EX-99.2 3 fsp-20211108xex99d2.htm EX-99.2

Exhibit 99.2

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300.~ www.fspreit.com

Third Quarter 2021
Table of Contents


	Page			Page

Company Information	3	Tenant Analysis and Leasing Activity
		Tenants by Industry		18
Key Financial Data		20 Largest Tenants with Annualized Rent and Remaining Term		19-20
Financial Highlights	4	Leasing Activity		21
Income Statements	5	Lease Expirations by Square Feet		22
Balance Sheets	6	Lease Expirations with Annualized Rent per Square Foot		23
Cash Flow Statements	7	Redevelopment Activity		24
Property Net Operating Income (NOI)	8	Capital Expenditures		25

Reconciliation		Transaction Activity		26
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate		27
Property NOI	11
		Net Asset Value Components		28
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO		29
		EBITDA and NOI		30
Owned and Managed Portfolio Overview	14-17	AFFO		31

All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP’s current expectations include adverse changes in general economic or local market conditions, including as a result of the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, uncertainty relating to the completion and timing of the disposition of properties under agreement, any inability to dispose of other properties on acceptable terms and any delays in the timing of any such anticipated dispositions, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

			Dominion Towers, Denver, CO

September 30, 2021| Page 2


	Company Information

Overview		Snapshot (as of September 30, 2021)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. FSP’s real estate operations include property acquisitions and dispositions, short-term financing, leasing, development and asset management.		Corporate Headquarters	Wakefield, MA
				Fiscal Year-End	31-Dec
				Total Properties	27 (1)
				Total Square Feet	7.8 Million (1)
				Trading Symbol	FSP
				Exchange	NYSE American
				Common Shares Outstanding	105,632,725
				Quarterly Dividend	$0.09
Our Business		Dividend Yield	7.8%
As of September 30, 2021, the Company owned and operated a portfolio of real estate consisting of 26 operating properties, one redevelopment property and two managed Sponsored REITs. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons.		Total Market Capitalization	$1.2 Billion (2)
				Insider Holdings	4.89%


Management Team

George J. Carter	Jeffrey B. Carter
Chief Executive Officer and	President and Chief Investment
Chairman of the Board	Officer

John G. Demeritt	Scott H. Carter
Executive Vice President, Chief	Executive Vice President, General
Financial Officer and Treasurer	Counsel and Secretary

John F. Donahue	Eriel Anchondo
Executive Vice President	Executive Vice President and Chief Operating Officer	Pershing Park Plaza, Atlanta, GA

Inquiries
Inquiries should be directed to: Georgia Touma
877.686.9496 or InvestorRelations@fspreit.com (1) Includes both operating and redevelopment properties. (2) Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

September 30, 2021| Page 3


	Summary of Financial Highlights


(in thousands except per share amounts, SF & number of properties)
	30-Sep-21		30-Jun-21		31-Mar-21		31-Dec-20		30-Sep-20
Income Items:
Rental revenue	$	50,326	$	55,722	$	58,623	$	59,408	$	61,834
Total revenue		50,802		56,145		59,039		59,810		62,247
Net income (loss)		4,456		16,149		(6,460)		37,440		(1,679)
Adjusted EBITDA (a)*		22,900		24,930		26,556		26,409		29,334
FFO*		14,797		14,722		18,005		17,466		20,446
AFFO*		4,555		4,880		4,384		4,867		3,452

Per Share Data:
EPS	$	0.04	$	0.15	$	(0.06)	$	0.35	$	(0.02)
FFO*	$	0.14	$	0.14	$	0.17	$	0.16	$	0.19
AFFO*	$	0.04	$	0.05	$	0.04	$	0.05	$	0.03
Weighted Average Shares (diluted)		106,905		107,359		107,328		107,328		107,328
Closing share price	$	4.64	$	5.26	$	5.45	$	4.37	$	3.66
Dividend declared	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09

Balance Sheet Items:
Real estate, net	$	1,344,692	$	1,413,547	$	1,601,613	$	1,602,016	$	1,649,649
Other assets, net		161,837		187,068		187,820		191,168		190,372
Total assets, net		1,506,529		1,600,615		1,789,433		1,793,184		1,840,021
Total liabilities, net		751,456		833,930		1,033,849		1,025,093		1,102,556
Shareholders' equity		755,073		766,685		755,584		768,091		737,465

Market Capitalization and Debt:
Total Market Capitalization (b)	$	1,165,136	$	1,329,896	$	1,532,439	$	1,392,524	$	1,392,821
Total debt outstanding (excluding unamortized financing costs)	$	675,000	$	765,000	$	947,500	$	923,500	$	1,000,000
Debt to Total Market Capitalization		57.9%		57.5%		61.8%		66.3%		71.8%
Net Debt to Adjusted EBITDA ratio (a)*		7.3		7.4		8.9		8.7		8.5

Operating Properties Leasing Statistics (c):
Operating properties assets		26		29		33		32		32
Operating properties total SF		7,671,275		8,228,148		9,548,810		9,331,489		9,526,822
Operating properties % leased		80.0%		79.5%		81.9%		85.0%		85.6%

(a)

Includes a $3,084 (or $12,336 annualized) charge during the three months ended December 31, 2020 from a lease write-off of a tenant in the travel industry that filed for bankruptcy on December 21, 2020, and includes accrued rent (all of which was included within rental revenue). Management believes excluding the impact of this write-off may be more useful in making period to period comparisons of our leverage ratio, and if such write-off were excluded, our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.

(b)	Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.

(c)	Excludes redevelopment properties.

