UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 |
ORION OFFICE REIT INC. | ||||||||||||||||||||||||||
(Exact name of Registrant as specified in its charter) | ||||||||||||||||||||||||||
Maryland | 001-40873 | 87-1656425 | ||||||||||||||||||||||||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||
2398 E. Camelback Road, Suite 1060 | ||||||||||||||
Phoenix, | AZ | 85016 | ||||||||||||
(Address of principal executive offices, including zip code) |
(602) | 698-1002 | |||||||||||||||||||||||||||||||
(Registrant’s telephone number, including area code) |
N/A | ||||||||||||||
(Former name or former address, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: | |||||||||||
Title of each class: | Trading symbol(s): | Name of each exchange on which registered: | |||||||||
Common Stock | $0.001 par value per share | ONL | New York Stock Exchange | ||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ORION OFFICE REIT INC. |
||||||||
By: | /s/ Gavin B. Brandon | |||||||
Name: | Gavin B. Brandon | |||||||
Title: | Chief Financial Officer, Executive Vice President and Treasurer |
Location | Square Feet | Renewal Term | Previous Expiration | New Expiration | ||||||||||
Memphis, TN | 90 | 10.0 years | December 2024 | December 2034 | ||||||||||
Minneapolis, MN | 39 | 5.0 years | April 2025 | April 2030 |
Low | High | |||||||||||||
Core FFO per share | $0.93 | - | $1.01 | |||||||||||
General and Administrative Expenses | $19.5 million | - | $20.5 million | |||||||||||
Net Debt to Adjusted EBITDA | 6.2x | - | 7.0x |
December 31, 2023 | December 31, 2022 | |||||||||||||
Assets | ||||||||||||||
Real estate investments, at cost: | ||||||||||||||
Land | $ | 223,264 | $ | 238,225 | ||||||||||
Buildings, fixtures and improvements | 1,097,132 | 1,128,400 | ||||||||||||
Total real estate investments, at cost | 1,320,396 | 1,366,625 | ||||||||||||
Less: accumulated depreciation | 158,791 | 133,379 | ||||||||||||
Total real estate investments, net | 1,161,605 | 1,233,246 | ||||||||||||
Accounts receivable, net | 24,663 | 21,641 | ||||||||||||
Intangible lease assets, net | 126,364 | 202,832 | ||||||||||||
Cash and cash equivalents | 22,473 | 20,638 | ||||||||||||
Real estate assets held for sale, net | — | 2,502 | ||||||||||||
Other assets, net | 88,828 | 90,214 | ||||||||||||
Total assets | $ | 1,423,933 | $ | 1,571,073 | ||||||||||
Liabilities and Equity | ||||||||||||||
Mortgages payable, net | $ | 352,856 | $ | 352,167 | ||||||||||
Credit facility term loan, net | — | 173,815 | ||||||||||||
Credit facility revolver | 116,000 | — | ||||||||||||
Accounts payable and accrued expenses | 30,479 | 26,161 | ||||||||||||
Below-market lease liabilities, net | 8,074 | 14,068 | ||||||||||||
Distributions payable | 5,578 | 5,664 | ||||||||||||
Other liabilities, net | 23,943 | 23,340 | ||||||||||||
Total liabilities | 536,930 | 595,215 | ||||||||||||
Common stock | 56 | 57 | ||||||||||||
Additional paid-in capital | 1,144,636 | 1,147,014 | ||||||||||||
Accumulated other comprehensive (loss) income | (264) | 6,308 | ||||||||||||
Accumulated deficit | (258,805) | (178,910) | ||||||||||||
Total stockholders' equity | 885,623 | 974,469 | ||||||||||||
Non-controlling interest | 1,380 | 1,389 | ||||||||||||
Total equity | 887,003 | 975,858 | ||||||||||||
Total liabilities and equity | $ | 1,423,933 | $ | 1,571,073 |
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental | $ | 43,551 | $ | 50,097 | $ | 194,241 | $ | 207,353 | ||||||||||||||||||
Fee income from unconsolidated joint venture | 200 | 197 | 800 | 765 | ||||||||||||||||||||||
Total revenues | 43,751 | 50,294 | 195,041 | 208,118 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating | 14,446 | 15,746 | 60,783 | 61,519 | ||||||||||||||||||||||
General and administrative | 5,479 | 4,428 | 18,720 | 15,908 | ||||||||||||||||||||||
Depreciation and amortization | 26,055 | 30,493 | 109,111 | 131,367 | ||||||||||||||||||||||
Impairments | 6,136 | 12,198 | 33,112 | 66,359 | ||||||||||||||||||||||
Transaction related | 148 | 277 | 504 | 675 | ||||||||||||||||||||||
Spin related | — | — | — | 964 | ||||||||||||||||||||||
Total operating expenses | 52,264 | 63,142 | 222,230 | 276,792 | ||||||||||||||||||||||
Other (expenses) income: | ||||||||||||||||||||||||||
Interest expense, net | (7,928) | (7,553) | (29,669) | (30,171) | ||||||||||||||||||||||
Gain on disposition of real estate assets | 13 | 1,293 | 31 | 2,352 | ||||||||||||||||||||||
Loss on extinguishment of debt, net | — | — | (504) | (468) | ||||||||||||||||||||||
Other income, net | 273 | 105 | 911 | 223 | ||||||||||||||||||||||
Equity in loss of unconsolidated joint venture, net | (109) | (272) | (435) | (524) | ||||||||||||||||||||||
Total other (expenses) income, net | (7,751) | (6,427) | (29,666) | (28,588) | ||||||||||||||||||||||
Loss before taxes | (16,264) | (19,275) | (56,855) | (97,262) | ||||||||||||||||||||||
Provision for income taxes | 49 | 282 | (456) | (212) | ||||||||||||||||||||||
Net loss | (16,215) | (18,993) | (57,311) | (97,474) | ||||||||||||||||||||||
Net loss (income) attributable to non-controlling interest | 47 | 23 | 9 | (20) | ||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (16,168) | $ | (18,970) | $ | (57,302) | $ | (97,494) | ||||||||||||||||||
Weighted-average shares outstanding - basic and diluted | 55,782 | 56,644 | 56,410 | 56,632 | ||||||||||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | (0.29) | $ | (0.33) | $ | (1.02) | $ | (1.72) |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (16,168) | $ | (18,970) | $ | (57,302) | $ | (97,494) | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 26,029 | 30,475 | 109,011 | 131,297 | ||||||||||||||||||||||
Gain on disposition of real estate assets | (13) | (1,293) | (31) | (2,352) | ||||||||||||||||||||||
Impairment of real estate | 6,136 | 12,198 | 33,112 | 66,359 | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 463 | 465 | 1,851 | 1,847 | ||||||||||||||||||||||
FFO attributable to common stockholders | $ | 16,447 | $ | 22,875 | $ | 86,641 | $ | 99,657 | ||||||||||||||||||
Transaction related | 148 | 277 | 504 | 675 | ||||||||||||||||||||||
Spin related | — | — | — | 964 | ||||||||||||||||||||||
Amortization of deferred financing costs | 933 | 1,069 | 3,974 | 4,364 | ||||||||||||||||||||||
Amortization of deferred lease incentives, net | 115 | 80 | 302 | 116 | ||||||||||||||||||||||
Equity-based compensation | 826 | 603 | 2,728 | 1,756 | ||||||||||||||||||||||
Loss on extinguishment of debt, net | — | — | 504 | 468 | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 30 | 29 | 117 | 178 | ||||||||||||||||||||||
Core FFO attributable to common stockholders | $ | 18,499 | $ | 24,933 | $ | 94,770 | $ | 108,178 | ||||||||||||||||||
Amortization of above and below market leases, net | (361) | (260) | (1,196) | (1,207) | ||||||||||||||||||||||
Straight-line rental revenue | 679 | 2,911 | (5,649) | 769 | ||||||||||||||||||||||
Unconsolidated Joint Venture basis difference amortization | 114 | 259 | 474 | 1,034 | ||||||||||||||||||||||
Capital expenditures and leasing costs | (7,443) | (6,112) | (21,312) | (14,624) | ||||||||||||||||||||||
Other adjustments, net | 116 | 74 | 387 | 263 | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | (36) | (54) | (157) | (230) | ||||||||||||||||||||||
FAD attributable to common stockholders | $ | 11,568 | $ | 21,751 | $ | 67,317 | $ | 94,183 | ||||||||||||||||||
Weighted-average shares outstanding - basic | 55,782 | 56,644 | 56,410 | 56,632 | ||||||||||||||||||||||
Effect of weighted-average dilutive securities (1) |
37 | — | — | — | ||||||||||||||||||||||
Weighted-average shares outstanding - diluted | 55,819 | 56,644 | 56,410 | 56,632 | ||||||||||||||||||||||
FFO attributable to common stockholders per diluted share | $ | 0.29 | $ | 0.40 | $ | 1.54 | $ | 1.76 | ||||||||||||||||||
