þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEXAS | 52-1862813 | |
(State or other jurisdiction of incorporation | (I.R.S. Employer Identification Number) | |
or organization) |
777 Main Street, Suite 2100, Fort Worth, Texas | 76102 | |
(Address of principal executive offices) | (Zip code) | |
Name of Each Exchange | ||
Title of each class: | on Which Registered: | |
Common Shares of Beneficial Interest par value $0.01 per share |
New York Stock Exchange | |
Series A
Convertible Cumulative Preferred Shares of Beneficial Interest par value $0.01 per share |
New York Stock Exchange | |
Series B Cumulative Redeemable Preferred Shares of Beneficial Interest par value $0.01 per share |
New York Stock Exchange |
Number of
Common Shares outstanding as of March 5, 2007: |
102,807,311 | |||
Number of
Series A Preferred Shares outstanding as of March 5, 2007: |
14,200,000 | |||
Number of
Series B Preferred Shares outstanding as of March 5, 2007: |
3,400,000 |
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PART I. |
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34 | ||||||||
34 | ||||||||
PART II. |
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35 | ||||||||
38 | ||||||||
39 | ||||||||
72 | ||||||||
73 | ||||||||
137 | ||||||||
137 | ||||||||
142 | ||||||||
PART III. |
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142 | ||||||||
142 | ||||||||
142 | ||||||||
142 | ||||||||
142 | ||||||||
PART IV. |
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143 | ||||||||
List of Subsdiaries | ||||||||
Consent of Ernst & Young LLP | ||||||||
Consent of Deloitte & Touche LLP | ||||||||
Certifications of CEO and CFO Pursuant to Section 302 | ||||||||
Certifications of CEO and CFO Pursuant to Section 906 |
2
| Office Segment; | ||
| Resort Residential Development Segment; | ||
| Resort/Hotel Segment; and | ||
| Temperature-Controlled Logistics Segment. |
| Office Segment consisted of 71 office properties, which we refer to as the Office Properties, located in 26 metropolitan submarkets in eight states, with an aggregate of approximately 27.6 million net rentable square feet. Fifty-four of the Office Properties are wholly-owned and 17 are owned through joint ventures, one of which is consolidated in our financial statements contained in Item 8, Financial Statements and Supplementary Data, and 16 of which are unconsolidated. | ||
| Resort Residential Development Segment consisted of our ownership of common stock representing interests of 98% to 100% in four Resort Residential Development Corporations and two limited partnerships, which are consolidated. These Resort Residential Development Corporations, through partnership arrangements, owned, in whole or in part, 30 active and planned upscale resort residential development properties, which we refer to as the Resort Residential Development Properties. |
3
| Resort/Hotel Segment consisted of five luxury and destination fitness resorts and spas with a total of 949 rooms/guest nights and three upscale business-class hotel properties with a total of 1,376 rooms, which we refer to as the Resort/Hotel Properties. Five of the Resort/Hotel Properties are wholly-owned, one is owned through a joint venture that is consolidated and two are owned through joint ventures that are unconsolidated. | ||
| Temperature-Controlled Logistics Segment consisted of our 31.7% interest in AmeriCold Realty Trust, or AmeriCold, a REIT. As of December 31, 2006, AmeriCold operated 104 facilities, of which 91 were wholly-owned or leased, one was partially-owned and 12 were managed for outside owners. The 92 owned or leased and partially-owned facilities, which we refer to as the Temperature-Controlled Logistics Properties, had an aggregate of approximately 497.8 million cubic feet (19.0 million square feet) of warehouse space. AmeriCold also owned one quarry and the related land. |
4
| Sale of all resort and hotel assets. Properties to be sold include the Fairmont Sonoma Mission Inn & Spa®, Ventana Inn & Spa in Big Sur, California, the Park Hyatt Beaver Creek Resort & Spa, and three business-class hotels. | ||
| Sale of resort residential developments. Properties and assets to be sold include Crescent Resort Development and Desert Mountain Development Corporation. | ||
| Opportunistic sale of office properties. Properties to be sold include virtually all suburban Dallas properties and all Austin properties, as well as our single assets in Phoenix, Arizona, and in Seattle, Washington. | ||
| Reduction of general and administrative expenses by more than $17.0 million, or $0.14 per share. Implementation of savings began immediately on March 1, 2007 and is expected to be fully phased in by the end of 2007. We expect to take a charge of approximately $5.0 million for severance costs. | ||
| Use of sales proceeds to retire debt. We plan to first use the proceeds from asset sales to retire debt. We expect that our balance sheet will be significantly strengthened and our cost of capital lowered, giving us capacity for growth. | ||
| Alignment of dividend. We intend to align our dividend with industry-accepted pay-out ranges to allow for retention of capital for growth. |
5
| Comprehensive Environmental Response, Compensation, and Liability Act, as amended (CERCLA); | ||
| Resource Conservation & Recovery Act; | ||
| Clean Water Act; | ||
| Clean Air Act; | ||
| Toxic Substances Control Act; and | ||
| Occupational Safety & Health Act. |
6
Population | Employment | |||||||
Growth | Growth | |||||||
Metropolitan Statistical Area | 2007-2009 | 2007-2009 | ||||||
United States |
2.7 | % | 3.4 | % | ||||
Atlanta, GA |
6.2 | 6.0 | ||||||
Austin, TX |
8.6 | 9.2 | ||||||
Colorado Springs, CO |
4.2 | 5.7 | ||||||
Dallas, TX |
6.1 | 6.1 | ||||||
Denver, CO |
3.6 | 4.3 | ||||||
Fort Worth, TX |
6.1 | 6.3 | ||||||
Houston, TX |
6.0 | 6.2 | ||||||
Las Vegas, NV |
10.9 | 10.1 | ||||||
Miami, FL |
3.6 | 3.9 | ||||||
Orange County, CA |
3.1 | 4.3 | ||||||
Phoenix, AZ |
7.0 | 9.0 | ||||||
Seattle, WA |
4.9 | 6.0 |
Source: | Moodys | Economy.com, data represents total percentage change for years 2007, 2008 and 2009. |
7
As of December 31, | ||||||||
Market | 2006 | 2005 | ||||||
United States |
4.3 | % | 4.6 | % | ||||
Texas |
4.1 | 4.8 | ||||||
Dallas |
4.0 | 4.6 | ||||||
Houston |
4.0 | 5.1 | ||||||
Austin |
3.2 | 3.9 | ||||||
Denver |
3.9 | 4.5 | ||||||
Miami |
3.5 | 3.6 | ||||||
Las Vegas |
4.2 | 3.5 |
Source: | U.S. Bureau of Labor Statistics and Texas Workforce Commission. Not seasonally adjusted. |
Economic Net | Economic Net | |||||||||||||||||||||||||||||||
Absorption(1) | Absorption(1) | |||||||||||||||||||||||||||||||
All Classes | Class A | Economic Occupancy(2) | Economic Occupancy(2) | |||||||||||||||||||||||||||||
(in square feet) | (in square feet) | All Classes | Class A | |||||||||||||||||||||||||||||
Market | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||||||||
Dallas |
3,514,000 | 549,000 | 2,707,000 | 1,250,000 | 78.3 | % | 77.5 | % | 82.6 | % | 80.9 | % | ||||||||||||||||||||
Houston |
5,814,000 | 1,007,000 | 4,443,000 | (207,000 | ) | 85.8 | 83.1 | 88.4 | 83.7 | |||||||||||||||||||||||
Austin |
1,966,000 | 1,177,000 | 1,300,000 | 458,000 | 88.3 | 84.5 | 89.7 | 83.7 | ||||||||||||||||||||||||
Denver |
2,473,000 | 2,761,000 | 1,672,000 | 887,000 | 85.6 | 84.5 | 88.1 | 85.5 | ||||||||||||||||||||||||
Miami |
778,000 | 1,998,000 | 692,000 | 757,000 | 92.7 | 91.4 | 92.0 | 88.7 | ||||||||||||||||||||||||
Las Vegas |
900,000 | 2,068,000 | 241,000 | 305,000 | 89.8 | 91.5 | 92.6 | 91.9 |
Sources: | CoStar Group for non-medical and non-owner-occupied buildings greater than 15,000 square feet (Dallas, Houston, Austin, Denver and Miami); Grubb & Ellis Las Vegas (Las Vegas). | |
(1) | Economic net absorption is the change in leased space from one period to another. | |
(2) | Economic occupancy reflects the occupancy of all tenants paying rent. |
8
Office Space | Office Space | Office Space Under | ||||||||||||||||||||||
Completions | Completions | Construction | ||||||||||||||||||||||
(in square feet) | All Classes | Class A | 2006 | |||||||||||||||||||||
Market | 2006 | 2005 | 2006 | 2005 | All Classes | Class A | ||||||||||||||||||
Dallas |
2,759,000 | 649,000 | 1,699,000 | 215,000 | 3,087,000 | 2,596,000 | ||||||||||||||||||
Houston |
1,377,000 | 970,000 | 850,000 | 192,000 | 2,514,000 | 889,000 | ||||||||||||||||||
Austin |
378,000 | 384,000 | 148,000 | | 1,247,000 | 807,000 | ||||||||||||||||||
Denver |
1,677,000 | 454,000 | 596,000 | | 803,000 | 292,000 | ||||||||||||||||||
Miami |
369,000 | 588,000 | 255,000 | 36,000 | 3,077,000 | 1,170,000 | ||||||||||||||||||
Las Vegas |
2,956,000 | 2,569,000 | | 365,000 | 2,821,000 | 1,187,000 |
Sources: | CoStar Group (Dallas, Houston, Austin, Denver and Miami); Restrepo Consulting Group, LLC (Las Vegas). |
9
10
11
Percentage of | ||||
2006 Segment Revenue | ||||
H.J. Heinz Company |
17.9 | % | ||
ConAgra Foods, Inc. |
9.6 | |||
Altria Group Inc. (Kraft Foods) |
5.7 | |||
Schwan Corp. |
4.3 | |||
Tyson Foods, Inc. |
4.1 | |||
General Mills, Inc. |
3.5 | |||
Sara Lee Corp. |
3.3 | |||
McCain Foods Limited |
3.2 | |||
U.S. Government |
3.1 | |||
Smithfield Companies Inc. |
2.9 | |||
Wayne Farms LLC |
2.6 | |||
Rich Products Corp. |
2.4 | |||
Jack in the Box Inc. |
2.3 | |||
J. R. Simplot Company |
2.2 | |||
Other |
32.9 | |||
Total |
100.0 | % | ||
| we may face various disruptions to the operation of our business as a result of the substantial time and effort invested by our management in connection with the Strategic Plan, and may be unable to respond effectively to competitive pressures or take advantage of new business opportunities; | ||
| our decision to implement the Strategic Plan may cause harm to relationships with our employees and/or may divert employee attention away from day-to-day operations of our business; | ||
| our decision to implement the Strategic Plan requires cooperation of our strategic business partners, including our relationships with the management of Canyon Ranch and East West Partners; | ||
| regardless of our ability to consummate the Strategic Plan, we would remain liable for significant costs relating thereto, including, among others, severance and retention payments, and accounting, legal and financial advisory expenses; and | ||
| an announcement that we have abandoned or cannot fully implement the Strategic Plan could trigger a decline in our common share price to the extent that our share price reflects a market assumption that we will complete the Strategic Plan. |
12
| downturns in the national, regional and local economic conditions where our properties are located; | ||
| competition from other Office, Resort Residential Development, Resort/Hotel and Temperature-Controlled Logistics properties; | ||
| adverse changes in local real estate market conditions, such as oversupply or reduction in demand for office space, luxury residences, Resort/Hotel space or Temperature-Controlled Logistics storage space; | ||
| changes in tenant preferences that reduce the attractiveness of our properties to tenants; | ||
| tenant defaults; | ||
| zoning or other regulatory restrictions; | ||
| decreases in market rental rates; | ||
| costs associated with the need to periodically repair, renovate and re-lease space; | ||
| increases in the cost of maintenance, insurance and other operating costs, including real estate taxes, associated with one or more properties, which may occur even when circumstances such as market factors and competition cause a reduction in revenues from one or more properties; and | ||
| illiquidity of real estate investments, which may limit our ability to vary our portfolio promptly in response to changes in economic or other conditions. |
13
| $65.0 million in termination fees in periodic installments through December 31, 2007 (of which $35.0 million has been received as of December 31, 2006, and is included in restricted cash in our Consolidated Balance Sheets as it is required to be escrowed with the lender); and | ||
| $62.0 million in rent according to original contractual lease terms from July 1, 2005, through December 31, 2007 (of which $39.8 million has been received as of December 31, 2006). |
14
| become bankrupt; | ||
| have economic or other business interests or goals which are unlike or incompatible with our business interests or goals; | ||
| be in a position to take action contrary to our suggestions or instructions, or in opposition to our policies or objectives (including actions that may be inconsistent with our REIT status); and | ||
| have different objectives from us regarding the appropriate timing and pricing of any sale or refinancing of the properties. |
15
| Based on features such as access, location, quality of accommodations, room-rate structure and, to a lesser extent, the quality and scope of other amenities such as food and beverage facilities, our Resort/Hotel properties compete for guests with other resorts and hotels, a number of which have greater marketing and financial resources than our lessees or the Resort/Hotel property managers; | ||
| If there is an increase in operating costs resulting from inflation or other factors, we or the property managers may not be able to offset the increase by increasing room rates; | ||
| Our Resort/Hotel Properties are subject to fluctuating and seasonal demands for business travel and tourism; and | ||
| Our Resort/Hotel Properties are subject to general and local economic conditions that may affect the demand for travel in general and other factors that are beyond our control, such as acts of terrorism. |
| We may be unable to obtain, or suffer delays in obtaining, necessary zoning, land-use, building, occupancy and other required governmental permits and authorizations, which could result in increased costs or our abandonment of these activities; | ||
| We may incur costs for development, expansion or renovation of a property which exceed our original estimates due to increased costs for materials or labor or other costs that were unexpected; | ||
| We may not be able to obtain financing with favorable terms, which may make us unable to proceed with our development and other related activities on the schedule we originally planned or at all; | ||
| We may be unable to complete construction and sale or lease-up of a lot, office property or resort residential development unit on schedule, which could result in increased debt service expense or construction costs; | ||
| We may lease, rent or sell developed properties at below expected rental rates, room rates or unit prices; and | ||
| Occupancy rates, rents or unit sales at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, and may result in our investment not being profitable. |
16
| make it difficult to satisfy our debt service requirements; | ||
| prevent us from making distributions on our outstanding common shares and preferred shares; | ||
| require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for operations, property acquisitions and other appropriate business opportunities that may arise in the future; | ||
| require us to dedicate increased amounts of our cash flow from operations to payments on our variable rate, unhedged debt if interest rates rise; | ||
| limit our flexibility in planning for, or reacting to, changes in our business and the factors that affect the profitability of our business; | ||
| limit our ability to obtain additional financing, if we need it in the future for working capital, debt refinancing, capital expenditures, acquisitions, development or other general corporate purposes; and | ||
| limit our flexibility in conducting our business, which may place us at a disadvantage compared to competitors with less debt. |
17
| relating to the maintenance of the property securing the debt; | ||
| relating to minimum acceptable insurance coverage on our properties; | ||
| restricting our ability to pledge assets or create other liens; | ||
| restricting our ability to incur additional debt; | ||
| restricting our ability to amend or modify existing leases; and | ||
| restricting our ability to enter into transactions with affiliates. |
| incur additional debt; | ||
| incur additional secured debt and subsidiary debt; | ||
| make certain distributions, investments and other restricted payments, including distribution payments on our or our subsidiaries outstanding common and preferred equity; | ||
| limit the ability of restricted subsidiaries to make payments to us; | ||
| enter into transactions with affiliates; | ||
| create certain liens; | ||
| enter into certain sale-leaseback transactions; and | ||
| consolidate, merge or sell all or substantially all of our assets. |
| our financial condition, performance and prospects; | ||
| the market for similar securities; | ||
| additional issuance of other classes or series of our shares, particularly preferred shares, or the issuance of debt securities; | ||
| the amount of distributions paid on our common and preferred shares; | ||
| an announcement regarding future dividend pay-out ranges on our common shares; | ||
| general economic and financial market conditions; and | ||
| prevailing interest rates, increases in which may have a negative effect on the trading value of our preferred shares. |
18
19
20
| reducing the number of suitable investment opportunities offered to us; and |
| increasing the bargaining power of property owners. |
21
| interfering with our ability to attract and retain tenants, guests or purchasers; and |
| adversely affecting our ability to minimize expenses of operation. |
| We may not be able to identify suitable properties to acquire or may be unable to complete the acquisition of the properties we select for acquisition; | ||
| We may not be able to integrate new acquisitions into our existing operations successfully; | ||
| Our estimate of the costs of improving, repositioning or redeveloping an acquired property may prove to be too low, and, as a result, the property may fail to meet our estimates of the profitability of the property, either temporarily or for a longer time; | ||
| Office properties, resorts or hotels we acquire may fail to achieve the occupancy and rental or room rates we anticipate at the time we make the decision to invest in the properties, resulting in lower profitability than we expected in analyzing the properties; | ||
| Our pre-acquisition evaluation of the physical condition of each new investment may not detect certain defects or necessary repairs until after the property is acquired, which could significantly increase our total acquisition costs; and | ||
| Our investigation of a property or building prior to its acquisition, and any representations we may receive from the seller, may fail to reveal various liabilities, which could effectively reduce the cash flow from the property or building, or increase our acquisition cost. |
22
23
24
Weighted | ||||||||||||||||||||||||
Average Full- | ||||||||||||||||||||||||
Service | ||||||||||||||||||||||||
Rental Rate | ||||||||||||||||||||||||
Economic | Per | Our | ||||||||||||||||||||||
No. of | Net Rentable | Occupancy | Occupied | Ownership | ||||||||||||||||||||
State, City, Property | Properties | Submarket | Year Completed | Area (Sq. Ft.) | Percentage | Sq. Ft. (2) | Percentage (1) | |||||||||||||||||
Texas |
||||||||||||||||||||||||
Dallas |
||||||||||||||||||||||||
The Crescent |
2 | Uptown/Turtle Creek | 1985 | 1,299,522 | 98.5 | 34.49 | 24 | % | ||||||||||||||||
Fountain Place |
1 | CBD | 1986 | 1,200,266 | 91.2 | 21.38 | 24 | % | ||||||||||||||||
Trammell Crow Center |
1 | CBD | 1984 | 1,128,331 | 90.1 | 24.20 | 24 | % | ||||||||||||||||
Stemmons Place |
1 | Stemmons Freeway | 1983 | 634,381 | 66.4 | 16.82 | 100 | % | ||||||||||||||||
Spectrum Center |
1 | Quorum/Bent Tree | 1983 | 598,250 | 92.1 | 20.60 | 100 | % | ||||||||||||||||
125 E. John Carpenter Freeway |
1 | Las Colinas | 1982 | 446,031 | 88.3 | 20.78 | 100 | % | ||||||||||||||||
The Aberdeen |
1 | Quorum/Bent Tree | 1986 | 319,758 | 95.5 | 16.80 | 100 | % | ||||||||||||||||
MacArthur Center I & II |
1 | Las Colinas | 1982/1986 | 298,161 | 81.0 | 19.01 | 100 | % | ||||||||||||||||
Stanford Corporate Centre |
1 | Quorum/Bent Tree | 1985 | 274,684 | 88.5 | (3) | 21.29 | 100 | % | |||||||||||||||
Palisades Central II |
1 | Richardson | 1985 | 240,935 | 95.3 | 20.83 | 100 | % | ||||||||||||||||
3333 Lee Parkway |
1 | Uptown/Turtle Creek | 1983 | 233,543 | 98.3 | 19.47 | 100 | % | ||||||||||||||||
The Addison |
1 | Quorum/Bent Tree | 1981 | 215,016 | 100.0 | 23.09 | 100 | % | ||||||||||||||||
Palisades Central I |
1 | Richardson | 1980 | 180,503 | 76.3 | 18.16 | 100 | % | ||||||||||||||||
Greenway II |
1 | Richardson | 1985 | 154,329 | 99.9 | 18.03 | 100 | % | ||||||||||||||||
Greenway I & IA |
2 | Richardson | 1983 | 146,704 | 74.7 | 16.64 | 100 | % | ||||||||||||||||
Subtotal/Weighted Average |
17 | 7,370,414 | 89.9 | % | $ | 23.38 | 63 | % | ||||||||||||||||
Fort Worth |
||||||||||||||||||||||||
Carter Burgess Plaza |
1 | CBD | 1982 | 954,895 | 96.4 | % | $ | 19.88 | 100 | % | ||||||||||||||
Houston |
||||||||||||||||||||||||
Greenway Plaza |
10 | Greenway Plaza | 1969-1982 | 4,348,052 | 86.5 | % | $ | 19.67 | 100 | % | ||||||||||||||
Houston Center |
4 | CBD | 1974-1983 | 2,960,544 | 91.5 | 19.96 | 24 | % | ||||||||||||||||
Post Oak Central |
3 | West Loop/Galleria | 1974-1981 | 1,279,759 | 96.7 | 20.90 | 24 | % | ||||||||||||||||
Fulbright Tower |
1 | CBD | 1982 | 1,247,061 | 73.4 | (3) | 20.37 | 24 | % | |||||||||||||||
Five Post Oak Park |
1 | West Loop/Galleria | 1986 | 567,396 | 88.9 | 19.04 | 30 | % | ||||||||||||||||
BriarLake Plaza |
1 | Westchase | 2000 | 502,410 | 87.3 | (3) | 24.61 | 30 | % | |||||||||||||||
Subtotal/Weighted Average |
20 | 10,905,222 | 87.7 | % | $ | 20.17 | 55 | % | ||||||||||||||||
Austin |
||||||||||||||||||||||||
816 Congress |
1 | CBD | 1984 | 433,024 | 77.3 | % | $ | 20.81 | 100 | % | ||||||||||||||
301 Congress Avenue |
1 | CBD | 1986 | 418,338 | 82.1 | 23.03 | 50 | % | ||||||||||||||||
Austin Centre |
1 | CBD | 1986 | 343,664 | 97.2 | 18.95 | 100 | % | ||||||||||||||||
The Avallon |
3 | Northwest | 1993/1997 | 318,217 | 93.1 | 20.50 | 100 | % | ||||||||||||||||
Subtotal/Weighted Average |
6 | 1,513,243 | 86.5 | % | $ | 20.84 | 86 | % | ||||||||||||||||
Colorado |
||||||||||||||||||||||||
Denver
Johns Manville Plaza |
1 | CBD | 1978 | 675,400 | 91.5 | % | $ | 19.84 | 100 | % | ||||||||||||||
707 17th Street |
1 | CBD | 1982 | 550,805 | 91.9 | 20.42 | 100 | % | ||||||||||||||||
Regency Plaza |
1 | Denver Technology Center | 1985 | 309,862 | 86.5 | (3) | 18.76 | 100 | % | |||||||||||||||
Peakview Tower |
1 | Greenwood Village | 2001 | 264,149 | 91.4 | 24.05 | 100 | % | ||||||||||||||||
55 Madison |
1 | Cherry Creek | 1982 | 137,176 | 93.8 | 19.03 | 100 | % | ||||||||||||||||
The Citadel |
1 | Cherry Creek | 1987 | 130,652 | 92.4 | 24.94 | 100 | % | ||||||||||||||||
44 Cook |
1 | Cherry Creek | 1984 | 124,174 | 81.2 | 18.87 | 100 | % | ||||||||||||||||
Subtotal/Weighted Average |
7 | 2,192,218 | 90.5 | % | $ | 20.56 | 100 | % | ||||||||||||||||
Colorado Springs |
||||||||||||||||||||||||
Briargate Office and
Research Center |
1 | Northeast | 1988 | 260,046 | 87.3 | % | $ | 18.16 | 100 | % | ||||||||||||||
25
Weighted | ||||||||||||||||||||||||
Average Full- | ||||||||||||||||||||||||
Service | ||||||||||||||||||||||||
Rental Rate | ||||||||||||||||||||||||
Economic | Per | Our | ||||||||||||||||||||||
No. of | Net Rentable | Occupancy | Occupied | Ownership | ||||||||||||||||||||
State, City, Property | Properties | Submarket | Year Completed | Area (Sq. Ft.) | Percentage | Sq. Ft. (2) | Percentage (1) | |||||||||||||||||
Florida |
||||||||||||||||||||||||
Miami |
||||||||||||||||||||||||
Miami Center |
1 | CBD | 1983 | 782,211 | 93.2 | % (3) | $ | 32.44 | 40 | % | ||||||||||||||
Datran Center |
2 | Kendall/Dadeland | 1986/1988 | 476,412 | 94.3 | 29.01 | 100 | % | ||||||||||||||||
The Alhambra |
2 | Coral Gables | 1961/1987 | 325,005 | 92.0 | 30.47 | 100 | % | ||||||||||||||||
The BAC Colonnade Building |
1 | Coral Gables | 1989 | 218,170 | 89.6 | 33.40 | 100 | % | ||||||||||||||||
Subtotal/Weighted Average |
6 | 1,801,798 | 92.8 | % | $ | 31.28 | 74 | % | ||||||||||||||||
California |
||||||||||||||||||||||||
Orange County |
||||||||||||||||||||||||
Dupont Centre |
1 | Airport Office Area | 1986 | 250,782 | 97.3 | % | $ | 27.41 | 100 | % | ||||||||||||||
Nevada |
||||||||||||||||||||||||
Las Vegas |
||||||||||||||||||||||||
Hughes Center |
8 | Central East | 1986 - 1999 | 1,111,388 | 97.5 | % | $ | 33.60 | 100 | % | ||||||||||||||
Georgia |
||||||||||||||||||||||||
Atlanta |
||||||||||||||||||||||||
One Buckhead Plaza |
1 | Buckhead | 1987 | 461,669 | 91.3 | % | $ | 30.48 | 35 | % | ||||||||||||||
One Live Oak |
1 | Buckhead | 1981 | 201,488 | 88.7 | 24.24 | 100 | % | ||||||||||||||||
Subtotal/Weighted Average |
2 | 663,157 | 90.5 | % | $ | 28.62 | 55 | % | ||||||||||||||||
Washington |
||||||||||||||||||||||||
Seattle |
||||||||||||||||||||||||
Exchange Building |
1 | CBD | 1930/2001 | 295,515 | 99.0 | % | $ | 24.57 | 100 | % | ||||||||||||||
Total Office Portfolio
Excluding Properties Not
Stabilized |
70 | 27,318,678 | 89.8 | % (3) | $ | 22.78 | (4) | 68 | % | |||||||||||||||
PROPERTIES NOT STABILIZED |
||||||||||||||||||||||||
Arizona |
||||||||||||||||||||||||
Phoenix |
||||||||||||||||||||||||
Financial Plaza (5) |
1 | Mesa | 1986 | 309,983 | 80.6 | % | $ | 25.06 | 100 | % | ||||||||||||||
Total Office Portfolio |
71 | 27,628,661 | 69 | % | ||||||||||||||||||||
(1) | Office Property Table data is presented without adjustments to reflect our actual ownership percentage in joint ventured properties. Our actual ownership percentage in each property has been included for informational purposes. | |
(2) | Calculated in accordance with GAAP based on base rent payable as of December 31, 2006, giving effect to free rent and scheduled rent increases and including adjustments for expenses payable by or reimbursable from customers. The weighted average full-service rental rate for the El Paso lease (Greenway Plaza, Houston, Texas) reflects weighted average full-service rental rate over the shortened term (due to lease termination effective as of December 31, 2007) and excludes the impact of the net lease termination fee being amortized into revenue through December 31, 2007. | |
(3) | Leases have been executed at certain Office Properties but had not commenced as of December 31, 2006. If such leases had commenced as of December 31, 2006, the percent leased for Office Properties would have been 92.6%. Properties whose percent leased exceeds economic occupancy by 5 percentage points or more are as follows: Stanford Corporate Centre 94.1%, Fullbright Tower 91.7%, BriarLake Plaza 97.3, Regency Plaza 93.8% and Miami Center 98.8%. | |
(4) | The weighted average full-service cash rental rate per square foot calculated based on base rent payable for Office Properties as of December 31, 2006, without giving effect to free rent and scheduled rent increases that are taken into consideration under GAAP but including adjustments for expenses paid by or reimbursed from customers is $22.55. | |
(5) | Property statistics exclude Financial Plaza (acquired January 2006). This office property will be included in portfolio statistics once stabilized. Stabilization is deemed to occur upon the earlier of (a) achieving 90% occupancy, (b) one year following the acquisition date or date placed in service (related to developments), or (c) two years following the acquisition date for properties which are being repositioned. |
26
Percent of | ||||
Industry Sector | Leased Sq. Ft. | |||
Professional and Business Services |
32 | % | ||
Financial Activities |
27 | |||
Natural Resources, Mining, Construction |
18 | |||
Information |
5 | |||
Trade, Transportation, Utilities |
4 | |||
Public Administration |
4 | |||
Manufacturing |
4 | |||
Leisure and Hospitality |
4 | |||
Education and Health Services |
1 | |||
Other Services |
1 | |||
Total Leased |
100 | % | ||
27
Square | Square | Crescents | % of | Annual | |||||||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Share of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Expiring | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Square Footage | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | (After Renewals | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | and Relets) | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||||||
Q1 2007 |
1,529,501 | (1,008,685 | ) | 520,816 | 2.2 | 356,887 | $ | 9,271,512 | 1.7 | $ | 17.80 | 192 | |||||||||||||||||||||||||||
Q2 2007 |
676,701 | (250,959 | ) | 425,742 | 1.8 | 262,548 | 9,644,046 | 1.8 | 22.65 | 76 | |||||||||||||||||||||||||||||
Q3 2007 |
401,377 | (109,255 | ) | 292,122 | 1.2 | 238,632 | 6,654,607 | 1.2 | 22.78 | 65 | |||||||||||||||||||||||||||||
Q4 2007 |
597,153 | 173,046 | 770,199 | 3.2 | 426,478 | 18,354,467 | 3.3 | 23.83 | 63 | ||||||||||||||||||||||||||||||
Total 2007 |
3,204,732 | (4) | (1,195,853 | ) | 2,008,879 | (4) | 8.4 | % | 1,284,545 | $ | 43,924,632 | 8.0 | % | $ | 21.87 | 396 | |||||||||||||||||||||||
Q1 2008 |
1,123,514 | (43,782 | ) | 1,079,732 | 4.5 | 927,689 | $ | 24,763,642 | 4.5 | $ | 22.93 | 64 | |||||||||||||||||||||||||||
Q2 2008 |
458,494 | (15,598 | ) | 442,896 | 1.8 | 366,677 | 10,610,394 | 1.9 | 23.96 | 73 | |||||||||||||||||||||||||||||
Q3 2008 |
422,896 | (48,346 | ) | 374,550 | 1.6 | 234,722 | 8,845,813 | 1.6 | 23.62 | 73 | |||||||||||||||||||||||||||||
Q4 2008 |
479,305 | (55,774 | ) | 423,531 | 1.8 | 337,022 | 10,120,853 | 1.8 | 23.90 | 80 | |||||||||||||||||||||||||||||
Total 2008 |
2,484,209 | (163,500 | ) | 2,320,709 | 9.7 | % | 1,866,110 | $ | 54,340,702 | 9.8 | % | $ | 23.42 | 290 | |||||||||||||||||||||||||
2009 |
2,581,216 | (73,993 | ) | 2,507,223 | 10.4 | 1,714,536 | $ | 58,488,832 | 10.6 | $ | 23.33 | 301 | |||||||||||||||||||||||||||
2010 |
2,111,239 | 169,775 | 2,281,014 | 9.5 | 1,462,189 | 55,193,305 | 10.0 | 24.20 | 250 | ||||||||||||||||||||||||||||||
2011 |
2,232,042 | 44,709 | 2,276,751 | 9.4 | 1,633,071 | 56,202,831 | 10.2 | 24.69 | 235 | ||||||||||||||||||||||||||||||
2012 |
1,498,307 | 317,784 | 1,816,091 | 7.5 | 1,410,079 | 41,972,305 | 7.6 | 23.11 | 111 | ||||||||||||||||||||||||||||||
2013 |
1,942,939 | 129,854 | 2,072,793 | 8.6 | 1,563,202 | 47,746,034 | 8.7 | 23.03 | 93 | ||||||||||||||||||||||||||||||
2014 |
3,273,247 | 187,140 | 3,460,387 | 14.3 | 2,172,475 | 72,301,983 | 13.1 | 20.89 | 48 | ||||||||||||||||||||||||||||||
2015 |
1,720,570 | 29,531 | 1,750,101 | 7.3 | 1,281,374 | 40,189,224 | 7.3 | 22.96 | 60 | ||||||||||||||||||||||||||||||
2016 |
1,213,952 | 11,713 | 1,225,665 | 5.1 | 539,239 | 29,272,813 | 5.3 | 23.88 | 59 | ||||||||||||||||||||||||||||||
2017 and thereafter |
1,853,425 | 542,840 | 2,396,265 | 9.8 | 1,450,899 | 50,610,106 | 9.4 | 21.12 | 36 | ||||||||||||||||||||||||||||||
Total |
24,115,878 | | 24,115,878 | (5) | 100.0 | % | 16,377,719 | $ | 550,242,767 | 100.0 | % | $ | 22.82 | 1,879 | |||||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 1,825,691 square feet (including relets and renewals of 1,195,853 square feet and new leases of 629,838 square feet) have been signed and will commence during 2007. These signed leases represent approximately 57% of gross square footage expiring during 2007. Expiring square footage includes 247,361 square feet of month-to-month leases. | |
(5) | Reconciliation of Occupied SF to Net Rentable Area: |
Occupied SF Per Above: | 24,115,878 | ||||||
Non-revenue Generating Space: | 405,938 | ||||||
Total Occupied Office SF: | 24,521,816 | ||||||
Total Vacant SF: | 2,796,862 | ||||||
Total Stabilized Office NRA: | 27,318,678 | ||||||
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
458,157 | (403,976 | ) | 54,181 | 0.8 | $ | 1,265,432 | 0.8 | $ | 23.36 | 33 | |||||||||||||||||||||||
Q2 2007 |
106,697 | (15,259 | ) | 91,438 | 1.4 | 1,743,619 | 1.1 | 19.07 | 16 | |||||||||||||||||||||||||
Q3 2007 |
87,395 | (39,350 | ) | 48,045 | 0.7 | 844,161 | 0.5 | 17.57 | 11 | |||||||||||||||||||||||||
Q4 2007 |
76,704 | 316,377 | 393,081 | 6.0 | 9,398,804 | 6.1 | 23.91 | 9 | ||||||||||||||||||||||||||
Total 2007 |
728,953 | (4) | (142,208 | ) | 586,745 | (4) | 8.9 | % | $ | 13,252,016 | 8.5 | $ | 22.59 | 69 | ||||||||||||||||||||
Q1 2008 |
144,242 | 1,388 | 145,630 | 2.2 | $ | 3,596,739 | 2.3 | $ | 24.70 | 13 | ||||||||||||||||||||||||
Q2 2008 |
90,001 | 1,579 | 91,580 | 1.4 | 2,158,883 | 1.4 | 23.57 | 17 | ||||||||||||||||||||||||||
Q3 2008 |
79,743 | (9,650 | ) | 70,093 | 1.1 | 1,493,525 | 1.0 | 21.31 | 20 | |||||||||||||||||||||||||
Q4 2008 |
110,721 | (17,109 | ) | 93,612 | 1.4 | 1,967,611 | 1.3 | 21.02 | 22 | |||||||||||||||||||||||||
Total 2008 |
424,707 | (23,792 | ) | 400,915 | 6.1 | % | $ | 9,216,758 | 6.0 | $ | 22.99 | 72 | ||||||||||||||||||||||
2009 |
459,179 | (1,411 | ) | 457,768 | 7.0 | $ | 11,745,207 | 7.6 | $ | 25.66 | 54 | |||||||||||||||||||||||
2010 |
640,621 | 12,222 | 652,843 | 10.0 | 16,302,254 | 10.6 | 24.97 | 59 | ||||||||||||||||||||||||||
2011 |
469,972 | (65,847 | ) | 404,125 | 6.2 | 10,331,270 | 6.7 | 25.56 | 38 | |||||||||||||||||||||||||
2012 |
340,047 | 46,526 | 386,573 | 5.9 | 8,461,619 | 5.5 | 21.89 | 32 | ||||||||||||||||||||||||||
2013 |
503,065 | 80,544 | 583,609 | 8.9 | 14,362,393 | 9.3 | 24.61 | 26 | ||||||||||||||||||||||||||
2014 |
630,572 | 7,922 | 638,494 | 9.7 | 14,440,942 | 9.4 | 22.62 | 13 | ||||||||||||||||||||||||||
2015 |
936,483 | 17,599 | 954,082 | 14.6 | 22,054,983 | 14.3 | 23.12 | 22 | ||||||||||||||||||||||||||
2016 |
204,867 | | 204,867 | 3.1 | 5,809,013 | 3.8 | 28.36 | 14 | ||||||||||||||||||||||||||
2017 and
thereafter |
1,214,468 | 68,445 | 1,282,913 | 19.6 | 27,753,961 | 18.3 | 21.63 | 13 | ||||||||||||||||||||||||||
Total |
6,552,934 | | 6,552,934 | 100.0 | % | $ | 153,730,416 | 100.0 | $ | 23.46 | 412 | |||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 201,481 square feet (including relets and renewals of 142,208 square feet and new leases of 59,273 square feet) have been signed and will commence during 2007. These signed leases represent approximately 28% of gross square footage expiring during 2007. Expiring square footage includes 14,018 square feet of month-to-month leases. |
28
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renwals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
789,946 | (502,076 | ) | 287,870 | 3.1 | $ | 4,428,987 | 2.4 | $ | 15.39 | 95 | |||||||||||||||||||||||
Q2 2007 |
343,944 | (163,389 | ) | 180,555 | 1.9 | 3,577,680 | 1.9 | 19.81 | 21 | |||||||||||||||||||||||||
Q3 2007 |
176,376 | (65,187 | ) | 111,189 | 1.2 | 2,197,816 | 1.2 | 19.77 | 21 | |||||||||||||||||||||||||
Q4 2007 |
173,733 | (27,070 | ) | 146,663 | 1.6 | 2,969,467 | 1.6 | 20.25 | 24 | |||||||||||||||||||||||||
Total 2007 |
1,483,999 | (4) | (757,722 | ) | 726,277 | (4) | 7.8 | % | $ | 13,173,950 | 7.1 | % | $ | 18.14 | 161 | |||||||||||||||||||
Q1 2008 |
816,224 | (20,516 | ) | 795,708 | 8.4 | $ | 17,387,899 | 9.2 | $ | 21.85 | 24 | |||||||||||||||||||||||
Q2 2008 |
110,715 | 4,779 | 115,494 | 1.2 | 2,270,779 | 1.2 | 19.66 | 20 | ||||||||||||||||||||||||||
Q3 2008 |
217,357 | (33,057 | ) | 184,300 | 2.0 | 3,995,546 | 2.1 | 21.68 | 25 | |||||||||||||||||||||||||
Q4 2008 |
180,656 | (7,927 | ) | 172,729 | 1.8 | 3,602,549 | 1.9 | 20.86 | 26 | |||||||||||||||||||||||||
Total 2008 |
1,324,952 | (56,721 | ) | 1,268,231 | 13.4 | % | $ | 27,256,773 | 14.4 | % | $ | 21.49 | 95 | |||||||||||||||||||||
2009 |
965,859 | 103 | 965,962 | 10.3 | $ | 18,567,268 | 9.9 | $ | 19.22 | 100 | ||||||||||||||||||||||||
2010 |
548,711 | 107,150 | 655,861 | 7.0 | 12,697,593 | 6.7 | 19.36 | 80 | ||||||||||||||||||||||||||
2011 |
750,787 | 21,350 | 772,137 | 8.2 | 15,434,732 | 8.2 | 19.99 | 78 | ||||||||||||||||||||||||||
2012 |
601,136 | 138,685 | 739,821 | 7.9 | 15,697,606 | 8.3 | 21.22 | 36 | ||||||||||||||||||||||||||
2013 |
449,801 | 24,078 | 473,879 | 5.0 | 9,845,448 | 5.2 | 20.78 | 15 | ||||||||||||||||||||||||||
2014 |
1,829,951 | 102,963 | 1,932,914 | 20.5 | 38,897,610 | 20.6 | 20.12 | 16 | ||||||||||||||||||||||||||
2015 |
372,354 | | 372,354 | 4.0 | 6,963,821 | 3.7 | 18.70 | 14 | ||||||||||||||||||||||||||
2016 |
723,018 | 11,713 | 734,731 | 7.8 | 15,736,199 | 8.4 | 21.42 | 28 | ||||||||||||||||||||||||||
2017 and
thereafter |
372,754 | 408,401 | 781,155 | 8.1 | 14,175,940 | 7.5 | 18.15 | 9 | ||||||||||||||||||||||||||
Total |
9,423,322 | | 9,423,322 | 100.0 | % | $ | 188,446,940 | 100.0 | % | $ | 20.00 | 632 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 1,202,482 square feet (including relets and renewals of 757,722 square feet and new leases of 444,760 square feet) have been signed and will commence during 2007. These signed leases represent approximately 81% of gross square footage expiring during 2007. Expiring square footage includes 144,374 square feet of month-to-month leases. |
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
72,878 | (17,512 | ) | 55,366 | 4.3 | $ | 706,809 | 2.6 | $ | 12.77 | 13 | |||||||||||||||||||||||
Q2 2007 |
9,904 | 1,484 | 11,388 | 0.9 | 204,182 | 0.8 | 17.93 | 3 | ||||||||||||||||||||||||||
Q3 2007 |
12,386 | (1,824 | ) | 10,562 | 0.8 | 196,659 | 0.7 | 18.62 | 5 | |||||||||||||||||||||||||
Q4 2007 |
23,405 | | 23,405 | 1.8 | 494,407 | 1.8 | 21.12 | 6 | ||||||||||||||||||||||||||
Total 2007 |
118,573 | (4) | (17,852 | ) | 100,721 | (4) | 7.8 | % | $ | 1,602,057 | 5.9 | % | $ | 15.91 | 27 | |||||||||||||||||||
Q1 2008 |
10,313 | | 10,313 | 0.8 | $ | 160,125 | 0.6 | $ | 15.53 | 5 | ||||||||||||||||||||||||
Q2 2008 |
4,788 | | 4,788 | 0.4 | 104,876 | 0.4 | 21.90 | 3 | ||||||||||||||||||||||||||
Q3 2008 |
20,061 | | 20,061 | 1.6 | 491,386 | 1.8 | 24.49 | 8 | ||||||||||||||||||||||||||
Q4 2008 |
32,708 | | 32,708 | 2.5 | 877,009 | 3.2 | 26.81 | 4 | ||||||||||||||||||||||||||
Total 2008 |
67,870 | | 67,870 | 5.3 | % | $ | 1,633,396 | 6.0 | % | $ | 24.07 | 20 | ||||||||||||||||||||||
2009 |
199,764 | (48,767 | ) | 150,997 | 11.8 | $ | 3,371,645 | 12.5 | $ | 22.33 | 26 | |||||||||||||||||||||||
2010 |
163,394 | 16,028 | 179,422 | 14.0 | 3,422,001 | 12.7 | 19.07 | 26 | ||||||||||||||||||||||||||
2011 |
102,375 | 50,591 | 152,966 | 11.9 | 3,589,116 | 13.3 | 23.46 | 15 | ||||||||||||||||||||||||||
2012 |
67,188 | | 67,188 | 5.2 | 1,501,417 | 5.6 | 22.35 | 8 | ||||||||||||||||||||||||||
2013 |
105,228 | | 105,228 | 8.2 | 2,220,392 | 8.2 | 21.10 | 9 | ||||||||||||||||||||||||||
2014 |
253,980 | | 253,980 | 19.8 | 5,517,181 | 20.4 | 21.72 | 4 | ||||||||||||||||||||||||||
2015 |
129,488 | | 129,488 | 10.1 | 2,610,609 | 9.7 | 20.16 | 10 | ||||||||||||||||||||||||||
2016 |
67,509 | | 67,509 | 5.3 | 1,288,715 | 4.8 | 19.09 | 3 | ||||||||||||||||||||||||||
2017 and
thereafter |
9,434 | | 9,434 | 0.6 | 247,413 | 0.9 | 26.23 | 1 | ||||||||||||||||||||||||||
Total |
1,284,803 | | 1,284,803 | 100.0 | % | $ | 27,003,942 | 100.0 | % | $ | 21.02 | 149 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 38,127 square feet (including relets and renewals of 17,852 square feet and new leases of 20,275 square feet) have been signed and will commence during 2007. These signed leases represent approximately 32% of gross square footage expiring during 2007. Expiring square footage includes 35,417 square feet of month-to-month leases. |
29
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
64,250 | (34,159 | ) | 30,091 | 1.5 | $ | 507,542 | 1.2 | $ | 16.87 | 13 | |||||||||||||||||||||||
Q2 2007 |
18,646 | (5,993 | ) | 12,653 | 0.6 | 300,929 | 0.7 | 23.78 | 4 | |||||||||||||||||||||||||
Q3 2007 |
16,298 | 549 | 16,847 | 0.9 | 328,868 | 0.8 | 19.52 | 3 | ||||||||||||||||||||||||||
Q4 2007 |
14,214 | (7,955 | ) | 6,259 | 0.3 | 134,015 | 0.3 | 21.41 | 2 | |||||||||||||||||||||||||
Total 2007 |
113,408 | (4) | (47,558 | ) | 65,850 | (4) | 3.3 | % | $ | 1,271,354 | 3.0 | % | $ | 19.31 | 22 | |||||||||||||||||||
Q1 2008 |
46,161 | (23,079 | ) | 23,082 | 1.2 | $ | 528,713 | 1.3 | $ | 22.91 | 6 | |||||||||||||||||||||||
Q2 2008 |
132,980 | (3,877 | ) | 129,103 | 6.6 | 2,956,407 | 7.2 | 22.90 | 6 | |||||||||||||||||||||||||
Q3 2008 |
18,610 | | 18,610 | 0.9 | 396,545 | 1.0 | 21.31 | 3 | ||||||||||||||||||||||||||
Q4 2008 |
12,700 | (2,978 | ) | 9,722 | 0.5 | 220,596 | 0.5 | 22.69 | 4 | |||||||||||||||||||||||||
Total 2008 |
210,451 | (29,934 | ) | 180,517 | 9.2 | % | $ | 4,102,261 | 10.0 | % | $ | 22.73 | 19 | |||||||||||||||||||||
2009 |
234,658 | (52,720 | ) | 181,938 | 9.2 | $ | 3,729,509 | 9.1 | $ | 20.50 | 26 | |||||||||||||||||||||||
2010 |
198,027 | 20,537 | 218,564 | 11.1 | 4,810,970 | 11.8 | 22.01 | 18 | ||||||||||||||||||||||||||
2011 |
200,877 | 7,615 | 208,492 | 10.6 | 4,562,349 | 11.1 | 21.88 | 22 | ||||||||||||||||||||||||||
2012 |
180,482 | 83,980 | 264,462 | 13.4 | 5,995,876 | 14.7 | 22.67 | 12 | ||||||||||||||||||||||||||
2013 |
160,969 | (57,190 | ) | 103,779 | 5.3 | 2,138,630 | 5.2 | 20.61 | 9 | |||||||||||||||||||||||||
2014 |
444,840 | 73,210 | 518,050 | 26.3 | 10,368,492 | 25.3 | 20.01 | 5 | ||||||||||||||||||||||||||
2015 |
18,637 | | 18,637 | 0.9 | 372,567 | 0.9 | 19.99 | 3 | ||||||||||||||||||||||||||
2016 |
64,075 | | 64,075 | 3.3 | 1,073,124 | 2.6 | 16.75 | 3 | ||||||||||||||||||||||||||
2017 and thereafter |
144,050 | 2,060 | 146,110 | 7.4 | 2,498,672 | 6.3 | 17.10 | 5 | ||||||||||||||||||||||||||
Total |
1,970,474 | | 1,970,474 | 100.0 | % | $ | 40,923,804 | 100.0 | % | $ | 20.77 | 144 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 new leases totaling 88,007 square feet (including relets and renewals of 47,558 square feet and new leases of 40,449 square feet) have been signed and will commence during 2007. These signed leases represent approximately 78% of gross square footage expiring during 2007. Expiring square footage includes 6,751 square feet of month-to-month leases. |
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
71,586 | (18,295 | ) | 53,291 | 3.2 | $ | 1,419,646 | 2.7 | $ | 26.64 | 22 | |||||||||||||||||||||||
Q2 2007 |
86,478 | (9,610 | ) | 76,868 | 4.6 | 2,415,668 | 4.6 | 31.43 | 20 | |||||||||||||||||||||||||
Q3 2007 |
23,791 | | 23,791 | 1.4 | 678,535 | 1.3 | 28.52 | 8 | ||||||||||||||||||||||||||
Q4 2007 |
47,727 | (22,905 | ) | 24,822 | 1.5 | 643,332 | 1.2 | 25.92 | 3 | |||||||||||||||||||||||||
Total 2007 |
229,582 | (4) | (50,810 | ) | 178,772 | (4) | 10.7 | % | $ | 5,157,181 | 9.8 | % | $ | 28.85 | 53 | |||||||||||||||||||
Q1 2008 |
18,764 | (1,249 | ) | 17,515 | 1.1 | $ | 555,165 | 1.1 | $ | 31.70 | 5 | |||||||||||||||||||||||
Q2 2008 |
29,853 | 5,995 | 35,848 | 2.2 | 1,120,978 | 2.1 | 31.27 | 9 | ||||||||||||||||||||||||||
Q3 2008 |
21,544 | | 21,544 | 1.3 | 664,396 | 1.3 | 30.84 | 6 | ||||||||||||||||||||||||||
Q4 2008 |
61,354 | (11,114 | ) | 50,240 | 3.0 | 1,480,178 | 2.8 | 29.46 | 13 | |||||||||||||||||||||||||
Total 2008 |
131,515 | (6,368 | ) | 125,147 | 7.6 | % | $ | 3,820,717 | 7.3 | % | $ | 30.53 | 33 | |||||||||||||||||||||
2009 |
338,219 | (6,043 | ) | 332,176 | 20.0 | $ | 9,882,868 | 18.8 | $ | 29.75 | 40 | |||||||||||||||||||||||
2010 |
279,776 | 2,072 | 281,848 | 17.0 | 9,137,800 | 17.4 | 32.42 | 25 | ||||||||||||||||||||||||||
2011 |
147,857 | 16,049 | 163,906 | 9.9 | 5,298,991 | 10.1 | 32.33 | 23 | ||||||||||||||||||||||||||
2012 |
98,434 | 5,524 | 103,958 | 6.3 | 3,629,533 | 6.9 | 34.91 | 7 | ||||||||||||||||||||||||||
2013 |
85,113 | 2,000 | 87,113 | 5.3 | 2,774,422 | 5.3 | 31.85 | 11 | ||||||||||||||||||||||||||
2014 |
36,952 | | 36,952 | 2.2 | 1,054,130 | 2.0 | 28.53 | 2 | ||||||||||||||||||||||||||
2015 |
110,242 | 11,932 | 122,174 | 7.4 | 3,995,035 | 7.6 | 32.70 | 4 | ||||||||||||||||||||||||||
2016 |
108,226 | | 108,226 | 6.5 | 3,805,138 | 7.3 | 35.16 | 7 | ||||||||||||||||||||||||||
2017 and thereafter |
92,440 | 25,644 | 118,084 | 7.1 | 3,909,838 | 7.5 | 33.11 | 6 | ||||||||||||||||||||||||||
Total |
1,658,356 | | 1,658,356 | 100.0 | % | $ | 52,465,653 | 100.0 | % | $ | 31.64 | 211 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 99,189 square feet (including relets and renewals of 50,810 square feet and new leases of 48,379 square feet) have been signed and will commence during 2007. These signed leases represent approximately 43% of gross square footage expiring during 2007. Expiring square footage includes 25,936 square feet of month-to-month leases. |
30
Square | Square | %of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | %of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
33,578 | (12,051 | ) | 21,527 | 2.0 | $ | 608,101 | 1.7 | $ | 28.25 | 4 | |||||||||||||||||||||||