*	See pages 9 & 10 for reconciliations of Net income or loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

September 30, 2021| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)


							For the										For the
	For the Three Months Ended						Nine Months Ended		For the Three Months Ended								Year Ended
	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Revenue:
Rental	$	58,623	$	55,722	$	50,326	$	164,671	$	62,567	$	60,398	$	61,834	$	59,408	$	244,207
Related party revenue:
Management fees and interest income from loans		410		417		419		1,246		403		405		400		402		1,610
Other		6		6		57		69		13		5		13		—		31
Total revenue		59,039		56,145		50,802		165,986		62,983		60,808		62,247		59,810		245,848

Expenses:
Real estate operating expenses		15,939		15,352		14,373		45,664		17,298		15,470		16,730		17,442		66,940
Real estate taxes and insurance		12,366		11,895		10,200		34,461		11,762		12,307		12,279		12,042		48,390
Depreciation and amortization		24,381		19,136		18,862		62,379		22,338		22,245		22,076		21,899		88,558
General and administrative		4,146		3,962		3,749		11,857		3,525		3,817		3,817		3,838		14,997
Interest		8,600		10,054		7,928		26,582		9,063		8,980		8,953		9,030		36,026
Total expenses		65,432		60,399		55,112		180,943		63,986		62,819		63,855		64,251		254,911

Loss on extinguishment of debt		—		(167)		(236)		(403)		—		—		—		—		—
Gain on sale of properties, net		—		20,626		8,632		29,258		—		—		—		41,928		41,928
Income (loss) before taxes on income and equity in income of non-consolidated REITs		(6,393)		16,205		4,086		13,898		(1,003)		(2,011)		(1,608)		37,487		32,865
Tax expense on income		67		56		51		174		68		64		71		47		250
Equity in income of non-consolidated REITs		—		—		421		421		—		—		—		—		—

Net income (loss)	$	(6,460)	$	16,149	$	4,456	$	14,145	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Weighted average number of shares outstanding, basic and diluted		107,328		107,359		106,905		107,196		107,269		107,287		107,328		107,328		107,303

Net income (loss) per share, basic and diluted	$	(0.06)	$	0.15	$	0.04	$	0.13	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30

September 30, 2021| Page 5

$ in thousands, except per share amounts)

Condensed Consolidated Balance Sheets

(in thousands)


	March 31,		June 30,		September 30,		March 31,		June 30,		September 30,		December 31,
	2021		2021		2021		2020		2020		2020		2020
Assets:
Real estate assets:
Land	$	189,155	$	170,377	$	161,767	$	191,578	$	191,578	$	191,578	$	189,155
Buildings and improvements		1,954,838		1,731,690		1,630,729		1,941,952		1,964,308		1,983,979		1,938,629
Fixtures and equipment		13,308		11,643		11,727		11,917		12,250		12,714		12,949
		2,157,301		1,913,710		1,804,223		2,145,447		2,168,136		2,188,271		2,140,733
Less accumulated depreciation		555,688		500,163		459,531		506,251		522,238		538,622		538,717
Real estate assets, net		1,601,613		1,413,547		1,344,692		1,639,196		1,645,898		1,649,649		1,602,016

Acquired real estate leases, net		25,836		21,932		19,864		37,270		34,022		31,011		28,206
Cash, cash equivalents and restricted cash		4,113		24,180		9,731		17,283		2,890		4,840		4,150
Tenant rent receivables, net		4,337		3,116		2,681		3,609		4,192		4,007		7,656
Straight-line rent receivable, net		69,743		61,475		58,132		68,317		69,062		71,033		67,789
Prepaid expenses and other assets		5,873		5,405		5,547		7,486		6,506		6,538		5,752
Related party mortgage loan receivable		21,000		21,000		21,000		21,000		21,000		21,000		21,000
Office computers and furniture, net of accumulated depreciation		147		167		153		215		196		178		163
Deferred leasing commissions, net		56,771		49,793		44,729		53,251		51,669		51,765		56,452
Total assets	$	1,789,433	$	1,600,615	$	1,506,529	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

Liabilities and Stockholders’ Equity:
Liabilities:
Bank note payable	$	27,500	$	—	$	—	$	30,000	$	30,000	$	30,000	$	3,500
Term loan payable, net of unamortized financing costs		717,668		563,151		473,648		766,124		766,493		766,863		717,323
Series A & Series B Senior Notes		199,219		199,260		199,301		199,055		199,096		199,137		199,178
Accounts payable and accrued expenses		63,456		50,799		59,309		57,076		55,712		69,905		72,058
Accrued compensation		1,390		2,309		3,482		1,335		2,278		3,634		3,918
Tenant security deposits		8,041		6,807		6,169		9,615		9,155		9,435		8,677
Lease liability		1,444		1,350		1,256		1,803		1,716		1,627		1,536
Other liabilities: derivative liabilities		13,698		9,425		7,583		23,035		22,958		20,157		17,311
Acquired unfavorable real estate leases, net		1,433		829		708		2,266		2,024		1,798		1,592
Total liabilities		1,033,849		833,930		751,456		1,090,309		1,089,432		1,102,556		1,025,093

Commitments and contingencies

Stockholders’ Equity:
Preferred stock		—		—		—		—		—		—		—
Common stock		11		11		11		11		11		11		11
Additional paid-in capital		1,357,131		1,357,469		1,349,225		1,356,794		1,357,131		1,357,131		1,357,131
Accumulated other comprehensive loss		(13,698)		(9,425)		(7,583)		(23,035)		(22,958)		(20,157)		(17,311)
Accumulated distributions in excess of accumulated earnings		(587,860)		(581,370)		(586,580)		(576,452)		(588,181)		(599,520)		(571,740)
Total stockholders’ equity		755,584		766,685		755,073		757,318		746,003		737,465		768,091
Total liabilities and stockholders’ equity	$	1,789,433	$	1,600,615	$	1,506,529	$	1,847,627	$	1,835,435	$	1,840,021	$	1,793,184

