Exhibit 99.1
| CONTACT: | ||
| Sara Grootwassink | 6110 Executive Blvd., Suite 800 | |
| Executive Vice President and | Rockville, Maryland 20852 | |
| Chief Financial Officer | Tel 301-984-9400 | |
| Direct Dial: 301-255-0820 | Fax 301-984-9610 | |
| E-Mail: sgrootwassink@writ.com | www.writ.com | |
| February 19, 2009 | ||
WASHINGTON REAL ESTATE INVESTMENT TRUST ANNOUNCES
FOURTH QUARTER AND YEAR-END OPERATING RESULTS FOR 2008
Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) reported financial and operating results today for the quarter and year ending December 31, 2008:
| • | Net income for the year ending December 31, 2008 was $0.67 per diluted share, compared to $1.34 per diluted share in 2007. Net income for the quarter ending December 31, 2008 was $0.14 per diluted share, compared to $0.18 per diluted share in the same period one year ago. Included in the 2008 full year net income per share was a $0.17 non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”) and a $0.07 gain due to the repurchase of convertible debt. Additionally, 2008 full year net income per share declined $0.20 from 2007 due to higher gains from the sale of real estate in 2007. |
| • |
Funds from Operations (FFO)(1) for the year ending December 31, 2008 was $2.12 per diluted share compared to $2.31 per diluted share the prior year. FFO for the quarter ending December 31, 2008 was $0.59 per diluted share, compared to $0.59 per diluted share in the same period one year ago. Included in the 2008 full-year FFO per share was a $0.17 non-recurring charge for the extinguishment of $60 million of 10-year Mandatory Par Put Remarketed Securities (“MOPPRS”) and a $0.07 gain due to the repurchase of convertible debt. |
Operating Results
Core Net Operating Income (NOI)(2) for the year 2008 was $160.6 million compared to $161.8 million last year. Core rental rate growth was 1.9%.
Core NOI for the fourth quarter was $43.0 million compared to $45.8 million the same period one year ago. Core rental rate growth was 2.4%.
| • | Office properties’ core NOI for the fourth quarter decreased 3.9% compared to the same period one year ago. Rental rate growth for the office sector was 2.3% while core economic occupancy decreased 190 basis points to 93.5%. Sequentially, core economic occupancy increased from 92.5% in the third quarter of 2008. |
| • | Retail properties’ core NOI for the fourth quarter decreased 17.3% compared to the same period one year ago due in a large part to write-offs associated with the bankruptcy of Circuit City. Rental rate growth was 3.5% while core economic occupancy decreased 130 basis points to 94.8%. Sequentially, core economic occupancy increased from 94.4% in the third quarter of 2008. |
| • | Industrial properties’ core NOI for the fourth quarter decreased 8.5% compared to the same period one year ago. Rental rate growth was 2.7% while core economic occupancy decreased 340 basis points to 92.3%. Sequentially, core economic occupancy declined from 92.9% in the third quarter of 2008. |
| • | Medical office properties’ core NOI for the fourth quarter decreased 1.8% compared to the same period one year ago. Rental rate growth was 2.0% while core economic occupancy decreased 210 basis points to 96.0%. Sequentially, core economic occupancy remained relatively flat compared to 95.8% in the third quarter of 2008. |
Washington Real Estate Investment Trust
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| • | Multifamily properties’ core NOI for the fourth quarter increased 2.1% compared to the same period one year ago. Rental rate growth was 1.8% and core economic occupancy increased 200 basis points to 93.2%. Sequentially, core economic occupancy declined from 94.7% in the third quarter of 2008. |
Overall core economic occupancy was 93.9% during the fourth quarter of 2008 compared to 95.4% the same period in the prior year. Sequentially, core economic occupancy increased from 93.6% in the third quarter of 2008.
Leasing Activity
During the fourth quarter, WRIT signed commercial leases for 307,000 square feet, with an average rental rate increase of 19.9% and tenant improvement costs of $15.33 per square foot. Residential rental rates increased 1.8% in the fourth quarter compared to the same period one year ago.
| • | Rental rates for new and renewed office leases increased 15.9% to $29.65 per square foot, with $20.77 per square foot in tenant improvement costs. |
| • | Rental rates for new and renewed retail leases increased 14.4% to $30.98 per square foot, with $2.14 per square foot in tenant improvement costs. |
| • | Rental rates for new and renewed medical office leases increased 26.0% to $41.07 per square foot, with $27.56 per square foot in tenant improvement costs. |
| • | Rental rates for new and renewed industrial/flex leases increased 26.3% to $12.18 per square foot, with $3.37 per square foot in tenant improvement costs. |
For the full year, WRIT signed commercial leases for 1,508,000 square feet, with an average rental rate increase of 19.4% and tenant improvement costs of $8.44 per square foot.
