Supplemental Information First Quarter 2023
2 Table of Contents Page Company Highlights 4 Financial Information 8 Debt & Capitalization 19 Leasing Activity & Asset Management 25 Components of Net Asset Value 28 Property Information 30 Portfolio Characteristics 35 Notes & Definitions 55
Company Highlights
4 High-Quality Portfolio of Office & Industrial Properties Net-Leased to a Diversified Pool of Creditworthy Tenants2 78 Properties 19.0M Square Feet 24 States 95.3%1 Leased 23%/58%/19%1 Industrial/ Office/Other 6.9 Years1 WALT 61.5%1 Investment Grade 1.9% Avg. Annual Rent Escalations 1 Based on annualized base rent. See "Notes and Definitions" for an explanation of how the Company defines "investment grade." 2 Peakstone Realty Trust has no affiliation, connection or association with and is not sponsored or approved by the tenants of its properties. Peakstone Realty Trust has not approved or sponsored its tenants or their products and services. All product and company names, logos and slogans are the trademarks or service marks of their respective owners. Office Industrial Wholly-Owned Portfolio Snapshot As of March 31, 2023 Unaudited Unaudited
5 (Unaudited, USD in thousands) Number of Properties Economic Occupancy Total Rentable Square Feet WALT (years) Annualized Base Rent Investment Grade Credit by Segment5 Industrial1 19 100.0 % 9,001,800 6.8 $ 48,339 58.7 % Office2 38 98.2 6,184,400 8.2 124,329 67.3 TOTAL / WEIGHTED AVERAGE INDUSTRIAL AND OFFICE 57 99.3 % 15,186,200 7.8 172,668 64.9 % Other3 21 75.6 3,787,300 2.9 40,690 47.1 TOTAL / WEIGHTED AVERAGE PORTFOLIO 78 94.6 % 18,973,500 4 6.9 $ 213,358 61.5 % 1 The Industrial segment consists of high-quality, well-located industrial properties with modern specifications. 2 The Office segment consists of newer, high-quality, and business-essential office properties. 3 The Other segment consists of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools. This segment includes properties that are either non-stabilized, leased to tenants with shorter lease terms or are being evaluated for repositioning, re-leasing or potential sale. 4 Includes approximately 9K of square feet subject to leases with third parties for building amenities that do not generate net rent (e.g., health clubs and management offices). 5 Based on percent of annualized base rent. See "Notes and Definitions" for an explanation of how the Company defines "investment grade." Wholly-Owned Portfolio As of March 31, 2023
6 Consolidated Leverage $500.5 million36.3% Net Debt + Preferred / Total Gross Real Estate (consol.) $0.37 / $0.68 FFO/AFFO Per Share/Unit2 7.1x Net Debt + Preferred / Normalized EBITDAre (consol.) Total Revenues $67.0 million Same Store Cash NOI Liquidity3 1 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,999,325. 2 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,999,325 and weighted average number of OP Units outstanding of 3,537,654 for a total of 39,536,979 shares. 3 See"Debt & Capitalization" section for liquidity calculation. 94.6%/95.3% Occupied/Leased First Quarter Highlights • Sold three properties for $169.6 million of gross disposition proceeds. • Amended existing corporate credit facility (the "Facility") to add an additional extension option to the revolving credit facility (the "Revolver") through January 2026. • Paid off the $400 million 2024 Facility term loan using capacity from the Revolver. • Paid off a $19.1 million secured loan. • Board of Trustees declared $0.075 per common share dividend for March 2023. • Completed a one-for-nine reverse share split, which is reflected in all per share metrics. First Quarter 2023 Highlights (unaudited) Net Income Attributable to Common Shareholders Per Share1 $0.17 Debt Ratio Subsequent Events Highlights • On April 10, 2023, redeemed all preferred shares (being 5 million Series A Preferred Shares which were issued to and held by a third-party international investor). • On April 13, 2023, listed our common shares on the New York Stock Exchange (“NYSE”) under the ticker “PKST”. $48.4 million
Financial Information
8 1 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,999,325. 2 Calculated based on weighted average number of common shares outstanding - basic and diluted of 35,999,325 and weighted average number of OP Units outstanding of 3,537,654 for a total of 39,536,979 shares. 3 Includes approximately 9K of square feet subject to leases with third parties for building amenities that do not generate net rent (e.g., health clubs and management offices). 4 All Series A Preferred Shares were redeemed subsequent to quarter-end. For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 SELECTED FINANCIAL DATA Net income attributable to common shareholders per share - basic and diluted1 $ 0.17 $ (6.34) $ (3.08) $ (2.00) $ — FFO per share/unit - basic and diluted2 $ 0.37 $ (3.09) $ 0.68 $ 1.43 $ 1.34 AFFO per share/unit - basic and diluted2 $ 0.68 $ 0.75 $ 1.08 $ 1.57 $ 1.41 Interest expense $ 17,014 $ 16,501 $ 24,283 $ 22,366 $ 21,666 Operating margin 79.9 % 78.9 % 76.0 % 78.2 % 77.5 % Normalized EBITDAre $ 58,383 $ 57,924 $ 64,350 $ 86,861 $ 80,230 Adjusted EBITDA $ 41,144 $ 42,553 $ 67,968 $ 84,151 $ 77,046 WHOLLY-OWNED PORTFOLIO STATISTICS Rentable Square Feet 3 18,973,500 19,889,700 21,058,200 29,159,400 29,157,000 Economic Occupancy 94.6 % 94.8 % 95.1 % 92.7 % 93.4 % Leased (based on portfolio square feet) 95.3 % 95.5 % 95.6 % 93.0 % 93.9 % CAPITALIZATION Outstanding Common Shares 36,006,922 35,999,898 36,007,433 36,082,283 36,079,527 Weighted average number of common shares outstanding - basic and diluted 35,999,325 35,999,203 36,081,363 36,079,905 36,071,465 Weighted-average outstanding OP Units 3,537,654 3,537,654 3,537,654 3,537,654 3,537,654 Series A Preferred Shares4 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 Total Consolidated Debt $ 1,468,930 $ 1,489,803 $ 1,491,689 $ 2,536,910 $ 2,539,316 Total Cash, Cash Equivalents and Restricted Cash $ 370,209 $ 237,944 $ 87,883 $ 222,293 $ 203,303 Selected Financial Data
9 For the Quarter Ended (Unaudited, USD in thousands) 3/31/20231 12/31/20222 9/30/20222 6/30/20222 3/31/20222 REVENUES BY SEGMENT Industrial $ 14,594 $ 15,945 $ 15,095 $ 14,807 $ 15,500 Office 39,189 45,643 72,128 93,494 85,846 Industrial and Office Total 53,783 61,588 87,223 108,301 101,346 Other 13,190 14,305 14,107 14,772 14,843 Total Revenues $ 66,973 $ 75,893 $ 101,330 $ 123,073 $ 116,189 NOI BY SEGMENT Industrial $ 12,630 $ 13,564 $ 13,389 $ 13,111 $ 13,413 Office 32,852 37,320 54,374 72,793 66,493 Industrial and Office Total 45,482 50,884 67,763 85,904 79,906 Other 8,037 8,998 9,291 10,307 10,168 Total NOI $ 53,519 $ 59,882 $ 77,054 $ 96,211 $ 90,074 CASH NOI BY SEGMENT Industrial $ 12,394 $ 13,300 $ 12,846 $ 12,798 $ 13,112 Office 29,396 32,723 52,782 70,903 64,537 Industrial and Office Total 41,790 46,023 65,628 83,701 77,649 Other 8,226 8,626 8,336 9,678 9,490 Total Cash NOI $ 50,016 $ 54,649 $ 73,964 $ 93,379 $ 87,139 Selected Financial Data (continued) 1See "Non-GAAP Financial Measures " for reconciliations of NOI to Cash NOI for the periods ending 3/31/2023 and 3/31/2022. 2See "Notes and Definitions" for reconciliations of NOI to Cash NOI for the interim periods ending 12/31/2022, 9/30/2022, and 6/30/2022.