September 30, 2021| Page 6

Condensed Consolidated Statements of Cash Flows

(in thousands)


		Nine Months Ended September 30,

		2021		2020
Cash flows from operating activities:
Net income (loss)	$	14,145	$	(4,825)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		64,390		68,859
Amortization of above and below market leases		(38)		(234)
Shares issued as compensation		338		337
Loss on extinguishment of debt		403		—
Gain on sale of properties, net		(29,258)		—
Equity in income from non-consolidated REITs		(421)		—
Distributions from non-consolidated REITs		421		—
Decrease in allowance for doubtful accounts and write-off of accounts receivable		—		(13)
Changes in operating assets and liabilities:
Tenant rent receivables		4,975		(143)
Straight-line rents		(3,103)		(2,636)
Lease acquisition costs		(1,666)		(1,516)
Prepaid expenses and other assets		(1,035)		(504)
Accounts payable and accrued expenses		(8,389)		2,527
Accrued compensation		(436)		234
Tenant security deposits		(2,508)		89
Payment of deferred leasing commissions		(10,857)		(6,168)
Net cash provided by operating activities		26,961		56,007

Cash flows from investing activities:
Property improvements, fixtures and equipment		(55,008)		(61,989)
Proceeds received on sale of properties		319,357		—
Net cash provided by (used in) investing activities		264,349		(61,989)

Cash flows from financing activities:
Distributions to stockholders		(28,985)		(28,968)
Stock repurchases		(8,244)		—
Borrowings under bank note payable		76,500		85,000
Repayments of bank note payable		(80,000)		(55,000)
Repayment of term loan payable		(245,000)		—
Net cash provided by (used in) financing activities		(285,729)		1,032
Net increase (decrease) in cash, cash equivalents and restricted cash		5,581		(4,950)
Cash, cash equivalents and restricted cash, beginning of period		4,150		9,790
Cash, cash equivalents and restricted cash, end of period	$	9,731	$	4,840

September 30, 2021| Page 7

Property Net Operating Income (NOI)* with

Same Store Comparison (in thousands)


	Rentable							Nine Months										Nine Months
	Square Feet	Three Months Ended						Ended		Three Months Ended								Ended		Inc		%
(in thousands)	or RSF	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		30-Sep-20		(Dec)		Change
Region
East	437	$	592	$	685	$	642	$	1,919	$	896	$	1,218	$	591	$	662	$	2,705	$	(786)	(29.1)	%
MidWest	1,000		3,139		3,184		3,470		9,793		3,412		3,062		3,000		3,141		9,474		319	3.4	%
South	3,202		9,555		9,207		8,482		27,244		10,312		9,975		10,387		7,143		30,674		(3,430)	(11.2)	%
West	2,625		10,369		9,901		10,144		30,414		11,463		11,211		10,975		11,006		33,649		(3,235)	(9.6)	%
Property NOI* from Operating Properties	7,264		23,655		22,977		22,738		69,370		26,083		25,466		24,953		21,952		76,502		(7,132)	(9.3)	%
Dispositions and Redevelopment Properties (a)	519		6,106		5,023		2,625		13,754		6,791		6,730		7,244		7,428		20,765		(7,011)	(5.2)	%
Property NOI*	7,783	$	29,761	$	28,000	$	25,363	$	83,124	$	32,874	$	32,196	$	32,197	$	29,380	$	97,267	$	(14,143)	(14.5)	%

Same Store		$	23,655	$	22,977	$	22,738	$	69,370	$	26,083	$	25,466	$	24,953	$	21,952	$	76,502	$	(7,132)	(9.3)	%

Less Nonrecurring
Items in NOI* (b)			32		34		281		347		26		810		351		345		1,187		(840)	0.9	%

Comparative
Same Store		$	23,623	$	22,943	$	22,457	$	69,023	$	26,057	$	24,656	$	24,602	$	21,607	$	75,315	$	(6,292)	(8.4)	%

(a)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized. We also include properties that have been placed in service, but that do not have operating activity for all periods presented.

(b)	Nonrecurring items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability.

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

September 30, 2021| Page 8

FFO* & AFFO* Reconciliation

(in thousands, except per share amounts)


							Nine Months										Year
	Three Months Ended						Ended		Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	16,149	$	4,456	$	14,145	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615

Gain on sale of properties, net		—		(20,626)		(8,632)		(29,258)		—		—		—		(41,928)		(41,928)
Equity in income from non-consolidated REITs		—		—		(421)		(421)		—		—		—		—		—
FFO from non-consolidated REITs		—		—		421		421		—		—		—		—		—
Depreciation & amortization		24,349		19,130		18,861		62,340		22,265		22,170		21,989		21,820		88,244
NAREIT FFO*		17,889		14,653		14,685		47,227		21,194		20,095		20,310		17,332		78,931
Lease Acquisition costs		116		69		112		297		98		99		136		134		467
Funds From Operations (FFO)*	$	18,005	$	14,722	$	14,797	$	47,524	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398


Adjusted Funds From Operations (AFFO)*
Funds From Operations (FFO)*	$	18,005	$	14,722	$	14,797	$	47,524	$	21,292	$	20,194	$	20,446	$	17,466	$	79,398
Reverse FFO from non-consolidated REITs		—		—		(421)		(421)		—		—		—		—		—
Distributions from non-consolidated REITs		—		—		421		421		—		—		—		—		—
Amortization of deferred financing costs		707		853		854		2,414		748		726		727		824		3,025
Shares issued as compensation		—		338		—		338		—		337		—		—		337
Straight-line rent		(1,904)		(1,041)		(245)		(3,190)		(966)		(377)		(1,293)		951		(1,685)
Tenant improvements		(4,491)		(4,277)		(3,952)		(12,720)		(10,716)		(13,531)		(8,022)		(837)		(33,106)
Leasing commissions		(2,597)		(1,922)		(2,371)		(6,890)		(2,730)		(603)		(2,033)		(7,432)		(12,798)
Non-investment capex		(5,336)		(3,793)		(4,528)		(13,657)		(4,527)		(6,581)		(6,373)		(6,105)		(23,586)
Adjusted Funds From Operations (AFFO)*	$	4,384	$	4,880	$	4,555	$	13,819	$	3,101	$	165	$	3,452	$	4,867	$	11,585

