Office Properties Income Trust Announces Fourth Quarter and Year End 2020 Results

Fourth Quarter Net Loss of $1.7 Million, or $0.03 Per Share

Fourth Quarter Normalized FFO of $61.8 Million, or $1.28 Per Share

Fourth Quarter CAD of $42.3 Million, or $0.88 Per Share, Increased 6.5% Year Over Year

Fourth Quarter Same Property Cash Basis NOI Increased 5.1% Year Over Year

Completed 2.0 Million Square Feet of Leasing in 2020 for a 6.9% Roll-up in Rents

NEWTON, Mass.–(BUSINESS WIRE)–Office Properties Income Trust (Nasdaq: OPI) today announced its financial results for the quarter and year ended December 31, 2020.

Christopher Bilotto, President and Chief Operating Officer of OPI, made the following statement:

We are pleased with OPI’s continued solid performance throughout 2020. Fourth quarter Normalized FFO per share and Same Property Cash Basis NOI growth both exceeded expectations and CAD increased by 6.5% year over year. Monthly rent collections continued to average approximately 99% through the fourth quarter and we have collected nearly 79% of granted rent deferrals. Our leasing activity showed solid performance throughout the year, completing two million square feet of activity with an average lease term of over seven years and a roll-up in rents of 6.9%.

Heading into 2021, our asset and property management teams remain focused on proactive tenant engagement to drive leasing and retention, along with management of property operations as tenants continue to advance their re-entry plans. With strong liquidity, including full availability on our $750 million revolving credit facility, we are well positioned to execute on growth activity through property acquisitions and select development and repositioning opportunities across our portfolio.”

Quarterly Results:

 

Three Months Ended December 31,

 

2020

 

2019

Financial

(dollars in thousands, except per share data)

Net income (loss)

($1,664)

 

$65,029

Net income (loss) per share

($0.03)

 

$1.35

Normalized FFO per share

$1.28

 

$1.38

CAD per share

$0.88

 

$0.83

Same Property Cash Basis NOI

$92,515

 

$88,052

  • Net loss for the quarter ended December 31, 2020 was $1.7 million, or $0.03 per diluted share, compared to net income of $65.0 million, or $1.35 per diluted share, for the quarter ended December 31, 2019. Net income for the quarter ended December 31, 2019 includes a $71.6 million, or $1.49 per diluted share, gain on sale of real estate, partially offset by an $8.2 million, or $0.17 per diluted share, loss on impairment of real estate.
  • Normalized funds from operations, or Normalized FFO, and cash available for distribution, or CAD, for the quarter ended December 31, 2020 were $61.8 million, or $1.28 per diluted share, and $42.3 million, or $0.88 per diluted share, respectively, compared to Normalized FFO and CAD for the quarter ended December 31, 2019 of $66.4 million, or $1.38 per diluted share, and $39.7 million, or $0.83 per diluted share, respectively.
  • Same Property cash basis net operating income, or Cash Basis NOI, increased 5.1% for the quarter ended December 31, 2020 compared to the quarter ended December 31, 2019. The increase in Same Property Cash Basis NOI is due to an increase in cash received from contractual rents of $3.0 million as a result of free rent expiring and roll-ups in rent related to leasing activity in 2020, as well as a $2.2 million decrease in operating expenses, mainly driven by cost savings initiatives in response to the COVID-19 pandemic, offset by a decline in parking revenue of $0.8 million as a result of the COVID-19 pandemic.
  • Leasing activity for the quarter ended December 31, 2020 was as follows:
 

 

Three Months Ended

December 31, 2020

Leasing activity for new and renewal leases (rentable square feet)

139,000

Weighted average rental rate change (by rentable square feet)

(7.0%)

Weighted average lease term (by rentable square feet)

9.7 years

Leasing concessions and capital commitments (per square foot per lease year)

$5.73

 

 

As of

Percent Leased

December 31, 2020

 

September 30, 2020

 

December 31, 2019

All properties

91.2%

 

91.2%

 

92.4%

Same properties

92.1%

 

92.3%

 

93.3%

Reconciliations of net income (loss) determined in accordance with U.S. generally accepted accounting principles, or GAAP, to funds from operations, or FFO, Normalized FFO, CAD, net operating income, or NOI, and Cash Basis NOI, and a reconciliation of NOI to Same Property NOI and Same Property Cash Basis NOI, for the quarters ended December 31, 2020 and 2019 appear later in this press release.