10 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 REVENUES Rental income $ 66,973 $ 75,893 $ 101,330 $ 123,073 $ 116,189 EXPENSES Property operating expense 7,110 9,357 13,716 14,335 15,043 Property tax expense 5,822 6,065 9,737 11,482 10,033 Property management fees to non-affiliates 522 589 823 1,045 1,039 General and administrative expenses 9,912 11,706 9,772 8,892 9,523 Corporate operating expenses to affiliates 378 284 140 416 510 Depreciation and amortization 31,356 35,275 42,628 59,980 52,863 Real estate impairment provision — 41,323 10,697 75,557 — Total expenses 55,100 104,599 87,513 171,707 89,011 Income (loss) before other income and (expenses) 11,873 (28,706) 13,817 (48,634) 27,178 OTHER INCOME (EXPENSES) Interest expense (17,014) (16,501) (24,283) (22,366) (21,666) Other income (loss), net 1,396 (181) 89 (54) 101 Extinguishment of debt — — (13,249) — — Net loss from investment in unconsolidated entity (14,661) (9,993) — — — Gain (loss) from disposition of assets, net 30,610 (43,767) (95,513) — — Goodwill impairment provision — (135,270) — — — Transaction expense (3,187) (13,724) (234) (5,545) (2,883) NET INCOME (LOSS) 9,017 (248,142) (119,373) (76,599) 2,730 Distributions to redeemable preferred shareholders (2,376) (2,516) (2,516) (2,516) (2,516) Net (income) loss attributable to noncontrolling interests (585) 22,071 10,710 6,952 (19) Net income (loss) attributable to controlling interests 6,056 (228,587) (111,179) (72,163) 195 Distributions to redeemable noncontrolling interests attributable to common shareholders (23) (45) (45) (44) (44) NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 6,033 $ (228,632) $ (111,224) $ (72,207) $ 151 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS PER BASIC & DILUTED SHARE $ 0.17 $ (6.34) $ (3.08) $ (2.00) $ — WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC & DILUTED 35,999,325 35,999,203 36,081,363 36,079,905 36,071,465 Consolidated Statement of Operations
11 As of (Unaudited, USD in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 ASSETS Cash and cash equivalents $ 368,210 $ 233,180 $ 75,838 $ 202,655 $ 184,209 Restricted cash 1,999 4,764 12,045 19,638 19,094 Real estate Land 316,341 327,408 380,998 573,306 584,291 Building and improvements 2,523,243 2,631,965 2,865,548 4,029,828 4,107,554 Tenant origination and absorption cost 524,750 535,889 598,662 853,542 876,324 Construction in progress 8,223 1,994 2,795 4,581 3,081 TOTAL REAL ESTATE 3,372,557 3,497,256 3,848,003 5,461,257 5,571,250 Less accumulated depreciation and amortization (638,428) (644,639) (682,814) (1,066,176) (1,044,790) Total real estate, net 2,734,129 2,852,617 3,165,189 4,395,081 4,526,460 Investments in unconsolidated entity 164,876 178,647 194,485 — — Intangible assets, net 32,870 33,861 35,281 40,179 41,784 Deferred rent receivable 69,677 79,572 81,156 111,507 112,195 Deferred leasing costs, net 20,262 26,507 26,268 48,835 43,422 Goodwill 94,678 94,678 229,948 229,948 229,948 Due from affiliates — — 226 226 276 Right of use asset 35,013 35,453 35,894 39,997 40,362 Interest rate swap asset 33,038 41,404 42,724 21,905 17,133 Other assets 29,854 31,877 35,347 39,045 35,435 Real estate assets and other assets held for sale, net — 20,816 — — — TOTAL ASSETS $ 3,584,606 $ 3,633,376 $ 3,934,401 $ 5,149,016 $ 5,250,318 Consolidated Balance Sheet
12 As of (Unaudited, USD in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 LIABILITIES AND EQUITY Debt, net $ 1,461,584 $ 1,485,402 $ 1,486,783 $ 2,529,228 $ 2,531,067 Restricted reserves 627 627 7,150 8,417 8,465 Interest rate swap liability — — — — 4,926 Distributions payable 5,164 12,402 12,111 12,078 12,393 Due to affiliates 876 1,458 1,636 1,690 2,532 Intangible liabilities, net 19,818 20,658 22,989 27,420 29,175 Lease liability 46,320 46,519 46,598 52,244 52,088 Accrued expenses and other liabilities 79,114 80,175 85,096 110,815 103,669 TOTAL LIABILITIES 1,613,503 1,647,241 1,662,363 2,741,892 2,744,315 Perpetual convertible preferred shares1 125,000 125,000 125,000 125,000 125,000 Noncontrolling interests subject to redemption 3,801 3,812 3,812 4,671 4,671 SHAREHOLDERS’ EQUITY Common Shares 36 36 325 325 325 Additional paid-in capital 2,950,706 2,948,600 2,952,618 2,954,932 2,953,256 Cumulative distributions (1,051,551) (1,036,678) (1,007,957) (979,028) (950,635) Accumulated (loss) income (263,893) (269,926) (41,293) 69,927 142,134 Accumulated other comprehensive income (loss) 33,847 40,636 40,097 21,078 12,204 TOTAL SHAREHOLDERS’ EQUITY 1,669,145 1,682,668 1,943,790 2,067,234 2,157,284 Noncontrolling interests 173,157 174,655 199,436 210,219 219,048 TOTAL EQUITY 1,842,302 1,857,323 2,143,226 2,277,453 2,376,332 TOTAL LIABILITIES AND EQUITY $ 3,584,606 $ 3,633,376 $ 3,934,401 $ 5,149,016 $ 5,250,318 Consolidated Balance Sheet (continued) 1 All Series A Preferred Shares were redeemed subsequent to quarter-end.
13 For the Quarter Ended For the Quarter Ended 3/31/2023 3/31/2022 (Unaudited, USD in thousands) Industrial Office Industrial and Office Total Other Total Portfolio Industrial Office Industrial and Other Total Other Total Portfolio Revenue $ 14,594 $ 39,189 $ 53,783 $ 13,190 $ 66,973 $ 15,500 $ 85,846 $ 101,346 $ 14,843 $ 116,189 Operating Property Expense (842) (3,394) (4,236) (2,874) (7,110) (996) (11,451) (12,447) (2,596) (15,043) Property Tax Expense (1,059) (2,706) (3,765) (2,057) (5,822) (1,028) (7,163) (8,191) (1,842) (10,033) Management Fees (Non-Affiliate) (63) (237) (300) (222) (522) (63) (743) (806) (233) (1,039) TOTAL NOI 12,630 32,852 45,482 8,037 53,519 13,413 66,489 79,902 10,172 90,074 NON-CASH ADJUSTMENTS: Straight Line Rent (117) (4,457) (4,574) 315 (4,259) (215) (2,518) (2,733) 192 (2,541) In-Place Lease Amortization (95) 99 4 (126) (122) (86) (211) (297) (116) (413) Deferred Termination Income (24) — (24) — (24) — — — (758) (758) Deferred Ground Lease — 433 433 — 433 — 512 512 5 517 Other Intangible Amortization — 368 368 — 368 — 368 368 — 368 Inducement Amortization — 101 101 — 101 — 69 69 — 69 TOTAL CASH NOI $ 12,394 $ 29,396 $ 41,790 $ 8,226 $ 50,016 $ 13,112 $ 64,709 $ 77,821 $ 9,495 $ 87,316 Non-GAAP Financial Measures NOI and Cash NOI Quarter Ended
14 1 The decrease in same store quarter-to-date Cash NOI of $2.5 million is primarily due to a $2.2 million rent concession related to a lease renewal. For the Quarter Ended (Unaudited, USD in thousands) 3/31/2023 3/31/2022 CASH NOI ALLOCATION � Industrial $ 12,394 $ 13,112 Office 29,396 64,709 Industrial and Office Total $ 41,790 $ 77,821 � Other 8,226 9,495 TOTAL CASH NOI $ 50,016 $ 87,316 SAME STORE CASH NOI ADJUSTMENTS � � Recently acquired properties — — Recently disposed properties (1,570) (36,448) � Operating Partnership — 25 TOTAL SAME STORE CASH NOI ADJUSTMENTS (1,570) (36,423) TOTAL SAME STORE CASH NOI $ 48,446 $ 50,893 SAME STORE CASH NOI � Industrial $ 12,081 $ 11,973 Office 28,139 29,405 Industrial and Office Total $ 40,220 $ 41,378 Other 8,226 9,515 TOTAL SAME STORE CASH NOI $ 48,446 $ 50,893 Change in Same Store Cash NOI ($)1 $ (2,447) Change in Same Store Cash NOI (%)1 (4.8) % NUMBER OF SAME STORE PROPERTIES 78 TOTAL SAME STORE SQUARE FEET 18,973,500 SAME STORE ECONOMIC OCCUPANCY 94.6 % Non-GAAP Financial Measures (continued) Same Store NOI and Cash NOI