Q2 2007 |
38,769 | (29,392 | ) | 9,377 | 0.9 | 267,854 | 0.7 | 28.56 | 2 | |||||||||||||||||||||||||
Q3 2007 |
55,483 | | 55,483 | 5.2 | 1,695,604 | 4.7 | 30.56 | 9 | ||||||||||||||||||||||||||
Q4 2007 |
58,908 | (10,426 | ) | 48,482 | 4.5 | 1,580,136 | 4.3 | 32.59 | 10 | |||||||||||||||||||||||||
Total 2007 |
186,738 | (4) | (51,869 | ) | 134,869 | (4) | 12.6 | % | $ | 4,151,695 | 11.4 | % | $ | 30.78 | 25 | |||||||||||||||||||
Q1 2008 |
56,474 | 1,659 | 58,133 | 5.4 | $ | 1,821,333 | 5.0 | $ | 31.33 | 3 | ||||||||||||||||||||||||
Q2 2008 |
35,795 | | 35,795 | 3.3 | 1,203,659 | 3.3 | 33.63 | 7 | ||||||||||||||||||||||||||
Q3 2008 |
15,505 | | 15,505 | 1.4 | 487,676 | 1.3 | 31.45 | 4 | ||||||||||||||||||||||||||
Q4 2008 |
56,048 | | 56,048 | 5.2 | 1,756,564 | 4.8 | 31.34 | 6 | ||||||||||||||||||||||||||
Total 2008 |
163,822 | 1,659 | 165,481 | 15.3 | % | $ | 5,269,232 | 14.4 | % | $ | 31.84 | 20 | ||||||||||||||||||||||
2009 |
165,447 | 977 | 166,424 | 15.5 | $ | 5,469,670 | 15.0 | $ | 32.87 | 21 | ||||||||||||||||||||||||
2010 |
107,440 | 2,757 | 110,197 | 10.2 | 3,676,593 | 10.1 | 33.36 | 15 | ||||||||||||||||||||||||||
2011 |
259,486 | | 259,486 | 24.1 | 9,350,976 | 25.7 | 36.04 | 27 | ||||||||||||||||||||||||||
2012 |
35,380 | 21,119 | 56,499 | 5.2 | 2,018,546 | 5.5 | 35.73 | 3 | ||||||||||||||||||||||||||
2013 |
62,581 | | 62,581 | 5.8 | 2,207,007 | 6.1 | 35.27 | 7 | ||||||||||||||||||||||||||
2014 |
19,295 | | 19,295 | 1.8 | 605,642 | 1.7 | 31.39 | 2 | ||||||||||||||||||||||||||
2015 |
43,116 | | 43,116 | 4.0 | 1,373,599 | 3.8 | 31.86 | 1 | ||||||||||||||||||||||||||
2016 |
33,533 | | 33,533 | 3.1 | 1,268,591 | 3.5 | 37.83 | 2 | ||||||||||||||||||||||||||
2017 and thereafter |
| 25,357 | 25,357 | 2.4 | 1,029,356 | 2.8 | 40.59 | | ||||||||||||||||||||||||||
Total |
1,076,838 | | 1,076,838 | 100.0 | % | $ | 36,420,907 | 100.0 | % | $ | 33.82 | 123 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 58,652 square feet (including relets and renewals of 51,869 square feet and new leases of 6,783 square feet) have been signed and will commence during 2007. These signed leases represent approximately 31% of gross square footage expiring during 2007. Expiring square footage includes 8,399 square feet of month-to-month leases. |
Square | Square | % of | Annual | |||||||||||||||||||||||||||||||
Footage of | Signed | Footage of | Annual | Annual | Expiring | Number of | ||||||||||||||||||||||||||||
Expiring | Renewals | Expiring | % of | Full-Service | Full- | PSF | Customers | |||||||||||||||||||||||||||
Leases | and Relets | Leases | Square | Rent Under | Service | Full- | With | |||||||||||||||||||||||||||
Year of Lease | (Before Renewals | of Expiring | (After Renewals | Footage | Expiring | Rent | Service | Expiring | ||||||||||||||||||||||||||
Expiration | and Relets) (1) | Leases (2) | and Relets) (1) | Expiring | Leases (3) | Expiring | Rent (3) | Leases | ||||||||||||||||||||||||||
Q1 2007 |
39,106 | (20,616 | ) | 18,490 | 0.9 | $ | 334,995 | 0.7 | $ | 18.12 | 12 | |||||||||||||||||||||||
Q2 2007 |
72,263 | (28,800 | ) | 43,463 | 2.0 | 1,134,114 | 2.2 | 26.09 | 10 | |||||||||||||||||||||||||
Q3 2007 |
29,648 | (3,443 | ) | 26,205 | 1.2 | 712,964 | 1.4 | 27.21 | 8 | |||||||||||||||||||||||||
Q4 2007 |
202,462 | (74,975 | ) | 127,487 | 5.9 | 3,134,306 | 6.1 | 24.59 | 9 | |||||||||||||||||||||||||
Total 2007 |
343,479 | (4) | (127,834 | ) | 215,645 | (4) | 10.0 | % | $ | 5,316,379 | 10.4 | % | $ | 24.65 | 39 | |||||||||||||||||||
Q1 2008 |
31,336 | (1,985 | ) | 29,351 | 1.4 | $ | 713,668 | 1.4 | $ | 24.31 | 8 | |||||||||||||||||||||||
Q2 2008 |
54,362 | (24,074 | ) | 30,288 | 1.4 | 794,812 | 1.6 | 26.24 | 11 | |||||||||||||||||||||||||
Q3 2008 |
50,076 | (5,639 | ) | 44,437 | 2.1 | 1,316,739 | 2.6 | 29.63 | 7 | |||||||||||||||||||||||||
Q4 2008 |
25,118 | (16,646 | ) | 8,472 | 0.4 | 216,346 | 0.4 | 25.54 | 5 | |||||||||||||||||||||||||
Total 2008 |
160,892 | (48,344 | ) | 112,548 | 5.3 | % | $ | 3,041,565 | 6.0 | % | $ | 27.02 | 31 | |||||||||||||||||||||
2009 |
218,090 | 33,868 | 251,958 | 11.7 | $ | 5,722,665 | 11.2 | $ | 22.71 | 34 | ||||||||||||||||||||||||
2010 |
173,270 | 9,009 | 182,279 | 8.5 | 5,146,094 | 10.0 | 28.23 | 27 | ||||||||||||||||||||||||||
2011 |
300,688 | 14,951 | 315,639 | 14.7 | 7,635,397 | 14.9 | 24.19 | 32 | ||||||||||||||||||||||||||
2012 |
175,640 | 21,950 | 197,590 | 9.2 | 4,667,708 | 9.1 | 23.62 | 13 | ||||||||||||||||||||||||||
2013 |
576,182 | 80,422 | 656,604 | 30.6 | 14,197,742 | 27.7 | 21.62 | 16 | ||||||||||||||||||||||||||
2014 |
57,657 | 3,045 | 60,702 | 2.8 | 1,417,986 | 2.8 | 23.36 | 6 | ||||||||||||||||||||||||||
2015 |
110,250 | | 110,250 | 5.1 | 2,818,610 | 5.5 | 25.57 | 6 | ||||||||||||||||||||||||||
2016 |
12,724 | | 12,724 | 0.6 | 292,033 | 0.6 | 22.95 | 2 | ||||||||||||||||||||||||||
2017 and thereafter |
20,279 | 12,933 | 33,212 | 1.5 | 994,926 | 1.8 | 29.96 | 2 | ||||||||||||||||||||||||||
Total |
2,149,151 | | 2,149,151 | 100.0 | % | $ | 51,251,105 | 100.0 | % | $ | 23.85 | 208 | ||||||||||||||||||||||
(1) | Square footage is presented without adjustment to reflect our actual ownership percentage in joint ventured properties. | |
(2) | Signed renewals and relets extend the expiration dates of in-place leases to the end of the renewed or relet term. | |
(3) | Calculated based on base rent payable under the lease for net rentable square feet expiring (after renewals and relets), giving effect to free rent and scheduled rent increases taken into account under GAAP and including adjustments for expenses payable by or reimbursable from customers based on current expense levels. | |
(4) | As of December 31, 2006 leases totaling 137,753 square feet (including relets and renewals of 127,834 square feet and new leases of 9,919 square feet) have been signed and will commence during 2007. These signed leases represent approximately 40% of gross square footage expiring during 2007. Expiring square feet includes 12,466 square feet of month-to-month leases. |
31
Proposed | ||||||||||||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||||||
Our | Planned | Under | Physical | Sales Price | Sales Price | |||||||||||||||||||||||||||||||||||
Preferred | Sales | Closed | Remaining | Development | Inventory | on Closed | on Remaining | |||||||||||||||||||||||||||||||||
Return/Economic | Product | Lots/Units/ | Lots/Units/ | Lots/Units/ | Lots/Units/ | Lots/Units/ | Lots/Units/ | Lots/Units/ | ||||||||||||||||||||||||||||||||
Corporation / Project | Location | Ownership (1) | Type (2) | Acres | Acres | Acres | Acres | Acres | Acres (3) | Acres | ||||||||||||||||||||||||||||||
Desert Mountain Development Corporation |
||||||||||||||||||||||||||||||||||||||||
Desert Mountain (4) |
Scottsdale, AZ | 93 | % | SF, SH, TH B | 2,489 | 2,415 | 74 | (5) | | 42 | 749 | 2,781 | ||||||||||||||||||||||||||||
Custom Lots
|
||||||||||||||||||||||||||||||||||||||||
Homes |
||||||||||||||||||||||||||||||||||||||||
Crescent Resort Development Inc. |
||||||||||||||||||||||||||||||||||||||||
Tahoe Mountain Resorts |
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Northstar Village |
||||||||||||||||||||||||||||||||||||||||
Big Horn and Catamount |
Lake Tahoe, CA | 13%/57 | % | CO S | 113 | 21 | 92 | 92 | | 1,862 | 1,331 | |||||||||||||||||||||||||||||
Identified Future Projects |
Lake Tahoe, CA | 13%/23%-57 | % | TH S, TS S | 133 | | 133 | | | | 3,210 | |||||||||||||||||||||||||||||
Northstar Highlands |
||||||||||||||||||||||||||||||||||||||||
Northstar
Trailside Townhomes |
Lake Tahoe, CA | 13%/57 | % | TH S | 16 | | 16 | 6 | | | 3,718 | |||||||||||||||||||||||||||||
Northstar
Ritz Condos |
Lake Tahoe, CA | 13%/23 | % | CO S | 84 | | 84 | 23 | | | 4,189 | |||||||||||||||||||||||||||||
Highlands Acreage |
Lake Tahoe, CA | 13%/23 | % | ACR | 4.8 | | 4.8 | | 4.8 | | 4,688 | |||||||||||||||||||||||||||||
Identified Future Projects |
Lake Tahoe, CA | 13%/57 | % | CO, TH, TS S | 1,272 | | 1,272 | | | | 2,680 | |||||||||||||||||||||||||||||
Old Greenwood |
||||||||||||||||||||||||||||||||||||||||
Units |
Lake Tahoe, CA | 13%/71 | % | TH B | 19 | 15 | 4 | | 4 | 1,428 | 938 | |||||||||||||||||||||||||||||
Fractional
Units(6) |
Lake Tahoe, CA | 13%/71 | % | TS S | 146.00 | 42.12 | 103.88 | 11.00 | 30.00 | 1,922 | 2,185 | |||||||||||||||||||||||||||||
Grays Crossing |
||||||||||||||||||||||||||||||||||||||||
Lots |
Lake Tahoe, CA | 13%/71 | % | SF B | 377 | 254 | 123 | 84 | 39 | 314 | 421 | |||||||||||||||||||||||||||||
Units(8) |
Lake Tahoe, CA | 13%/71 | % | CO B | 170 | | 170 | | | | 412 | |||||||||||||||||||||||||||||
Denver Development |
||||||||||||||||||||||||||||||||||||||||
Creekside Townhomes at Riverfront Park |
Denver, CO | 12%/64 | % | TH P | 23 | 21 | 2 | | 2 | 737 | 1,107 | |||||||||||||||||||||||||||||
Brownstones (Phase I) |
Denver, CO | 12%/64 | % | TH P | 16 | 14 | 2 | | 2 | 1,634 | 1,582 | |||||||||||||||||||||||||||||
Delgany |
Denver, CO | 12%/64 | % | CO P | 42 | 38 | 4 | | 4 | 673 | 835 | |||||||||||||||||||||||||||||
One Riverfront |
Denver, CO | 12%/56 | % | CO P | 50 | | 50 | 50 | | | 843 | |||||||||||||||||||||||||||||
Identified Future Projects |
Denver, CO | 12%/56%-64 | % | TH, CO B | 328 | | 328 | | | | 754 | |||||||||||||||||||||||||||||
Downtown Acreage |
Denver, CO | 12%/64 | % | ACR | 6.76 | | 6.76 | | 6.76 | | 4,350 | |||||||||||||||||||||||||||||
Mountain and Other Development |
||||||||||||||||||||||||||||||||||||||||
Eagle Ranch |
Eagle, CO | 12%/76 | % | SF P | 1,398 | 1,198 | 200 | 65 | 135 | 89 | 168 | |||||||||||||||||||||||||||||
Main Street
Station Vacation Club (7) |
Breckenridge, CO | 12%/30 | % | TS S | 42.00 | 30.93 | 11.07 | | 11.07 | 1,221 | 1,055 | |||||||||||||||||||||||||||||
Riverbend |
Charlotte, NC | 12%/68 | % | SF P | 659 | 491 | 168 | 144 | 24 | 31 | 39 | |||||||||||||||||||||||||||||
Three Peaks |
Silverthorne, CO | 12%/49 | % | SF S | 325 | 312 | 13 | | 13 | 193 | 281 | |||||||||||||||||||||||||||||
Village Walk |
Beaver Creek, CO | 12%/58 | % | TH S | 26 | 5 | 21 | 21 | | 5,907 | 5,205 | |||||||||||||||||||||||||||||
The
Residences at Park Hyatt Beaver Creek (7) |
Beaver Creek, CO | N/A/91 | % | TS S | 15.00 | 3.10 | 11.90 | | 11.90 | 4,554 | 3,573 | |||||||||||||||||||||||||||||
Beaver Creek Landing |
Beaver Creek, CO | 12%/59 | % | CO B | 52 | | 52 | 52 | | | 1,250 | |||||||||||||||||||||||||||||
Riverfront Village |
Beaver Creek, CO | 12%/27 | % | CO, TH B | 311 | | 311 | 210 | | | 1,112 | |||||||||||||||||||||||||||||
Identified Future Projects |
Colorado | 12%/30%-64 | % | CO S | 81 | | 81 | | | | 2,096 | |||||||||||||||||||||||||||||
Houston Area Development Corp. |
||||||||||||||||||||||||||||||||||||||||
Spring Lakes |
Houston, TX | 98 | % | SF P | 497 | 477 | 20 | | 20 | $ | 35 | $ | 44 | |||||||||||||||||||||||||||
Crescent Plaza Residential |
||||||||||||||||||||||||||||||||||||||||
The Residences at the Ritz-Carlton (Phase I) |
Dallas, TX | 100 | % | CO | 70 | | 70 | 70 | | $ | | $ | 1,902 | |||||||||||||||||||||||||||
The Tower Residences and Regency Row (Phase II) |
Dallas, TX | 100 | % | CO, TH P | 100 | | 100 | | | | 1,548 | (8) |
(1) | We receive our invested capital plus a preferred return on our invested capital before profits are allocated to the partners based on ownership percentage. Some projects listed assume an equity partner will participate. | |
(2) | SF (Single-Family Lot); CO (Condominium); TH (Townhome); TS (Timeshare Equivalent Unit); ACR (Acreage); and SH (Single-Family Home). Superscript items represent P (Primary residence); S (Secondary residence); and B (Both Primary and Secondary residence) | |
(3) | Based on lots, units, and acres closed during our ownership period. | |
(4) | Average Sales Price includes golf membership, which as of December 31, 2006 is $0.3 million. | |
(5) | As of December 31, 2006 there were 57 units and 17 lots in inventory or planned for development. | |
(6) | Selling 17 shares per unit. | |
(7) | Selling 20 shares per unit. | |
(8) | Proposed Average Sales Price for The Tower Residences and Regency Row excludes the four Regency Row townhomes, which are expected to have a range in price of $7.0 million to $8.0 million. |
32
For the year ended December 31, | ||||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||
Average | Average | Per | ||||||||||||||||||||||||||||||||||
Year | Occupancy | Daily | Available | |||||||||||||||||||||||||||||||||
Completed/ | Rate | Rate | Room/Guest Night | |||||||||||||||||||||||||||||||||
PROPERTY | Location | Renovated | Rooms | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||||
Canyon Ranch® |
Tuscon, AZ / | |||||||||||||||||||||||||||||||||||
Canyon Ranch Tucson & Lenox(2) |
Lenox, MA | 1980/1989 | 471 | (3) | 83 | % | 82 | % | $ | 769 | $ | 739 | $ | 598 | $ | 567 | ||||||||||||||||||||
Luxury Resorts and Spas: |
||||||||||||||||||||||||||||||||||||
Park Hyatt Beaver Creek Resort and Spa |
Avon, CO | 1989/2001/2006 | 190 | (4) | 54 | % | 57 | % | $ | 365 | $ | 303 | $ | 197 | $ | 172 | ||||||||||||||||||||
Fairmont Sonoma Mission Inn & Spa |
Sonoma, CA | 1927/1987/1997/2004 | 228 | 77 | 71 | 306 | 292 | 235 | 207 | |||||||||||||||||||||||||||
Ventana Inn & Spa |
Big Sur, CA | 1975/1982/1988 | 60 | 72 | 73 | 520 | 480 | 375 | 349 | |||||||||||||||||||||||||||
Total/Weighted Average |
478 | 66 | % | 64 | % | $ | 354 | $ | 319 | $ | 235 | $ | 206 | |||||||||||||||||||||||
Upscale Business Class Hotels: |
||||||||||||||||||||||||||||||||||||
Denver Marriott City Center |
Denver, CO | 1982/1994 | 613 | 72 | % | 73 | % | $ | 138 | $ | 130 | $ | 100 | $ | 95 | |||||||||||||||||||||
Renaissance Houston Hotel |
Houston, TX | 1975/2000 | 388 | 68 | 70 | 128 | 105 | 87 | 74 | |||||||||||||||||||||||||||
Omni Austin Hotel (5) |
Austin, TX | 1986 | 375 | 79 | 77 | 150 | 128 | 119 | 99 | |||||||||||||||||||||||||||
Total/Weighted Average |
1,376 | 73 | % | 73 | % | $ | 139 | $ | 123 | $ | 101 | $ | 90 | |||||||||||||||||||||||
Total/Weighted Average Luxury Resorts and Spas
and Upscale Business Class Hotels |
1,854 | 71 | % | 71 | % | $ | 192 | $ | 175 | $ | 137 | $ | 124 | |||||||||||||||||||||||
(1) | Property Table is presented at 100% without any adjustment to give effect to our actual ownership percentage in the properties. | |
(2) | We own 48% of the Canyon Ranch companies which own or manage: Canyon Ranch Tucson and Canyon Ranch Lenox Destination Resorts, Canyon Ranch SpaClub at the Venetian Resort in Las Vegas, the Canyon Ranch SpaClub on the Queen Mary 2 ocean liner, the Canyon Ranch Living Community in Miami, Fl., the Canyon Ranch SpaClub at The Gaylord Palms Resort in Kissimmee, Fl., Canyon Ranch Living Community in Chicago, IL., and all Canyon Ranch trade names and trademarks. | |
(3) | Represents available guest nights, which is the maximum number of guests the resort can accommodate per night. | |
(4) | In April 2006, 85 rooms were taken out of service at the Park Hyatt Beaver Creek Resort and Spa. The floor space occupied by 55 of these rooms is to be converted into time-share units for sale by CRDI. The remaining space was used to expand the Allegria Spa within the hotel. | |
(5) | The Omni Austin Hotel is leased pursuant to a lease to HCD Austin Corporation. |
33
Total Cubic | Total | |||||||||||
Number of | Footage | Square feet | ||||||||||
State | Properties(1) | (in millions) | (in millions) | |||||||||
Alabama |
5 | 13.8 | 0.5 | |||||||||
Arizona |
1 | 2.9 | 0.1 | |||||||||
Arkansas |
6 | 33.1 | 1.0 | |||||||||
California |
7 | 29.5 | 1.0 | |||||||||
Colorado |
1 | 2.8 | 0.1 | |||||||||
Florida |
5 | 6.5 | 0.3 | |||||||||
Georgia |
9 | 61.8 | 2.1 | |||||||||
Idaho |
2 | 18.7 | 0.8 | |||||||||
Illinois |
3 | 21.7 | 0.6 | |||||||||
Indiana |
1 | 9.1 | 0.3 | |||||||||
Iowa |
2 | 12.5 | 0.5 | |||||||||
Kansas |
2 | 5.0 | 0.2 | |||||||||
Kentucky |
1 | 2.7 | 0.1 | |||||||||
Maine |
1 | 1.8 | 0.2 | |||||||||
Massachusetts |
4 | 10.2 | 0.5 | |||||||||
Minnesota |
1 | 3.0 | 0.1 | |||||||||
Mississippi |
1 | 4.7 | 0.2 | |||||||||
Missouri |
2 | 46.8 | 2.7 | |||||||||
Nebraska |
2 | 4.4 | 0.2 | |||||||||
New York |
1 | 11.8 | 0.4 | |||||||||
North Carolina |
4 | 15.1 | 0.5 | |||||||||
Ohio |
2 | 8.9 | 0.4 | |||||||||
Oklahoma |
1 | 1.4 | 0.1 | |||||||||
Oregon |
5 | 35.6 | 1.5 | |||||||||
Pennsylvania |
3 | 39.0 | 1.1 | |||||||||
South Carolina |
1 | 1.6 | 0.1 | |||||||||
South Dakota |
1 | 2.9 | 0.1 | |||||||||
Tennessee |
3 | 10.6 | 0.4 | |||||||||
Texas |
3 | 16.5 | 0.5 | |||||||||
Utah |
1 | 8.6 | 0.4 | |||||||||
Virginia |
2 | 8.7 | 0.3 | |||||||||
Washington |
6 | 28.7 | 1.1 | |||||||||
Wisconsin |
3 | 17.4 | 0.6 | |||||||||
TOTAL |
92 | 497.8 | 19.0 | |||||||||
(1) | As of December 31, 2006 we held a 31.72% interest in AmeriCold Realty Trust which operates 104 facilities, of which 91 are wholly-owned or leased, one is partially owned and 12 are managed for outside owners. |
34
Price | ||||||||||||
High | Low | Distributions | ||||||||||
2005 |
||||||||||||
First Quarter |
$ | 18.14 | $ | 16.12 | $ | 0.375 | ||||||
Second Quarter |
18.99 | 16.02 | 0.375 | |||||||||
Third Quarter |
20.65 | 17.95 | 0.375 | |||||||||
Fourth Quarter |
21.06 | 19.23 | 0.375 | |||||||||
2006 |
||||||||||||
First Quarter |
$ | 21.60 | $ | 20.14 | $ | 0.375 | ||||||
Second Quarter |
20.64 | 17.61 | 0.375 | |||||||||
Third Quarter |
22.80 | 18.72 | 0.375 | |||||||||
Fourth Quarter |
22.42 | 19.28 | 0.375 |
| the general condition of the United States economy; | ||
| general leasing activity and rental rates in the markets in which the Office Properties are located; | ||
| the ability of tenants to meet their rent obligations; | ||
| our operating and interest expenses; | ||
| consumer preferences relating to the Resort/Hotel Properties and the Resort Residential Development Properties; | ||
| cash flows from unconsolidated and consolidated entities; | ||
| the level of our property acquisitions and dispositions; | ||
| capital expenditure requirements; | ||
| federal, state and local taxes payable by us; and | ||
| the adequacy of cash reserves. |
35
Years Ending | ||||||||||||||||||||||||
Company / Index | 12/31/01 | 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | ||||||||||||||||||
Crescent Real Estate Equities Company |
100.00 | 100.25 | 113.72 | 132.81 | 156.49 | 167.61 | ||||||||||||||||||
S&P 500 |
100.00 | 77.90 | 100.25 | 111.15 | 116.61 | 135.03 | ||||||||||||||||||
NAREIT All Equity REIT Index |
100.00 | 103.82 | 142.37 | 187.33 | 210.12 | 283.78 |
36
2006 | 2005 | |||||||
Ordinary dividend |
27.1 | % | 6.3 | % | ||||
Qualified dividend eligible for 15% tax rate |
8.0 | 2.7 | ||||||
Capital gain |
15.5 | 47.2 | ||||||
Return of capital |
45.5 | 29.5 | ||||||
Unrecaptured Section 1250 gain |
3.9 | 14.3 | ||||||
100.0 | % | 100.0 | % | |||||
Class A Preferred (1) | Class B Preferred (2) | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Ordinary dividend |
49.8 | % | 8.9 | % | 49.8 | % | 8.9 | % | ||||||||
Qualified dividend eligible
for 15% tax rate |
14.8 | 3.8 | 14.8 | 3.8 | ||||||||||||
Capital gain |
28.3 | 67.1 | 28.3 | 67.1 | ||||||||||||
Unrecaptured Section 1250 Gain |
7.1 | 20.2 | 7.1 | 20.2 | ||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
(1) | The Series A Preferred Shares are convertible at any time, in whole or in part, at the option of the holders into common shares at a conversion price of $40.86 per common share (equivalent to a conversion rate of 0.6119 common shares per Series A Preferred Share). We pay distributions on the Series A Preferred Shares in an amount totaling $1.6875 per share each year (equivalent to 6.75% of the $25.00 liquidation preference per share), payable on a quarterly basis. The Series A Preferred Shares are redeemable, on or after February 28, 2003, in whole or in part, at our option. | |
(2) | The Series B Preferred Shares are redeemable on or after May 17, 2007, in whole or in part, at our option. We pay distributions on the Series B Preferred Shares in an amount totaling $2.375 per share each year (equivalent to 9.50% of the $25.00 liquidation preference per share), payable on a quarterly basis. |
37
For Years Ended December 31, | ||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | |||||||||||||||||
2006 | (Restated) | (Restated) | (Restated) | (Restated) | ||||||||||||||||
Operating Data: | ||||||||||||||||||||
Total Property revenue |
$ | 928,696 | $ | 1,018,100 | $ | 1,000,273 | $ | 892,005 | $ | 946,311 | ||||||||||
Income from Property Operations |
$ | 270,672 | $ | 278,839 | $ | 314,977 | $ | 304,333 | $ | 339,319 | ||||||||||
Income from continuing operations before minority interests
and income taxes |
$ | 18,864 | $ | 28,827 | $ | 191,216 | $ | 58,147 | $ | 72,662 | ||||||||||
Net income (loss) available to common shareholders |
$ | 1,395 | $ | 69,547 | $ | 147,061 | $ | 4,732 | $ | 67,445 | ||||||||||
Basic (loss) earnings per common share: |
||||||||||||||||||||
(Loss) income available to common shareholders before
discontinued operations and cumulative effect of a change in
accounting principle |
$ | (0.12 | ) | $ | (0.23 | ) | $ | 1.40 | $ | 0.02 | $ | 0.12 | ||||||||
Net income available to common shareholders-basic |
$ | 0.01 | $ | 0.69 | $ | 1.49 | $ | 0.05 | $ | 0.65 | ||||||||||
Diluted earnings (loss) per common share: |
||||||||||||||||||||
(Loss) income available to common shareholders before
discontinued operations and cumulative effect of a change in
accounting principle |
$ | (0.12 | ) | $ | (0.23 | ) | $ | 1.40 | $ | 0.02 | $ | 0.12 | ||||||||
Net income available to common shareholders diluted |
$ | 0.01 | $ | 0.69 | $ | 1.48 | $ | 0.05 | $ | 0.65 | ||||||||||
Balance Sheet Data (at period end): |
||||||||||||||||||||
Total assets |
$ | 4,046,971 | $ | 4,163,256 | $ | 4,060,325 | $ | 4,335,875 | $ | 4,309,325 | ||||||||||
Total debt |
$ | 2,296,358 | $ | 2,259,473 | $ | 2,152,255 | $ | 2,558,699 | $ | 2,382,910 | ||||||||||
Total shareholders equity |
$ | 1,122,286 | $ | 1,251,626 | $ | 1,303,603 | $ | 1,223,889 | $ | 1,347,232 | ||||||||||
Other Data: |
||||||||||||||||||||
Cash distribution declared per common share |
$ | 1.50 | $ | 1.50 | $ | 1.50 | $ | 1.50 | $ | 1.50 | ||||||||||
Weighted average |
||||||||||||||||||||
Common shares and units outstanding basic |
121,515,791 | 118,012,402 | 116,747,408 | 116,634,546 | 117,523,248 | |||||||||||||||
Weighted average |
||||||||||||||||||||
Common shares and units outstanding diluted |
122,979,783 | 118,836,421 | 116,965,897 | 116,676,242 | 117,725,984 | |||||||||||||||
Funds from operations available to common shareholders
diluted (1) |
$ | 99,448 | $ | 118,987 | $ | 97,001 | $ | 175,901 | $ | 212,572 |
(1) | Funds from operations, or FFO, is a supplemental non-GAAP financial measurement used in the real estate industry to measure and compare the operating performance of real estate companies, although those companies may calculate funds from operations in different ways. The National Association of Real Estate Investment Trusts (NAREIT) defines funds from operations as Net Income (Loss) determined in accordance with generally accepted accounting principles (GAAP), excluding gains (or losses) from sales of depreciable operating property, excluding extraordinary items (determined by GAAP), plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. We calculate FFO available to common shareholders diluted in the same manner, except that Net Income (Loss) is replaced by Net Income (Loss) Available to Common Shareholders and we include the effect of Operating Partnership unitholder minority interests. For a more detailed definition and description of FFO and a reconciliation to net income determined in accordance with GAAP, see Funds from Operations included in Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations. |
38
Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
Index to Managements Discussion and Analysis of Financial Condition and Results of Operations |
Page | ||||
40 | ||||
41 | ||||
47 | ||||
Years ended December 31, 2005 and 2004 |
51 | |||
55 | ||||
58 | ||||
61 | ||||
64 | ||||
65 | ||||
69 |
39
| Sale of all resort and hotel assets. Properties to be sold include the Fairmont Sonoma Mission Inn & Spa®, Ventana Inn & Spa in Big Sur, California, the Park Hyatt Beaver Creek Resort & Spa, and three business-class hotels. | ||
| Sale of resort residential developments. Properties and assets to be sold include Crescent Resort Development and Desert Mountain Development Corporation. | ||
| Opportunistic sale of office properties. Properties to be sold include virtually all suburban Dallas properties and all Austin properties, as well as our single assets in Phoenix, Arizona, and in Seattle, Washington. | ||
| Reduction of general and administrative expenses by more than $17.0 million, or $0.14 per share. Implementation of savings began immediately on March 1, 2007 and is expected to be fully phased in by the end of 2007. We expect to take a charge of approximately $5.0 million for severance costs. | ||
| Use of sales proceeds to retire debt. We plan to first use the proceeds from asset sales to retire debt. We expect that our balance sheet will be significantly strengthened and our cost of capital lowered, giving us capacity for growth. | ||
| Alignment of dividend. We intend to align our dividend with industry-accepted pay-out ranges to allow for retention of capital for growth. |
40
41
(in millions) | Purchase | |||||
Date | Property | Location | Price | |||
January 23, 2006
|
Financial Plaza Class A Office Property | Phoenix, Arizona | $55.0(1) |
(1) | The acquisition was funded by the assumption of a $23.6 million loan from Allstate, a new $15.9 million loan from Allstate and a draw on our credit facility. This property is wholly-owned. |
(in millions) | ||||||
Date | Property | Location | Proceeds | |||
February 17, 2006
|
Waterside Commons Class A Office Property | Dallas, Texas | $24.8(2) |
(2) | We previously recorded an impairment charge of approximately $1.0 million during the year ended December 31, 2005. The proceeds from the sale were used primarily to pay down the credit facility. |
42
43
Interest | ||||||||||||||||||||
Balance at | Rate at | |||||||||||||||||||
(in millions) | Date of | Maturity | December | December | ||||||||||||||||
Note | Transaction | Date | 31, 2006 | 31, 2006 | ||||||||||||||||
Fixed Rate: |
||||||||||||||||||||
Three Dallas Office Properties |
(1) | 8/31/05 | 2010 | $ | 7.6 | 11.04 | % | |||||||||||||
21 California Condominiums |
(2) | 12/28/06 | 2008 | 9.8 | (3) | 17.00 | % | |||||||||||||
Variable Rate: |
||||||||||||||||||||
Dallas Office Property |
(4) | 6/9/05 | 2007 | 12.0 | 13.85 | % | ||||||||||||||
Two Luxury Hotel Properties in California |
(5) | 11/16/05 | 2007 | 15.0 | 16.35 | % | ||||||||||||||
Office Portfolio in Southeastern U.S. |
(6) | 12/30/05 | 2007 | 20.7 | 12.23 | % | ||||||||||||||
Florida Hotel Portfolio Investment |
(7) | 1/20/06 | 2009 | 15.0 | 13.35 | % | ||||||||||||||
California Ski Resort |
(8) | 4/12/06 | 2009 | 20.0 | 9.85 | % | ||||||||||||||
New York City Residential |
(9) | 5/8/06 | 2007 | 24.2 | 18.18 | % | ||||||||||||||
Total Mezzanine Notes |
$ | 124.3 | ||||||||||||||||||
Total Weighted Average Interest Rate |
14.09 | % | ||||||||||||||||||
(1) | The loan has an interest-only term through September 2007. Beginning October 2007, the borrower must make principal payments based on a 30-year amortization schedule until maturity. We determined that the entity to which the loan was funded is a VIE under FIN 46R of which we are not the primary beneficiary; therefore, we do not consolidate the entity. Our maximum exposure to loss is limited to the amount of the loan. | |
(2) | The loan has an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to one six-month extension. | |
(3) | The condominiums securing this note were sold by CRDI to a third party. Due to restrictions under SFAS No. 66, Accounting for Sales of Real Estate regarding seller financed transactions, the profit from the sale of $4.7 million was deferred and recorded under the cost recovery method and reflected as a reduction of the note such that the face value of the note is included in the table above. | |
(4) | The loan bears interest at LIBOR plus 850 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to three one-year extension options. | |
(5) | The loan bears interest at LIBOR plus 1,100 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to five one-year extension options. | |
(6) | The loan bears interest at LIBOR plus 685 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to three one-year extension options. | |
(7) | The loan bears interest at LIBOR plus 800 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. | |
(8) | The loan bears interest at LIBOR plus 450 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. | |
(9) | The loan bears interest at LIBOR plus 1,283 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. We determined that the entity to which the loan was funded is a VIE under FIN 46R of which we are not the primary beneficiary; therefore, we do not consolidate the entity. Our maximum exposure to loss is limited to the amount of the loan. |
44
2006 | 2005 | |||||||
Economic Occupancy (1) |
89.8 | % | 88.5 | % | ||||
Leased Occupancy (2) |
92.6 | % | 90.8 | % | ||||
In-Place Weighted Average Full-Service Rental Rate (3) |
$ | 22.78 | $ | 22.48 | ||||
Tenant Improvement and Leasing Costs per Sq. Ft. per year |
$ | 3.56 | $ | 3.55 | ||||
Average Lease Term (4) |
5.7 | yrs | 6.2 | yrs | ||||
Same-Store NOI (5) Decline |
(1.0 | )% | (1.5 | )% | ||||
Same-Store Average Occupancy |
89.3 | % | 87.3 | % |
(1) | Economic occupancy reflects the occupancy of all tenants paying rent. | |
(2) | Leased occupancy reflects the amount of contractually obligated space, whether or not commencement has occurred. | |
(3) | Calculated based on base rent payable at December 31 giving effect to free rent and scheduled rent increases and including adjustments for expenses payable by or reimbursable from tenants. The weighted average full-service rental rate for the El Paso lease reflects weighted average full-service rental rate over the shortened term and excludes the impact of the net lease termination fee being recognized ratably to income through December 31, 2007. | |
(4) | Reflects leases executed during the period. | |
(5) | Same-store NOI (net operating income) represents office property net income excluding depreciation, amortization, interest expense and non-recurring items such as lease termination fees for Office Properties owned for the entirety of the comparable periods. |
For the years ended December 31, | ||||||||
(dollars in thousands) | 2006 | 2005 | ||||||
Resort Residential Lot Sales |
212 | 545 | ||||||
Resort Residential Unit Sales: |
||||||||
Townhome Sales |
30 | 25 | ||||||
Condominium Sales |
59 | 187 | ||||||
Equivalent Timeshare Sales |
19.3 | 15.7 | ||||||
Average Sales Price per Resort Residential Lot |
$ | 125 | $ | 164 | ||||
Average Sales Price per Resort Residential Unit |
$ | 2,003 | $ | 1,265 |
45
For the years ended December 31, | ||||||||
(dollars in thousands) | 2006 | 2005 | ||||||
Resort Residential Lot Sales |
5 | 40 | ||||||
Average Sales Price per Lot (1) |
$ | 1,837 | $ | 1,082 | ||||
Resort Residential Unit Sales |
12 | | ||||||
Average Sales Price per Unit (1) |
$ | 1,485 | $ | |
(1) | Includes equity golf membership |
For the years ended December 31, | ||||||||||||||||||||||||||||||||
Average | Average | Revenue Per | ||||||||||||||||||||||||||||||
Same-Store NOI(1) | Occupancy | Daily | Available | |||||||||||||||||||||||||||||
% Change | Rate | Rate | Room/Guest Night | |||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||
Luxury Resorts and Spas (2) |
15 | % | 127 | %(3) | 76 | % | 72 | % | $ | 349 | $ | 332 | $ | 264 | $ | 237 | ||||||||||||||||
Upscale Business Class Hotels |
23 | % | 26 | % | 73 | % | 73 | % | $ | 139 | $ | 123 | $ | 101 | $ | 90 |
(1) | Same-Store NOI (net operating income) represents net income excluding depreciation and amortization, interest expense and rent expense for Resort/Hotel Properties owned for the entirety of the comparable periods. | |
(2) | Excludes the Park Hyatt Beaver Creek Resort and Spa which had 85 rooms taken out of service in April 2006. The onsite construction and closure of the spa has impacted performance at the property. The floor space occupied by 55 of these rooms was converted into 15 fractional units for sale in our Resort Residential Development Segment. The remaining space was used to expand the Allegria Spa within the hotel. | |
(3) | In November 2003, the Fairmont Sonoma Mission Inn placed 97 historic inn rooms out of service for renovation. The renovation was completed in July 2004, resulting in an increase in 2005 Same-Store NOI as compared to 2004. |
46
Total variance in | Total variance in | |||||||
dollars between | dollars between | |||||||
the years ended | the years ended | |||||||
December 31, | December 31, | |||||||
2006 and 2005 | 2005 and 2004 | |||||||
(in millions) | (Restated) | (Restated) | ||||||
REVENUE: |
||||||||
Office Property |
$ | 41.5 | $ | (103.0 | ) | |||
Resort Residential Development Property |
(130.6 | ) | 192.8 | |||||
Resort/Hotel Property |
(0.4 | ) | (71.9 | ) | ||||
Total Property Revenue |
$ | (89.5 | ) | $ | 17.9 | |||
EXPENSE: |
||||||||
Office Property real estate taxes |
$ | 3.6 | $ | (19.3 | ) | |||
Office Property operating expenses |
7.3 | (19.1 | ) | |||||
Resort Residential Development Property expense |
(89.2 | ) | 160.9 | |||||
Resort/Hotel Property expense |
(2.9 | ) | (68.5 | ) | ||||
Total Property Expense |
$ | (81.2 | ) | $ | 54.0 | |||
Income from Property Operations |
$ | (8.3 | ) | $ | (36.1 | ) | ||
OTHER INCOME (EXPENSE): |
||||||||
Income from sale of investment unconsolidated company |
$ | 17.8 | $ | 29.9 | ||||
Income from investment land sales |
(8.6 | ) | (10.3 | ) | ||||
(Loss) gain on joint venture of properties |
2.7 | (268.5 | ) | |||||
Interest and other income |
18.2 | 11.3 | ||||||
Corporate general and administrative |
5.4 | (11.3 | ) | |||||
Interest expense |
2.4 | 40.1 | ||||||
Amortization of deferred financing costs |
0.5 | 5.0 | ||||||
Extinguishment of debt |
2.2 | 40.4 | ||||||
Depreciation and amortization |
(6.0 | ) | 18.5 | |||||
Impairment charges related to real estate assets |
| 4.1 | ||||||
Other expenses |
(9.0 | ) | (3.3 | ) | ||||
Equity in net income (loss) of unconsolidated companies: |
||||||||
Office Properties |
(2.3 | ) | 5.2 | |||||
Resort Residential Development Properties |
0.1 | 1.8 | ||||||
Resort/Hotel Properties |
(3.6 | ) | (1.3 | ) | ||||
Temperature-Controlled Logistics Properties |
(15.9 | ) | (6.0 | ) | ||||
Other |
(5.7 | ) | 18.2 | |||||
Total other income (expense) |
$ | (1.8 | ) | $ | (126.2 | ) | ||
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY
INTERESTS AND INCOME TAXES |
$ | (10.1 | ) | $ | (162.3 | ) | ||
Minority interests |
8.4 | 21.6 | ||||||
Income tax benefit (expense) |
12.0 | (20.7 | ) | |||||
INCOME BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE
EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE |
$ | 10.3 | $ | (161.4 | ) | |||
(Loss) income from discontinued operations, net of
minority interests and taxes |
(4.5 | ) | (6.4 | ) | ||||
Impairment charges related to real estate assets from
discontinued operations, net of minority interests |
0.9 | 2.0 | ||||||
Gain on sale of real estate from discontinued
operations, net of minority interests and taxes |
(74.8 | ) | 88.1 | |||||
Cumulative effect of a change in accounting principle,
net of minority interests |
| 0.4 | ||||||
NET INCOME |
$ | (68.1 | ) | $ | (77.3 | ) | ||
Series A Preferred Share distributions |
| (0.3 | ) | |||||
Series B Preferred Share distributions |
| | ||||||
NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ | (68.1 | ) | $ | (77.6 | ) | ||
47
| Office Property revenues increased $41.5 million, or 11.1%, to $414.3 million, primarily due to: |
| an increase of $28.1 million in net lease termination fees (from $11.2 million to $39.3 million) primarily due to the El Paso lease termination and related re-leasing; | ||
| an increase of $9.4 million from the 51 consolidated Office Properties (excluding properties acquired, disposed or stabilized during 2005 and 2006) that we owned or had an interest in, primarily due to a 1.6 percentage point increase in average occupancy (from 86.6% to 88.2%), increased expense recovery revenue related to the increase in occupancy and increased recoverable expenses, and increased parking revenue; partially offset by a decline in full service weighted average rental rates; | ||
| an increase of $8.8 million due to the acquisition of Financial Plaza in January 2006 and increased occupancy at One Live Oak, the Exchange Building and Peakview Tower; and | ||
| an increase of $1.0 million related to third party management and leasing services primarily due to increased reimbursement revenue as a result of increased reimbursable expenses; partially offset by | ||
| a decrease of $5.8 million due to the joint ventures of Fulbright Tower in February 2005 and One Buckhead Plaza in June 2005. |
| Resort Residential Development Property revenues decreased $130.6 million, or 26.0%, to $372.1 million, primarily due to: |
| a decrease of $121.6 million in CRDI revenues primarily related to: |
o | a net decrease of $195.7 million primarily related to product mix in lots and units available for sale in 2005 versus 2006 at Hummingbird Lodge in Bachelor Gulch, Colorado, Northstar Ironhorse and Grays Crossing in Lake Tahoe, California, Creekside Townhomes, Brownstones Phase I, and Delgany, all in Denver, Colorado, and Eagle Ranch in Eagle, Colorado, which had sales in the twelve months ended December 31, 2005, but reduced sales in the same period 2006, partially offset by Old Greenwood Timeshares in Lake Tahoe, California, and Main Street Station in Breckenridge, Colorado, which had sales in the twelve months ended December 31, 2005, but increased sales in the same period 2006; and | ||
o | a decrease of $38.5 million primarily related to product mix in lots and units available for sale in 2005 versus 2006 at Horizon Pass Lodge in Bachelor Gulch, Colorado, Creekside Phase II in Denver, Colorado, and Old Greenwood Lots in Lake Tahoe, California, which had sales in the twelve months ended December 31, 2005, but no sales in the same period 2006; partially offset by | ||
o | an increase of $112.0 million primarily related to product mix in lots and units available for sale in 2006 versus 2005 at Village Walk and EW Hotel Residences in Beaver Creek, Colorado, Northstar Big Horn, Northstar Village Commercial and Old Greenwood Townhomes in Lake Tahoe, California and Union Center land in Denver, Colorado, which had sales in the twelve months ended December 31, 2006, but no sales in the same period 2005. |
| a decrease of $10.5 million at Desert Mountain primarily related to reduced net revenue from lot sales due to a decrease in the number of lots sold partially offset by an increase in the average sales price per lot and lower membership transfer fee income, partially offset by increased unit sales revenue due to an increase in the number of units sold. |
| Resort/Hotel Property revenues decreased $0.4 million, or 0.3%, to $142.2 million, primarily due to: |
| a decrease of $4.7 million in revenue at the Park Hyatt Beaver Creek related to a decrease in occupancy due to construction activity on the property and the closure of the Allegria Spa for expansion; and | ||
| a decrease of $4.6 million due to the contribution in January 2005, of the Canyon Ranch® Properties to a newly formed entity, CR Operating, LLC, in which we have a 48% member interest that is accounted for as an unconsolidated investment; partially offset by | ||
| an increase of $4.9 million in revenue at the remaining Luxury Resort and Spa Properties primarily at the Fairmont Sonoma Mission Inn, which experienced an 14% increase in revenue per available room (from $207 to $235) resulting from an increase of 5% in average daily rate (from $292 to $306) and a six percentage point increase in occupancy (from 71% to 77%); and | ||
| an increase of $4.0 million in room revenue at the Upscale Business Class Hotel Properties primarily related to a 12% increase in revenue per available room (from $90 to $101) resulting from a 13% increase in average daily rate (from $123 to $139) with occupancy remaining flat. |
48
| Office Property expenses increased $10.9 million, or 5.6%, to $206.6 million, primarily due to: |
| an increase of $9.4 million in operating expenses of the 51 consolidated Office Properties (excluding properties acquired, disposed, or stabilized in 2005 and 2006) that we owned or had an interest in primarily due to increased property taxes, utilities, general building expenses, cleaning expenses, insurance expense and non-recoverable administrative expenses (primarily bad debt); | ||
| an increase of $3.4 million from the acquisition of Financial Plaza in January 2006; | ||
| an increase of $1.4 million related to lease termination expenses; and | ||
| an increase of $1.1 million related to the cost of providing third-party management services primarily due to increased staffing and salary expenses and the joint venture of One Buckhead Plaza in June 2005, which are recouped by increased third party fee income and direct expense reimbursements; partially offset by | ||
| a decrease of $3.1 million primarily due to the joint venturing of Fulbright Tower in February 2005 and One Buckhead Plaza in June 2005; and | ||
| a decrease of $1.3 million related to decreased consulting and legal fees. |
| Resort Residential Development Property expenses decreased $89.2 million, or 20.6%, to $343.0 million, primarily due to: |
| a decrease of $86.2 million in CRDI expenses primarily related to: |
o | a net decrease of $151.4 million primarily related to product mix in lots and units available for sale in 2005 versus 2006 at Hummingbird Lodge in Bachelor Gulch, Colorado, Northstar Ironhorse and Grays Crossing in Lake Tahoe, California, Creekside Townhomes, Brownstones Phase I, and Delgany, all in Denver, Colorado, and Eagle Ranch in Eagle, Colorado, which had sales in the twelve months ended December 31, 2005, but reduced sales in the same period 2006, partially offset by Old Greenwood Timeshares in Lake Tahoe, California, and Main Street Station in Breckenridge, Colorado, which had sales in the twelve months ended December 31, 2005, but increased sales in the same period 2006; and | ||
o | a decrease of $30.4 million primarily related to product mix in lots and units available for sale in 2005 versus 2006 at Horizon Pass Lodge in Bachelor Gulch, Colorado, Creekside Phase II in Denver, Colorado, and Old Greenwood Lots in Lake Tahoe, California, which had sales in the twelve months ended December 31, 2005, but no sales in the same period 2006; partially offset by | ||
o | an increase of $93.2 million primarily related to product mix in lots and units available for sale in 2006 versus 2005 at Village Walk and EW Hotel Residences in Beaver Creek, Colorado, Northstar Big Horn, Northstar Village Commercial and Old Greenwood Townhomes in Lake Tahoe, California and Union Center land in Denver, Colorado, which had sales in the twelve months ended December 31, 2006, but no sales in the same period 2005. |
| an increase of $1.1 million in at CRDI marketing expense at CRDI; and | ||
| a decrease of $7.1 million at Desert Mountain, primarily related to a decrease of $9.8 million in cost of sales primarily due to decreased lot sales and product mix and a decrease of $4.1 million in general and administrative expenses; partially offset by an increase of $5.5 million in the development costs recognized using the percentage complete method, and an increase of $1.4 million in club operating expense; partially offset by | ||
| an increase of $2.4 million primarily due to marketing expenses related to the Ritz-Carlton Tower Residences and Regency Row in Dallas, Texas. |
| Resort/Hotel Property expenses decreased $2.9 million, or 2.6%, to $108.4 million, primarily due to: |
| a decrease of $4.1 million due to the contribution, in January 2005, of the Canyon Ranch Properties to a newly formed entity, CR Operating, LLC, in which we have a 48% member interest that is accounted for as an unconsolidated investment; and | ||
| a decrease of $2.3 million at the Park Hyatt Beaver Creek related to a decrease in occupancy due to construction activity on the property and the closure of the Allegria Spa for expansion; partially offset by | ||