Acquisition Activities:

  • In November 2020, OPI terminated a previously announced agreement to acquire three properties in Brookhaven, GA for a purchase price of $15.3 million.
  • In November 2020, OPI entered into an agreement to acquire a property adjacent to a property it owns in Boston, MA containing approximately 49,000 rentable square feet for a purchase price of $27.0 million, excluding acquisition related costs. This property is 59% leased with a weighted average lease term of 2.5 years. This acquisition is expected to occur before the end of the first quarter.
  • In December 2020, OPI acquired a property in Fort Mill, SC containing approximately 150,000 rentable square feet for a purchase price of $35.1 million, excluding acquisition related costs. This property is 100% leased to a single tenant with a remaining lease term of 10.8 years.

Disposition Activities:

  • As previously reported, in October 2020, OPI sold a four property business park located in Fairfax, VA containing approximately 171,000 rentable square feet for a sales price of $25.1 million, excluding closing costs.
  • In January 2021, OPI sold a warehouse facility adjacent to a property it owns in Kansas City, MO containing approximately 10,000 rentable square feet for a sales price of $0.8 million, excluding closing costs.
  • Also in January 2021, OPI sold a property located in Richmond, VA containing approximately 311,000 rentable square feet for a sales price of $130.0 million, excluding closing costs.
  • In February 2021, OPI entered into an agreement to sell a property located in Huntsville, AL containing approximately 1,371,000 rentable square feet for a sales price of $39.0 million, excluding closing costs. This sale is expected to occur before the end of the second quarter.

Liquidity:

  • As of December 31, 2020, OPI had $42.0 million of cash and cash equivalents and $750.0 million available to borrow under its unsecured revolving credit facility.

COVID-19 Update:

  • OPI has granted temporary rent assistance to date totaling $2.5 million to 19 tenants, pursuant to deferred payment plans. These tenants are required to pay, in most cases, one month of rent over a 12-month period, all of which have commenced. The $2.5 million of granted temporary rent assistance is detailed as follows:

 

 

Granted Rent

Deferrals

 

Percentage of

Total Granted

Rent Deferrals

 

Percentage of

Quarterly

Contractual Rents

Quarter ended June 30, 2020

 

$

2,047,100

 

 

80.5%

 

1.5%

Quarter ended September 30, 2020

 

497,057

 

 

19.5%

 

0.3%

Quarter ended December 31, 2020

 

500

 

 

—%

 

—%

Future deferrals

 

1,028

 

 

—%

 

—%

Total granted deferrals

 

$

2,545,685

 

 

100.0%

 

0.9%

Less: Amounts repaid (1)

 

(1,998,752)

 

 

78.5%

 

 

Outstanding granted rent deferral balance

 

$

546,933

 

 

21.5%

 

 

(1)

Represents rent deferrals repaid as of February 16, 2021.

  • For the quarter ended December 31, 2020, OPI collected approximately 99% of contractual rent obligations before and after giving effect to such rent deferrals.

Conference Call:

On February 19, 2021 at 10:00 a.m. Eastern Time, President and Chief Operating Officer, Christopher Bilotto, and Chief Financial Officer and Treasurer, Matthew Brown, will host a conference call to discuss OPI’s fourth quarter 2020 financial results.

The conference call telephone number is (877) 328-1172. Participants calling from outside the United States and Canada should dial (412) 317-5418. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. on Friday, February 26, 2021. To access the replay, dial (412) 317-0088. The replay pass code is 10150782.

A live audio webcast of the conference call will also be available in a listen only mode on OPI’s website, at www.opireit.com. Participants wanting to access the webcast should visit OPI’s website about five minutes before the call. The archived webcast will be available for replay on OPI’s website following the call for about one week. The transcription, recording and retransmission in any way of OPI’s fourth quarter conference call are strictly prohibited without the prior written consent of OPI.