15 For the Quarter Ended (Unaudited, USD in thousands, except per share metrics) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Reconciliation of Net Income to Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) GAAP NET (LOSS) INCOME $ 9,017 $ (248,142) $ (119,373) $ (76,599) $ 2,730 Depreciation of building and improvements 20,054 22,336 26,268 32,494 32,093 Amortization of leasing costs and intangibles 11,397 13,037 16,456 27,575 20,858 Impairment provision, real estate — 41,323 10,697 75,557 — Equity interest of depreciation of building and improvements - unconsolidated entities 7,238 4,643 — — — (Gain)/Loss from disposition of assets, net (30,610) 43,767 95,513 — — Company's share of loss on sale of unconsolidated entity — 3,558 — — — FFO $ 17,096 $ (119,478) $ 29,561 $ 59,027 $ 55,681 Distribution to redeemable preferred shareholders (2,376) (2,515) (2,516) (2,516) (2,516) FFO attributable to common shareholders and limited partners $ 14,720 $ (121,993) $ 27,045 $ 56,511 $ 53,165 Reconciliation of FFO to AFFO: FFO attributable to common shareholders and limited partners $ 14,720 $ (121,993) $ 27,045 $ 56,511 $ 53,165 Revenues in excess of cash received, net (4,283) (5,199) (3,521) (3,389) (3,298) Amortization of share-based compensation 2,556 3,433 2,698 1,685 1,757 Deferred rent - ground lease 433 433 490 511 517 Amortization of above/(below) market rent, net (122) (923) (436) (432) (414) Unrealized loss (gain) on investments (32) 15 22 68 90 Amortization of debt premium/(discount), net 102 103 103 102 101 Amortization of below tax benefit amortization 368 377 377 372 368 Amortization of ground leasehold interests (96) (98) (95) (90) (89) Amortization of deferred financing costs 1,274 993 920 840 791 Company's share of amortization of deferred financing costs- unconsolidated entity 9,632 3,740 — — — Amortization of lease inducements 101 79 105 284 69 Company's share of revenues in excess of cash received (straight-line rents) - unconsolidated entity (826) (257) — — — Company's share of amortization of above market rent - unconsolidated entity (288) (58) — — — Write-off of transaction costs 32 — — 10 18 Employee separation expense — — — 2 70 Loss on debt breakage costs — write-off of deferred financing costs — — 1,771 — — Transaction expenses 3,187 13,724 234 5,545 2,883 Impairment provision, goodwill — 135,270 — — — Debt breakage costs — — 13,249 — — AFFO available to common shareholders and limited partners $ 26,758 $ 29,639 $ 42,962 $ 62,019 $ 56,028 FFO per share, basic and diluted $ 0.37 $ (3.09) $ 0.68 $ 1.43 $ 1.34 AFFO per share, basic and diluted $ 0.68 $ 0.75 $ 1.08 $ 1.57 $ 1.41 Weighted-average common shares outstanding - basic and diluted EPS 35,999,325 35,999,203 36,079,905 36,081,363 36,071,465 Weighted-average OP Units 3,537,654 3,537,654 3,537,654 3,537,654 3,537,654 Weighted-average common shares and OP Units outstanding - basic and diluted FFO/AFFO 39,536,979 39,536,857 39,617,559 39,619,017 39,609,119 Non-GAAP Financial Measures (continued) FFO and AFFO
16 For the Quarter Ended (Unaudited, USD in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Reconciliation of Net income (loss) to EBITDAre Net (loss) income $ 9,017 $ (248,142) $ (119,373) $ (76,599) $ 2,730 Interest 17,014 16,501 24,283 22,366 21,666 Depreciation and amortization 31,356 35,275 42,628 59,980 52,863 EBITDA 57,387 (196,366) (52,462) 5,747 77,259 (Gain) Loss on sales of real estate, net (30,610) 43,767 95,513 — — Extinguishment of debt — — 13,249 — — Loss on investment in unconsolidated entity 14,661 9,993 — — — Impairment provision, real estate — 41,323 10,697 75,557 — Proportion share of adjustments for unconsolidated entities 13,468 5,121 — — — EBITDAre 54,906 (96,162) 66,997 81,304 77,259 Adjustment for acquisitions and dispositions (1,694) (2,578) (2,881) — — Write-off of transaction costs — — — 10 18 Employee separation expense — — — 2 70 Adjustment for joint venture acquisition 1,984 7,670 — — — Impairment provision, goodwill — 135,270 — — — Transaction expenses 3,187 13,724 234 5,545 2,883 Normalized EBITDAre 58,383 57,924 64,350 86,861 80,230 Reconciliation of Normalized EBITDAre to Adjusted EBITDA (per the credit facility) Amortization of deferred financing costs 1,274 993 2,691 840 791 Amortization of debt premium/(discount), net 102 103 103 102 101 Amortization of above/(below) market rent, net (122) (923) (436) (432) (414) Amortization of other Intangibles 368 377 377 372 331 Income taxes 184 174 251 142 368 Property management fees to non-affiliates 522 589 823 1,045 1,039 Deferred rent (3,850) (4,765) (3,031) (2,879) (2,782) Adjustment to Interest (1,376) (1,096) 613 (932) (1,636) Adjustment for write-off of transaction costs — — — (10) (18) Adjustment for unconsolidated joint venture (15,452) (12,791) — — — Reversal of adjustment for acquisitions and dispositions 1,694 2,578 2,881 — — Less: Capital reserves (583) (610) (654) (958) (964) Adjusted EBITDA (per the credit facility) $ 41,144 $ 42,553 $ 67,968 $ 84,151 $ 77,046 Non-GAAP Financial Measures (continued) EBITDA, EBITDAre, Normalized EBITDAre & Adjusted EBITDA (per the credit facility)
17 For the Quarter Ended (Unaudited, USD in thousands) 3/31/2023 % of NOI1 12/31/2022 % of NOI1 9/30/2022 % of NOI1 6/30/2022 % of NOI1 3/31/2022 % of NOI1 Maintenance Capital Expenditures by segment: Industrial $ 83 0.2 % $ 358 0.6 % $ — — % $ — — % $ — — % Office — — 776 1.3 409 0.6 882 0.9 1,082 1.2 Total Industrial and Office $ 83 — % $ 1,134 1.9 % $ 409 0.6 % $ 882 0.9 % $ 1,082 1.2 % Other 69 0.1 % 12 — 2 — — — 1 — Total Maintenance Capital Expenditures $ 152 0.1 % $ 1,147 1.9 % $ 411 0.6 % $ 882 0.9 % $ 1,083 1.2 % Value Enhancing Expenditures by segment: Industrial $ — — % $ — — % $ 5,879 7.9 % $ 8 — % $ 2 — % Office — — 1,799 3.0 — — 2,714 2.8 414 0.5 Total Industrial and Office $ — — % $ 1,799 3.0 % $ 5,879 7.9 % $ 2,722 2.8 % $ 416 0.5 % Other 694 1.3 548 0.9 1,926 2.6 — — 781 0.9 Total Value Enhancing Expenditures $ 694 1.3 % $ 2,347 3.9 % $ 7,727 10.5 % $ 2,722 2.8 % $ 1,197 1.4 % Total Capital Expenditures $ 846 1.4 % $ 3,494 5.8 % $ 8,138 11.1 % $ 3,604 3.7 % $ 2,280 2.6 % 1 Represents percentage of capital expenditures compared to consolidated NOI. Capital Expenditures Summary (Cash Basis)
Debt & Capitalization
19 1 Excludes the impact of fixed-rate swaps. 2 As of 9/28/22, the Secured Overnight Financing Rate ("SOFR" or "SOF rate") replaced LIBOR as the applicable reference rate for our variable rate debt. The amounts listed in this section are inclusive of the 4.80% SOF rate effective as of 3/31/23, plus spread of 1.40% (Term Loans) or 1.45% and 0.1% index (Revolver Loan). The effective interest rate of the $950 million of term loans are inclusive of the Company's fixed-rate interest swaps. 3 The Revolver Loan is subject to a series of extension options through January 31, 2026, which can be utilized if certain conditions are met and upon payment of an extension fee. 4 Percentage of floating-rate debt includes impact of fixed-rate swaps. 5 All Series A Preferred Shares were redeemed subsequent to quarter-end. 6 Refer to the next section for "Unconsolidated Net Debt", which is presented separately since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee requirement related to the debt of the unconsolidated joint venture. (Unaudited, USD in thousands) Capitalization - Consolidated Debt Ratios - Consolidated Contractual Rate1 Effective Rate2 Term1 Net Debt + Series A Preferred Equity /Total Gross Real Estate 36.3 % SECURED DEBT Net Debt / Total Gross Real Estate 32.6 % Fixed-Rate Mortgages 4.49% 4.49% 4.27 $ 518,930 Net Debt + Series A Preferred Equity / Normalized EBITDAre (Consolidated) 7.1x TOTAL SECURED DEBT 518,930 Net Debt / Normalized EBITDAre (Consolidated) 6.4x UNSECURED DEBT 2 Net Debt + Series A Preferred Equity / Adjusted EBITDA 7.4x Revolver Loan 3 6.35% 4.04% 2.8 400,000 Net Debt / Adjusted EBITDA 6.7x 2025 Term Loan 6.30% 4.53% 3.1 400,000 Unsecured Debt / Total Gross Real Estate 28.2 % 2026 Term Loan 6.30% 2.50% 2.7 150,000 Unsecured properties / Total properties (based on ABR) 59.7 % Total Unsecured Debt 950,000 Unsecured properties / Total properties (based on acquisition price) 64.1 % TOTAL CONSOLIDATED DEBT 1,468,930 Percentage of Floating-Rate Debt 4 13.6 % Less: Cash & cash equivalents - excl. restricted (368,210) NET DEBT6 1,100,720 Liquidity - Consolidated Series A Preferred Equity5 125,000 TOTAL REVOLVER BORROWING BASE COMMITMENTS $ 1,082,252 NET DEBT + SERIES A PREFERRED EQUITY $ 1,225,720 Borrowing base availability $ 1,082,252 Outstanding revolver and term loan (950,000) COMMON EQUITY & OP UNITS REVOLVER AVAILABLE CAPACITY $ 132,252 Common Equity 36,007 Cash and cash equivalents (excl. restricted) $ 368,210 OP Units 3,538 Revolver remaining capacity 132,252 COMMON EQUITY & OP UNITS 39,545 TOTAL LIQUIDITY $ 500,462 Capitalization & Liquidity Overview - Consolidated As of March 31, 2023
20 1 Unconsolidated Net debt is presented separately since PKST has no obligation to contribute capital to the unconsolidated joint venture and has no guarantee requirement related to the debt of the unconsolidated joint venture. 2 All Series A Preferred Shares were redeemed subsequent to quarter-end. (Unaudited, USD in thousands) Capitalization - Pro Rata TOTAL CONSOLIDATED DEBT $ 1,468,930 Less: Cash & cash equivalents - excl. restricted (368,210) NET DEBT 1,100,720 Unconsolidated Debt - pro rata share 525,280 Unconsolidated Cash & cash equivalents - excl. restricted - pro rata share (10,854) UNCONSOLIDATED NET DEBT (PRO RATA SHARE)1 514,426 NET DEBT (PRO RATA SHARE) 1,615,146 Series A Preferred Equity2 125,000 NET DEBT (PRO RATA SHARE) + SERIES A PREFERRED EQUITY $ 1,740,146 Debt Ratios - Pro Rata Net Debt (pro rata share) + Series A Preferred Equity / Normalized EBITDAre 7.5x Net Debt (pro rata share) / Normalized EBITDAre 6.9x Capitalization & Liquidity Overview - Consolidated (Pro Rata Share) As of March 31, 2023