Acquisition Activity
On December 2, 2008, WRIT acquired 2445 M Street, NW, a 290,000 square foot Class A office building with a two-level parking garage in Washington, D.C. for $181.4 million. The property is 100% leased to two high-quality tenants under long-term leases. The Advisory Board Company occupies 180,000 square feet and Patton Boggs LLP occupies 110,000 square feet. WRIT expects to achieve a first-year, leveraged yield of 6.7% on a cash basis and 7.2% on a GAAP basis. At closing, WRIT assumed a $101.9 million loan with an interest rate of 5.619% per annum with the remaining balance funded with cash and borrowings from our lines of credit, which were subsequently paid down in part with proceeds from the sale of Sullyfield Center and The Earhart Building.
Capital Structure
On October 1, 2008, WRIT closed a $60.4 million offering of 1.725 million common shares at an offering price of $35.00 per share. WRIT used the proceeds from the offering to repay borrowings under its lines of credit and for general corporate purposes. In December 2008, WRIT repurchased $16,000,000 of its 3.875% convertible notes. WRIT repurchased the notes at a discount price of 75% of par for $12,000,000. In conjunction with the repurchase, WRIT reported a gain of approximately $3,493,000 in the fourth quarter of 2008.
On December 31, 2008, WRIT paid a quarterly dividend of $0.4325 per share for its 188th consecutive quarterly dividend at equal or increasing rates.
As of December 31, 2008 WRIT had a total capitalization of $2.9 billion.
Earnings Guidance
Management estimates that 2009 FFO per diluted share earnings should range from $1.95 - $2.15. This guidance takes into account approximately $0.10 per share interest expense adjustments related to the new convertible debt accounting rules and fair value accounting treatment for the loan on our 2445 M Street acquisition. Additionally, our guidance includes:
| • | Increasing bad debt expense as a percentage of revenue earned in 2009 in anticipation of the potential future impact of continued deteriorating economic conditions in the real estate markets. |
| • | Taking a more conservative projection for vacancy by assuming lower retention and longer lease up of vacant or expiring space. |
| • | Assuming our overall cost of capital will rise throughout the year given rates on our lines of credit currently hover around 1%. |
| • | Increasing cap rate assumptions on approximately $50 - $70 million of planned dispositions and a nominal level of acquisition. |
| • | Accounting for the full year impact of the additional shares we issued last year. |
Washington Real Estate Investment Trust
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Conference Call Information
The Conference Call for 4th Quarter Earnings is scheduled for Friday, February 20, 2009 at 11:00 A.M. Eastern Time. Conference Call access information is as follows:
| USA Toll Free Number: | 1-877-407-9205 | |
| International Toll Number: | 1-201-689-8054 | |
| Leader: | Sara Grootwassink |
The instant replay of the Conference Call will be available until March 6, 2009 at 11:59 P.M. Eastern Time. Instant Replay access information is as follows:
| USA Toll Free Number: | 1-877-660-6853 | |
| International Toll Number: | 1-201-612-7415 | |
| Account: | 286 | |
| Conference ID: | 308562 |
The live on-demand webcast of the Conference Call will also be available on the Investor section of WRIT’s website at www.writ.com. On-line playback of the webcast will be available at www.writ.com for two weeks following the Conference Call.
About WRIT
WRIT is a self-administered, self-managed, equity real estate investment trust investing in income-producing properties in the greater Washington metro region. WRIT owns a diversified portfolio of 93 properties consisting of 28 office properties, 22 industrial/flex properties, 17 medical office properties, 14 retail centers, 12 multifamily properties and land for development. WRIT shares are publicly traded on the New York Stock Exchange (NYSE: WRE).
Note: WRIT’s press releases and supplemental financial information are available on the company website at www.writ.com or by contacting Investor Relations at (301) 984-9400.
