Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - Paramount Group, Inc. | d884850dex991.htm |
| 8-K - FORM 8-K - Paramount Group, Inc. | d884850d8k.htm |
Exhibit 99.2
PARAMOUNT
GROUP, INC.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED DECEMBER 31, 2014
SAFE HARBOR
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
- 2 -
TABLE OF CONTENTS
| Page | ||||
| Company Profile |
4 | |||
| Research Coverage |
5 | |||
| Selected Financial Information |
||||
| Financial Highlights |
6 | |||
| Consolidated Balance Sheet |
7 | |||
| Consolidated Statement of Income |
8 | |||
| Funds From Operations (“FFO”) |
9 | |||
| Funds Available for Distribution (“FAD”) |
10 | |||
| Net Operating Income (“NOI”) |
11 | |||
| Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) |
12 | |||
| Capital Structure |
13 | |||
| Debt Analysis |
14 | |||
| Debt Maturities |
15 | |||
| Selected Property Data |
| |||
| Portfolio Summary |
16 | |||
| Top Tenants and Industry Diversification |
17 | |||
| Leasing Activity |
18 | |||
| Lease Expirations |
19 | |||
| Capital Expenditures - Cash Basis |
20 | |||
| Definitions |
21 | |||
- 3 -
COMPANY PROFILE
Paramount Group, Inc., (“Paramount”) is a fully-integrated real estate investment trust that owns, operates and manages high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
| EXECUTIVE MANAGEMENT | ||||||
| Albert Behler | Chairman, Chief Executive Officer and President | |||||
| David Spence | Executive Vice President, Chief Financial Officer and Treasurer | |||||
| Jolanta Bott | Executive Vice President, Operations and Human Resources | |||||
| Theodore Koltis | Executive Vice President, Leasing | |||||
| Daniel Lauer | Executive Vice President, Chief Investment Officer | |||||
| Ralph DiRuggiero | Senior Vice President, Property Management | |||||
| Gage Johnson | Senior Vice President, General Counsel and Secretary | |||||
| Vito Messina | Senior Vice President, Asset Management | |||||
| Wilbur Paes | Senior Vice President, Chief Accounting Officer | |||||
| BOARD OF DIRECTORS | ||||||
| Thomas Armbrust | Director | |||||
| Dan Emmett | Director, Chair of Audit Committee | |||||
| Lizanne Galbreath | Director, Chair of Compensation Committee | |||||
| Peter Linneman | Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director | |||||
| David O’Connor | Director | |||||
| Katharina Otto-Bernstein | Director | |||||
| COMPANY INFORMATION | ||||||
| Corporate Headquarters | Investor Relations | Stock Exchange Listing | Trading Symbol | |||
| 1633 Broadway, Suite 1801 | IR@paramount-group.com | New York Stock Exchange | PGRE | |||
| New York, NY 10019 | (212) 492-2298 | |||||
| (212) 237-3100 | ||||||
- 4 -
RESEARCH COVERAGE
| James Feldman | Vin Chao | Steve Sakwa | ||||
| Bank of America Merrill Lynch | Deutsche Bank | Evercore ISI | ||||
| (646) 855-5808 | (212) 250-6799 | (212) 446-9462 | ||||
| Brad Burke | Jed Reagan | Vance Edelson | ||||
| Goldman Sachs | Green Street Advisors | Morgan Stanley | ||||
| (917) 343-2082 | (949) 640-8780 | (212) 761-0078 | ||||
| Ross Nussbaum | Brendan Maiorana | |||||
| UBS | Wells Fargo | |||||
| (212) 713-2484 | (443) 263-6516 | |||||
- 5 -
FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except square feet and per share data)
| Period from November 24, 2014 through December 31, 2014 |
||||
| SELECTED ITEMS |
||||
| Total revenues |
$ | 66,135 | ||
| Pro rata share of NOI |
$ | 36,330 | ||
| Pro rata share of Cash NOI |
$ | 31,821 | ||
| Net income attributable to Paramount Group, Inc. |
$ | 57,308 | ||
| Per share: |
||||
| Basic |
$ | 0.27 | ||
| Diluted |
$ | 0.27 | ||
| FFO attributable to Paramount Group, Inc. |
$ | 82,425 | ||
| Per share - diluted |
$ | 0.39 | ||
| Core FFO attributable to Paramount Group, Inc. |
$ | 16,100 | ||
| Per share - diluted |