21 As of (Unaudited, USD in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 SECURED FIXED-RATE DEBT Mortgage borrowings on wholly-owned portfolio $ 518,930 $ 539,803 $ 541,689 $ 1,013,410 $ 1,015,816 Total Secured Fixed-Rate Debt 518,930 539,803 541,689 1,013,410 1,015,816 UNSECURED FLOATING-RATE DEBT Revolving Credit Facility: Revolver Loan 400,000 — — 373,500 373,500 2023 Term Loan — — — 200,000 200,000 2024 Term Loan — 400,000 400,000 400,000 400,000 2025 Term Loan 400,000 400,000 400,000 400,000 400,000 2026 Term Loan 150,000 150,000 150,000 150,000 150,000 Total Unsecured Floating-Rate Debt 950,000 950,000 950,000 1,523,500 1,523,500 TOTAL CONSOLIDATED DEBT $ 1,468,930 $ 1,489,803 $ 1,491,689 $ 2,536,910 $ 2,539,316 Fixed charge coverage (per the credit facility) 1.84x 2.2x 2.3x 3.4x 3.3x Interest coverage ratio (per the credit facility) 2.63x 2.8x 2.7x 3.9x 3.9x Consolidated Debt Summary
22 (Unaudited, USD in thousands) SECURED DEBT Collateral Contractual Interest Rate Maturity Date Outstanding Balance INDUSTRIAL AND OFFICE Samsonite Mortgage Loan 6.08% 9/1/2023 $ 17,708 Pepsi Bottling Ventures Mortgage Loan 3.69% 10/1/2024 17,738 BOA II Loan 1 4.32% 5/1/2028 250,000 Total Industrial and Office 285,446 OTHER Highway 94 Mortgage Loan 3.75% 8/1/2024 12,486 AIG Loan II 2 4.15% 11/1/2025 121,743 AIG Loan 3 4.96% 2/1/2029 99,255 Total Other 233,484 Total Consolidated Secured Debt $ 518,930 1 The BOA II portfolio includes the following properties: IGT, 3M, Amazon, and Southern Company. 2 The AIG II portfolio includes the following properties: Owens Corning, Westgate II (Wood Group), Administrative Offices of the Pennsylvania Courts, Wyndham Worldwide, MGM Corporate Center, and Hitachi Astemo 3 The AIG portfolio includes the following properties: Northrop Grumman, Schlumberger, Raytheon Technologies, Avnet, and 30 Independence. Consolidated Secured Debt Schedule As of March 31, 2023
23 1 Represents the Samsonite mortgage loan. | 2 Represents the Highway 94 mortgage loan. | 3 Represents the Pepsi Bottling Ventures mortgage loan. | 4 Represents the AIG II mortgage loan. | 5 Represents the 2025 Term Loan. | 6 Represents the 2026 Term Loan. | 7 Represents the Revolving Line of Credit. The Revolver has a maturity date of September 2023 and can be extended through January 2026, subject to the satisfaction certain customary conditions and payment of extension fees. | 8Represents the BOA II Loan. | 9 Represents the AIG Loan. | 10 Principal repayments on the individual mortgages do not include the net debt premium/(discount) of $0.3 million and deferred financing costs of $(7.7) million. $141,194(1) $200,000(3) $400,000(5) $17,708 $— $250,000 $30,224 $521,743 $99,255 2025 and 2026 Term loans Mortgage loans (Industrial and Office) Mortgage loans (Other) Revolver 2023 2024 2025 2026 2027 2028 2029 (Unaudited, USD in thousands) Statistics (Including Effect of Swaps) Fixed Floating Total Amount $1,268,930 $200,000 $1,468,930 Percentage of Total Consolidated Debt 86% 14% 100% W.A. Term Remaining (Yrs) 3.4 2.8 3.3 W.A. Interest Rate (%) 4.0% 6.4% 4.2% (1) 8 9 $121,7434 $400,0005 1 17,738 3 12,486 2 Consolidated Debt Maturity Schedule (Including Effect of Interest Rate Swaps) As of March 31, 2023 $150,0006 $400,000 7 10 10 $550,000
Leasing Activity & Asset Management
25 NEW AND RENEWAL LEASES Tenant / Property Location New Lease Start Date New Lease Expiration Date Term (Yrs) Square Feet Leasing Commissions $/ SF Tenant Improvement $/SF Starting Net Rent/ SF Prior Net Rent/SF Net Rent Change From Prior Lease OFFICE LEASING NEW LEASES GMH Capital Partners Phoenix, AZ 2/1/2023 5/31/2025 2.3 2,522 $ 2.03 $ — $ 20.00 N/A N/A New leases total / weighted average 2.3 2,522 2.03 0.00 20.00 N/A N/A RENEWAL LEASES None Total renewal (office) - leases/weighted average INDUSTRIAL LEASING NEW LEASES None New leases total / weighted average RENEWAL LEASES None Total renewal (industrial) - leases/weighted average Total / weighted average 2.3 2,522 $ 2.03 $ — $ 20.00 N/A N/A TERMINATIONS/CONTRACTIONS Tenant Location Previous Lease Expiration Date Termination Date Square Feet Termination Income None Leasing Activity - Executed Leases For the Quarter-Ended March 31, 2023
26 1 Occupancy changes reflect leasing activity commencing during the quarter. 2 Expiring square footage includes square footage for tenants who have signed renewal leases. 3 Retention rate: Renewal leases divided by expiring square footage. For the Quarter-Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 PORTFOLIO SQUARE FOOTAGE CHANGES Total square feet at beginning of period 19,889,700 21,057,700 29,159,000 29,157,000 29,157,000 Acquisitions — — — — Dispositions (918,000) (1,168,700) (8,101,300) — — Remeasurements / other 1,800 700 — 2,000 — Total square feet at end of period 18,973,500 19,889,700 21,057,700 29,159,000 29,157,000 OCCUPANCY CHANGES 1 Occupied square feet beginning of period / Occupancy Rate 18,850,400 / 94.8 % 20,030,200 / 95.1 % 27,023,400 / 92.7 % 27,223,000 / 93.4 % 27,340,800 / 93.8 % Expirations: Expiring square footage (193,700) — (453,200) (335,200) (83,600) Lease terminations — (70,300) (32,000) (135,030) (124,400) Total expirations (193,700) (70,300) (485,200) (470,230) (208,000) Leases commencing: Renewal leases 193,700 — — 72,200 6,100 New leases 19,200 58,800 362,100 190,900 84,100 Expansion leases — — — 7,500 — Other — — — — — Total leasing activity 212,900 58,800 362,100 270,600 90,200 Occupied acquired square feet — — — — Occupied disposed square feet (918,000) (1,169,400) (6,870,100) — — Total occupancy activity from acquisitions & dispositions (918,000) 100 % (1,169,400) / 100 % (6,870,100) — — Other occupancy activity — 700 — — — Total occupancy activity (898,800) (1,180,200) (6,993,200) (199,630) (117,800) Occupied square feet at end of period / Occupancy Rate 17,951,600 94.6 % 18,850,400 / 94.8 % 20,030,200 / 95.1 % 27,023,400 / 92.7 % 27,223,000 / 93.4 % Retention3 100% —% —% 22% 7% Leasing Activity – Economic Occupancy Summary
Components of Net Asset Value
28 (Unaudited, USD in thousands) Annualized Base Rent Balance Sheet Components (cont'd) ABR Percentage of ABR LIABILITIES Industrial � � � Revolving credit facility and term loans2 $ 950,000 Investment grade1 $ 28,379 13.3 % Mortgages payable2 519,000 � Sub-investment grade1 15,096 7.1 Accrued tenant improvements 6,980 Unrated credit 4,864 2.3 � Prepaid tenant rent 15,518 48,339 22.7 Real estate taxes payable 4,813 Office � Restricted reserves 627 Investment grade1 83,623 39.2 Deferred compensation 8,636 Sub-Investment grade1 34,524 16.2 � Distributions payable 5,164 Unrated credit 6,182 2.9 Interest payable 10,114 124,329 58.3 Other liabilities 29,821 Other TOTAL LIABILITIES $ 1,550,673 Investment grade1 19,168 9.0 Sub-investment grade1 20,092 9.4 SERIES A PREFERRED SHARES3 $ 125,000 Unrated credit 1,430 0.6 40,690 19.0 COMMON SHARES + OP UNITS OUTSTANDING 39,545,000 WHOLLY-OWNED PORTFOLIO $ 213,358 100.0 % Balance Sheet Components Real Estate Gross Book Value NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS REAL ESTATE GROSS BOOK VALUE � Cash and cash equivalents $ 368,210 Industrial $ 740,421 Restricted cash 1,999 Office 1,915,789 � Construction in progress 8,223 Industrial and Office Total 2,656,210 Investments in unconsolidated entity 164,876 Other 716,347 Goodwill/operating company 94,678 WHOLLY-OWNED PORTFOLIO $ 3,372,557 � Cash - surrender value (DCP) 12,830 Tenant rent receivable 1,130 � Prepaid insurance 1,768 Swap assets 41,404 Other assets 14,126 TOTAL NON-OPERATING, NON-COMMERCIAL REAL ESTATE ASSETS $ 709,244 Components of Net Asset Value As of March 31, 2023 1 See "Notes and Definitions" for an explanation of how the Company defines "investment grade." 2 Excludes debt premium and deferred financing costs. 3 All Series A Preferred Shares were redeemed subsequent to quarter-end.