Core FFO attributable to common stockholders per diluted share | $ | 0.33 | $ | 0.44 | $ | 1.68 | $ | 1.91 | ||||||||||||||||||
FAD attributable to common stockholders per diluted share | $ | 0.21 | $ | 0.38 | $ | 1.19 | $ | 1.66 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (16,168) | $ | (18,970) | $ | (57,302) | $ | (97,494) | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Interest expense | 7,928 | 7,553 | 29,669 | 30,171 | ||||||||||||||||||||||
Depreciation and amortization | 26,055 | 30,493 | 109,111 | 131,367 | ||||||||||||||||||||||
Provision for income taxes | (49) | (282) | 456 | 212 | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 864 | 864 | 3,443 | 2,961 | ||||||||||||||||||||||
EBITDA | $ | 18,630 | $ | 19,658 | $ | 85,377 | $ | 67,217 | ||||||||||||||||||
Gain on disposition of real estate assets | (13) | (1,293) | (31) | (2,352) | ||||||||||||||||||||||
Impairment of real estate | 6,136 | 12,198 | 33,112 | 66,359 | ||||||||||||||||||||||
EBITDAre | $ | 24,753 | $ | 30,563 | $ | 118,458 | $ | 131,224 | ||||||||||||||||||
Transaction related | 148 | 277 | 504 | 675 | ||||||||||||||||||||||
Spin related | — | — | — | 964 | ||||||||||||||||||||||
Amortization of above and below market leases, net | (361) | (260) | (1,196) | (1,207) | ||||||||||||||||||||||
Amortization of deferred lease incentives, net | 115 | 80 | 302 | 116 | ||||||||||||||||||||||
Loss on extinguishment and forgiveness of debt, net | — | — | 504 | 468 | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | (8) | (8) | (30) | (30) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 24,647 | $ | 30,652 | $ | 118,542 | $ | 132,210 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Interest expense - as reported | $ | 7,928 | $ | 7,553 | $ | 29,669 | $ | 30,171 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Amortization of deferred financing costs and other non-cash charges | (933) | (1,068) | (3,974) | (4,363) | ||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Interest Expense, excluding non-cash amortization |
370 | 367 | 1,470 | 931 | ||||||||||||||||||||||
Interest Expense, excluding non-cash amortization | $ | 7,365 | $ | 6,852 | $ | 27,165 | $ | 26,739 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
Interest Coverage Ratio | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Interest Expense, excluding non-cash amortization (1) |
$ | 7,365 | $ | 6,852 | $ | 27,165 | $ | 26,739 | ||||||||||||||||||
Adjusted EBITDA (2) |
24,647 | 30,652 | 118,542 | 132,210 | ||||||||||||||||||||||
Interest Coverage Ratio | 3.35x | 4.47x | 4.36x | 4.94x | ||||||||||||||||||||||
Fixed Charge Coverage Ratio | ||||||||||||||||||||||||||
Interest Expense, excluding non-cash amortization (1) |
$ | 7,365 | $ | 6,852 | $ | 27,165 | $ | 26,739 | ||||||||||||||||||
Secured debt principal amortization | — | — | — | — | ||||||||||||||||||||||
Total fixed charges | 7,365 | 6,852 | 27,165 | 26,739 | ||||||||||||||||||||||
Adjusted EBITDA (2) |
24,647 | 30,652 | 118,542 | 132,210 | ||||||||||||||||||||||
Fixed Charge Coverage Ratio | 3.35x | 4.47x | 4.36x | 4.94x |
Net Debt | December 31, 2023 | December 31, 2022 | ||||||||||||
Mortgages payable, net | $ | 352,856 | $ | 352,167 | ||||||||||
Credit facility term loan, net | — | 173,815 | ||||||||||||
Credit facility revolver | 116,000 | — | ||||||||||||
Total debt - as reported | 468,856 | 525,982 | ||||||||||||
Deferred financing costs, net | 2,144 | 4,018 | ||||||||||||
Principal Outstanding | 471,000 | 530,000 | ||||||||||||
Proportionate share of Unconsolidated Joint Venture Principal Outstanding |
27,332 | 27,332 | ||||||||||||
Adjusted Principal Outstanding | 498,332 | 557,332 | ||||||||||||
Cash and cash equivalents | (22,473) | (20,638) | ||||||||||||
Proportionate share of Unconsolidated Joint Venture cash and cash equivalents |
(650) | (572) | ||||||||||||
Net Debt | $ | 475,209 | $ | 536,122 |
December 31, 2023 | December 31, 2022 | |||||||||||||
Total real estate investments, at cost - as reported | $ | 1,320,396 | $ | 1,366,625 | ||||||||||
Adjustments: | ||||||||||||||
Gross intangible lease assets | 333,658 | 360,690 | ||||||||||||
Gross intangible lease liabilities | (31,250) | (31,317) | ||||||||||||
Gross assets held for sale | — | 2,544 | ||||||||||||
Proportionate share of Unconsolidated Joint Venture Gross Real Estate Investments |
45,548 | 45,427 | ||||||||||||
Gross Real Estate Investments | $ | 1,668,352 | $ | 1,743,969 |
December 31, 2023 | December 31, 2022 | |||||||||||||
Net Debt Ratios | ||||||||||||||
Net Debt (1) |
$ | 475,209 | $ | 536,122 | ||||||||||
Adjusted EBITDA | 118,542 | 132,210 | ||||||||||||
Net Debt to Adjusted EBITDA Ratio | 4.01x | 4.06x | ||||||||||||
Net Debt (1) |
$ | 475,209 | $ | 536,122 | ||||||||||
Gross Real Estate Investments (1) |
1,668,352 | 1,743,969 | ||||||||||||
Net Debt Leverage Ratio | 28.5 | % | 30.7 | % | ||||||||||
Unencumbered Assets/Real Estate Assets | ||||||||||||||
Unencumbered Gross Real Estate Investments | $ | 1,060,660 | $ | 1,141,035 | ||||||||||
Gross Real Estate Investments (1) |
1,668,352 | 1,743,969 | ||||||||||||
Unencumbered Asset Ratio | 63.6 | % | 65.4 | % |
Low | High | |||||||||||||
Diluted net loss per share attributable to common stockholders | $ | (0.84) | $ | (0.76) | ||||||||||
Depreciation and amortization of real estate assets |
1.58 | 1.58 | ||||||||||||
Proportionate share of adjustments for Unconsolidated Joint Venture | 0.03 | 0.03 | ||||||||||||
FFO attributable to common stockholders per diluted share | 0.77 | 0.85 | ||||||||||||
Adjustments (1) |
0.16 | 0.16 | ||||||||||||
Core FFO attributable to common stockholders per diluted share | $ | 0.93 | $ | 1.01 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Orion Supplemental Information | |||||
December 31, 2023 |
Section | Page | ||||
About the Data | |||||
Forward-Looking Statements | |||||
Company Overview | |||||
Balance Sheets | |||||
Statements of Operations | |||||
Funds From Operations (FFO), Core FFO and Funds Available for Distribution (FAD) | |||||
EBITDA, EBITDAre and Adjusted EBITDA | |||||
Capital Structure | |||||
Debt Detail | |||||
Ratio Analysis | |||||
Credit Facility Revolver Covenants | |||||
Net Operating Income (NOI) and Cash NOI | |||||
Leasing Activity | |||||
Vacant Property Operating Expenses | |||||
Dispositions | |||||
Diversification Statistics: Real Estate Portfolio | |||||
Tenants Comprising Over 1% of Annualized Base Rent | |||||
Tenant Industry Diversification | |||||
Property Geographic Diversification | |||||
Lease Expirations | |||||
Lease Summary | |||||
Full Portfolio | |||||
Unconsolidated Joint Venture Investment Summary | |||||
Definitions |
Q4 2023 SUPPLEMENTAL INFORMATION |
About the Data | ||
Q4 2023 SUPPLEMENTAL INFORMATION |
Forward-Looking Statements | ||
Q4 2023 SUPPLEMENTAL INFORMATION |
Q4 2023 SUPPLEMENTAL INFORMATION |
Company Overview
(unaudited)
| ||
Q4 2023 SUPPLEMENTAL INFORMATION |
Company Overview (cont.) | ||
Senior Management | Board of Directors | |||||||
Paul H. McDowell, Chief Executive Officer, President | Reginald H. Gilyard, Non-Executive Chairman, Independent Director | |||||||
Gavin B. Brandon, Executive Vice President, Chief Financial Officer and Treasurer | Kathleen R. Allen, Ph.D., Independent Director | |||||||
Christopher H. Day, Executive Vice President, Chief Operating Officer | Richard J. Lieb, Independent Director | |||||||
Gary E. Landriau, Executive Vice President, Chief Investment Officer | Gregory J. Whyte, Independent Director | |||||||
Paul C. Hughes, General Counsel and Secretary | Paul H. McDowell, Chief Executive Officer, President and Director | |||||||
Revea L. Schmidt, Senior Vice President, Chief Accounting Officer |