Per Share Data:
EPS	$	(0.06)	$	0.15	$	0.04	$	0.13	$	(0.01)	$	(0.02)	$	(0.02)	$	0.35	$	0.30
FFO*		0.17		0.14		0.14		0.44		0.20		0.19		0.19		0.16		0.74
AFFO*		0.04		0.05		0.04		0.13		0.03		0.00		0.03		0.05		0.11

Weighted Average Shares (basic and diluted)		107,328		107,359		106,905		107,196		107,269		107,287		107,328		107,328		107,303

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

September 30, 2021| Page 9

EBITDA* & Adjusted EBITDA* Reconciliation

(in thousands, except ratio amounts)


							Nine Months										Year
	Three Months Ended						Ended		Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Net income (loss)	$	(6,460)	$	16,149	$	4,456	$	14,145	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Interest expense		8,600		10,054		7,928		26,582		9,063		8,980		8,953		9,030		36,026
Depreciation and amortization		24,349		19,130		18,861		62,340		22,265		22,170		21,989		21,820		88,244
Income taxes		67		56		51		174		68		64		71		47		250
EBITDA (1)*	$	26,556	$	45,389		31,296	$	103,241	$	30,325	$	29,139	$	29,334	$	68,337	$	157,135
Loss on extinguishment of debt		—		167		236		403		—		—		—		—		—
Gain on sale of properties, net		—		(20,626)		(8,632)		(29,258)		—		—		—		(41,928)		(41,928)
Adjusted EBITDA (1)*	$	26,556	$	24,930	$	22,900	$	74,386	$	30,325	$	29,139	$	29,334	$	26,409	$	115,207

Interest expense	$	8,600	$	10,054	$	7,928	$	26,582	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026
Scheduled principal payments		—		—		—		—		—		—		—		—		—
Interest and scheduled principal payments	$	8,600	$	10,054	$	7,928	$	26,582	$	9,063	$	8,980	$	8,953	$	9,030	$	36,026

Interest coverage ratio (1)		3.09		2.48		2.89		2.80		3.35		3.24		3.28		2.92		3.20

Debt service coverage ratio (1)		3.09		2.48		2.89		2.80		3.35		3.24		3.28		2.92		3.20

Debt excluding unamortized financing costs	$	947,500	$	765,000	$	675,000			$	1,000,000	$	1,000,000	$	1,000,000	$	923,500
Cash, cash equivalents and restricted cash		4,113		24,180		9,731				17,283		2,890		4,840		4,150
Net Debt (Debt less Cash, cash equivalents and restricted cash)	$	943,387	$	740,820	$	665,269			$	982,717	$	997,110	$	995,160	$	919,350

Adjusted EBITDA (1)*	$	26,556	$	24,930	$	22,900			$	30,325	$	29,139	$	29,334	$	26,409
Annualized	$	106,224	$	99,720	$	91,600			$	121,300	$	116,556	$	117,336	$	105,636

Net Debt-to-Adjusted EBITDA ratio (1)*		8.9		7.4		7.3				8.1		8.6		8.5		8.7

See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29. Amounts in the EBITDA and Adjusted EBITDA reconciliation do not reflect our proportionate share of interest expense, depreciation, amortization, income taxes, gains or losses on sales and debt from our investments in non-consolidated REITs, which are accounted for under the equity method.

(1) Includes a $3,084 (or $12,336 annualized) charge during the three months ended December 31, 2020 from a lease write-off of a tenant in the travel industry that filed for bankruptcy on December 21, 2020, and includes accrued rent (all of which was included within rental revenue). Management believes excluding the impact of this write-off may be more useful in making period to period comparisons of our leverage, Interest coverage and Debt service coverage ratios, and if such write-off were excluded, our Interest coverage ratio and our Debt service coverage ratio for the three months ended December 31, 2020 would have each been 3.26, and our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.

September 30, 2021| Page 10

Reconciliation of Net Income (Loss) to Property NOI*

(in thousands)


							Nine Months										Year
	Three Months Ended						Ended		Three Months Ended								Ended
	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20
Net income (loss)	$	(6,460)	$	16,149	$	4,456	$	14,145	$	(1,071)	$	(2,075)	$	(1,679)	$	37,440	$	32,615
Add (deduct):
Loss on extinguishment of debt		—		167		236		403		—		—		—		—		—
Gain on sale of properties, net		—		(20,626)		(8,632)		(29,258)		—		—		—		(41,928)		(41,928)
Management fee income		(465)		(403)		(380)		(1,248)		(478)		(446)		(484)		(464)		(1,872)
Depreciation and amortization		24,381		19,136		18,861		62,378		22,338		22,245		22,076		21,899		88,558
Amortization of above/below market leases		(32)		(6)		—		(38)		(73)		(75)		(86)		(79)		(313)
General and administrative		4,146		3,962		3,749		11,857		3,525		3,817		3,817		3,838		14,997
Interest expense		8,600		10,054		7,928		26,582		9,063		8,980		8,953		9,030		36,026
Interest income		(394)		(399)		(404)		(1,197)		(382)		(381)		(386)		(391)		(1,540)
Equity in income of non-consolidated REITs		—		—		(421)		(421)		—		—		—		—		—
Non-property specific items, net		(15)		(34)		(30)		(79)		(48)		131		(14)		35		104
Property NOI*	$	29,761	$	28,000	$	25,363	$	83,124	$	32,874	$	32,196	$	32,197	$	29,380	$	126,647