Property Information
30 USD in thousands, except annualized base rent / SF metrics Segment Property/Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub Type Year Built/ Renovated1 Property WALT % of Total ABR3 1 Industrial RH 825 Rogers Road Stockton/Modesto CA 1,501,400 Single Tenant 100.0 % Warehouse 2015 7.4 1.2 % 2 Industrial Amazon (Etna) 11999 National Road Columbus OH 856,300 Single Tenant 100.0 % Warehouse 2016 — 4 0.5 % 3 Industrial 3M 1650 Macom Drive Chicago IL 978,100 Single Tenant 100.0 % Warehouse 2016 3.6 0.6 % 4 Industrial Samsonite 10480 Yeager Road Jacksonville FL 817,700 Single Tenant 100.0 % Warehouse 2008 1.7 1.5 % 5 Industrial Shaw Industries 445 Northport Parkway Savannah GA 1,001,500 Single Tenant 100.0 % Warehouse 2018 10.0 0.9 % 6 Industrial PepsiCo 8060 State Road 33 North Tampa FL 605,400 Single Tenant 100.0 % Warehouse 2018 5.3 1.1 % 7 Industrial Amcor 975 West Main Street Cleveland OH 586,700 Single Tenant 100.0 % Manufacturing 1997 9.6 0.3 % 8 Industrial Amazon (Arlington Heights) 1455 West Cellular Drive Chicago IL 182,900 Single Tenant 100.0 % Warehouse 2020 — 4 1.9 % 9 Industrial Pepsi Bottling Ventures 390 Business Park Drive Winston-Salem NC 526,300 Single Tenant 100.0 % Warehouse 2008 9.3 0.5 % 10 Industrial Roush Industries 333/777 Republic Drive Detroit MI 169,200 Single Tenant 100.0 % Industrial/R&D 2000 5.7 1.6 % 11 Industrial Berry Global 1515 Franklin Boulevard Chicago IL 193,700 Single Tenant 100.0 % Manufacturing 2003 9.8 2.3 % 12 Industrial OceanX 6390 Commerce Court Columbus OH 312,000 Single Tenant 100.0 % Warehouse 2015 6.3 0.7 % 13 Industrial Atlas Copco 3301 Cross Creek Parkway Detroit MI 120,000 Single Tenant 100.0 % Industrial/R&D 2014 2.5 0.6 % 14 Industrial Huntington Ingalls (500 W. Park Lane) 500 West Park Lane Hampton Roads VA 258,300 Single Tenant 100.0 % Warehouse 1999 4.8 0.8 % 15 Industrial Huntington Ingalls (300 W. Park Lane) 300 West Park Lane Hampton Roads VA 257,200 Single Tenant 100.0 % Warehouse 2000 4.8 0.7 % 16 Industrial ZF WABCO 8225 Patriot Boulevard Charleston SC 145,200 Single Tenant 100.0 % Warehouse 2016 10.4 0.6 % 17 Industrial TransDigm 110 Algonquin Parkway Northern New Jersey NJ 114,300 Single Tenant 100.0 % Manufacturing 1986 5.0 2.8 % 18 Industrial Hopkins 428 Peyton Street Emporia KS 320,800 Single Tenant 100.0 % Manufacturing 2000 13.8 3.4 % 19 Industrial Fidelity Building Services 25 Loveton Circle Baltimore MD 54,800 Single Tenant 100.0 % Industrial/R&D 1981 11.8 0.5 % INDUSTRIAL TOTAL 9,001,800 100.0 % 6.8 $ 48,339 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures. Property List As of March 31, 2023
31 USD in thousands, except annualized base rent / SF metrics Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type Leased %2 Property Sub Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 20 Office Southern Company 3525 & 3535 Colonnade Parkway Birmingham AL 669,400 Single Tenant 100.0 % Office 2018 21.0 4.3% 21 Office Keurig Dr. Pepper (53 South Avenue) 53 South Avenue Boston MA 280,600 Single Tenant 100.0 % Office 2014 6.6 1.3% 22 Office Freeport McMoRan 333 N. Central Ave Phoenix AZ 249,000 Single Tenant 100.0 % Office 2010 4.1 3.7% 23 Office Maxar Technologies 1300 West 120th Avenue Denver CO 430,000 Single Tenant 100.0 % Office 2002 7.3 3.5% 24 Office Terraces at Copley Point 5887 Copley Drive San Diego CA 201,700 Multi-Tenant 100.0 % Office 2009 5.2 1.1% 25 Office LPL (1055 & 1060 LPL Way) 1055 & 1060 LPL Way Charlotte SC 307,200 Single Tenant 100.0 % Office 2016 13.6 2.7% 26 Office Travel & Leisure, Co. 14 Sylvan Way Northern New Jersey NJ 203,500 Single Tenant 100.0 % Office 2013 6.4 2.7% 27 Office Wood Group (Westgate III) 17325 Park Row Houston TX 226,300 Single Tenant 100.0 % Office 2014 10.8 2.6% 28 Office IGT 6355 South Buffalo Drive Las Vegas NV 222,300 Single Tenant 100.0 % Office 2008 7.8 2.4% 29 Office International Paper 1740 International Drive Memphis TN 238,600 Single Tenant 100.0 % Office 2015 — 4 2.4% 30 Office onsemi (5701 N. Pima Road) 5701 N. Pima Road Phoenix AZ 133,400 Single Tenant 100.0 % Office 2017 — 4 1.5% 31 Office Zoetis 10 Sylvan Way Northern New Jersey NJ 125,700 Single Tenant 100.0 % Office 2016 — 4 1.5% 32 Office McKesson (5801 N. Pima Road) 5801 North Pima Road Phoenix AZ 124,900 Single Tenant 100.0 % Office 2019 — 4 1.4% 33 Office McKesson (5601 N. Pima Road) 5601 North Pima Road Phoenix AZ 138,200 Single Tenant 100.0 % Office 2017 — 4 1.5% 34 Office 40 Wight 40 Wight Avenue Baltimore MD 132,200 Single Tenant 93.0 % Office 2017 9.5 1.3% 35 Office York Space Systems (East Village) 6060 South Willow Drive Denver CO 138,100 Single Tenant 100.0 % Office/R&D 2020 8.8 1.4% 36 Office Corteva Agriscience 8501 NW 62nd Ave Des Moines IA 184,300 Single Tenant 100.0 % Office/Lab 2014 3.7 1.4% 37 Office Keurig Dr. Pepper (63 South Avenue) 63 South Avenue Boston MA 150,700 Single Tenant 100.0 % Office/Lab/R&D 2013 6.6 4.1% 38 Office LPL (1040 LPL Way) 1040 LPL Way Charlotte SC 144,400 Single Tenant 100.0 % Office 2016 13.6 1.3% 39 Office Toshiba TEC 3901 South Miami Boulevard Raleigh/Durham NC 200,800 Single Tenant 100.0 % Office 2016 5.1 1.2% 40 Office Mercury Systems 50 Minuteman Road Boston MA 145,300 Single Tenant 100.0 % Office/Lab 1997 9.1 1.2% Property List (continued) As of March 31, 2023 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures.
32 USD in thousands, except annualized base rent / SF metrics Segment Property/Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 41 Office Occidental Petroleum 501 North Division Street Platteville CO 114,500 Single Tenant 100.0 % Office 2013 10.5 1.1 % 42 Office Avnet (Phoenix) 2211 S 47th Street Phoenix AZ 176,400 Single Tenant 100.0 % Office 1997 3.4 1.0 % 43 Office PPG 400 Bertha Lamme Drive Pittsburgh PA 118,000 Single Tenant 100.0 % Office 2010 7.8 1.0 % 44 Office MISO 720 City Center Drive Indianapolis IN 133,400 Single Tenant 100.0 % Office 2016 5.1 1.0 % 45 Office Amentum (Heritage III) 13500 Heritage Parkway Dallas/Fort Worth TX 119,000 Single Tenant 100.0 % Office 2006 — 4 0.9 % 46 Office Draeger Medical Systems Six Tech Drive Boston MA 128,400 Single Tenant 100.0 % Office/Lab 2020 8.3 0.9 % 47 Office Fresenius Medical Care 3355 Earl Campbell Pkwy Tyler TX 81,000 Single Tenant 100.0 % Office 2016 8.6 0.8 % 48 Office Cigna (500 Great Circle Road) 500 Great Circle Road Nashville TN 72,200 Single Tenant 100.0 % Office 2012 4.3 0.7 % 49 Office Cigna (Express Scripts) 501 Ronda Court Pittsburgh PA 70,500 Single Tenant 100.0 % Office/Data Center 2015 2.3 0.7 % 50 Office AT&T (14500 NE 87th Street) 14500 NE 87th Street Seattle/Puget Sound WA 60,000 Single Tenant 100.0 % Office/Data Center 1995 4.4 0.6 % 51 Office AT&T (14520 NE 87th Street) 14520 NE 87th Street Seattle/Puget Sound WA 59,800 Single Tenant 100.0 % Office/Data Center 1995 4.4 0.6 % 52 Office Parallon 6451 126th Avenue North Tampa FL 83,200 Single Tenant 100.0 % Office 2013 2.0 0.6 % 53 Office Tech Data 19031 Ridgewood Parkway San Antonio TX 58,000 Single Tenant 100.0 % Office 2014 1.7 0.5 % 54 Office Rapiscan Systems 23 Frontage Road Boston MA 64,200 Single Tenant 100.0 % Office/Lab 2014 4.2 0.4 % 55 Office 136 & 204 Capcom 136 & 204 Capcom Avenue Raleigh/Durham NC 63,000 Multi Tenant 100.0 % Office/R&D 2010 2.8 0.2 % 56 Office AT&T (14560 NE 87th Street) 14560 NE 87th Street Seattle/Puget Sound WA 36,000 Single Tenant 100.0 % Office/Data Center 1995 4.4 0.4 % 57 Office 530 Great Circle Road 530 Great Circle Road Nashville TN 100,200 Single Tenant 100.0 % Office/Lab 2011 — 4 — % OFFICE TOTAL 6,184,400 99.9 % 8.2 $ 124,329 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures. Property List (continued) As of March 31, 2023