2398 E. Camelback Road, Suite 1060 | 122 E. 42nd Street, Suite 5100 | |||||||
Phoenix, AZ 85016 | New York, NY 10168 | |||||||
602-698-1002 | ||||||||
www.ONLREIT.com |
Computershare Trust Company, N.A. | ||
462 South 4th Street, Suite 1600 | ||
Louisville, KY 40202 | ||
855-866-0787 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Balance Sheets
(unaudited, in thousands)
| ||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Real estate investments, at cost: | ||||||||||||||||||||||||||||||||
Land | $ | 223,264 | $ | 227,203 | $ | 229,105 | $ | 236,966 | $ | 238,225 | ||||||||||||||||||||||
Buildings, fixtures and improvements | 1,097,132 | 1,106,383 | 1,111,646 | 1,127,590 | 1,128,400 | |||||||||||||||||||||||||||
Total real estate investments, at cost | 1,320,396 | 1,333,586 | 1,340,751 | 1,364,556 | 1,366,625 | |||||||||||||||||||||||||||
Less: accumulated depreciation | 158,791 | 156,904 | 149,147 | 141,093 | 133,379 | |||||||||||||||||||||||||||
Total real estate investments, net | 1,161,605 | 1,176,682 | 1,191,604 | 1,223,463 | 1,233,246 | |||||||||||||||||||||||||||
Accounts receivable, net | 24,663 | 26,911 | 24,960 | 24,697 | 21,641 | |||||||||||||||||||||||||||
Intangible lease assets, net | 126,364 | 144,304 | 161,885 | 182,629 | 202,832 | |||||||||||||||||||||||||||
Cash and cash equivalents | 22,473 | 32,286 | 42,209 | 23,755 | 20,638 | |||||||||||||||||||||||||||
Real estate assets held for sale, net | — | 3,818 | 16,251 | 2,502 | 2,502 | |||||||||||||||||||||||||||
Other assets, net | 88,828 | 120,390 | 90,998 | 89,826 | 90,214 | |||||||||||||||||||||||||||
Total assets | $ | 1,423,933 | $ | 1,504,391 | $ | 1,527,907 | $ | 1,546,872 | $ | 1,571,073 | ||||||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||||||||||
Mortgages payable, net | $ | 352,856 | $ | 352,683 | $ | 352,509 | $ | 352,337 | $ | 352,167 | ||||||||||||||||||||||
Credit facility term loan, net | — | — | — | 174,153 | 173,815 | |||||||||||||||||||||||||||
Credit facility revolver | 116,000 | 175,000 | 175,000 | — | — | |||||||||||||||||||||||||||
Accounts payable and accrued expenses | 30,479 | 30,570 | 22,326 | 19,957 | 26,161 | |||||||||||||||||||||||||||
Below-market lease liabilities, net | 8,074 | 9,481 | 10,996 | 12,526 | 14,068 | |||||||||||||||||||||||||||
Distributions payable | 5,578 | 5,578 | 5,670 | 5,666 | 5,664 | |||||||||||||||||||||||||||
Other liabilities, net | 23,943 | 21,811 | 23,682 | 22,286 | 23,340 | |||||||||||||||||||||||||||
Total liabilities | 536,930 | 595,123 | 590,183 | 586,925 | 595,215 | |||||||||||||||||||||||||||
Common stock | 56 | 56 | 57 | 57 | 57 | |||||||||||||||||||||||||||
Additional paid-in capital | 1,144,636 | 1,143,825 | 1,148,155 | 1,147,466 | 1,147,014 | |||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income |
(264) | 986 | 3,026 | 4,540 | 6,308 | |||||||||||||||||||||||||||
Accumulated deficit | (258,805) | (237,026) | (214,929) | (193,516) | (178,910) | |||||||||||||||||||||||||||
Total stockholders' equity | 885,623 | 907,841 | 936,309 | 958,547 | 974,469 | |||||||||||||||||||||||||||
Non-controlling interest | 1,380 | 1,427 | 1,415 | 1,400 | 1,389 | |||||||||||||||||||||||||||
Total equity | 887,003 | 909,268 | 937,724 | 959,947 | 975,858 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 1,423,933 | $ | 1,504,391 | $ | 1,527,907 | $ | 1,546,872 | $ | 1,571,073 | ||||||||||||||||||||||
Q4 2023 SUPPLEMENTAL INFORMATION |
Statements of Operations
(unaudited, in thousands, except per share data)
| ||
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Rental | $ | 194,241 | $ | 43,551 | $ | 48,876 | $ | 51,824 | $ | 49,990 | $ | 50,097 | ||||||||||||||||||||||||||
Fee income from unconsolidated joint venture | 800 | 200 | 200 | 200 | 200 | 197 | ||||||||||||||||||||||||||||||||
Total revenues | 195,041 | 43,751 | 49,076 | 52,024 | 50,190 | 50,294 | ||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Property operating | 60,783 | 14,446 | 15,506 | 15,487 | 15,344 | 15,746 | ||||||||||||||||||||||||||||||||
General and administrative | 18,720 | 5,479 | 4,367 | 4,565 | 4,309 | 4,428 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 109,111 | 26,055 | 27,013 | 27,877 | 28,166 | 30,493 | ||||||||||||||||||||||||||||||||
Impairments | 33,112 | 6,136 | 11,403 | 11,819 | 3,754 | 12,198 | ||||||||||||||||||||||||||||||||
Transaction related | 504 | 148 | 101 | 150 | 105 | 277 | ||||||||||||||||||||||||||||||||
Total operating expenses | 222,230 | 52,264 | 58,390 | 59,898 | 51,678 | 63,142 | ||||||||||||||||||||||||||||||||
Other (expenses) income: | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | (29,669) | (7,928) | (7,380) | (7,222) | (7,139) | (7,553) | ||||||||||||||||||||||||||||||||
Gain on disposition of real estate assets | 31 | 13 | 18 | — | — | 1,293 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | (504) | — | — | (504) | — | — | ||||||||||||||||||||||||||||||||
Other income, net | 911 | 273 | 437 | 165 | 36 | 105 | ||||||||||||||||||||||||||||||||
Equity in loss of unconsolidated joint venture, net | (435) | (109) | (108) | (95) | (123) | (272) | ||||||||||||||||||||||||||||||||
Total other (expenses) income, net | (29,666) | (7,751) | (7,033) | (7,656) | (7,226) | (6,427) | ||||||||||||||||||||||||||||||||
Loss before taxes | (56,855) | (16,264) | (16,347) | (15,530) | (8,714) | (19,275) | ||||||||||||||||||||||||||||||||
Provision for income taxes | (456) | 49 | (160) | (185) | (160) | 282 | ||||||||||||||||||||||||||||||||
Net loss | (57,311) | (16,215) | (16,507) | (15,715) | (8,874) | (18,993) | ||||||||||||||||||||||||||||||||
Net (income) loss attributable to non-controlling interest | 9 | 47 | (12) | (15) | (11) | 23 | ||||||||||||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (57,302) | $ | (16,168) | $ | (16,519) | $ | (15,730) | $ | (8,885) | $ | (18,970) | ||||||||||||||||||||||||||
Weighted-average shares outstanding - basic and diluted | 56,410 | 55,782 | 56,543 | 56,680 | 56,642 | 56,644 | ||||||||||||||||||||||||||||||||
Basic and diluted net loss per share attributable to common stockholders | $ | (1.02) | $ | (0.29) | $ | (0.29) | $ | (0.28) | $ | (0.16) | $ | (0.33) |
Q4 2023 SUPPLEMENTAL INFORMATION |
Funds From Operations (FFO), Core FFO and Funds Available for Distribution (FAD)
(unaudited, in thousands, except per share data)
| ||
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (57,302) | $ | (16,168) | $ | (16,519) | $ | (15,730) | $ | (8,885) | $ | (18,970) | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization of real estate assets | 109,011 | 26,029 | 26,988 | 27,852 | 28,142 | 30,475 | ||||||||||||||||||||||||||||||||
Gain on disposition of real estate assets | (31) | (13) | (18) | — | — | (1,293) | ||||||||||||||||||||||||||||||||
Impairment of real estate | 33,112 | 6,136 | 11,403 | 11,819 | 3,754 | 12,198 | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 1,851 | 463 | 463 | 463 | 462 | 465 | ||||||||||||||||||||||||||||||||
FFO attributable to common stockholders | $ | 86,641 | $ | 16,447 | $ | 22,317 | $ | 24,404 | $ | 23,473 | $ | 22,875 | ||||||||||||||||||||||||||
Transaction related | 504 | 148 | 101 | 150 | 105 | 277 | ||||||||||||||||||||||||||||||||
Amortization of deferred financing costs | 3,974 | 933 | 933 | 1,059 | 1,049 | 1,069 | ||||||||||||||||||||||||||||||||
Amortization of deferred lease incentives, net | 302 | 115 | (14) | 100 | 101 | 80 | ||||||||||||||||||||||||||||||||
Equity-based compensation | 2,728 | 826 | 687 | 689 | 526 | 603 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | 504 | — | — | 504 | — | — | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 117 | 30 | 29 | 29 | 29 | 29 | ||||||||||||||||||||||||||||||||
Core FFO attributable to common stockholders | $ | 94,770 | $ | 18,499 | $ | 24,053 | $ | 26,935 | $ | 25,283 | $ | 24,933 | ||||||||||||||||||||||||||