*	See Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

September 30, 2021| Page 11

Debt Summary

(in thousands)


		Maximum		Amount		Interest			Interest
	Maturity	Amount		Drawn at		Rate (a)			Rate at	Facility
	Date	of Loan		30-Sep-21		Components			30-Sep-21	Fee

BAML Revolver	12-Jan-22	$	600,000	$	—	Libor	+	1.55%	1.63%	0.30%
BAML Term Loan	12-Jan-23		400,000		310,000	Libor	+	1.75%	1.83%
BMO Term Loan Tranche B	31-Jan-24		165,000		165,000	2.39%	+	1.65%	4.04%
Series A Senior Notes	20-Dec-24		116,000		116,000				4.49%
Series B Senior Notes	20-Dec-27		84,000		84,000				4.76%

		$	1,365,000	$	675,000				3.19%

●

The table above is a summary of our debt. Additional information on our debt can be found in our Annual Report on Form 10-K for the year ended December 31, 2020, as updated in our Quarterly Reports on Form 10-Q, on file with the U.S. Securities and Exchange Commission.

●

We have the right to extend the maturity date of the BAML Revolver by two additional six-month periods, or until January 12, 2023, upon payment of a fee and satisfaction of certain customary conditions.

●

The BAML Revolver is subject to a 30 basis point facility fee based on our credit rating and, when applied to our availability of $600 million at September 30, 2021, would be $1.8 million annually as of September 30, 2021.

●

We incurred financing costs, some of which are deferred and amortized into interest expense during the terms of the loans we execute. We estimate the future annualized amount of the amortization included in interest expense will be approximately $2.1 million.

●

On June 4, 2021, we repaid the JPM Term Loan, which had $100 million outstanding, the BMO Term Loan Tranche A, which had $55 million outstanding, and the drawn balance of our BAML Revolver, which had $47.5 million outstanding.

●

On September 30, 2021, we repaid $90 million of the BAML Term Loan, which had $400 million outstanding.

(a)

Interest rate excludes amortization of deferred financing costs and facility fees, which is discussed in the notes above.

September 30, 2021| Page 12

Capital Analysis

(in thousands, except per share amounts)


	31-Mar-21		30-Jun-21		30-Sep-21		31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20
Market Data:
Shares Outstanding		107,328		107,395		105,633		107,269		107,328		107,328		107,328
Closing market price per share	$	5.45	$	5.26	$	4.64	$	5.73	$	5.09	$	3.66	$	4.37
Market capitalization	$	584,939	$	564,896	$	490,136	$	614,653	$	546,301	$	392,821	$	469,024
Total debt outstanding excluding unamortized financing costs		947,500		765,000		675,000		1,000,000		1,000,000		1,000,000		923,500
Total Market Capitalization	$	1,532,439	$	1,329,896	$	1,165,136	$	1,614,653	$	1,546,301	$	1,392,821	$	1,392,524

Dividend Data:
Total dividends declared for the quarter	$	9,660	$	9,659	$	9,666	$	9,654	$	9,654	$	9,660	$	9,660
Common dividend declared per share	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09	$	0.09
Declared dividend as a % of Net income (loss) per share		(150)%		60%		216%		(901)%		(465)%		(575)%		26%
Declared dividend as a % of AFFO* per share		220%		198%		211%		311%		5852%		280%		198%

Liquidity:
Cash, cash equivalents and restricted cash	$	4,113	$	24,180	$	9,731	$	17,283	$	2,890	$	4,840	$	4,150
Revolver:
Gross potential available under the BAML Revolver		600,000		600,000		600,000		600,000		600,000		600,000		600,000
Less:
Outstanding balance		(27,500)		—		—		(30,000)		(30,000)		(30,000)		(3,500)
Total Liquidity	$	576,613	$	624,180	$	609,731	$	587,283	$	572,890	$	574,840	$	600,650

*	See page 9 for a reconciliation of Net Income (Loss) to AFFO and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.

September 30, 2021| Page 13


	Owned Portfolio Overview


	As of the Quarter Ended
	30-Sep-21	30-Jun-21	31-Mar-21	31-Dec-20	30-Sep-20
Operating Properties:
Number of properties	26	29	33	32	32
Square feet	7,671,275	8,228,148	9,548,810	9,331,489	9,526,822
Leased percentage	80.0%	79.5%	81.9%	85.0%	85.6%

Redevelopment Properties (a):
Number of properties	1	1	1	2	3
Square feet	111,469	111,469	111,469	324,651	388,849
Leased percentage	0.0%	0.0%	0.0%	48.0%	53.0%

Total Owned Properties:
Number of properties	27	30	34	34	35
Square feet	7,782,744	8,339,617	9,660,279	9,656,140	9,915,671
Leased percentage	78.8%	78.5%	81.0%	83.8%	84.3%

Managed Properties - Single Asset REITs (SARs):
Number of properties	2	2	2	2	2
Square feet	348,545	348,545	348,545	348,545	348,545

Total Operating, Redevelopment and Managed Properties:
Number of properties	29	32	36	36	37
Square feet	8,131,289	8,688,162	10,008,824	10,004,685	10,264,216

(a)

We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

September 30, 2021| Page 14


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

Owned Properties:

East Region								Midwest Region

Washington, D.C.								Chicago
Meadow Point	Chantilly	VA	138,537	100.0%	70.3%	$	26.15	Northwest Point	Elk Grove Village	IL	177,095	100.0%	100.0%	$	30.27
Stonecroft (c)	Chantilly	VA	111,469	0.0%	0.0%	$	—	909 Davis Street	Evanston	IL	195,098	93.3%	93.3%	$	41.83

Richmond, VA								Minneapolis
Innsbrook	Glen Allen	VA	298,183	57.2%	57.2%	$	18.66	121 South 8th Street	Minneapolis	MN	298,121	90.7%	85.9%	$	23.33
								801 Marquette Ave	Minneapolis	MN	129,821	91.8%	55.2%	$	15.72
Charlotte, NC								Plaza Seven	Minneapolis	MN	330,096	85.5%	85.6%	$	33.27
Forest Park	Charlotte	NC	64,198	78.4%	49.1%	$	25.29







East Region Total			612,387	58.7%	48.9%	$	21.79	Midwest Region Total			1,130,231	91.2%	85.8%	$	30.41

(a)	Weighted Occupied Percentage for the nine months ended September 30, 2021.