| an increase of $2.8 million at the remaining Luxury Resort and Spa Properties, primarily at Sonoma Mission Inn, related to a 6 percentage point increase in occupancy (from 71% to 77%); and | ||
| an increase of $0.6 million primarily due to pre-opening expenses at The Ritz-Carlton Dallas. |
49
| Income from sale of investment in unconsolidated company increased $17.8 million due primarily to the sale of the Four Westlake Park, Three Westlake Park and Chase Tower Office Properties in 2006, partially offset by the sale of our interests in the entity that owned the 5 Houston Center Office Property in 2005. | ||
| Income from investment land sales decreased $8.6 million due primarily to the gain on the sale of two parcels of undeveloped investment land in Houston, Texas in 2005. | ||
| Loss on joint venture of properties decreased $2.7 million, primarily due to the 2005 write-off of capitalized internal leasing costs related to prior year joint venture of properties. | ||
| Interest and other income increased $18.2 million, or 62.1% to $47.4 million primarily due to: |
§ | an increase of $13.0 million from mezzanine loans and other loans attributable to an increase of $86.6 million in the weighted average mezzanine loan balance (from $88.7 million to $175.3 million) and a 1.10 percentage point increase in the weighted average interest rate (from 11.92% to 13.02%); | ||
§ | an increase of $6.2 million due to prepayment fees on two mezzanine loans that were paid off in first quarter 2006; and | ||
§ | an increase of $2.6 million related to the amortization of imputed interest related to the El Paso lease termination and contractual full service rents to interest income; partially offset by | ||
§ | a decrease of $2.3 million interest earned on U.S. Treasury and government sponsored agency securities purchased for debt defeasance in order to release the lien on properties securing the LaSalle Note I and Note II and Nomura Funding VI Note; and | ||
§ | a decrease of $1.7 million in other income from legal settlement proceeds received in 2005 in connection with certain deed transfer taxes. |
| Equity in net income of unconsolidated companies decreased $27.4 million to $0.3 million primarily due to: |
§ | a decrease of $15.9 million in Temperature-Controlled Logistics equity in net income primarily attributable to: |
° | an increase of $6.8 million in debt related expense due to |
Ø | a prepayment fee related to Goldman Sachs debt defeasance of $4.6 million; | ||
Ø | a write-off of $2.2 million of unamortized deferred financing costs associated with the Goldman Sachs and Morgan Stanley debt paid off in 2006; and |
° | an increase of $2.7 million related to adjustments for vacation accrual, workers compensation and legal expenses; and | ||
° | a decrease of $5.7 million in operating margins, primarily in the transportation segment due to services with FEMA in 2005 in the wake of Hurricane Katrina. |
§ | a decrease of $5.7 million in Other equity in net income primarily attributable to a decrease of income from the G2 and SunTx investments; | ||
§ | a decrease of $3.6 million in Resort/Hotel equity in net income primarily attributable to a $3.0 million license fee from Canyon Ranch Living in Miami, Florida, of which our portion was $1.4 million, in the first quarter of 2005 and $2.2 million due to increased expenses in 2006 compared to 2005 associated with Canyon Ranch Operating, LLC; and | ||
§ | a decrease of $2.3 million in Office equity in net income primarily due to a $0.8 million decline in operations at Bank One Center, a $0.7 million decrease in operations at Houston Center and a $0.5 million decrease related to the disposition of 5 Houston Center in December 2005. |
50
| Corporate general and administrative costs decreased $5.4 million, or 10.7%, to $44.9 million primarily due to changes in the short-term incentive compensation plans and lower compensation expense associated with restricted units granted under our long-term incentive compensation plans in December 2004 and May 2005. | ||
| Interest expense decreased $2.4 million, or 1.8%, to $134.3 million due to an increase of $11.8 million in capitalized interest (from $21.9 million to $33.7 million); partially offset by an increase of $123.0 million in the weighted average debt balance (from $2.271 billion to $2.394 billion) and a 0.12 percentage point increase in the hedged weighted average interest rate (from 6.98% to 7.10%). | ||
| Extinguishment of debt expense decreased $2.2 million due to the write off of deferred financing costs, of which $0.7 million related to the joint venture or sale of real estate assets in 2005. | ||
| Depreciation and amortization expense increased $6.0 million, or 4.2%, primarily due to; |
§ | an increase of $5.3 million related to additions to leasehold and building improvements and lease conversions; and | ||
§ | an increase of $5.1 million due to the acquisition of Financial Plaza in January 2006; partially offset by | ||
§ | a decrease of $2.3 million related to lease terminations in 2005; and | ||
§ | a decrease of $2.0 million due to the joint venture of Fulbright Tower in February 2005 and One Buckhead Plaza in June 2005. |
| Other expense increased $9.0 million to $13.0 million due primarily to legal and advisory fees for certain contemplated strategic alternatives. |
| a decrease of $74.8 million, net of minority interest and taxes due to an $89.2 million aggregate gain on the sale of four properties in 2005 compared to $14.4 million aggregate gain on sale of three properties in 2006; and | ||
| a decrease of $4.5 million income, net of minority interest and taxes, due to the reduction of net income associated with properties held for sale in 2006 compared to 2005. |
| Office Property revenues decreased $103.0 million, or 21.6%, to $372.8 million, primarily due to: |
§ | a decrease of $154.9 million due to the joint ventures of The Crescent, Trammell Crow Center, Fountain Place, Houston Center and Post Oak Central in November 2004; partially offset by Fulbright Tower, which was acquired in December 2004 and joint ventured in February 2005, and One Buckhead Plaza which was acquired in April 2005 and joint ventured in June 2005; partially offset by |
51
§ | an increase of $26.9 million from the acquisition of Hughes Center in January through May 2004, Dupont Centre in March 2004, The Alhambra in August 2004, One Live Oak and Peakview Tower in December 2004 and the Exchange Building in February 2005; | ||
§ | an increase of $17.3 million resulting from third party management and leasing services and related direct expense reimbursements due to the joint ventures of The Crescent, Trammell Crow Center, Fountain Place, Houston Center and Post Oak Central in November 2004, and Fulbright Tower in February 2005 and One Buckhead Plaza in June 2005; | ||
§ | an increase of $6.2 million from the 42 consolidated Office Properties (excluding 2004 and 2005 acquisitions, dispositions and properties held for sale) that we owned or had an interest in, primarily due to a 2.6 percentage point increase in average occupancy (from 83.3% to 85.9%), increased expense recovery revenue related to the increase in occupancy and increased recoverable expenses, and increased parking revenue; partially offset by a decline in full service weighted average rental rates; and | ||
§ | an increase of $2.2 million in net lease termination fees (from $9.0 million to $11.2 million) primarily due to the El Paso lease termination. |
| Resort Residential Development Property revenues increased $192.8 million, or 62.2%, to $502.7 million, primarily due to: |
§ | an increase of $189.7 million in CRDI revenues primarily related to: |
o | an increase of $239.5 million primarily related to product mix in lots and units available for sale in 2005 versus 2004 at Hummingbird Lodge in Bachelor Gulch, Colorado, Northstar Village in Lake Tahoe, California, and Creekside Phase II, Creekside Townhomes, Brownstones Phase I and Delgany, all in Denver, Colorado, which had sales in the twelve months ended December 31, 2005, but no sales in the same period 2004; partially offset by | ||
o | a decrease of $47.3 million primarily related to product mix in lots and units available for sale in 2004 versus 2005 at Horizon Pass Townhomes in Bachelor Gulch, Colorado, Park Place, Park Tower and Central Platte Valley, all in Denver, Colorado, and Cresta Run in Edwards, Colorado, which had sales in the twelve months ended December 31, 2004, but no sales in the same period 2005; and | ||
o | a net decrease of $4.0 million primarily related to product mix in lots and units available for sale in 2004 versus 2005 at Horizon Pass Lodge in Bachelor Gulch, Colorado, Old Greenwood Lots in Lake Tahoe, California, Creekside Phase I in Denver, Colorado, and Main Street Station in Breckenridge, Colorado, which had sales in the twelve months ended December 31, 2004, but reduced sales in the same period 2005, partially offset by Grays Crossing and Old Greenwood Timeshares in Lake Tahoe, California, and Eagle Ranch in Eagle, Colorado, which had sales in the twelve months ended December 31, 2004, but increased sales in the same period 2005. |
| Resort/Hotel Property revenues decreased $71.9 million, or 33.5%, to $142.6 million, primarily due to: |
§ | a decrease of $88.8 million due to the contribution, in January 2005, of the Canyon Ranch Properties to a newly formed entity, CR Operating, LLC, in which we have a 48% member interest that is accounted for as an unconsolidated investment; partially offset by | ||
§ | an increase of $6.9 million in room revenue at the Luxury Resort and Spa Properties related to a 20% increase in revenue per available room (from $171 to $206) resulting from a 12% increase in average daily rate (from $285 to $319) and a 4 percentage point increase in occupancy (from 60% to 64%); | ||
§ | an increase of $4.5 million in food and beverage, spa and other revenue at the Luxury Resort and Spa Properties primarily due to a 12 percentage point increase in occupancy (from 59% to 71%) at the Sonoma Mission Inn primarily related to the renovation of the 97 historic inn rooms which were out of service during the first two quarters of 2004; | ||
§ | an increase of $2.8 million in room revenue at the Upscale Business-Class Hotel Properties primarily due to a 13% increase in revenue per available room (from $80 to $90) resulting from an increase of 6% in average daily rate (from $116 to $123) and a 4 percentage point increase in occupancy (from 69% to 73%); and | ||
§ | an increase of $2.6 million in food and beverage and other revenue at the Upscale Business-Class Hotel Properties primarily related to the 4 percentage point increase in occupancy (from 69% to 73%) in conjunction with increased group volume. |
| Office Property expenses decreased $38.4 million, or 16.4%, to $195.8 million, primarily due to: |
§ | a decrease of $73.7 million due to the joint ventures of The Crescent, Trammell Crow Center, Fountain Place, Houston Center and Post Oak Central in November 2004, partially offset by Fulbright Tower, which was acquired in December 2004 and joint ventured in February 2005 and One Buckhead Plaza, which was acquired in April 2005 and joint ventured in June 2005; partially offset by | ||
§ | an increase of $14.7 million related to the cost of providing third-party management services due to the joint venture of The Crescent, Trammell Crow Center, Fountain Place, Houston Center and Post Oak Central in November 2004, and Fulbright Tower in February 2005 and One Buckhead Plaza in June 2005, which are recouped by increased third party fee income and direct expense reimbursements; |
52
§ | an increase of $10.7 million from the acquisition of Hughes Center in January through May 2004, Dupont Centre in March 2004, The Alhambra in August 2004, One Live Oak and Peakview Tower in December 2004 and the Exchange Building in February 2005; | ||
§ | an increase of $4.8 million in operating expenses of the 42 consolidated Office Properties (excluding 2004 and 2005 acquisitions, dispositions and properties held for sale) that we owned or had an interest in primarily due to increased administrative costs, utilities, general building and property taxes; and | ||
§ | an increase of $4.5 million due to increased payroll and benefit costs and Sarbanes-Oxley compliance costs. |
| Resort Residential Development Property expenses increased $160.9 million, or 59.3%, to $432.2 million, primarily due to: |
§ | an increase of $160.5 million in CRDI expenses primarily related to: |
o | an increase of $207.3 million primarily related to product mix in lots and units available for sale in 2005 versus 2004 at Hummingbird Lodge in Bachelor Gulch, Colorado, Northstar Village in Lake Tahoe, California, and Creekside Phase II, Creekside Townhomes, Brownstones Phase I, and Delgany, all in Denver, Colorado, which had sales in the twelve months ended December 31, 2005, but no sales in the same period 2004; partially offset by | ||
o | a decrease of $41.8 million primarily related to product mix in lots and units available for sale in 2004 versus 2005 at Horizon Pass Townhomes in Bachelor Gulch, Colorado, Park Place, Park Tower, and Central Platte Valley, all in Denver, Colorado, and Cresta Run in Edwards, Colorado, which had sales in the twelve months ended December 31, 2004, but no sales in the same period 2005; and | ||
o | a net decrease of $5.5 million primarily related to product mix in lots and units available for sale in 2004 versus 2005 at Horizon Pass Lodge in Bachelor Gulch, Colorado, Old Greenwood Lots in Lake Tahoe, California, Creekside Phase I in Denver, Colorado, and Main Street Station in Breckenridge, Colorado, which had sales in the twelve months ended December 31, 2004, but reduced sales in the same period 2005, partially offset by Grays Crossing and Old Greenwood Timeshares in Lake Tahoe, California, and Eagle Ranch in Eagle, Colorado, which had sales in the twelve months ended December 31, 2004, but increased sales in the same period 2005. |
| Resort/Hotel Property expenses decreased $68.5 million, or 38.1%, to $111.3 million, primarily due to: |
§ | a decrease of $76.5 million due to the contribution, in January 2005, of the Canyon Ranch Properties to a newly formed entity, CR Operating, LLC, in which we have a 48% member interest that is accounted for as an unconsolidated investment; partially offset by | ||
§ | an increase of $5.2 million in operating expenses at the Luxury Resort and Spa Properties primarily due to a 12 percentage point increase in occupancy at Sonoma Mission Inn (from 59% to 71%) primarily related to the renovation of the 97 historic inn rooms which were out of service during the first two quarters of 2004; and | ||
§ | an increase of $2.7 million in operating expenses at the Upscale Business-Class Hotel Properties primarily related to a 9 percentage point increase in occupancy at Houston Renaissance (from 61% to 70%). |
| Gain on joint venture of properties decreased $268.5 million, due primarily to: |
§ | $265.8 million decrease due to the gain on the joint venture of The Crescent, Fountain Place, Trammell Crow Center, Houston Center and Post Oak Central Office Properties in 2004; and | ||
§ | $4.9 million decrease due to the write-off of capitalized internal leasing costs related to prior year joint venture of properties; partially offset by | ||
§ | $1.9 million increase due to the gain on the joint venture of Fullbright Tower and One Buckhead in 2005. |
| Income from investment land sales decreased $10.3 million due to the gain of $8.6 million on sales of two parcels of undeveloped investment land in 2005 compared to $18.8 million gain on sales of five parcels of undeveloped investment land in 2004. | ||
| Income from sale of investment in unconsolidated company increased $29.9 million due to the sale of our interests in the entity that owned the 5 Houston Center Office Property in 2005. | ||
| Interest and other income increased $11.3 million to $29.3 million primarily due to: |
§ | $10.5 million interest from mezzanine loans; | ||
§ | $3.7 million interest from U.S. Treasury and government sponsored agency securities purchased in December 2004 and January 2005 related to debt defeasance in order to release the lien on properties securing the LaSalle Note I and Nomura Funding VI Note; and | ||
§ | $1.7 million increase in other income from legal settlement proceeds received in connection with certain deed transfer taxes; partially offset by |
53
§ | $3.7 million received in 2004 from COPI pursuant to the COPI bankruptcy plan for notes receivable previously written off in 2001. |
| Equity in net income of unconsolidated companies increased $17.9 million to $27.6 million primarily due to: |
§ | an increase of $18.2 million in Other equity in net income primarily attributable to an increase of $6.1 million of income from the G2 investment and an increase of $11.5 million of income from the SunTx investment; and | ||
§ | an increase of $5.2 million in Office equity in net income primarily attributable to the joint ventures of The Crescent, Fountain Place, Trammell Crow Center, Houston Center and Post Oak Central Office Properties; partially offset by | ||
§ | a decrease of $6.0 million in Temperature-Controlled Logistics equity in net income primarily attributable to the gain on the sale of a portion of our interests in AmeriCold to The Yucaipa Companies in 2004. |
| Extinguishment of debt expense decreased $40.4 million, or 94.8%, to $2.2 million due to: |
§ | $17.5 million related to the securities purchased in excess of the debt balance to defease LaSalle Note I in connection with the joint venture of Office Properties in 2004; | ||
§ | $17.5 million prepayment penalty associated with the payoff of the JP Morgan Chase Mortgage Loan in connection with the joint venture of Office Properties in 2004; | ||
§ | $1.0 million mortgage prepayment fee associated with the payoff of the Lehman Brothers Holdings, Inc. Loan in connection with the joint venture of Office Properties in 2004; and | ||
§ | $6.6 million write-off of deferred financing costs, of which $3.1 million related to the joint venture or sale of real estate assets in 2004; partially offset by | ||
§ | $2.1 million write-off of deferred financing costs, of which $0.7 million related to the joint venture or sale of real estate assets in 2005. |
| Interest expense decreased $40.1 million, or 22.7%, to $136.7 million due to a decrease of $392.0 million in the weighted average debt balance (from $2,664 billion to $2,272 billion), partially offset by a .03 percentage point increase in the hedged weighted average interest rate (from 6.95% to 6.98%) and $3.0 million cash flow payments recorded as interest expense related to the Fountain Place transaction in June 2004. | ||
| Depreciation and amortization costs decreased $18.5 million, or 11.6%, to $141.4 million due to: |
§ | $19.0 million decrease in Office Property depreciation expense, primarily due to: |
° | $36.7 million decrease attributable to the joint ventures of The Crescent, Fountain Place, Trammell Crow Center, Houston Center and Post Oak Central in November 2004, partially offset by Fulbright Tower which was acquired in December 2004 and subsequently joint ventured in February 2005 and One Buckhead Plaza which was acquired in April 2005 and subsequently joint ventured in June 2005; partially offset by | ||
° | $13.2 million increase from the acquisitions of Hughes Center in January through May 2004, Dupont Centre in March 2004, The Alhambra in August 2004, One Live Oak, Fulbright Tower and Peakview Tower in December 2004 and the Exchange Building in February 2005; and | ||
° | $3.1 million increase primarily due to increased building and leasehold improvements; and |
§ | $5.2 million decrease in Resort/Hotel Property depreciation expense primarily related to the joint venture of the Canyon Ranch Properties, partially offset by the reclassification of the Denver City Marriott Hotel Property from held for sale to held and used; partially offset by | ||
§ | $6.6 million increase in Resort Residential Development Property depreciation expense primarily related to club amenities and golf course improvements at CRDI and Desert Mountain. |
| Amortization of deferred financing costs decreased $5.0 million, or 38.2%, to $8.1 million primarily due to the refinancing and modification of the Credit Facility in February 2005 and December 2005, partially offset by the reduction of the Fleet Fund I and II Term Loan in January 2004 and the payoff of the Lehman Capital Note in November 2004. | ||
| Impairment charges related to real estate assets decreased $4.1 million due to the impairment of $4.1 million related to the demolition of the old clubhouse at the Sonoma Club in the third quarter 2004 in order to construct a new clubhouse. | ||
| Corporate general and administrative costs increased $11.3 million, or 29.0%, to $50.4 million due primarily to an increase in compensation expense associated with restricted units granted under our long-term incentive compensation plans in December 2004 and May 2005. |
54
| $8.5 million decreased tax benefit on the Resort Residential Development Properties primarily attributable to the results of operations at CRDI; | ||
| $5.8 million decreased tax benefit on the Resort/Hotel Properties due to the contribution of the Canyon Ranch Properties to a newly formed entity, CR Operating, LLC, in which we have a 48% member interest that is accounted for as an unconsolidated investment and reduced taxable losses at the other properties; | ||
| $4.0 million tax expense related to income from our investment in SunTx; and | ||
| $2.8 million tax expense related to income from our investment in G2. |
| an increase of $88.1 million, net of minority interest, primarily due to the $89.2 million gain on the sale of four properties in 2005; and | ||
| an increase of $2.0 million, net of minority interest, due to an aggregate $3.0 million impairment on three office properties in 2004 compared to $1.0 million impairment of Waterside Commons office property in 2005; partially offset by | ||
| a decrease of $6.4 million, net of minority interest, due to the reduction of net income associated with properties held for sale in 2005 compared to 2004. |
55
For the year ended | ||||
(in millions) | December 31, 2006 | |||
Cash used in Operating Activities |
$ | (102.8 | ) | |
Cash provided by Investing Activities |
216.8 | |||
Cash used in Financing Activities |
(122.7 | ) | ||
Decrease in Cash and Cash Equivalents |
$ | (8.7 | ) | |
Cash and Cash Equivalents, Beginning of Period |
86.2 | |||
Cash and Cash Equivalents, End of Period |
$ | 77.5 | ||
| $186.4 million proceeds from defeasance investment maturities and other securities, primarily due to the maturity of the securities securing the LaSalle Note II which was repaid in March 2006 and the sale of our available for sale marketable securities; | ||
| $102.9 million proceeds from sale of investment in unconsolidated company due to our sale of the Four Westlake Park, Three Westlake Park, Bank One Center and Chase Tower Office Properties, on behalf of the joint ventures in which we had an interest; | ||
| $103.9 million proceeds from property sales due to the sale of our interest in the Paseo Del Mar Office Property, the sale of the Waterside Commons Office Property, and the sale of the JPI Multi-Family Investments luxury apartment project; | ||
| $81.3 million return of investment in unconsolidated companies, primarily due to the distributions received from AmeriCold Realty Trust, Main Street Partners, L.P., Blue River Land Company, LLC and Redtail Capital Partners, L.P.; | ||
| $69.0 million decrease in notes receivable, primarily due to the repayment of five of our mezzanine loans, offset by four new mezzanine loans; and | ||
| $9.6 million decrease in restricted cash. |
56
| $138.2 million for the development of investment properties, due to the development of the JPI Multi-Family Investments luxury apartment project, Paseo del Mar and Parkway at Oakhill office developments, Ritz-Carlton Hotel development and 3883 Hughes Parkway office development; | ||
| $68.7 million for non-revenue enhancing tenant improvement and leasing costs for Office Properties; | ||
| $47.6 million of property improvements for Office and Resort/Hotel Properties; | ||
| $30.7 million for the acquisition of investment properties, primarily due to the acquisition of the Financial Plaza Office Property in January 2006; | ||
| $27.6 million for development of amenities at the Resort Residential Development Properties; and | ||
| $23.5 million additional investment in unconsolidated companies, primarily related to our investment in Riverfront Village and Redtail Capital Partners, L.P. |
| $193.2 million payments under other borrowings, primarily due to the pay off of the LaSalle Note II funded by proceeds from the maturity of defeasance investments, the pay off of the FHI Finance loan, pay down of the Morgan Stanley note and principal payments related to other debt agreements; | ||
| $184.1 million distributions to common shareholders and unitholders; | ||
| $116.0 million net paydowns under our credit facility; | ||
| $32.0 million distributions to preferred shareholders; | ||
| $18.6 million capital distributions to joint venture partners, primarily due to distributions to JPI Multi-Family Investments, L.P., Desert Mountain and Fairmont Sonoma Mission Inn; and | ||
| $4.1 million debt financing costs, primarily due to the Bank of America loan secured by the Fairmont Sonoma Mission Inn and the Goldman Sachs and Morgan Stanley repurchase agreements secured by mezzanine loans. |
| $282.4 million proceeds from other borrowings, primarily due to the Key Bank loan secured by distributions from Funding III, IV & V, the Bank of America loan secured by the Fairmont Sonoma Mission Inn, the Morgan Stanley and Goldman Sachs repurchase agreements secured by mezzanine loans and construction draws on our Office developments and The Ritz-Carlton hotel development; | ||
| $111.2 million net proceeds from borrowings for construction costs at the Resort Residential Development Properties; | ||
| $23.1 million proceeds from the exercise of share and unit options; and | ||
| $8.6 million proceeds from capital contributions from our joint venture partners. |
57
Payments Due by Period | ||||||||||||||||||||
(in millions) | Total | Less than 1 yr | 1-3 years | 3-5 years | More than 5 yrs | |||||||||||||||
Long-term
debt(1)(4) |
||||||||||||||||||||
Principal payments |
$ | 2,296.4 | $ | 750.0 | $ | 1,008.4 | $ | 321.5 | $ | 216.5 | ||||||||||
Interest payments |
511.3 | 152.0 | 155.9 | 47.6 | 155.8 | |||||||||||||||
Share of unconsolidated debt |
705.6 | 38.6 | 61.8 | 185.1 | 420.1 | |||||||||||||||
Ground lease obligations |
147.0 | 1.9 | 3.8 | 4.0 | 137.3 | |||||||||||||||
Operating lease obligations (2) |
46.0 | 39.1 | 6.9 | | | |||||||||||||||
Share of unconsolidated operating lease
obligations |
13.4 | 11.4 | 2.0 | | | |||||||||||||||
Significant capital expenditure
obligations (3) |
145.3 | 140.3 | 5.0 | | | |||||||||||||||
Total contractual obligations |
$ | 3,865.0 | $ | 1,133.3 | $ | 1,243.8 | $ | 558.2 | $ | 929.7 | ||||||||||
(1) | Amounts include scheduled principal and interest payments for consolidated debt. We estimate variable rate debt interest payments using the interest rate as of December 31, 2006. Additionally, we have letters of credit issued under our credit facility of $9.5 million which reduces our borrowing capacity. These letters of credit are excluded from the table above as management believes that this obligation is not reasonably likely to occur. | |
(2) | As part of our ongoing operations, we execute operating lease agreements which generally provide tenants with leasehold improvement allowances and other lease concessions. In addition, we generally pay lease commissions to cooperating third-party brokers. Total committed but unfunded operating lease obligations as of December 31, 2006 are reflected in the above table. | |
(3) | For further detail of significant capital expenditure obligations, see table under Significant Capital Expenditures in this Item 7. | |
(4) | We intend on using the proceeds from the substantial asset sales that we expect to make in accordance with our Strategic Plan which is discussed in the Overview section to this Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations to address many of our long-term liquidity requirements early, including: retiring our 9.25% senior notes due April 2009, the 2009 Notes, selected mortgage debt, our Series B Preferred Shares and outstanding borrowings under our revolving credit facility. Additionally, if and when we sell our Resort Residential Development Properties, we expect to eliminate all related construction debt as well as future Resort Residential capital expenditures. |
Share of | ||||||||||||||||||||||||
Secured | Defeased | Unsecured | Consolidated | Unconsolidated | ||||||||||||||||||||
(in thousands) | Debt | Debt | Debt | Debt | Debt | Total | ||||||||||||||||||
2007 |
$ | 399,719 | $ | 100,279 | $ | 250,000 | $ | 749,998 | $ | 38,613 | $ | 788,611 | ||||||||||||
2008 |
234,290 | 289 | 118,000 | (1) | 352,579 | 43,465 | 396,044 | |||||||||||||||||
2009 |
280,489 | 320 | 375,000 | 655,809 | 18,279 | 674,088 | ||||||||||||||||||
2010 |
134,043 | 6,337 | | 140,380 | 17,761 | 158,141 | ||||||||||||||||||
2011 |
181,120 | | | 181,120 | 167,303 | 348,423 | ||||||||||||||||||
Thereafter |
139,151 | | 77,321 | 216,472 | 420,177 | 636,649 | ||||||||||||||||||
$ | 1,368,812 | $ | 107,225 | $ | 820,321 | $ | 2,296,358 | $ | 705,598 | $ | 3,001,956 | |||||||||||||
(1) | Borrowings under the credit facility. |
58
| our requirements for capital expenditures (not factoring in project level financing); | ||
| the amounts funded as of December 31, 2006, on a cash basis; and | ||
| amounts remaining to be funded (future funding classified between short-term and long-term capital requirements). |
Amount Spent | Capital Expenditures | |||||||||||||||||||
Total | as of | Amount | Short-Term | Long-Term | ||||||||||||||||
Project | December 31, | Remaining To | (Next 12 | (12+ | ||||||||||||||||
(in millions) Project | Cost (1) | 2006 | Spend | Months) (2) | Months) (2) | |||||||||||||||
Consolidated: |
||||||||||||||||||||
Office Segment |
||||||||||||||||||||
3883 Hughes Center (3) |
$ | 73.0 | $ | 56.6 | $ | 16.4 | $ | 16.4 | $ | | ||||||||||
Parkway at Oakhill(4) |
24.6 | 13.1 | 11.5 | 6.5 | 5.0 | |||||||||||||||
Resort Residential Development Segment |
||||||||||||||||||||
Ritz-Carlton Highlands (5) |
402.2 | 22.3 | 8.0 | (6) | 8.0 | | ||||||||||||||
Tahoe Mountain Club (7) |
107.2 | 92.2 | 15.0 | 15.0 | | |||||||||||||||
The Ritz-Carlton Phase I(8) |
211.6 | 120.9 | 90.7 | 90.7 | | |||||||||||||||
The Ritz-Carlton Phase II(9) |
136.8 | 14.2 | | (10) | | | ||||||||||||||
Resort/Hotel Segment |
||||||||||||||||||||
Park Hyatt Beaver Creek(11) |
26.6 | 22.9 | 3.7 | 3.7 | | |||||||||||||||
Total |
$ | 982.0 | $ | 342.2 | $ | 145.3 | $ | 140.3 | $ | 5.0 | ||||||||||
(1) | All amounts are approximate. | |
(2) | Reflects our estimate of the breakdown between short-term and long-term capital expenditures. | |
(3) | We have committed to a first phase office development of 239,000 square feet on land that we own within the Hughes Center complex. We expect to complete the building in the first quarter of 2007. We closed a $52.3 million construction loan in the third quarter of 2005. | |
(4) | In March 2006, we entered into a joint venture agreement with Champion Partners. The joint venture has committed to develop a 144,380 square-foot, two-building office complex in Austin, Texas. The joint venture has a $18.3 million construction loan to fund construction of this project. Amounts in the table represent our portion (90%) of total project costs. The development is scheduled to be completed in first quarter 2007. | |
(5) | We entered into agreements with Ritz-Carlton Hotel Company, L.L.C. for us to develop a 172 room luxury hotel in Lake Tahoe, California. The new luxury property will also include the Ritz-Carlton Residences. | |
(6) | The funding of future potential capital expenditures is dependent upon obtaining a certain level of unit pre-sales, construction financing and assumes we will obtain a joint venture partner for 60% of the equity. In the interim, we have committed up to an additional $8.0 million in development costs on the project. | |
(7) | As of December 31, 2006, we had invested $92.2 million in Tahoe Mountain Club, which includes the acquisition of land and development of golf courses and club amenities. This table includes the development planned for 2007 only. We anticipate collecting membership deposits which will be utilized to fund a portion of the development costs. | |
(8) | We entered into agreements with Ritz-Carlton Hotel Company, L.L.C. for us to develop the first Ritz-Carlton hotel and condominium project in Dallas, Texas. The development plans include a Ritz-Carlton with approximately 218 hotel rooms and 70 residences. Construction on the development is anticipated to be completed in the third quarter of 2007. We have a $169.0 million construction line of credit from KeyBank for the construction of this project. | |
(9) | We entered into agreements with Ritz-Carlton Hotel Company, L.L.C. for us to develop an additional 96 Ritz-Carlton residences and 4 townhomes adjacent to the Phase I development. | |
(10) | The funding of future potential capital expenditures is dependent upon obtaining a certain level of unit pre-sales and construction financing. | |
(11) | In April 2006, we began renovations at the Park Hyatt Beaver Creek in Avon, Colorado, which consist of the addition of air conditioning, upgrades to the common areas and taking 30 rooms out of service to expand the Allegria Spa within the hotel. The spa expansion and common area upgrade were completed in December 2006. |
59
Vested Unit | ||||||||||||||||||||||||||||
Redemption Value | Redeemable at | |||||||||||||||||||||||||||
(dollars in | at December 31, | December 31, | Redeemable in | |||||||||||||||||||||||||
thousands) | Granted(1) | Vested(1) | Redeemed | 2006 (2) | 2006 | 2007 | 2008 | |||||||||||||||||||||
2004 Plan |
3,568,500 | 2,147,500 | 206,750 | $ | 38,329 | $ | 35,278 | $ | 3,051 | $ | | |||||||||||||||||
2005 Plan |
2,187,500 | 437,500 | | 8,641 | (3) | | 8,542 | 99 | ||||||||||||||||||||
5,756,000 | 2,585,000 | 206,750 | $ | 46,970 | $ | 35,278 | $ | 11,593 | $ | 99 | ||||||||||||||||||
(1) | Amounts listed in common share equivalents and are net of forfeitures. | |
(2) | Vested units may be exchanged for cash unless, prior to the date of exchange, Crescent obtains shareholder approval authorizing it, at its discretion, to deliver instead two common shares for each such restricted unit. Redemption value based on Crescents closing stock price at December 31, 2006. | |
(3) | Amount is redeemable beginning May 16, 2007. |
Guaranteed | Maximum | |||||||
Amount | Guaranteed | |||||||
(in thousands) | Outstanding at | Amount at | ||||||
Debtor | December 31, 2006 | December 31, 2006 | ||||||
CRDI U.S. Bank National Association(1) |
$ | 14,346 | $ | 20,393 | ||||
CRDI Eagle Ranch Metropolitan District Letter of Credit (2) |
7,840 | 7,840 | ||||||
Fresh Choice, LLC(3) |
1,000 | 1,000 | ||||||
Total Guarantees |
$ | 23,186 | $ | 29,233 | ||||
(1) | We entered into a Payment and Completion Guaranty with U.S. Bank National Association for the repayment of bonds that were issued by the Northstar Community Housing Corporation to fund construction of an employee housing project. The initial guaranty of $20.4 million decreases to $5.1 million once construction is complete and certain conditions are met and decreases further and is eventually released as certain debt service coverage ratios are achieved. | |
(2) | We provide a $7.8 million letter of credit to support the payment of interest and principal of the Eagle Ranch Metropolitan District Revenue Development Bonds. | |
(3) | We provide a guarantee of up to $1.0 million to GE Capital Franchise Financing Corporation as part of Fresh Choices bankruptcy reorganization. |
60
Balance | ||||||||||||||||
Outstanding at | Interest Rate at | |||||||||||||||
Secured | Maximum | December 31, | December 31, | |||||||||||||
Description(1) | Asset | Borrowings | 2006 | 2006 | Maturity Date | |||||||||||
Secured Fixed Rate Debt: |
||||||||||||||||
AEGON Partnership Note |
Greenway Plaza | $ | 242,290 | $ | 242,290 | 7.53 | % | July 2009 | ||||||||
Prudential Note |
707 17th Street/Denver Marriott | 70,000 | 70,000 | 5.22 | June 2010 | |||||||||||
JP Morgan Chase III |
Datran Center | 65,000 | 65,000 | 4.88 | October 2015 | |||||||||||
Bank of America Note I |
Fairmont Sonoma Mission Inn | 55,000 | 55,000 | 5.40 | February 2011 | |||||||||||
Morgan Stanley I |
The Alhambra | 50,000 | 50,000 | 5.06 | October 2011 | |||||||||||
Allstate Life Note |
Financial Plaza | 38,949 | 38,949 | 5.47 | October 2010 | |||||||||||
Bank of America Note II |
The BAC Colonnade Building | 37,439 | 37,439 | 5.53 | May 2013 | |||||||||||
Metropolitan Life Note VII |
Dupont Centre | 35,500 | 35,500 | 4.31 | May 2011 | |||||||||||
Column Financial |
Peakview Tower | 33,000 | 33,000 | 5.59 | April 2015 | |||||||||||
Mass Mutual Note |
3800 Hughes | 32,203 | 32,203 | 7.75 | July 2007 | |||||||||||
Northwestern Life Note |
301 Congress | 26,000 | 26,000 | 4.94 | November 2008 | |||||||||||
JP Morgan Chase II |
3773 Hughes | 24,755 | 24,755 | 4.98 | September 2011 | |||||||||||
Allstate Note (2) |
3993 Hughes | 24,025 | 24,025 | 6.65 | September 2010 | |||||||||||
Metropolitan Life Note VI (2) |
3960 Hughes | 22,074 | 22,074 | 7.71 | October 2009 | |||||||||||
Construction, Acquisition and other obligations |
Various Office and Resort Residential Assets | 40,690 | 40,690 | 2.90 to 13.75 | July 2007 to Dec. 2016 | |||||||||||
Secured Fixed Rate Defeased Debt (3): |
||||||||||||||||
LaSalle Note I |
Funding I Defeasance | 100,017 | 100,017 | 7.83 | August 2007 | |||||||||||
Nomura Funding VI Note |
Funding VI Defeasance | 7,208 | 7,208 | 10.07 | July 2010 | |||||||||||
Subtotal/Weighted Average |
$ | 904,150 | $ | 904,150 | 6.38 | % | ||||||||||
Unsecured Fixed Rate Debt: |
||||||||||||||||
The 2009 Notes |
$ | 375,000 | $ | 375,000 | 9.25 | % | April 2009 | |||||||||
The 2007 Notes |
250,000 | 250,000 | 7.50 | September 2007 | ||||||||||||
Subtotal/Weighted Average |
$ | 625,000 | $ | 625,000 | 8.55 | % | ||||||||||
Secured Variable Rate Debt: |
||||||||||||||||
GACC Note (4) |
Funding One Assets | $ | 165,000 | $ | 165,000 | 6.82 | % | June 2007 | ||||||||
Morgan Stanley II (5)(6) |
Mezzanine Investments | 100,000 | 22,311 | 7.37 | March 2009 | |||||||||||
Goldman Sachs(6)(7) |
Mezzanine Investments | 100,000 | 10,000 | 6.72 | May 2009 | |||||||||||
KeyBank II |
Distributions from Funding III, IV and V | 75,000 | 75,000 | 7.35 | June 2007 | |||||||||||
National Bank of Arizona |
DMDC Assets | 30,000 | 15,654 | 8.75 | October 2007 | |||||||||||
Acquisition
and other obligations |
Various Office and Other Assets | 13,416 | 13,416 | 6.60 to 6.63 | February 2008 to December 2012 |
|||||||||||
Secured Variable Rate Construction Debt: |
||||||||||||||||
KeyBank I (4) |
Ritz-Carlton Dallas Construction | 169,000 | 80,296 | 7.60 | July 2008 | |||||||||||
JP Morgan Chase |
Northstar Big Horn Construction | 84,918 | 56,342 | 7.75 | October 2007 | |||||||||||
Societe Generale I (8) |
3883 Hughes Construction | 52,250 | 30,587 | 7.22 | September 2008 | |||||||||||
FirstBank of Vail |
Village Walk Construction | 41,782 | 14,041 | 7.75 | February 2008 | |||||||||||
US Bank II |
Northstar Trailside Construction | 36,000 | 1,991 | 8.10 | March 2009 | |||||||||||
US Bank I (9) |
Beaver Creek Landing Construction | 33,400 | 16,446 | 7.10 | February 2008 | |||||||||||
California Bank & Trust(10) |
One Riverfront Construction | 27,500 | 13,861 | 8.38 | March 2008 | |||||||||||
JP Morgan Chase Bank |
Old Greenwood Construction | 20,999 | 16,150 | 8.25 | March 2007 | |||||||||||
Construction, Acquisition and other obligations |
Various Office and Resort Residential Assets | 73,077 | 40,792 | 7.45 to 9.25 | June 2007 to December 2010 | |||||||||||
Subtotal/Weighted Average |
$ | 1,022,342 | $ | 571,887 | 7.39 | % | ||||||||||
Unsecured Variable Rate Debt: |
||||||||||||||||
Credit Facility (11) |
$ | 366,759 | $ | 118,000 | 6.95 | % | February 2008 | |||||||||
Junior Subordinated Notes |
51,547 | 51,547 | 7.38 | June 2035 | ||||||||||||
Junior Subordinated Notes |
25,774 | 25,774 | 7.38 | July 2035 | ||||||||||||
Subtotal/Weighted Average |
$ | 444,080 | $ | 195,321 | 7.12 | % | ||||||||||
Total/Weighted Average |
$ | 2,995,572 | $ | 2,296,358 | 7.29 | %(12) | ||||||||||
Average remaining term |
3.1 years |
(1) | For more information regarding the terms of our debt financing arrangements and the method of calculation of the interest rate for our variable rate debt, see Note 12, Notes Payable and Borrowings under Credit Facility, included in Item 8, Financial Statements and Supplementary Data. | |
(2) | Includes a portion of total premiums of $2.2 million reflecting market value of debt acquired with the purchase of Hughes Center portfolio. | |
(3) | We purchased U.S. Treasuries and government sponsored agency securities, or defeasance investments, to substitute as collateral for these loans. The cash flow from defeasance investments (principal and interest) matches the total debt service payment of the loans. | |
(4) | This loan has three one-year extension options. | |
(5) | The investments can be financed through March 2008, after which four equal payments are due quarterly. The loan has a provision for a one-year extension which is subject to Morgan Stanleys approval. | |
(6) | The loans supporting these facilities are subject to daily valuations by Morgan Stanley and Goldman Sachs, respectively. We are subject to a margin call if the overall leverage of the facility exceeds certain thresholds. | |
(7) | The investments can be financed through May 2009. The financing and maturity can be extended one year subject to Goldman Sachs approval. | |
(8) | This loan has two one-year extension options. | |
(9) | This loan has one six-month extension option. | |
(10) | This loan has one one-year extension option. | |
(11) | The Credit Facility has a maximum borrowing capacity of $366.8 million. The $118.0 million outstanding at December 31, 2006, excludes letters of credit issued under the facility of $9.5 million. We are also subject to financial covenants, which include minimum debt service ratios, maximum leverage ratios and, in the case of the Operating Partnership, a minimum tangible net worth limitation and a fixed charge coverage ratio. | |
(12) | The overall weighted average interest rate does not include the effect of our cash flow hedge agreements. Including the effect of these agreements, the overall weighted average interest rate would have been 7.27%. |
61
62
Additional | Change in | |||||||||||||||||||||||
(Reduction) | Unrealized Gains | |||||||||||||||||||||||
Effective Date | Notional Amount | Maturity Date | Reference Rate | Fair Market Value | Interest Expense | (Losses) in OCI | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest rate swaps |
||||||||||||||||||||||||
2/15/03 |
$ | 100,000 | 2/15/06 | 3.26 | % | $ | | $ | (147 | ) | $ | (138 | ) | |||||||||||
2/15/03 |
100,000 | 2/15/06 | 3.25 | % | | (148 | ) | (139 | ) | |||||||||||||||
9/02/03 |
200,000 | 9/01/06 | 3.72 | % | | (1,603 | ) | (1,264 | ) | |||||||||||||||
1/17/05 |
| 10/16/06 | 3.74 | % | | | (1) | (205 | ) | |||||||||||||||
4/25/06 |
79,761 | 12/26/07 | 5.20 | % | 3 | | (1) | 3 | ||||||||||||||||
9/29/06 |
200,000 | 9/4/07 | 5.20 | % | 56 | (66 | ) | 56 | ||||||||||||||||
$ | 59 | $ | (1,964 | ) | $ | (1,687 | ) | |||||||||||||||||
Interest rate caps |
||||||||||||||||||||||||
1/07/05 |
$ | 7,800 | 2/01/08 | 6.00 | % | | 4 | (1 | ) | |||||||||||||||
$ | 59 | $ | (1,960 | ) | $ | (1,688 | ) | |||||||||||||||||
(1) | A portion of the interest on the debt that this swap is hedging is capitalized. |
63
Our Ownership | ||||
as of | ||||
Entity | Classification | December 31, 2006 | ||
Crescent Irvine, LLC
|
Office (2211 Michelson Office Development Irvine) | 40.0% (1) | ||
Crescent Miami Center, LLC
|
Office (Miami Center Miami) | 40.0% (2) (3) | ||
Crescent One Buckhead Plaza, L.P.