33 USD in thousands, except annualized base rent / SF metrics Segment Property / Tenant Name Address Property Market Property State Building Square Feet Tenancy Type % Leased2 Property Sub- Type Year Built/ Renovated1 Property WALT3 % of Total ABR3 58 Other Wyndham Hotels & Resorts 22 Sylvan Way Northern New Jersey NJ 249,400 Single Tenant 100.0 % Office 2009 6.4 3.4 % 59 Other Wood Group (Westgate II) 17320 Katy Freeway Houston TX 186,300 Single Tenant 100.0 % Office 2014 1.1 2.2 % 60 Other Schlumberger 1200 Enclave Parkway Houston TX 149,700 Single Tenant 98.3 % Office 1999 — 4 1.7 % 61 Other Level 3 (ParkRidge One) 10475 Park Meadows Drive Denver CO 166,700 Single Tenant 100.0 % Office 1999 — 4 1.6 % 62 Other Raytheon Technologies 2730 West Tyvola Road Charlotte NC 198,900 Single Tenant 100.0 % Office 1999 — 4 1.4 % 63 Other Hitachi Energy USA 500 West Highway 94 Jefferson City MO 660,000 Single Tenant 100.0 % Manufacturing 1972 1.4 1.3 % 64 Other Avnet (Chandler) 6700 West Morelos Place Phoenix AZ 231,500 Single Tenant 100.0 % Industrial/R&D 2008 — 4 1.3 % 65 Other Franklin Center 6841 Benjamin Franklin Drive Baltimore MD 202,500 Multi-Tenant 55.0 % Office 2008 3.4 1.3 % 66 Other KBR 345 Bob Heath Drive Huntsville AL 120,000 Single Tenant 100.0 % Office 2013 0.4 1.0 % 67 Other 30 Independence 30 Independence Boulevard Northern New Jersey NJ 207,300 Multi-Tenant 52.0 % Office 2020 8.2 0.3 % 68 Other Northrop Grumman 4065 Colonel Glenn Highway Cincinnati/Dayton OH 99,200 Single Tenant 100.0 % Office 2012 1.4 0.8 % 69 Other MGM Corporate Center (880 Grier Drive) 880 Grier Drive Las Vegas NV 81,000 Single Tenant 100.0 % Office 1988 1.4 0.6 % 70 Other Hitachi Astemo 9296 Intermodal North Court Columbus OH 304,600 Single Tenant 100.0 % Warehouse 2014 2.0 0.5 % 71 Other MGM Corporate Center (840 Grier Drive) 840 Grier Drive Las Vegas NV 60,500 Single Tenant 100.0 % Office 1997 1.4 0.4 % 72 Other Administrative Office of Pennsylvania Courts 5035 Ritter Road Harrisburg PA 56,600 Single Tenant 100.0 % Office/Data Center 1988 1.3 0.4 % 73 Other Owens Corning 4535 Enterprise Drive Northwest Charlotte NC 61,200 Single Tenant 100.0 % Manufacturing 1998 1.8 0.2 % 74 Other MGM Corporate Center (950 Grier Drive) 950 Grier Drive Las Vegas NV 26,800 Single Tenant 100.0 % Office 1989 1.4 0.1 % 75 Other Gold Pointe Corp Ctr Bldg C 11971 Foundation Place Sacramento CA 145,900 Single Tenant 3.0 % Office 2002 19.5 — % 76 Other Quebec Court II 5800 South Quebec Street Denver CO 157,300 Single Tenant — % Office 1980 — — % 77 Other Park Meadows Corporate Center II 10002 Park Meadows Drive Denver CO 70,300 Single Tenant — % Office 2000 — — % 78 Other Crosspoint 20022 North 31st Avenue Phoenix AZ 351,600 Multi-Tenant 8.0 % Office 2021 — 4 0.2 % OTHER TOTAL 3,787,300 76.6 % 2.9 $ 40,690 TOTAL CONSOLIDATED PORTFOLIO 18,973,500 95.3 % 6.9 $ 213,358 Property List (continued) As of March 31, 2023 (1) Year shown is either the year built or year substantially renovated. (2) Total calculated as a weighted average based on rentable square feet. (3) Total calculated as a weighted average based on ABR. (4) Lease restricts certain disclosures.
Portfolio Characteristics
35 1 Weighted average rental increase is based on the remaining term of each lease as of March 31, 2023. Excludes leases with remaining term less than one year. Lease Escalation Frequency % Annualized Base Rent Wtd. Avg. Annual Growth Rate 1 Annually 86.5% 2.1% Every 5 Years 10.8 0.6 Other Frequencies 1.1 6.5 No Escalations 1.6 — PORTFOLIO TOTAL / WEIGHTED AVERAGE 100.0% 1.9% Rent Growth As of March 31, 2023 Annually 85.6% Every 5 Years 11.2% Other Frequencies 1.3% No Escalations 1.9% Annually 93.1% No Escalations 6.9% Annually 92.0% Every 5 Years 8.0% Annually 82.3% Every 5 Years 15.9% Other Frequencies 1.8% Industrial Industrial and OfficeOffice Other Lease Escalations by Segment
36 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years) 1 Keurig Dr. Pepper BBB 5.4% 6.6 2 Wood Group3 HY44 4.8 6.4 3 Southern Company Services BBB+ 4.3 21.0 4 LPL Holdings Baa35 4.0 13.6 5 Amazon3 AA 4.0 8.3 6 Freeport McMoRan Baa25 3.7 4.1 7 Maxar Technologies B+ 3.5 7.3 8 RH HY24 3.4 7.4 9 Wyndham Hotels & Resorts BB- 3.4 6.4 10 McKesson BBB+ 2.8 5.5 Top 10 Total/Average Lease Term 39.3% 8.3 Investment Grade Calculation Based On:2 Tenant Profile Tenant 32.7 % Number of Tenants 73 Guarantor 9.5 Average Square Footage Leased per Tenant 247,601 Tenant/Guarantor 42.2 Average Annualized Base Rent per Sq Ft - Industrial $5.37 Non-Guarantor Parent 19.3 Average Annualized Base Rent per Sq Ft - Office $20.11 Total Investment Grade 61.5 % Average Annualized Base Rent per Sq Ft - Other $10.74 Weighted Average Lease Term (WALT) 6.9 Tenant Concentration: Consolidated As of March 31, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rent by tenant as compared to consolidated total. 3 Represents the combined base rental revenue for two properties leased to the tenant/major tenant. 4 Represents a rating issued by Bloomberg services. 5 Represents a rating issued by Moody's at http://www.moodys.com.
37 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years) 1 Keurig Dr. Pepper BBB 6.7% 6.6 2 Southern Company Services BBB+ 5.3 21.0 3 LPL Holdings Baa33 5.0 13.6 4 Amazon AA 4.9 8.3 5 Freeport McMoRan Baa23 4.6 4.1 6 Maxar Technologies B+ 4.4 7.3 7 RH HY24 4.3 7.4 8 McKesson BBB+ 3.5 5.5 9 Wyndham Hotels & Resorts BB- 3.3 6.4 10 Wood Group HY44 3.2 6.4 Top 10 Total/Average Lease Term 45.2% 9.1 Investment Grade Calculation Based On:2 Tenant Profile Tenant 34.5 % Number of Tenants 52 Guarantor 10.1 Average Square Footage Leased per Tenant 291,835 Tenant/Guarantor 44.6 Average Annualized Base Rent per Sq Ft: Industrial and Office $11.48 Non-Guarantor Parent 20.3 Weighted Average Lease Term (WALT) 7.8 Total Investment Grade 64.9 % Tenant Concentration: Industrial and Office As of March 31, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rent by tenant for industrial and office segments. 3 Represents a rating issued by Moody's at http://www.moodys.com. 4 Represents a rating issued by Bloomberg services.
38 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years) 1 Amazon AA 17.5% 8.3 2 RH HY23 15.2 7.4 3 3M Company A14 10.1 3.6 4 Samsonite Ba24 8.5 1.7 5 Shaw Industries AA 6.9 10.0 6 PepsiCo A+ 6.6 5.3 7 Amcor BBB 5.5 9.6 8 Huntington Ingalls BBB- 5.3 4.8 9 Pepsi Bottling Ventures, LLC A34 3.9 9.3 10 Roush Industries, Inc. NR5 3.4 5.7 Top 10 Total/Average Lease Term 82.9% 6.6 Investment Grade Calculation Based On:2 Tenant Profile Tenant 10.1 % Number of Tenants 17 Guarantor 20.3 Average Square Footage Leased per Tenant 529,518 Tenant/Guarantor 30.4 Average Annualized Base Rent per Sq Ft: Industrial $5.37 Non-Guarantor Parent 28.3 Weighted Average Lease Term (WALT) 6.8 Total Investment Grade 58.7 % Tenant Concentration: Industrial As of March 31, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rent by tenant for industrial segment. 3 Represents a rating issued by Bloomberg services. 4 Represents a rating issued by Moody's at http://www.moodys.com. 5 Indicates that the tenant is not rated by the major credit agencies used.
39 Top 10 Tenants Tenant/Major Tenant Rating1 % of Annualized Base Rent2 WALT (years) 1 Keurig Dr. Pepper BBB 9.3% 6.6 2 Southern Company Services BBB+ 7.4 21.0 3 LPL Baa3 3 6.9 13.6 4 Freeport McMoRan Baa2 3 6.3 4.1 5 Maxar Technologies B+ 6.1 7.3 6 McKesson BBB+ 4.9 5.5 7 Wyndham Hotels & Resorts BB- 4.6 6.4 8 Wood Group HY4 4 4.5 10.8 9 IGT BB+ 4.1 7.8 10 International Paper Company BBB 4.0 6.9 Top 10 Total/Average Lease Term 58.1% 9.4 Investment Grade Calculation Based On:2 Tenant Profile Tenant 43.9 % Number of Tenants 35 Guarantor 6.2 Average Square Footage Leased per Tenant 176,389 Tenant/Guarantor 50.1 Average Annualized Base Rent per Sq Ft: Office $20.11 Non-Guarantor Parent 17.2 Weighted Average Lease Term (WALT) 8.2 Total Investment Grade 67.3 % Tenant Concentration: Office As of March 31, 2023 1 Represents S&P ratings of tenants, guarantors, or non-guarantor parent entities, issued at http://www.spgglobal.com, unless otherwise noted. 2 Based on annualized base rent by tenant for office segment. 3 Represents a rating issued by Moody's at http://www.moodys.com. 4 Represents a rating issued by Bloomberg services.