Amortization of above and below market leases, net | (1,196) | (361) | (346) | (274) | (215) | (260) | ||||||||||||||||||||||||||||||||
Straight-line rental revenue | (5,649) | 679 | (1,369) | (2,275) | (2,684) | 2,911 | ||||||||||||||||||||||||||||||||
Unconsolidated Joint Venture basis difference amortization | 474 | 114 | 113 | 114 | 133 | 259 | ||||||||||||||||||||||||||||||||
Capital expenditures and leasing costs | (21,312) | (7,443) | (8,359) | (2,172) | (3,338) | (6,112) | ||||||||||||||||||||||||||||||||
Other adjustments, net | 387 | 116 | 66 | 74 | 131 | 74 | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for the items above, as applicable | (157) | (36) | (40) | (41) | (40) | (54) | ||||||||||||||||||||||||||||||||
FAD attributable to common stockholders | $ | 67,317 | $ | 11,568 | $ | 14,118 | $ | 22,361 | $ | 19,270 | $ | 21,751 | ||||||||||||||||||||||||||
Weighted-average shares outstanding - basic | 56,410 | 55,782 | 56,543 | 56,680 | 56,642 | 56,644 | ||||||||||||||||||||||||||||||||
Effect of weighted-average dilutive securities (1) |
— | 37 | 26 | 11 | 18 | — | ||||||||||||||||||||||||||||||||
Weighted-average shares outstanding - diluted | 56,410 | 55,819 | 56,569 | 56,691 | 56,660 | 56,644 | ||||||||||||||||||||||||||||||||
FFO attributable to common stockholders per diluted share | $ | 1.54 | $ | 0.29 | $ | 0.39 | $ | 0.43 | $ | 0.41 | $ | 0.40 | ||||||||||||||||||||||||||
Core FFO attributable to common stockholders per diluted share | $ | 1.68 | $ | 0.33 | $ | 0.43 | $ | 0.48 | $ | 0.45 | $ | 0.44 | ||||||||||||||||||||||||||
FAD attributable to common stockholders per diluted share | $ | 1.19 | $ | 0.21 | $ | 0.25 | $ | 0.39 | $ | 0.34 | $ | 0.38 |
Q4 2023 SUPPLEMENTAL INFORMATION |
EBITDA, EBITDAre and Adjusted EBITDA
(unaudited, in thousands)
| ||
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Net loss attributable to common stockholders | $ | (57,302) | $ | (16,168) | $ | (16,519) | $ | (15,730) | $ | (8,885) | $ | (18,970) | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Interest expense | 29,669 | 7,928 | 7,380 | 7,222 | 7,139 | 7,553 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 109,111 | 26,055 | 27,013 | 27,877 | 28,166 | 30,493 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 456 | (49) | 160 | 185 | 160 | (282) | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | 3,443 | 864 | 864 | 861 | 854 | 864 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 85,377 | $ | 18,630 | $ | 18,898 | $ | 20,415 | $ | 27,434 | $ | 19,658 | ||||||||||||||||||||||||||
Gain on disposition of real estate assets | (31) | (13) | (18) | — | — | (1,293) | ||||||||||||||||||||||||||||||||
Impairment of real estate | 33,112 | 6,136 | 11,403 | 11,819 | 3,754 | 12,198 | ||||||||||||||||||||||||||||||||
EBITDAre | $ | 118,458 | $ | 24,753 | $ | 30,283 | $ | 32,234 | $ | 31,188 | $ | 30,563 | ||||||||||||||||||||||||||
Transaction related | 504 | 148 | 101 | 150 | 105 | 277 | ||||||||||||||||||||||||||||||||
Amortization of above and below market leases, net | (1,196) | (361) | (346) | (274) | (215) | (260) | ||||||||||||||||||||||||||||||||
Amortization of deferred lease incentives, net | 302 | 115 | (14) | 100 | 101 | 80 | ||||||||||||||||||||||||||||||||
Loss on extinguishment of debt, net | 504 | — | — | 504 | — | — | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture adjustments for items above, as applicable | (30) | (8) | (7) | (8) | (7) | (8) | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 118,542 | $ | 24,647 | $ | 30,017 | $ | 32,706 | $ | 31,172 | $ | 30,652 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Capital Structure
(unaudited, dollars and shares in thousands, except per share amounts)
| ||
Common equity | 39.0% | ||||||||||
Mortgages payable | 43.5% | ||||||||||
Credit facility revolver (4) |
14.2% | ||||||||||
Proportionate share of Unconsolidated Joint Venture debt | 3.3% |
Fixed and Swapped to Fixed | 76.7 | % | |||
Variable (4) |
23.3 | % |
Orion Capitalization Table | |||||||||||||||||
December 31, 2023 | |||||||||||||||||
Common stock outstanding | 55,784 | ||||||||||||||||
Stock price | $ | 5.72 | |||||||||||||||
Implied Equity Market Capitalization | $ | 319,084 | |||||||||||||||
Wtd. Avg. Maturity (Years) |
Interest Rate (1) |
December 31, 2023 | |||||||||||||||
Mortgages payable | 3.1 | 4.97 | % | $ | 355,000 | ||||||||||||
Proportionate share of Unconsolidated Joint Venture debt (2) |
0.9 | 5.19 | % | 27,332 | |||||||||||||
Total secured debt | 3.0 | 4.99 | % | $ | 382,332 | ||||||||||||
Total unsecured credit facility revolver (3) (4) |
2.4 | 8.66 | % | $ | 116,000 | ||||||||||||
Total Principal Outstanding | 2.8 | 5.84 | % | $ | 498,332 | ||||||||||||
Total Capitalization | $ | 817,416 | |||||||||||||||
Cash and cash equivalents | 22,473 | ||||||||||||||||
Proportionate share of Unconsolidated Joint Venture cash and cash equivalents | 650 | ||||||||||||||||
Enterprise Value | $ | 794,293 | |||||||||||||||
Net Debt/Enterprise Value | 59.8 | % | |||||||||||||||
Net Debt/Gross Real Estate Investments | 28.5 | % | |||||||||||||||
Fixed Charge Coverage Ratio | 4.36x | ||||||||||||||||
Liquidity (5) |
$ | 332,123 | |||||||||||||||
Net Debt/Adjusted EBITDA | 4.01x |
Q4 2023 SUPPLEMENTAL INFORMATION |
Debt Detail
(unaudited, dollars in thousands)
| ||
Principal Payments Due | Total | 2024 | 2025 | 2026 | 2027 | |||||||||||||||||||||||||||
Credit facility revolver (1) |
$ | 116,000 | $ | — | $ | — | $ | 116,000 | $ | — | ||||||||||||||||||||||
Mortgages payable | 355,000 | — | — | — | 355,000 | |||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture debt (3) |
27,332 | 27,332 | — | — | — | |||||||||||||||||||||||||||
Total Principal Outstanding | $ | 498,332 | $ | 27,332 | $ | — | $ | 116,000 | $ | 355,000 |
Debt Type | Percentage of Principal Outstanding | Interest Rate (2) |
Weighted-Average Years to Maturity | |||||||||||||||||
Credit facility revolver (1) |
23.3 | % | 8.66 | % | 2.4 | |||||||||||||||
Mortgages payable | 71.2 | % | 4.97 | % | 3.1 | |||||||||||||||
Proportionate share of Unconsolidated Joint Venture debt (3) |
5.5 | % | 5.19 | % | 0.9 | |||||||||||||||
Total | 100.0 | % | 5.84 | % | 2.8 |
Debt Type | Percentage of Principal Outstanding | Interest Rate (2) |
Weighted-Average Years to Maturity | |||||||||||||||||
Total unsecured debt | 23.3 | % | 8.66 | % | 2.4 | |||||||||||||||
Total secured debt | 76.7 | % | 4.99 | % | 3.0 | |||||||||||||||
Total | 100.0 | % | 5.84 | % | 2.8 | |||||||||||||||
Total fixed-rate and swapped to fixed-rate debt (1) |
76.7 | % | 4.99 | % | 3.0 | |||||||||||||||
Total variable-rate debt (1) |
23.3 | % | 8.66 | % | 2.4 | |||||||||||||||
Total | 100.0 | % | 5.84 | % | 2.8 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Ratio Analysis
(unaudited, dollars in thousands)
| ||
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Interest Coverage Ratio | ||||||||||||||||||||||||||||||||||||||
Interest Expense, excluding non-cash amortization (1) |
$ | 27,165 | $ | 7,365 | $ | 6,818 | $ | 6,529 | $ | 6,453 | $ | 6,852 | ||||||||||||||||||||||||||
Adjusted EBITDA (2) |
118,542 | 24,647 | 30,017 | 32,706 | 31,172 | 30,652 | ||||||||||||||||||||||||||||||||
Interest Coverage Ratio | 4.36x | 3.35x | 4.40x | 5.01x | 4.83x | 4.47x | ||||||||||||||||||||||||||||||||
Fixed Charge Coverage Ratio | ||||||||||||||||||||||||||||||||||||||
Interest Expense, excluding non-cash amortization (1) |
$ | 27,165 | $ | 7,365 | $ | 6,818 | $ | 6,529 | $ | 6,453 | $ | 6,852 | ||||||||||||||||||||||||||
Secured debt principal amortization | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total fixed charges | 27,165 | 7,365 | 6,818 | 6,529 | 6,453 | 6,852 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA (2) |