|
Office (One Buckhead Plaza Atlanta) | 35.0% (4) (3) | ||
Crescent POC Investors, L.P.
|
Office (Post Oak Central Houston) | 23.9% (5) (3) | ||
Crescent HC Investors, L.P.
|
Office (Houston Center Houston) | 23.9% (5) (3) | ||
Crescent TC Investors, L.P.
|
Office (The Crescent Dallas) | 23.9% (5) (3) | ||
Crescent Ross Avenue Mortgage Investors, L.P.
|
Office (Trammell Crow Center, Mortgage Dallas) | 23.9% (6) (3) | ||
Crescent Ross Avenue Realty Investors, L.P.
|
Office (Trammell Crow Center, Ground Lessor Dallas) | 23.9% (6) (3) | ||
Crescent Fountain Place, L.P.
|
Office (Fountain Place Dallas) | 23.9% (6) (3) | ||
Crescent Five Post Oak Park L.P.
|
Office (Five Post Oak Park Houston) | 30.0% (7) (3) | ||
Crescent One BriarLake Plaza, L.P.
|
Office (One BriarLake Plaza Houston) | 30.0% (8) (3) | ||
Crescent 1301 McKinney, L.P.
|
Office (Fulbright Tower Houston) | 23.9% (9) (3) | ||
AmeriCold Realty Trust
|
Temperature-Controlled Logistics | 31.7% (10) | ||
CR Operating, LLC
|
Resort/Hotel | 48.0% (11) | ||
CR Spa, LLC
|
Resort/Hotel | 48.0% (11) | ||
East West Resort Development XIV, L.P., L.L.L.P.
|
Resort Residential Development | 26.8% (12) | ||
Blue River Land Company, LLC
|
Resort Residential Development | 33.2% (13) | ||
EW Deer Valley, LLC
|
Resort Residential Development | 35.7% (14) | ||
SunTx Fulcrum Fund, L.P. (SunTx)
|
Other | 26.5% (15) | ||
Redtail Capital Partners, L.P. (Redtail)
|
Other | 25.0% (16) (3) | ||
Fresh Choice, LLC
|
Other | 40.0% (17) | ||
G2 Opportunity Fund, L.P. (G2)
|
Other | 12.5% (18) |
(1) | The remaining 60% interest is owned by an affiliate of Hines. | |
(2) | The remaining 60% interest is owned by an affiliate of a fund managed by JP Morgan Investment Management, Inc., or JPM. | |
(3) | We have negotiated performance based incentives, which we refer to as promoted interest, which allow for additional equity to be earned if return targets are exceeded. | |
(4) | The remaining 65% interest is owned by Metzler US Real Estate Fund, L.P. | |
(5) | Each limited partnership is owned by Crescent Big Tex I, L.P., which is owned 60% by a fund advised by JPM and 16.1% by affiliates of General Electric, or GE. | |
(6) | Each limited partnership is owned by Crescent Big Tex II, L.P., which is owned 76.1% by a fund advised by JPM. | |
(7) | The remaining 70% interest is owned by an affiliate of GE. |
|
(8) | The remaining 70% interest is owned by affiliates of JPM. | |
(9) | The partnership is owned by Crescent Big Tex III, L.P., which is owned 60% by a fund advised by JPM and 16.1% by affiliates of GE. | |
(10) | Of the remaining 68.3% interest, 47.6% is owned by Vornado Realty, L.P. and 20.7% is owned by The Yucaipa Companies. | |
(11) | The remaining 52% interest is owned by the founders of Canyon Ranch and their affiliates. CR Spa, LLC operates three resort spas which offer guest programs and services and sells Canyon Ranch branded skin care products exclusively at the destination health resorts and the resort spas. CR Operating, LLC operates and manages the two Canyon Ranch destination health resorts, Tucson and Lenox, and collaborates with select real estate developers in developing residential lifestyle communities. | |
(12) | We provided 41.9% of the initial capitalization and the venture is structured such that we own a 26.8% interest after we receive a preferred return on our invested capital and return of our capital. The remaining 73.2% economic interest is owned by parties unrelated to us. East West Resort Development XIV, L.P., L.L.L.P. was formed to co-develop a hotel and condominiums in Avon, Colorado. | |
(13) | The remaining 66.8% interest is owned by parties unrelated to us. Blue River Land Company, LLC was formed to acquire, develop and sell certain real estate property in Summit County, Colorado. | |
(14) | The remaining 64.3% interest is owned by parties unrelated to us. EW Deer Valley, LLC was formed to acquire, hold and dispose of its 3.3% ownership interest in Empire Mountain Village, L.L.C. Empire Mountain Village, LLC was formed to acquire, develop and sell certain real estate property at Deer Valley Ski Resort next to Park City, Utah. | |
(15) | Of the remaining 73.5%, approximately 42.5% is owned by SunTx Capital Partners, L.P. and the remaining 31.0% is owned by a group of individuals unrelated to us. Of our limited partnership interest in SunTx, 6.3% is through an unconsolidated investment in SunTx Capital Partners, L.P., the general partner of SunTx. SunTx Fulcrum Fund, L.P.s objective is to invest in a portfolio of entities that offer the potential for substantial capital appreciation. | |
(16) | The remaining 75% interest is owned by Capstead Mortgage Corporation. Redtail was formed to invest up to $100.0 million in equity in select mezzanine loans on commercial real estate over a two-year period. | |
(17) | The remaining 60% interest is owned by Cedarlane Natural Foods, Inc. Fresh Choice is a restaurant owner, operator and developer. | |
(18) | G2 was formed for the purpose of investing in commercial mortgage backed securities and other commercial real estate investments. The remaining 87.5% interest is owned by Goff-Moore Strategic Partners, L.P., or GMSPLP, and by parties unrelated to us. G2 is managed and controlled by an entity that is owned equally by GMSPLP and GMAC Commercial Mortgage Corporation, or GMACCM. The ownership structure of GMSPLP consists of an approximately 92% limited partnership interest owned directly and indirectly by Richard E. Rainwater, Chairman of our Board of Trust Managers, of which approximately 6% is owned by Darla Moore, who is married to Mr. Rainwater. Approximately 6% general partner interest is owned by John C. Goff, Vice-Chairman of our Board of Trust Managers and our Chief Executive Officer. The remaining approximately 2% general partnership interest is owned by unrelated parties. |
64
| Impairments, | ||
| Acquisition of operating properties, | ||
| Relative sales method and percentage of completion (Resort Residential Development entities), | ||
| Gain recognition on sale of real estate assets, | ||
| Consolidation of variable interest entities, and | ||
| Allowance for doubtful accounts. |
65
66
67
68
| Net Income (Loss) determined in accordance with GAAP; | ||
| excluding gains (or losses) from sales of depreciable operating property; | ||
| excluding extraordinary items (as defined by GAAP); | ||
| plus depreciation and amortization of real estate assets; and | ||
| after adjustments for unconsolidated partnerships and joint ventures. |
69
For the years ended December 31, | ||||||||
2006 | 2005 | |||||||
(dollars in thousands) | (Restated) | |||||||
Net income |
$ | 33,433 | $ | 101,585 | ||||
Adjustments to reconcile net income to funds from operations
available to common shareholders diluted: |
||||||||
Depreciation and amortization of real estate assets |
132,139 | 131,392 | ||||||
Gain on property sales |
(28,847 | ) | (102,803 | ) | ||||
Gain from sale of development operating property |
(16,221 | ) | (13,369 | ) | ||||
Gain from promoted interest |
(22,575 | ) | (13,579 | ) | ||||
Adjustment for investments in unconsolidated companies: |
||||||||
Office Properties |
21,217 | 18,872 | ||||||
Resort Residential Development Properties |
(10,616 | ) | (5,543 | ) | ||||
Resort/Hotel Properties |
4,773 | 3,881 | ||||||
Temperature-Controlled Logistics Properties |
17,917 | 18,210 | ||||||
Unitholder minority interest |
266 | 12,379 | ||||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | ||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | ||||
Funds from operations available to common shareholders diluted(1) (2) |
$ | 99,448 | $ | 118,987 | ||||
Investment Segments: |
||||||||
Office Properties |
$ | 231,248 | $ | 209,715 | ||||
Resort Residential Development Properties |
12,422 | 45,486 | ||||||
Resort/Hotel Properties |
36,150 | 34,440 | ||||||
Temperature-Controlled Logistics Properties |
2,249 | 18,444 | ||||||
Other: |
||||||||
Corporate general and administrative |
(44,918 | ) | (50,363 | ) | ||||
Interest expense |
(135,457 | ) | (136,664 | ) | ||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | ||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | ||||
Income from mezzanine loans and other loans |
29,674 | 10,618 | ||||||
Other(3) |
118 | 19,349 | ||||||
Funds from operations available to common shareholders diluted(1) (2) |
$ | 99,448 | $ | 118,987 | ||||
Basic weighted average shares outstanding |
102,055 | 100,179 | ||||||
Diluted weighted average shares and units outstanding(4) |
122,980 | 118,836 |
(1) | To calculate basic funds from operations available to common shareholders, deduct unitholder minority interest. | |
(2) | In addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO available to common shareholders as adjusted, which includes adjustments to exclude extinguishment of debt and impairment charges related to real estate assets and include the impact of gain on sale of developed properties and promoted interest. We provide this additional information because management utilizes it, in addition to FFO available to common shareholders diluted, in making operating decisions and assessing performance, and because we believe that it also is useful to investors in assessing our operating performance. |
For the years ended December 31, | ||||||||
(dollars in thousands) | 2006 | 2005 | ||||||
FFO available to common shareholders diluted NAREIT |
$ | 99,448 | $ | 118,987 | ||||
Debt extinguishment charges related to the sale of real
estate assets |
| 729 | ||||||
Impairment charges related to real estate assets |
125 | 1,047 | ||||||
Promoted interests related to the sale of investment in
unconsolidated companies |
22,575 | 13,579 | ||||||
Gain from sale of development operating property |
16,221 | 13,369 | ||||||
FFO available to common shareholders diluted as adjusted |
$ | 138,369 | $ | 147,711 | ||||
(3) | Includes income from investment land sales, interest and other income, extinguishment of debt, income/loss from other unconsolidated companies, other expenses, depreciation and amortization of non-real estate assets, and amortization of deferred financing costs. | |
(4) | See calculations for the amounts presented in the reconciliation following this table. |
70
For the years | ||||||||
ended December 31, | ||||||||
(shares/units in share equivalents in thousands) | 2006 | 2005 | ||||||
Basic weighted average shares: |
102,055 | 100,179 | ||||||
Add: Weighted average units in share equivalents |
19,461 | 17,833 | ||||||
Restricted shares and share and unit options
in share equivalents |
1,464 | 824 | ||||||
Diluted weighted average shares and units |
122,980 | 118,836 | ||||||
For the year ended December 31, 2005 | ||||||||||||||||||||
As Reported with | ||||||||||||||||||||
As Previously | Discontinued | Discontinued | Restatement | |||||||||||||||||
(in thousands) | Reported | Operations | Operations | Adjustments | As Restated | |||||||||||||||
Net income |
$ | 95,307 | $ | | $ | 95,307 | $ | 6,278 | $ | 101,585 | ||||||||||
Adjustments to reconcile net income to funds from operations
available to common shareholders diluted: |
||||||||||||||||||||
Depreciation and amortization of real estate assets |
131,392 | | 131,392 | | 131,392 | |||||||||||||||
Gain on property sales |
(102,803 | ) | | (102,803 | ) | | (102,803 | ) | ||||||||||||
Gain from sale of development operating property |
(13,369 | ) | | (13,369 | ) | | (13,369 | ) | ||||||||||||
Gain from promoted interest |
(13,579 | ) | | (13,579 | ) | | (13,579 | ) | ||||||||||||
Office Properties |
18,872 | | 18,872 | | 18,872 | |||||||||||||||
Resort Residential Development Properties |
(5,468 | ) | | (5,468 | ) | (75 | ) | (5,543 | ) | |||||||||||
Resort/Hotel Properties |
3,881 | | 3,881 | | 3,881 | |||||||||||||||
Temperature-Controlled Logistics Properties |
18,210 | | 18,210 | | 18,210 | |||||||||||||||
Unitholder minority interest |
16,964 | | 16,964 | (4,585 | ) | 12,379 | ||||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | | (23,963 | ) | | (23,963 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
Funds from
operations available to common shareholders diluted |
$ | 117,369 | (1) | $ | | $ | 117,369 | $ | 1,618 | $ | 118,987 | |||||||||
Investment Segments: |
||||||||||||||||||||
Office Properties |
$ | 209,715 | $ | | $ | 209,715 | $ | | $ | 209,715 | ||||||||||
Resort Residential Development Properties |
43,868 | | 43,868 | 1,618 | 45,486 | |||||||||||||||
Resort/Hotel Properties |
34,440 | | 34,440 | | 34,440 | |||||||||||||||
Temperature-Controlled Logistics Properties |
18,444 | | 18,444 | | 18,444 | |||||||||||||||
Other: |
||||||||||||||||||||
Corporate general and administrative |
(50,363 | ) | | (50,363 | ) | | (50,363 | ) | ||||||||||||
Interest expense |
(136,664 | ) | | (136,664 | ) | | (136,664 | ) | ||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | | (23,963 | ) | | (23,963 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
Income from mezzanine loans and other loans |
10,618 | | 10,618 | | 10,618 | |||||||||||||||
Other(3) |
19,349 | | 19,349 | | 19,349 | |||||||||||||||
Funds from operations available to common
shareholders diluted |
$ | 117,369 | (1) | $ | | $ | 117,369 | $ | 1,618 | $ | 118,987 | |||||||||
Basic weighted average shares outstanding |
100,179 | | 100,179 | | 100,179 | |||||||||||||||
Diluted weighted average shares and units outstanding |
118,836 | | 118,836 | | 118,836 |
(1) | Amount represents FFO available to common shareholders presented in accordance with the NAREIT definition. The 2005 Form 10-K amount reported of $144,317 represented FFO, as adjusted, and included $26,948 gain on sale of developed property (inclusive of $13,579 promoted interest). |
71
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74 | ||||
75 | ||||
76 | ||||
77 | ||||
78 | ||||
79 | ||||
144 | ||||
146 |
73
74
December 31, | ||||||||
2006 | 2005 | |||||||
(As Restated See Note 1) | ||||||||
ASSETS: |
||||||||
Investments in real estate: |
||||||||
Land |
$ | 186,779 | $ | 183,228 | ||||
Land improvements, net of accumulated depreciation of $36,421 and $29,784
at December 31, 2006 and 2005, respectively |
70,630 | 70,494 | ||||||
Buildings
and improvements, net of accumulated depreciation of $533,311 and
$456,628 at December 31, 2006 and 2005, respectively |
1,851,770 | 1,734,131 | ||||||
Furniture, fixtures and equipment, net of accumulated depreciation of $39,118 and
$34,129 at December 31, 2006 and 2005, respectively |
43,270 | 37,018 | ||||||
Land held for investment or development |
750,970 | 513,040 | ||||||
Properties held for disposition, net |
2,400 | 118,205 | ||||||
Net investment in real estate |
$ | 2,905,819 | $ | 2,656,116 | ||||
Cash and cash equivalents |
77,550 | 86,228 | ||||||
Restricted cash and cash equivalents |
93,471 | 84,699 | ||||||
Defeasance investments |
111,014 | 274,134 | ||||||
Accounts receivable, net |
63,996 | 56,356 | ||||||
Deferred rent receivable |
61,096 | 70,074 | ||||||
Investments in unconsolidated companies |
280,870 | 393,535 | ||||||
Notes receivable, net |
174,867 | 219,016 | ||||||
Income tax asset current and deferred, net |
3,274 | 10,732 | ||||||
Other assets, net |
275,014 | 312,366 | ||||||
Total assets |
$ | 4,046,971 | $ | 4,163,256 | ||||
LIABILITIES: |
||||||||
Borrowings under Credit Facility |
$ | 118,000 | $ | 234,000 | ||||
Notes
payable |
2,101,037 | 1,933,546 | ||||||
Notes
payable, accounts payable, accrued expenses and other liabilities, properties held for disposition |
| 19,306 | ||||||
Junior subordinated notes |
77,321 | 77,321 | ||||||
Accounts payable, accrued expenses and other liabilities |
502,014 | 495,918 | ||||||
Current tax liability |
610 | | ||||||
Total liabilities |
$ | 2,798,982 | $ | 2,760,091 | ||||
COMMITMENTS AND CONTINGENCIES |
||||||||
MINORITY INTERESTS: |
||||||||
Operating partnership, 11,320,798 and 11,416,173 units, at December 31, 2006
and 2005, respectively |
$ | 75,865 | $ | 98,659 | ||||
Consolidated real estate partnerships |
49,838 | 52,880 | ||||||
Total minority interests |
$ | 125,703 | $ | 151,539 | ||||
SHAREHOLDERS EQUITY: |
||||||||
Preferred shares, $0.01 par value, authorized 100,000,000 shares: |
||||||||
Series A
Convertible Redeemable Cumulative Preferred Shares,
liquidation preference of $25.00 per share, 14,200,000 shares issued and
outstanding at December 31, 2006 and 2005 respectively |
$ | 319,166 | $ | 319,166 | ||||
Series B Cumulative Redeemable Preferred Shares,
liquidation preference of $25.00 per share, 3,400,000 shares issued and
outstanding at December 31, 2006 and 2005 |
81,923 | 81,923 | ||||||
Common shares, $0.01 par value, authorized 250,000,000 shares, 127,875,571 and
126,562,980 shares issued and 102,754,654 and 101,442,063 shares outstanding at
December 31, 2006 and 2005, respectively |
1,279 | 1,266 | ||||||
Additional paid-in capital |
2,294,827 | 2,271,888 | ||||||
Deferred compensation on restricted shares |
| (1,182 | ) | |||||
Accumulated deficit |
(1,114,553 | ) | (962,688 | ) | ||||
Accumulated other comprehensive (loss) income |
(224 | ) | 1,385 | |||||
$ | 1,582,418 | $ | 1,711,758 | |||||
Less shares held in treasury, at cost, 25,120,917 common shares at December 31, 2006
and 2005 |
(460,132 | ) | (460,132 | ) | ||||
Total shareholders equity |
$ | 1,122,286 | $ | 1,251,626 | ||||
Total liabilities and shareholders equity |
$ | 4,046,971 | $ | 4,163,256 | ||||
75
For the Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(As Restated see Note 1) | ||||||||||||
REVENUE: |
||||||||||||
Office Property |
$ | 414,343 | $ | 372,759 | $ | 475,797 | ||||||
Resort Residential Development Property |
372,148 | 502,723 | 309,945 | |||||||||
Resort/Hotel Property |
142,205 | 142,618 | 214,531 | |||||||||
Total Property Revenue |
$ | 928,696 | $ | 1,018,100 | $ | 1,000,273 | ||||||
EXPENSE: |
||||||||||||
Office Property real estate taxes |
$ | 41,674 | $ | 38,062 | $ | 57,393 | ||||||
Office Property operating expenses |
164,965 | 157,719 | 176,768 | |||||||||
Resort Residential Development Property expense |
342,994 | 432,203 | 271,310 | |||||||||
Resort/Hotel Property expense |
108,391 | 111,277 | 179,825 | |||||||||
Total Property Expense |
$ | 658,024 | $ | 739,261 | $ | 685,296 | ||||||
Income from Property Operations |
$ | 270,672 | $ | 278,839 | $ | 314,977 | ||||||
OTHER INCOME (EXPENSE): |
||||||||||||
Income from sale of investment in unconsolidated company |
$ | 47,709 | $ | 29,934 | $ | | ||||||
Income from investment land sales |
| 8,622 | 18,879 | |||||||||
(Loss) gain on joint venture of properties |
| (2,743 | ) | 265,772 | ||||||||
Interest and other income |
47,428 | 29,250 | 18,005 | |||||||||
Corporate general and administrative |
(44,918 | ) | (50,363 | ) | (38,889 | ) | ||||||
Interest expense |
(134,273 | ) | (136,664 | ) | (176,771 | ) | ||||||
Amortization of deferred financing costs |
(7,605 | ) | (8,108 | ) | (13,056 | ) | ||||||
Extinguishment of debt |
| (2,161 | ) | (42,608 | ) | |||||||
Depreciation and amortization |
(147,407 | ) | (141,366 | ) | (159,898 | ) | ||||||
Impairment charges related to real estate assets |
| | (4,094 | ) | ||||||||
Other expenses |
(12,997 | ) | (3,964 | ) | (725 | ) | ||||||
Equity in net income (loss) of unconsolidated companies: |
||||||||||||
Office Properties |
9,231 | 11,464 | 6,262 | |||||||||
Resort Residential Development Properties |
(355 | ) | (491 | ) | (2,266 | ) | ||||||
Resort/Hotel Properties |
(5,109 | ) | (1,541 | ) | (245 | ) | ||||||
Temperature-Controlled Logistics Properties |
(15,669 | ) | 234 | 6,153 | ||||||||
Other |
12,157 | 17,885 | (280 | ) | ||||||||
Total other income (expense) |
$ | (251,808 | ) | $ | (250,012 | ) | $ | (123,761 | ) | |||
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS AND INCOME TAXES |
$ | 18,864 | $ | 28,827 | $ | 191,216 | ||||||
Minority interests |
(2,661 | ) | (11,067 | ) | (32,706 | ) | ||||||
Income tax benefit (expense) |
3,475 | (8,462 | ) | 12,231 | ||||||||
INCOME BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE |
$ | 19,678 | $ | 9,298 | $ | 170,741 | ||||||
(Loss) income from discontinued operations, net of minority interests and taxes |
(502 | ) | 4,006 | 10,407 | ||||||||
Impairment charges related to real estate assets from discontinued operations, net of
minority interests |
(105 | ) | (953 | ) | (2,978 | ) | ||||||
Gain on sale of real estate from discontinued operations, net of minority interest and taxes |
14,362 | 89,234 | 1,052 | |||||||||
Cumulative effect of a change in accounting principle, net of minority interests |
| | (363 | ) | ||||||||
NET INCOME |
$ | 33,433 | $ | 101,585 | $ | 178,859 | ||||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | (23,723 | ) | ||||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | (8,075 | ) | ||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,395 | $ | 69,547 | $ | 147,061 | ||||||
BASIC EARNINGS PER SHARE DATA: |
||||||||||||
(Loss) income available to common shareholders before discontinued operations and
cumulative effect of a change in accounting principle |
$ | (0.12 | ) | $ | (0.23 | ) | $ | 1.40 | ||||
(Loss) Income from discontinued operations, net of minority interests and taxes |
(0.01 | ) | 0.04 | 0.11 | ||||||||
Impairment charges related to real estate assets from discontinued operations, net of
minority interests |
| (0.01 | ) | (0.03 | ) | |||||||
Gain on sale of real estate from discontinued operations, net of minority interests and
taxes |
0.14 | 0.89 | 0.01 | |||||||||
Cumulative effect of a change in accounting principle, net of minority interests |
| | | |||||||||
Net income available to common shareholders basic |
$ | 0.01 | $ | 0.69 | $ | 1.49 | ||||||
DILUTED EARNINGS PER SHARE DATA: |
||||||||||||
(Loss) income available to common shareholders before discontinued operations and
cumulative effect of a change in accounting principle |
$ | (0.12 | ) | $ | (0.23 | ) | $ | 1.40 | ||||
(Loss) Income from discontinued operations, net of minority interests and taxes |
(0.01 | ) | 0.04 | 0.10 | ||||||||
Impairment charges related to real estate assets from discontinued operations, net of
minority interests |
| (0.01 | ) | (0.03 | ) | |||||||
Gain on sale of real estate from discontinued operations, net of minority interests and
taxes |
0.14 | 0.89 | 0.01 | |||||||||
Cumulative effect of a change in accounting principle, net of minority interests |
| | | |||||||||
Net income available to common shareholders diluted |
$ | 0.01 | $ | 0.69 | $ | 1.48 | ||||||
76
Deferred | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Additional | Compensation | Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Preferred Shares | Treasury Shares | Common Shares | Paid-in | on Restricted | Accumulated | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Net Value | Shares | Net Value | Shares | Net Value | Shares | Par Value | Capital | Shares | (Deficit) | (Loss) Income | Total | ||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS EQUITY, December 31, 2003 |
10,800,000 | $ | 248,160 | 3,400,000 | $ | 81,923 | 25,121,861 | $ | (460,148 | ) | 124,396,168 | $ | 1,237 | $ | 2,245,683 | $ | (4,102 | ) | $ | (877,120 | ) | $ | (13,829 | ) | $ | 1,221,804 | ||||||||||||||||||||||||||
Cumulative effect of restatement on prior years |
| | | | | | | | | | (2,570 | ) | | (2,570 | ) | |||||||||||||||||||||||||||||||||||||
SHAREHOLDERS EQUITY, December 31, 2003 (As Restated see Note 1) |
10,800,000 | $ | 248,160 | 3,400,000 | $ | 81,923 | 25,121,861 | $ | (460,148 | ) | 124,396,168 | $ | 1,237 | $ | 2,245,683 | $ | (4,102 | ) | $ | (879,690 | ) | $ | (13,829 | ) | $ | 1,219,234 | ||||||||||||||||||||||||||
Comprehensive Income |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (As Restated see Note 1) |
| | | | | | | | | | 178,859 | | 178,859 | |||||||||||||||||||||||||||||||||||||||
Change in
Unrealized Net Gain on Marketable Securities |
| | | | | | | | | | | 1,036 | 1,036 | |||||||||||||||||||||||||||||||||||||||
Change in Unrealized Net Gain on Cash Flow Hedges |
| | | | | | | | | | | 11,771 | 11,771 | |||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income |
191,666 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Shares |
| | | | | | 7,954 | | 130 | | | | 130 | |||||||||||||||||||||||||||||||||||||||
Exercise of Common Share Options |
| | | | | | 53,980 | 1 | 821 | | | | 822 | |||||||||||||||||||||||||||||||||||||||
Accretion of Discount on Employee Stock Option Notes |
| | | | | | | | (252 | ) | | | | (252 | ) | |||||||||||||||||||||||||||||||||||||
Issuance of Shares in Exchange for Operating
Partnership Units |
| | | | | | 83,916 | 7 | (37 | ) | | | | (30 | ) | |||||||||||||||||||||||||||||||||||||
Preferred Equity Issuance |
3,400,000 | 71,006 | | | | | | | | | | | 71,006 | |||||||||||||||||||||||||||||||||||||||
Stock Option Grants |
| | | | | | | | (10 | ) | | | | (10 | ) | |||||||||||||||||||||||||||||||||||||
Amortization of Deferred Compensation on Restricted Shares |
| | | | | | | | | 1,869 | | | 1,869 | |||||||||||||||||||||||||||||||||||||||
Dividends on Common Shares |
| | | | | | | | | | (149,034 | ) | | (149,034 | ) | |||||||||||||||||||||||||||||||||||||
Dividends on Preferred Shares |
| | | | | | | | | | (31,798 | ) | | (31,798 | ) | |||||||||||||||||||||||||||||||||||||
SHAREHOLDERS EQUITY, December 31, 2004 (As Restated see Note 1) |
14,200,000 | $ | 319,166 | 3,400,000 | $ | 81,923 | 25,121,861 | $ | (460,148 | ) | 124,542,018 | $ | 1,245 | $ | 2,246,335 | $ | (2,233 | ) | $ | (881,663 | ) | $ | (1,022 | ) | $ | 1,303,603 | ||||||||||||||||||||||||||
Comprehensive Income |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (As Restated see Note 1) |
| | | | | | | | | | 101,585 | | 101,585 | |||||||||||||||||||||||||||||||||||||||
Change in Unrealized Net Gain on Marketable Securities |
| | | | | | | | | | | (468 | ) | (468 | ) | |||||||||||||||||||||||||||||||||||||
Change in Unrealized Net Gain on Cash Flow Hedges |
| | | | | | | | | | | 3,730 | 3,730 | |||||||||||||||||||||||||||||||||||||||
Change in Pension Liability at Unconsolidated Company |
| | | | | | | | | | | (855 | ) | (855 | ) | |||||||||||||||||||||||||||||||||||||
Total Comprehensive Income |
103,992 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Common Shares |
| | | | | | 188,358 | 2 | 3,075 | | | | 3,077 | |||||||||||||||||||||||||||||||||||||||
Exercise of Common Share Options |
| | | | | | 267,972 | 3 | 4,283 | | | | 4,286 | |||||||||||||||||||||||||||||||||||||||
Accretion of Discount on Employee Stock Option Notes |
| | | | | | | | (253 | ) | | | | (253 | ) | |||||||||||||||||||||||||||||||||||||
Issuance of Shares in Exchange for Operating
Partnership Units |
| | | | | | 1,564,632 | 16 | 18,384 | | | | 18,400 | |||||||||||||||||||||||||||||||||||||||
Reissuance of Treasury Shares |
| | | | (944 | ) | 16 | | | | | | | 16 | ||||||||||||||||||||||||||||||||||||||
Stock Option Grants |
| | | | | | | | 64 | | | | 64 | |||||||||||||||||||||||||||||||||||||||
Amortization of Deferred compensation on Restricted Shares |
| | | | | | | | | 1,051 | | | 1,051 | |||||||||||||||||||||||||||||||||||||||
Dividends on Common Shares |
| | | | | | | | | | (150,572 | ) | | (150,572 | ) | |||||||||||||||||||||||||||||||||||||
Dividends on Preferred Shares |
| | | | | | | | | | (32,038 | ) | | (32,038 | ) | |||||||||||||||||||||||||||||||||||||
SHAREHOLDERS EQUITY, December 31, 2005 (As Restated see Note 1) |
14,200,000 | $ | 319,166 | 3,400,000 | $ | 81,923 | 25,120,917 | $ | (460,132 | ) | 126,562,980 | $ | 1,266 | $ | 2,271,888 | $ | (1,182 | ) | $ | (962,688 | ) | $ | 1,385 | $ | 1,251,626 | |||||||||||||||||||||||||||
Comprehensive Income |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income |
| | | | | | | | | | 33,433 | | 33,433 | |||||||||||||||||||||||||||||||||||||||
Change in Unrealized Net Gain on Marketable Securities |
| | | | | | | | | | | (568 | ) | (568 | ) | |||||||||||||||||||||||||||||||||||||
Change in Unrealized Net Gain on Cash Flow Hedges |
| | | | | | | | | | | (1,760 | ) | (1,760 | ) | |||||||||||||||||||||||||||||||||||||
Change in Pension Liability at Unconsolidated Company |
| | | | | | | | | | | 719 | 719 | |||||||||||||||||||||||||||||||||||||||
Total Comprehensive Income |
31,824 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of Common Share Options |
| | | | | | 393,005 | 4 | 6,931 | | | | 6,935 | |||||||||||||||||||||||||||||||||||||||
Accretion of Discount on Employee Stock Option Notes |
| | | | | | | | (253 | ) | | | | (253 | ) | |||||||||||||||||||||||||||||||||||||
Issuance of Shares in Exchange for Operating
Partnership Units |
| | | | | | 919,586 | 9 | 16,132 | | | | 16,141 | |||||||||||||||||||||||||||||||||||||||
Amortization of Stock Options |
| | | | | | | | 260 | | | | 260 | |||||||||||||||||||||||||||||||||||||||
Reclassification of Deferred Compensation on Restricted Shares |
| | | | | | | | (1,182 | ) | 1,182 | | | | ||||||||||||||||||||||||||||||||||||||
Amortization of Restricted Shares |
| | | | | | | | 1,051 | | | | 1,051 | |||||||||||||||||||||||||||||||||||||||
Dividends on Common Shares |
| | | | | | | | | | (153,260 | ) | | (153,260 | ) | |||||||||||||||||||||||||||||||||||||
Dividends on Preferred Shares |
| | | | | | | | | | (32,038 | ) | | (32,038 | ) | |||||||||||||||||||||||||||||||||||||
SHAREHOLDERS EQUITY, December 31, 2006 |
14,200,000 | $ | 319,166 | 3,400,000 | $ | 81,923 | 25,120,917 | $ | (460,132 | ) | 127,875,571 | $ | 1,279 | $ | 2,294,827 | $ | | $ | (1,114,553 | ) | $ | (224 | ) | $ | 1,122,286 | |||||||||||||||||||||||||||
77
For the Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
(As Restated | (As Restated | |||||||||||
see Note 1) | see Note 1) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net income |
$ | 33,433 | $ | 101,585 | $ | 178,859 | ||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: |
||||||||||||
Depreciation and amortization |
156,014 | 153,452 | 180,799 | |||||||||
Extinguishment of debt |
| 2,271 | 6,459 | |||||||||
Resort Residential Development cost of sales |
220,910 | 311,050 | 161,853 | |||||||||
Resort Residential Development capital expenditures |
(425,860 | ) | (356,603 | ) | (202,767 | ) | ||||||
Impairment charges related to real estate assets |
125 | 1,122 | 7,605 | |||||||||
Income from investment land sales |
| (8,622 | ) | (18,879 | ) | |||||||
Loss
(gain) on joint venture of properties, net |
| 2,743 | (265,772 | ) | ||||||||
Gain on property sales, net |
(36,256 | ) | (105,258 | ) | (1,241 | ) | ||||||
Income from sale of investment in unconsolidated company |
(47,709 | ) | (29,934 | ) | | |||||||
Minority interests |
13,178 | 27,494 | 34,217 | |||||||||
Cumulative effect of a change in accounting principle, net of minority interests |
| | 363 | |||||||||
Non-cash compensation |
13,059 | 13,236 | 1,737 | |||||||||
Amortization of debt premiums |
(1,792 | ) | (2,452 | ) | (2,386 | ) | ||||||
Equity in earnings from unconsolidated companies |
(255 | ) | (27,551 | ) | (9,624 | ) | ||||||
Ownership portion of management fees from unconsolidated companies |
7,462 | 6,609 | 1,833 | |||||||||
Distributions received from unconsolidated companies |
9,083 | 30,992 | 7,982 | |||||||||
Redemption of units under long-term incentive plans |
(4,349 | ) | | | ||||||||
Change in assets and liabilities, net of effect of consolidations, acquisitions and dispositions: |
||||||||||||
Restricted cash and cash equivalents |
(15,354 | ) | (1,626 | ) | 54,889 | |||||||
Accounts receivable and notes receivable |
(32,282 | ) | 886 | (17,924 | ) | |||||||
Deferred rent receivable |
8,538 | (14,562 | ) | (16,246 | ) | |||||||
Income tax
asset -current and deferred, net |
7,458 | 7,723 | (20,830 | ) | ||||||||
Other assets |
(17,720 | ) | (23,169 | ) | (22,885 | ) | ||||||
Accounts payable, accrued expenses and other liabilities |
9,534 | 50,243 | 34,525 | |||||||||
Net cash (used in) provided by operating activities |
$ | (102,783 | ) | $ | 139,629 | $ | 92,567 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Net cash impact of consolidation of previously unconsolidated entities |
$ | | $ | | $ | 334 | ||||||
Proceeds from property sales |
103,911 | 236,725 | 174,881 | |||||||||
Proceeds from sale of investment in unconsolidated company and related property sales |
102,871 | 32,237 | 3,229 | |||||||||
Proceeds from joint venture partners |
| 144,193 | 1,028,913 | |||||||||
Acquisition of investment properties |
(30,675 | ) | (192,154 | ) | (381,672 | ) | ||||||
Development of investment properties |
(138,161 | ) | (83,961 | ) | (7,089 | ) | ||||||
Property improvements Office Properties |
(17,790 | ) | (20,131 | ) | (14,297 | ) | ||||||
Property improvements Resort/Hotel Properties |
(29,842 | ) | (4,707 | ) | (27,739 | ) | ||||||
Tenant improvement and leasing costs Office Properties |
(68,664 | ) | (65,540 | ) | (92,876 | ) | ||||||
Resort Residential Development Properties investments |
(27,610 | ) | (32,876 | ) | (35,428 | ) | ||||||
Decrease (increase) in restricted cash and cash equivalents |
9,584 | (4,531 | ) | 75,395 | ||||||||
Purchases of defeasance investments and other securities |
| (115,710 | ) | (203,643 | ) | |||||||
Proceeds from defeasance investment maturities and other securities |
186,428 | 23,273 | 14,560 | |||||||||
Return of investment in unconsolidated companies |
81,288 | 18,785 | 129,693 | |||||||||
Investment in unconsolidated companies |
(23,506 | ) | (17,118 | ) | (19,047 | ) | ||||||
Decrease (increase) in notes receivable |
69,018 | (116,843 | ) | (15,230 | ) | |||||||
Net cash provided by (used in) investing activities |
$ | 216,852 | $ | (198,358 | ) | $ | 629,984 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
Debt financing costs |
$ | (4,060 | ) | $ | (15,659 | ) | $ | (12,918 | ) | |||
Borrowings under Credit Facility |
390,000 | 758,300 | 530,000 | |||||||||
Payments under Credit Facility |
(506,000 | ) | (666,800 | ) | (626,500 | ) | ||||||
Notes payable proceeds |
282,370 | 387,200 | 577,146 | |||||||||
Notes payable payments |
(193,178 | ) | (346,968 | ) | (1,027,661 | ) | ||||||
Junior subordinated notes |
| 77,321 | | |||||||||
Resort Residential Development Properties note payable borrowings |
276,064 | 257,411 | 111,672 | |||||||||
Resort Residential Development Properties note payable payments |
(164,863 | ) | (198,540 | ) | (118,495 | ) | ||||||
Capital distributions to joint venture partner |
(18,555 | ) | (18,516 | ) | (8,565 | ) | ||||||
Capital contributions from joint venture partner |
8,566 | 7,834 | 2,833 | |||||||||
Proceeds from exercise of share and unit options |
23,093 | 21,995 | 829 | |||||||||
Reissuance of Treasury Shares |
| 16 | | |||||||||
Issuance of preferred shares-Series A |
| | 71,006 | |||||||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | (23,963 | ) | ||||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | (8,075 | ) | ||||||
Dividends and unitholder distributions |
(184,146 | ) | (178,890 | ) | (175,621 | ) | ||||||
Net cash (used in) provided by financing activities |
$ | (122,747 | ) | $ | 52,666 | $ | (708,312 | ) | ||||
(DECREASE ) INCREASE IN CASH AND CASH EQUIVALENTS |
$ | (8,678 | ) | $ | (6,063 | ) | $ | 14,239 | ||||
CASH AND CASH EQUIVALENTS, Beginning of period |
86,228 | 92,291 | 78,052 | |||||||||
CASH AND CASH EQUIVALENTS, End of period |
$ | 77,550 | $ | 86,228 | $ | 92,291 | ||||||
78
Operating Partnership
|
Wholly-owned assets The Avallon IV, Dupont Centre and Financial Plaza, included in our Office Segment. | |
Non wholly-owned assets, consolidated 301 Congress Avenue (50% interest), included in our Office Segment. Fairmont Sonoma Mission Inn (80.1% interest), included in our Resort/Hotel Segment. | ||
Non wholly-owned assets, unconsolidated 2211 Michelson Office Development Irvine (40% interest), Miami Center (40% interest), One BriarLake Plaza (30% interest), Five Post Oak Park (30% interest), Houston Center (23.85% interest in three office properties and the Houston Center Shops), The Crescent Atrium (23.85% interest), The Crescent Office Towers (23.85% interest), Trammell Crow Center(1) (23.85% interest), Post Oak Central (23.85% interest in three Office Properties), Fountain Place (23.85% interest), Fulbright Tower (23.85% interest) and One Buckhead Plaza (35% interest), included in our Office Segment. AmeriCold Realty Trust (31.7% interest in 92 properties), included in our Temperature-Controlled Logistics Segment. Canyon Ranch Tucson and Canyon Ranch Lenox (48% interest), included in our Resort/Hotel Segment. | ||
Crescent Real Estate Funding One,
L.P. (Funding One)
|
Wholly-owned assets Carter Burgess Plaza, 125 E. John Carpenter Freeway, The Aberdeen, Regency Plaza One and The Citadel, included in our Office Segment. | |
Hughes Center Entities(2)
|
Wholly-owned assets Hughes Center Properties (eight office properties each in a separate limited liability company), 3883 Hughes Parkway (Office Development), included in our Office Segment. | |
Crescent Real Estate Funding III,
IV and V, L.P. (Funding III, IV and
V)(3)
|
Non wholly-owned assets, consolidated Greenway Plaza Office Properties (ten Office Properties, 99.9% interest), included in our Office Segment. Renaissance Houston Hotel (99.9% interest), included in our Resort/Hotel Segment. | |
Crescent Real Estate Funding VIII, L.P.