(b)	Weighted Average GAAP Rent per Occupied Square Foot.

(c)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

September 30, 2021| Page 15


	Owned Portfolio Overview


				Percent	Wtd Occupied	GAAP						Percent	Wtd Occupied	GAAP
MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)		MSA / Property Name	City	State	Square Feet	Leased	Percentage (a)	Rent (b)

South Region								West Region

Dallas-Fort Worth								Denver
Legacy Tennyson Center	Plano	TX	207,049	41.1%	47.6%	$	23.75	380 Interlocken	Broomfield	CO	240,359	60.5%	64.7%	$	33.00
One Legacy Circle	Plano	TX	214,110	57.9%	56.4%	$	38.46	1999 Broadway	Denver	CO	680,255	67.3%	67.9%	$	33.69
Addison Circle	Addison	TX	289,325	85.6%	83.7%	$	32.30	Greenwood Plaza	Englewood	CO	196,236	100.0%	100.0%	$	25.13
Collins Crossing	Richardson	TX	300,887	84.4%	83.5%	$	27.40	390 Interlocken	Broomfield	CO	241,512	99.4%	99.4%	$	32.99
Liberty Plaza	Addison	TX	217,191	73.9%	73.9%	$	21.84	1001 17th Street	Denver	CO	655,420	95.2%	95.4%	$	37.02
								600 17th Street	Denver	CO	610,730	85.8%	85.0%	$	32.90
Houston								West Region Total			2,624,512	83.3%	83.7%	$	33.56
Park Ten	Houston	TX	157,609	72.0%	71.8%	$	30.25
Eldridge Green	Houston	TX	248,399	100.0%	100.0%	$	27.89	Total Owned Properties			7,782,744	78.8%	76.3%	$	30.97
Park Ten Phase II	Houston	TX	156,746	95.0%	95.0%	$	29.20
Westchase I & II	Houston	TX	629,025	57.6%	52.5%	$	28.05

Miami-Ft. Lauderdale-West Palm Beach
Blue Lagoon Drive	Miami	FL	213,182	73.6%	65.0%	$	26.21

Atlanta
Pershing Plaza	Atlanta	GA	160,145	76.6%	60.5%	$	33.58
999 Peachtree (d)	Atlanta	GA	621,946	85.8%	84.3%	$	34.60
South Region Total			3,415,614	74.9%	72.4%	$	29.99

(a)	Weighted Occupied Percentage for the nine months ended September 30, 2021.

(b)	Weighted Average GAAP Rent per Occupied Square Foot.

(c)	We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(d)	On October 22, 2021 this property was sold.

September 30, 2021| Page 16


	Managed Portfolio Overview

MSA / Property Name

City

State

Square Feet

MSA / Property Name

City

State

Square Feet

Southeast Region

Midwest Region

Atlanta

Indianapolis

Satellite Place

Duluth

134,785

Monument Circle

Indianapolis

213,760

Southeast Region Total

134,785

Midwest Region Total

213,760

Total Managed

348,545

Total Owned & Managed

8,131,289

September 30, 2021| Page 17

Tenants by Industry

(By Square Feet)

September 30, 2021| Page 18


	20 Largest Tenants with Annualized Rent and Remaining Term


			Remaining	Aggregate				% of Aggregate
	Tenant	Number of	Lease Term	Leased	% of Total	Annualized		Leased
	Name	Leases	in Months	Square Feet	Square Feet	Rent (a)		Annualized Rent

1	CITGO Petroleum Corporation	1	138	248,399	3.2%	$	2,923,656	1.6%
2	Ovintiv USA Inc. (b)	1	5	234,495	3.0%		10,059,274	5.4%
3	Eversheds Sutherland (US) LLP (i)	1	55	179,868	2.3%		6,254,542	3.4%
4	EOG Resources, Inc.	1	63	169,167	2.2%		6,196,587	3.3%
5	US Government (c)	2	52, 112	168,573	2.2%		5,992,002	3.2%
6	The Vail Corporation	1	102	164,636	2.1%		5,681,289	3.1%
7	Lennar Homes, LLC	1	186	155,808	2.0%		4,128,912	2.2%
8	Citicorp Credit Services, Inc	1	71	146,260	1.9%		4,766,613	2.6%
9	Kaiser Foundation Health Plan	1	32	120,979	1.5%		3,727,645	2.0%
10	Argo Data Resource Corporation (d)	1	23, 107	114,200	1.5%		3,371,184	1.8%
11	VMWare, Inc.	1	56	100,853	1.3%		3,456,232	1.9%
12	Deluxe Corporation (e)	1	190	98,922	1.3%		—	0.0%
13	Swift, Currie, McGhee & Hiers, LLP (f)	1	132	98,831	1.3%		—	0.0%
14	Ping Identity Corp.	1	57	89,856	1.1%		3,529,544	1.9%
15	Common Grounds, LLC (g) (i)	2	117, 132	76,984	1.0%		3,096,415	1.7%
16	Booz Allen Hamilton, Inc. (h)	1	70	75,338	1.0%		1,029,805	0.6%
17	ADS Alliance Data Systems, Inc.	1	57	67,274	0.9%		2,853,090	1.5%
18	PricewaterhouseCoopers LLP	1	88	66,304	0.8%		2,391,616	1.3%
19	DirecTV, Inc.	1	8	66,226	0.8%		2,040,423	1.1%
20	Hall and Evans LLC	1	95	65,878	0.8%		2,473,006	1.3%

			Total	2,508,851	32.2%	$	73,971,835	39.9%

Footnotes on next page

September 30, 2021| Page 19


	20 Largest Tenants with Annualized Rent and Remaining Term

Footnotes:

(a) Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at September 30, 2021 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(b) Includes 67,865 square feet that was re-leased by a new tenant on March 1, 2022 and expiring in 2031.