118,542 | 24,647 | 30,017 | 32,706 | 31,172 | 30,652 | ||||||||||||||||||||||||||||||||
Fixed Charge Coverage Ratio | 4.36x | 3.35x | 4.40x | 5.01x | 4.83x | 4.47x |
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Net Debt Ratios | ||||||||||||||||||||||||||||||||
Net Debt (1) |
$ | 475,209 | $ | 491,140 | $ | 514,418 | $ | 532,850 | $ | 536,122 | ||||||||||||||||||||||
Adjusted EBITDA (2) |
118,542 | 120,068 | 130,824 | 124,688 | 132,210 | |||||||||||||||||||||||||||
Net Debt to Adjusted EBITDA Ratio | 4.01x | 4.09x | 3.93x | 4.27x | 4.06x | |||||||||||||||||||||||||||
Net Debt (1) |
$ | 475,209 | $ | 491,140 | $ | 514,418 | $ | 532,850 | $ | 536,122 | ||||||||||||||||||||||
Gross Real Estate Investments (1) |
1,668,352 | 1,698,387 | 1,716,594 | 1,734,559 | 1,743,969 | |||||||||||||||||||||||||||
Net Debt Leverage Ratio | 28.5 | % | 28.9 | % | 30.0 | % | 30.7 | % | 30.7 | % | ||||||||||||||||||||||
Unencumbered Assets/Real Estate Assets | ||||||||||||||||||||||||||||||||
Unencumbered Gross Real Estate Investments (1) |
$ | 1,060,660 | $ | 1,092,464 | $ | 1,112,811 | $ | 1,131,272 | $ | 1,141,035 | ||||||||||||||||||||||
Gross Real Estate Investments (1) |
1,668,352 | 1,698,387 | 1,716,594 | 1,734,559 | 1,743,969 | |||||||||||||||||||||||||||
Unencumbered Asset Ratio | 63.6 | % | 64.3 | % | 64.8 | % | 65.2 | % | 65.4 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Credit Facility Revolver Covenants
(unaudited)
| ||
Credit Facility Revolver Financial Covenants | Required | December 31, 2023 | ||||||||||||
Ratio of total indebtedness to total asset value | ≤ 60% | 38.3% | ||||||||||||
Ratio of adjusted EBITDA to fixed charges | ≥ 1.5x | 3.50x | ||||||||||||
Ratio of secured indebtedness to total asset value | ≤ 40% | 29.2% | ||||||||||||
Ratio of unsecured indebtedness to unencumbered asset value | ≤ 60% (1) |
13.9% | ||||||||||||
Ratio of unencumbered adjusted NOI to unsecured interest expense | ≥ 2.00x | 7.8x | ||||||||||||
Unencumbered asset value | ≥ $600.0 million | $775.2 million |
Q4 2023 SUPPLEMENTAL INFORMATION |
Net Operating Income (NOI) and Cash NOI
(unaudited, dollars in thousands)
| ||
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Rental revenue: | ||||||||||||||||||||||||||||||||||||||
Cash rental revenue | $ | 141,471 | $ | 33,466 | $ | 35,491 | $ | 36,410 | $ | 36,104 | $ | 37,209 | ||||||||||||||||||||||||||
Fixed reimbursements | 5,956 | 1,436 | 1,737 | 1,399 | 1,384 | 1,406 | ||||||||||||||||||||||||||||||||
Variable reimbursements | 36,010 | 7,646 | 9,203 | 10,679 | 8,482 | 9,081 | ||||||||||||||||||||||||||||||||
Straight-line rental revenue | 5,649 | (679) | 1,369 | 2,275 | 2,684 | (2,911) | ||||||||||||||||||||||||||||||||
Amortization of above and below market leases, net | 1,196 | 361 | 346 | 274 | 215 | 260 | ||||||||||||||||||||||||||||||||
Amortization of deferred lease incentives, net | (302) | (115) | 14 | (100) | (101) | (80) | ||||||||||||||||||||||||||||||||
Other rental revenue | 4,261 | 1,436 | 716 | 887 | 1,222 | 5,132 | ||||||||||||||||||||||||||||||||
Total rental revenue | 194,241 | 43,551 | 48,876 | 51,824 | 49,990 | 50,097 | ||||||||||||||||||||||||||||||||
Property operating expense | (60,783) | (14,446) | (15,506) | (15,487) | (15,344) | (15,746) | ||||||||||||||||||||||||||||||||
NOI | 133,458 | 29,105 | 33,370 | 36,337 | 34,646 | 34,351 | ||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Straight-line rental revenue | (5,649) | 679 | (1,369) | (2,275) | (2,684) | 2,911 | ||||||||||||||||||||||||||||||||
Amortization of above and below market leases, net | (1,196) | (361) | (346) | (274) | (215) | (260) | ||||||||||||||||||||||||||||||||
Amortization of deferred lease incentives, net | 302 | 115 | (14) | 100 | 101 | 80 | ||||||||||||||||||||||||||||||||
Other non-cash adjustments | 192 | 49 | 47 | 48 | 48 | 51 | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Cash NOI | 3,454 | 868 | 863 | 861 | 862 | 833 | ||||||||||||||||||||||||||||||||
Cash NOI | $ | 130,561 | $ | 30,455 | $ | 32,551 | $ | 34,797 | $ | 32,758 | $ | 37,966 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Leasing Activity
(unaudited, dollars and square feet in thousands)
| ||
Three Months Ended December 31, 2023 |
||||||||||||||||||||
New Leases | Renewals | Total | ||||||||||||||||||
Rentable square feet leased | 3 | 129 | 132 | |||||||||||||||||
Weighted average rental rate change (cash basis) (1) (2) |
N/A | (4.8) | % | (4.8) | % | |||||||||||||||
Tenant leasing costs and concession commitments (3) |
$ | 133 | $ | 988 | $ | 1,121 | ||||||||||||||
Tenant leasing costs and concession commitments per rentable square foot | $ | 45.00 | $ | 7.62 | $ | 8.45 | ||||||||||||||
Weighted average lease term (by rentable square feet) (years) | 10.0 | 8.5 | 8.5 | |||||||||||||||||
Tenant leasing costs and concession commitments per rentable square foot per year | $ | 4.50 | $ | 0.90 | $ | 0.99 |
Year Ended December 31, 2023 |
||||||||||||||||||||
New Leases | Renewals | Total | ||||||||||||||||||
Rentable square feet leased | 21 | 240 | 261 | |||||||||||||||||
Weighted average rental rate change (cash basis) (1) (4) |
(19.8) | % | 6.8 | % | 5.3 | % | ||||||||||||||
Tenant leasing costs and concession commitments (3) |
$ | 881 | $ | 2,053 | $ | 2,934 | ||||||||||||||
Tenant leasing costs and concession commitments per rentable square foot | $ | 41.89 | $ | 8.54 | $ | 11.23 | ||||||||||||||
Weighted average lease term (by rentable square feet) (years) (5) |
8.1 | 9.1 | 9.0 | |||||||||||||||||
Tenant leasing costs and concession commitments per rentable square foot per year | $ | 5.15 | $ | 0.94 | $ | 1.24 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Vacant Property Operating Expenses
(unaudited, in thousands for the year ended December 31, 2023)
| ||
Square Feet | Total Expenses | |||||||||||||
Fully vacant - full period | 512 | $3,225 | ||||||||||||
Fully vacant - disposed and partial period (1) |
1,648 | 5,870 | ||||||||||||
Fully vacant subtotal (2) |
2,160 | $9,095 | ||||||||||||
Partially vacant properties (3) |
372 | 2,422 | ||||||||||||
Total | 2,532 | $11,517 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Dispositions
(unaudited, square feet and dollars in thousands)
| ||
Date Sold |
Property Location |
Square Feet |
Gross Sale Price |
Lease Term (Years) | ||||||||||||||||||||||
07/06/2023 | Berkeley, MO | 227 | $9,650 | Vacant | ||||||||||||||||||||||
08/10/2023 | New Port Richey, FL | 47 | 4,400 | Vacant | ||||||||||||||||||||||
10/23/2023 | Schaumburg, IL | 178 | 1,375 | Vacant | ||||||||||||||||||||||
12/11/2023 | Caldwell, ID | 10 | 2,600 | Vacant | ||||||||||||||||||||||
12/20/2023 | Tucson, AZ | 125 | 5,000 | Vacant | ||||||||||||||||||||||
12/26/2023 | Uniontown, OH | 262 | 2,400 | Vacant | ||||||||||||||||||||||
Total | 849 | $25,425 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Diversification Statistics: Real Estate Portfolio
(unaudited, percentages based on portfolio Annualized Base Rent as of December 31, 2023, other than occupancy rate which is based on square footage as of December 31, 2023)
| ||
Statistics
(square feet in thousands)
| ||||||||
Operating Properties | 75 | |||||||
Unconsolidated Joint Venture Properties | 6 | |||||||
Rentable Square Feet | 8,884 | |||||||
Occupancy Rate | 80.4 | % | ||||||
Weighted Average Remaining Lease Term | 4.0 | |||||||
Investment-Grade Tenants | 70.6 | % | ||||||
NN leases | 68.3 | % | ||||||
NNN leases | 12.8 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Tenants Comprising Over 1% of Annualized Base Rent
(unaudited, square feet and dollars in thousands as of December 31, 2023)
| ||
Tenant | Number of Leases | Leased Square Feet | Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | Credit Rating | ||||||||||||||||||||||||||||||||
