Kilroy Realty Corporation Reports Third Quarter Financial Results

Oct 28, 2020 05:01 pm
LOS ANGELES -- 

Kilroy Realty Corporation (NYSE: KRC) today reported financial results for its third quarter ended September 30, 2020.

COVID-19 Pandemic Key Business Update

Operations

  • Collected 96% of contractual third quarter rent billings across all property types, including 98% from office and life science tenants. Excluding rent relief provided to certain tenants, collected 98% across all property types, including 98% from office and life science tenants
    • The collection rate for October across all property types was 94%, including 97% from office and life science tenants, as of the date of this release. Excluding rent relief provided to certain tenants, collected 95% across all property types, including 97% from office and life science tenants
  • Limited lease expiration exposure with an average of approximately 6.6% of total rentable square feet expiring per year through 2023

Balance Sheet / Liquidity Highlights

  • As of the date of this release, the company had approximately $1.4 billion of total liquidity comprised of approximately $685.0 million of cash and cash equivalents on hand and full availability under the company’s $750.0 million revolving credit facility
  • In August, completed a $425.0 million public offering of 12-year senior unsecured green bonds at 2.500% due November 2032
  • In August, fully repaid the company’s $150.0 million unsecured term loan facility
  • No material debt maturities until 2023, excluding the company’s revolving credit facility, which matures in the third quarter of 2022
  • Weighted average debt maturity of approximately seven and a half years

Development

  • $1.9 billion of projects under development
    • 90% leased across office and life science space
    • As of the date of this release, all in-process projects were under active construction
    • Remaining spending to complete the projects of approximately $550.0 million, fully funded with cash on hand

Third Quarter Highlights

Financial Results

  • Net income available to common stockholders per share of $0.42
  • Funds from operations available to common stockholders and unitholders (“FFO”) per share of $0.99
    • Both net income available to common stockholders per share and FFO per share included the following:
      • $0.02 charge against rental income due to tenant creditworthiness considerations as a result of the COVID-19 pandemic
  • Revenues increased to $228.3 million, net of the $1.8 million charge against rental income noted above
  • In August, announced an increase to the regular quarterly cash dividend to common stockholders by 3.1% to $0.500 per share; an annualized rate of $2.00 per share

Stabilized Portfolio

  • Stabilized portfolio was 92.2% occupied and 95.5% leased at September 30, 2020
  • Signed approximately 123,063 square feet of new or renewing leases
    • GAAP and cash rents increased approximately 32.1% and 14.6%, respectively, from prior levels

Development

  • During the quarter, commenced GAAP revenue recognition on an additional 136,000 square feet or 48% of our 285,000 square foot One Paseo office project in the Del Mar submarket of San Diego
    • As of September 30, 2020, recognizing GAAP revenue totaling 56% of the project
  • In July, completed construction on 146 residential units, the final phase of the residential development at our One Paseo mixed-use project in the Del Mar submarket of San Diego. The residential development is 51% leased and in lease-up
  • In July, transferred 9455 Towne Centre Drive, a 160,000 square foot development project located in the University Towne Center submarket of San Diego from the under construction phase to the tenant improvement phase. The project is 100% leased to a Fortune 50 publicly traded company

Results for the Quarter Ended September 30, 2020

For the third quarter ended September 30, 2020, KRC reported net income available to common stockholders of $49.0 million, or $0.42 per share, compared to $43.8 million, or $0.41 per share, in the third quarter of 2019. FFO in the third quarter of 2020 was $117.4 million, or $0.99 per share, compared to $109.2 million, or $1.01 per share, in the third quarter of 2019. Current period net income available to common stockholders and FFO per share included a $0.02 per share charge against rental income due to tenant creditworthiness considerations as a result of the COVID-19 pandemic.

All per share amounts in this report are presented on a diluted basis.