(d) Includes 28,550 square feet expiring in 2023. The remaining 85,650 square feet expire in 2030.

(e) Lease commenced on July 1, 2021 and rent commences on July 31, 2022.

(f) Lease commences on October 1, 2022 and rent commences on October 1, 2023.

(g) Includes 27,478 square feet expiring in 2031. The remaining 49,506 square feet expire in 2032.

(h) Includes 41,120 square feet commencing in 2022.

(i) On October 22, 2021, we sold our property known as 999 Peachtree. Eversheds Sutherland (US) LLP is a tenant at 999 Peachtree. In addition, Common Grounds, LLC is also a tenant at 999 Peachtree, leasing approximately 49,506 square feet with 132 months remaining and annualized revenue of $2,059,945.

September 30, 2021| Page 20

Leasing Activity

(Owned Portfolio)


					Year		Year
	Nine Months Ended				Ended		Ended
Leasing Activity (a)		30-Sep-21		30-Sep-20		31-Dec-20		31-Dec-19
(in Square Feet - SF)
New leasing		270,000		347,000		368,000		534,000
Renewals and expansions		622,000		259,000		762,000		883,000
		892,000		606,000		1,130,000		1,417,000

Other information per SF
(Activity on a year-to-date basis)
GAAP Rents on leasing	$	30.10	$	29.61	$	28.47	$	31.78
Weighted average lease term		7.8 Years		7.8 Years		8.3 Years		8.3 Years

Increase over average GAAP rents in prior year (b)		2.0%		11.8%		7.7%		10.9%

Average free rent		8 Months		6 Months		5 Months		3 Months
Tenant Improvements	$	25.08	$	33.80	$	34.07	$	34.44
Leasing Costs	$	11.61	$	10.71	$	11.36	$	13.51

(a) Leasing activity includes leasing at redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b) The increase or decrease percentage is calculated by comparing average GAAP rents at properties that had leasing activity in the current year to average GAAP rents at the same properties in the prior year.

September 30, 2021| Page 21

Lease Expirations by Square Feet (a)

(Owned Portfolio)

(a)

Lease expirations include leases in redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

September 30, 2021| Page 22

Lease Expirations with Annualized Rent per Square Foot

(Owned Portfolio)


			Rentable				Annualized		Percentage
	Number of		Square				Rent		of Total
Year of	Leases		Footage		Annualized		Per Square		Annualized
Lease	Expiring		Subject to		Rent Under		Foot Under		Rent Under
Expiration	Within the		Expiring		Expiring		Expiring		Expiring	Cumulative
December 31,	Year (a)		Leases		Leases (b)		Leases		Leases	Total

2021	14	(c)	72,249		$	2,450,459	$	33.92	1.3%	1.3%
2022	54		612,298			21,572,479		35.23	11.7%	13.0%
2023	51		351,574			12,100,057		34.42	6.5%	19.5%
2024	49		781,382			24,656,436		31.55	13.3%	32.8%
2025	51		509,607			15,937,407		31.27	8.6%	41.4%
2026	37		792,408			27,128,398		34.24	14.6%	56.0%
2027	24		761,322			22,919,613		30.11	12.4%	68.4%
2028	16		330,030			9,165,063		27.77	4.9%	73.3%
2029	12		337,189			11,437,542		33.92	6.2%	79.5%
2030	8		422,110			13,861,971		32.84	7.5%	87.0%
2031 and thereafter	59		1,164,830	(d)		24,000,857		20.60	13.0%	100.0%
Leased total	375		6,134,999		$	185,230,282	$	30.19	100.0%
Vacancies as of 9/30/21			1,536,276
Redevelopment properties (e)			111,469
Total Portfolio Square Footage			7,782,744

(a)

The number of leases approximates the number of tenants. Tenants with lease maturities in different years are included in annual totals for each lease. Tenants may have multiple leases in the same year. Includes annualized rent from redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where redevelopment is complete, but are in lease-up and that are not stabilized.

(b)	Annualized rent represents the monthly rent charged, including tenant reimbursements, for each lease in effect at September 30, 2021 multiplied by 12. Tenant reimbursements generally include payment of real estate taxes, operating expenses and common area maintenance and utility charges.

(c)	Includes 4 leases that are month-to-month.

(d)	Includes 101,233 square feet that are non-revenue producing building amenities.

(e)	Redevelopment properties include properties being developed, redeveloped, or where redevelopment is complete, but are in lease-up and that are not stabilized.

September 30, 2021| Page 23

Redevelopment Activity

(in 000's except square feet)

Estimated

Incurred

Percent

Estimated

Leased

Occupied

Rentable

Anticipated

Through

Leased

Completion

Stabilization

Property Name

City

State

Square Feet

Investment (1)

30-Sep-21

Date

Redevelopment in Process

Stonecroft

Chantilly

111,469

5,055

3,597

0.0%

December-21

January-22

December-22

Total Office in Process

111,469

5,055

3,597

Anticipated Investment includes capitalized redevelopment costs and capitalized interest, but excludes lease-up costs.