General Services Administration | 15 | 725 | 8.2 | % | $ | 19,109 | 13.5 | % | AA+ | |||||||||||||||||||||||||||||
Merrill Lynch | 1 | 482 | 5.4 | % | 12,465 | 8.8 | % | A- | ||||||||||||||||||||||||||||||
Highmark Western & Northeastern NY | 1 | 430 | 4.8 | % | 8,450 | 6.0 | % | NR | ||||||||||||||||||||||||||||||
RSA Security | 2 | 328 | 3.7 | % | 7,221 | 5.1 | % | BBB | ||||||||||||||||||||||||||||||
Cigna/Express Scripts | 3 | 365 | 4.1 | % | 6,922 | 4.9 | % | A- | ||||||||||||||||||||||||||||||
Coterra Energy | 1 | 309 | 3.5 | % | 5,762 | 4.1 | % | BBB | ||||||||||||||||||||||||||||||
MDC Holdings Inc. | 1 | 144 | 1.6 | % | 4,385 | 3.1 | % | BBB- | ||||||||||||||||||||||||||||||
T-Mobile | 3 | 217 | 2.4 | % | 3,971 | 2.8 | % | BBB | ||||||||||||||||||||||||||||||
Charter Communications | 2 | 264 | 3.0 | % | 3,745 | 2.7 | % | BB+ | ||||||||||||||||||||||||||||||
Banner Life Insurance | 1 | 116 | 1.4 | % | 3,581 | 2.5 | % | A | ||||||||||||||||||||||||||||||
Top Ten Tenants | 30 | 3,380 | 38.1 | % | 75,611 | 53.5 | % | |||||||||||||||||||||||||||||||
Remaining Tenants: | ||||||||||||||||||||||||||||||||||||||
Inform Diagnostics | 1 | 172 | 1.9 | % | 3,551 | 2.5 | % | NR | ||||||||||||||||||||||||||||||
Encompass Health | 1 | 65 | 0.7 | % | 3,505 | 2.5 | % | BB- | ||||||||||||||||||||||||||||||
Collins Aerospace | 1 | 207 | 2.3 | % | 3,369 | 2.4 | % | BBB+ | ||||||||||||||||||||||||||||||
Home Depot/HD Supply | 2 | 153 | 1.8 | % | 3,173 | 2.2 | % | A | ||||||||||||||||||||||||||||||
AT&T | 1 | 203 | 2.3 | % | 2,921 | 2.1 | % | BBB | ||||||||||||||||||||||||||||||
Ingram Micro | 1 | 170 | 1.9 | % | 2,898 | 2.1 | % | BB- | ||||||||||||||||||||||||||||||
Linde | 1 | 175 | 2.0 | % | 2,714 | 1.9 | % | A | ||||||||||||||||||||||||||||||
Maximus | 2 | 168 | 1.9 | % | 2,549 | 1.8 | % | BB+ | ||||||||||||||||||||||||||||||
Citigroup | 1 | 64 | 0.7 | % | 2,459 | 1.7 | % | BBB+ | ||||||||||||||||||||||||||||||
CVS/Aetna | 1 | 127 | 1.4 | % | 2,328 | 1.7 | % | BBB | ||||||||||||||||||||||||||||||
Hasbro | 1 | 136 | 1.5 | % | 2,243 | 1.6 | % | BBB | ||||||||||||||||||||||||||||||
Novus International | 1 | 96 | 1.1 | % | 2,022 | 1.4 | % | NR | ||||||||||||||||||||||||||||||
Pulte Mortgage | 1 | 95 | 1.1 | % | 2,005 | 1.4 | % | BBB | ||||||||||||||||||||||||||||||
NetJets | 1 | 140 | 1.6 | % | 1,990 | 1.4 | % | NR | ||||||||||||||||||||||||||||||
Elementis | 1 | 66 | 0.7 | % | 1,980 | 1.4 | % | NR | ||||||||||||||||||||||||||||||
FedEx | 1 | 90 | 1.0 | % | 1,744 | 1.2 | % | BBB | ||||||||||||||||||||||||||||||
General Electric | 1 | 152 | 1.7 | % | 1,713 | 1.2 | % | BBB+ | ||||||||||||||||||||||||||||||
AGCO | 1 | 126 | 1.4 | % | 1,607 | 1.1 | % | BBB- | ||||||||||||||||||||||||||||||
Intermec | 1 | 81 | 0.9 | % | 1,459 | 1.0 | % | A | ||||||||||||||||||||||||||||||
Abbott Laboratories | 1 | 131 | 1.5 | % | 1,379 | 1.0 | % | AA- | ||||||||||||||||||||||||||||||
Becton Dickinson | 1 | 72 | 0.8 | % | 1,370 | 1.0 | % | BBB | ||||||||||||||||||||||||||||||
Total | 53 | 6,069 | 68.3 | % | $ | 124,590 | 88.1 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Tenant Industry Diversification
(unaudited, square feet and dollars in thousands as of December 31, 2023)
| ||
Industry | Number of Leases (1) |
Leased Square Feet | Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | |||||||||||||||||||||||||||
Health Care Equipment & Services | 12 | 1,109 | 12.5 | % | $ | 21,601 | 15.3 | % | ||||||||||||||||||||||||
Government & Public Services | 17 | 769 | 8.7 | % | 19,657 | 13.9 | % | |||||||||||||||||||||||||
Financial Institutions | 3 | 616 | 6.9 | % | 15,720 | 11.1 | % | |||||||||||||||||||||||||
Insurance | 3 | 600 | 6.7 | % | 13,292 | 9.4 | % | |||||||||||||||||||||||||
Capital Goods | 10 | 846 | 9.5 | % | 12,656 | 9.0 | % | |||||||||||||||||||||||||
Software & Services | 6 | 609 | 6.9 | % | 12,390 | 8.8 | % | |||||||||||||||||||||||||
Consumer Durables & Apparel | 3 | 375 | 4.2 | % | 8,632 | 6.1 | % | |||||||||||||||||||||||||
Telecommunication Services | 5 | 419 | 4.7 | % | 6,892 | 4.9 | % | |||||||||||||||||||||||||
Materials | 4 | 366 | 4.1 | % | 5,852 | 4.1 | % | |||||||||||||||||||||||||
Energy | 1 | 309 | 3.5 | % | 5,762 | 4.1 | % | |||||||||||||||||||||||||
Top Ten Tenant Industries | 64 | 6,018 | 67.7 | % | 122,454 | 86.7 | % | |||||||||||||||||||||||||
Remaining Tenant Industries: | ||||||||||||||||||||||||||||||||
Commercial & Professional Services | 10 | 293 | 3.3 | % | 4,746 | 3.4 | % | |||||||||||||||||||||||||
Transportation | 4 | 279 | 3.1 | % | 4,496 | 3.2 | % | |||||||||||||||||||||||||
Media & Entertainment | 2 | 264 | 3.0 | % | 3,745 | 2.6 | % | |||||||||||||||||||||||||
Retailing | 3 | 157 | 1.8 | % | 3,247 | 2.3 | % | |||||||||||||||||||||||||
Food, Beverage & Tobacco | 1 | 96 | 1.1 | % | 2,022 | 1.4 | % | |||||||||||||||||||||||||
Utilities | 1 | 26 | 0.3 | % | 394 | 0.3 | % | |||||||||||||||||||||||||
Real Estate | 1 | 4 | — | % | 86 | 0.1 | % | |||||||||||||||||||||||||
Consumer Services | 2 | 5 | 0.1 | % | 54 | — | % | |||||||||||||||||||||||||
Retail/Restaurant | 1 | 2 | — | % | 49 | — | % | |||||||||||||||||||||||||
Total | 89 | 7,144 | 80.4 | % | $ | 141,293 | 100.0 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Property Geographic Diversification
(unaudited, square feet and dollars in thousands as of December 31, 2023)
| ||
Location | Number of Properties | Rentable Square Feet | Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | |||||||||||||||||||||||||||
Texas | 15 | 1,353 | 15.2 | % | $ | 24,313 | 17.2 | % | ||||||||||||||||||||||||
New Jersey | 3 | 724 | 8.2 | % | 14,445 | 10.2 | % | |||||||||||||||||||||||||
New York | 5 | 781 | 8.8 | % | 14,407 | 10.2 | % | |||||||||||||||||||||||||
Kentucky | 2 | 458 | 5.2 | % | 10,354 | 7.3 | % | |||||||||||||||||||||||||
Colorado | 4 | 571 | 6.4 | % | 8,103 | 5.7 | % | |||||||||||||||||||||||||
Massachusetts | 2 | 378 | 4.3 | % | 7,947 | 5.6 | % | |||||||||||||||||||||||||
Oklahoma | 3 | 585 | 6.6 | % | 6,811 | 4.8 | % | |||||||||||||||||||||||||
California | 3 | 244 | 2.8 | % | 5,532 | 3.9 | % | |||||||||||||||||||||||||
Missouri | 3 | 303 | 3.4 | % | 4,917 | 3.5 | % | |||||||||||||||||||||||||
Maryland | 2 | 236 | 2.7 | % | 4,646 | 3.3 | % | |||||||||||||||||||||||||
Top Ten States | 42 | 5,633 | 63.6 | % | 101,475 | 71.7 | % | |||||||||||||||||||||||||
Remaining States: | ||||||||||||||||||||||||||||||||
Tennessee | 4 | 240 | 2.7 | % | 4,641 | 3.3 | % | |||||||||||||||||||||||||
Georgia | 3 | 284 | 3.2 | % | 4,635 | 3.3 | % | |||||||||||||||||||||||||
Virginia | 2 | 240 | 2.7 | % | 4,523 | 3.2 | % | |||||||||||||||||||||||||
Ohio | 3 | 237 | 2.7 | % | 3,545 | 2.5 | % | |||||||||||||||||||||||||
Rhode Island | 2 | 206 | 2.3 | % | 3,040 | 2.2 | % | |||||||||||||||||||||||||
South Carolina | 1 | 64 | 0.7 | % | 2,459 | 1.8 | % | |||||||||||||||||||||||||
Wisconsin | 1 | 155 | 1.7 | % | 2,299 | 1.6 | % | |||||||||||||||||||||||||
Arizona | 1 | 91 | 1.0 | % | 2,282 | 1.6 | % | |||||||||||||||||||||||||
Illinois | 8 | 738 | 8.3 | % | 2,191 | 1.6 | % | |||||||||||||||||||||||||
Iowa | 2 | 92 | 1.0 | % | 1,955 | 1.4 | % | |||||||||||||||||||||||||
Nebraska | 2 | 180 | 2.0 | % | 1,584 | 1.1 | % | |||||||||||||||||||||||||
Pennsylvania | 2 | 233 | 2.6 | % | 1,316 | 0.9 | % | |||||||||||||||||||||||||
Oregon | 1 | 69 | 0.8 | % | 1,142 | 0.8 | % | |||||||||||||||||||||||||
West Virginia | 1 | 63 | 0.7 | % | 1,130 | 0.8 | % | |||||||||||||||||||||||||
Kansas | 2 | 196 | 2.2 | % | 1,044 | 0.7 | % | |||||||||||||||||||||||||
Idaho | 1 | 35 | 0.4 | % | 741 | 0.5 | % | |||||||||||||||||||||||||
Indiana | 1 | 83 | 0.9 | % | 570 | 0.4 | % | |||||||||||||||||||||||||
Minnesota | 1 | 39 | 0.4 | % | 493 | 0.4 | % | |||||||||||||||||||||||||