Supplemental Data:

A copy of OPI’s Fourth Quarter 2020 Supplemental Operating and Financial Data is available for download at OPI’s website, www.opireit.com. OPI’s website is not incorporated as part of this press release.

Non-GAAP Financial Measures:

OPI presents certain “non-GAAP financial measures” within the meaning of applicable rules of the Securities and Exchange Commission, or SEC, including FFO, Normalized FFO, CAD, NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income (loss) as indicators of OPI’s operating performance or as measures of OPI’s liquidity. These measures should be considered in conjunction with net income (loss) as presented in OPI’s consolidated statements of income (loss). OPI considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a real estate investment trust, or REIT, along with net income (loss). OPI believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of OPI’s operating performance between periods and with other REITs and, in the case of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI reflecting only those income and expense items that are generated and incurred at the property level may help both investors and management to understand the operations of OPI’s properties.

Please see the pages attached hereto for a more detailed statement of OPI’s operating results and financial condition and for an explanation of OPI’s calculation of FFO, Normalized FFO, CAD, NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI and a reconciliation of those amounts to amounts determined in accordance with GAAP.

OPI is a REIT focused on owning, operating and leasing properties primarily leased to single tenants and those with high credit quality characteristics such as government entities. OPI is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

 

Office Properties Income Trust

Consolidated Statements of Income (Loss)

(amounts in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2020

 

2019

 

2020

 

2019

Rental income

 

$

146,625

 

 

$

160,184

 

 

$

587,919

 

 

$

678,404

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Real estate taxes

 

16,418

 

 

18,354

 

 

65,119

 

 

73,717

 

Utility expenses

 

5,607

 

 

7,933

 

 

25,384

 

 

34,302

 

Other operating expenses

 

27,432

 

 

30,739

 

 

105,465

 

 

120,943

 

Depreciation and amortization

 

62,226

 

 

63,512

 

 

251,566

 

 

289,885

 

Loss on impairment of real estate (1)

 

 

 

8,150

 

 

2,954

 

 

22,255

 

Acquisition and transaction related costs (2)

 

232

 

 

 

 

232

 

 

682

 

General and administrative

 

7,071

 

 

7,271

 

 

28,443

 

 

32,728

 

Total expenses

 

118,986

 

 

135,959

 

 

479,163

 

 

574,512

 

 

 

 

 

 

 

 

 

 

Gain on sale of real estate (3)

 

33

 

 

71,593

 

 

10,855

 

 

105,131

 

Dividend income

 

 

 

 

 

 

 

1,960

 

Loss on equity securities, net (4)

 

 

 

 

 

 

 

(44,007)

 

Interest and other income

 

41

 

 

198

 

 

779

 

 

1,045

 

Interest expense (including net amortization of debt premiums, discounts and issuance costs of $2,431, $2,476, $9,593 and $10,740, respectively)

 

(28,842)

 

 

(30,032)

 

 

(108,303)

 

 

(134,880)

 

Loss on early extinguishment of debt (5)

 

 

 

 

 

(3,839)

 

 

(769)

 

Income (loss) before income tax expense and equity in net losses of investees

 

(1,129)

 

 

65,984

 

 

8,248

 

 

32,372

 

Income tax expense

 

(157)

 

 

(269)

 

 

(377)

 

 

(778)

 

Equity in net losses of investees

 

(378)

 

 

(686)

 

 

(1,193)

 

 

(1,259)

 

Net income (loss)

 

$

(1,664)

 

 

$

65,029

 

 

$

6,678

 

 

$

30,335

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding (basic and diluted)

 

48,161

 

 

48,094

 

 

48,124

 

 

48,062

 

 

 

 

 

 

 

 

 

 

Per common share amounts (basic and diluted):

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(0.03)

 

 

$

1.35

 

 

$

0.14

 

 

$

0.63

 

See Notes on pages 6 and 7.