$ | 0.08 | ||
| FAD attributable to Paramount Group, Inc. |
$ | 7,561 | ||
COMMON SHARE DATA
Share Price (November 24, 2014 through December 31, 2014)
| High |
$ | 19.68 | ||
| Low |
$ | 17.65 | ||
| Closing (end of period) |
$ | 18.59 | ||
| Outstanding shares (end of period) |
212,106,718 | |||
| Market value of outstanding shares |
$ | 3.9 billion |
PORTFOLIO STATISTICS
| Number of Properties |
Square Feet |
% Leased at December 31, 2014 |
||||||||||
| Region: |
||||||||||||
| New York |
6 | 7,152,207 | 94.4 | % | ||||||||
| Washington, D.C. |
5 | 1,602,655 | 88.8 | % | ||||||||
| San Francisco |
1 | 1,611,125 | 96.8 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| 12 | 10,365,987 | 93.9 | % | |||||||||
|
|
|
|
|
|
|
|||||||
- 6 -
CONSOLIDATED BALANCE SHEET
(unaudited and in thousands)
| December 31, 2014 | ||||
| ASSETS: |
||||
| Rental Property |
||||
| Land |
$ | 2,094,461 | ||
| Buildings and improvements |
5,435,778 | |||
|
|
|
|||
| 7,530,239 | ||||
| Accumulated depreciation and amortization |
(81,050 | ) | ||
|
|
|
|||
| Rental Property, net |
7,449,189 | |||
| Real estate fund investments |
323,387 | |||
| Investments in partially owned entities |
5,749 | |||
| Cash and cash equivalents |
438,599 | |||
| Restricted cash |
55,728 | |||
| Marketable securities |
20,159 | |||
| Deferred rent receivable |
8,267 | |||
| Accounts and other receivables, net |
7,692 | |||
| Deferred charges, net |
39,165 | |||
| Intangible assets, net |
669,385 | |||
| Other assets |
13,121 | |||
|
|
|
|||
| Total Assets |
$ | 9,030,441 | ||
|
|
|
|||
| LIABILITIES: |
||||
| Mortgages and notes payable |
$ | 2,852,287 | ||
| Credit facility |
— | |||
| Due to affiliates |
27,299 | |||
| Loans payable to noncontrolling interests |
42,195 | |||
| Accounts payable and accrued expenses |
93,472 | |||
| Deferred income taxes |
2,861 | |||
| Interest rate swap liabilities |
194,196 | |||
| Intangible liabilities, net |
219,228 | |||
| Other liabilities |
43,950 | |||
|
|
|
|||
| Total Liabilities |
3,475,488 | |||
| EQUITY: |
||||
| Paramount Group, Inc. stockholders’ equity |
3,910,862 | |||
| Noncontrolling interests in joint ventures and funds |
685,888 | |||
| Noncontrolling interests in Operating Partnership |
958,203 | |||
|
|
|
|||
| Total Equity |
5,554,953 | |||
|
|
|
|||
| TOTAL LIABILITIES AND EQUITY |
$ | 9,030,441 | ||
|
|
|
|||
- 7 -
CONSOLIDATED STATEMENT OF INCOME
(unaudited and in thousands, except share and per share data)
| Period from November 24, 2014 through December 31, 2014 |
||||
| REVENUES: |
||||
| Property rentals |
$ | 51,345 | ||
| Straight-line rent adjustments |
5,653 | |||
| Amortization of below-market leases, net |
467 | |||
|
|
|
|||
| Rental income |
57,465 | |||
| Tenant reimbursement income |
5,865 | |||
| Fee income |
1,176 | |||
| Other income |
1,629 | |||
|
|
|
|||
| Total revenues |
66,135 | |||
| EXPENSES: |
||||
| Operating |
26,011 | |||
| Depreciation and amortization |
34,481 | |||
| General and administrative |
2,207 | |||
|
|
|
|||
| Total expenses |
62,699 | |||
| Operating income |
3,436 | |||
| Income from real estate fund investments |
1,412 | |||
| Income from partially owned entities |
938 | |||
| Unrealized gains on interest rate swaps |
15,084 | |||
| Interest and other income (loss), net |
(179 | ) | ||
| Interest and debt expense |
(43,743 | ) | ||
| Acquisition, transaction and formation related costs |
(143,437 | ) | ||
| Gain on consolidation of a partially owned entity |
239,716 | |||
|
|
|
|||
| Net income before income taxes |
73,227 | |||
| Income tax expense |
(505 | ) | ||
|
|
|
|||
| Net income |
72,722 | |||
| Less net income attributable to noncontrolling interests in: |
||||
| Consolidated joint ventures and funds |
(1,488 | ) | ||
| Operating Partnership |
(13,926 | ) | ||
