| 根据1934年证券交易法第13或15(d)条款的季度报告 |
| 根据1934年证券交易法第13或15(d)条款的过渡报告 |
| (成立的州或其他地區) 成立或組織證明文件) |
(國稅局雇主識別號碼) 識別號碼) |
| 每個班級的標題 |
交易標的（s） |
在註冊的每個交易所的名稱 | ||
“ |
||||
“ |
| 大型加速文件提交者 | ☐ | ☒ | ||||
非加速公司 文件處理器 |
☐ | 較小報告公司 | ||||
| 新興成長型企業 | ||||||
9月30日， 2024 |
12月31日 2023 |
|||||||
| 資產 |
||||||||
| 房地產業物件 |
||||||||
| 土地 |
$ | $ | ||||||
| 建築和改良 |
||||||||
| 租戶改善 |
||||||||
| 傢具、裝置和設備 |
||||||||
| |
|
|
|
|||||
| 累積折舊 |
( |
) | ( |
) | ||||
| |
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|||||
| |
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|
|||||
| 現金及現金等價物 |
||||||||
| 限制性現金 |
||||||||
| 應收租金淨額 |
||||||||
| 遞延租賃成本，淨額 |
||||||||
| 取得之租賃無形資產，淨額 |
||||||||
| 其他資產 |
||||||||
| |
|
|
|
|||||
| 總資產 |
$ | $ | ||||||
| |
|
|
|
|||||
| 負債及股東權益 |
||||||||
| 負債： |
||||||||
| 債務 |
$ | $ | ||||||
| 應付款及應計費用 |
||||||||
| 租金递延 |
||||||||
| 租戶租金按金 |
||||||||
| 取得租賃無形負債淨額 |
||||||||
| 其他負債 |
||||||||
| |
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|
|||||
| 總負債 |
||||||||
| |
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|
|||||
| 承諾和條款（註9） |
||||||||
| 股權： |
||||||||
| |
||||||||
| 0.01 |
||||||||
| 額外的已實收入股本 實收資本 資本 |
||||||||
| 保留收益 |
||||||||
| 累積其他全面損失 |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| 股東權益總計 |
||||||||
| 非控制權益 對房地產業的興趣 |
||||||||
| |
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|||||
| 股東權益總額 |
||||||||
| |
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|
|||||
| 負債及股東權益總計 |
$ | $ | ||||||
| |
|
|
|
|||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Rental and other revenues |
$ | $ | $ | $ | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Property operating expenses |
||||||||||||||||
| General and administrative |
||||||||||||||||
| Depreciation and amortization |
||||||||||||||||
| |
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|
|||||||||
| Total operating expenses |
||||||||||||||||
| |
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|
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|
|
|
|
|||||||||
| Operating income |
||||||||||||||||
| Interest expense: |
||||||||||||||||
| Contractual interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Amortization of deferred financing costs and debt fair value |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
| Net loss on disposition of real estate property |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net (loss)/income |
( |
) | ( |
) | ||||||||||||
| Less: |
||||||||||||||||
| Net income attributable to non-controlling interests in properties |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to the Company |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Preferred stock distributions |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to common stockholders |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Net loss per common share: |
||||||||||||||||
| Basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Diluted |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Dividend distributions declared per common share |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Net (loss)/income |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
| Other comprehensive (loss)/income: |
||||||||||||||||
| Unrealized cash flow hedge (loss)/gain |
( |
) | ||||||||||||||
| Amounts reclassified to interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Other comprehensive (loss)/income |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Comprehensive (loss)/income |
( |
) | ( |
) | ||||||||||||
| Less: |
||||||||||||||||
| Comprehensive income attributable to non-controlling interests in properties |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Comprehensive (loss)/income attributable to the Company |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
Number of shares of preferred stock |
Preferred stock |
Number of shares of common stock |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive (loss)/income |
Total stockholders’ equity |
Non- controlling interests in properties |
Total equity |
|||||||||||||||||||||||||||||||
| Balance—December 31, 2023 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net (loss)/income |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—March 31, 2024 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Contributions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net (loss)/income |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—June 30, 2024 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Contributions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net (loss)/income |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—September 30, 2024 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Number of shares of preferred stock |
Preferred stock |
Number of shares of common stock |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensive income/(loss) |