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to, the effect of the current credit and financial market conditions, the availability and cost of capital, fluctuations in interest rates, tenants’ financial conditions, the timing and pricing of lease transactions, level of competition, the effect of government regulation, the impact of newly adopted accounting principles, changes in general and local economic and real estate market conditions, and other risks and uncertainties detailed from time to time in our filings with the SEC, including our 2007 Form 10-K and our third-quarter 2008 10-Q. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
| (1) |
Funds From Operations (“FFO”) – The National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) defines FFO (April, 2002 White Paper) as net income (computed in accordance with generally accepted accounting principles (“GAAP”)) excluding gains (or losses) from sales of property plus real estate depreciation and amortization. We consider FFO to be a standard supplemental measure for equity real estate investment trusts (“REITs”) because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which historically assumes that the value of real estate assets diminishes predictably over time. Since real estate values have instead historically risen or fallen with market conditions, we believe that FFO more accurately provides investors an indication of our ability to incur and service debt, make capital expenditures and fund other needs. FFO is a non-GAAP measure. |
| (2) |
Net Operating income (“NOI”) is calculated as real estate rental revenue less real estate expenses. For purposes of evaluating comparative operating performance, we categorize our properties as “core” or “non-core”. A core property is one that was owned for the entirety of the periods being evaluated. A non-core property is one that was acquired or placed into service during either of the periods being evaluated. NOI is a non-GAAP measure. |
| (3) |
Funds Available for Distribution (“FAD”) is calculated by subtracting from FFO (1) recurring expenditures, tenant improvements and leasing costs that are capitalized and amortized and are necessary to maintain our properties and revenue stream and (2) straight line rents, then adding (3) non-real estate depreciation and amortization, (4) amortization of restricted share and unit compensation, and adding or subtracting amortization of lease intangibles, as appropriate. FAD is included herein, because we consider it to be a measure of a REIT’s ability to incur and service debt and to distribute dividends to its shareholders. FAD is a non-GAAP and non-standardized measure, and may be calculated differently by other REITs. |
Washington Real Estate Investment Trust
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Economic Occupancy Levels by Core Properties (i) and All Properties
| Core Properties | All Properties | |||||||||||
| Sector |
4th QTR 2008 |
4th QTR 2007 |
4th QTR 2008 |
4th QTR 2007 |
||||||||
| Residential |
93.2 | % | 91.2 | % | 87.6 | % (ii) | 84.9 | % | ||||
| Office |
93.5 | % | 95.4 | % | 93.2 | % | 95.5 | % | ||||
| Medical Office |
96.0 | % | 98.1 | % | 95.2 | % | 98.1 | % | ||||
| Retail |
94.8 | % | 96.1 | % | 94.8 | % | 96.1 | % | ||||
| Industrial |
92.3 | % | 95.7 | % | 92.5 | % | 95.5 | % | ||||
| Overall Portfolio |
93.9 | % | 95.4 | % | 92.6 | % | 94.3 | % | ||||
| (i) |
Core properties include all properties that were owned for the entirety of the current and prior year reporting periods. For Q4 2008 and Q4 2007, core properties exclude: |
Residential Acquisition: The Kenmore
Office Acquisition: 2445 M Street, 2000 M Street
Medical Office Acquisitions: Sterling Medical Office Building
Retail Acquisitions: none
Industrial Acquisition: 6100 Columbia Pike Drive
Also excluded from Core Properties in Q4 2008 and Q4 2007 are Sold Properties: Sullyfield Center and The Earhart Building; Held for Sale Property: Avondale; and In Development Properties: Bennett Park, Clayborne Apartments, Dulles Station, and 4661 Kenmore Ave.