Conference Call and Audio Webcast

KRC management will discuss third quarter results and the current business environment during the company’s October 29, 2020 earnings conference call. The call will begin at 10:00 a.m. Pacific Time and last approximately one hour. Those interested in listening via the Internet can access the conference call at https://services.choruscall.com/links/krc201029.html. It may be necessary to download audio software to hear the conference call. Those interested in listening via telephone can access the conference call at (866) 312-7299. International callers should dial (412) 317-1070. In order to bypass speaking to the operator on the day of the call, please pre-register anytime at http://dpregister.com/10136128. A replay of the conference call will be available via telephone on October 29, 2020 through November 5, 2020 by dialing (877) 344-7529 and entering passcode 10136128. International callers should dial (412) 317-0088 and enter the same passcode. The replay will also be available on our website at http://investors.kilroyrealty.com/shareholders/conference-calls/default.aspx.

About Kilroy Realty Corporation

Kilroy Realty Corporation (NYSE: KRC, the “company”, “KRC”) is a leading West Coast landlord and developer, with a major presence in San Diego, Greater Los Angeles, the San Francisco Bay Area, and the Pacific Northwest. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity, productivity and employee retention for some of the world’s leading technology, entertainment, life science and business services companies.

KRC is a publicly traded real estate investment trust (“REIT”) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office and mixed-use projects.

As of September 30, 2020, KRC’s stabilized portfolio totaled approximately 14.3 million square feet of primarily office and life science space that was 92.2% occupied and 95.5% leased. The company also had 808 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 85.0% and 37.5%, respectively. In addition, KRC had seven in-process development projects with an estimated total investment of $1.9 billion, totaling approximately 2.3 million square feet of office and life science space. The office and life science space was 90% leased.

A Leader in Sustainability and Commitment to Corporate Social Responsibility

KRC is listed on the Dow Jones Sustainability World Index and has been recognized by industry organizations around the world. KRC’s stabilized portfolio was 68% LEED certified and 40% Fitwel certified as of September 30, 2020.

The company has been recognized by GRESB, the Global Real Estate Sustainability Benchmark, as the sustainability leader in the Americas for six consecutive years. Other honors have included the National Association of Real Estate Investment Trust’s (NAREIT) Leader in the Light award for six consecutive years and ENERGY STAR Partner of the Year for seven years as well as ENERGY STAR’s highest honor of Sustained Excellence, for the past five years.

A big part of the company’s foundation is its commitment to enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. The company was named to Bloomberg’s 2020 Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation, and transparency.

More information is available at http://www.kilroyrealty.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated or implied in the forward-looking statements, and you should not rely on the forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants’ businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or enactment or implementations of, tax laws or other applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; our ability to maintain our status as a REIT; and uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our quarterly report on Form 10-Q for the period ending June 30, 2020 and in our annual report on Form 10-K for the year ended December 31, 2019 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent we are required to do so in connection with our ongoing requirements under federal securities laws.

KILROY REALTY CORPORATION

SUMMARY OF QUARTERLY RESULTS

(unaudited; in thousands, except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

Revenues

$

228,314

 

$

215,525

 

$

669,065

 

 

$

617,219

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

$

49,028

 

$

43,846

 

$

108,463

 

 

$

122,943

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

115,226

 

 

104,841

 

 

112,406

 

 

 

102,253

 

Weighted average common shares outstanding – diluted

 

115,668

 

 

105,360

 

 

112,876

 

 

 

102,872

 

 

 

 

 

 

 

 

 

Net income available to common stockholders per share – basic

$

0.42

 

$

0.41

 

$

0.95

 

 

$

1.19

 

Net income available to common stockholders per share – diluted

$

0.42

 

$

0.41

 

$

0.95

 

 

$

1.18

 

 

 

 

 

 

 

 

 

Funds From Operations (1)(2)

$

117,391

 

$

109,243

 

$

320,653

 

 

$

308,960

 

 

 

 

 

 

 

 

 

Weighted average common shares/units outstanding – basic (3)

 

118,306

 

 

107,981

 

 

115,529

 

 

 

105,400

 

Weighted average common shares/units outstanding – diluted (4)