 

Office Properties Income Trust

Funds from Operations, Normalized Funds from Operations and Cash Available for Distribution

(amounts in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2020

 

2019

 

2020

 

2019

Calculation of FFO, Normalized FFO and CAD (6)(7):

 

 

 

 

 

 

Net income (loss)

 

$

(1,664)

 

 

$

65,029

 

 

$

6,678

 

 

$

30,335

 

Add (less): Depreciation and amortization:

 

 

 

 

 

 

 

 

Consolidated properties

 

62,226

 

 

63,512

 

 

251,566

 

 

289,885

 

Unconsolidated joint venture properties

 

1,081

 

 

1,345

 

 

4,803

 

 

5,903

 

Loss on impairment of real estate (1)

 

 

 

8,150

 

 

2,954

 

 

22,255

 

Gain on sale of real estate (3)

 

(33)

 

 

(71,593)

 

 

(10,855)

 

 

(105,131)

 

Loss on equity securities, net (4)

 

 

 

 

 

 

 

44,007

 

FFO

 

61,610

 

 

66,443

 

 

255,146

 

 

287,254

 

Add (less): Acquisition and transaction related costs (2)

 

232

 

 

 

 

232

 

 

682

 

Loss on early extinguishment of debt (5)

 

 

 

 

 

3,839

 

 

769

 

Normalized FFO

 

61,842

 

 

66,443

 

 

259,217

 

 

288,705

 

Add (less): Non-cash expenses (8)

 

607

 

 

76

 

 

2,027

 

 

1,974

 

Distributions from unconsolidated joint ventures

 

204

 

 

397

 

 

612

 

 

2,370

 

Depreciation and amortization – unconsolidated joint ventures

 

(1,081)

 

 

(1,345)

 

 

(4,803)

 

 

(5,903)

 

Equity in net losses of investees

 

378

 

 

686

 

 

1,193

 

 

1,259

 

Loss on early extinguishment of debt settled in cash

 

 

 

 

 

(1,138)

 

 

 

Non-cash straight line rent adjustments included in rental income

 

(3,116)

 

 

(8,142)

 

 

(16,079)

 

 

(27,507)

 

Lease value amortization included in rental income

 

1,291

 

 

82

 

 

5,440

 

 

2,710

 

Net amortization of debt premiums, discounts and issuance costs

 

2,431

 

 

2,476

 

 

9,593

 

 

10,740

 

Recurring capital expenditures

 

(20,212)

 

 

(20,929)

 

 

(76,252)

 

 

(85,742)

 

CAD (7)

 

$

42,344

 

 

$

39,744

 

 

$

179,810

 

 

$

188,606

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding (basic and diluted)

 

48,161

 

48,094

 

48,124

 

48,062

 

 

 

 

 

 

 

 

 

Per common share amounts (basic and diluted):

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(0.03)

 

 

$

1.35

 

 

$

0.14

 

 

$

0.63

 

FFO

 

$

1.28

 

 

$

1.38

 

 

$

5.30

 

 

$

5.98

 

Normalized FFO

 

$

1.28

 

 

$

1.38

 

 

$

5.39

 

 

$

6.01

 

CAD

 

$

0.88

 

 

$

0.83

 

 

$

3.74

 

 

$

3.92

 

Distributions declared per share

 

$

0.55

 

 

$

0.55

 

 

$

2.20

 

 

$

2.20

 

(1)

Loss on impairment of real estate for the year ended December 31, 2020 represents an adjustment of $2,954 to reduce the carrying value of four properties to their estimated fair value less costs to sell during the nine months ended September 30, 2020. Loss on impairment of real estate for the three months ended December 31, 2019 includes an adjustment of $9,739 to reduce the carrying value of one property to its estimated fair value less costs to sell and a $250 loss on impairment of real estate related to the sale of three properties, offset by the recovery of impairment losses recorded in previous periods of $1,839 related to the sale of four properties. Loss on impairment of real estate for the year ended December 31, 2019 also includes adjustments totaling $11,479 to reduce the carrying value of 10 properties to their estimated fair value less costs to sell and $2,626 of losses on impairment of real estate related to the sale of 35 properties during the nine months ended September 30, 2019.

 

(2)

Acquisition and transaction related costs for the three months and year ended December 31, 2020 represent costs related to an acquisition opportunity OPI terminated in November 2020. Acquisition and transaction related costs for the year ended December 31, 2019 consist of post-merger activity costs incurred in connection with OPI’s acquisition of Select Income REIT on December 31, 2018 in a merger transaction and other related transactions.