(Funding VIII)
|
Wholly-owned assets The Addison, Austin Centre, The Avallon I, II, III and V, Exchange Building, 816 Congress, Greenway I & IA (two office properties), Greenway II, Johns Manville Plaza, One Live Oak, Palisades Central I, Palisades Central II, Stemmons Place, 3333 Lee Parkway, 44 Cook and 55 Madison, included in our Office Segment. Omni Austin Hotel and Ventana Inn & Spa, included in our Resort/Hotel Segment. | |
Crescent Real Estate Funding XII, L.P.
(Funding XII)
|
Wholly-owned assets Briargate Office and Research Center, MacArthur Center I & II and Stanford Corporate Center, included in our Office Segment. Park Hyatt Beaver Creek Resort & Spa, included in our Resort/Hotel Segment. | |
Crescent 707 17th Street, LLC
|
Wholly-owned assets 707 17th Street, included in our Office Segment and the Denver | |
Marriott City Center, included in our Resort/Hotel Segment. | ||
Crescent Peakview Tower, LLC
|
Wholly-owned asset Peakview Tower, included in our Office Segment. | |
Crescent Alhambra, LLC
|
Wholly-owned asset The Alhambra (two Office Properties), included in our Office Segment. | |
Crescent Datran Center, LLC
|
Wholly-owned asset Datran Center (two Office Properties), included in our Office Segment. | |
Crescent Spectrum Center, L.P.
|
Non wholly-owned asset, consolidated Spectrum Center (99.9% interest), included in our Office Segment. | |
C-C Parkway Austin, L.P.
|
Non wholly-owned asset, consolidated Parkway at Oakhill Office Development (90% interest), included in our Office Segment. | |
Crescent Colonnade, LLC
|
Wholly-owned asset The BAC-Colonnade Building, included in our Office Segment. |
79
Mira Vista Development Corp. (MVDC)
|
Non wholly-owned asset, consolidated Mira Vista (98% interest), included in our Resort Residential Development Segment. | |
Crescent Plaza Residential, L.P.
|
Wholly-owned asset the Residences at the Ritz-Carlton Development, included in our Resort Residential Development Segment. | |
Crescent Tower Residential, L.P.
|
Wholly-owned asset the Tower Residences and Regency Row at the Ritz-Carlton Development, included in our Resort Residential Development Segment. | |
Crescent Plaza Hotel Owner, L.P.
|
Wholly-owned asset the Ritz-Carlton Hotel Development, included in our Resort/Hotel Segment. | |
Houston Area Development Corp.
(HADC)
|
Non wholly-owned assets, consolidated Spring Lakes (98% interest), included in our Resort Residential Development Segment. | |
Desert Mountain Development Corporation (DMDC) |
Non wholly-owned asset, consolidated Desert Mountain (93% interest), included in our Resort Residential Development Segment. | |
Crescent Resort Development
Inc. (CRDI)(4)
|
Wholly-owned asset The Residences at Park Hyatt Beaver Creek, included in our Resort Residential Development Segment. | |
Non wholly-owned assets, consolidated Brownstones (64% interest), Creekside Townhomes at Riverfront Park (64% interest), Delgany (64% interest), One Riverfront (64% interest), Beaver Creek Landing (59% interest), Eagle Ranch (76% interest), Grays Crossing (71% interest), Main Street Vacation Club (30% interest), Northstar Highlands (57% interest), Northstar Village (57% interest), Old Greenwood (71% interest), Riverbend (68% interest), Village Walk (58% interest), Tahoe Mountain Club (71% interest) and Ritz-Carlton Highlands (71% interest), included in our Resort Residential Development Segment. | ||
Non wholly-owned assets, unconsolidated Blue River Land Company, LLC Three Peaks (33.2% interest), EW Deer Valley, LLC (35.7% interest) and East West Resort Development XIV, L.P., L.L.L.P. (26.8% interest), included in our Resort Residential Development Segment. |
(1) | We own 23.85% of the economic interest in Trammell Crow Center through our ownership of a 23.85% interest in the joint venture that holds fee simple title to the Office Property (subject to a ground lease and a leasehold estate regarding the building) and two mortgage notes encumbering the leasehold interests in the land and the building. | |
(2) | In addition, we own nine retail parcels located in Hughes Center. | |
(3) | Funding III owns nine of the ten office properties in the Greenway Plaza office portfolio and the Renaissance Houston Hotel; Funding IV owns the central heated and chilled water plant building located at Greenway Plaza; and Funding V owns 9 Greenway, the remaining office property in the Greenway Plaza office portfolio. | |
(4) | For non wholly-owned assets, we receive a preferred return on our invested capital and return of our capital before cash flows are allocated to the partners. |
| Office Segment; | ||
| Resort Residential Development Segment; | ||
| Resort/Hotel Segment; and | ||
| Temperature-Controlled Logistics Segment. |
80
| Office Segment consisted of 71 office properties, which we refer to as the Office Properties, located in 26 metropolitan submarkets in eight states, with an aggregate of approximately 27.6 million net rentable square feet. Fifty-four of the Office Properties are wholly-owned and 17 are owned through joint ventures, one of which is consolidated and 16 of which are unconsolidated. | ||
| Resort Residential Development Segment consisted of our ownership of common stock representing interests of 98% to 100% in four Resort Residential Development Corporations and two limited partnerships, which are consolidated. These Resort Residential Development Corporations, through partnership arrangements, owned in whole or in part, 30 active and planned upscale resort residential development properties, which we refer to as the Resort Residential Development Properties. | ||
| Resort/Hotel Segment consisted of five luxury and destination fitness resorts and spas with a total of 949 rooms/guest nights and three upscale business-class hotel properties with a total of 1,376 rooms, which we refer to as the Resort/Hotel Properties. Five of the Resort/Hotel Properties are wholly-owned, one is owned through a joint venture that is consolidated and two are owned through joint ventures that are unconsolidated. | ||
| Temperature-Controlled Logistics Segment consisted of our 31.7% interest in AmeriCold Realty Trust, or AmeriCold, a REIT. As of December 31, 2006, AmeriCold operated 104 facilities, of which 91 were wholly-owned or leased, one was partially-owned and 12 were managed for outside owners. The 92 owned or leased and partially-owned facilities, which we refer to as the Temperature-Controlled Logistics Properties, had an aggregate of approximately 497.8 million cubic feet (19.0 million square feet) of warehouse space. AmeriCold also owned one quarry and the related land. |
81
(dollars in thousands) | Accumulated (Deficit) | |||
Balance at December 31, 2003 (as previously reported) |
$ | (877,120 | ) | |
Effect of Calculation of Minority Interest |
4,969 | |||
Effect of Refundable fees for Club Member Services |
(4,063 | ) | ||
Effect of Classification of Club Membership Intangible Asset |
(3,476 | ) | ||
Balance at December 31, 2003 (Restated) |
$ | (879,690 | ) | |
82
For year ended December 31, 2005 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | |||||||||||||||||
Reported | Operations | Operations | Adjustments | As Restated | ||||||||||||||||
ASSETS: |
||||||||||||||||||||
Investments in real estate: |
||||||||||||||||||||
Land |
$ | 186,878 | $ | (3,650 | ) | $ | 183,228 | $ | | $ | 183,228 | |||||||||
Land improvements |
100,278 | | 100,278 | | 100,278 | |||||||||||||||
Accumulated Depreciation |
(29,784 | ) | | (29,784 | ) | | (29,784 | ) | ||||||||||||
Buildings and improvements |
2,245,064 | (54,305 | ) | 2,190,759 | | 2,190,759 | ||||||||||||||
Accumulated Depreciation |
(464,049 | ) | 7,421 | (456,628 | ) | | (456,628 | ) | ||||||||||||
Furniture, fixtures and equipment |
71,365 | (218 | ) | 71,147 | | 71,147 | ||||||||||||||
Accumulated Depreciation |
(34,129 | ) | | (34,129 | ) | | (34,129 | ) | ||||||||||||
Land held for investment or development |
574,527 | (61,487 | ) | 513,040 | | 513,040 | ||||||||||||||
Properties held for disposition, net |
4,137 | 114,068 | 118,205 | | 118,205 | |||||||||||||||
Net investment in real estate |
$ | 2,654,287 | $ | 1,829 | $ | 2,656,116 | $ | | 2,656,116 | |||||||||||
Cash and cash equivalents |
86,228 | | 86,228 | | 86,228 | |||||||||||||||
Restricted cash and cash equivalents |
84,699 | | 84,699 | | 84,699 | |||||||||||||||
Defeasance investments |
274,134 | | 274,134 | | 274,134 | |||||||||||||||
Accounts receivable, net |
56,356 | | 56,356 | | 56,356 | |||||||||||||||
Deferred rent receivable |
70,201 | (127 | ) | 70,074 | | 70,074 | ||||||||||||||
Investments in unconsolidated companies |
393,535 | | 393,535 | | 393,535 | |||||||||||||||
Notes receivable, net |
219,016 | | 219,016 | | 219,016 | |||||||||||||||
Income tax asset current and deferred |
8,291 | | 8,291 | 2,441 | 10,732 | |||||||||||||||
Other assets, net |
295,115 | (1,702 | ) | 293,413 | 18,953 | 312,366 | ||||||||||||||
Total assets |
$ | 4,141,862 | $ | | $ | 4,141,862 | $ | 21,394 | 4,163,256 | |||||||||||
LIABILITIES: |
||||||||||||||||||||
Borrowings under Credit Facility |
$ | 234,000 | $ | | $ | 234,000 | $ | | $ | 234,000 | ||||||||||
Notes
payable |
1,948,152 | (14,606 | ) | 1,933,546 | | 1,933,546 | ||||||||||||||
Notes
payable, accounts payable, accrued expenses and other liabilities, properties held for disposition |
| 19,306 | 19,306 | | 19,306 | |||||||||||||||
Junior subordinated notes |
77,321 | | 77,321 | | 77,321 | |||||||||||||||
Accounts payable, accrued expenses and other
liabilities |
471,920 | (4,700 | ) | 467,220 | 28,698 | 495,918 | ||||||||||||||
Income tax liability current and deferred |
1,093 | | 1,093 | (1,093 | ) | | ||||||||||||||
Total liabilities |
$ | 2,732,486 | $ | | $ | 2,732,486 | $ | 27,605 | 2,760,091 | |||||||||||
COMMITMENTS AND CONTINGENCIES |
||||||||||||||||||||
MINORITY INTERESTS: |
||||||||||||||||||||
Operating partnership units |
$ | 113,819 | $ | | $ | 113,819 | $ | (15,160 | ) | $ | 98,659 | |||||||||
Consolidated real estate partnerships |
53,562 | | 53,562 | (682 | ) | 52,880 | ||||||||||||||
Total minority interests |
$ | 167,381 | $ | | $ | 167,381 | $ | (15,842 | ) | 151,539 | ||||||||||
SHAREHOLDERS EQUITY: |
||||||||||||||||||||
Preferred shares: |
||||||||||||||||||||
Series A Convertible Cumulative Preferred
Shares |
$ | 319,166 | $ | | $ | 319,166 | $ | | $ | 319,166 | ||||||||||
Series B Cumulative Redeemable Preferred
Shares |
81,923 | | 81,923 | | 81,923 | |||||||||||||||
Common shares |
1,266 | | 1,266 | | 1,266 | |||||||||||||||
Additional paid-in capital |
2,271,888 | | 2,271,888 | | 2,271,888 | |||||||||||||||
Deferred compensation on restricted shares |
(1,182 | ) | | (1,182 | ) | | (1,182 | ) | ||||||||||||
Accumulated deficit |
(972,319 | ) | | (972,319 | ) | 9,631 | (962,688 | ) | ||||||||||||
Accumulated other comprehensive (loss) income |
1,385 | | 1,385 | | 1,385 | |||||||||||||||
$ | 1,702,127 | $ | | $ | 1,702,127 | $ | 9,631 | 1,711,758 | ||||||||||||
Less shares held in treasury |
(460,132 | ) | | (460,132 | ) | | (460,132 | ) | ||||||||||||
Total shareholders equity |
$ | 1,241,995 | $ | | $ | 1,241,995 | $ | 9,631 | 1,251,626 | |||||||||||
Total liabilities and shareholders equity |
$ | 4,141,862 | $ | | $ | 4,141,862 | $ | 21,394 | 4,163,256 | |||||||||||
83
For the year ended December 31, 2005 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
REVENUE: |
||||||||||||||||||||
Office Property |
$ | 377,337 | $ | (4,578 | ) | $ | 372,759 | $ | | $ | 372,759 | |||||||||
Resort Residential Development Property |
503,568 | | 503,568 | (845 | ) | 502,723 | ||||||||||||||
Resort/Hotel Property |
142,618 | | 142,618 | | 142,618 | |||||||||||||||
Total Property Revenue |
$ | 1,023,523 | $ | (4,578 | ) | $ | 1,018,945 | $ | (845 | ) | $ | 1,018,100 | ||||||||
EXPENSE: |
||||||||||||||||||||
Office Property real estate taxes |
$ | 39,195 | $ | (1,133 | ) | $ | 38,062 | $ | | $ | 38,062 | |||||||||
Office Property operating expenses |
160,077 | (2,358 | ) | 157,719 | | 157,719 | ||||||||||||||
Resort Residential Development Property expense |
432,620 | (6 | ) | 432,614 | (411 | ) | 432,203 | |||||||||||||
Resort/Hotel Property expense |
111,277 | | 111,277 | | 111,277 | |||||||||||||||
Total Property Expense |
$ | 743,169 | $ | (3,497 | ) | $ | 739,672 | $ | (411 | ) | $ | 739,261 | ||||||||
Income from Property Operations |
$ | 280,354 | $ | (1,081 | ) | $ | 279,273 | $ | (434 | ) | $ | 278,839 | ||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||||||
Income from sale of investment in unconsolidated company |
$ | 29,934 | $ | | $ | 29,934 | $ | | $ | 29,934 | ||||||||||
Income from investment land sales |
8,622 | | 8,622 | | 8,622 | |||||||||||||||
Loss on joint venture of properties |
(2,743 | ) | | (2,743 | ) | | (2,743 | ) | ||||||||||||
Interest and other income |
29,250 | | 29,250 | | 29,250 | |||||||||||||||
Corporate general and administrative |
(50,363 | ) | | (50,363 | ) | | (50,363 | ) | ||||||||||||
Interest expense |
(136,664 | ) | | (136,664 | ) | | (136,664 | ) | ||||||||||||
Amortization of deferred financing costs |
(8,108 | ) | | (8,108 | ) | | (8,108 | ) | ||||||||||||
Extinguishment of debt |
(2,161 | ) | | (2,161 | ) | | (2,161 | ) | ||||||||||||
Depreciation and amortization |
(146,173 | ) | 1,389 | (144,784 | ) | 3,418 | (141,366 | ) | ||||||||||||
Impairment charges related to real estate assets |
(1,047 | ) | 1,047 | | | | ||||||||||||||
Other expenses |
(3,964 | ) | | (3,964 | ) | | (3,964 | ) | ||||||||||||
Equity in net income (loss) of unconsolidated companies: |
||||||||||||||||||||
Office Properties |
11,464 | | 11,464 | | 11,464 | |||||||||||||||
Resort Residential Development Properties |
(491 | ) | | (491 | ) | | (491 | ) | ||||||||||||
Resort/Hotel Properties |
(1,541 | ) | | (1,541 | ) | | (1,541 | ) | ||||||||||||
Temperature-Controlled Logistics Properties |
234 | | 234 | | 234 | |||||||||||||||
Other |
17,885 | | 17,885 | | 17,885 | |||||||||||||||
Total other income (expense) |
$ | (255,866 | ) | $ | 2,436 | $ | (253,430 | ) | $ | 3,418 | $ | (250,012 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTERESTS
AND INCOME TAXES |
$ | 24,488 | $ | 1,355 | $ | 25,843 | $ | 2,984 | $ | 28,827 | ||||||||||
Minority interests |
(15,239 | ) | (204 | ) | (15,443 | ) | 4,376 | (11,067 | ) | |||||||||||
Income tax expense |
(7,378 | ) | (2 | ) | (7,380 | ) | (1,082 | ) | (8,462 | ) | ||||||||||
INCOME BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE EFFECT
OF A CHANGE IN ACCOUNTING PRINCIPLE |
$ | 1,871 | $ | 1,149 | $ | 3,020 | $ | 6,278 | $ | 9,298 | ||||||||||
Income from discontinued operations, net of minority
interests and taxes |
4,266 | (260 | ) | 4,006 | | 4,006 | ||||||||||||||
Impairment charges related to real estate assets from
discontinued operations, net of minority interests |
(64 | ) | (889 | ) | (953 | ) | | (953 | ) | |||||||||||
Gain on sale of real estate from discontinued
operations, net of minority interest |
89,234 | | 89,234 | | 89,234 | |||||||||||||||
NET INCOME |
$ | 95,307 | $ | | $ | 95,307 | $ | 6,278 | $ | 101,585 | ||||||||||
Series A Preferred Share distributions |
(23,963 | ) | | (23,963 | ) | | (23,963 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ | 63,269 | $ | | $ | 63,269 | $ | 6,278 | $ | 69,547 | ||||||||||
84
For the year ended December 31, 2005 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
BASIC EARNINGS PER SHARE DATA: |
||||||||||||||||||||
Loss available to
common shareholders before
discontinued operations and
cumulative effect of a change
in accounting principle |
$ | (0.30 | ) | $ | 0.01 | $ | (0.29 | ) | $ | 0.06 | $ | (0.23 | ) | |||||||
Income from discontinued
operations, net of minority
interests |
0.04 | | 0.04 | | 0.04 | |||||||||||||||
Impairment charges related to
real estate assets from
discontinued operations, net
of minority interests |
| (0.01 | ) | (0.01 | ) | | (0.01 | ) | ||||||||||||
Gain on sale of real estate
from discontinued operations,
net of minority interests |
0.89 | | 0.89 | | 0.89 | |||||||||||||||
Net income available
to common shareholders
basic |
$ | 0.63 | $ | | $ | 0.63 | $ | 0.06 | $ | 0.69 | ||||||||||
DILUTED EARNINGS PER SHARE DATA: |
||||||||||||||||||||
Loss available to
common shareholders before
discontinued operations and
cumulative effect of a change
in accounting principle |
$ | (0.30 | ) | $ | 0.01 | $ | (0.29 | ) | $ | 0.06 | $ | (0.23 | ) | |||||||
Income from discontinued
operations, net of minority
interests |
0.04 | | 0.04 | | 0.04 | |||||||||||||||
Impairment charges related to
real estate assets from
discontinued operations, net
of minority interests |
| (0.01 | ) | (0.01 | ) | | (0.01 | ) | ||||||||||||
Gain on sale of real estate
from discontinued operations,
net of minority interests |
0.89 | | 0.89 | | 0.89 | |||||||||||||||
Net income available
to common shareholders
diluted |
$ | 0.63 | $ | | $ | 0.63 | $ | 0.06 | $ | 0.69 | ||||||||||
85
For year ended December 31, 2004 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
REVENUE: |
||||||||||||||||||||
Office Property |
$ | 481,710 | $ | (5,913 | ) | $ | 475,797 | $ | | $ | 475,797 | |||||||||
Resort Residential Development Property |
311,197 | | 311,197 | (1,252 | ) | 309,945 | ||||||||||||||
Resort/Hotel Property |
214,531 | | 214,531 | | 214,531 | |||||||||||||||
Total Property Revenue |
$ | 1,007,438 | $ | (5,913 | ) | $ | 1,001,525 | $ | (1,252 | ) | $ | 1,000,273 | ||||||||
EXPENSE: |
||||||||||||||||||||
Office Property real estate taxes |
$ | 58,776 | $ | (1,383 | ) | $ | 57,393 | $ | | $ | 57,393 | |||||||||
Office Property operating expenses |
179,413 | (2,645 | ) | 176,768 | | 176,768 | ||||||||||||||
Resort Residential Development Property expense |
271,819 | (52 | ) | 271,767 | (457 | ) | 271,310 | |||||||||||||
Resort/Hotel Property expense |
179,825 | | 179,825 | | 179,825 | |||||||||||||||
Total Property Expense |
$ | 689,833 | $ | (4,080 | ) | $ | 685,753 | $ | (457) | $ | 685,296 | |||||||||
Income from Property Operations |
$ | 317,605 | $ | (1,833 | ) | $ | 315,772 | $ | (795) | $ | 314,977 | |||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||||||
Income from investment land sales |
$ | 18,879 | $ | | $ | 18,879 | $ | | $ | 18,879 | ||||||||||
Gain on joint venture of properties |
265,772 | | 265,772 | | 265,772 | |||||||||||||||
Interest and other income |
18,005 | | 18,005 | | 18,005 | |||||||||||||||
Corporate general and administrative |
(38,889 | ) | | (38,889 | ) | | (38,889 | ) | ||||||||||||
Interest expense |
(176,771 | ) | | (176,771 | ) | | (176,771 | ) | ||||||||||||
Amortization of deferred financing costs |
(13,056 | ) | | (13,056 | ) | | (13,056 | ) | ||||||||||||
Extinguishment of debt |
(42,608 | ) | | (42,608 | ) | | (42,608 | ) | ||||||||||||
Depreciation and amortization |
(164,056 | ) | 1,084 | (162,972 | ) | 3,074 | (159,898 | ) | ||||||||||||
Impairment charges related to real estate assets |
(4,094 | ) | | (4,094 | ) | | (4,094 | ) | ||||||||||||
Other expenses |
(725 | ) | | (725 | ) | | (725 | ) | ||||||||||||
Equity in net income (loss) of unconsolidated
companies: |
||||||||||||||||||||
Office Properties |
6,262 | | 6,262 | | 6,262 | |||||||||||||||
Resort Residential Development Properties |
(2,266 | ) | | (2,266 | ) | | (2,266 | ) | ||||||||||||
Resort/Hotel Properties |
(245 | ) | | (245 | ) | | (245 | ) | ||||||||||||
Temperature-Controlled Logistics Properties |
6,153 | | 6,153 | | 6,153 | |||||||||||||||
Other |
(280 | ) | | (280 | ) | | (280 | ) | ||||||||||||
Total other income (expense) |
$ | (127,919 | ) | $ | 1,084 | $ | (126,835 | ) | $ | 3,074 | $ | (123,761 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY
INTERESTS AND INCOME TAXES |
$ | 189,686 | $ | (749 | ) | $ | 188,937 | $ | 2,279 | $ | 191,216 | |||||||||
Minority interests |
(37,294 | ) | 117 | (37,177 | ) | 4,471 | (32,706 | ) | ||||||||||||
Income tax benefit (expense) |
13,078 | (20 | ) | 13,058 | (827 | ) | 12,231 | |||||||||||||
INCOME BEFORE DISCONTINUED OPERATIONS AND CUMULATIVE
EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE |
$ | 165,470 | $ | (652 | ) | $ | 164,818 | $ | 5,923 | $ | 170,741 | |||||||||
Income from discontinued operations, net of
minority interests and taxes |
9,755 | 652 | 10,407 | | 10,407 | |||||||||||||||
Impairment charges related to real estate assets
from discontinued operations, net of minority
interests |
(2,978 | ) | | (2,978 | ) | | (2,978 | ) | ||||||||||||
Gain on sale of real estate from discontinued
operations, net of minority interest and taxes |
1,052 | | 1,052 | | 1,052 | |||||||||||||||
Cumulative effect of a change in accounting
principle, net of minority interests |
(363 | ) | | (363 | ) | | (363 | ) | ||||||||||||
NET INCOME |
$ | 172,936 | $ | | $ | 172,936 | $ | 5,923 | $ | 178,859 | ||||||||||
Series A Preferred Share distributions |
(23,723 | ) | | (23,723 | ) | | (23,723 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ | 141,138 | $ | | $ | 141,138 | $ | 5,923 | $ | 147,061 | ||||||||||
86
For the year ended December 31, 2004 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
BASIC EARNINGS PER SHARE DATA: |
||||||||||||||||||||
Income available to common
shareholders before
discontinued operations and
cumulative effect of a change
in accounting principle |
$ | 1.35 | $ | (0.01 | ) | $ | 1.34 | $ | 0.06 | $ | 1.40 | |||||||||
Income from discontinued
operations, net of minority
interests and taxes |
0.10 | 0.01 | 0.11 | | 0.11 | |||||||||||||||
Impairment charges related to
real estate assets from
discontinued operations, net
of minority interests |
(0.03 | ) | | (0.03 | ) | | (0.03 | ) | ||||||||||||
Gain on sale of real estate
from discontinued operations,
net of minority interests and
taxes |
0.01 | | 0.01 | | 0.01 | |||||||||||||||
Net income available
to common shareholders -
basic |
$ | 1.43 | $ | | $ | 1.43 | $ | 0.06 | $ | 1.49 | ||||||||||
DILUTED EARNINGS PER SHARE DATA: |
||||||||||||||||||||
Income available to common
shareholders before
discontinued operations and
cumulative effect of a change
in accounting principle |
$ | 1.34 | $ | | $ | 1.34 | $ | 0.06 | $ | 1.40 | ||||||||||
Income from discontinued
operations, net of minority
interests and taxes |
0.10 | | 0.10 | | 0.10 | |||||||||||||||
Impairment charges related to
real estate assets from
discontinued operations, net
of minority interests |
(0.03 | ) | | (0.03 | ) | | (0.03 | ) | ||||||||||||
Gain on sale of real estate
from discontinued operations,
net of minority interests and
taxes |
0.01 | | 0.01 | | 0.01 | |||||||||||||||
Net income available
to common shareholders -
diluted |
$ | 1.42 | $ | | $ | 1.42 | $ | 0.06 | $ | 1.48 | ||||||||||
87
For year ended December 31, 2005 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
with | ||||||||||||||||||||
As Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||||||||
Net income |
$ | 95,307 | $ | | $ | 95,307 | $ | 6,278 | $ | 101,585 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation and amortization |
156,870 | | 156,870 | (3,418 | ) | 153,452 | ||||||||||||||
Extinguishment of debt |
2,271 | | 2,271 | | 2,271 | |||||||||||||||
Resort Residential Development cost of sales |
311,050 | | 311,050 | | 311,050 | |||||||||||||||
Resort Residential Development capital expenditures |
(356,603 | ) | | (356,603 | ) | | (356,603 | ) | ||||||||||||
Impairment charges related to real estate assets |
1,122 | | 1,122 | | 1,122 | |||||||||||||||
Income from investment land sales |
(8,622 | ) | | (8,622 | ) | | (8,622 | ) | ||||||||||||
Loss on joint venture of properties, net |
2,743 | | 2,743 | | 2,743 | |||||||||||||||
Gain on property sales, net |
(105,258 | ) | | (105,258 | ) | | (105,258 | ) | ||||||||||||
Income from sale of investment in unconsolidated company |
(29,934 | ) | | (29,934 | ) | | (29,934 | ) | ||||||||||||
Minority interests |
31,870 | | 31,870 | (4,376 | ) | 27,494 | ||||||||||||||
Non-cash compensation |
13,236 | | 13,236 | | 13,236 | |||||||||||||||
Amortization of debt premiums |
(2,452 | ) | | (2,452 | ) | | (2,452 | ) | ||||||||||||
Equity in earnings from unconsolidated companies |
(27,551 | ) | | (27,551 | ) | | (27,551 | ) | ||||||||||||
Ownership portion of management fees from unconsolidated companies |
6,609 | | 6,609 | | 6,609 | |||||||||||||||
Distributions received from unconsolidated companies |
30,992 | | 30,992 | | 30,992 | |||||||||||||||
Change in assets and liabilities, net of effect of consolidations, acquisitions and dispositions: |
||||||||||||||||||||
Restricted cash and cash equivalents |
(1,626 | ) | | (1,626 | ) | | (1,626 | ) | ||||||||||||
Accounts receivable and notes receivable |
886 | | 886 | | 886 | |||||||||||||||
Deferred rent receivable |
(14,562 | ) | | (14,562 | ) | | (14,562 | ) | ||||||||||||
Income tax
asset -current and deferred, net |
5,548 | | 5,548 | 2,175 | 7,723 | |||||||||||||||
Other assets |
(25,580 | ) | | (25,580 | ) | 2,411 | (23,169 | ) | ||||||||||||
Accounts payable, accrued expenses and other liabilities |
53,313 | | 53,313 | (3,070 | ) | 50,243 | ||||||||||||||
Net cash provided by operating activities |
$ | 139,629 | $ | | $ | 139,629 | $ | | $ | 139,629 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||||||||||
Proceeds from property sales |
$ | 236,725 | $ | | $ | 236,725 | $ | | $ | 236,725 | ||||||||||
Proceeds from sale of investment in unconsolidated company and related property sales |
32,237 | | 32,237 | | 32,237 | |||||||||||||||
Proceeds from joint venture partners |
144,193 | | 144,193 | | 144,193 | |||||||||||||||
Acquisition of investment properties |
(192,154 | ) | | (192,154 | ) | | (192,154 | ) | ||||||||||||
Development of investment properties |
(83,961 | ) | | (83,961 | ) | | (83,961 | ) | ||||||||||||
Property improvements Office Properties |
(20,131 | ) | | (20,131 | ) | | (20,131 | ) | ||||||||||||
Property improvements Resort/Hotel Properties |
(4,707 | ) | | (4,707 | ) | | (4,707 | ) | ||||||||||||
Tenant improvement and leasing costs Office Properties |
(65,540 | ) | | (65,540 | ) | | (65,540 | ) | ||||||||||||
Resort Residential Development Properties investments |
(32,876 | ) | | (32,876 | ) | | (32,876 | ) | ||||||||||||
Increase in restricted cash and cash equivalents |
(4,531 | ) | | (4,531 | ) | | (4,531 | ) | ||||||||||||
Purchases of defeasance investments and other securities |
(115,710 | ) | | (115,710 | ) | | (115,710 | ) | ||||||||||||
Proceeds from defeasance investment maturities and other securities |
23,273 | | 23,273 | | 23,273 | |||||||||||||||
Return of investment in unconsolidated companies |
18,785 | | 18,785 | | 18,785 | |||||||||||||||
Investment in unconsolidated companies |
(17,118 | ) | | (17,118 | ) | | (17,118 | ) | ||||||||||||
Increase in notes receivable |
(116,843 | ) | | (116,843 | ) | | (116,843 | ) | ||||||||||||
Net cash used in investing activities |
$ | (198,358 | ) | $ | | $ | (198,358 | ) | $ | | $ | (198,358 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||||||||
Debt financing costs |
$ | (15,659 | ) | $ | | $ | (15,659 | ) | $ | | $ | (15,659 | ) | |||||||
Borrowings under Credit Facility |
758,300 | | 758,300 | | 758,300 | |||||||||||||||
Payments under Credit Facility |
(666,800 | ) | | (666,800 | ) | | (666,800 | ) | ||||||||||||
Notes payable proceeds |
387,200 | | 387,200 | | 387,200 | |||||||||||||||
Notes payable payments |
(346,968 | ) | | (346,968 | ) | | (346,968 | ) | ||||||||||||
Junior subordinated notes |
77,321 | | 77,321 | | 77,321 | |||||||||||||||
Resort Residential Development Properties note payable borrowings |
257,411 | | 257,411 | | 257,411 | |||||||||||||||
Resort Residential Development Properties note payable payments |
(198,540 | ) | | (198,540 | ) | | (198,540 | ) | ||||||||||||
Capital distributions to joint venture partner |
(18,516 | ) | | (18,516 | ) | | (18,516 | ) | ||||||||||||
Capital contributions from joint venture partner |
7,834 | | 7,834 | | 7,834 | |||||||||||||||
Proceeds from exercise of share and unit options |
21,995 | | 21,995 | | 21,995 | |||||||||||||||
Reissuance of Treasury Shares |
16 | | 16 | | 16 | |||||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | | (23,963 | ) | | (23,963 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
Dividends and unitholder distributions |
(178,890 | ) | | (178,890 | ) | | (178,890 | ) | ||||||||||||
Net cash provided by financing activities |
$ | 52,666 | $ | | $ | 52,666 | $ | | $ | 52,666 | ||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS |
$ | (6,063 | ) | $ | | $ | (6,063 | ) | $ | | $ | (6,063 | ) | |||||||
CASH AND CASH EQUIVALENTS, Beginning of period |
92,291 | | 92,291 | | 92,291 | |||||||||||||||
CASH AND CASH EQUIVALENTS, End of period |
$ | 86,228 | $ | | $ | 86,228 | $ | | $ | 86,228 | ||||||||||
88
For year ended December 31, 2004 | ||||||||||||||||||||
As Reported | ||||||||||||||||||||
As | with | |||||||||||||||||||
Previously | Discontinued | Discontinued | Restatement | As | ||||||||||||||||
Reported | Operations | Operations | Adjustments | Restated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||||||||
Net income |
$ | 172,936 | $ | | $ | 172,936 | $ | 5,923 | $ | 178,859 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||||||
Depreciation and amortization |
183,873 | | 183,873 | (3,074 | ) | 180,799 | ||||||||||||||
Extinguishment of debt |
6,459 | | 6,459 | | 6,459 | |||||||||||||||
Resort Residential Development cost of sales |
161,853 | | 161,853 | | 161,853 | |||||||||||||||
Resort Residential Development capital expenditures |
(202,767 | ) | | (202,767 | ) | | (202,767 | ) | ||||||||||||
Impairment charges related to real estate assets |
7,605 | | 7,605 | | 7,605 | |||||||||||||||
Income from investment land sales |
(18,879 | ) | | (18,879 | ) | | (18,879 | ) | ||||||||||||
Gain on joint venture of properties |
(265,772 | ) | | (265,772 | ) | | (265,772 | ) | ||||||||||||
Gain on
property sales, net |
(1,241 | ) | | (1,241 | ) | | (1,241 | ) | ||||||||||||
Minority interests |
38,688 | | 38,688 | (4,471 | ) | 34,217 | ||||||||||||||
Cumulative effect of a change in accounting principle, net of minority interests |
363 | | 363 | | 363 | |||||||||||||||
Non-cash compensation |
1,737 | | 1,737 | | 1,737 | |||||||||||||||
Amortization of debt premiums |
(2,386 | ) | | (2,386 | ) | | (2,386 | ) | ||||||||||||
Equity in earnings from unconsolidated companies |
(9,624 | ) | | (9,624 | ) | | (9,624 | ) | ||||||||||||
Ownership portion of management fees from unconsolidated companies |
1,833 | | 1,833 | | 1,833 | |||||||||||||||
Distributions received from unconsolidated companies |
7,982 | | 7,982 | | 7,982 | |||||||||||||||
Change in assets and liabilities, net of effect of consolidations, acquisitions and dispositions: |
||||||||||||||||||||
Restricted cash and cash equivalents |
54,889 | | 54,889 | | 54,889 | |||||||||||||||
Accounts receivable and notes receivable |
(17,924 | ) | | (17,924 | ) | | (17,924 | ) | ||||||||||||
Deferred rent receivable |
(16,246 | ) | | (16,246 | ) | | (16,246 | ) | ||||||||||||
Income tax
asset -current and deferred, net |
(21,657 | ) | | (21,657 | ) | 827 | (20,830 | ) | ||||||||||||
Other assets |
(23,983 | ) | | (23,983 | ) | 1,098 | (22,885 | ) | ||||||||||||
Accounts payable, accrued expenses and other liabilities |
34,828 | | 34,828 | (303 | ) | 34,525 | ||||||||||||||
Net cash provided by operating activities |
$ | 92,567 | $ | | $ | 92,567 | $ | | $ | 92,567 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||||||||||
Net cash impact of consolidation of previously unconsolidated entities |
$ | 334 | $ | | $ | 334 | $ | | $ | 334 | ||||||||||
Proceeds from property sales |
174,881 | | 174,881 | | 174,881 | |||||||||||||||
Proceeds from sale of investment in unconsolidated company and related property sales |
3,229 | | 3,229 | | 3,229 | |||||||||||||||
Proceeds from joint venture partners |
1,028,913 | | 1,028,913 | | 1,028,913 | |||||||||||||||
Acquisition of investment properties |
(381,672 | ) | | (381,672 | ) | | (381,672 | ) | ||||||||||||
Development of investment properties |
(7,089 | ) | | (7,089 | ) | | (7,089 | ) | ||||||||||||
Property improvements Office Properties |
(14,297 | ) | | (14,297 | ) | | (14,297 | ) | ||||||||||||
Property improvements Resort/Hotel Properties |
(27,739 | ) | | (27,739 | ) | | (27,739 | ) | ||||||||||||
Tenant improvement and leasing costs Office Properties |
(92,876 | ) | | (92,876 | ) | | (92,876 | ) | ||||||||||||
Resort Residential Development Properties investments |
(35,428 | ) | | (35,428 | ) | | (35,428 | ) | ||||||||||||
Decrease in restricted cash and cash equivalents |
75,395 | | 75,395 | | 75,395 | |||||||||||||||
Purchases of defeasance investments and other securities |
(203,643 | ) | | (203,643 | ) | | (203,643 | ) | ||||||||||||
Proceeds from defeasance investment maturities and other securities |
14,560 | | 14,560 | | 14,560 | |||||||||||||||
Return of investment in unconsolidated companies |
129,693 | | 129,693 | | 129,693 | |||||||||||||||
Investment in unconsolidated companies |
(19,047 | ) | | (19,047 | ) | | (19,047 | ) | ||||||||||||
Increase in notes receivable |
(15,230 | ) | | (15,230 | ) | | (15,230 | ) | ||||||||||||
Net cash provided by investing activities |
$ | 629,984 | $ | | $ | 629,984 | $ | | $ | 629,984 | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||||||||||
Debt financing costs |
$ | (12,918 | ) | $ | | $ | (12,918 | ) | $ | | $ | (12,918 | ) | |||||||
Borrowings under Credit Facility |
530,000 | | 530,000 | | 530,000 | |||||||||||||||
Payments under Credit Facility |
(626,500 | ) | | (626,500 | ) | | (626,500 | ) | ||||||||||||
Notes payable proceeds |
577,146 | | 577,146 | | 577,146 | |||||||||||||||
Notes payable payments |
(1,027,661 | ) | | (1,027,661 | ) | | (1,027,661 | ) | ||||||||||||
Resort Residential Development Properties note payable borrowings |
111,672 | | 111,672 | | 111,672 | |||||||||||||||
Resort Residential Development Properties note payable payments |
(118,495 | ) | | (118,495 | ) | | (118,495 | ) | ||||||||||||
Capital distributions to joint venture partner |
(8,565 | ) | | (8,565 | ) | | (8,565 | ) | ||||||||||||
Capital contributions from joint venture partner |
2,833 | | 2,833 | | 2,833 | |||||||||||||||
Proceeds from exercise of share and unit options |
829 | | 829 | | 829 | |||||||||||||||
Issuance of preferred shares-Series A |
71,006 | | 71,006 | | 71,006 | |||||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | | (23,963 | ) | | (23,963 | ) | ||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | | (8,075 | ) | | (8,075 | ) | ||||||||||||
Dividends and unitholder distributions |
(175,621 | ) | | (175,621 | ) | | (175,621 | ) | ||||||||||||
Net cash used in financing activities |
$ | (708,312 | ) | $ | | $ | (708,312 | ) | $ | | $ | (708,312 | ) | |||||||
INCREASE IN CASH AND CASH EQUIVALENTS |
$ | 14,239 | $ | | $ | 14,239 | $ | | $ | 14,239 | ||||||||||
CASH AND CASH EQUIVALENTS, Beginning of period |
78,052 | | 78,052 | | 78,052 | |||||||||||||||
CASH AND CASH EQUIVALENTS, End of period |
$ | 92,291 | $ | | $ | 92,291 | $ | | $ | 92,291 | ||||||||||
89
90
91
92
Buildings and Improvements
|
2 to 46 years | |
Tenant Improvements
|
Terms of leases, which approximates the useful life of the asset | |
Furniture, Fixtures and Equipment
|
2 to 5 years |
93
94
95
96
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
(Restated) | (Restated) | |||||||||||||||||||||||||||||||||||
Wtd. | Per | Wtd. | Per | Wtd. | Per | |||||||||||||||||||||||||||||||
Income | Avg. | Share | Income | Avg. | Share | Income | Avg. | Share | ||||||||||||||||||||||||||||
(in thousands, except per share amounts) | (Loss) | Shares | Amount | (Loss) | Shares | Amount | (Loss) | Shares | Amount | |||||||||||||||||||||||||||
Basic EPS - |
||||||||||||||||||||||||||||||||||||
Income before discontinued operations
and cumulative effect of a change in
accounting principle |
$ | 19,678 | 102,055 | $ | 9,298 | 100,179 | $ | 170,741 | 99,025 | |||||||||||||||||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | (23,723 | ) | ||||||||||||||||||||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | (8,075 | ) | ||||||||||||||||||||||||||||||
(Loss) income available to common shareholders
before discontinued operations and cumulative
effect of a change in accounting principle |
$ | (12,360 | ) | 102,055 | $ | (0.12 | ) | $ | (22,740 | ) | 100,179 | $ | (0.23 | ) | 138,943 | 99,025 | $ | 1.40 | ||||||||||||||||||
(Loss) income from discontinued operations, net
of minority interests and taxes |
(502 | ) | (0.01 | ) | 4,006 | 0.04 | 10,407 | 0.11 | ||||||||||||||||||||||||||||
Impairment charges related to real estate
assets from discontinued operations, net of
minority interests |
(105 | ) | | (953 | ) | (0.01 | ) | (2,978 | ) | (0.03 | ) | |||||||||||||||||||||||||
Gain on sale of real estate from discontinued
operations, net of minority interests and
taxes |
14,362 | 0.14 | 89,234 | 0.89 | 1,052 | 0.01 | ||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting
principle, net of minority interests |
| | | | (363 | ) | | |||||||||||||||||||||||||||||
Net income available to common
shareholders |
$ | 1,395 | 102,055 | $ | 0.01 | $ | 69,547 | 100,179 | $ | 0.69 | $ | 147,061 | 99,025 | $ | 1.49 | |||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||||||||||||||
(Restated) | (Restated) | |||||||||||||||||||||||||||||||||||
Wtd. | Per | Wtd. | Per | Per | ||||||||||||||||||||||||||||||||
Income | Avg. | Share | Income | Avg. | Share | Income | Wtd. Avg. | Share | ||||||||||||||||||||||||||||
(in thousands, except per share amounts) | (Loss) | Shares | Amount | (Loss) | Shares | Amount | (Loss) | Shares | Amount | |||||||||||||||||||||||||||