| (ii) |
Residential occupancy for all properties reflects the completion of Bennett Park and Clayborne Apartments. At 12/31/08, 174 of 224 units were leased at Bennett Park and 47 of 74 units were leased at Clayborne Apartments. |
Washington Real Estate Investment Trust
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WASHINGTON REAL ESTATE INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| OPERATING RESULTS |
2008 | 2007 | 2008 | 2007 | ||||||||||||
| Revenue |
||||||||||||||||
| Real estate rental revenue |
$ | 73,085 | $ | 66,802 | $ | 282,312 | $ | 252,732 | ||||||||
| Expenses |
||||||||||||||||
| Real estate expenses |
25,471 | 20,897 | 94,573 | 78,414 | ||||||||||||
| Depreciation and amortization |
23,630 | 18,826 | 86,429 | 69,136 | ||||||||||||
| General and administrative |
3,350 | 3,675 | 12,321 | 15,099 | ||||||||||||
| 52,451 | 43,398 | 193,323 | 162,649 | |||||||||||||
| Real estate operating income |
20,634 | 23,404 | 88,989 | 90,083 | ||||||||||||
| Other income/(expense): |
||||||||||||||||
| Interest expense |
(17,515 | ) | (16,400 | ) | (69,909 | ) | (61,906 | ) | ||||||||
| Gain (loss) on extinguishment of debt |
3,493 | — | (4,956 | ) | — | |||||||||||
| Other income |
277 | 480 | 1,073 | 1,875 | ||||||||||||
| Gain from non-disposal activities |
— | — | 17 | 1,303 | ||||||||||||
| (13,745 | ) | (15,920 | ) | (73,775 | ) | (58,728 | ) | |||||||||
| Income from continuing operations |
6,889 | 7,484 | 15,214 | 31,355 | ||||||||||||
| Discontinued operations: |
||||||||||||||||
| Income from operations of properties held for sale |
353 | 958 | 2,352 | 5,504 | ||||||||||||
| Gain on sale of real estate |
— | — | 15,275 | 25,022 | ||||||||||||
| Net Income |
$ | 7,242 | $ | 8,442 | $ | 32,841 | $ | 61,881 | ||||||||
| Income from continuing operations |
$ | 6,889 | $ | 7,484 | $ | 15,214 | $ | 31,355 | ||||||||
| Gain from non-disposal activities |
— | — | (17 | ) | (1,303 | ) | ||||||||||
| Continuing operations real estate depreciation and amortization |
23,630 | 18,826 | 86,429 | 69,136 | ||||||||||||
| Funds from continuing operations |
$ | 30,519 | $ | 26,310 | $ | 101,626 | $ | 99,188 | ||||||||
| Income from discontinued operations before gain on sale |
353 | 958 | 2,352 | 5,504 | ||||||||||||
| Discontinued operations real estate depreciation and amortization |
— | 259 | 469 | 1,889 | ||||||||||||
| Funds from discontinued operations |
353 | 1,217 | 2,821 | 7,393 | ||||||||||||
| Funds from Operations(1) |
$ | 30,872 | $ | 27,527 | $ | 104,447 | $ | 106,581 | ||||||||
| Tenant improvements |
(2,759 | ) | (5,026 | ) | (11,350 | ) | (16,587 | ) | ||||||||
| External and internal leasing commissions capitalized |
(1,184 | ) | (1,613 | ) | (6,487 | ) | (6,005 | ) | ||||||||
| Recurring capital improvements |
(2,688 | ) | (3,899 | ) | (9,792 | ) | (11,895 | ) | ||||||||
| Straight-line rents, net |
(517 | ) | (957 | ) | (2,752 | ) | (4,204 | ) | ||||||||
| Non-cash fair value interest expense |
(827 | ) | — | (827 | ) | — | ||||||||||
| Non real estate depreciation & amortization of debt costs |
988 | 1,011 | 3,971 | 3,572 | ||||||||||||
| Amortization of lease intangibles, net |
(47 | ) | (191 | ) | (1,623 | ) | (1,381 | ) | ||||||||
| Amortization and expensing of restricted share and unit compensation |
417 | 850 | 2,538 | 4,088 | ||||||||||||
| Other |
— | — | — | 1,303 | ||||||||||||
| Funds Available for Distribution (3) |
$ | 24,255 | $ | 17,702 | $ | 78,125 | $ | 75,472 | ||||||||
Certain prior period amounts have been reclassified to conform to the current presentation.