40 Industry Concentration: Consolidated As of March 31, 2023,�2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 16.1 % 1 Aerospace & Defense 10.8 % 2 Consumer Services 10.0 2 Soft Drinks 7.8 3 Materials 9.3 3 Oil & Gas Equipment & Services 6.5 4 Food, Beverage & Tobacco 7.8 4 Hotels, Resorts & Cruise Lines 6.1 5 Energy 7.5 5 Renewable Electricity 4.3 6 Health Care Equipment & Services 6.5 6 Health Care Services 4.3 7 Commercial & Professional Services 5.8 7 Investment Banking & Brokerage 4.0 8 Utilities 5.3 8 Internet & Direct Marketing Retail 4.0 9 Retailing 4.5 9 Copper 3.7 10 Telecommunication Services 4.3 10 Paper Packaging 3.6 � Top 10 total 77.1 % 11 Casinos & Gaming 3.5 All others 22.9 % 12 Commercial & Professional Services 3.5 � � � 13 Homefurnishing Retail 3.4 14 Technology Distributors 2.8 � � � 15 Integrated Telecommunication Services 2.8 16 Industrial Conglomerates 2.3 � � � 17 IT Consulting & Other Services 2.2 18 Apparel, Accessories & Luxury Goods 1.9 � � � 19 Semiconductors 1.6 20 Alternative Carriers 1.6 � � � � Top 20 total 80.7 % All others 19.3 % 1 Based on annualized base rent for wholly-owned portfolio.
41 Industry Concentration: Industrial and Office As of March 31, 2023,�2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 14.9 % 1 Aerospace & Defense 10.6 % 2 Materials 11.5 2 Soft Drinks 9.6 3 Food, Beverage & Tobacco 9.6 3 Renewable Electricity 5.3 4 Health Care Equipment & Services 8.1 4 Health Care Services 5.3 5 Utilities 6.5 5 Investment Banking & Brokerage 5.0 6 Consumer Services 6.3 6 Internet & Direct Marketing Retail 4.9 7 Commercial & Professional Services 5.6 7 Copper 4.6 8 Retailing 5.5 8 Paper Packaging 4.5 9 Diversified Financials 5.0 9 Commercial & Professional Services 4.3 10 E-Commerce 4.9 10 Homefurnishing Retail 4.3 � Top 10 total 77.9 % 11 Integrated Telecommunication Services 3.4 All others 22.1 % 12 Hotels, Resorts & Cruise Lines 3.3 � � � 13 Oil & Gas Equipment & Services 3.2 14 Casinos & Gaming 3.0 � � � 15 Industrial Conglomerates 2.8 16 Apparel, Accessories & Luxury Goods 2.4 � � � 17 Textiles 1.9 18 Semiconductors 1.9 � � � 19 Technology Distributors 1.8 20 Pharmaceuticals 1.8 � � � � Top 20 total 83.9 % All others 16.1 % 1 Based on annualized base rent for the industrial and office segments.
42 Industry Concentration: Industrial As of March 31, 20232021 Top 8 Industries Top 14 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Capital Goods 22.8 % 1 Internet & Direct Marketing 17.5 % 2 E-Commerce 17.5 2 Homefurnishing Retail 15.2 3 Consumer Durables & Apparel 15.4 3 Soft Drinks 10.6 4 Retailing 15.2 4 Industrial Conglomerates 10.1 5 Food, Beverage & Tobacco 10.6 5 Apparel, Accessories & Luxury Goods 8.5 6 Materials 8.5 6 Aerospace & Defense 7.6 7 Automobiles & Components 5.5 7 Textiles 6.9 8 Commercial & Professional Services 4.5 8 Paper Packaging 5.5 � Top 8 total 100.0 % 9 Diversified Support Services 4.5 All others — % 10 Auto Components 3.4 � � � 11 Metal & Glass Containers 3.0 12 Industrial Machinery 2.8 � � � 13 Construction Machinery & Heavy Trucks 2.3 14 Auto Parts & Equipment 2.1 Top 14 total 100.0 % � � � All others — % 1 Based on annualized base rent for industrial segment.
43 Industry Concentration: Office As of March 31, 2023 2021 Top 10 Industries Top 20 Sub-Industries Industry % of Annualized Base Rent1 Sub-Industry % of Annualized Base Rent1 1 Materials 12.7 % 1 Aerospace & Defense 11.8 % 2 Capital Goods 11.8 2 Soft Drinks 9.3 3 Health Care Equipment & Services 11.2 3 Renewable Electricity 7.4 4 Food, Beverage & Tobacco 9.3 4 Health Care Services 7.4 5 Utilities 9.1 5 Investment Banking & Brokerage 6.9 6 Consumer Services 8.7 6 Copper 6.3 7 Diversified Financials 7.0 7 Commercial & Professional Services 5.9 8 Energy 6.3 8 Integrated Telecommunication Services 4.7 9 Commercial & Professional Services 5.9 9 Hotels, Resorts & Cruise Lines 4.6 10 Telecommunication Services 4.7 10 Oil & Gas Equipment & Services 4.5 Top 10 total 86.7 % 11 Casinos & Gaming 4.1 All others 13.3 % 12 Paper Packaging 4.0 13 Semiconductors 2.7 14 Technology Distributors 2.6 15 Pharmaceuticals 2.5 16 Fertilizers & Agricultural Chemicals 2.4 17 Technology Hardware, Storage & Peripherals 2.1 18 Oil & Gas Exploration & Production 1.9 19 Home Improvement Retail 1.8 20 Electric Utilities 1.6 � � Top 20 total 94.5 % All others 5.5 % 1 Based on annualized base rent for office segment.
44 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Consolidated As of March 31, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 22,144 10.4 % 2 Northern New Jersey 19,210 9.0 3 Boston 16,834 7.9 4 Denver 13,912 6.5 5 Houston 13,779 6.5 6 Charlotte 12,047 5.6 7 Birmingham 9,224 4.3 8 Chicago 8,719 4.1 9 Columbus 8,729 4.1 10 Las Vegas 7,538 3.5 Top 10 total $ 132,136 61.9 % 10.4% 9.0% 8.6% 7.9% 7.6% 6.7% 6.1% 5.3% 4.5% 4.2% 29.7% Arizona New Jersey Texas Massachusetts Colorado California Ohio Alabama South Carolina North Carolina All Others 1 Based on annualized base rent for wholly-owned portfolio.
45 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Industrial and Office As of March 31, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 19,420 11.2 % 2 Boston 16,834 9.7 3 Denver 10,523 6.1 4 Northern New Jersey 9,933 5.8 5 Birmingham 9,224 5.3 6 Chicago 8,719 5.0 7 Charlotte 8,552 5.0 8 Columbus 7,557 4.4 9 Stockton/Modesto 7,340 4.3 10 San Diego 6,909 4.0 Top 10 total $ 105,011 60.8 % 11.2% 9.7% 8.3% 7.4% 5.9% 5.9% 5.8% 5.6% 5.3% 5.0% 29.8% Arizona Massachusetts California Colorado Ohio Texas New Jersey South Carolina Alabama Illinois All Others 1 Based on annualized base rent for the industrial and office segments.
46 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Industrial As of March 31, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Chicago $ 8,719 18.0 % 2 Columbus 7,557 15.6 3 Stockton/Modesto 7,340 15.2 4 Jacksonville 4,094 8.5 5 Savannah 3,335 6.9 6 Tampa 3,214 6.6 7 Detroit 3,023 6.3 8 Cleveland 2,662 5.5 9 Hampton Roads 2,564 5.3 10 Winston-Salem 1,893 3.9 Top 10 total $ 44,401 91.8 % 21.1% 18.0% 15.2% 15.1% 6.9% 6.3% 5.3% 3.9% 2.3% 2.3% 3.6% Ohio Illinois California Florida Georgia Michigan Virginia North Carolina South Carolina New Jersey All Others 1 Based on annualized base rent for industrial segment.
47 Geographic Distribution (% of Annualized Base Rent1) Market Concentration: Office As of March 31, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Phoenix $ 19,420 15.6 % 2 Boston 16,834 13.5 3 Denver 10,523 8.5 4 Birmingham 9,224 7.4 5 Northern New Jersey 8,842 7.1 6 Charlotte 8,552 6.9 7 San Diego 6,909 5.6 8 Houston 5,544 4.5 9 Las Vegas 5,121 4.1 10 Memphis 5,030 4.0 Top 10 total $ 95,999 77.2 % 15.6% 13.5% 10.3% 8.2% 7.4% 7.1% 6.9% 5.6% 5.2% 4.1% 16.1% Arizona Massachusetts Colorado Texas Alabama New Jersey South Carolina California Tennessee Nevada All Others 1 Based on annualized base rent for office segment.