 

(3)

Gain on sale of real estate for the year ended December 31, 2020 represents a $10,855 net gain on the sale of 10 properties. Gain on sale of real estate for the three months ended December 31, 2019 represents a $71,593 net gain on the sale of seven properties. Gain on sale of real estate for the year ended December 31, 2019 also includes a $33,538 net gain on the sale of three properties during the nine months ended September 30, 2019.

 

(4)

Loss on equity securities, net represents a realized loss for the year ended December 31, 2019 from the sale of OPI’s 2.8 million shares of The RMR Group Inc., or RMR Inc., common stock on July 1, 2019.

 

(5)

Loss on early extinguishment of debt for the year ended December 31, 2020 includes prepayment fees related to the repayment of two mortgage notes, write offs of the unamortized portion of certain discounts and issuance costs resulting from the early repayment of debt and a loss related to the settlement of a mortgage note receivable in connection with a property OPI sold in 2016. Loss on early extinguishment of debt for the year ended December 31, 2019 includes write offs of the unamortized portion of certain discounts and issuance costs resulting from the early repayment of debt.

 

(6)

OPI calculates FFO and Normalized FFO as shown above. FFO is calculated on the basis defined by The National Association of Real Estate Investment Trusts, which is net income (loss), calculated in accordance with GAAP, plus real estate depreciation and amortization of consolidated properties and its proportionate share of the real estate depreciation and amortization of unconsolidated joint venture properties, but excluding impairment charges on real estate assets, any gain or loss on sale of real estate and equity securities, as well as certain other adjustments currently not applicable to OPI. In calculating Normalized FFO, OPI adjusts for the other items shown above and includes business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as an expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of OPI’s core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. FFO and Normalized FFO are among the factors considered by OPI’s Board of Trustees when determining the amount of distributions to OPI’s shareholders. Other factors include, but are not limited to, requirements to maintain OPI’s qualification for taxation as a REIT, limitations in OPI’s credit agreement and public debt covenants, the availability to OPI of debt and equity capital, OPI’s expectation of its future capital requirements and operating performance and OPI’s expected needs for and availability of cash to pay its obligations. Other real estate companies and REITs may calculate FFO and Normalized FFO differently than OPI does.

 

(7)

OPI calculates CAD as shown above. OPI defines CAD as Normalized FFO minus recurring real estate related capital expenditures and other non-cash and non-recurring items. CAD is among the factors considered by OPI’s Board of Trustees when determining the amount of distributions to its shareholders. Other real estate companies and REITs may calculate CAD differently than OPI does.

 

(8)

Non-cash expenses include equity based compensation, adjustments recorded to capitalize interest expense and amortization of the liability for the amount by which the estimated fair value for accounting purposes exceeded the price OPI paid for its former investment in RMR Inc. common stock in June 2015. This liability is being amortized on a straight line basis through December 31, 2035 as an allocated reduction to business management fee expense and property management fee expense, which are included in general and administrative and other operating expenses, respectively.

Office Properties Income Trust

Calculation and Reconciliation of NOI, Cash Basis NOI, Same Property NOI and Same Property Cash Basis NOI(1)

(amounts in thousands)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2020

 

2019

 

2020

 

2019

Calculation of NOI and Cash Basis NOI:

 

 

 

 

Rental income

 

$

146,625

 

 

$

160,184

 

 

$

587,919

 

 

$

678,404

 

Property operating expenses

 

(49,457)

 

 

(57,026)

 

 

(195,968)

 

 

(228,962)

 

NOI

 

97,168

 

 

103,158

 

 

391,951

 

 

449,442

 

Non-cash straight line rent adjustments included in rental income

 

(3,116)

 

 

(8,142)

 

 

(16,079)

 

 

(27,507)

 

Lease value amortization included in rental income

 

1,291

 

 

82

 

 

5,440

 

 

2,710

 

Lease termination fees included in rental income

 

(90)

 

 

(2)

 

 

(98)

 

 

(9,185)

 

Non-cash amortization included in property operating expenses (2)

 

(121)