Florida | 1 | 6 | 0.1 | % | 228 | 0.2 | % | |||||||||||||||||||||||||
Total | 81 | 8,884 | 100.0 | % | $ | 141,293 | 100.0 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Lease Expirations
(unaudited, square feet and dollars in thousands as of December 31, 2023)
| ||
Year of Expiration | Number of Leases Expiring (1) |
Leased Square Feet |
Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | |||||||||||||||||||||||||||
2024 | 15 | 1,907 | 21.5 | % | $ | 39,432 | 27.9 | % | ||||||||||||||||||||||||
2025 | 12 | 919 | 10.3 | % | 16,858 | 11.9 | % | |||||||||||||||||||||||||
2026 | 15 | 801 | 9.0 | % | 18,834 | 13.3 | % | |||||||||||||||||||||||||
2027 | 14 | 1,004 | 11.3 | % | 16,621 | 11.8 | % | |||||||||||||||||||||||||
2028 | 11 | 594 | 6.7 | % | 10,981 | 7.8 | % | |||||||||||||||||||||||||
2029 | 4 | 396 | 4.5 | % | 5,966 | 4.2 | % | |||||||||||||||||||||||||
2030 | 3 | 138 | 1.6 | % | 5,153 | 3.7 | % | |||||||||||||||||||||||||
2031 | 1 | 11 | 0.1 | % | 429 | 0.3 | % | |||||||||||||||||||||||||
2032 | 3 | 300 | 3.4 | % | 3,808 | 2.7 | % | |||||||||||||||||||||||||
2033 | 3 | 358 | 4.0 | % | 6,187 | 4.4 | % | |||||||||||||||||||||||||
Thereafter | 8 | 716 | 8.0 | % | 17,024 | 12.0 | % | |||||||||||||||||||||||||
Total | 89 | 7,144 | 80.4 | % | $ | 141,293 | 100.0 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Lease Summary
(unaudited, square feet and dollars in thousands as of December 31, 2023)
| ||
Number of Leases (1) |
Leased Square Feet |
Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | ||||||||||||||||||||||||||||
Fixed Dollar or Percent Increase | 66 | 6,197 | 69.8 | % | $ | 117,214 | 83.0 | % | ||||||||||||||||||||||||
Flat | 7 | 113 | 1.3 | % | 1,794 | 1.3 | % | |||||||||||||||||||||||||
GSA CPI | 14 | 689 | 7.7 | % | 18,368 | 13.0 | % | |||||||||||||||||||||||||
CPI | 2 | 145 | 1.6 | % | 3,917 | 2.7 | % | |||||||||||||||||||||||||
Total | 89 | 7,144 | 80.4 | % | $ | 141,293 | 100.0 | % |
Number of Leases (1) |
Leased Square Feet |
Leased Square Feet as a % of Total Portfolio | Annualized Base Rent | Annualized Base Rent as a % of Total Portfolio | ||||||||||||||||||||||||||||
NN | 57 | 5,150 | 58.0 | % | $ | 96,461 | 68.3 | % | ||||||||||||||||||||||||
Modified Gross | 18 | 967 | 10.8 | % | 26,629 | 18.8 | % | |||||||||||||||||||||||||
NNN | 11 | 1,019 | 11.5 | % | 18,107 | 12.8 | % | |||||||||||||||||||||||||
Gross | 3 | 8 | 0.1 | % | 96 | 0.1 | % | |||||||||||||||||||||||||
Total | 89 | 7,144 | 80.4 | % | $ | 141,293 | 100.0 | % |
Q4 2023 SUPPLEMENTAL INFORMATION |
Full Portfolio (1)
(unaudited, as of December 31, 2023)
| ||
Industry | Address | City | State | |||||||||||||||||
Food, Beverage & Tobacco | 20 Missouri Research Park Drive | St. Charles | MO | |||||||||||||||||
Commercial & Professional Services | 4335 Paredes Line Road | Brownsville | TX | |||||||||||||||||
Telecommunication Services | 3750 Wheeler Road | Augusta | GA | |||||||||||||||||
Telecommunication Services | 4080 27th Court SE | Salem | OR | |||||||||||||||||
Financial Institutions | 11 Ewall Street | Mount Pleasant | SC | |||||||||||||||||
Health Care Equipment & Services | 8455 University Place Drive | St. Louis | MO | |||||||||||||||||
Government & Public Services | 2305 Hudson Boulevard | Brownsville | TX | |||||||||||||||||
Government & Public Services | 257 Bosley Industrial Park | Parkersburg | WV | |||||||||||||||||
Government & Public Services | 2805 Pine Mill Road | Paris | TX | |||||||||||||||||
Government & Public Services | 3381 U.S. Highway 277 | Eagle Pass | TX | |||||||||||||||||
Government & Public Services | 2475 Cliff Creek Crossing Drive | Dallas | TX | |||||||||||||||||
Government & Public Services | 3644 Avtech Parkway | Redding | CA | |||||||||||||||||
Government & Public Services | 5100 W 36th Street | Minneapolis | MN | |||||||||||||||||
Government & Public Services | 4551 State Route 11 (E) | Malone | NY | |||||||||||||||||
Government & Public Services | 2600 Voyager Avenue | Sioux City | IA | |||||||||||||||||
Government & Public Services | 135 Circle Lane | Knoxville | TN | |||||||||||||||||
Health Care Equipment & Services | 2304 State Highway 121 | Bedford | TX | |||||||||||||||||
Government & Public Services | 3369 U.S. Highway 277 | Eagle Pass | TX | |||||||||||||||||
Transportation | 942 S. Shady Grove Road | Memphis | TN | |||||||||||||||||
Transportation | 4151 Bridgeway Avenue | Columbus | OH | |||||||||||||||||
Vacant | 1411 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Vacant | 1415 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Vacant | 1417 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Vacant | 1419 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Vacant | 1425 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Vacant | 1435 Lake Cook Road | Deerfield | IL | |||||||||||||||||
Capital Goods | 601 Third Street SE | Cedar Rapids | IA | |||||||||||||||||
Consumer Durables & Apparel | 15 LaSalle Square | Providence | RI | |||||||||||||||||
Materials | 100 Sci Park Boulevard | East Windsor | NJ | |||||||||||||||||
Media & Entertainment | 6005 Fair Lakes Road | East Syracuse | NY | |||||||||||||||||
Government & Public Services | 310 Canaveral Groves Boulevard | Cocoa | FL | |||||||||||||||||
Government & Public Services | 103 & 104 Airport Road | Grangeville | ID | |||||||||||||||||
Government & Public Services | 2901 Alta Mesa Boulevard | Fort Worth | TX | |||||||||||||||||
Government & Public Services | 59 Dunning Way | Plattsburgh | NY | |||||||||||||||||
Financial Institutions | 480 Jefferson Boulevard | Warwick | RI | |||||||||||||||||
Capital Goods | 1800 Nelson Road | Longmont | CO | |||||||||||||||||
Health Care Equipment & Services | 1850 Norman Drive North | Waukegan | IL | |||||||||||||||||
Health Care Equipment & Services | 1333 - 1385 East Shaw Avenue | Fresno | CA | |||||||||||||||||
Telecommunication Services | 2270 Lakeside Boulevard | Richardson | TX | |||||||||||||||||
Health Care Equipment & Services | 5859 Farinon Drive | San Antonio | TX | |||||||||||||||||
Energy | 202 S. Cheyenne | Tulsa | OK | |||||||||||||||||
Vacant | 7475 S. Joliet Street | Englewood | CO | |||||||||||||||||
Consumer Durables & Apparel | 4340 & 4350 South Monaco Street | Denver | CO | |||||||||||||||||
Vacant | 2250 Lakeside Boulevard | Richardson | TX | |||||||||||||||||
Commercial & Professional Services | 3833 Greenway Drive | Lawrence | KS | |||||||||||||||||
Vacant | 2201 Noria Road | Lawrence | KS |
Q4 2023 SUPPLEMENTAL INFORMATION |
Industry | Address | City | State | |||||||||||||||||
Materials | 1585 Sawdust Road | The Woodlands | TX | |||||||||||||||||
Consumer Durables & Apparel | 7390 S. Iola Street | Englewood | CO | |||||||||||||||||
Vacant | 41 Moores Road | Malvern | PA | |||||||||||||||||
Media & Entertainment | 1320 N. Dr. MLK Jr. Drive | Milwaukee | WI | |||||||||||||||||
Telecommunication Services | 695 Grassmere Park | Nashville | TN | |||||||||||||||||
Commercial & Professional Services | 1575 Sawdust Road | The Woodlands | TX | |||||||||||||||||
Retailing | 101 Riverview Parkway | Santee | CA | |||||||||||||||||
Materials | 6752 Baymeadow Drive | Glen Burnie | MD | |||||||||||||||||
Health Care Equipment & Services | 6655 North MacArthur Boulevard | Irving | TX | |||||||||||||||||
Capital Goods | 2087 East 71st Street | Tulsa | OK | |||||||||||||||||
Government & Public Services | 333 Scott Street | Covington | KY | |||||||||||||||||
Software & Services | 1759 Wehrle Dr | Amherst | NY | |||||||||||||||||
Commercial & Professional Services | 6377 Emerald Drive | Dublin | OH | |||||||||||||||||
Capital Goods | 22640 Davis Drive | Sterling | VA | |||||||||||||||||
Capital Goods | 1100 Atwater Drive, Lot 11A | Malvern | PA | |||||||||||||||||
Health Care Equipment & Services | 7353 Company Drive | Indianapolis | IN | |||||||||||||||||