|
|
|
|||
| Net income attributable to Paramount Group, Inc. |
$ | 57,308 | ||
|
|
|
|||
| Weighted average common shares outstanding |
||||
| Basic |
212,106,718 | |||
|
|
|
|||
| Diluted |
212,107,908 | |||
|
|
|
|||
| Net income per share attributable to Paramount Group, Inc. |
||||
| Basic |
$ | 0.27 | ||
|
|
|
|||
| Diluted |
$ | 0.27 | ||
|
|
|
|||
- 8 -
FUNDS FROM OPERATIONS (“FFO”)
(unaudited and in thousands, except share and per share data)
| Period from November 24, 2014 through December 31, 2014 |
||||
| Reconciliation of net income to FFO: |
||||
| Net income |
$ | 72,722 | ||
| Real estate depreciation and amortization |
34,481 | |||
| Pro rata share of real estate depreciation and amortization of partially owned entities |
605 | |||
|
|
|
|||
| FFO (1) |
107,808 | |||
| Less FFO attributable to noncontrolling interests in: |
||||
| Consolidated joint ventures and funds |
(5,353 | ) | ||
| Operating Partnership |
(20,030 | ) | ||
|
|
|
|||
| FFO attributable to Paramount Group, Inc. (1) |
$ | 82,425 | ||
|
|
|
|||
| Per diluted share |
$ | 0.39 | ||
|
|
|
|||
| Reconciliation of FFO to Core FFO: |
||||
| FFO |
$ | 107,808 | ||
| Non-core (income) expense: |
||||
| Acquisition, transaction and formation related costs |
143,437 | |||
| Defeasance and debt breakage costs |
25,717 | |||
| Unrealized gains on interest rate swaps |
(15,084 | ) | ||
| Pro rata share of unrealized gains on interest rate swaps of partially owned entities |
(643 | ) | ||
| Gain on consolidation of a partially owned entity |
(239,716 | ) | ||
|
|
|
|||
| Core FFO (1) |
21,519 | |||
| Less Core FFO attributable to noncontrolling interests in: |
||||
| Consolidated joint ventures and funds |
(1,506 | ) | ||
| Operating Partnership |
(3,913 | ) | ||
|
|
|
|||
| Core FFO attributable to Paramount Group, Inc. (1) |
$ | 16,100 | ||
|
|
|
|||
| Per diluted share |
$ | 0.08 | ||
|
|
|
|||
| Reconciliation of weighted average shares outstanding: |
||||
| Weighted average shares outstanding |
212,106,718 | |||
| Effect of dilutive securities |
1,190 | |||
|
|
|
|||
| Denominator for FFO per diluted share |
212,107,908 | |||
|
|
|
|||
| (1) | See page 21 for our definition of this measure. |
- 9 -
FUNDS AVAILABLE FOR DISTRIBUTION (“FAD”)
(unaudited and in thousands)
| Period from November 24, 2014 through December 31, 2014 |
||||
| Reconciliation of Core FFO to FAD |
||||
| Core FFO |
$ | 21,519 | ||
| Add: |
||||
| Amortization of non-cash compensation expense |
391 | |||
| Amortization of deferred financing costs |
240 | |||
| Less: |
||||
| Recurring tenant improvements, leasing commissions and other capital expenditures |
(7,315 | ) | ||
| Straight-line rent adjustments |
(5,660 | ) | ||
| Amortization of below-market leases, net |
(467 | ) | ||
|
|
|
|||
| FAD (1) |
8,708 | |||
| Less FAD attributable to noncontrolling interests in: |
||||
| Consolidated joint ventures and funds |
690 | |||
| Operating Partnership |
(1,837 | ) | ||
|
|
|
|||
| FAD attributable to Paramount Group, Inc. (1) |
$ | 7,561 | ||
|
|
|
|||
| (1) | See page 21 for our definition of this measure. |
- 10 -
NET OPERATING INCOME (“NOI”)
(unaudited and in thousands)
| Period from November 24, 2014 through December 31, 2014 |
||||
| Reconciliation of net income to NOI: |
||||
| Net income |
$ | 72,722 | ||
| Add: |
||||
| Depreciation and amortization |
34,481 | |||
| General and administrative expenses |
2,207 | |||
| Interest and debt expense |
43,743 | |||
| Acquisition, transaction and formation related costs |
143,437 | |||
| Income tax expense |
505 | |||
| NOI from partially owned entities |
1,680 | |||
| Less: |
||||
| Income from partially owned entities |
(938 | ) | ||
| Fee income |
(1,176 | ) | ||
| Unrealized gains on interest rate swaps |
(15,084 | ) | ||