Total stockholders’ equity |
Non- controlling interests in properties |
Total equity |
|||||||||||||||||||||||||||||||
| Balance—December 31, 2022 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | ( |
) | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Contributions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive loss |
— | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—March 31, 2023 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net (loss)/income |
— | — | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Other comprehensive income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—June 30, 2023 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Restricted stock award grants and vesting |
— | — | — | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||
| Common stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Preferred stock dividend distribution declared |
— | — | — | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||
| Distributions |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
| Net (loss)/income |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||
| Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Balance—September 30, 2023 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Nine Months Ended September 30, |
||||||||
2024 |
2023 |
|||||||
| Cash Flows from Operating Activities: |
||||||||
| Net (loss)/income |
$ | ( |
) | $ | ||||
| Adjustments to reconcile net (loss)/income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
||||||||
| Amortization of deferred financing costs and debt fair value |
||||||||
| Amortization of above and below market leases |
( |
) | ||||||
| Straight-line rent/expense |
( |
) | ( |
) | ||||
| Non-cash stock compensation |
||||||||
| Net loss on disposition of real estate property |
||||||||
| Changes in non-cash working capital: |
||||||||
| Rents receivable, net |
||||||||
| Other assets |
( |
) | ||||||
| Accounts payable and accrued liabilities |
||||||||
| Deferred rent |
( |
) | ( |
) | ||||
| Tenant rent deposits |
||||||||
| |
|
|
|
|||||
| Net Cash Provided By Operating Activities |
||||||||
| |
|
|
|
|||||
| Cash Flows to Investing Activities: |
||||||||
| Additions to real estate properties |
( |
) | ( |
) | ||||
| Reduction of cash on disposition of real estate property |
( |
) | ( |
) | ||||
| Deferred leasing costs |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Net Cash Used In Investing Activities |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Cash Flows to Financing Activities: |
||||||||
| Debt issuance and extinguishment costs |
( |
) | ( |
) | ||||
| Proceeds from borrowings |
||||||||
| Repayment of borrowings |
( |
) | ( |
) | ||||
| Dividend distributions paid to stockholders |
( |
) | ( |
) | ||||
| Distributions to non-controlling interests in properties |
( |
) | ( |
) | ||||
| Shares withheld for payment of taxes on restricted stock unit vesting |
( |
) | ( |
) | ||||
| Contributions from non-controlling interests in properties |
||||||||
| |
|
|
|
|||||
| Net Cash Used In Financing Activities |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash |
( |
) | ||||||
| Cash, Cash Equivalents and Restricted Cash, Beginning of Period |
||||||||
| |
|
|
|
|||||
| Cash, Cash Equivalents and Restricted Cash, End of Period |
$ | $ | ||||||
| |
|
|
|
|||||
| Reconciliation of Cash, Cash Equivalents and Restricted Cash: |
||||||||
| Cash and Cash Equivalents, End of Period |
||||||||
| Restricted Cash, End of Period |
||||||||
| |
|
|
|
|||||
| Cash, Cash Equivalents and Restricted Cash, End of Period |
$ | $ | ||||||
| |
|
|
|
|||||
| Supplemental Disclosures of Cash Flow Information: |
||||||||
| Cash paid for interest |
$ | $ | ||||||
| Purchase of additions in real estate properties included in accounts payable |
$ | $ | ||||||
| Purchase of deferred leasing costs included in accounts payable |
$ | $ | ||||||
Lease Intangible Assets |
Lease Intangible Liabilities |
|||||||||||||||||||||||||||
September 30, 2024 |
Above Market Leases |
In Place Leases |
Leasing Commissions |
Total |
Below Market Leases |
Below Market Ground Lease |
Total |
|||||||||||||||||||||
Cost |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||||
Accumulated amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| $ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||||||||||
Lease Intangible Assets |
Lease Intangible Liabilities |
|||||||||||||||||||||||||||
December 31, 2023 |
Above Market Leases |
In Place Leases |
Leasing Commissions |
Total |
Below Market Leases |
Below Market Ground Lease |
Total |
|||||||||||||||||||||
Cost |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||||||||||
Accumulated amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| $ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||||||||||
| 2024 |
$ | |||
| 2025 |
||||
| 2026 |
||||
| 2027 |