Health Care Equipment & Services | 1640 Dallas Parkway | Plano | TX | |||||||||||||||||
Capital Goods | 1705 Kellie Drive | Blair | NE | |||||||||||||||||
Vacant | 3100 Quail Springs Parkway | Oklahoma City | OK | |||||||||||||||||
Software & Services | 777 Research Road | Lincoln | NE | |||||||||||||||||
Insurance | 249-257 West Genesee Street | Buffalo | NY | |||||||||||||||||
Insurance | 3275 Bennett Creek Avenue | Urbana | MD | |||||||||||||||||
Health Care Equipment & Services | 100 Airpark Center Drive East | Nashville | TN | |||||||||||||||||
Retailing | 3074 Chastain Meadows Parkway NW | Kennesaw | GA | |||||||||||||||||
Capital Goods | 4205 River Green Parkway | Duluth | GA | |||||||||||||||||
Vacant | 8 Sylvan way | Parsippany | NJ | |||||||||||||||||
Software & Services | 174 & 176 Middlesex Turnpike | Bedford | MA | |||||||||||||||||
Financial Institutions | 1500-1600 Merrill Lynch Drive | Hopewell | NJ | |||||||||||||||||
Health Care Equipment & Services | 3003 N. 3rd Street | Phoenix | AZ | |||||||||||||||||
Capital Goods | 70 Mechanic Street | Foxboro | MA | |||||||||||||||||
Health Care Equipment & Services | 577 Aptakisic Road | Lincolnshire | IL | |||||||||||||||||
Transportation | 360 Westar Boulevard | Westerville | OH | |||||||||||||||||
Software & Services | 12975 Worldgate Drive | Herndon | VA | |||||||||||||||||
Transportation | 580 Atlas Air Way | Erlanger | KY | |||||||||||||||||
Utilities | 700 Market Street | St. Louis | MO | |||||||||||||||||
Q4 2023 SUPPLEMENTAL INFORMATION |
Unconsolidated Joint Venture Investment Summary
(unaudited, square feet and dollars in thousands)
| ||
Legal Ownership Percentage (1) |
Tenant Industry | Pro Rata Share of Gross Real Estate Investments | Pro Rata Share of Rentable Square Feet | Pro Rata Share of Annualized Base Rent | Pro Rata Share of Principal Outstanding | |||||||||||||||||||||||||||||||||
Schneider Electric - Foxboro, MA | 20% | Capital Goods | $ | 8,336 | 50 | $ | 727 | $ | 5,090 | |||||||||||||||||||||||||||||
Sysmex - Lincolnshire, IL | 20% | Health Care Equipment & Services | 9,239 | 33 | 812 | 5,448 | ||||||||||||||||||||||||||||||||
DHL - Westerville, OH | 20% | Transportation | 6,676 | 29 | 439 | 3,972 | ||||||||||||||||||||||||||||||||
Peraton - Herndon, VA | 20% | Software & Services | 9,808 | 33 | 1,155 | 6,000 | ||||||||||||||||||||||||||||||||
Atlas Air - Erlanger, KY | 20% | Transportation | 5,330 | 20 | 323 | 3,162 | ||||||||||||||||||||||||||||||||
Spire Energy - St. Louis, MO | 20% | Utilities | 6,159 | 26 | 394 | 3,660 | ||||||||||||||||||||||||||||||||
$ | 45,548 | 191 | $ | 3,850 | $ | 27,332 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions
(unaudited, in thousands, except share and per share data)
| ||
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
| ||
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
| ||
December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Total real estate investments, at cost - as reported | $ | 1,320,396 | $ | 1,333,586 | $ | 1,340,751 | $ | 1,364,556 | $ | 1,366,625 | ||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Gross intangible lease assets | 333,658 | 346,643 | 345,416 | 353,341 | 360,690 | |||||||||||||||||||||||||||
Gross intangible lease liabilities | (31,250) | (31,250) | (31,317) | (31,317) | (31,317) | |||||||||||||||||||||||||||
Gross assets held for sale | — | 3,860 | 16,293 | 2,544 | 2,544 | |||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Gross Real Estate Investments |
45,548 | 45,548 | 45,451 | 45,435 | 45,427 | |||||||||||||||||||||||||||
Gross Real Estate Investments | $ | 1,668,352 | $ | 1,698,387 | $ | 1,716,594 | $ | 1,734,559 | $ | 1,743,969 |
Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Interest expense, net - as reported | $ | 29,669 | $ | 7,928 | $ | 7,380 | $ | 7,222 | $ | 7,139 | $ | 7,553 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||
Amortization of deferred financing costs and other non-cash charges | (3,974) | (933) | (933) | (1,059) | (1,049) | (1,068) | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Interest Expense, excluding non-cash amortization |
1,470 | 370 | 371 | 366 | 363 | 367 | ||||||||||||||||||||||||||||||||
Interest Expense, excluding non-cash amortization | $ | 27,165 | $ | 7,365 | $ | 6,818 | $ | 6,529 | $ | 6,453 | $ | 6,852 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
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December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 |
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Mortgages payable, net | $ | 352,856 | $ | 352,683 | $ | 352,509 | $ | 352,337 | $ | 352,167 | ||||||||||||||||||||||
Credit facility term loan, net | — | — | — | 174,153 | 173,815 | |||||||||||||||||||||||||||
Credit facility revolver | 116,000 | 175,000 | 175,000 | — | — | |||||||||||||||||||||||||||
Total debt - as reported | 468,856 | 527,683 | 527,509 | 526,490 | 525,982 | |||||||||||||||||||||||||||
Deferred financing costs, net | 2,144 | 2,317 | 2,491 | 3,510 | 4,018 | |||||||||||||||||||||||||||
Principal Outstanding | 471,000 | 530,000 | 530,000 | 530,000 | 530,000 | |||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Principal Outstanding |
27,332 | 27,332 | 27,332 | 27,332 | 27,332 | |||||||||||||||||||||||||||
Adjusted Principal Outstanding | $ | 498,332 | $ | 557,332 | $ | 557,332 | $ | 557,332 | $ | 557,332 | ||||||||||||||||||||||
Cash and cash equivalents | (22,473) | (32,286) | (42,209) | (23,755) | (20,638) | |||||||||||||||||||||||||||
Restricted cash deposited with credit facility lenders | — | (33,198) | — | — | — | |||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture cash and cash equivalents |
(650) | (708) | (705) | (727) | (572) | |||||||||||||||||||||||||||
Net Debt | $ | 475,209 | $ | 491,140 | $ | 514,418 | $ | 532,850 | $ | 536,122 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
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Year Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Total revenues | $ | 195,041 | $ | 43,751 | $ | 49,076 | $ | 52,024 | $ | 50,190 | $ | 50,294 | ||||||||||||||||||||||||||
Less: total operating expenses | (222,230) | (52,264) | (58,390) | (59,898) | (51,678) | (63,142) | ||||||||||||||||||||||||||||||||
Fee income from unconsolidated joint venture | (800) | (200) | (200) | (200) | (200) | (197) | ||||||||||||||||||||||||||||||||
Transaction related | 504 | 148 | 101 | 150 | 105 | 277 | ||||||||||||||||||||||||||||||||
General and administrative | 18,720 | 5,479 | 4,367 | 4,565 | 4,309 | 4,428 | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 109,111 | 26,055 | 27,013 | 27,877 | 28,166 | 30,493 | ||||||||||||||||||||||||||||||||
Impairment of real estate | 33,112 | 6,136 | 11,403 | 11,819 | 3,754 | 12,198 | ||||||||||||||||||||||||||||||||
NOI | 133,458 | 29,105 | 33,370 | 36,337 | 34,646 | 34,351 | ||||||||||||||||||||||||||||||||
Straight-line rental revenue | (5,649) | 679 | (1,369) | (2,275) | (2,684) | 2,911 | ||||||||||||||||||||||||||||||||
Amortization of above and below market leases, net | (1,196) | (361) | (346) | (274) | (215) | (260) | ||||||||||||||||||||||||||||||||
Amortization of deferred lease incentives, net | 302 | 115 | (14) | 100 | 101 | 80 | ||||||||||||||||||||||||||||||||
Other non-cash adjustments | 192 | 49 | 47 | 48 | 48 | 51 | ||||||||||||||||||||||||||||||||
Proportionate share of Unconsolidated Joint Venture Cash NOI |
3,454 | 868 | 863 | 861 | 862 | 833 | ||||||||||||||||||||||||||||||||
Cash NOI | $ | 130,561 | $ | 30,455 | $ | 32,551 | $ | 34,797 | $ | 32,758 | $ | 37,966 |
Q4 2023 SUPPLEMENTAL INFORMATION |
Definitions (cont.)
(unaudited, in thousands, except share and per share data)
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