| Interest and other (income) loss, net |
179 | |||
| Gain on consolidation of a partially owned entity |
(239,716 | ) | ||
|
|
|
|||
| NOI (1) |
42,040 | |||
| Less NOI attributable to noncontrolling interests in consolidated joint ventures and funds |
(5,710 | ) | ||
|
|
|
|||
| Pro rata share of NOI (1) |
$ | 36,330 | ||
|
|
|
|||
| Reconciliation of NOI to Cash NOI: |
||||
| NOI |
$ | 42,040 | ||
| Less: |
||||
| Straight-line rent adjustments |
(5,660 | ) | ||
| Amortization of below-market leases, net |
(467 | ) | ||
|
|
|
|||
| Cash NOI (1) |
35,913 | |||
| Less Cash NOI attributable to noncontrolling interests in consolidated joint ventures and funds |
(4,092 | ) | ||
|
|
|
|||
| Pro rata share of Cash NOI (1) |
$ | 31,821 | ||
|
|
|
|||
| (1) | See page 21 for our definition of this measure. |
- 11 -
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (“EBITDA”)
(unaudited and in thousands)
| Period from November 24, 2014 through December 31, 2014 |
||||
| Reconciliation of net income to EBITDA: |
||||
| Net income |
$ | 72,722 | ||
| Add: |
||||
| Depreciation and amortization |
34,481 | |||
| Interest and debt expense |
43,743 | |||
| Income tax expense |
505 | |||
| Pro rata share of above adjustments of partially owned entities |
1,374 | |||
|
|
|
|||
| EBITDA (1) |
152,825 | |||
| Less EBITDA attributable to noncontrolling interests in consolidated joint ventures and funds |
(9,554 | ) | ||
|
|
|
|||
| Pro rata share of EBITDA (1) |
$ | 143,271 | ||
|
|
|
|||
| Reconciliation of EBITDA to Adjusted EBITDA: |
||||
| EBITDA |
$ | 152,825 | ||
| Add: |
||||
| Acquisition, transaction and formation related costs |
143,437 | |||
| Less: |
||||
| Unrealized gains on interest rate swaps |
(15,084 | ) | ||
| Pro rata share of unrealized gains on interest rate swaps of partially owned entities |
(643 | ) | ||
| Gain on consolidation of a partially owned entity |
(239,716 | ) | ||
|
|
|
|||
| Adjusted EBITDA (1) |
40,819 | |||
| Less Adjusted EBITDA attributable to noncontrolling interests in consolidated joint ventures and funds |
(5,708 | ) | ||
|
|
|
|||
| Pro rata share of Adjusted EBITDA (1) |
$ | 35,111 | ||
|
|
|
|||
| (1) | See page 21 for our definition of this measure. |
- 12 -
CAPITAL STRUCTURE
(unaudited and in thousands, except share and per share data)
| December 31, 2014 | ||||
| Debt: |
||||
| Consolidated debt: |
||||
| Mortgages and notes payable |
$ | 2,852,287 | ||
| $1.0 billion credit facility |
— | |||
|
|
|
|||
| 2,852,287 | ||||
| Less: |
||||
| Noncontrolling interests’ share of consolidated debt (One Market Plaza and 31 West 52nd Street) |
(583,422 | ) | ||
| Add: |
||||
| Pro rata share of unconsolidated joint venture debt (712 Fifth Avenue) |
123,250 | |||
|
|
|
|||
| Total debt |
2,392,115 | |||
|
|
|
|||
| Shares / Units | Share Price at | |||||||||||
| Outstanding | December 31, 2014 | |||||||||||
| Equity: |
||||||||||||
| Common stock |
212,106,718 | $ | 18.59 | 3,943,064 | ||||||||
| Operating Partnership units |
51,543,993 | 18.59 | 958,203 | |||||||||
|
|
|
|
|
|||||||||
| 263,650,711 | 18.59 | 4,901,267 | ||||||||||
|
|
|
|
|
|||||||||
| Total Capitalization |
$ | 7,293,382 | ||||||||||
|
|
|
|||||||||||
- 13 -
DEBT ANALYSIS
(unaudited and in thousands)
| Total Debt | Fixed Rate Debt | Variable Rate Debt | ||||||||||||||||||||||
| Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
| Consolidated Debt: |
||||||||||||||||||||||||
| 1633 Broadway |
$ | 926,260 | 5.26 | % | $ | 772,100 | 6.02 | % | $ | 154,160 | 1.44 | % | ||||||||||||
| 31 West 52nd Street |
413,490 | 4.99 | % | 337,500 | 5.74 | % | 75,990 | 1.64 | % | |||||||||||||||
| 900 Third Avenue |
274,337 | 5.08 | % | 255,000 | 5.35 | % | 19,337 | 1.51 | % | |||||||||||||||
| Waterview |
210,000 | 5.76 | % | 210,000 | 5.76 | % | — | — | ||||||||||||||||