||||
| 2028 |
||||
| Thereafter |
||||
| |
|
|||
| $ | ||||
| |
|
| Property |
September 30, 2024 |
December 31, 2023 |
Interest Rate as of September 30, 2024 (1) |
Maturity |
||||||||||||
| Unsecured Credit Facility (2)(3) |
$ | |
$ | |
|
SOFR + (1)(2) |
|
|
| |||||||
| Term Loan (3) |
|
(3) |
|
|
| |||||||||||
| Mission City |
|
|
|
| ||||||||||||
| Canyon Park (4) |
|
|
|
| ||||||||||||
| Circle Point |
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| SanTan (5) |
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| The Quad |
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| Intellicenter |
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| 2525 McKinnon |
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| FRP Collection |
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(6) |
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| Greenwood Blvd |
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| 5090 N. 40th St |
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| AmberGlen |
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| Central Fairwinds |
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(7) |
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| Carillon Point |
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(6) |
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| FRP Ingenuity Drive (8) |
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| Term Loan (9) |
— | |
— | |
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— | | |||||||||
| Cascade Station (10) |
— | |
— | |
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— | | |||||||||
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| Total Principal |
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| Deferred financing costs, net |
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| Unamortized fair value adjustments |
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| Total |
$ | $ | |
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| (1) | As of September 30, 2024, the daily-simple Secured Overnight Financing Rate (“SOFR”) was |
| (2) | Borrowings under our unsecured credit facility (the “Unsecured Credit Facility”) bear interest at a rate equal to the daily-simple SOFR rate plus a margin of between |
| (3) | On January 5, 2023, the Company entered into a second amendment to its amended and restated credit agreement, dated November 16, 2021, for the Unsecured Credit Facility and entered into a three-year $ |
| (4) | The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, the loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus |
| (5) | In the second quarter of 2023, the Debt Service Coverage Ratio (“DSCR”) and debt yield covenants for SanTan were not met, which triggered a ‘cash-sweep period’ that began in the second quarter of 2023. As of September 30, 2024, the DSCR and debt yield covenants were still not met. As of September 30, 2024, and December 31, 2023, total restricted cash for the property was $ |
| (6) | The FRP Collection and Carillon Point loans bear interest at a rate equal to the daily-simple SOFR rate plus a margin of |
| (7) | On May 23, 2024, the Company entered into an amended and restated loan agreement for Central Fairwinds, extending the term for an additional five years and amending the interest rate from fixed to floating. The loan bears interest at a rate equal to the daily-simple SOFR rate plus a margin of basis points. The Company also entered into a five-year interest rate swap agreement, effectively fixing the SOFR component of the borrowing rate of the loan at |
| (8) | In the third quarter of 2022, the DSCR covenant for FRP Ingenuity Drive was not met, which triggered a ‘cash-sweep period’ that began in the fourth quarter of 2022. As of September 30, 2024, and December 31, 2023, total restricted cash for the property was $ On June 27, 2024, the Company entered into a loan modification and extension agreement for FRP Ingenuity Drive, which among other things, included a principal repayment of $ |
| (9) | On September 27, 2024, the $ repaid with proceeds . from the Unsecured Credit Facility |
| (10) | On May 1, 2024, the non-recourse property loan at our Cascade Station property in Portland, Oregon matured, and an event of default was triggered under the terms of the Cascade Station loan, following non-payment of the principal amount outstanding at loan maturity. On June 27, 2024, the non-recourse debt associated with the Cascade Station property was deconsolidated as a result of the Company entering into an assignment in lieu of foreclosure agreement to transfer possession and control of the property to the lender. The loan balance as of the date of deconsolidation was $ |
| 2024 |
$ | |||
| 2025 |
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| 2026 |
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| 2027 |