Diluted EPS - |
||||||||||||||||||||||||||||||||||||
Income before discontinued operations
and cumulative effect of a change in
accounting principle |
$ | 19,678 | 102,055 | $ | 9,298 | 100,179 | $ | 170,741 | 99,025 | |||||||||||||||||||||||||||
Series A Preferred Share distributions |
(23,963 | ) | (23,963 | ) | (23,723 | ) | ||||||||||||||||||||||||||||||
Series B Preferred Share distributions |
(8,075 | ) | (8,075 | ) | (8,075 | ) | ||||||||||||||||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||||||||||||||
Share and unit options |
| (1) | | (1) | 219 | |||||||||||||||||||||||||||||||
(Loss) income available to common shareholders
before discontinued operations and cumulative
effect of a change in accounting principle |
$ | (12,360 | ) | 102,055 | $ | (0.12 | ) | $ | (22,740 | ) | 100,179 | $ | (0.23 | ) | $ | 138,943 | 99,244 | $ | 1.40 | |||||||||||||||||
(Loss) income from discontinued operations, net
of minority interests and taxes |
(502 | ) | (0.01 | ) | 4,006 | 0.04 | 10,407 | 0.10 | ||||||||||||||||||||||||||||
Impairment charges related to real estate
assets from discontinued operations, net of
minority interests |
(105 | ) | | (953 | ) | (0.01 | ) | (2,978 | ) | (0.03 | ) | |||||||||||||||||||||||||
Gain on sale of real estate from discontinued
operations, net of minority interests and
taxes |
14,362 | 0.14 | 89,234 | 0.89 | 1,052 | 0.01 | ||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting
principle, net of minority interests |
| | | | (363 | ) | | |||||||||||||||||||||||||||||
Net income available to common
shareholders |
$ | 1,395 | 102,055 | $ | 0.01 | $ | 69,547 | 100,179 | $ | 0.69 | $ | 147,061 | 99,244 | $ | 1.48 | |||||||||||||||||||||
(1) | Share and unit options (in common share equivalents) of 1,463,992 and 824,019 for the years ended December 31, 2006 and 2005, respectively, are not included because the effect of their conversion would be antidilutive to loss available to common shareholders before discontinued operations and cumulative effect of a change in accounting principle. |
97
Supplemental disclosures of cash flow information: | For the years ended December 31, | |||||||||||
(in thousands) | 2006 | 2005 | 2004 | |||||||||
Cash paid for interest |
$ | 156,694 | $ | 160,918 | $ | 169,056 | ||||||
Cash (received) paid for income taxes |
$ | (853 | ) | $ | 738 | $ | 8,364 | |||||
Interest capitalized Resort Residential Development |
$ | 25,068 | $ | 20,017 | $ | 15,556 | ||||||
Interest capitalized Resort/Hotel |
3,195 | 898 | 294 | |||||||||
Interest capitalized Office |
5,418 | 1,017 | | |||||||||
Total interest capitalized |
$ | 33,681 | $ | 21,932 | $ | 15,850 | ||||||
Supplemental schedule of non cash activities: |
||||||||||||
Joint venture of Office Properties debt |
$ | | $ | 158,350 | $ | | ||||||
Assumption of debt in conjunction with acquisitions of Office Properties |
23,605 | | 139,807 | |||||||||
Financed sale of land parcel |
| | 4,878 | |||||||||
Financed purchase of land parcel |
| | 7,500 | |||||||||
Satisfaction of debt in conjunction with disposition of properties |
81,792 | | | |||||||||
Interest
accrued into construction loans |
12,467 | | | |||||||||
Supplemental schedule of 2004 consolidation of Elijah: |
||||||||||||
Accounts receivable, net |
$ | (848 | ) | |||||||||
Investments in unconsolidated companies |
(2,478 | ) | ||||||||||
Notes receivable, net |
4,363 | |||||||||||
Income tax asset current and deferred, net |
(274 | ) | ||||||||||
Minority interest consolidated real estate partnerships |
(140 | ) | ||||||||||
Other comprehensive income, net of tax |
139 | |||||||||||
Cumulative effect of a change in accounting principle |
(428 | ) | ||||||||||
Increase in cash |
$ | 334 | ||||||||||
| Net Income (Loss) determined in accordance with GAAP; | ||
| excluding gains (losses) from sales of depreciable operating property; | ||
| excluding extraordinary items (as defined by GAAP); | ||
| plus depreciation and amortization of real estate assets; and | ||
| after adjustments for unconsolidated partnerships and joint ventures. |
98
For the year ended December 31, 2006 | ||||||||||||||||||||||||
Resort | Temperature- | |||||||||||||||||||||||
Residential | Controlled | |||||||||||||||||||||||
Office | Development | Resort/Hotel | Logistics | Corporate | ||||||||||||||||||||
(in thousands) | Segment(1) | Segment | Segment | Segment | and Other(2) | Total | ||||||||||||||||||
Total Property revenue |
$ | 414,343 | $ | 372,148 | $ | 142,205 | $ | | $ | | $ | 928,696 | ||||||||||||
Total Property expense |
206,563 | 342,994 | 108,391 | | 76 | 658,024 | ||||||||||||||||||
Income from Property Operations |
$ | 207,780 | $ | 29,154 | $ | 33,814 | $ | | $ | (76 | ) | $ | 270,672 | |||||||||||
Total other income (expense) |
(53,585 | ) | (15,100 | ) | (22,797 | ) | (15,668 | ) | (144,658 | ) | (251,808 | ) | ||||||||||||
Minority interests and income taxes |
(3,072 | ) | 1,967 | 4,048 | | (2,129 | ) | 814 | ||||||||||||||||
Discontinued operations -income, gain on real estate and impairment
charges related to real estate assets, net of minority interests and
taxes |
10,830 | 6,552 | | | (3,627 | ) | 13,755 | |||||||||||||||||
Net income (loss) |
$ | 161,953 | $ | 22,573 | $ | 15,065 | $ | (15,668 | ) | $ | (150,490 | ) | $ | 33,433 | ||||||||||
Depreciation and amortization of real estate assets |
$ | 105,997 | $ | 9,830 | $ | 16,312 | $ | | $ | | $ | 132,139 | ||||||||||||
Gain on property sales |
(25,206 | ) | (3,282 | ) | | | (359 | ) | (28,847 | ) | ||||||||||||||
Gain from sale of development operating property |
(10,138 | ) | (6,083 | ) | | | | (16,221 | ) | |||||||||||||||
Gain from promoted interest |
(22,575 | ) | | | | | (22,575 | ) | ||||||||||||||||
Adjustments for investment in unconsolidated companies |
21,217 | (10,616 | ) | 4,773 | 17,917 | | 33,291 | |||||||||||||||||
Unitholder minority interest and taxes |
| | | | 266 | 266 | ||||||||||||||||||
Series A Preferred share distributions |
| | | | (23,963 | ) | (23,963 | ) | ||||||||||||||||
Series B Preferred share distributions |
| | | | (8,075 | ) | (8,075 | ) | ||||||||||||||||
Adjustments to reconcile net income (loss) to funds from operations
available to common shareholders diluted |
$ | 69,295 | $ | (10,151 | ) | $ | 21,085 | $ | 17,917 | $ | (32,131 | ) | $ | 66,015 | ||||||||||
Funds from operations available to common shareholders-diluted |
$ | 231,248 | $ | 12,422 | $ | 36,150 | $ | 2,249 | $ | (182,621 | ) | $ | 99,448 | |||||||||||
For the year ended December 31, 2005 (Restated) | ||||||||||||||||||||||||
Resort | Temperature- | |||||||||||||||||||||||
Residential | Controlled | |||||||||||||||||||||||
Office | Development | Resort/Hotel | Logistics | Corporate | ||||||||||||||||||||
(in thousands) | Segment(1) | Segment | Segment | Segment | and Other | Total | ||||||||||||||||||
Total Property revenue |
$ | 372,759 | $ | 502,723 | $ | 142,618 | $ | | $ | | $ | 1,018,100 | ||||||||||||
Total Property expense |
195,781 | 432,203 | 111,277 | | | 739,261 | ||||||||||||||||||
Income from Property Operations |
$ | 176,978 | $ | 70,520 | $ | 31,341 | $ | | $ | | $ | 278,839 | ||||||||||||
Total other income (expense) |
(65,271 | ) | (14,208 | ) | (20,603 | ) | 234 | (150,164 | ) | (250,012 | ) | |||||||||||||
Minority interests and income taxes |
(4,058 | ) | (14,692 | ) | 1,941 | | (2,720 | ) | (19,529 | ) | ||||||||||||||
Discontinued operations -income, gain on real estate and impairment
charges related to real estate assets, net of minority interests and
taxes |
108,557 | (4 | ) | | | (16,266 | ) | 92,287 | ||||||||||||||||
Net income (loss) |
$ | 216,206 | $ | 41,616 | $ | 12,679 | $ | 234 | $ | (169,150 | ) | $ | 101,585 | |||||||||||
Depreciation and amortization of real estate assets |
$ | 103,958 | $ | 9,413 | $ | 18,021 | $ | | $ | | $ | 131,392 | ||||||||||||
Gain on property sales |
(102,373 | ) | | (141 | ) | | (289 | ) | (102,803 | ) | ||||||||||||||
Gain from sale of development operating property |
(13,369 | ) | | | | | (13,369 | ) | ||||||||||||||||
Gain from promoted interest |
(13,579 | ) | | | | | (13,579 | ) | ||||||||||||||||
Adjustments for investment in unconsolidated companies |
18,872 | (5,543 | ) | 3,881 | 18,210 | | 35,420 | |||||||||||||||||
Unitholder minority interest |
| | | | 12,379 | 12,379 | ||||||||||||||||||
Series A Preferred share distributions |
| | | | (23,963 | ) | (23,963 | ) | ||||||||||||||||
Series B Preferred share distributions |
| | | | (8,075 | ) | (8,075 | ) | ||||||||||||||||
Adjustments to reconcile net income (loss) to funds from operations
available to common shareholders diluted |
$ | (6,491 | ) | $ | 3,870 | $ | 21,761 | $ | 18,210 | $ | (19,948 | ) | $ | 17,402 | ||||||||||
Funds from operations available to common shareholders-diluted |
$ | 209,715 | $ | 45,486 | $ | 34,440 | $ | 18,444 | $ | (189,098 | ) | $ | 118,987 | |||||||||||
99
For the year ended December 31, 2004 (Restated) | ||||||||||||||||||||||||
Resort | Temperature- | |||||||||||||||||||||||
Residential | Controlled | |||||||||||||||||||||||
Office | Development | Resort/Hotel | Logistics | Corporate | ||||||||||||||||||||
(in thousands) | Segment(1) | Segment | Segment | Segment | and Other(2) | Total | ||||||||||||||||||
Total Property revenue |
$ | 475,797 | $ | 309,945 | $ | 214,531 | $ | | $ | | $ | 1,000,273 | ||||||||||||
Total Property expense |
234,161 | 271,310 | 179,825 | | | 685,296 | ||||||||||||||||||
Income from Property Operations |
$ | 241,636 | $ | 38,635 | $ | 34,706 | $ | | $ | | $ | 314,977 | ||||||||||||
Total other income (expense) |
149,072 | (14,753 | ) | (24,777 | ) | 6,153 | (239,456 | ) | (123,761 | ) | ||||||||||||||
Minority interests and income taxes |
(1,789 | ) | (1,710 | ) | 8,306 | | (25,282 | ) | (20,475 | ) | ||||||||||||||
Discontinued operations income, gain on real
estate and impairment charges related to real
estate assets, net of minority interests |
3,908 | (126 | ) | 7,177 | | (2,478 | ) | 8,481 | ||||||||||||||||
Cumulative effect of a change in accounting
principle, net of minority interests |
| | | | (363 | ) | (363 | ) | ||||||||||||||||
Net income (loss) |
$ | 392,827 | $ | 22,046 | $ | 25,412 | $ | 6,153 | $ | (267,579 | ) | $ | 178,859 | |||||||||||
Depreciation and amortization of real estate assets |
$ | 124,857 | $ | 8,078 | $ | 23,775 | $ | | $ | 56 | $ | 156,766 | ||||||||||||
(Gain) loss on property sales |
(263,308 | ) | 115 | (4,209 | ) | | 349 | (267,053 | ) | |||||||||||||||
Adjustments for investment in unconsolidated companies |
11,601 | (242 | ) | | 22,549 | | 33,908 | |||||||||||||||||
Unitholder minority interest |
| | | | 26,319 | 26,319 | ||||||||||||||||||
Series A Preferred share distributions |
| | | | (23,723 | ) | (23,723 | ) | ||||||||||||||||
Series B Preferred share distributions |
| | | | (8,075 | ) | (8,075 | ) | ||||||||||||||||
Adjustments to reconcile net (loss) income to funds from
operations available to common shareholders diluted |
$ | (126,850 | ) | $ | 7,951 | $ | 19,566 | $ | 22,549 | $ | (5,074 | ) | $ | (81,858 | ) | |||||||||
Funds from
operations available to common shareholdersdiluted |
$ | 265,977 | $ | 29,997 | $ | 44,978 | $ | 28,702 | $ | (272,653 | ) | $ | 97,001 | |||||||||||
Resort | Temperature- | |||||||||||||||||||||||
Residential | Controlled | Corporate | ||||||||||||||||||||||
Office | Development | Resort/Hotel | Logistics | and | ||||||||||||||||||||
(in millions) | Segment | Segment | Segment | Segment | Other | Total | ||||||||||||||||||
Total Assets by Segment: (3) |
||||||||||||||||||||||||
Balance at December 31, 2006(4) |
$ | 2,019 | $ | 1,146 | $ | 380 | $ | 87 | $ | 415 | (5) | $ | 4,047 | |||||||||||
Balance at December 31, 2005(4) (Restated) |
2,024 | 985 | 340 | 162 | 652 | (5) | 4,163 | |||||||||||||||||
Consolidated Property Level Financing: |
||||||||||||||||||||||||
Balance at December 31, 2006 |
(968 | ) | (220 | ) | (142 | ) | | (966 | ) (6) | (2,296 | ) | |||||||||||||
Balance at December 31, 2005 |
(851 | ) | (143 | ) | (59 | ) | | (1,206 | ) (6) | (2,259 | ) | |||||||||||||
Consolidated Other Liabilities: |
||||||||||||||||||||||||
Balance at December 31, 2006 |
(134 | ) | (308 | ) | (32 | ) | | (29 | ) | (503 | ) | |||||||||||||
Balance at December 31, 2005 (Restated) |
(116 | ) | (310 | ) | (30 | ) | | (44 | ) | (500 | ) | |||||||||||||
Minority Interests: |
||||||||||||||||||||||||
Balance at December 31, 2006 |
(12 | ) | (32 | ) | (5 | ) | | (77 | ) | (126 | ) | |||||||||||||
Balance at December 31, 2005 (Restated) |
(15 | ) | (32 | ) | (6 | ) | | (99 | ) | (152 | ) |
(1) | The property revenue includes lease termination fees (net of the write-off of deferred rent receivables) of approximately $39.3 million, $11.2 million and $9.0 million for the years ended December 31, 2006, 2005 and 2004, respectively. The 2006 lease termination fees are primarily due to the El Paso lease termination and related re-leasing. | |
(2) | For purposes of this Note, Corporate and Other includes the total of: income from investment land sales, net, interest and other income, corporate general and administrative expense, interest expense, extinguishment of debt, other expenses and equity in net income of unconsolidated companies-other. | |
(3) | Total assets by segment are inclusive of investments in unconsolidated companies. | |
(4) | Non-income producing land held for investment or development of $75.6 million and $84.4 million at December 31, 2006 and 2005, respectively, by segment is as follows: Office $7.0 million and $24.3 million, Resort Residential Development $9.6 million and $9.6 million, Resort/Hotel $7.3 million and $7.3 million and Corporate $51.7 million and $43.2 million, respectively. | |
(5) | Includes mezzanine notes and defeasance investments. | |
(6) | Inclusive of Corporate bonds, Credit Facility, Junior Subordinated Notes, the Morgan Stanley and Goldman Sachs repurchase facilities, the Funding I defeased debt and Nomura Funding VI defeased debt. Balance at December 31, 2005 also includes Funding II defeased debt. |
100
Date | Purchase | |||||||
(in millions) | Property | Location | Price | |||||
2006 |
||||||||
January 23, 2006 |
Financial Plaza Class A Office Property | Phoenix, Arizona | $ | 55.0 | (1) | |||
2005 |
||||||||
February 7, 2005 |
Exchange Building Class A Office Property | Seattle, Washington | $ | 52.5 | (2) | |||
April 8, 2005 |
One Buckhead Plaza Class A Office Property | Atlanta, Georgia | 130.5 | (3) |
(1) | The acquisition was funded by the assumption of a $23.6 million loan from Allstate, a new $15.9 million loan from Allstate and a draw on our credit facility. This property is wholly-owned. | |
(2) | The acquisition was funded by a draw on our credit facility. | |
(3) | The acquisition was funded by an $85.0 million loan from Morgan Stanley and a draw on our credit facility. In June 2005, we contributed One Buckhead Plaza to Crescent One Buckhead Plaza, L.P., a limited partnership in which we have a 35% interest and Metzler US Real Estate Fund L.P. has a 65% interest. |
101
Net | ||||||||||||||||
Net | Gain | |||||||||||||||
(in millions) Date | Property | Location | Proceeds | Impairment | (Loss) (1) | |||||||||||
2006 |
||||||||||||||||
February 17, 2006 |
Waterside Commons | Dallas, Texas | $ | 24.8 | (2) | $ | 1.0 | (3) | $ | 0.1 | ||||||
2005 |
||||||||||||||||
February 7, 2005 |
Albuquerque Plaza | Albuquerque, New Mexico | $ | 34.7 | (4) | $ | | $ | 1.4 | |||||||
August 16, 2005 |
Barton Oaks Plaza One | Austin, Texas | 14.4 | (4) | | 4.5 | ||||||||||
September 19, 2005 |
Chancellor Park | San Diego, California | 55.4 | (4) | | 27.0 | ||||||||||
September 28, 2005 |
Two Renaissance Square | Phoenix, Arizona | 116.8 | (4) | | 57.2 | ||||||||||
2004 |
||||||||||||||||
March 23, 2004 |
1800 West Loop South | Houston, Texas | 28.2 | (2) | 13.9 | (5) | 0.2 | |||||||||
April 13, 2004 |
Liberty Plaza | Dallas, Texas | 10.8 | (2) | 3.6 | (5) | (0.2 | ) | ||||||||
June 17, 2004 |
Ptarmigan Place | Denver, Colorado | 25.3 | (4) | 0.5 | (6) | (2.0 | ) | ||||||||
June 29, 2004 |
Addison Tower | Dallas, Texas | 8.8 | (2) | | 0.2 | ||||||||||
July 2, 2004 |
5050 Quorum | Dallas, Texas | 8.9 | (2) | 0.8 | (6) | (0.1 | ) | ||||||||
July 29, 2004 |
12404 Park Central | Dallas, Texas | 9.3 | (4) | 4.0 | (7) | |
(1) | Amounts are net of Operating Partnership minority interests. | |
(2) | Proceeds were used primarily to pay down our credit facility. | |
(3) | Impairment was recognized during the year ended December 31, 2005. | |
(4) | Proceeds were used to pay down a portion of the Bank of America Fund XII Term Loan. | |
(5) | Impairment was recognized during the year ended December 31, 2003. | |
(6) | Impairment was recognized during the year ended December 31, 2004. | |
(7) | Of the $4.0 million in impairment recorded, $2.9 million was recorded during the year ended December 31, 2003, and $1.1 million was recorded during the year ended December 31, 2004. |
102
(in thousands) | December 31, 2006 | December 31, 2005 | ||||||
Land |
$ | | $ | 24,650 | ||||
Buildings and improvements |
2,425 | 98,916 | ||||||
Furniture, fixtures and equipment |
| 218 | ||||||
Accumulated depreciation |
(25 | ) | (7,465 | ) | ||||
Other assets, net |
| 1,886 | ||||||
Net investment in real estate |
$ | 2,400 | $ | 118,205 | ||||
(in thousands) | December 31, 2006 | December 31, 2005 | ||||||
Notes payable |
$ | | $ | 14,606 | ||||
Accounts
payable, accrued expenses and other liabilities |
| 4,700 | ||||||
Total liabilities |
| 19,306 | ||||||
103
(in thousands) | 2006 | 2005 | 2004 | |||||||||
Total revenues |
$ | 2,445 | $ | 17,897 | $ | 50,515 | ||||||
Operating
and other expenses, net of non-unitholder minority interests |
(2,683 | ) | (9,218 | ) | (30,678 | ) | ||||||
Depreciation and amortization |
(1,002 | ) | (3,873 | ) | (7,846 | ) | ||||||
Income tax benefit (expense) |
642 | (86 | ) | 279 | ||||||||
Unitholder minority interests |
96 | (714 | ) | (1,863 | ) | |||||||
(Loss) income from discontinued
operations, net of minority
interests and taxes |
$ | (502 | ) | $ | 4,006 | $ | 10,407 | |||||
(in thousands) | 2006 | 2005 | 2004 | |||||||||
Impairment charges related to real estate assets |
$ | (125 | ) | $ | (1,122 | ) | $ | (3,511 | ) | |||
Unitholder minority interests |
20 | 169 | 533 | |||||||||
Impairment charges related to real estate
assets from discontinued operations, net of
minority interests |
$ | (105 | ) | $ | (953 | ) | $ | (2,978 | ) | |||
(in thousands) | 2006 | 2005 | 2004 | |||||||||
Realized gain on sale of properties, net of non-unitholder minority interests |
$ | 28,334 | $ | 105,117 | $ | 1,241 | ||||||
Income tax expense |
(11,232 | ) | | | ||||||||
Unitholder minority interests |
(2,740 | ) | (15,883 | ) | (189 | ) | ||||||
Gain on real estate from discontinued operations, net of minority
interests and taxes |
$ | 14,362 | $ | 89,234 | $ | 1,052 | ||||||
104
105
106
107
108
Net | ||||||||||
(dollars in millions) Date | Location | Proceeds | Net Gain | |||||||
2005 |
||||||||||
March 31, 2005 |
Houston, Texas | $ | 5.8 | (1) | $ | 3.5 | ||||
June 30, 2005 |
Houston, Texas | 6.1 | (1) | 4.1 | ||||||
2004 |
||||||||||
June 17, 2004 |
Denver, Colorado | $ | 2.9 | $ | 0.9 | |||||
August 16, 2004 |
Houston, Texas | 6.4 | (2) | 7.6 | ||||||
November 12, 2004 |
Monterey, California | 1.0 | 0.7 | |||||||
December 17, 2004 |
Houston, Texas | 22.3 | 8.3 | |||||||
December 23, 2004 |
Houston, Texas | 4.0 | 1.4 |
(1) | The proceeds were used primarily to pay down our credit facility. | |
(2) | In addition to the $6.4 million net cash proceeds, we also received a note receivable of $5.6 million. The note provides for payments of principal of $0.5 million due in December 2004, annual installments of $1.0 million each due August 2005 through August 2008 and $1.1 million due at maturity in August 2009 and does not bear interest. |
109
(in millions) | Balance at December | Interest Rate at | ||||||||||||||||||
Note | Date of Transaction | Maturity Date | 31, 2006 | December 31, 2006 | ||||||||||||||||
Fixed Rate: |
||||||||||||||||||||
Three Dallas Office Properties |
(1) | 8/31/05 | 2010 | $ | 7.6 | 11.04 | % | |||||||||||||
21 California Condominiums |
(2) | 12/28/06 | 2008 | 9.8 | (3) | 17.00 | % | |||||||||||||
Variable Rate: |
||||||||||||||||||||
Dallas Office Property |
(4) | 6/9/05 | 2007 | 12.0 | 13.85 | % | ||||||||||||||
Two Luxury
Hotel Properties in California |
(5) | 11/16/05 | 2007 | 15.0 | 16.35 | % | ||||||||||||||
Office Portfolio in Southeastern U.S. |
(6) | 12/30/05 | 2007 | 20.7 | 12.23 | % | ||||||||||||||
Florida Hotel Portfolio Investment |
(7) | 1/20/06 | 2009 | 15.0 | 13.35 | % | ||||||||||||||
California Ski Resort |
(8) | 4/12/06 | 2009 | 20.0 | 9.85 | % | ||||||||||||||
New York City Residential |
(9) | 5/8/06 | 2007 | 24.2 | 18.18 | % | ||||||||||||||
Total
Mezzanine Notes |
$ | 124.3 | ||||||||||||||||||
Total Weighted Average Interest Rate |
14.09 | % | ||||||||||||||||||
(1) | The loan has an interest-only term through September 2007. Beginning October 2007, the borrower must make principal payments based on a 30-year amortization schedule until maturity. We determined that the entity to which the loan was funded is a VIE under FIN 46R of which we are not the primary beneficiary; therefore, we do not consolidate the entity. Our maximum exposure to loss is limited to the amount of the loan. | |
(2) | The loan has an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to one six-month extension. | |
(3) | The condominiums securing this note were sold by CRDI to a third party. Due to restrictions under SFAS No. 66 Accounting for Sales of Real Estate regarding seller financed transactions, the profit from the sale of $4.7 million was deferred and recorded under the cost recovery method and reflected as a reduction of the note such that the face value of the note is included in the table above. | |
(4) | The loan bears interest at LIBOR plus 850 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to three one-year extension options. | |
(5) | The loan bears interest at LIBOR plus 1,100 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to five one-year extension options. | |
(6) | The loan bears interest at LIBOR plus 685 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to three one-year extension options. | |
(7) | The loan bears interest at LIBOR plus 800 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. | |
(8) | The loan bears interest at LIBOR plus 450 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. | |
(9) | The loan bears interest at LIBOR plus 1,283 basis points with an interest-only term until maturity, subject to the right of the borrower to extend the loan pursuant to two one-year extension options. We determined that the entity to which the loan was funded is a VIE under FIN 46R of which we are not the primary beneficiary; therefore, we do not consolidate the entity. Our maximum exposure to loss is limited to the amount of the loan. |
110
111
Our Ownership | ||||||||||
as of | ||||||||||
Entity | Classification | December 31, 2006 | ||||||||
Crescent Irvine, LLC |
Office (2211 Michelson Office Development Irvine) | 40.0 | % (1) | |||||||
Crescent Miami Center, LLC |
Office (Miami Center Miami) | 40.0 | % (2) (3) | |||||||
Crescent One Buckhead Plaza, L.P. |
Office (One Buckhead Plaza Atlanta) | 35.0 | % (4) (3) | |||||||
Crescent POC Investors, L.P. |
Office (Post Oak Central Houston) | 23.9 | % (5) (3) | |||||||
Crescent HC Investors, L.P. |
Office (Houston Center Houston) | 23.9 | % (5) (3) | |||||||
Crescent TC Investors, L.P. |
Office (The Crescent Dallas) | 23.9 | % (5) (3) | |||||||
Crescent Ross Avenue Mortgage Investors, L.P. |
Office (Trammell Crow Center, Mortgage Dallas) | 23.9 | % (6) (3) | |||||||
Crescent Ross Avenue Realty Investors, L.P. |
Office (Trammell Crow Center, Ground Lessor Dallas) | 23.9 | % (6) (3) | |||||||
Crescent Fountain Place, L.P. |
Office (Fountain Place Dallas) | 23.9 | % (6) (3) | |||||||
Crescent Five Post Oak Park L.P. |
Office (Five Post Oak Park Houston) | 30.0 | % (7) (3) | |||||||
Crescent One BriarLake Plaza, L.P. |
Office (One BriarLake Plaza Houston) | 30.0 | % (8) (3) | |||||||
Crescent 1301 McKinney, L.P. |
Office (Fulbright Tower Houston) | 23.9 | % (9) (3) | |||||||
AmeriCold Realty Trust |
Temperature-Controlled Logistics | 31.7 | % (10) | |||||||
CR Operating, LLC |
Resort/Hotel | 48.0 | % (11) | |||||||
CR Spa, LLC |
Resort/Hotel | 48.0 | % (11) | |||||||
East West Resort Development XIV, L.P., L.L.L.P. |
Resort Residential Development | 26.8 | % (12) | |||||||
Blue River Land Company, LLC |
Resort Residential Development | 33.2 | % (13) | |||||||
EW Deer Valley, LLC |
Resort Residential Development | 35.7 | % (14) | |||||||
SunTx Fulcrum Fund, L.P. (SunTx) |
Other | 26.5 | % (15) | |||||||
Redtail Capital Partners, L.P. (Redtail) |
Other | 25.0 | % (16) (3) | |||||||
Fresh Choice, LLC |
Other | 40.0 | % (17) | |||||||
G2 Opportunity Fund, L.P. (G2) |
Other | 12.5 | % (18) |
(1) | The remaining 60% interest is owned by an affiliate of Hines. | |
(2) | The remaining 60% interest is owned by an affiliate of a fund managed by JP Morgan Investment Management, Inc., or JPM. | |
(3) | We have negotiated performance based incentives, which we refer to as promoted interest, which allow for additional equity to be earned if return targets are exceeded. | |
(4) | The remaining 65% interest is owned by Metzler US Real Estate Fund, L.P. | |
(5) | Each limited partnership is owned by Crescent Big Tex I, L.P., which is owned 60% by a fund advised by JPM and 16.1% by affiliates of GE. | |
(6) | Each limited partnership is owned by Crescent Big Tex II, L.P., which is owned 76.1% by a fund advised by JPM. | |
(7) | The remaining 70% interest is owned by an affiliate of GE. |
|
(8) | The remaining 70% interest is owned by affiliates of JPM. | |
(9) | The partnership is owned by Crescent Big Tex III, L.P., which is owned 60% by a fund advised by JPM and 16.1% by affiliates of GE. | |
(10) | Of the remaining 68.3% interest, 47.6% is owned by Vornado and 20.7% is owned by The Yucaipa Companies. | |
(11) | The remaining 52% interest is owned by the founders of Canyon Ranch and their affiliates. CR Spa, LLC operates three resort spas which offer guest programs and services and sells Canyon Ranch branded skin care products exclusively at the destination health resorts and the resort spas. CR Operating, LLC operates and manages the two Canyon Ranch destination health resorts, Tucson and Lenox, and collaborates with select real estate developers in developing residential lifestyle communities. | |
(12) | We provided 41.9% of the initial capitalization and the venture is structured such that we own a 26.8% interest after we receive a preferred return on our invested capital and return of our capital. The remaining 73.2% economic interest is owned by parties unrelated to us. East West Resort Development XIV, L.P., L.L.L.P. was formed to co-develop a hotel and condominiums in Avon, Colorado. | |
(13) | The remaining 66.8% interest is owned by parties unrelated to us. Blue River Land Company, LLC was formed to acquire, develop and sell certain real estate property in Summit County, Colorado. | |
(14) | The remaining 64.3% interest is owned by parties unrelated to us. EW Deer Valley, LLC was formed to acquire, hold and dispose of its 3.3% ownership interest in Empire Mountain Village, L.L.C. Empire Mountain Village, LLC was formed to acquire, develop and sell certain real estate property at Deer Valley Ski Resort next to Park City, Utah. | |
(15) | Of the remaining 73.5%, approximately 42.5% is owned by SunTx Capital Partners, L.P. and the remaining 31.0% is owned by a group of individuals unrelated to us. Of our limited partnership interest in SunTx, 6.3% is through an unconsolidated investment in SunTx Capital Partners, L.P., the general partner of SunTx. SunTx Fulcrum Fund, L.P.s objective is to invest in a portfolio of entities that offer the potential for substantial capital appreciation. | |
(16) | The remaining 75% interest is owned by Capstead Mortgage Corporation. Redtail was formed to invest up to $100.0 million in equity in select mezzanine loans on commercial real estate over a two-year period. | |
(17) | The remaining 60% interest is owned by Cedarlane Natural Foods, Inc. Fresh Choice is a restaurant owner, operator and developer. | |
(18) | G2 was formed for the purpose of investing in commercial mortgage backed securities and other commercial real estate investments. The remaining 87.5% interest is owned by Goff-Moore Strategic Partners, L.P., or GMSPLP, and by parties unrelated to us. G2 is managed and controlled by an entity that is owned equally by GMSPLP and GMAC Commercial Mortgage Corporation, or GMACCM. The ownership structure of GMSPLP consists of an approximately 92% limited partnership interest owned directly and indirectly by Richard E. Rainwater, Chairman of our Board of Trust Managers, of which approximately 6% is owned by Darla Moore, who is married to Mr. Rainwater. Approximately 6% general partner interest is owned by John C. Goff, Vice-Chairman of our Board of Trust Managers and our Chief Executive Officer. The remaining approximately 2% general partnership interest is owned by unrelated parties. |
112
| Office This includes Crescent Big Tex I, L.P., Crescent Big Tex II, L.P., Crescent Irvine, LLC, Crescent Miami Center, LLC, Crescent Five Post Oak Park L.P., Crescent One BriarLake Plaza, L.P., Crescent Big Tex III, L.P. and Crescent One Buckhead Plaza, L.P.; | ||
| Temperature-Controlled Logistics This includes AmeriCold Realty Trust; | ||
| Resort/Hotel This includes CR Operating, LLC and CR Spa, LLC; | ||
| Resort Residential Development This includes East West Resort Development XIV, L.P., L.L.L.P., Blue River Land Company, LLC and EW Deer Valley, LLC; and | ||
| Other This includes SunTx, Redtail, Fresh Choice, LLC and G2. |
| Office This includes Crescent Big Tex I, L.P., Crescent Big Tex II, L.P., Main Street Partners, L.P., Crescent Irvine, LLC, Houston PT Three Westlake Office Limited Partnership, Houston PT Four Westlake Office Limited Partnership, Austin PT BK One Tower Office Limited Partnership, Crescent Miami Center, LLC, Crescent Five Post Oak Park L.P., Crescent One BriarLake Plaza, L.P., Crescent Big Tex III, L.P. and Crescent One Buckhead Plaza, L.P.; | ||
| Temperature-Controlled Logistics This includes AmeriCold Realty Trust; | ||
| Resort/Hotel This includes CR Operating, LLC and CR Spa, LLC ; | ||
| Resort Residential Development This includes Blue River Land Company, LLC and EW Deer Valley, LLC; and | ||
| Other This includes SunTx, Redtail, Fresh Choice, LLC and G2. |
113
| Office This includes Crescent Big Tex I, L.P., Crescent Big Tex II, L.P., Main Street Partners, L.P., Crescent Irvine, LLC, Houston PT Three Westlake Office Limited Partnership, Houston PT Four Westlake Office Limited Partnership, Austin PT BK One Tower Office Limited Partnership, Crescent Miami Center, LLC, Crescent Five Post Oak Park L.P., Crescent One BriarLake Plaza, L.P., Crescent Big Tex III, L.P. and Crescent One Buckhead Plaza, L.P.; | ||
| Temperature-Controlled Logistics This includes AmeriCold Realty Trust; | ||
| Resort/Hotel This includes CR Operating, LLC and CR Spa, LLC; | ||
| Resort Residential Development This includes East West Resort Development XIV, L.P., L.L.L.P., Blue River Land Company, LLC, and EW Deer Valley, LLC; and | ||
| Other This includes SunTx, Redtail, Fresh Choice, LLC and G2. |
| Office This includes Crescent Big Tex I, L.P., Crescent Big Tex II, L.P., Main Street Partners, L.P., Crescent Irvine, LLC, Houston PT Three Westlake Office Limited Partnership, Houston PT Four Westlake Office Limited Partnership, Austin PT BK One Tower Office Limited Partnership, Crescent 5 Houston Center, L.P., Crescent Miami Center, LLC, Crescent Five Post Oak Park L.P., Crescent One BriarLake Plaza, L.P., Crescent Big Tex III, L.P. and Crescent One Buckhead Plaza, L.P.; | ||
| Temperature-Controlled Logistics This includes AmeriCold Realty Trust; | ||
| Resort/Hotel This includes CR Operating, LLC and CR Spa, LLC; | ||
| Resort Residential Development This includes Blue River Land Company, LLC and EW Deer Valley, LLC; and | ||
| Other This includes SunTx, Redtail, Fresh Choice, LLC and G2. |
| Office This includes Crescent Big Tex I, L.P., Crescent Big Tex II, L.P., Main Street Partners, L.P., Houston PT Three Westlake Office Limited Partnership, Houston PT Four Westlake Office Limited Partnership, Austin PT BK One Tower Office Limited Partnership, Crescent 5 Houston Center, L.P., Crescent Miami Center, LLC, Crescent Five Post Oak Park L.P. and Crescent One BriarLake Plaza, L.P.; | ||
| Temperature-Controlled Logistics This includes AmeriCold Reality Trust, Vornado Crescent Portland Partnership and Vornado Crescent and KC Quarry, L.L.C.; | ||
| Resort/Hotel This includes CR License, L.L.C., CR License II, L.L.C. and Canyon Ranch Las Vegas, L.L.C.; | ||
| Resort Residential Development This includes Blue River Land Company, LLC and EW Deer Valley, LLC; and | ||
| Other This includes SunTx and G2. |
As of December 31, 2006 | ||||||||||||||||||||||||
Temperature- | Resort | |||||||||||||||||||||||
Controlled | Residential | |||||||||||||||||||||||
(in thousands) | Office | Logistics | Resort/Hotel | Development | Other | Total | ||||||||||||||||||
Real estate, net |
$ | 1,628,384 | $ | 1,211,120 | $ | 113,367 | $ | 39,349 | $ | 12,238 | ||||||||||||||
Cash |
71,167 | 92,672 | 32,986 | 9,183 | 2,649 | |||||||||||||||||||
Restricted cash |
18,113 | 8,984 | 224 | | 17,162 | |||||||||||||||||||
Other assets |
241,747 | 166,589 | 12,921 | 21,948 | 224,653 | |||||||||||||||||||
Total assets |
$ | 1,959,411 | $ | 1,479,365 | $ | 159,498 | $ | 70,480 | $ | 256,702 | ||||||||||||||
Notes payable |
$ | 1,061,171 | $ | 1,125,078 | $ | 95,000 | $ | 3,500 | $ | 49,862 | ||||||||||||||
Notes
payable to the Company |
| | | | 1,152 | |||||||||||||||||||
Other liabilities |
182,960 | 91,952 | 29,036 | 19,166 | 6,027 | |||||||||||||||||||
Preferred membership units |
| | 109,006 | | | |||||||||||||||||||
Equity |
715,280 | 262,335 | (73,544 | ) | 47,814 | 199,661 | ||||||||||||||||||
Total liabilities and equity |
$ | 1,959,411 | $ | 1,479,365 | $ | 159,498 | $ | 70,480 | $ | 256,702 | ||||||||||||||
Our share of unconsolidated debt |
$ | 287,911 | $ | 356,875 | $ | 45,600 | $ | 1,467 | $ | 13,745 | $ | 705,598 | ||||||||||||
Our investments in
unconsolidated companies |
$ | 115,990 | $ | 87,069 | $ | 1,036 | $ | 20,202 | $ | 56,573 | $ | 280,870 | ||||||||||||
114
As of December 31, 2005 | |||||||||||||||||||||||||||
Temperature- | Resort | ||||||||||||||||||||||||||
Controlled | Residential | ||||||||||||||||||||||||||
(in thousands) | Office | Logistics | Resort/Hotel | Development | Other | Total | |||||||||||||||||||||
Real estate, net |
$ | 1,944,942 | $ | 1,122,155 | $ | 108,943 | $ | 11,789 | $ | 13,077 | |||||||||||||||||
Cash |
71,361 | 25,418 | 52,100 | 920 | 5,875 | ||||||||||||||||||||||
Restricted cash |
36,121 | 61,367 | 217 | | 388 | ||||||||||||||||||||||
Other assets |
279,437 | 163,925 | 12,258 | 4,787 | 165,478 | ||||||||||||||||||||||
Total assets |
$ | 2,331,861 | $ | 1,372,865 | $ | 173,518 | $ | 17,496 | $ | 184,818 | |||||||||||||||||
Notes payable |
$ | 1,244,499 | $ | 765,640 | $ | 95,000 | $ | | $ | 34,566 | |||||||||||||||||
Notes payable to the Company |
| | | | 800 | ||||||||||||||||||||||
Other liabilities |
196,100 | 109,161 | 28,523 | 101 | 9,216 | ||||||||||||||||||||||
Preferred membership units |
| | 104,231 | | | ||||||||||||||||||||||
Equity |
891,262 | 498,064 | (54,236 | ) | 17,395 | 140,236 | |||||||||||||||||||||
Total liabilities and equity |
$ | 2,331,861 | $ | 1,372,865 | $ | 173,518 | $ | 17,496 | $ | 184,818 | |||||||||||||||||
Our share of unconsolidated debt |
$ | 348,663 | $ | 242,708 | $ | 45,600 | $ | | $ | 10,021 | $ | 646,992 | |||||||||||||||
Our investments in
unconsolidated companies |
$ | 178,440 | $ | 162,438 | $ | 6,200 | $ | 6,657 | $ | 39,800 | $ | 393,535 | |||||||||||||||
For the year ended December 31, 2006 | ||||||||||||||||||||||||
Temperature- | Resort | |||||||||||||||||||||||
Controlled | Residential | |||||||||||||||||||||||
(in thousands) | Office | Logistics(1) | Resort/Hotel | Development | Other | Total | ||||||||||||||||||
Total revenues |
$ | 337,476 | $ | 780,761 | $ | 145,166 | $ | 12,637 | $ | 58,358 | ||||||||||||||
Operating expense |
168,122 | 657,115 | 130,584 | 15,477 | 50,486 | |||||||||||||||||||
Net Operating Income |
$ | 169,354 | $ | 123,646 | $ | 14,582 | $ | (2,840 | ) | $ | 7,872 | |||||||||||||
Interest expense |
$ | 68,005 | $ | 81,890 | $ | 5,981 | $ | | $ | 3,011 | ||||||||||||||
Depreciation and amortization |
97,574 | 73,254 | 10,585 | | 2,102 | |||||||||||||||||||
Taxes and other (income) expense |
(3,325 | ) | (4,588 | ) | 2,139 | (440 | ) | (46,165 | ) | |||||||||||||||
Total expenses (income) |
$ | 162,254 | $ | 150,556 | $ | 18,705 | $ | (440 | ) | $ | (41,052 | ) | ||||||||||||
Gain on sale of assets |
102,727 | 2,164 | | | | |||||||||||||||||||
Preferred dividends |
| | (12,503 | ) | | | ||||||||||||||||||
Net income (loss) available to
common interests |
$ | 109,827 | $ | (24,746 | ) | $ | (16,626 | ) | $ | (2,400 | ) | $ | 48,924 | |||||||||||
Our equity in net income (loss)
of unconsolidated companies |
$ | 9,231 | $ | (15,669 | ) | $ | (5,109 | ) | $ | (355 | ) | $ | 12,157 | $ | 255 | |||||||||