| 1899 Pennsylvania Avenue |
90,489 | 4.88 | % | 90,489 | 4.88 | % | — | — | ||||||||||||||||
| Liberty Place |
84,000 | 4.50 | % | 84,000 | 4.50 | % | — | — | ||||||||||||||||
| One Market Plaza |
853,711 | 6.14 | % | 840,000 | 6.16 | % | 13,711 | 5.00 | % | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Total consolidated debt |
2,852,287 | 5.47 | % | 2,589,089 | 5.85 | % | 263,198 | 1.69 | % | |||||||||||||||
| Noncontrolling interests’ share |
(583,422 | ) | (549,225 | ) | (34,197 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Pro rata share of consolidated debt |
$ | 2,268,865 | 5.37 | % | $ | 2,039,864 | 5.80 | % | $ | 229,001 | 1.59 | % | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Unconsolidated Joint Venture Debt: |
||||||||||||||||||||||||
| 712 Fifth Avenue |
$ | 246,500 | 5.39 | % | $ | 225,000 | 5.65 | % | $ | 21,500 | 2.71 | % | ||||||||||||
| Joint venture partners’ share |
(123,250 | ) | (112,500 | ) | (10,750 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Pro rata share of unconsolidated debt |
$ | 123,250 | 5.39 | % | $ | 112,500 | 5.65 | % | $ | 10,750 | 2.71 | % | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Pro Rata Share of Total Debt |
$ | 2,392,115 | 5.37 | % | $ | 2,152,364 | 5.79 | % | $ | 239,751 | 1.64 | % | ||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
- 14 -
DEBT MATURITIES
(unaudited and in thousands)
| Consolidated Fixed Rate Debt: | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||
| 1633 Broadway |
$ | — | $ | 772,100 | $ | — | $ | — | $ | — | $ | — | $ | 772,100 | ||||||||||||||
| 31 West 52nd Street |
— | — | 337,500 | — | — | — | 337,500 | |||||||||||||||||||||
| 900 Third Avenue |
— | — | 255,000 | — | — | — | 255,000 | |||||||||||||||||||||
| Waterview |
— | — | 210,000 | — | — | — | 210,000 | |||||||||||||||||||||
| 1899 Pennsylvania Avenue |
— | — | — | — | — | 90,489 | 90,489 | |||||||||||||||||||||
| Liberty Place |
— | — | — | 84,000 | — | — | 84,000 | |||||||||||||||||||||
| One Market Plaza |
— | — | — | — | 840,000 | — | 840,000 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total consolidated fixed rate debt |
$ | — | $ | 772,100 | $ | 802,500 | $ | 84,000 | $ | 840,000 | $ | 90,489 | $ | 2,589,089 | ||||||||||||||
| Weighted average rate |
— | 6.02 | % | 5.62 | % | 4.50 | % | 6.16 | % | 4.88 | % | 5.85 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Consolidated Variable Rate Debt: |
||||||||||||||||||||||||||||
| 1633 Broadway |
$ | — | $ | 154,160 | $ | — | $ | — | $ | — | $ | — | $ | 154,160 | ||||||||||||||
| 31 West 52nd Street |
— | — | 75,990 | — | — | — | 75,990 | |||||||||||||||||||||
| 900 Third Avenue |
— | — | 19,337 | — | — | — | 19,337 | |||||||||||||||||||||
| One Market Plaza |
— | — | — | — | 13,711 | — | 13,711 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total consolidated variable rate debt |
$ | — | $ | 154,160 | $ | 95,327 | $ | — | $ | 13,711 | $ | — | $ | 263,198 | ||||||||||||||
| Weighted average rate |
— | 1.44 | % | 1.61 | % | — | 5.00 | % | — | 1.69 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Consolidated Debt |
$ | — | $ | 926,260 | $ | 897,827 | $ | 84,000 | $ | 853,711 | $ | 90,489 | $ | 2,852,287 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Weighted Average Rate |
— | 5.26 | % | 5.20 | % | 4.50 | % | 6.14 | % | 4.88 | % | 5.47 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| % of Debt Maturing |
— | 32.5 | % | 31.5 | % | 2.9 | % | 29.9 | % | 3.2 | % | 100.0 | % | |||||||||||||||
|
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|
|
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|
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|
|
|||||||||||||||
- 15 -
PORTFOLIO SUMMARY
(unaudited)
| Submarket |
% Ownership |
Square Feet (1) |
% Leased |