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| 2028 |
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| Thereafter |
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Notional Value |
Fair Value Assets/(Liabilities) |
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September 30, 2024 |
Effective Date |
Maturity Date |
September 30, 2024 |
December 31, 2023 |
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| Interest Rate Swap |
$ | January 2023 | January 2026 | $ |
( |
) | $ |
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| Interest Rate Swap |
March 2023 | November 2025 | ( |
) | ( |
) | ||||||||||||||
| Interest Rate Swap |
August 2023 | August 2028 | ( |
) | ( |
) | ||||||||||||||
| Interest Rate Swap |
August 2023 | August 2028 | ( |
) | ( |
) | ||||||||||||||
| Interest Rate Swap |
May 2024 | June 2029 | ( |
) | ||||||||||||||||
| Interest Rate Swap |
September 2019 | September 2024 | ||||||||||||||||||
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| $ | $ | ( |
) | $ | ( |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2024 |
2023 |
2024 |
2023 |
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$ | |
$ | $ | $ | |||||||||||
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| $ | |
$ | $ | $ | ||||||||||||
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| 2024 |
$ | |||
| 2025 |
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| 2026 |
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| 2027 |
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| 2028 |
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| Thereafter |
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September 30, 2024 |
December 31, 2023 |
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$ | |
$ | |
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$ | $ | ||||||
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$ | $ | ||||||
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$ | $ | ||||||
Operating Leases |
Financing Leases |
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| 2024 |
$ | $ | ||||||
| 2025 |
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| 2026 |
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| 2027 |
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| 2028 |
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| Thereafter |
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| Total future minimum lease payments |
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| Discount |
( |
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| Total |
$ | $ | ||||||
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Number of RSUs |
Number of Performance RSUs |
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Outstanding at December 31, 2023 |
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Granted |
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Issuance of dividend equivalents |
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Vested |
( |
) | ( |
) | ||||
Outstanding at March 31, 2024 |
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Issuance of dividend equivalents |
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Outstanding at June 30, 2024 |
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Issuance of dividend equivalents |
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Outstanding at September 30, 2024 |
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Number of RSUs |
Number of Performance RSUs |
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Outstanding at December 31, 2022 |
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Granted |
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Issuance of dividend equivalents |
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Vested |
( |
) | ( |
) | ||||
Outstanding at March 31, 2023 |
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Issuance of dividend equivalents |
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Outstanding at June 30, 2023 |
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Issuance of dividend equivalents |
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Outstanding at September 30, 2023 |
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Units Granted |
Grant Date Fair Value (in thousands) |
Weighted Average Grant Date Fair Value Per Share |
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RSUs |
Performance RSUs |
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2024 |
$ | $ | |
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2023 |
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RSUs |
Performance RSUs |
Total |
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2024 |
$ | |
$ | |
$ | |
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2023 |
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RSUs |
Performance RSUs |