(1) | In connection with the dissolution of Vornado Crescent Portland Partnership, we agreed to pay Vornado Realty, L.P. an annual management fee of $4.5 million, payable only out of dividends or sale proceeds on the shares of AmeriCold that we own, which is included in our share of equity in net income (loss) for Temperature-Controlled Logistics. |
115
For the year ended December 31, 2005 | ||||||||||||||||||||||||
Temperature- | Resort | |||||||||||||||||||||||
Controlled | Residential | |||||||||||||||||||||||
(in thousands) | Office | Logistics(1) | Resort/Hotel | Development | Other | Total | ||||||||||||||||||
Total revenues |
$ | 344,268 | $ | 846,881 | $ | 136,537 | $ | 8,553 | $ | 551 | ||||||||||||||
Operating expense |
160,187 | 699,701 | 115,002 | 3,671 | | |||||||||||||||||||
Net Operating Income |
$ | 184,081 | $ | 147,180 | $ | 21,535 | $ | 4,882 | $ | 551 | ||||||||||||||
Interest expense |
$ | 68,851 | $ | 56,273 | $ | 5,580 | $ | | $ | 255 | ||||||||||||||
Depreciation and amortization |
100,880 | 73,776 | 10,396 | | 89 | |||||||||||||||||||
Taxes and other (income) expense |
(899 | ) | 243 | 22 | (155 | ) | (99,089 | ) | ||||||||||||||||
Total
expenses (income) |
$ | 168,832 | $ | 130,292 | $ | 15,998 | $ | (155 | ) | $ | (98,745 | ) | ||||||||||||
Preferred dividends |
$ | | $ | | $ | (12,043 | ) | $ | | $ | | |||||||||||||
Net income (loss) available to
common interests |
$ | 15,249 | $ | 16,888 | $ | (6,506 | ) | $ | 5,037 | $ | 99,296 | |||||||||||||
Our equity in net income (loss)
of unconsolidated companies |
$ | 11,464 | $ | 234 | $ | (1,541 | ) | $ | (491 | ) | $ | 17,885 | (2) | $ | 27,551 | |||||||||
(1) | In connection with the dissolution of Vornado Crescent Portland Partnership, we agreed to pay Vornado Realty, L.P. an annual management fee of $4.5 million, payable only out of dividends or sale proceeds on the shares of AmeriCold that we own, which is included in our share of equity in net income (loss) for Temperature-Controlled Logistics. | |
(2) | Includes approximately $5.1 million of income recorded in the second quarter of 2005 resulting from an increase in 2004 actual results from previously estimated results related to SunTx. |
For the year ended December 31, 2004 | ||||||||||||||||||||||||
Temperature- | Resort | |||||||||||||||||||||||
Controlled | Residential | |||||||||||||||||||||||
(in thousands) | Office | Logistics | Resort/Hotel | Development | Other | Total | ||||||||||||||||||
Total revenues |
$ | 156,670 | $ | 223,990 | $ | 34,249 | $ | 3,981 | $ | | ||||||||||||||
Operating expense |
77,684 | 121,935 | (1) | 29,748 | 5,331 | | ||||||||||||||||||
Net Operating Income |
$ | 78,986 | $ | 102,055 | $ | 4,501 | $ | (1,350 | ) | $ | | |||||||||||||
Interest expense |
$ | 34,368 | $ | 52,069 | $ | 12 | $ | | $ | | ||||||||||||||
Depreciation and amortization |
35,916 | 59,813 | 750 | | | |||||||||||||||||||
Taxes and other (income) expense |
113 | 1,509 | | 94 | (23,904 | ) | ||||||||||||||||||
Total
expenses (income) |
$ | 70,397 | $ | 113,391 | $ | 762 | $ | 94 | $ | (23,904 | ) | |||||||||||||
Gain (loss) on sale of assets |
$ | | $ | 32,975 | $ | | | | ||||||||||||||||
Net income (loss) available to
common interests |
$ | 8,589 | $ | 21,639 | $ | 3,739 | $ | (1,444 | ) | $ | 23,904 | |||||||||||||
Our equity in net income (loss)
of unconsolidated companies |
$ | 6,262 | $ | 6,153 | $ | (245 | ) | $ | (2,266 | ) | $ | (280 | )(2) | $ | 9,624 | |||||||||
(1) | Inclusive of the preferred return paid to Vornado (1% per annum of the total combined assets through November 18, 2004). | |
(2) | Does not include approximately $5.1 million of income recorded in the second quarter 2005 resulting from an increase in 2004 actual results from previously estimated results related to SunTx. |
116
Balance | Our Share of | |||||||||||||||
Outstanding at | Balance at | |||||||||||||||
Our | December 31, | December 31, | Interest Rate at | |||||||||||||
Description | Ownership | 2006 | 2006 | December 31, 2006 | Maturity Date | Fixed/Variable (1) | ||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Temperature-Controlled Logistics Segment: |
||||||||||||||||
AmeriCold Realty Trust |
31.72% | |||||||||||||||
Deutsche Bank/JPMorgan Chase (2) |
$ | 350,000 | $ | 111,020 | 5.40% | 12/10/2015 | Fixed | |||||||||
Citigroup (3) |
325,000 | 103,090 | 5.46% | 12/10/2013 | Fixed | |||||||||||
UBS 1A (4) |
194,000 | 61,537 | 5.55% | 12/10/2016 | Fixed | |||||||||||
UBS 1B, 1C (5) |
181,000 | 57,413 | 5.43% | 12/10/2016 | Fixed | |||||||||||
Other |
75,078 | 23,815 | 3.48% to 22.53% | 6/15/2007 to 4/1/2017 | Fixed | |||||||||||
$ | 1,125,078 | $ | 356,875 | |||||||||||||
Office Segment: |
||||||||||||||||
Crescent HC Investors, L.P. |
23.85% | 269,705 | 64,325 | 5.03% | 11/7/2011 | Fixed | ||||||||||
Crescent TC Investors, L.P. |
23.85% | 214,770 | 51,223 | 5.00% | 11/1/2011 | Fixed | ||||||||||
Crescent Fountain Place, L.P. |
23.85% | 105,932 | 25,265 | 4.95% | 12/1/2011 | Fixed | ||||||||||
Crescent POC Investors, L.P. |
23.85% | 97,504 | 23,255 | 4.98% | 12/1/2011 | Fixed | ||||||||||
Crescent One Buckhead Plaza, L.P. |
35.00% | 85,000 | 29,750 | 5.47% | 4/8/2015 | Fixed | ||||||||||
Crescent Miami Center, LLC |
40.00% | 81,000 | 32,400 | 5.04% | 9/25/2007 | Fixed | ||||||||||
Crescent 1301 McKinney, L.P. (6) |
23.85% | 73,350 | 17,494 | 6.58% | 1/9/2008 | Variable | ||||||||||
Crescent One BriarLake Plaza, L.P. |
30.00% | 50,000 | 15,000 | 5.40% | 11/1/2010 | Fixed | ||||||||||
Crescent Five Post Oak Park, L.P. |
30.00% | 43,656 | 13,097 | 4.82% | 1/1/2008 | Fixed | ||||||||||
Crescent Irvine, LLC (7) |
40.00% | 40,254 | 16,102 | 8.10% | 3/7/2009 | Variable | ||||||||||
$ | 1,061,171 | $ | 287,911 | |||||||||||||
Resort/Hotel Segment: |
||||||||||||||||
CR Resort, LLC |
48.00% | |||||||||||||||
Bank of America |
$ | 95,000 | $ | 45,600 | 5.94% | 2/1/2015 | Fixed | |||||||||
Resort Residential Development Segment: |
||||||||||||||||
East West Resort Development XIV, L.P., L.L.L.P.(8) |
41.90% | |||||||||||||||
The Vail Corporation |
$ | 3,500 | $ | 1,467 | 5.00% | 4/28/2008 | Fixed | |||||||||
Other Segment: |
||||||||||||||||
Redtail Capital Partners One, LLC |
25.00% | |||||||||||||||
Morgan Stanley Bank (9) |
$ | 41,330 | $ | 10,333 | 7.14% | 8/9/2008 | Variable | |||||||||
Fresh Choice, LLC |
40.00% | |||||||||||||||
GE Capital Franchise Finance Corporation(10) |
4,276 | 1,710 | 10.07% | 1/1/2011 | Variable | |||||||||||
Various Loans and Capital Leases |
4,256 | 1,702 | 0.00% to 9.53% | 3/1/2007 to 12/31/2029 | Fixed | |||||||||||
$ | 49,862 | $ | 13,745 | |||||||||||||
Total Unconsolidated Debt |
$ | 2,334,611 | $ | 705,598 | ||||||||||||
Fixed Rate/Weighted Average |
5.41% | 7.01 years | ||||||||||||||
Variable Rate/Weighted Average |
7.37% | 1.70 years | ||||||||||||||
Total Weighted Average |
5.53% | 6.67 years |
(1) | All unconsolidated debt is secured. | |
(2) | The loan is a nine-year, interest-only financing that is collateralized by 20 of its Temperature-Controlled Logistics Properties. | |
(3) | The loan is a seven-year, interest-only financing that is collateralized by 15 of its Temperature-Controlled Logistics Properties. | |
(4) | The loan is a ten-year, interest-only financing that is collateralized by 4 of its Temperature-Controlled Logistics Properties. | |
(5) | The loan is a ten-year, interest-only financing that is collateralized by 11 of its Temperature-Controlled Logistics Properties. | |
(6) | On January 10, 2007, this loan was paid off and replaced with a new $89.0 million, five year, interest-only financing. | |
(7) | This loan has one two-year extension option. The loan bears interest at LIBOR plus 275 basis points. In May 2006, Crescent Irvine, LLC, entered into an interest rate swap agreement struck at 5.34%. | |
(8) | We provided 41.9% of the initial capitalization and the venture is structured such that we own a 26.8% interest after we receive a preferred return on our invested capital and return of our capital. | |
(9) | This loan has one one-year extension option. Redtail Capital Partners One, LLC is owned 100% by Redtail. The loans supporting this facility are subject to daily valuations by Morgan Stanley and we are subject to a margin call if the overall leverage exceeds certain thresholds. The loan bears interest as follows: $28.8 million at LIBOR plus 185 basis points and $12.5 million at LIBOR plus 170 basis points. | |
(10) | We guarantee $1.0 million of this loan. The loan bears interest at LIBOR plus 470 basis points. |
117
December 31, | ||||||||
2005 | ||||||||
(in thousands) | 2006 | (Restated) | ||||||
Leasing costs |
$ | 125,033 | $ | 112,607 | ||||
Goodwill |
40,469 | 40,469 | ||||||
Other intangibles |
51,417 | 50,147 | ||||||
Intangible office leases |
80,317 | 77,239 | ||||||
Deferred financing costs |
44,929 | 46,611 | ||||||
Prepaid expenses |
20,669 | 20,860 | ||||||
Marketable securities |
5,094 | 21,579 | ||||||
Other |
9,377 | 22,781 | ||||||
$ | 377,305 | $ | 392,293 | |||||
Less accumulated amortization |
(102,291 | ) | (79,927 | ) | ||||
$ | 275,014 | $ | 312,366 | |||||
December 31, | ||||||||
2005 | ||||||||
(in thousands) | 2006 | (Restated) | ||||||
Goodwill (included in other assets): |
||||||||
Resort Residential Development Segment: |
||||||||
Goodwill |
$ | 40,469 | $ | 40,469 | ||||
Identified intangible assets (included in other assets): |
||||||||
Resort Residential Development Segment: |
||||||||
Intangibles(1) |
$ | 51,417 | $ | 50,147 | ||||
Accumulated amortization |
(3,767 | ) | (2,852 | ) | ||||
Net intangibles |
$ | 47,650 | $ | 47,295 | ||||
Office Segment: |
||||||||
Intangibles(2) |
$ | 80,317 | $ | 77,239 | ||||
Accumulated amortization |
(22,973 | ) | (15,520 | ) | ||||
Net intangibles |
$ | 57,344 | $ | 61,719 | ||||
Identified intangible liabilities (included in accounts payable, accrued
expenses and other liabilities): |
||||||||
Office Segment: |
||||||||
Intangibles(3) |
$ | 10,938 | $ | 9,876 | ||||
Accumulated amortization |
(3,443 | ) | (2,026 | ) | ||||
Net intangibles |
$ | 7,495 | $ | 7,850 | ||||
(1) | Consists primarily of water rights. | |
(2) | Consists of acquired in-place leases and above market leases. Of these amounts, approximately $9.7 million and $8.5 million were acquired in the year ended December 31, 2006 and 2005, respectively. | |
(3) | Consists of acquired below market leases. Of these amounts, approximately $1.4 million and $4.5 million were acquired in the year ended December 31, 2006 and 2005, respectively. |
Estimated | ||||
(in thousands) | Annual Amortization | |||
2007 |
$ | 1,028 | ||
2008 |
137 | |||
2009 |
(118 | ) | ||
2010 |
(332 | ) | ||
2011 |
(299 | ) |
118
Resort | ||||||||||||
Residential | ||||||||||||
(in thousands) | Development | Office | Total | |||||||||
2007 |
$ | 936 | $ | 6,234 | $ | 7,170 | ||||||
2008 |
936 | 6,231 | 7,167 | |||||||||
2009 |
922 | 6,230 | 7,152 | |||||||||
2010 |
898 | 6,177 | 7,075 | |||||||||
2011 |
898 | 5,690 | 6,588 |
As of December 31, 2006 | As of December 31, 2005 | |||||||||||||||||||||||
(in thousands) | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Type of Security | Cost | Value | Gain/(Loss) | Cost | Value | Gain/(Loss) | ||||||||||||||||||
Held to maturity(1) |
$ | 115,371 | $ | 114,657 | $ | (714 | ) | $ | 274,134 | $ | 271,659 | $ | (2,475 | ) | ||||||||||
Trading(2) |
679 | 737 | N/A | 690 | 728 | N/A | ||||||||||||||||||
Available for sale |
| | | 20,284 | 20,852 | 568 | ||||||||||||||||||
Total |
$ | 116,050 | $ | 115,394 | $ | (714 | ) | $ | 295,108 | $ | 293,239 | $ | (1,907 | ) | ||||||||||
For the year ended | For the year ended | For the year ended | ||||||||||||||||||||||
December 31, 2006 | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||
(in thousands) | Realized | Change | Realized | Change | Realized | Change | ||||||||||||||||||
Type of Security | Gain/(Loss) | In OCI | Gain/(Loss) | In OCI | Gain/(Loss) | In OCI | ||||||||||||||||||
Held to maturity(1) |
$ | | N/A | $ | | N/A | $ | | $ | N/A | ||||||||||||||
Trading(2) |
53 | N/A | 139 | N/A | 1,149 | N/A | ||||||||||||||||||
Available for sale |
65 | (3) | (568 | ) | (19 | ) | (468 | ) | 6 | 1,036 | ||||||||||||||
Total |
$ | 118 | $ | (568 | ) | $ | 120 | $ | (468 | ) | $ | 1,155 | $ | 1,036 | ||||||||||
(1) | Held to maturity securities are carried at amortized cost and consist of $111.0 million of defeasance investments, included in Defeasance investments in the accompanying Consolidated Balance Sheets, which consist of U.S. Treasury and government sponsored agency securities purchased for the sole purpose of funding debt service payments on LaSalle Note I and the Nomura Funding VI Note and $4.4 million of bonds. In March 2006, the LaSalle Note II was paid off with the proceeds from maturities of defeasance investment securities. | |
(2) | Trading securities primarily consist of marketable securities purchased in connection with our dividend incentive unit program. These securities are included in Other assets, net in the accompanying Consolidated Balance Sheets and are marked to market value on a monthly basis with the change in fair value recognized in earnings. | |
(3) | We received approximately $20.5 million, inclusive of $0.4 million interest, during the year ended December 31, 2006 from the sale of these marketable securities. |
December 31, | ||||||||
2005 | ||||||||
(in thousands) | 2006 | (Restated) | ||||||
Accounts payable and accrued expenses |
$ | 236,305 | $ | 207,584 | ||||
Deferred revenue |
138,680 | 147,988 | ||||||
Resort Residential contract deposits |
53,189 | 70,491 | ||||||
Accrued property taxes |
36,434 | 34,180 | ||||||
Accrued interest |
21,862 | 21,109 | ||||||
Resort/Hotel deposits |
8,625 | 8,621 | ||||||
Office security deposits |
6,919 | 5,945 | ||||||
$ | 502,014 | $ | 495,918 | |||||
119
Interest Rate at | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
Secured | Maturity | |||||||||||||||||||
Description | Asset | 2006 | 2005 | Interest Rate | 2006 | 2005 | Date | |||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Secured Fixed Rate Debt: |
||||||||||||||||||||
AEGON Partnership Note (1) |
Greenway Plaza | $ | 242,290 | $ | 248,678 | 7.53% | July 2009 | |||||||||||||
Prudential Note |
707 17th Street/Denver Marriott | 70,000 | 70,000 | 5.22 | June 2010 | |||||||||||||||
JP Morgan Chase III |
Datran Center | 65,000 | 65,000 | 4.88 | October 2015 | |||||||||||||||
Bank of America Note I (2) |
Fairmont Sonoma Mission Inn | 55,000 | | 5.40 | February 2011 | |||||||||||||||
Morgan Stanley I |
The Alhambra | 50,000 | 50,000 | 5.06 | October 2011 | |||||||||||||||
Allstate Life Note |
Financial Plaza | 38,949 | | 5.47 | October 2010 | |||||||||||||||
Bank of America Note II (3) |
The BAC - Colonnade Building | 37,439 | 37,922 | 5.53 | May 2013 | |||||||||||||||
Metropolitan Life Note VII |
Dupont Centre | 35,500 | 35,500 | 4.31 | May 2011 | |||||||||||||||
Column Financial |
Peakview Tower | 33,000 | 33,000 | 5.59 | April 2015 | |||||||||||||||
Mass Mutual Note |
3800 Hughes | 32,203 | 34,177 | 7.75 | July 2007 | |||||||||||||||
Northwestern Life Note |
301 Congress | 26,000 | 26,000 | 4.94 | November 2008 | |||||||||||||||
JP Morgan Chase II |
3773 Hughes | 24,755 | 24,755 | 4.98 | September 2011 | |||||||||||||||
Allstate Note (4) |
3993 Hughes | 24,025 | 24,781 | 6.65 | September 2010 | |||||||||||||||
Metropolitan Life Note VI (4) |
3960 Hughes | 22,074 | 23,011 | 7.71 | October 2009 | |||||||||||||||
Construction, Acquisition and other obligations(4) |
Various Office and Resort Residential Assets | 40,690 | 36,526 | 2.90 to 13.75 | July 2007 to Dec. 2016 | |||||||||||||||
Secured Fixed Rate Defeased Debt (5): |
||||||||||||||||||||
LaSalle Note II |
Funding II Defeasance | | 155,188 | |||||||||||||||||
LaSalle Note I |
Funding I Defeasance | 100,017 | 101,723 | 7.83 | August 2007 | |||||||||||||||
Nomura Funding VI Note |
Funding VI Defeasance | 7,208 | 7,445 | 10.07 | July 2010 | |||||||||||||||
Subtotal/Weighted Average |
$ | 904,150 | $ | 973,706 | 6.38% | 6.71 | % | |||||||||||||
Unsecured Fixed Rate Debt: |
||||||||||||||||||||
The 2009 Notes (6) (7) |
$ | 375,000 | $ | 375,000 | 9.25% | April 2009 | ||||||||||||||
The 2007 Notes (6) |
250,000 | 250,000 | 7.50 | September 2007 | ||||||||||||||||
Subtotal/Weighted Average |
$ | 625,000 | $ | 625,000 | 8.55% | 8.55 | % | |||||||||||||
Secured Variable Rate Debt: |
||||||||||||||||||||
GACC Note (8) |
Funding One Assets | $ | 165,000 | $ | 165,000 | LIBOR + 147 bps | 6.82% | June 2007 | ||||||||||||
Morgan Stanley II (9) |
Mezzanine Investments | 22,311 | | LIBOR + 150 to 230 bps | 7.37 | March 2009 | ||||||||||||||
Goldman Sachs (9) |
Mezzanine Investments | 10,000 | | LIBOR + 140 bps | 6.72 | May 2009 | ||||||||||||||
KeyBank II |
Distributions from Funding III, IV & V | 75,000 | | LIBOR + 200 bps | 7.35 | June 2007 | ||||||||||||||
National Bank of Arizona (10) |
DMDC Assets | 15,654 | 6,157 | Prime + 50 bps | 8.75 | October 2007 | ||||||||||||||
Acquisition and other obligations |
Various Office and Other Assets | 13,416 | 23,650 | LIBOR + 128 to 131 bpsor Prime - 75 to 100 bps | 6.60 to 6.63 | Feb. 2008 to Dec. 2012 | ||||||||||||||
Secured Variable Rate Construction Debt: |
||||||||||||||||||||
KeyBank I (11) |
Ritz-Carlton Dallas Construction | 80,296 | 15,162 | LIBOR + 225 bps | 7.60% | July 2008 | ||||||||||||||
JP Morgan Chase (12) |
Northstar Big Horn Construction | 56,342 | 17,164 | Prime - 50 bps | 7.75 | October 2007 | ||||||||||||||
Societe Generale I (13) |
3883 Hughes Construction | 30,587 | 314 | LIBOR + 180 bps | 7.22 | September 2008 | ||||||||||||||
First Bank of Vail (14) |
Village Walk Construction | 14,041 | | Prime - 50 bps | 7.75 | February 2008 | ||||||||||||||
US Bank II (15) |
Northstar Trailside Construction | 1,991 | | LIBOR + 250 bps | 8.10 | March 2009 | ||||||||||||||
US Bank I (16) |
Beaver Creek Landing Construction | 16,446 | | Prime - 115 bps | 7.10 | February 2008 | ||||||||||||||
California Bank & Trust (17) |
One Riverfront Construction | 13,861 | | Prime + 12.5 bps | 8.38 | March 2008 | ||||||||||||||
JP Morgan Chase Bank (18) |
Old Greenwood Construction | 16,150 | 10,235 | Prime | 8.25 | March 2007 | ||||||||||||||
Construction,
acquisition and other obligations |
Various Office and Resort Residential Assets | 40,792 | 29,961 | LIBOR + 213 to 393 | 7.45 to 9.25 | June 2007 to Dec. 2010 | ||||||||||||||
Bank One |
Northstar Ironhorse Construction | | 42,671 | |||||||||||||||||
Bank One |
Jefferson Station Apts. Construction | | 24,526 | |||||||||||||||||
Guaranty Bank |
Paseo Del Mar Construction | | 14,606 | |||||||||||||||||
Subtotal/Weighted Average |
$ | 571,887 | $ | 349,446 | 7.39% | 6.43 | % | |||||||||||||
Unsecured Variable Rate Debt: |
||||||||||||||||||||
Credit Facility (19) |
$ | 118,000 | $ | 234,000 | LIBOR + 160 bps | 6.95% | February 2008 | |||||||||||||
Junior Subordinated Notes (20) |
51,547 | 51,547 | LIBOR + 200 bps | 7.38 | June 2035 | |||||||||||||||
Junior Subordinated Notes (20) |
25,774 | 25,774 | LIBOR + 200 bps | 7.38 | July 2035 | |||||||||||||||
Subtotal/Weighted Average |
$ | 195,321 | $ | 311,321 | 7.12% | 6.00 | % | |||||||||||||
Total/Weighted Average |
$ | 2,296,358 | $ | 2,259,473 | 7.29% | (21) | 7.08 | % | ||||||||||||
Average remaining term |
3.1 years |
120
(1) | The remaining outstanding balance of this note at maturity will be approximately $223.4 million. | |
(2) | Obtaining this loan was a reconsideration event under FIN 46R. We determined that the entity that operates Fairmont Sonoma Mission Inn is a VIE of which we are the primary beneficiary. This entity was previously consolidated under other GAAP; therefore there is no impact to our Consolidated Financial Statements. | |
(3) | The outstanding principal balance of this loan at maturity will be approximately $33.7 million. | |
(4) | We assumed these loans in connection with the Hughes Center properties acquisitions. The following table lists the unamortized premium associated with the assumption of above market interest rate debt which is included in the balance outstanding at December 31, 2006, the effective interest rate of the debt including the premium and the outstanding principal balance at maturity: |
(dollars in thousands) | Unamortized | Balance at | ||||||||||
Loan |
Premium | Effective Rate | Maturity | |||||||||
Northwestern |
$ | 173 | 3.80 | % | $ | 8,663 | ||||||
Allstate Note |
941 | 5.19 | % | 20,771 | ||||||||
Metropolitan Life Note VI |
1,098 | 5.68 | % | 19,239 | ||||||||
Total |
$ | 2,212 | $ | 48,673 | ||||||||
The premium was recorded as an increase in the carrying amount of the underlying debt and is being amortized using the effective interest rate method as a reduction of interest expense through maturity of the underlying debt. | ||
(5) | We purchased U.S. Treasuries and government sponsored agency securities, or defeasance investments, to substitute as collateral for these loans. The cash flow from defeasance investments (principal and interest) matches the debt service payment of the loans. | |
(6) | To incur any additional debt, the indenture requires us to meet thresholds for a number of customary financial and other covenants including maximum leverage ratios, minimum debt service coverage ratios, maximum secured debt as a percentage of total undepreciated assets, and ongoing maintenance of unencumbered assets. Additionally, as long as the 2009 Notes are not rated investment grade, there are restrictions on our ability to make certain payments, including distributions to shareholders and investments. | |
(7) | At our option, these notes can be called beginning in April 2007 for 102.3% and in April 2008 and thereafter for par. | |
(8) | This note consists of a $110.0 million senior loan at LIBOR plus 108 basis points, a $40.0 million first mezzanine loan at LIBOR plus 225 basis points and a $15.0 million second mezzanine loan at LIBOR plus 225 basis points. This note has three one-year extension options. | |
(9) | This loan has one one-year extension option. The loans supporting this facility are subject to daily valuations by Morgan Stanley and Goldman Sachs, respectively, and we are subject to a margin call if the overall leverage of the facility exceeds certain thresholds. | |
(10) | The maximum facility amount is $30.0 million. | |
(11) | The maximum facility amount is $169.0 million. This loan has three one-year extension options. | |
(12) | The maximum facility amount is $84.9 million. | |
(13) | The maximum facility amount is $52.3 million. This loan has two one-year extension options. The rate on this loan decreases to LIBOR plus 170 basis points when the following are met: 85% leased and 75% occupied. | |
(14) | The maximum facility amount is $41.8 million. |
|
(15) | The maximum facility amount is $36.0 million. | |
(16) | The maximum facility amount is $33.4 million. This loan has one six-month extension option. | |
(17) | The maximum facility amount is $27.5 million. This loan has one one-year extension option. The partners have committed to contribute up to an additional $17.1 million in capital should certain financial covenants not be maintained. | |
(18) | The maximum facility amount is $21.0 million. | |
(19) | Availability under the line of credit is subject to certain covenants including limitations on total leverage, fixed charge ratio, debt service coverage ratio, minimum tangible net worth, and a specific mix of office and hotel assets and average occupancy of Office Properties. At December 31, 2006, the maximum borrowing capacity under the credit facility was $366.8 million. The outstanding balance excludes letters of credit issued under our credit facility of $9.5 million which reduces our maximum borrowing capacity. The spread to LIBOR on this loan decreases to 150 basis points if we reduce leverage below 45% and it increases to 175 basis points if we exceed 55% leverage. | |
(20) | In 2005, we completed private offerings of $75.0 million of trust preferred securities through our trust subsidiaries. The securities are callable at no premium after June and July 2010. | |
(21) | The overall weighted average interest rate does not include the effect of our cash flow hedge agreements. Including the effect of these agreements, the overall weighted average interest rate would have been 7.27%. |
Weighted | ||||||||||||||||
Percentage | Average | Weighted Average | ||||||||||||||
(in thousands) | Balance | of Debt (1) | Rate | Maturity | ||||||||||||
Fixed Rate Debt |
$ | 1,529,150 | 66.6 | % | 7.27 | % | 2.8 years | |||||||||
Variable Rate Debt |
767,208 | 33.4 | 7.32 | 3.7 years | ||||||||||||
Total Debt |
$ | 2,296,358 | 100.0 | % | 7.29 | % (2) | 3.1 years | |||||||||
(1) | Balance excludes hedges. The percentages for fixed rate debt and variable rate debt, including the $287.6 million of hedged variable rate debt, are 79% and 21%, respectively. | |
(2) | Including the effect of hedge arrangements, the overall weighted average interest rate would have been 7.27%. |
121
Secured | Defeased | |||||||||||||||
(in thousands) | Debt | Debt | Unsecured Debt | Total (1) | ||||||||||||
2007 |
$ | 399,719 | $ | 100,279 | $ | 250,000 | $ | 749,998 | ||||||||
2008 |
234,290 | 289 | 118,000 | 352,579 | ||||||||||||
2009 |
280,489 | 320 | 375,000 | 655,809 | ||||||||||||
2010 |
134,043 | 6,337 | | 140,380 | ||||||||||||
2011 |
181,120 | | | 181,120 | ||||||||||||
Thereafter |
139,151 | | 77,321 | 216,472 | ||||||||||||
$ | 1,368,812 | $ | 107,225 | $ | 820,321 | $ | 2,296,358 | |||||||||
(1) | Based on contractual maturity and does not include extension options on Wells Fargo Bank Loan, Societe Generale Loan, KeyBank I Construction Loan, California Bank & Trust Loan, US Bank I Loan, Morgan Stanley II Loan, GACC Note or Goldman Sachs Loan. |
122
Additional | Change in | |||||||||||||||||||||||
Notional | Maturity | Reference | Fair Market | (Reduction) Interest | Unrealized Gains | |||||||||||||||||||
Effective Date | Amount | Date | Rate | Value | Expense | (Losses) in OCI | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Interest rate swaps |
||||||||||||||||||||||||
2/15/03 |
$ | 100,000 | 2/15/06 | 3.26 | % | $ | | $ | (147 | ) | $ | (138 | ) | |||||||||||
2/15/03 |
100,000 | 2/15/06 | 3.25 | % | | (148 | ) | (139 | ) | |||||||||||||||
9/02/03 |
200,000 | 9/01/06 | 3.72 | % | | (1,603 | ) | (1,264 | ) | |||||||||||||||
1/17/05 |
| 10/16/06 | 3.74 | % | | | (1) | (205 | ) | |||||||||||||||
4/25/06 |
79,761 | 12/26/07 | 5.20 | % | 3 | | (1) | 3 | ||||||||||||||||
9/29/06 |
200,000 | 9/4/07 | 5.20 | % | 56 | (66 | ) | 56 | ||||||||||||||||
$ | 59 | $ | (1,964 | ) | $ | (1,687 | ) | |||||||||||||||||
Interest rate caps |
||||||||||||||||||||||||
1/07/05 |
$ | 7,800 | 2/01/08 | 6.00 | % | | 4 | (1 | ) | |||||||||||||||
$ | 59 | $ | (1,960 | ) | $ | (1,688 | ) | |||||||||||||||||
(1) | A portion of the interest on the debt that this swap is hedging is capitalized. |
123
Future | ||||
Minimum | ||||
(in millions) | Rentals | |||
2007 |
$ | 304.5 | ||
2008 |
242.4 | |||
2009 |
218.0 | |||
2010 |
193.6 | |||
2011 |
166.3 | |||
Thereafter |
432.3 | |||
$ | 1,557.1 | |||
124
Future Minimum | ||||
(in millions) | Lease Payments | |||
2007 |
$ | 1.9 | ||
2008 |
1.9 | |||
2009 |
1.9 | |||
2010 |
2.0 | |||
2011 |
2.0 | |||
Thereafter |
137.3 | |||
$ | 147.0 | |||
Guaranteed | Maximum | |||||||
Amount | Guaranteed | |||||||
(in thousands) | Outstanding at | Amount at | ||||||
Debtor | December 31, 2006 | December 31, 2006 | ||||||
CRDI U.S. Bank National Association(1) |
$ | 14,346 | $ | 20,393 | ||||
CRDI Eagle Ranch Metropolitan District Letter of Credit (2) |
7,840 | 7,840 | ||||||
Fresh Choice, LLC(3) |
1,000 | 1,000 | ||||||
Total Guarantees |
$ | 23,186 | $ | 29,233 | ||||
(1) | We entered into a Payment and Completion Guaranty with U.S. Bank National Association for the repayment of bonds that were issued by the Northstar Community Housing Corporation to fund construction of an employee housing project. The initial guaranty of $20.4 million decreases to $5.1 million once construction is complete and certain conditions are met and decreases further and is eventually released as certain debt service coverage ratios are achieved. | |
(2) | We provide a $7.8 million letter of credit to support the payment of interest and principal of the Eagle Ranch Metropolitan District Revenue Development Bonds. | |
(3) | We provide a guarantee of up to $1.0 million to GE Capital Franchise Financing Corporation as part of Fresh Choices bankruptcy reorganization. |
125
For the years ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Expected term |
6.5 years | 10 years | 10 years | |||||||||
Risk-free rate |
4.6 | % | 4.2 | % | 4.3 | % | ||||||
Expected dividends |
7.4 | % | 8.8 | % | 8.8 | % | ||||||
Expected volatility |
22.2 | % | 25.0 | % | 24.9 | % |
126
For the years ended December 31, | ||||||||
(in thousands, except per share amounts) | 2005 (Restated) |
2004 (Restated) |
||||||
Net income available to common
shareholders, as reported |
$ | 69,547 | $ | 147,061 | ||||
Add: stock-based employee compensation
expense included in reported net income |
13,548 | 2,340 | ||||||
Deduct: total stock-based employee
compensation expense determined under
fair value based method for all awards,
net of minority interest |
(15,153 | ) | (4,270 | ) | ||||
Pro forma net income available
to common shareholders |
$ | 67,942 | $ | 145,131 | ||||
Earnings per share: |
||||||||
Basic as reported |
$ | 0.69 | $ | 1.49 | ||||
Basic pro forma |
$ | 0.68 | $ | 1.47 | ||||
Diluted as reported |
$ | 0.69 | $ | 1.48 | ||||
Diluted pro forma |
$ | 0.68 | $ | 1.46 |
Shares | Wtd. Avg. | |||||||||||||||
Underlying | Wtd. Avg. | Years | ||||||||||||||
Stock and | Exercise | Remaining | Aggregate | |||||||||||||
Unit | Price Per | Contractual | Intrinsic | |||||||||||||
(in thousands, except per share amounts) | Options | Share | Term | Value | ||||||||||||
Outstanding at January 1, 2006 |
12,363 | $ | 18 | |||||||||||||
Granted |
35 | 20 | ||||||||||||||
Exercised |
(1,314 | ) | 18 | |||||||||||||
Forfeited |
(17 | ) | 17 | |||||||||||||
Expired |
(185 | ) | 22 | |||||||||||||
Outstanding at December 31, 2006 |
10,882 | $ | 19 | 4.6 | $ | 22,974 | ||||||||||
Exercisable at December 31, 2006 |
9,224 | $ | 19 | 4.3 | $ | 19,275 | ||||||||||
Shares Underlying | Weighted | |||||||
Stock and Unit | Average Grant- | |||||||
(in thousands, except per share amounts) | Options | Date Fair Value | ||||||
Nonvested at January 1, 2006 |
3,092 | $ | 1.20 | |||||
Granted |
35 | 1.97 | ||||||
Vested |
(1,452 | ) | 1.27 | |||||
Forfeited |
(17 | ) | 1.05 | |||||
Nonvested at December 31, 2006 |
1,658 | $ | 1.15 | |||||
127
For the years ended | ||||||||||||
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Expected term |
1.5 to 5.2 years | 1.5 to 5.5 years | 1.5 to 5.5 years | |||||||||
Risk-free rate |
3.8% | 3.8% | 3.4% | |||||||||
Expected dividends |
9.0% | 9.0% | 9.1% | |||||||||
Expected volatility |
23.0% | 23.1% | 25.0% |
Weighted- | ||||||||
Shares | Average | |||||||
(share amounts in thousands) | Underlying | Grant-Date | ||||||
Nonvested Units | Units | Fair Value | ||||||
Nonvested at January 1, 2006 |
4,294 | $ | 6.54 | |||||
Granted |
25 | 7.31 | ||||||
Vested |
(1,148 | ) | 6.66 | |||||
Forfeited |
(10 | ) | 7.52 | |||||
Nonvested at December 31, 2006 |
3,161 | $ | 6.49 | |||||
128
2005 | ||||||||
(in thousands) | 2006 | (Restated) | ||||||
Limited partners in the Operating Partnership |
$ | 23,461 | $ | 70,178 | ||||
Limited partners in the Operating Partnership Units subject to redemption at fair
market value |
46,970 | 28,481 | ||||||
Limited partners in the Operating Partnership Unvested units subject to redemption |
5,434 | | ||||||
Development joint venture partners Resort Residential Development Segment |
32,399 | 31,546 | ||||||
Joint venture partners Office Segment |
11,543 | 15,354 | ||||||
Joint venture partners Resort/Hotel Segment |
5,368 | 5,853 | ||||||
Other |
528 | 127 | ||||||
$ | 125,703 | $ | 151,539 | |||||
2005 | 2004 | |||||||||||
(in thousands) | 2006 | (Restated) | (Restated) | |||||||||
Limited partners in the Operating Partnership |
$ | (2,358 | ) | $ | (4,048 | ) | $ | 24,866 | ||||
Development joint venture partners Resort Residential Development Segment |
5,377 | 15,545 | 9,201 | |||||||||
Joint venture partners Office Segment |
(632 | ) | (138 | ) | (163 | ) | ||||||
Joint venture partners Resort/Hotel Segment |
(126 | ) | (661 | ) | (1,131 | ) | ||||||
Other |
400 | 369 | (67 | ) | ||||||||
$ | 2,661 | $ | 11,067 | $ | 32,706 | |||||||
129
130
December 31, | ||||||||
December 31, | 2005 | |||||||
(in thousands) | 2006 | (Restated) | ||||||
Deferred tax liabilities: |
||||||||
Resort
Residential Development costs |
$ | (7,108 | ) | $ | (27,234 | ) | ||
Minority interests |
(4,661 | ) | (4,834 | ) | ||||
Land value adjustments |
(10,604 | ) | (11,273 | ) | ||||
Depreciable and amortizable assets |
(722 | ) | | |||||
Other |
(3,629 | ) | | |||||
Total deferred tax liabilities: |
$ | (26,724 | ) | $ | (43,341 | ) | ||
Deferred tax assets: |
||||||||
Deferred revenue |
$ | 23,754 | $ | 29,871 | ||||
Hotel lease acquisition costs |
| 85 | ||||||
Depreciable and amortizable assets |
| 1,650 | ||||||
Net operating loss carryforwards |
7,515 | 10,784 | ||||||
Impairment of assets |
1,464 | 1,464 | ||||||
Related party interest expense not currently deductible |
6,107 | 8,999 | ||||||
Other |
| 2,617 | ||||||
Total deferred tax assets |
$ | 38,840 | $ | 55,470 | ||||
Valuation allowance for deferred tax assets |
(8,842 | ) | (9,688 | ) | ||||
Deferred tax assets, net of valuation allowance |
$ | 29,998 | $ | 45,782 | ||||
Net deferred
tax assets |
$ | 3,274 | $ | 2,441 | ||||
131
Year ended | Year ended | |||||||||||||||||||||||
Year ended | December 31, 2005 | December 31, 2004 | ||||||||||||||||||||||
December 31, 2006 | (Restated) | (Restated) | ||||||||||||||||||||||
(in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||
Tax at U.S. statutory
rates on consolidated
income (loss) subject to tax |
$ | 1,439 | 35.0 | % | $ | (7,954 | ) | (35.0 | )% | $ | 10,982 | 35.0 | % | |||||||||||
State income tax, net of
federal income tax benefit |
106 | 2.6 | (980 | ) | (4.3 | ) | 1,254 | 4.0 | ||||||||||||||||
Disallowed expenses |
(508 | ) | (12.4 | ) | | | | | ||||||||||||||||
Fair market value charitable
contribution deduction |
1,732 | 42.1 | | | | | ||||||||||||||||||
Other |
(139 | ) | (3.4 | ) | 41 | 0.2 | 701 | 2.2 | ||||||||||||||||
Change in valuation allowance |
845 | 20.6 | 431 | 1.9 | (706 | ) | (2.2 | ) | ||||||||||||||||
$ | 3,475 | 84.5 | % | $ | (8,462 | ) | (37.2 | )% | $ | 12,231 | 39.0 | % | ||||||||||||
2005 | 2004 | |||||||||||
(in thousands) | 2006 | (Restated) | (Restated) | |||||||||
Current tax benefit (expense) |
$ | 2,642 | $ | 7,104 | $ | 381 | ||||||
Deferred tax benefit (expense) |
833 | (15,566 | ) | 11,850 | ||||||||
Federal income tax benefit (expense) |
$ | 3,475 | $ | (8,462 | ) | $ | 12,231 | |||||
132
For the 2006 Quarter Ended | ||||||||||||||||
March 31, | June 30, | September 30, | ||||||||||||||
(in thousands) | (Restated) | (Restated) | (Restated) | December 31, | ||||||||||||
Total Property revenues |
$ | 238,603 | $ | 195,004 | $ | 204,218 | $ | 290,871 | ||||||||
Total Property expenses |
172,197 | 123,687 | 139,921 | 222,219 | ||||||||||||
(Loss) income from continuing operations before minority interests and
income taxes |
(4,493 | ) | (832 | ) | 9,554 | 14,635 | ||||||||||
Minority interests |
1,741 | (1) | 178 | (1) | (1,823 | )(1) | (2,757 | )(1) | ||||||||
Income tax (expense) benefit |
(1,143 | ) | 5,291 | 3,124 | (3,797 | ) | ||||||||||
(Loss) income from discontinued operations, net of minority interests and
taxes |
(30 | ) | (37 | ) | (185 | ) | (250 | ) | ||||||||
Impairment charges related to real estate assets from discontinued
operations, net of minority interests |
| | (105 | ) | | |||||||||||
Gain (loss) on sale of real estate from discontinued operations, net of
minority interests and taxes |
96 | (8 | ) | 50 | 14,224 | |||||||||||
Net (loss) income |
$ | (3,829 | ) | $ | 4,592 | $ | 10,615 | $ | 22,055 | (2) | ||||||
Per share data: |
||||||||||||||||
Basic Earnings Per Common Share |
||||||||||||||||
-(Loss) income available to common shareholders before discontinued
operations and cumulative effect of a change in accounting principle |
$ | (0.12 | ) | $ | (0.03 | ) | $ | 0.03 | $ | | ||||||
- (Loss) income from discontinued operations, net of minority interests
and taxes |
| | | | ||||||||||||
- Impairment charges related to real estate assets from discontinued
operations, net of minority interests |
| | | | ||||||||||||
- Gain (loss) on sale of real estate from discontinued operations, net of
minority interests and taxes |
| | | 0.14 | ||||||||||||
- Net (loss) income available to common shareholders Basic |
$ | (0.12 | ) | $ | (0.03 | ) | $ | 0.03 | $ | 0.14 | ||||||
Diluted Earnings Per Common Share |
||||||||||||||||
-(Loss) income available to common shareholders before discontinued
operations and cumulative effect of a change in accounting principle |
$ | (0.12 | ) | $ | (0.03 | ) | $ | 0.03 | $ | | ||||||
- (Loss) income from discontinued operations, net of minority interests
and taxes |
| | | | ||||||||||||
- Impairment charges related to real estate assets from discontinued
operations, net of minority interests |
| | | | ||||||||||||
- Gain (loss) on sale of real estate from discontinued operations, net
of minority interests and taxes |
| | | 0.14 | ||||||||||||