(1)

On October 5, 2021, we entered into a Purchase and Sale Agreement with a third-party buyer for the disposition of Stonecroft and our other office property located in Chantilly, Virginia for a purchase price of approximately $40 million. Assuming satisfaction of certain customary conditions to close, including successful completion by the buyer of a due diligence inspection period, the closing of the sale of the properties is expected to take place on or about November 16, 2021. However, if the sale of Stonecroft does not occur, we expect to incur additional lease-up and stabilization costs prior to the property becoming an operating property.

September 30, 2021| Page 24


	Capital Expenditures


(in thousands)							Nine Months
	For the Three Months Ended						Ended
	31-Mar-21		30-Jun-21		30-Sep-21		30-Sep-21

Tenant improvements	$	4,491	$	4,277	$	3,952	$	12,720
Deferred leasing costs		2,597		1,922		2,371		6,890
Non-investment capex		5,336		3,793		4,528		13,657
Total Capital Expenditures	$	12,424	$	9,992	$	10,851	$	33,267


	For the Three Months Ended								Year Ended
	31-Mar-20		30-Jun-20		30-Sep-20		31-Dec-20		31-Dec-20

Tenant improvements	$	10,716	$	13,531	$	8,022	$	837	$	33,106
Deferred leasing costs		2,730		603		2,033		7,432		12,798
Non-investment capex		4,527		6,581		6,373		6,105		23,586
Total Capital Expenditures	$	17,973	$	20,715	$	16,428	$	14,374	$	69,490

First generation leasing and investment capital was $29.1 million for nine months ended September 30, 2021 and $19.7 million for the year ended December 31, 2020.

September 30, 2021| Page 25

Transaction Activity

(in thousands except for Square Feet)

Recent Acquisitions:

City

State

Square Feet

Date Acquired

Purchase Price

2016

Plaza Seven

Minneapolis

325,796

6/6/16

82,000

Pershing Plaza

Atlanta

160,145

8/10/16

45,450

600 17th Street

Denver

613,527

12/1/16

154,260


Recent Dispositions:					Gross Sale		Gain (loss)
	City	State	Square Feet	Date Sold	Proceeds		on Sale
2021
One Ravinia	Atlanta	GA	386,602	5/27/21	$	74,879	$	29,075
Two Ravinia	Atlanta	GA	411,047	5/27/21		71,771		29
One Overton Park	Atlanta	GA	387,267	5/27/21		72,850		(6,336)
Loudoun Tech Center	Dulles	VA	136,658	6/29/21		17,250		(2,148)
River Crossing	Indianapolis	IN	205,729	8/31/21		35,050		(1,657)
Timberlake	Chesterfield	MO	234,496	9/23/21		44,667		6,184
Timberlake East	Chesterfield	MO	117,036	9/23/21		22,333		4,111
999 Peachtree	Atlanta	GA	621,946	10/22/21		223,900		86,755

2020
Emperor Boulevard	Durham	NC	259,531	12/23/20	$	89,700	$	41,928

2017
Hillview	Milpitas	CA	36,288	1/6/17	$	6,342	$	2,289
East Baltimore	Baltimore	MD	325,445	10/20/17		32,547		(20,770)

2016
Lakeside I	Maryland Heights	MO	127,778	4/5/16	$	20,189	$	4,154
Federal Way	Federal Way	WA	117,010	12/16/16		7,500		(7,092)

September 30, 2021| Page 26

Loan Portfolio of Secured Real Estate

(in thousands)

(dollars in thousands, except footnotes)

Maximum

Amount

Interest

Maturity

Amount

Outstanding

Rate at


(in thousands except per share data)
	As of		Assets:			Other information:
	30-Sep-21		Loans outstanding on secured RE	$	21,000	Leased SF to be FFO producing
Total Market Capitalization Values			Investments in SARs (book basis)		—	during 2021 and 2022 (in 000's)		195
Shares outstanding		105,632.7	Straight-line rent receivable		58,132
Closing price	$	4.64	Asset held for sale		—	Straight-line rental revenue current quarter	$	245
Market capitalization	$	490,136	Cash, cash equivalents and restricted cash		9,731
Debt		675,000	Tenant rent receivables		2,681	Management fee income current quarter	$	15
Total Market Capitalization	$	1,165,136	Prepaid expenses		3,986	Interest income from secured loans		404
			Office computers and furniture		153	Management fees and interest income from loans	$	419
			Other assets:
	3 Months		Deferred financing costs, net		2,433
	Ended		Other assets: Derivative Market Value		—
NOI Components	30-Sep-21		Other assets - Right-to-Use Asset		1,179
				$	99,295
Same Store NOI (1)	$	22,738
Acquisitions (1) (2)		—	Liabilities:			Footnotes to the components
Property NOI (1)		22,738	Debt (excluding contra for unamortized financing costs)	$	675,000
Full quarter adjustment (3)		—	Accounts payable & accrued expenses		62,791	(1) See pages 11 & 30 for definitions and reconciliations.
Stabilized portfolio	$	22,738	Tenant security deposits		6,169
			Other liabilities: lease liability		1,256	(2) Includes NOI from acquisitions not in Same Store.
			Other liabilities: derivative liability		7,583
Financial Statement Reconciliation:				$	752,799	(3) Adjustment to reflect property NOI for a full quarter in the quarter acquired, if necessary.
Rental Revenue	$	50,326
Rental operating expenses		(14,373)				(4) HB3 Tax in Texas is classified as an income tax, though we treat it as a real estate tax in Property NOI.
Real estate taxes and insurance		(10,200)
NOI from dispositions & redevelopment properties		(2,625)				(5) Management & other fees are eliminated in consolidation but included in Property NOI.
Taxes (4)		(51)
Management & other fees (5)		(339)
Property NOI (1)	$	22,738