 

118,747

 

 

108,500

 

 

115,999

 

 

 

106,020

 

 

 

 

 

 

 

 

 

Funds From Operations per common share/unit – basic (2)

$

0.99

 

$

1.01

 

$

2.78

 

 

$

2.93

 

Funds From Operations per common share/unit – diluted (2)

$

0.99

 

$

1.01

 

$

2.76

 

 

$

2.91

 

 

 

 

 

 

 

 

 

Common shares outstanding at end of period

 

 

 

 

 

115,247

 

 

 

106,012

 

Common partnership units outstanding at end of period

 

 

 

 

 

1,932

 

 

 

2,023

 

Total common shares and units outstanding at end of period

 

 

 

 

 

117,179

 

 

 

108,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

2020

 

September 30,

2019

Stabilized office portfolio occupancy rates: (5)

 

 

 

 

 

 

 

Greater Los Angeles

 

 

 

 

 

90.8

%

 

 

95.1

%

San Diego County

 

 

 

 

 

86.7

%

 

 

90.4

%

San Francisco Bay Area

 

 

 

 

 

94.2

%

 

 

89.1

%

Greater Seattle

 

 

 

 

 

94.7

%

 

 

97.2

%

Weighted average total

 

 

 

 

 

92.2

%

 

 

92.1

%

 

 

 

 

 

 

 

 

Total square feet of stabilized office properties owned at end of period: (5)

 

 

 

 

 

 

 

Greater Los Angeles

 

 

 

 

 

4,031

 

 

 

3,872

 

San Diego County

 

 

 

 

 

2,147

 

 

 

2,048

 

San Francisco Bay Area

 

 

 

 

 

6,350

 

 

 

5,600

 

Greater Seattle

 

 

 

 

 

1,802

 

 

 

1,802

 

Total

 

 

 

 

 

14,330

 

 

 

13,322

 

_______________

(1)

Reconciliation of Net income available to common stockholders to Funds From Operations available to common stockholders and unitholders and management statement on Funds From Operations are included after the Consolidated Statements of Operations.

(2)

Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.

(3)

Calculated based on weighted average shares outstanding including participating share-based awards (i.e. nonvested stock and certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

(4)

Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options and contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

(5)

Occupancy percentages and total square feet reported are based on the company’s stabilized office portfolio for the periods presented. Occupancy percentages and total square feet shown for September 30, 2019 include the office properties that were sold subsequent to September 30, 2019.

KILROY REALTY CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited; in thousands)

 

 

September 30, 2020

 

December 31, 2019

ASSETS

 

 

 

REAL ESTATE ASSETS:

 

 

 

Land and improvements

$

1,612,224

 

 

$

1,466,166

 

Buildings and improvements

 

6,535,637

 

 

 

5,866,477

 

Undeveloped land and construction in progress

 

1,938,923

 

 

 

2,296,130

 

Total real estate assets held for investment

 

10,086,784

 

 

 

9,628,773

 

Accumulated depreciation and amortization

 

(1,744,325

)

 

 

(1,561,361

)

Total real estate assets held for investment, net

 

8,342,459

 

 

 

8,067,412

 

 

 

 

 

Cash and cash equivalents

 

849,009

 

 

 

60,044

 

Restricted cash

 

16,300

 

 

 

16,300

 

Marketable securities

 

25,073

 

 

 

27,098

 

Current receivables, net

 

16,083

 

 

 

26,489

 

Deferred rent receivables, net

 

375,939

 

 

 

337,937

 

Deferred leasing costs and acquisition-related intangible assets, net

 

208,306

 

 

 

212,805

 

Right of use ground lease assets

 

95,733

 

 

 

96,348

 

Prepaid expenses and other assets, net

 

55,706

 

 

 

55,661

 

TOTAL ASSETS

$

9,984,608

 

 

$

8,900,094

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

LIABILITIES:

 

 

 

Secured debt, net

$

254,854

 

 

$

258,593

 

Unsecured debt, net

 