Washington Real Estate Investment Trust
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| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| Per Share Data |
2008 | 2007 | 2008 | 2007 | ||||||||||
| Income from continuing operations |
(Basic) | $ | 0.13 | $ | 0.16 | $ | 0.31 | $ | 0.68 | |||||
| (Diluted) | $ | 0.13 | $ | 0.16 | $ | 0.31 | $ | 0.68 | ||||||
| Net income |
(Basic) | $ | 0.14 | $ | 0.18 | $ | 0.67 | $ | 1.35 | |||||
| (Diluted) | $ | 0.14 | $ | 0.18 | $ | 0.67 | $ | 1.34 | ||||||
| Funds from continuing operations |
(Basic) | $ | 0.58 | $ | 0.56 | $ | 2.07 | $ | 2.16 | |||||
| (Diluted) | $ | 0.58 | $ | 0.56 | $ | 2.06 | $ | 2.15 | ||||||
| Funds from operations |
(Basic) | $ | 0.59 | $ | 0.59 | $ | 2.13 | $ | 2.32 | |||||
| (Diluted) | $ | 0.59 | $ | 0.59 | $ | 2.12 | $ | 2.31 | ||||||
| Dividends paid |
$ | 0.4325 | $ | 0.4225 | $ | 1.7200 | $ | 1.6800 | ||||||
| Weighted average shares outstanding |
52,358 | 46,604 | 49,138 | 45,911 | ||||||||||
| Fully diluted weighted average shares outstanding |
52,604 | 46,822 | 49,373 | 46,115 | ||||||||||
Washington Real Estate Investment Trust
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WASHINGTON REAL ESTATE INVESTMENT TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
| December 31, 2008 |
December 31, 2007 |
|||||||
| Assets |
||||||||
| Land |
$ | 416,576 | $ | 325,490 | ||||
| Income producing property |
1,868,500 | 1,621,679 | ||||||
| 2,285,076 | 1,947,169 | |||||||
| Accumulated depreciation and amortization |
(401,539 | ) | (327,759 | ) | ||||
| Net income producing property |
1,883,537 | 1,619,410 | ||||||
| Development in progress |
23,630 | 98,321 | ||||||
| Total real estate held for investment, net |
1,907,167 | 1,717,731 | ||||||
| Investment in real estate sold or held for sale |
12,526 | 36,562 | ||||||
| Cash and cash equivalents |
11,874 | 21,485 | ||||||
| Restricted cash |
18,823 | 6,030 | ||||||
| Rents and other receivables, net of allowance for doubtful accounts of $6,308 and $4,196 |
45,439 | 36,548 | ||||||
| Prepaid expenses and other assets |
115,401 | 78,394 | ||||||
| Other assets related to property sold or held for sale |
161 | 1,576 | ||||||
| Total Assets |
$ | 2,111,391 | $ | 1,898,326 | ||||
| Liabilities |
||||||||
| Notes payable |
$ | 902,900 | $ | 879,123 | ||||
| Mortgage notes payable |
421,286 | 252,484 | ||||||
| Lines of credit |
67,000 | 192,500 | ||||||
| Accounts payable and other liabilities |
70,575 | 63,327 | ||||||
| Advance rents |
9,016 | 9,537 | ||||||
| Tenant security deposits |
10,298 | 10,419 | ||||||
| Other liabilities related to property sold or held for sale |
128 | 616 | ||||||
| Total Liabilities |
1,481,203 | 1,408,006 | ||||||
| Minority interest |
3,795 | 3,776 | ||||||
| Shareholders’ Equity |
||||||||
| Shares of beneficial interest, $0.01 par value; 100,000 shares authorized; 52,434 and 46,682 shares issued and outstanding, respectively |
526 | 468 | ||||||
| Additional paid-in capital |
756,341 | 561,492 | ||||||
| Distributions in excess of net income |
(128,139 | ) | (75,416 | ) | ||||
| Accumulated other comprehensive income |
(2,335 | ) | — | |||||
| Total Shareholders’ Equity |
626,393 | 486,544 | ||||||
| Total Liabilities and Shareholders’ Equity |
$ | 2,111,391 | $ | 1,898,326 | ||||
Note: Certain prior year amounts have been reclassified to conform to the current year presentation.