- Net (loss) income available to common shareholders Diluted |
$ | (0.12 | ) | $ | (0.03 | ) | $ | 0.03 | $ | 0.14 |
(1) | Includes adjustments associated with the Calculation of Minority Interest restatement of $1.3 million for each of the first, second and third quarters of 2006, and $1.2 million for the fourth quarter of 2006. See Note 1, Organization and Basis of Presentation, for further description of this restatement. | |
(2) | Includes $2.7 million associated with prior year adjustments at AmeriCold, an equity investee in which we hold a 31.7% interest. |
133
For the 2005 Quarter Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
(in thousands) | (Restated) | (Restated) | (Restated) | (Restated) | ||||||||||||
Total Property revenues |
$ | 183,224 | $ | 208,414 | $ | 210,471 | $ | 415,991 | ||||||||
Total Property expenses |
126,986 | 144,697 | 145,323 | 322,255 | ||||||||||||
(Loss)
income from continuing operations before minority interests and income taxes |
(6,210 | ) | (6,567 | ) | (12,236 | ) | 53,840 | (1) | ||||||||
Minority interests |
1,719 | (2) | 182 | (2) | 1,852 | (2) | (14,820 | )(2) | ||||||||
Income tax benefit (expense) |
1,216 | 326 | 755 | (10,759 | ) | |||||||||||
Income (loss) from discontinued operations, net of minority interests |
1,683 | 1,710 | 813 | (200 | ) | |||||||||||
Impairment
charges related to real estate assets from discontinued operations, net of minority interests |
| | (64 | ) | (889 | ) | ||||||||||
Gain (loss) on real estate from discontinued operations, net of minority
interests |
1,504 | | 89,735 | (2,005 | ) (1) | |||||||||||
Net (loss) income |
$ | (88 | ) | $ | (4,349 | ) | $ | 80,855 | $ | 25,167 | ||||||
Per share data: |
||||||||||||||||
Basic Earnings Per Common Share |
||||||||||||||||
-(Loss) income available to common shareholders before discontinued
operations and cumulative effect of a change in accounting principle |
$ | (0.11 | ) | $ | (0.14 | ) | $ | (0.18 | ) | $ | 0.20 | |||||
- Income (loss) from discontinued operations, net of minority interests |
0.02 | 0.02 | 0.01 | | ||||||||||||
- Impairment charges related to real estate assets from discontinued
operations, net of minority interests |
| | | (0.01 | ) | |||||||||||
- Gain (loss) on real estate from discontinued operations, net of
minority interests |
0.01 | | 0.89 | (0.02 | ) | |||||||||||
- Net (loss) income available to common shareholders Basic |
$ | (0.08 | ) | $ | (0.12 | ) | $ | 0.72 | $ | 0.17 | ||||||
Diluted Earnings Per Common Share |
||||||||||||||||
-(Loss) income available to common shareholders before discontinued
operations and cumulative effect of a change in accounting principle |
$ | (0.11 | ) | $ | (0.14 | ) | $ | (0.18 | ) | $ | 0.20 | |||||
- Income (loss) from discontinued operations, net of minority interests |
0.02 | 0.02 | 0.01 | | ||||||||||||
- Impairment charges related to real estate assets from discontinued
operations, net of minority interests |
| | | (0.01 | ) | |||||||||||
- Gain (loss) on real estate from discontinued operations, net of
minority interests |
0.01 | | 0.89 | (0.02 | ) | |||||||||||
- Net (loss) income available to common shareholders Diluted |
$ | (0.08 | ) | $ | (0.12 | ) | $ | 0.72 | $ | 0.17 |
(1) | Includes $4.9 million of expense related to the write-off of capitalized internal leasing costs related to prior year office dispositions and the joint venture of properties. | |
(2) | Includes adjustments associated with the Calculation of Minority Interest restatement of $1.2 million for each of the first, second and third quarter of 2005, and $1.0 million for the fourth quarter of 2005. See Note 1, Organization and Basis of Presentation, for further description of this restatement. |
134
Assets | ||||||||||||||||||||||||||||||||
(in thousands) | As of December 31, 2006 | As of December 31, 2005 | ||||||||||||||||||||||||||||||
Resort Residential |
Resort/ | Resort Residential |
Resort/ | |||||||||||||||||||||||||||||
Office | Development | Hotel | Office | Development | Hotel | |||||||||||||||||||||||||||
Segment | Segment | Segment | Total | Segment | Segment | Segment | Total | |||||||||||||||||||||||||
Land |
$ | 30,469 | $ | 22,312 | $ | 25,567 | $ | 78,348 | $ | 26,952 | $ | 22,312 | $ | 25,567 | $ | 74,831 | ||||||||||||||||
Land Improvements |
177 | 106,874 | | 107,051 | 195 | 100,083 | | 100,278 | ||||||||||||||||||||||||
Buildings and
improvements |
560,496 | 143,346 | 307,492 | 1,011,334 | 508,164 | 129,915 | 297,180 | 935,259 | ||||||||||||||||||||||||
Furniture, fixtures
and equipment |
317 | 26,540 | 33,558 | 60,415 | 317 | 21,648 | 29,710 | 51,675 | ||||||||||||||||||||||||
Land held for
investment or
development |
| 619,746 | | 619,746 | | 448,173 | | 448,173 | ||||||||||||||||||||||||
Accumulated
Depreciation |
(137,327 | ) | (66,949 | ) | (89,498 | ) | (293,774 | ) | (117,324 | ) | (54,761 | ) | (81,490 | ) | (253,575 | ) | ||||||||||||||||
Net investment in
real estate |
454,132 | 851,869 | 277,119 | 1,583,120 | 418,304 | 667,370 | 270,967 | 1,356,641 | ||||||||||||||||||||||||
Cash |
| 18,543 | 7,735 | 26,278 | | 43,920 | 7,983 | 51,903 | ||||||||||||||||||||||||
Restricted cash |
146 | 3,660 | 1,341 | 5,147 | 2,447 | 23,726 | 1,932 | 28,105 | ||||||||||||||||||||||||
Accounts
receivable, net |
| 29,673 | 8,655 | 38,328 | | 21,889 | 8,458 | 30,347 | ||||||||||||||||||||||||
Deferred rent
receivable |
16,339 | | | 16,339 | 13,427 | | | 13,427 | ||||||||||||||||||||||||
Investments in
unconsolidated
companies |
| 19,979 | | 19,979 | | 6,417 | | 6,417 | ||||||||||||||||||||||||
Notes receivable |
| 7,332 | | 7,332 | | 6,275 | | 6,275 | ||||||||||||||||||||||||
Income tax asset
current and
deferred |
| (4,122 | ) | | (4,122 | ) | | (5,192 | ) | | (5,192 | ) | ||||||||||||||||||||
Other assets, net |
34,168 | 103,965 | 4,485 | 142,618 | 28,108 | 111,408 | 3,673 | 143,189 | ||||||||||||||||||||||||
Total assets |
$ | 504,785 | $ | 1,030,899 | $ | 299,335 | $ | 1,835,019 | $ | 462,286 | $ | 875,813 | $ | 293,013 | $ | 1,631,112 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
(in thousands) | As of December 31, 2006 | As of December 31, 2005 | ||||||||||||||||||||||||||||||
Resort Residential |
Resort/ | Resort Residential |
Resort/ | |||||||||||||||||||||||||||||
Office | Development | Hotel | Office | Development | Hotel | |||||||||||||||||||||||||||
Segment | Segment | Segment | Total | Segment | Segment | Segment | Total | |||||||||||||||||||||||||
Notes Payable |
$ | 64,949 | $ | 178,560 | $ | 55,000 | $ | 298,509 | $ | 26,000 | $ | 110,145 | $ | | $ | 136,145 | ||||||||||||||||
Accounts payable,
accrued expenses and
other liabilities |
8,932 | 274,668 | 21,787 | 305,387 | 7,566 | 284,796 | 19,812 | 312,174 | ||||||||||||||||||||||||
Deferred tax liability |
| (10,648 | ) | | (10,648 | ) | | | | | ||||||||||||||||||||||
Total liabilities |
$ | 73,881 | $ | 442,580 | $ | 76,787 | $ | 593,248 | $ | 33,566 | $ | 394,941 | $ | 19,812 | $ | 448,319 | ||||||||||||||||
Minority Interests | ||||||||||||||||||||||||||||||||
(in thousands) | As of December 31, 2006 | As of December 31, 2005 | ||||||||||||||||||||||||||||||
Resort Residential |
Resort/ | Resort Residential |
Resort/ | |||||||||||||||||||||||||||||
Office | Development | Hotel | Office | Development | Hotel | |||||||||||||||||||||||||||
Segment | Segment | Segment | Total | Segment | Segment | Segment | Total | |||||||||||||||||||||||||
Minority interests |
$ | | $ | 31,637 | $ | | $ | 31,637 | $ | | $ | 30,792 | $ | | $ | 30,792 | ||||||||||||||||
Total minority interests |
$ | | $ | 31,637 | $ | | $ | 31,637 | $ | | $ | 30,792 | $ | | $ | 30,792 | ||||||||||||||||
135
136
| pertain to the maintenance of records that accurately and fairly reflect the transactions and dispositions of our assets in reasonable detail; | |
| provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are made only in accordance with the authorization procedures we have established; and | |
| provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of any of our assets in circumstances that could have a material adverse effect on our financial statements. |
137
138
139
140
141
142
(a)(1)
|
Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Crescent Real Estate Equities Company Consolidated Balance Sheets at December 31, 2006 and 2005. | ||
Crescent Real Estate Equities Company Consolidated Statements of Operations for the years ended December 31, 2006, 2005 and 2004. | ||
Crescent Real Estate Equities Company Consolidated Statements of Shareholders Equity for the years ended December 31, 2006, 2005 and 2004. | ||
Crescent Real Estate Equities Company Consolidated Statements of Cash Flows for the years ended December 31, 2006, 2005 and 2004. | ||
Crescent Real Estate Equities Company Notes to Consolidated Financial Statements. | ||
(a)(2)
|
Financial Statement Schedules and Financial Statements of Subsidiaries Not Consolidated and Fifty-Percent-or-Less-Owned Persons | |
Financial Statement Schedules | ||
Schedule III Crescent Real Estate Equities Company Consolidated Real Estate Investments and Accumulated Depreciation at December 31, 2006. | ||
Schedule IV Crescent Real Estate Equities Company Mortgage Loans on Real Estate Investments at December 31, 2006. | ||
All other schedules have been omitted either because they are not applicable or because the required information has been disclosed in the Financial Statements and related notes included in the consolidated statements. | ||
The financial statement schedules and financial statements listed in this Item 15(a)(2) are contained in Item 8. Financial Statements and Supplementary Data. | ||
(a)(3)
|
Exhibits | |
The exhibits required by this item are set forth on the Exhibit Index attached hereto. | ||
(b)
|
Exhibits | |
See Item 15(a)(3) above. | ||
(c)
|
Financial Statement Schedules and Financial Statements of Subsidiaries Not Consolidated and Fifty-Percent-or-Less-Owned Persons | |
See Item 15(a)(2) above. |
143
Costs | ||||||||||||||||||||||||||||||||||||||||||||
Capitalized | Impairment | Gross Amount Carried at |
||||||||||||||||||||||||||||||||||||||||||
Subsequent to | to Carrying | Close of Period | ||||||||||||||||||||||||||||||||||||||||||
Initial Costs(1) | Acquisition | Value | 12/31/06 | |||||||||||||||||||||||||||||||||||||||||
Land, Buildings, | Buildings, | Buildings, | Life on Which | |||||||||||||||||||||||||||||||||||||||||
Improvements, | Improvements, | Improvements, | Depreciation in | |||||||||||||||||||||||||||||||||||||||||
Furniture, | Furniture, | Furniture, | Latest Income | |||||||||||||||||||||||||||||||||||||||||
Buildings and | Fixtures and | Fixtures and | Fixtures and | Accumulated | Date of | Acquisition | Statement Is | |||||||||||||||||||||||||||||||||||||
Description | Land | Improvements | Equipment | Equipment | Land | Equipment | Total (2) | Depreciation | Construction | Date | Computed | |||||||||||||||||||||||||||||||||
The Citadel, Denver, CO |
$ | 1,803 | $ | 17,259 | $ | 2,246 | $ | | $ | 1,803 | $ | 19,505 | $ | 21,308 | $ | (14,387 | ) | 1987 | 1987 | (3 | ) | |||||||||||||||||||||||
Carter Burgess Plaza, Fort Worth, TX |
1,375 | 66,649 | 27,189 | | 1,375 | 93,838 | 95,213 | (47,255 | ) | 1982 | 1990 | (3 | ) | |||||||||||||||||||||||||||||||
MacArthur Center I & II, Irving, TX |
704 | 17,247 | 2,828 | | 880 | 19,899 | 20,779 | (7,402 | ) | 1982/1986 | 1993 | (3 | ) | |||||||||||||||||||||||||||||||
125. E. John Carpenter Freeway, Irving, TX |
2,200 | 48,744 | 9,876 | | 2,200 | 58,620 | 60,820 | (19,882 | ) | 1982 | 1994 | (3 | ) | |||||||||||||||||||||||||||||||
Regency Plaza One, Denver, CO |
950 | 31,797 | 5,932 | | 950 | 37,729 | 38,679 | (11,570 | ) | 1985 | 1994 | (3 | ) | |||||||||||||||||||||||||||||||
The Avallon, Austin, TX |
475 | 11,207 | 12,472 | | 1,069 | 23,085 | 24,154 | (6,254 | ) | 1986 | 1994 | (3 | ) | |||||||||||||||||||||||||||||||
Waterside Commons, Irving, TX (4) |
3,650 | 20,135 | (22,738 | ) | (1,047 | ) | | | | | 1986 | 1994 | (3 | ) | ||||||||||||||||||||||||||||||
Denver Marriott City Center, Denver, CO |
| 50,364 | 8,376 | | | 58,740 | 58,740 | (20,018 | ) | 1982 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
707 17th Street, Denver, CO |
| 56,593 | 20,414 | | | 77,007 | 77,007 | (23,022 | ) | 1982 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
Spectrum Center, Dallas, TX |
2,000 | 41,096 | 20,400 | | 2,000 | 61,496 | 63,496 | (18,137 | ) | 1983 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
Stanford Corporate Centre, Dallas, TX |
| 16,493 | 9,465 | (1,200 | ) | | 24,758 | 24,758 | (9,132 | ) | 1985 | 1995 | (3 | ) | ||||||||||||||||||||||||||||||
The Aberdeen, Dallas, TX |
850 | 25,895 | 3,004 | | 850 | 28,899 | 29,749 | (7,705 | ) | 1986 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
Briargate
Office and Research Center, Colorado Springs, CO |
2,000 | 18,044 | 5,892 | | 2,000 | 23,936 | 25,936 | (6,523 | ) | 1988 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
Park Hyatt Beaver Creek, Avon, CO |
10,882 | 40,789 | 31,415 | | 10,882 | 72,204 | 83,086 | (15,650 | ) | 1989 | 1995 | (3 | ) | |||||||||||||||||||||||||||||||
Sonoma Mission Inn & Spa, Sonoma, CA |
10,000 | 44,922 | 44,278 | | 10,000 | 89,200 | 99,200 | (22,327 | ) | 1927 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
3333 Lee Parkway, Dallas, TX |
1,450 | 13,177 | 6,853 | | 1,450 | 20,030 | 21,480 | (5,155 | ) | 1983 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
Greenway I & IA, Richardson, TX |
1,701 | 15,312 | 3,146 | | 1,701 | 18,458 | 20,159 | (4,748 | ) | 1983 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
Frost Bank Plaza, Austin, TX |
| 36,019 | 6,147 | | | 42,166 | 42,166 | (10,842 | ) | 1984 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
301 Congress Avenue, Austin, TX |
2,000 | 41,735 | 15,050 | | 2,000 | 56,785 | 58,785 | (15,435 | ) | 1986 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
Greenway
Plaza Office Portfolio & Hotel, Houston, TX |
29,232 | 184,765 | 144,890 | | 27,228 | 331,659 | 358,887 | (109,476 | ) | 1969-1982 | 1996 | (3 | ) | |||||||||||||||||||||||||||||||
55 Madison, Denver, CO |
1,451 | 13,253 | 2,636 | | 1,451 | 15,889 | 17,340 | (4,985 | ) | 1982 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
44 Cook, Denver, CO |
1,451 | 13,253 | 3,388 | | 1,451 | 16,641 | 18,092 | (4,912 | ) | 1984 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Greenway II, Richardson, TX |
1,823 | 16,421 | 6,395 | | 1,823 | 22,816 | 24,639 | (5,742 | ) | 1985 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Ventana Country Inn, Big Sur, CA |
2,782 | 26,744 | 7,687 | | 2,064 | 35,149 | 37,213 | (9,902 | ) | 1975-1988 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Palisades Central I, Dallas, TX |
1,300 | 11,797 | 2,535 | | 1,300 | 14,332 | 15,632 | (3,812 | ) | 1980/1986 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Palisades Central II, Dallas, TX |
2,100 | 19,176 | 5,030 | | 2,100 | 24,206 | 26,306 | (6,804 | ) | 1980/1986 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Stemmons Place, Dallas, TX |
| 37,537 | 5,935 | | | 43,472 | 43,472 | (11,434 | ) | 1980/1986 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
The Addison, Dallas, TX |
1,990 | 17,998 | 2,690 | | 1,990 | 20,688 | 22,678 | (5,305 | ) | 1980/1986 | 1997 | (3 | ) | |||||||||||||||||||||||||||||||
Sonoma Golf Course, Sonoma, CA |
14,956 | | 21,595 | (4,354 | ) | 15,952 | 16,245 | 32,197 | (1,715 | ) | 1929 | 1998 | (3 | ) | ||||||||||||||||||||||||||||||
Austin Centre, Austin, TX |
1,494 | 36,475 | 5,499 | | 1,494 | 41,974 | 43,468 | (10,241 | ) | 1986 | 1998 | (3 | ) | |||||||||||||||||||||||||||||||
Omni Austin Hotel, Austin, TX |
2,409 | 56,670 | 3,924 | | 2,409 | 60,594 | 63,003 | (15,821 | ) | 1986 | 1998 | (3 | ) | |||||||||||||||||||||||||||||||
Datran Center, Miami, FL |
| 71,091 | 11,765 | | | 82,856 | 82,856 | (19,555 | ) | 1986-1992 | 1998 | (3 | ) | |||||||||||||||||||||||||||||||
Avallon Phase II, Austin, TX |
1,102 | 23,401 | (11,339 | ) | | 640 | 12,524 | 13,164 | (1,748 | ) | 1997 | | (3 | ) | ||||||||||||||||||||||||||||||
Plaza Park Garage, Fort Worth, TX |
2,032 | 14,125 | 613 | | 2,032 | 14,738 | 16,770 | (3,482 | ) | 1998 | | (3 | ) | |||||||||||||||||||||||||||||||
Johns Manville Plaza, Denver, CO |
9,128 | 74,937 | 4,957 | | 9,128 | 79,894 | 89,022 | (9,470 | ) | 1978 | 2002 | (3 | ) | |||||||||||||||||||||||||||||||
The Colonnade, Coral Gables, FL |
2,600 | 39,557 | 1,162 | | 2,600 | 40,719 | 43,319 | (3,738 | ) | 1989 | 2003 | (3 | ) | |||||||||||||||||||||||||||||||
Hughes Center, Las Vegas, NV |
29,802 | 178,705 | 11,009 | | 29,822 | 189,694 | 219,516 | (19,232 | ) | 1986-1999 | 2003-2004 | (3 | ) | |||||||||||||||||||||||||||||||
Desert Mountain Development Corp.(7) |
120,907 | 60,487 | 25,487 | | 128,230 | 78,651 | 206,881 | (53,238 | ) | | 2002 | (3 | ) | |||||||||||||||||||||||||||||||
Crescent Resort Development, Inc. (7) |
367,647 | 23,357 | 288,731 | | 604,747 | 74,988 | 679,735 | (11,996 | ) | | 2002 | (3 | ) | |||||||||||||||||||||||||||||||
Mira Vista Development Company (7) |
3,059 | 2,234 | 2,090 | | 2,093 | 5,290 | 7,383 | (2,173 | ) | | 2003 | (3 | ) | |||||||||||||||||||||||||||||||
Houston Area Development Corporation (7) |
2,740 | | (1,977 | ) | | 763 | | 763 | | | 2003 | (3 | ) | |||||||||||||||||||||||||||||||
Crescent Plaza Phase I & II, Dallas, TX (7) |
10,997 | | 114,848 | | 65,233 | 60,612 | 125,845 | | | 2002 | (3 | ) | ||||||||||||||||||||||||||||||||
JPI
multi-family luxury apartment project Deedham, MA (7) |
17,095 | | (17,095 | ) | | | | | | | 2004 | (3 | ) | |||||||||||||||||||||||||||||||
Dupont Centre, Irvine, CA |
10,000 | 34,668 | 1,735 | | 10,000 | 36,403 | 46,403 | (2,879 | ) | 1986 | 2004 | (3 | ) | |||||||||||||||||||||||||||||||
The Alhambra, Miami, FL |
5,500 | 52,276 | 4,649 | | 5,500 | 56,925 | 62,425 | (4,065 | ) | 1961-1987 | 2004 | (3 | ) | |||||||||||||||||||||||||||||||
Paseo Del Mar, San Diego, CA (5) |
21,000 | | (21,000 | ) | | | | | | | 2005 | (3 | ) | |||||||||||||||||||||||||||||||
3883 Hughes Center, Las Vegas, NV |
3,304 | | 53,338 | | 3,514 | 53,128 | 56,642 | | | 2005 | (3 | ) | ||||||||||||||||||||||||||||||||
The Exchange Building, Seattle, WA |
7,050 | 40,442 | 2,731 | | 7,050 | 43,173 | 50,223 | (3,523 | ) | 1929 | 2005 | (3 | ) | |||||||||||||||||||||||||||||||
One Live Oak, Atlanta, GA |
3,380 | 23,323 | 2,976 | | 3,380 | 26,299 | 29,679 | (1,793 | ) | 1981 | 2004 | (3 | ) | |||||||||||||||||||||||||||||||
Peakview Tower, Denver, CO |
2,724 | 36,411 | 1,513 | | 2,724 | 37,924 | 40,648 | (3,104 | ) | 2001 | 2004 | (3 | ) | |||||||||||||||||||||||||||||||
Financial Plaza, Phoenix, AZ (6) |
3,517 | 41,492 | 562 | | 3,517 | 42,054 | 45,571 | (1,615 | ) | 1986 | 2006 | (3 | ) | |||||||||||||||||||||||||||||||
Parkway at Oakhill, Austin, TX (6) |
3,500 | | 11,328 | | 3,500 | 11,328 | 14,828 | | 2006 | 2006 | (3 | ) | ||||||||||||||||||||||||||||||||
Land held for development or sale, Houston, TX |
49,420 | | (30,786 | ) | | 18,634 | | 18,634 | | | | (3 | ) | |||||||||||||||||||||||||||||||
Land held for development or sale, Dallas, TX |
27,288 | | (9,516 | ) | | 17,772 | | 17,772 | | | | (3 | ) | |||||||||||||||||||||||||||||||
Land held for development or sale, Las Vegas, NV |
10,000 | | 5,333 | | 15,333 | | 15,333 | | | 2004 | (3 | ) | ||||||||||||||||||||||||||||||||
Crescent Real Estate Equities L.P. |
| | 23,913 | (352 | ) | | 23,561 | 23,561 | (7,228 | ) | | | (3 | ) | ||||||||||||||||||||||||||||||
Other |
18,588 | 11,351 | 9,340 | | 10,166 | 29,113 | 39,279 | (4,443 | ) | | | (3 | ) | |||||||||||||||||||||||||||||||
Total |
$ | 835,408 | $ | 1,775,423 | $ | 910,816 | $ | (6,953 | ) | $ | 1,044,800 | $ | 2,469,894 | $ | 3,514,694 | $ | (608,875 | ) | ||||||||||||||||||||||||||
(1) | Initial costs include purchase price, excluding any purchase price adjustments related to SFAS 141 intangibles, and any costs associated with closing of the Property. | |
(2) | The aggregate cost for Federal income tax purposes as of December 31, 2005 was approximately $3.5 billion. | |
(3) | Depreciation of the real estate assets is calculated over the following estimated useful lives using the straight-line method: |
Building and improvements | 2 to 46 years | |||
Tenant improvements | Terms of leases, which approximates the useful life of the asset | |||
Furniture, fixtures, and equipment | 2 to 5 years |
(4) | This Office Property was sold during the year ended December 31, 2006. | |
(5) | Our investment in this Office Property was sold during the year ended December 31, 2006. | |
(6) | This Office Property was acquired during the year ended December 31, 2006. | |
(7) | Land and cost capitalized subsequent to acquisition includes property under development and is net of residential development cost of sales. |
144
2006 | 2005 | 2004 | ||||||||||
Real estate investments: |
||||||||||||
Balance, beginning of year |
$ | 3,182,235 | $ | 3,262,894 | $ | 3,862,286 | ||||||
Acquisitions |
48,509 | 192,024 | 437,359 | |||||||||
Improvements |
471,730 | 239,040 | 154,300 | |||||||||
Dispositions |
(187,655 | ) | (510,601 | ) | (1,183,185 | ) | ||||||
Impairments |
(125 | ) | (1,122 | ) | (7,866 | ) | ||||||
Balance, end of year |
$ | 3,514,694 | $ | 3,182,235 | $ | 3,262,894 | ||||||
Accumulated Depreciation: |
||||||||||||
Balance, beginning of year |
$ | 528,006 | $ | 516,205 | $ | 697,813 | ||||||
Depreciation |
117,419 | 116,156 | 145,210 | |||||||||
Dispositions |
(36,550 | ) | (104,355 | ) | (326,818 | ) | ||||||
Balance, end of year |
$ | 608,875 | $ | 528,006 | $ | 516,205 | ||||||
145
Principal Amount | ||||||||||||||||||||||||||||||||
of Loans Subject | ||||||||||||||||||||||||||||||||
Interest Rate | Original | Periodic | Face | Carrying | to Delinquent | |||||||||||||||||||||||||||
at December | Maturity | Loan | Payment | Prior | Amount of | Amount of | Principal or | |||||||||||||||||||||||||
Type of Investment | 31, 2006 | Date | Extensions | Term(1)(2) | Liens | Mortgages | Mortgages(3) | Interest(4) | ||||||||||||||||||||||||
Mezzanine Investments |
||||||||||||||||||||||||||||||||
Dallas Office Property |
13.85 | % | 2007 | Three 1-Year | Interest Only | $ | 65,750 | $ | 12,000 | $ | 11,989 | $ | | |||||||||||||||||||
Three Dallas Office Properties |
11.04 | % | 2010 | N/A | Principal and Interest(5) | 80,000 | 7,660 | 7,601 | | |||||||||||||||||||||||
Two California Luxury Hotel Properties |
16.35 | % | 2007 | Five 1-Year | Interest Only | 250,000 | (6) | 15,000 | 14,947 | | ||||||||||||||||||||||
Southeastern U.S. Office Portfolio |
12.23 | % | 2007 | Three 1-Year | Interest Only | 290,000 | 20,700 | 20,630 | | |||||||||||||||||||||||
Six Florida Hotel Properties |
13.35 | % | 2009 | Two 1-Year | Interest Only | 95,000 | 15,000 | 14,891 | | |||||||||||||||||||||||
California Ski Resort |
9.85 | % | 2009 | Two 1-Year | Interest Only | 230,000 | 20,000 | 19,845 | | |||||||||||||||||||||||
New York City Residential Property |
18.18 | % | 2007 | Two 1-Year | Interest Only | 342,615 | 24,185 | 24,013 | | |||||||||||||||||||||||
California Residential Property |
17.00 | % | 2008 | One 6-Month | Interest Only | 34,000 | 9,775 | (7) | 9,581 | | ||||||||||||||||||||||
$ | 1,387,365 | $ | 124,320 | $ | 123,497 | (8) | $ | | ||||||||||||||||||||||||
(1) | Interest only payments are due monthly, principal is due at maturity except as otherwise noted in footnote (5). | |
(2) | Prepayment of certain loans will trigger additional fees, such as prepayment fees, exit fees, spread maintenance premiums and breakage costs, due from the borrower at the time of prepayment. | |
(3) | The carrying amounts approximate the Federal income tax basis. | |
(4) | No mortgage loans are delinquent with respect to principal or interest. | |
(5) | Interest only payments are due monthly through September 2007. Beginning October 2007, principal payments are due monthly until maturity. | |
(6) | We have a 25% interest in Redtail Capital Partners, L.P., that has a $25.0 million mortgage loan secured by these properties. | |
(7) | The condominiums securing this note were sold by CRDI to a third party. Due to restrictions under SFAS No. 66, Accounting for Sales of Real Estate regarding seller financed transactions, the profit from the sale of $4.7 million was deferred and recorded under the cost recovery method and reflected as a reduction of the note such that the face value of the note is included in the table above. | |
(8) | The following is a summary of changes in the carrying amount of investments for the years ended December 31, 2006 and December 31, 2005: |
2006 | 2005 | |||||||
Balance at January 1, 2005 |
$ | 172,126 | $ | 21,877 | ||||
Additions during period: |
||||||||
Investments in mezzanine loans |
73,575 | 150,582 | ||||||
Cost of acquiring mezzanine investments |
| 402 | ||||||
Accretion of unearned revenue |
778 | 303 | ||||||
Deductions during period: |
||||||||
Collection of principal |
(121,837 | ) | | |||||
Amortization of premium and cost to acquire
mezzanine investments |
(311 | ) | (152 | ) | ||||
Unearned revenue |
(834 | ) | (886 | ) | ||||
Balance at December 31, 2006 |
$ | 123,497 | $ | 172,126 | ||||
CRESCENT REAL ESTATE EQUITIES COMPANY | ||||||
(Registrant) | ||||||
By | /s/John C. Goff | |||||
John C. Goff | ||||||
Trust Manager and Chief Executive Officer |
Signature | Title | Date | ||
/s/ Richard E. Rainwater |
Trust Manager and Chairman of the Board | March 14, 2007 | ||
Richard E. Rainwater |
||||
/s/ John C. Goff |
Trust Manager and Chief Executive Officer | March 14, 2007 | ||
John C. Goff |
(Principal Executive Officer) | |||
/s/ Jerry R. Crenshaw Jr. |
Managing Director and Chief Financial Officer | March 14, 2007 | ||
Jerry R. Crenshaw Jr. |
(Principal Financial and Accounting Officer) | |||
/s/ Dennis H. Alberts |
Trust Manager, President and Chief Operating Officer | March 14, 2007 | ||
Dennis H. Alberts |
||||
/s/ Anthony M. Frank |
Trust Manager | March 14, 2007 | ||
Anthony M. Frank |
||||
/s/ William F. Quinn |
Trust Manager | March 14, 2007 | ||
William F. Quinn |
||||
/s/ Paul E. Rowsey, III |
Trust Manager | March 14, 2007 | ||
Paul E. Rowsey, III |
||||
/s/ Robert W. Stallings |
Trust Manager | March 14, 2007 | ||
Robert W. Stallings |
||||
/s/ Terry N. Worrell |
Trust Manager | March 14, 2007 | ||
Terry N. Worrell |
EXHIBIT | ||
NUMBER | DESCRIPTION OF EXHIBIT | |
3.01
|
Restated Declaration of Trust of Crescent Real Estate Equities Company, as amended (filed as Exhibit No. 3.1 to the Registrants Current Report on Form 8-K filed April 25, 2002 (the April 2002 8-K) and incorporated herein by reference) | |
3.02
|
Fourth Amended and Restated Bylaws of Crescent Real Estate Equities Company (filed as Exhibit No. 3.02 to the Registrants Annual Report of Form 10-K for the fiscal year ended December 31, 2005 (the 2005 10K) and incorporated herein by reference) | |
4.01
|
Form of Common Share Certificate (filed as Exhibit No. 4.03 to the Registrants Registration Statement on Form S-3 (File No. 333-21905) and incorporated herein by reference) | |
4.02
|
Statement of Designation of 6-3/4% Series A Convertible Cumulative Preferred Shares of Crescent Real Estate Equities Company dated February 13, 1998 (filed as Exhibit No. 4.07 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 1997 (the 1997 10-K) and incorporated herein by reference) | |
4.03
|
Form of Certificate of 6-3/4% Series A Convertible Cumulative Preferred Shares of Crescent Real Estate Equities Company (filed as Exhibit No. 4 to the Registrants Registration Statement on Form 8-A/A filed on February 18, 1998 and incorporated by reference) | |
4.04
|
Statement of Designation of 6-3/4% Series A Convertible Cumulative Preferred Shares of Crescent Real Estate Equities Company dated April 25, 2002 (filed as Exhibit No. 4.1 to the April 2002 8-K and incorporated herein by reference) | |
4.05
|
Statement of Designation of 6-3/4% Series A Convertible Cumulative Preferred Shares of Crescent Real Estate Equities Company dated January 14, 2004 (filed as Exhibit No. 4.1 to the Registrants Current Report on Form 8-K filed January 15, 2004 (the January 2004 8-K) and incorporated herein by reference) | |
4.06
|
Form of Global Certificate of 6-3/4% Series A Convertible Cumulative Preferred Shares of Crescent Real Estate Equities Company (filed as Exhibit No. 4.2 to the January 2004 8-K and incorporated herein by reference) | |
4.07
|
Statement of Designation of 9.50% Series B Cumulative Redeemable Preferred Shares of Crescent Real Estate Equities Company dated May 13, 2002 (filed as Exhibit No. 2 to the Registrants Form 8-A dated May 14, 2002 (the Form 8-A) and incorporated herein by reference) | |
4.08
|
Form of Certificate of 9.50% Series B Cumulative Redeemable Preferred Shares of Crescent Real Estate Equities Company (filed as Exhibit No. 4 to the Form 8-A and incorporated herein by reference) | |
4*
|
Pursuant to Regulation S-K Item 601 (b) (4) (iii), the Registrant by this filing agrees, upon request, to furnish to the Securities and Exchange Commission a copy of instruments defining the rights of holders of long-term debt of the Registrant |
EXHIBIT | ||
NUMBER | DESCRIPTION OF EXHIBIT | |
10.01
|
Fourth Amended and Restated Agreement of Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated as of April 30, 2006 (filed as Exhibit 10.1 to the Registrants Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 (the 1Q 2006 10-Q) and incorporated herein by reference) | |
10.02
|
Noncompetition Agreement of Richard E. Rainwater, as assigned to Crescent Real Estate Equities Limited Partnership on May 5, 1994 (filed as Exhibit No. 10.02 to the 1997 10-K and incorporated herein by reference) | |
10.03
|
Noncompetition Agreement of John C. Goff, as assigned to Crescent Real Estate Equities Limited Partnership on May 5, 1994 (filed as Exhibit No. 10.03 to the 1997 10-K and incorporated herein by reference) | |
10.04*
|
Employment Agreement by and between Crescent Real Estate Equities Limited Partnership, Crescent Real Estate Equities Company and John C. Goff, dated as of February 19, 2002 (filed as Exhibit No. 10.01 to the Registrants Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (the 1Q 2002 10-Q) and incorporated herein by reference) | |
10.05
|
Form of Officers and Trust Managers Indemnification Agreement as entered into between the Registrant and each of its executive officers and trust managers (filed as Exhibit No. 10.07 to the Registration Statement on Form S-4 (File No. 333-42293) of Crescent Real Estate Equities Limited Partnership and incorporated herein by reference) | |
10.06*
|
Crescent Real Estate Equities Company 1994 Stock Incentive Plan (filed as Exhibit No. 10.07 to the Registrants Registration Statement on Form S-11 (File No. 33-75188) (the Form S-11) and incorporated herein by reference) | |
10.07*
|
Third Amended and Restated 1995 Crescent Real Estate Equities Company Stock Incentive Plan (filed as Exhibit No. 10.01 to the Registrants Quarterly Report on Form 10-Q for the quarter ended June 30, 2001 and incorporated herein by reference) | |
10.08*
|
Amendment dated as of November 4, 1999 to the Crescent Real Estate Equities Company 1994 Stock Incentive Plan (filed as Exhibit No. 10.10 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 2000 (the 2000 10-K) and incorporated herein by reference) | |
10.09*
|
Amendment dated as of November 1, 2001 to the Crescent Real Estate Equities Company 1994 Stock Incentive Plan and the Third Amended and Restated 1995 Crescent Real Estate Equities Company Stock Incentive Plan (filed as Exhibit No. 10.11 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and incorporated herein by reference) | |
10.10*
|
Second Amended and Restated 1995 Crescent Real Estate Equities Limited Partnership Unit Incentive Plan (filed as Exhibit No. 10.10 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference) | |
10.11*
|
1996 Crescent Real Estate Equities Limited Partnership Unit Incentive Plan, as amended (filed as Exhibit No. 10.14 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 1999 and incorporated herein by reference) |
EXHIBIT | ||
NUMBER | DESCRIPTION OF EXHIBIT | |
10.12*
|
Amendment dated as of November 5, 1999 to the 1996 Crescent Real Estate Equities Limited Partnership Unit Incentive Plan (filed as Exhibit No. 10.13 to the 2000 10-K and incorporated herein by reference) | |
10.13*
|
Crescent Real Estate Equities, Ltd. Dividend Incentive Unit Plan (filed as Exhibit No. 10.14 to the 2000 10-K and incorporated herein by reference) | |
10.14*
|
Annual Incentive Compensation Plan for select Employees of Crescent Real Estate Equities, Ltd. (filed as Exhibit No. 10.15 to the 2000 10-K and incorporated herein by reference) | |
10.15
|
Form of Registration Rights, Look-Up and Pledge Agreement (filed as Exhibit No. 10.05 to the Form S-11 and incorporated herein by reference) | |
10.16*
|
Restricted Stock Agreement by and between Crescent Real Estate Equities Company and John C. Goff, dated as of February 19, 2002 (filed as Exhibit No. 10.02 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.17*
|
Unit Option Agreement Pursuant to the 1996 Plan by and between Crescent Real Estate Equities Limited Partnership and John C. Goff, dated as of February 19, 2002 (filed as Exhibit No. 10.01 to the Registrants Quarterly Report on Form 10-Q for the quarter ended June 30, 2002 and incorporated herein by reference) | |
10.18*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and John C. Goff, dated as of February 19, 2002 (filed as Exhibit No. 10.04 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.19*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Dennis H. Alberts, dated as of February 19, 2002 (filed as Exhibit No. 10.05 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.20*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Kenneth S. Moczulski, dated as of February 19, 2002 (filed as Exhibit No. 10.06 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.21*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and David M. Dean, dated as of February 19, 2002 (filed as Exhibit No. 10.07 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.22*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Jane E. Mody, dated as of February 19, 2002 (filed as Exhibit No. 10.08 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.23*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Jerry R. Crenshaw, Jr., dated as of February 19, 2002 (filed as Exhibit No. 10.09 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.24*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Jane B. Page, dated as of February 19, 2002 (filed as Exhibit No. 10.10 to the 1Q 2002 10-Q and incorporated herein by reference) |
EXHIBIT | ||
NUMBER | DESCRIPTION OF EXHIBIT | |
10.25*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and John L. Zogg, Jr., dated as of February 19, 2002 (filed as Exhibit No. 10.11 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.26*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnership and Dennis H. Alberts, dated as of March 5, 2001 (filed as Exhibit No. 10.12 to the 1Q 2002 10-Q and incorporated herein by reference) | |
10.27*
|
Unit Option Agreement by and between Crescent Real Estate Equities Limited Partnerships and Paul R. Smith, dated as of May 16, 2005 (filed as Exhibit No. 10.03 to the Registrants Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 (the 2Q 2005 10-Q) and incorporated herein by reference) | |
10.28*
|
2004 Crescent Real Estate Equities Limited Partnership Long-Term Incentive Plan (filed as Exhibit 10.27 to the Registrants Annual Report on Form 10-K for the fiscal year ended December 31, 2004 (the 2004 10-K) and incorporated herein by reference) | |
10.29
|
2005 Crescent Real Estate Equities Limited Partnership Long-Term Incentive Plan (filed as Exhibit 10.02 to the 2Q 2005 10-Q and incorporated herein by reference) | |
10.30
|
Revolving Credit Agreement of Crescent Real Estate Funding VIII, L.P., dated February 8, 2005, and Unconditional Guaranty of Payment and Performance of Crescent Real Estate Equities Limited Partnership (filed as Exhibit 10.28 to the 2004 10-K and incorporated herein by reference) | |
10.31
|
Contribution Agreement effective as of November 10, 2004, relating to the contribution by Crescent Real Estate Funding I, L.P. of The Crescent Office Property to Crescent Big Tex I, L.P. (filed as Exhibit 10.29 to the 2004 10-K and incorporated herein by reference) | |
10.32
|
Purchase and Sale Agreement effective as of November 10, 2004, relating to the sale by Crescent Real Estate Equities Limited Partnership of Houston Center Office Property to Crescent Big Tex I, L.P. (filed as Exhibit 10.30 to the 2004 10-K and incorporated herein by reference) | |
10.33
|
Purchase and Sale Agreement effective as of November 10, 2004, relating to the sale by Crescent Real Estate Funding X, L.P. of Post Oak Central Office Property to Crescent Big Tex I, L.P. (filed as Exhibit 10.31 to the 2004 10-K and incorporated herein by reference) | |
21.01
|
List of Subsidiaries (filed herewith) | |
23.01
|
Consent of Ernst & Young LLP (filed herewith) | |
23.02
|
Consent of Deloitte & Touche LLP (filed herewith) | |
31.01
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a 14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) | |
32.01
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| This exhibit is attached to the copy of this report available through our website at www.crescent.com and to the copy of this report available at the SECs website at www.sec.gov. |