 

 

(121)

 

 

(484)

 

 

(484)

 

Cash Basis NOI

 

$

95,132

 

 

$

94,975

 

 

$

380,730

 

 

$

414,976

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income (Loss) to NOI and Cash Basis NOI:

Net income (loss)

 

$

(1,664)

 

 

$

65,029

 

 

$

6,678

 

 

$

30,335

 

Equity in net losses of investees

 

378

 

 

686

 

 

1,193

 

 

1,259

 

Income tax expense

 

157

 

 

269

 

 

377

 

 

778

 

Income (loss) before income tax expense and equity in net losses of investees

 

(1,129)

 

 

65,984

 

 

8,248

 

 

32,372

 

Loss on early extinguishment of debt

 

 

 

 

 

3,839

 

 

769

 

Interest expense

 

28,842

 

 

30,032

 

 

108,303

 

 

134,880

 

Interest and other income

 

(41)

 

 

(198)

 

 

(779)

 

 

(1,045)

 

Loss on equity securities, net

 

 

 

 

 

 

 

44,007

 

Dividend income

 

 

 

 

 

 

 

(1,960)

 

Gain on sale of real estate

 

(33)

 

 

(71,593)

 

 

(10,855)

 

 

(105,131)

 

General and administrative

 

7,071

 

 

7,271

 

 

28,443

 

 

32,728

 

Acquisition and transaction related costs

 

232

 

 

 

 

232

 

 

682

 

Loss on impairment of real estate

 

 

 

8,150

 

 

2,954

 

 

22,255

 

Depreciation and amortization

 

62,226

 

 

63,512

 

 

251,566

 

 

289,885

 

NOI

 

97,168

 

 

103,158

 

 

391,951

 

 

449,442

 

Non-cash amortization included in property operating expenses (2)

 

(121)

 

 

(121)

 

 

(484)

 

 

(484)

 

Lease termination fees included in rental income

 

(90)

 

 

(2)

 

 

(98)

 

 

(9,185)

 

Lease value amortization included in rental income

 

1,291

 

 

82

 

 

5,440

 

 

2,710

 

Non-cash straight line rent adjustments included in rental income

 

(3,116)

 

 

(8,142)

 

 

(16,079)

 

 

(27,507)

 

Cash Basis NOI

 

$

95,132

 

 

$

94,975

 

 

$

380,730

 

 

$

414,976

 

 

 

 

 

 

 

 

 

 

Reconciliation of NOI to Same Property NOI (3) (4):

 

 

 

 

 

 

 

 

Rental income

 

$

146,625

 

 

$

160,184

 

 

$

587,919

 

 

$

678,404

 

Property operating expenses

 

(49,457)

 

 

(57,026)

 

 

(195,968)

 

 

(228,962)

 

NOI

 

97,168

 

 

103,158

 

 

391,951

 

 

449,442

 

Less: NOI of properties not included in same property results

 

(2,096)

 

 

(7,010)

 

 

(10,053)

 

 

(63,454)

 

Same Property NOI

 

$

95,072

 

 

$

96,148

 

 

$

381,898

 

 

$

385,988

 

 

 

 

 

 

 

 

 

 

Calculation of Same Property Cash Basis NOI (3) (4):

 

 

 

 

 

 

 

 

Same Property NOI

 

$

95,072

 

 

$

96,148

 

 

$

381,898

 

 

$

385,988

 

Add: Lease value amortization included in rental income

 

694

 

 

(482)

 

 

3,071

 

 

604

 

Less: Non-cash straight line rent adjustments included in rental income

 

(3,044)

 

 

(7,503)

 

 

(15,061)

 

 

(25,468)

 

Lease termination fees included in rental income

 

(90)

 

 

(2)

 

 

(98)

 

 

(1,543)

 

Non-cash amortization included in property operating expenses (2)

 

(117)

 

 

(109)

 

 

(459)

 

 

(396)

 

Same Property Cash Basis NOI

 

$

92,515

 

 

$

88,052

 

 

$

369,351

 

 

$

359,185

 

Contacts

Olivia Snyder, Manager, Investor Relations

(617) 219-1410

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Author: dmnnewswire