Total |
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2024 |
$ | |
$ | |
$ | |
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2023 |
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| • | adverse economic or real estate developments in the office sector or the markets in which we operate; |
| • | increased interest rates, any resulting increase in financing or operating costs, the impact of inflation and a stall in economic growth or an economic recession; |
| • | changes in local, regional, national and international economic conditions, including as a result of recent pandemics or any future epidemics or pandemics; |
| • | the extent to which “work-from-home” and hybrid work policies continue; |
| • | our inability to compete effectively; |
| • | our inability to collect rent from tenants or renew tenants’ leases on attractive terms if at all; |
| • | our dependence upon significant tenants, bankruptcy or insolvency of a major tenant or a significant number of small tenants or borrowers, or defaults on or non-renewal of leases by tenants; |
| • | demand for and market acceptance of our properties for rental purposes, including as a result of near-term market fluctuations or long-term trends that result in an overall decrease in the demand for office space; |
| • | decreased rental rates or increased vacancy rates; |
| • | our failure to obtain necessary financing or access the capital markets on favorable terms or at all; |
| • | changes in the availability of acquisition opportunities; |
| • | availability of qualified personnel; |
| • | our inability to successfully complete real estate acquisitions or dispositions on the terms and timing we expect, or at all; |
| • | our failure to successfully operate acquired properties and operations; |
| • | changes in our business, financing or investment strategy or the markets in which we operate; |
| • | our failure to generate sufficient cash flows to service our outstanding indebtedness; |
| • | environmental uncertainties and risks related to adverse weather conditions and natural disasters; |
| • | our failure to maintain our qualification as a REIT for U.S. federal income tax purposes; |
| • | government approvals, actions and initiatives, including the need for compliance with environmental requirements; |
| • | outcome of claims and litigation involving or affecting us; |
| • | financial market fluctuations; |
| • | changes in real estate, taxation and zoning laws and other legislation and government activity and changes to real property tax rates and the taxation of REITs in general; and |
| • | other factors described in our news releases and filings with the SEC, including but not limited to those described in our Annual Report on Form 10-K for the year ended December 31, 2023 under the sections captioned “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” and in our subsequent reports filed with the SEC. |
| • | business leaders may generally become more reticent to make large capital allocation decisions, such as entry into a new lease, given the uncertain economic environment; |
| • | our cost of capital has increased due to higher interest rates and credit spreads, and private market debt financing is significantly more challenging to arrange; and |
| • | retaining and attracting new tenants has become increasingly challenging due to potential business layoffs, downsizing and industry slowdowns. |
Three Months Ended September 30, 2024 Leasing Activity |
New Leasing |
Renewal Leasing |
Total Leasing |
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Square Feet (000’s) |
78 | 63 | 141 |
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Average Effective Rents per Square Foot |
$ | 33.91 | $ | 32.87 | $ |
33.44 |
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Tenant Improvements per Square Foot |
$ | 40.52 | $ | 6.99 | $ |
25.47 |
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Leasing Commissions per Square Foot |
$ | 11.25 | $ | 9.34 | $ |
10.39 |
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% Change in Renewal Cash Rent vs. Expiring |
0 | % | ||||||||||
Retention Rate % |
42 | % | ||||||||||
Metropolitan Area |
Property |
Year of Construction |
Economic Interest |
NRA (000’s Square Feet) |
In Place Occupancy |
Annualized Average Effective Rent per Square Foot (1) |
Annualized Base Rent per Square Foot |
Annualized Gross Rent per Square Foot (2) |
Annualized Base Rent (3) ($000’s) |
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Phoenix, AZ (27.3% of NRA) |
Block 23 |
2019 | 100.0 | % | 307 | 81.1 | % | $ | 27.66 | $ | 29.18 | $ | 32.73 | $ | 7,265 | |||||||||||||||||||
Pima Center |
2006-2008 |
100.0 | % | 272 | 55.2 | % | $ | 28.65 | $ | 30.13 | $ | 30.13 | $ | 4,518 | ||||||||||||||||||||
SanTan |
2000-2003 | 100.0 | % | 267 | 51.3 | % | $ | 31.83 | $ | 33.33 | $ | 33.33 | $ | 4,557 | ||||||||||||||||||||