Annualized Rent (2) | ||||||||||||||||||
| Property |
Amount | Per Square Foot (3) | ||||||||||||||||||||
| New York: |
||||||||||||||||||||||
| 1633 Broadway |
West Side | 100.0 | % | 2,643,065 | 97.7 | % | $ | 155,623,000 | $ | 69.68 | ||||||||||||
| 1301 Avenue of the Americas |
Sixth Ave / Rock Center | 100.0 | % | 1,767,992 | 85.4 | % | 105,820,000 | 74.24 | ||||||||||||||
| 1325 Avenue of the Americas |
Sixth Ave / Rock Center | 100.0 | % | 814,892 | 94.6 | % | 48,162,000 | 65.96 | ||||||||||||||
| 31 West 52nd Street |
Sixth Ave / Rock Center | 64.2 | % | 786,647 | 100.0 | % | 57,372,000 | 75.98 | ||||||||||||||
| 900 Third Avenue |
East Side | 100.0 | % | 596,270 | 94.9 | % | 40,808,000 | 73.14 | ||||||||||||||
| 712 Fifth Avenue |
Madison/Fifth | 50.0 | % | 543,341 | 99.0 | % | 55,266,000 | 104.91 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Subtotal / Weighted Average |
7,152,207 | 94.4 | % | 463,051,000 | 74.34 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Washington, D.C.: |
||||||||||||||||||||||
| Waterview |
Rosslyn, VA | 100.0 | % | 647,243 | 98.9 | % | 31,295,000 | 49.80 | ||||||||||||||
| 425 Eye Street |
East End | 100.0 | % | 380,090 | 88.9 | % | 14,861,000 | 45.79 | ||||||||||||||
| 2099 Pennsylvania Avenue |
CBD | 100.0 | % | 208,636 | 62.0 | % | 4,865,000 | 73.17 | ||||||||||||||
| 1899 Pennsylvania Avenue |
CBD | 100.0 | % | 192,481 | 86.5 | % | 10,785,000 | 80.59 | ||||||||||||||
| Liberty Place |
East End | 100.0 | % | 174,205 | 85.2 | % | 6,354,000 | 66.43 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Subtotal / Weighted Average |
1,602,655 | 88.8 | % | 68,160,000 | 54.58 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| San Francisco: |
||||||||||||||||||||||
| One Market Plaza |
South Financial District | 49.0 | % | 1,611,125 | 96.8 | % | 72,569,000 | 57.74 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total / Weighted Average |
10,365,987 | 93.9 | % | $ | 603,780,000 | $ | 69.13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (1) | Represents the remeasured square feet, which includes an aggregate of 203,511 square feet of either REBNY or BOMA remeasurement adjustments that are not reflected in current leases. |
| (2) | See page 21 for our definition of this measure. |
| (3) | Excludes square feet and revenue from parking, storage, theater, signage and roof space. |
- 16 -
TOP TENANTS AND INDUSTRY DIVERSIFICATION
(unaudited)
| Lease | Square Feet | % of Total | Annualized Rent (1) | % of Annualized | ||||||||||||||||||||
| Expiration | Leased | Square Feet | Amount | Per Square Foot | Rent | |||||||||||||||||||
| Top 10 Tenants: |
||||||||||||||||||||||||
| The Corporate Executive Board Company |
Jan-2028 | 625,062 | 6.0 | % | $ | 31,045,000 | $ | 49.67 | 5.0 | % | ||||||||||||||
| Barclays Capital, Inc. |
Dec-2020 | 497,418 | 4.8 | % | 28,924,000 | 58.15 | 4.7 | % | ||||||||||||||||
| Allianz Global Investors, LP |
Jan-2031 | (2) | 326,457 | (2) | 3.2 | % | 26,028,000 | 79.73 | 4.2 | % | ||||||||||||||
| Credit Agricole Corporate & Investment Bank |
Feb-2023 | 313,879 | 3.0 | % | 25,219,000 | 80.35 | 4.1 | % | ||||||||||||||||
| Clifford Chance, LLP |
Jun-2024 | 328,992 | 3.2 | % | 24,760,000 | 75.26 | 4.0 | % | ||||||||||||||||
| Commerzbank AG |
May-2016 | 287,535 | 2.8 | % | 24,260,000 | 84.37 | 3.9 | % | ||||||||||||||||
| Kasowitz Benson Torres & Friedman, LLP |
Mar-2037 | (3) | 302,213 | (3) | 2.9 | % | 18,799,000 | 62.20 | 3.1 | % | ||||||||||||||
| Deloitte & Touche, LLP |
Mar-2016 | 212,052 | 2.1 | % | 16,619,000 | 78.37 | 2.7 | % | ||||||||||||||||
| WMG Acquisition Corp. (Warner Music Group) |
Jul-2029 | 293,487 | 2.8 | % | 16,052,000 | 54.69 | 2.6 | % | ||||||||||||||||
| Chadbourne & Parke, LLP |
Sep-2034 | 203,102 | 2.0 | % | 15,836,000 | 77.97 | 2.6 | % | ||||||||||||||||
