMA 1996 remeasurement. Total consists of 11,876,619 leased square
feet (includes 164,616 square feet with respect to signed leases not
commenced), 1,297,619 available square feet, 76,441 building management
use square feet, and 78,352 square feet of BOMA 1996 adjustment on leased
space.
|
|
(3)
|
Represents
annualized monthly cash base rent (i.e., excludes tenant reimbursements,
parking and other revenue) under leases commenced as of December 31, 2009
(does not include 164,616 square feet with respect to signed leases not
yet commenced). The amount reflects total cash base rent before
abatements. For our Burbank and Honolulu office properties, annualized
base rent is converted from triple net to gross by adding expense
reimbursements to base rent.
|
|
(4)
|
Represents
square footage adjustments for leases that do not reflect BOMA 1996
remeasurement.
|
|
(5)
|
Average
tenant size is approximately 5,800 square feet. Median is approximately
2,500 square feet.
|
- 18
-
|
Douglas
Emmett, Inc.
|
LEASE
EXPIRATIONS (1)
as
of December 31,
2009
|
|
Year
of Lease Expiration
|
Number
of
Leases
Expiring
|
Rentable
Square
Feet(2)
|
Expiring
Square
Feet
as
a Percent
of
Total
|
Annualized
Rent(3)
|
Annualized
Rent
as a
Percent
of
Total
|
Annualized
Rent
Per
Leased
Square
Foot(4)
|
Annualized
Rent
Per
Leased
Square
Foot
at
Expiration(5)
|
|||||||||||||||||||||
|
Available
|
- | 1,297,619 | 9.7 | % | $ | - | - | % | $ | - | $ | - | ||||||||||||||||
|
2010
|
483 | 1,774,512 | 13.3 | 60,446,979 | 14.5 | 34.06 | 34.21 | |||||||||||||||||||||
|
2011
|
406 | 1,800,868 | 13.5 | 64,456,966 | 15.4 | 35.79 | 37.09 | |||||||||||||||||||||
|
2012
|
358 | 1,640,184 | 12.3 | 56,872,102 | 13.6 | 34.67 | 37.41 | |||||||||||||||||||||
|
2013
|
282 | 1,628,909 | 12.2 | 62,113,532 | 14.9 | 38.13 | 42.43 | |||||||||||||||||||||
|
2014
|
228 | 1,386,478 | 10.4 | 47,674,973 | 11.4 | 34.39 | 39.69 | |||||||||||||||||||||
|
2015
|
116 | 905,925 | 6.8 | 30,822,879 | 7.4 | 34.02 | 40.02 | |||||||||||||||||||||
|
2016
|
50 | 728,902 | 5.5 | 24,405,885 | 5.9 | 33.48 | 39.56 | |||||||||||||||||||||
|
2017
|
34 | 381,771 | 2.9 | 13,522,893 | 3.2 | 35.42 | 46.30 | |||||||||||||||||||||
|
2018
|
31 | 335,968 | 2.5 | 15,759,298 | 3.8 | 46.91 | 62.66 | |||||||||||||||||||||
|
2019
|
30 | 821,232 | 6.2 | 29,737,527 | 7.1 | 36.21 | 45.13 | |||||||||||||||||||||
|
2020
|
10 | 158,347 | 1.2 | 6,299,478 | 1.5 | 39.78 | 48.51 | |||||||||||||||||||||
|
Thereafter
|
5 | 148,907 | 1.1 | 5,343,700 | 1.3 | 35.89 | 51.79 | |||||||||||||||||||||
|
BOMA
Adjustment(6)
|
- | 78,352 | 0.6 | - | - | - | - | |||||||||||||||||||||
|
Building
Management Use
|
- | 76,441 | 0.6 | - | - | - | - | |||||||||||||||||||||
|
Signed
leases not commenced
|
- | 164,616 | 1.2 | - | - | - | - | |||||||||||||||||||||
|
Total/Weighted
Average
|
2,033 | 13,329,031 | 100.0 | % | $ | 417,456,212 | 100.0 | % | $ | 35.64 | $ | 40.07 | ||||||||||||||||
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Based
on BOMA 1996 remeasurement. Total consists of 11,876,619 leased square
feet (includes 164,616 square feet with respect to signed leases not
commenced), 1,297,619 available square feet, 76,441 building management
use square feet, and 78,352 square feet of BOMA 1996 adjustment on leased
space.