3,668,976

 

 

 

3,049,185

 

Unsecured line of credit

 

 

 

 

245,000

 

Accounts payable, accrued expenses and other liabilities

 

458,421

 

 

 

418,848

 

Ground lease liabilities

 

97,936

 

 

 

98,400

 

Accrued dividends and distributions

 

59,416

 

 

 

53,219

 

Deferred revenue and acquisition-related intangible liabilities, net

 

131,558

 

 

 

139,488

 

Rents received in advance and tenant security deposits

 

61,483

 

 

 

66,503

 

Total liabilities

 

4,732,644

 

 

 

4,329,236

 

 

 

 

 

EQUITY:

 

 

 

Stockholders’ Equity

 

 

 

Common stock

 

1,152

 

 

 

1,060

 

Additional paid-in capital

 

5,089,926

 

 

 

4,350,917

 

Distributions in excess of earnings

 

(122,936

)

 

 

(58,467

)

Total stockholders’ equity

 

4,968,142

 

 

 

4,293,510

 

Noncontrolling Interests

 

 

 

Common units of the Operating Partnership

 

83,226

 

 

 

81,917

 

Noncontrolling interests in consolidated property partnerships

 

200,596

 

 

 

195,431

 

Total noncontrolling interests

 

283,822

 

 

 

277,348

 

Total equity

 

5,251,964

 

 

 

4,570,858

 

TOTAL LIABILITIES AND EQUITY

$

9,984,608

 

 

$

8,900,094

 

KILROY REALTY CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

REVENUES

 

 

 

 

 

 

 

Rental income

$

227,122

 

 

$

212,321

 

 

$

664,111

 

 

$

609,332

 

Other property income

 

1,192

 

 

 

3,204

 

 

 

4,954

 

 

 

7,887

 

Total revenues

 

228,314

 

 

 

215,525

 

 

 

669,065

 

 

 

617,219

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Property expenses

 

39,236

 

 

 

41,308

 

 

 

116,048

 

 

 

117,993

 

Real estate taxes

 

23,868

 

 

 

19,998

 

 

 

67,924

 

 

 

56,563

 

Ground leases

 

2,119

 

 

 

2,049

 

 

 

6,766

 

 

 

6,135

 

General and administrative expenses

 

18,572

 

 

 

22,576

 

 

 

76,179

 

 

 

65,774

 

Leasing costs

 

986

 

 

 

1,192

 

 

 

3,772

 

 

 

5,599

 

Depreciation and amortization

 

71,863

 

 

 

69,230

 

 

 

226,318

 

 

 

203,617

 

Total expenses

 

156,644

 

 

 

156,353

 

 

 

497,007

 

 

 

455,681

 

 

 

 

 

 

 

 

 

OTHER (EXPENSES) INCOME

 

 

 

 

 

 

 

Interest income and other net investment gain

 

1,869

 

 

 

761

 

 

 

1,579

 

 

 

3,205

 

Interest expense

 

(19,468

)

 

 

(11,635

)

 

 

(49,796

)

 

 

(34,605

)

Gains on sales of depreciable operating properties

 

 

 

 

 

 

 

 

 

 

7,169

 

Total other (expenses) income

 

(17,599

)

 

 

(10,874

)

 

 

(48,217

)

 

 

(24,231

)

 

 

 

 

 

 

 

 

NET INCOME

 

54,071

 

 

 

48,298

 

 

 

123,841

 

 

 

137,307

 

 

 

 

 

 

 

 

 

Net income attributable to noncontrolling common units of the Operating Partnership

 

(785

)

 

 

(852

)

 

 

(1,857

)

 

 

(2,423

)

Net income attributable to noncontrolling interests in consolidated property partnerships

 

(4,258

)

 

 

(3,600

)

 

 

(13,521

)

 

 

(11,941

)

Total income attributable to noncontrolling interests

 

(5,043

)

 

 

(4,452

)

 

 

(15,378

)

 

 

(14,364

)

 

 