| Square Feet | % of Total | Annualized | % of Annualized | |||||||||||||||||||||
| Leased | Square Feet | Rent | Rent | |||||||||||||||||||||
| Industry Diversification: |
||||||||||||||||||||||||
| Financial Services |
3,973,431 | 38.3 | % | 294,258,000 | 47.8 | % | ||||||||||||||||||
| Legal Services |
1,755,571 | 16.9 | % | 126,338,000 | 20.5 | % | ||||||||||||||||||
| Media |
794,301 | 7.7 | % | 48,059,000 | 7.8 | % | ||||||||||||||||||
| Government |
316,700 | 3.1 | % | 14,630,000 | 2.4 | % | ||||||||||||||||||
| Software |
168,186 | 1.6 | % | 8,952,000 | 1.5 | % | ||||||||||||||||||
| Business Services and Communications |
166,291 | 1.6 | % | 10,132,000 | 1.6 | % | ||||||||||||||||||
| Retail |
144,519 | 1.4 | % | 13,119,000 | 2.1 | % | ||||||||||||||||||
| Real Estate |
135,850 | 1.3 | % | 10,820,000 | 1.8 | % | ||||||||||||||||||
| Other |
2,911,138 | 28.1 | % | 89,520,000 | 14.5 | % | ||||||||||||||||||
| (1) | See page 21 for our definition of this measure. |
| (2) | 5,546 of the square feet leased expires in December 2018. |
| (3) | 100,422 of the square feet leased expires in November 2015. |
- 17 -
LEASING ACTIVITY
(unaudited and square feet in thousands)
| Total | New York | Washington, D.C. | San Francisco | |||||||||||||
| Quarter Ended December 31, 2014 |
||||||||||||||||
| Total square feet leased |
537 | 361 | 133 | 43 | ||||||||||||
| Pro rata share of square feet leased: |
509 | 355 | 133 | 21 | ||||||||||||
| Initial rent (1) |
$ | 72.24 | $ | 68.70 | $ | 77.38 | $ | 99.56 | ||||||||
| Weighted average lease term (years) |
9.6 | 8.7 | 12.5 | 6.8 | ||||||||||||
| Second generation space: |
||||||||||||||||
| Square feet |
350 | 283 | 46 | 21 | ||||||||||||
| Cash basis: |
||||||||||||||||
| Initial rent (1) |
$ | 72.86 | $ | 69.75 | $ | 79.82 | $ | 99.56 | ||||||||
| Prior escalated rent |
$ | 72.83 | $ | 73.55 | $ | 63.70 | $ | 82.90 | ||||||||
| Percentage increase (decrease) |
0.0 | % | (5.2 | %) | 25.3 | % | 20.1 | % | ||||||||
| GAAP basis: |
||||||||||||||||
| Straight-line rent |
$ | 73.21 | $ | 69.52 | $ | 81.18 | $ | 105.57 | ||||||||
| Prior straight-line rent |
$ | 61.30 | $ | 59.48 | $ | 65.70 | $ | 76.20 | ||||||||
| Percentage increase |
19.4 | % | 16.9 | % | 23.6 | % | 38.5 | % | ||||||||
| Tenant improvements and leasing commissions: |
||||||||||||||||
| Per square foot |
$ | 85.44 | $ | 59.27 | $ | 157.85 | $ | 70.10 | ||||||||
| Per square foot per annum |
$ | 8.92 | $ | 6.84 | $ | 12.66 | $ | 10.32 | ||||||||
| Percentage of initial rent |
12.3 | % | 10.0 | % | 16.4 | % | 10.4 | % | ||||||||
| (1) | See page 21 for our definition of this measure. |
- 18 -
LEASE EXPIRATIONS
(unaudited)
| Year of Lease Expiration |
Square Feet of Expiring Leases |
Annualized Rent (1) | % of | |||||||||||||
| Amount | Per Square Foot (2) | Annualized Rent | ||||||||||||||
|
Month to Month |
7,089 | $ | 653,000 | $ | 77.15 | 0.1 | % | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
1Q 2015 |
72,213 | 4,563,000 | 63.44 | 0.7 | % | |||||||||||
|
2Q 2015 |
134,142 | 9,103,000 | 69.72 | 1.4 | % | |||||||||||
|
3Q 2015 |
246,754 | 19,435,000 | 78.87 | 3.0 | % | |||||||||||
|
4Q 2015 |
212,212 | 13,725,000 | 62.39 | 2.1 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Total 2015 |
665,321 | 46,826,000 | 70.06 | 7.2 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
2016 |
973,905 | 71,333,000 | 72.49 | 11.0 | % | |||||||||||
|
2017 |
433,258 | 33,986,000 | 79.02 | 5.3 | % | |||||||||||
|
2018 |
446,107 | 33,453,000 | 75.22 | 5.2 | % | |||||||||||
|
2019 |
387,441 | 28,813,000 | 74.59 | 4.5 | % | |||||||||||
|
2020 |
1,110,469 | 67,524,000 | 63.14 | 10.4 | % | |||||||||||
|
2021 |
842,543 | 49,708,000 | 60.98 | 7.7 | % | |||||||||||
|
2022 |
295,130 | 16,668,000 | 86.46 | 2.6 | % | |||||||||||
|
2023 |