|
|
(3)
|
Represents
annualized monthly base rent under leases commenced as of December 31,
2009. The amount reflects total base rent before
abatements.
|
|
(4)
|
Represents
annualized base rent divided by leased square feet.
|
|
(5)
|
Represents
annualized base rent at expiration divided by leased square
feet.
|
|
(6)
|
Represents
the square footage adjustments for leases that do not reflect BOMA 1996
remeasurement.
|
- 19
-
|
Douglas
Emmett, Inc.
|
QUARTERLY
LEASE EXPIRATIONS – NEXT FOUR QUARTERS (1)
as
of December 31,
2009
|
|
Submarket
|
Q1 2010 | Q2 2010 | Q3 2010 | Q4 2010 | |||||||||||||
|
West
Los Angeles
|
|||||||||||||||||
|
Brentwood
|
Expiring SF | 41,017 | 39,702 | 36,494 | 84,181 | ||||||||||||
|
Rent
per SF(2)
|
$ | 37.49 | $ | 38.18 | $ | 36.58 | $ | 41.89 | |||||||||
|
Olympic
Corridor
|
Expiring SF | 55,794 | 32,927 | 75,113 | 48,535 | ||||||||||||
|
Rent
per SF(2)
|
$ | 30.67 | $ | 32.35 | $ | 31.03 | $ | 29.42 | |||||||||
|
Century
City
|
Expiring SF | 45,739 | 14,739 | 29,116 | 98,936 | ||||||||||||
|
Rent
per SF(2)
|
$ | 38.03 | $ | 32.83 | $ | 39.16 | $ | 41.75 | |||||||||
|
Santa
Monica
|
Expiring SF | 12,220 | 66,975 | 37,074 | 34,796 | ||||||||||||
|
Rent
per SF(2)
|
$ | 49.89 | $ | 36.95 | $ | 44.09 | $ | 56.82 | |||||||||
|
Beverly
Hills
|
Expiring SF | 82,986 | 37,141 | 47,666 | 21,715 | ||||||||||||
|
Rent
per SF(2)
|
$ | 30.69 | $ | 39.99 | $ | 39.32 | $ | 37.17 | |||||||||
|
Westwood
|
Expiring SF | 6,084 | 19,652 | 31,408 | 41,518 | ||||||||||||
|
Rent
per SF(2)
|
$ | 34.91 | $ | 36.93 | $ | 35.83 | $ | 36.59 | |||||||||
|
San
Fernando Valley
|
|||||||||||||||||
|
Sherman
Oaks/Encino
|
Expiring SF | 96,390 | 56,198 | 75,199 | 100,021 | ||||||||||||
|
Rent
per SF(2)
|
$ | 30.20 | $ | 30.82 | $ | 30.21 | $ | 30.51 | |||||||||
|
Warner
Center/Woodland Hills
|
Expiring SF | 91,949 | 58,525 | 133,766 | 46,538 | ||||||||||||
|
Rent
per SF(2)
|
$ | 26.78 | $ | 29.20 | $ | 30.42 | $ | 24.29 | |||||||||
|
Tri-Cities
|
|||||||||||||||||
|
Burbank
|
Expiring SF | - | - | - | - | ||||||||||||
|
Rent
per SF(2)
|
- | - | - | - | |||||||||||||
|
Honolulu
|
Expiring SF | 21,738 | 23,365 | 16,901 | 12,394 | ||||||||||||
|
Rent
per SF(2)
|
$ | 32.25 | $ | 33.66 | $ | 31.61 | $ | 32.70 | |||||||||
|
Total
|
Expiring SF | 453,917 |
(3)
|
349,224 |
(4)
|
482,737 |
(5)
|
488,634 |
(6)
|
||||||||
|
Rent
per SF(2)
|
$ | 31.79 | $ | 34.30 | $ | 33.80 | $ | 36.79 |
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Represents
annualized base rent (i.e., excludes tenant reimbursements, parking and
other revenue) per leased square foot at expiration. The amount reflects
total cash base rent before abatements. For our Burbank and Honolulu
office properties, annualized base rent is converted from triple net to
gross by adding expense reimbursements to base rent.