Washington Real Estate Investment Trust
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The following tables contain reconciliations of net income to core net operating income for the periods presented:
| Three months ended December 31, 2008 | Multifamily | Office | Medical Office |
Retail | Industrial | Total | ||||||||||||||
| Core net operating income |
$ | 4,766 | $ | 16,899 | $ | 7,307 | $ | 6,966 | $ | 7,075 | $ | 43,013 | ||||||||
| Add: Net operating income from non-core properties |
1,388 | 2,921 | 32 | — | 260 | 4,601 | ||||||||||||||
| Total net operating income |
$ | 6,154 | $ | 19,820 | $ | 7,339 | $ | 6,966 | $ | 7,335 | $ | 47,614 | ||||||||
| Add/(deduct): |
||||||||||||||||||||
| Other income |
277 | |||||||||||||||||||
| Interest expense |
(17,515 | ) | ||||||||||||||||||
| Gain (loss) on extinguishment of debt |
3,493 | |||||||||||||||||||
| Depreciation and amortization expense |
(23,630 | ) | ||||||||||||||||||
| General and administrative expenses |
(3,350 | ) | ||||||||||||||||||
| Income from operations of properties held for sale |
353 | |||||||||||||||||||
| Net income |
$ | 7,242 | ||||||||||||||||||
| Three months ended December 31, 2007 | Multifamily | Office | Medical Office |
Retail | Industrial | Total | ||||||||||||||
| Core net operating income |
$ | 4,668 | $ | 17,577 | $ | 7,444 | $ | 8,420 | $ | 7,731 | $ | 45,840 | ||||||||
| Add: Net operating income (loss) from non-core properties |
(112 | ) | 177 | — | — | — | 65 | |||||||||||||
| Total net operating income |
$ | 4,556 | $ | 17,754 | $ | 7,444 | $ | 8,420 | $ | 7,731 | $ | 45,905 | ||||||||
| Add/(deduct): |
||||||||||||||||||||
| Other income |
480 | |||||||||||||||||||
| Interest expense |
(16,400 | ) | ||||||||||||||||||
| Depreciation and amortization expense |
(18,826 | ) | ||||||||||||||||||
| General and administrative expenses |
(3,675 | ) | ||||||||||||||||||
| Income from operations of properties held for sale |
958 | |||||||||||||||||||
| Net income |
$ | 8,442 | ||||||||||||||||||
| Twelve months ended December 31, 2008 | Multifamily | Office | Medical Office |
Retail | Industrial | Total | ||||||||||||||
| Core net operating income |
$ | 18,884 | $ | 62,150 | $ | 20,613 | $ | 31,341 | $ | 27,611 | $ | 160,599 | ||||||||
| Add: Net operating income from non-core properties |
1,538 | 14,039 | 8,804 | — | 2,759 | 27,140 | ||||||||||||||
| Total net operating income |
$ | 20,422 | $ | 76,189 | $ | 29,417 | $ | 31,341 | $ | 30,370 | $ | 187,739 | ||||||||
| Add/(deduct): |
||||||||||||||||||||
| Other income |
1,073 | |||||||||||||||||||
| Gain from non-disposal activities |
17 | |||||||||||||||||||
| Interest expense |
(69,909 | ) | ||||||||||||||||||
| Gain (loss) on extinguishment of debt |
(4,956 | ) | ||||||||||||||||||
| Depreciation and amortization expense |
(86,429 | ) | ||||||||||||||||||
| General and administrative expenses |
(12,321 | ) | ||||||||||||||||||
| Income from operations of properties held for sale |
2,352 | |||||||||||||||||||
| Gain on sale of real estate |
15,275 | |||||||||||||||||||
| Net income |
$ | 32,841 | ||||||||||||||||||
| Twelve months ended December 31, 2007 | Multifamily | Office | Medical Office |
Retail | Industrial | Total | ||||||||||||||
| Core net operating income |
$ | 18,266 | $ | 62,229 | $ | 20,660 | $ | 32,591 | $ | 28,051 | $ | 161,797 | ||||||||
| Add: Net operating income (loss) from non-core properties |
(364 | ) | 5,536 | 5,536 | — | 1,813 | 12,521 | |||||||||||||
| Total net operating income |
$ | 17,902 | $ | 67,765 | $ | 26,196 | $ | 32,591 | $ | 29,864 | $ | 174,318 | ||||||||
| Add/(deduct): |
||||||||||||||||||||
| Other income |
1,875 | |||||||||||||||||||
| Gain from non-disposal activities |
1,303 | |||||||||||||||||||
| Interest expense |
(61,906 | ) | ||||||||||||||||||
| Depreciation and amortization expense |
(69,136 | ) | ||||||||||||||||||
| General and administrative expenses |
(15,099 | ) | ||||||||||||||||||
| Income from operations of properties held for sale |
5,504 | |||||||||||||||||||
| Gain on sale of real estate |
25,022 | |||||||||||||||||||
| Net income |
$ | 61,881 | ||||||||||||||||||