630,081 | 52,018,000 | 82.85 | 8.0 | % | |||||||||||
|
2024 |
632,281 | 48,393,000 | 76.96 | 7.5 | % | |||||||||||
|
Thereafter |
3,088,545 | 197,896,000 | 63.39 | 30.6 | % | |||||||||||
| (1) | See page 21 for our definition of this measure. |
| (2) | Excludes square feet and revenue from parking, storage, theater, signage and roof space. |
- 19 -
CAPITAL EXPENDITURES - CASH BASIS
(unaudited and in thousands)
| Period from November 24, 2014 through December 31, 2014 |
||||
| Capital expenditures to maintain assets: |
||||
| Recurring |
$ | 1,385 | ||
| Non-recurring |
— | |||
|
|
|
|||
| Total capital expenditures to maintain assets |
$ | 1,385 | ||
|
|
|
|||
| Tenant improvements: |
||||
| Recurring |
$ | 2,661 | ||
| Non-recurring |
2,365 | |||
|
|
|
|||
| Total tenant improvements |
$ | 5,026 | ||
|
|
|
|||
| Leasing commissions: |
||||
| Recurring |
$ | 3,269 | ||
| Non-recurring |
1,943 | |||
|
|
|
|||
| Total leasing commissions |
$ | 5,212 | ||
|
|
|
|||
| Total capital expenditures, tenant improvements and leasing commissions: |
||||
| Total recurring |
$ | 7,315 | ||
| Total non-recurring |
4,308 | |||
|
|
|
|||
| Total capital expenditures, tenant improvements and leasing commissions |
$ | 11,623 | ||
|
|
|
|||
| Development expenditures |
$ | 10 | ||
|
|
|
|||
- 20 -
DEFINITIONS
Funds from Operations (“FFO”) is calculated in accordance with the definition adopted by National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as GAAP net income or loss adjusted to exclude net gains from sales of depreciated real estate assets, impairment losses on depreciable real estate and depreciation and amortization expense from real estate assets, including our share of such adjustments of unconsolidated joint ventures.
Core Funds from Operations (“Core FFO”) is calculated as FFO plus (i) acquisition, transaction and formation related costs and (ii) defeasance and debt breakage costs less (iii) unrealized gains on interest rate swaps and (iv) the gain on consolidation of a partially owned entity.
Funds Available for Distribution (“FAD”) is calculated as Core FFO less (i) recurring tenant improvements, leasing commissions and other capital expenditures (ii) straight-line rent adjustments and (iii) amortization of above and below-market leases, net, plus (iv) amortization of non-cash compensation expense and (v) amortization of deferred financing costs.
Net Operating Income (“NOI”) is calculated as GAAP net income or loss plus (i) depreciation and amortization (ii) general and administrative expenses (iii) interest and debt expense (iv) acquisition, formation and transaction related costs and (v) income tax expense less (vi) fee income (vii) unrealized gains on interest rate swaps (viii) interest and other income and (ix) the gain on consolidation of a partially owned entity, including our share of such adjustments of unconsolidated joint ventures. We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, net, including our share of such adjustments of unconsolidated joint ventures. In addition, we present our pro rata share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is calculated as GAAP net income or loss plus (i) depreciation and amortization (ii) interest and debt expense and (iii) income tax expense, including our share of such adjustments of unconsolidated joint ventures.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) is calculated as EBITDA plus (i) acquisition, transaction and formation related costs less (ii) unrealized gains on interest rate swaps and (iii) the gain on consolidation of a partially owned entity.
Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12.
Initial Rent represents the weighted average cash basis starting rent per square foot and does not include free rent or periodic step-ups in rent.
- 21 -