5090 N. 40 th St |
1988 | 100.0 | % | 173 | 70.7 | % | $ | 33.07 | $ | 35.70 | $ | 35.70 | $ | 4,366 | ||||||||||||||||||||
Camelback Square |
1978 | 100.0 | % | 173 | 86.3 | % | $ | 33.19 | $ | 35.45 | $ | 35.45 | $ | 5,280 | ||||||||||||||||||||
The Quad |
1982 | 100.0 | % | 163 | 97.4 | % | $ | 33.00 | $ | 34.35 | $ | 34.70 | $ | 5,452 | ||||||||||||||||||||
Papago Tech |
1993-1995 | 100.0 | % | 163 | 79.2 | % | $ | 25.43 | $ | 26.49 | $ | 26.49 | $ | 3,413 | ||||||||||||||||||||
Tampa, FL (19.0%) |
Park Tower |
1973 | 94.8 | % | 482 | 91.9 | % | $ | 29.22 | $ | 29.23 | $ | 29.23 | $ | 12,938 | |||||||||||||||||||
City Center |
1984 | 95.0 | % | 245 | 75.8 | % | $ | 33.29 | $ | 34.05 | $ | 34.05 | $ | 6,325 | ||||||||||||||||||||
Intellicenter |
2008 | 100.0 | % | 204 | 76.1 | % | $ | 24.31 | $ | 25.96 | $ | 25.96 | $ | 4,023 | ||||||||||||||||||||
Carillon Point |
2007 | 100.0 | % | 124 | 100.0 | % | $ | 30.41 | $ | 31.59 | $ | 31.59 | $ | 3,923 | ||||||||||||||||||||
Denver, CO (14.5%) |
Denver Tech |
1997; 1999 | 100.0 | % | 381 | 85.6 | % | $ | 23.58 | $ | 24.51 | $ | 29.70 | $ | 7,999 | |||||||||||||||||||
Circle Point |
2001 | 100.0 | % | 272 | 84.0 | % | $ | 18.56 | $ | 20.42 | $ | 35.99 | $ | 4,666 | ||||||||||||||||||||
Superior Pointe |
2000 | 100.0 | % | 152 | 69.5 | % | $ | 17.27 | $ | 19.11 | $ | 33.11 | $ | 2,023 | ||||||||||||||||||||
Orlando, FL (12.9%) |
Florida Research Park |
1999 | 96.6 | % | 397 | 87.2 | % | $ | 25.61 | $ | 26.62 | $ | 28.78 | $ | 9,193 | |||||||||||||||||||
Central Fairwinds |
1982 | 97.0 | % | 168 | 91.6 | % | $ | 27.97 | $ | 29.45 | $ | 29.45 | $ | 4,539 | ||||||||||||||||||||
Greenwood Blvd |
1997 | 100.0 | % | 155 | 100.0 | % | $ | 24.84 | $ | 25.25 | $ | 25.25 | $ | 3,915 | ||||||||||||||||||||
Raleigh, NC (8.9%) |
Bloc 83 |
2019; 2021 | 100.0 | % | 494 | 87.6 | % | $ | 39.00 | $ | 39.47 | $ | 40.19 | $ | 17,117 | |||||||||||||||||||
Dallas, TX (5.1%) |
The Terraces |
2017 | 100.0 | % | 173 | 85.6 | % | $ | 39.00 | $ | 38.64 | $ | 59.64 | $ | 5,710 | |||||||||||||||||||
2525 McKinnon |
2003 | 100.0 | % | 111 | 68.7 | % | $ | 29.48 | $ | 31.24 | $ | 51.24 | $ | 2,388 | ||||||||||||||||||||
San Diego, CA (5.1%) |
Mission City |
1990-2007 | 100.0 | % | 281 | 93.4 | % | $ | 38.67 | $ | 40.03 | $ | 40.03 | $ | 10,521 | |||||||||||||||||||
Seattle, WA (3.6%) |
Canyon Park |
1993; 1999 | 100.0 | % | 207 | 100.0 | % | $ | 22.31 | $ | 24.58 | $ | 30.58 | $ | 5,082 | |||||||||||||||||||
Portland, OR (3.6%) |
AmberGlen |
1984-1998 | 76.0 | % | 203 | 97.0 | % | $ | 22.74 | $ | 24.23 | $ | 27.52 | $ | 4,784 | |||||||||||||||||||
Total / Weighted Average – September 30, 2024 (4) |
5,567 |
83.4 |
% |
$ |
29.01 |
$ |
30.16 |
$ |
33.44 |
$ |
139,997 |
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| (1) | Annualized Average Effective Rent accounts for the impact of straight-line rent adjustments, including the amortization of rent escalations and base rent concessions (e.g., free rent abatements) contained in the lease. The square foot result per property is calculated by multiplying (i) Average Effective Rent for the month ended September 30, 2024 by (ii) 12, divided by the occupied square footage in that period. |
| (2) | Annualized gross rent per square foot includes adjustment for estimated expense reimbursements of triple net leases. |
| (3) | Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended September 30, 2024 by (ii) 12. |
| (4) | Averages weighted based on the property’s NRA, adjusted for occupancy. |
Payments Due by Period (in thousands) |
||||||||||||||||||||
Contractual Obligations |
Total |
2024 |
2025-2026 |
2027-2028 |
More than 5 years |
|||||||||||||||
Principal payments on mortgage loans |
$ | 650,999 | $ | 1,361 | $ | 353,828 | $ | 281,320 | $ | 14,490 | ||||||||||
Interest payments (1) |
70,518 | 8,524 | 46,648 | 14,816 | 530 | |||||||||||||||
Tenant-related commitments |
11,522 | 7,850 | 3,672 | — | — | |||||||||||||||
Lease obligations |
35,682 | 76 | 1,510 | 1,190 | 32,906 | |||||||||||||||
Total |
$ | 768,721 | $ | 17,811 | $ | 405,658 | $ | 297,326 | $ | 47,926 | ||||||||||
| (1) | Contracted interest on the floating rate borrowings under our Unsecured Credit Facility was calculated based on the balance and interest rate at September 30, 2024. Contracted interest on our loans which we have applied interest rate swaps was calculated based on the swap rate fixing the SOFR component of the borrowing rates. |
| † | Filed herewith. |
| * | Compensatory Plan or arrangement. |
| By: | /s/ James Farrar | |||
| James Farrar | ||||
Chief Executive Officer and Director | ||||
(Principal Executive Officer) | ||||
| By: | /s/ Anthony Maretic | |||
| Anthony Maretic | ||||
Chief Financial Officer, Secretary and Treasurer | ||||
(Principal Financial Officer and Principal Accounting Officer) | ||||