 

 

 

 

 

 

NET INCOME AVAILABLE TO COMMON STOCKHOLDERS

$

49,028

 

 

$

43,846

 

 

$

108,463

 

 

$

122,943

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

115,226

 

 

 

104,841

 

 

 

112,406

 

 

 

102,253

 

Weighted average common shares outstanding – diluted

 

115,668

 

 

 

105,360

 

 

 

112,876

 

 

 

102,872

 

 

 

 

 

 

 

 

 

Net income available to common stockholders per share – basic

$

0.42

 

 

$

0.41

 

 

$

0.95

 

 

$

1.19

 

Net income available to common stockholders per share – diluted

$

0.42

 

 

$

0.41

 

 

$

0.95

 

 

$

1.18

 

KILROY REALTY CORPORATION

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2020

 

2019

 

2020

 

2019

Net income available to common stockholders

$

49,028

 

 

$

43,846

 

 

$

108,463

 

 

$

122,943

 

Adjustments:

 

 

 

 

 

 

 

Net income attributable to noncontrolling common units of the Operating Partnership

 

785

 

 

 

852

 

 

 

1,857

 

 

 

2,423

 

Net income attributable to noncontrolling interests in consolidated property partnerships

 

4,258

 

 

 

3,600

 

 

 

13,521

 

 

 

11,941

 

Depreciation and amortization of real estate assets

 

70,422

 

 

 

67,985

 

 

 

218,841

 

 

 

199,967

 

Gains on sales of depreciable real estate

 

 

 

 

 

 

 

 

 

 

(7,169

)

Funds From Operations attributable to noncontrolling interests in consolidated property partnerships

 

(7,102

)

 

 

(7,040

)

 

 

(22,029

)

 

 

(21,145

)

Funds From Operations(1)(2)(3)

$

117,391

 

 

$

109,243

 

 

$

320,653

 

 

$

308,960

 

 

 

 

 

 

 

 

 

Weighted average common shares/units outstanding – basic (4)

 

118,306

 

 

 

107,981

 

 

 

115,529

 

 

 

105,400

 

Weighted average common shares/units outstanding – diluted (5)

 

118,747

 

 

 

108,500

 

 

 

115,999

 

 

 

106,020

 

 

 

 

 

 

 

 

 

Funds From Operations per common share/unit – basic (2)

$

0.99

 

 

$

1.01

 

 

$

2.78

 

 

$

2.93

 

Funds From Operations per common share/unit – diluted (2)

$

0.99

 

 

$

1.01

 

 

$

2.76

 

 

$

2.91

 

_______________

(1)

We calculate Funds From Operations available to common stockholders and common unitholders (“FFO”) in accordance with the 2018 Restated White Paper on FFO approved by the Board of Governors of NAREIT. The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. Our calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We also add back net income attributable to noncontrolling common units of the Operating Partnership because we report FFO attributable to common stockholders and common unitholders.

 

 

 

We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

 

 

 

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

 

 

 

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

 

 

(2)

Reported amounts are attributable to common stockholders, common unitholders, and restricted stock unitholders.

 

 

(3)

FFO available to common stockholders and unitholders includes amortization of deferred revenue related to tenant-funded tenant improvements of $4.4 million and $6.8 million for the three months ended September 30, 2020 and 2019, respectively, and $17.4 million and $14.9 million for the nine months ended September 30, 2020 and 2019, respectively.

 

 

(4)

Calculated based on weighted average shares outstanding including participating share-based awards (i.e. nonvested stock and certain time based restricted stock units) and assuming the exchange of all common limited partnership units outstanding.

 

 

(5)

Calculated based on weighted average shares outstanding including participating and non-participating share-based awards, dilutive impact of stock options and contingently issuable shares, and assuming the exchange of all common limited partnership units outstanding.

 

Tyler H. Rose
Executive Vice President
and Chief Financial Officer
(310) 481-8484
or
Michelle Ngo
Senior Vice President
and Treasurer
(310) 481-8581