|
|
(3)
|
As
of December 31, 2009, 170,223 rentable square feet had been renewed for
leases that were previously scheduled to expire in the quarter ending
March 31, 2010.
|
|
(4)
|
As
of December 31, 2009, 158,969 rentable square feet had been renewed for
leases that were previously scheduled to expire in the quarter ending June
30, 2010.
|
|
(5)
|
As
of December 31, 2009, 11,724 rentable square feet had been renewed for
leases that were previously scheduled to expire in the quarter ending
September 30, 2010.
|
|
(6)
|
As
of December 31, 2009, 67,413 rentable square feet had been renewed for
leases that were previously scheduled to expire in the quarter ending
December 31, 2010.
|
- 20
-
|
Douglas
Emmett, Inc.
|
OFFICE
PORTFOLIO LEASING ACTIVITY (1)
for
the three months ended December 31,
2009
|
|
Total
Gross Leasing Activity
|
|||||
|
Rentable
square feet
|
715,349
|
||||
|
Number
of leases
|
157
|
||||
|
Gross
New Leasing Activity
|
|||||
|
Rentable
square feet
|
191,851
|
||||
|
Number
of leases
|
58
|
||||
|
Gross
Renewal Leasing Activity
|
|||||
|
Rentable
square feet
|
523,498
|
||||
|
Number
of leases
|
99
|
||||
|
Net
Absorption
|
|||||
|
Leased
rentable square feet
|
(16,170)
|
||||
|
Cash
Rent Growth (2)
|
|||||
|
Expiring
Rate
|
$34.42
|
||||
|
New/Renewal
Rate
|
$31.63
|
||||
|
Change
|
(8.1%)
|
||||
|
Straight-Line
Rent Growth (3)
|
|||||
|
Expiring
Rate
|
$32.48
|
||||
|
New/Renewal
Rate
|
$33.82
|
||||
|
Change
|
4.1%
|
||||
|
Weighted
Average Lease Terms
|
|||||
|
New
(in months)
|
68
|
||||
|
Renewal
(in months)
|
66
|
||||
| Total Lease | Annual Lease | ||||
| Transaction | Transaction | ||||
|
Tenant Improvement and Leasing
Commissions (4)
|
Costs | Costs | |||
|
New
leases
|
$ |
21.05
|
$ |
3.73
|
|
|
Renewal
leases
|
$ |
16.66
|
$ |
3.02
|
|
|
Blended
|
$ |
17.84
|
$ |
3.21
|
|
|
(1)
|
All
properties are 100% owned except Honolulu Club (78,000 square feet) owned
by a joint venture in which we own a 66.7% interest and 6 properties
totaling 1.4 million square feet owned by an unconsolidated real estate
fund.
|
|
(2)
|
Represents
the difference between initial stabilized cash rents on new and renewal
leases as compared to the expiring cash rents on the same
space.
|
|
(3)
|
Represents
a comparison between straight-line rent on expiring leases and the
straight-line rent for new and renewal leases on the same
space.
|
|
(4)
|
Per
rentable square foot. Represents weighted average lease transaction costs
based on the leases executed in the current quarter in our properties,
including repositioned
properties.
|
- 21
-