48 Lease Expirations: Consolidated As of March 31, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) 1 Based on annualized base rent for wholly-owned portfolio. 2 Excludes approximately 2K of SF related to cafes. $4,422 $24,296 $9,254 $12,723 $14,179 $19,275 $34,020 $25,932 $19,494 $49,763 2023 2024 2025 2026 2027 2028 2029 2030 2031 >2032 Expiring Leases Year Industrial Office Other Total Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — 1 1 2 180,000 $ 4,422 2.1 % 2024 1 1 9 11 2,357,400 24,296 11.4 2025 1 4 3 8 871,900 9,254 4.3 2026 1 2 1 4 1,449,100 12,723 6.0 2027 — 7 — 7 570,700 14,179 6.6 2028 5 3 5 13 2,152,100 19,275 9.0 2029 1 6 1 8 1,565,800 34,020 15.9 2030 1 3 3 7 2,385,100 25,932 12.2 2031 2 4 — 6 1,588,900 19,494 9.1 2032 2 4 — 6 1,519,600 12,923 6.1 >2032 5 7 1 13 3,427,700 36,840 17.3 Vacant — — — — 893,600 — — Totals 19 42 24 85 18,961,900 2 $ 213,358 100.0 %
49 Lease Expirations: Industrial and Office As of March 31, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $2,312 $5,076 $4,587 $10,031 $14,179 $16,262 $26,755 $24,502 $19,494 $12,923 $36,547 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Industrial Office Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — 1 60,000 $ 2,312 1.3 % 2024 1 1 875,700 5,076 2.9 2025 1 4 307,200 4,587 2.7 2026 1 2 1,338,800 10,031 5.8 2027 — 7 570,700 14,179 8.2 2028 5 3 1,876,800 16,262 9.4 2029 1 6 1,316,400 26,755 15.5 2030 1 3 2,311,700 24,502 14.2 2031 2 4 1,588,900 19,494 11.3 2032 2 4 1,519,600 12,923 7.5 >2032 5 7 3,409,600 36,547 21.2 Vacant — — 9,004 — — Totals 19 42 15,184,404 $ 172,668 100.0 % 1 Based on annualized base rent for the industrial and office segments.
50 Lease Expirations: Industrial As of March 31, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $— $4,094 $1,358 $4,902 $— $8,534 $1,482 $7,340 $8,451 $4,555 $7,623 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 — — $ — — % 2024 1 817,700 4,094 8.5 2025 1 120,000 1,358 2.8 2026 1 978,100 4,902 10.1 2027 — — — — 2028 5 1,404,400 8,534 17.7 2029 1 312,000 1,482 3.1 2030 1 1,501,400 7,340 15.2 2031 2 1,039,200 8,451 17.5 2032 2 1,113,000 4,555 9.4 >2032 5 1,716,000 7,623 15.7 Vacant — — — — Totals 19 9,001,800 $ 48,339 100.0 % 1 Based on annualized base rent for industrial segment.
51 Lease Expirations: Office As of March 31, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent) $2,312 $982 $3,229 $5,129 $14,179 $7,728 $25,273 $17,162 $11,043 $8,368 $28,924 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Leases Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 1 60,000 $ 2,312 1.9 % 2024 1 58,000 982 0.8 2025 4 187,200 3,229 2.6 2026 2 360,700 5,129 4.1 2027 7 570,700 14,179 11.4 2028 3 472,400 7,728 6.2 2029 6 1,004,400 25,273 20.3 2030 3 810,300 17,162 13.8 2031 4 549,700 11,043 8.9 2032 4 406,600 8,368 6.7 >2032 7 1,693,600 28,924 23.3 Vacant — 9,004 — — Totals 42 6,182,604 $ 124,329 100.0 % 1 Based on annualized base rent for office segment.
52 Lease Expirations: Other As of March 31, 2023 (USD in thousands) Lease Maturity Schedule (by Annualized Base Rent1) $2,110 $19,220 $4,667 $2,692 $— $3,013 $7,265 $1,430 $— $— $293 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 >2032 Expiring Leases Year Total Approx. Square Feet Annualized Base Rent % of Annualized Base Rent1 Remaining 2023 1 120,000 $ 2,110 5.2 % 2024 9 1,481,700 19,220 47.2 2025 3 564,700 4,667 11.5 2026 1 110,300 2,692 6.6 2027 — — — — 2028 5 275,300 3,013 7.4 2029 1 249,400 7,265 17.9 2030 3 73,400 1,430 3.5 2031 — — — — 2032 — — — — >2032 1 18,100 293 0.6 Vacant — 884,612 — — Totals 24 3,777,512 $ 40,690 100.0 % 1 Based on annualized base rent by expiring leases for other segment.
53 Geographic Distribution (% of Annualized Base Rent1) Market Concentrations: Other As of March 31, 2023 (USD in thousands) Top 10 Markets (% of Annualized Base Rent) Markets Annualized Base Rent % of Annualized Base Rent1 1 Northern New Jersey $ 9,277 22.8 % 2 Houston 8,235 20.2 3 Charlotte 3,495 8.6 4 Denver 3,389 8.3 5 Jefferson City 2,798 6.9 6 Phoenix 2,724 6.7 7 Baltimore 2,692 6.6 8 Las Vegas 2,417 5.9 9 Huntsville 2,110 5.2 10 Cincinnati/Dayton 1,632 4.0 Top 10 total $ 38,769 95.2 % 22.8% 20.2% 8.6% 8.3% 6.9% 6.9% 6.7% 6.6% 5.9% 5.2% 1.8% New Jersey Texas North Carolina Colorado Ohio Missouri Arizona Maryland Nevada Alabama All Others 1 Based on annualized base rent for other segment.
Notes & Definitions
55 Notes & Definitions ABR (Annualized Base Rent) “Annualized base rent” or “ABR” means the contractual base rent excluding abatement periods and deducting base year operating expenses for gross and modified gross leases as of March 31, 2023, unless otherwise specified, multiplied by 12 months. For properties in the Company's portfolio that had rent abatement periods as of March 31, 2023, we used the monthly contractual base rent payable following expiration of the abatement. Adjusted EBITDA Adjusted EBITDA means an amount, as defined in the Company's Credit Facility, derived from (a) net income before (b) interest, taxes, depreciation and amortization (EBITDA), plus (c) acquisition fees and expenses, (d) asset and property management fees, (e) straight-line rents and in-place lease amortization for the period, further adjusted for (f) acquisitions that have closed during the period, (g) certain reserves for capital expenditures, and (h) excluding activity relating to any partnership to the extent we are not a general partner and to the extent we are not liable for the associated indebtedness. We use Adjusted EBITDA, EBITDA and EBITDAre as non-GAAP supplemental performance measures to evaluate the operating performance of the Company. We believe these measures are helpful to investors because they are direct measures of the actual operating results of our properties. However, because Adjusted EBITDA, EBITDA and EBITDAre are calculated before recurring cash charges including interest expense and income taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our liquidity is limited. Accordingly, Adjusted EBITDA, EBITDA and EBITDAre should not be considered alternatives to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. Average Annual Rent Escalations Represents weighted average rental increase is based on the remaining term of each lease, excluding leases that expire within one year. EBITDA Earnings before interest, tax, depreciation and amortization. EBITDAre The National Association of Real Estate Investment Trusts ("NAREIT") has defined EBITDAre as follows: (a) GAAP Net Income plus (b) interest expense plus (c) income tax expense plus (d) depreciation and amortization plus/minus (e) losses and gains on the disposition of depreciated property, including losses/gains on change of control plus (f) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate. Adjustments to reflect the entity's share of EBITDAre of consolidated affiliates. Economic Occupancy Leases effective as of the reporting date. Fixed Charge Coverage Adjusted EBITDA annualized divided by sum of principal paid and due, interest expense, and cash dividends on preferred shares.
56 Notes & Definitions (continued) Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") FFO and AFFO are non-GAAP financial measures that we believe are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs. We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is defined as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable real estate assets, adding back impairment write-downs of depreciable real estate assets, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships, joint ventures and preferred distributions. Because FFO calculations exclude such items as depreciation and amortization of depreciable real estate assets and gains and losses from sales of depreciable real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), they facilitate comparisons of operating performance between periods and between other REITs. As a result, the Company believes that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of the Company's performance relative to its competitors and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. It should be noted, however, that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than the Company does, making comparisons less meaningful. Additionally, the Company uses AFFO as a non-GAAP financial measure to evaluate the Company's operating performance. AFFO excludes non-routine and certain non- cash items such as revenues in excess of cash received, amortization of share-based compensation net, deferred rent, amortization of in-place lease valuation, acquisition-related costs, financed termination fee, net of payments received, gain or loss from the extinguishment of debt, unrealized gains (losses) on derivative instruments, write-off transaction costs and other one-time transactions. FFO and AFFO have been revised to include amounts available to both common shareholders and limited partners for all periods presented. AFFO is a measure used among the Company's peer group. The Company also believes that AFFO is a recognized measure of sustainable operating performance by the REIT industry. Further, the Company believes AFFO is useful in comparing the sustainability of its operating performance with the sustainability of the operating performance of other real estate companies.
57 Notes & Definitions (continued) FFO and AFFO - cont. Management believes that AFFO is a beneficial indicator of its ongoing portfolio performance and ability to sustain its current distribution level. More specifically, AFFO isolates the financial results of the Company's operations. AFFO, however, is not considered an appropriate measure of historical earnings as it excludes certain significant costs that are otherwise included in reported earnings. Further, since the measure is based on historical financial information, AFFO for the period presented may not be indicative of future results or the Company's future ability to make or sustain distributions. By providing FFO and AFFO, the Company presents information that assists investors in aligning their analysis with management’s analysis of long-term operating activities. For all of these reasons, the Company believes the non-GAAP measures of FFO and AFFO, in addition to net income (loss) are helpful supplemental performance measures and useful to investors in evaluating the performance of the Company's real estate portfolio. However, a material limitation associated with FFO and AFFO is that they are not indicative of the Company's cash available to fund distributions since other uses of cash, such as capital expenditures at the Company's properties and principal payments of debt, are not deducted when calculating FFO and AFFO. The use of AFFO as a measure of long-term operating performance on value is also limited if the Company does not continue to operate under its current business plan as noted above. FFO and AFFO should not be viewed as a more prominent measure of performance than net income (loss) and each should be reviewed in connection with GAAP measurements. Neither the SEC, NAREIT, nor any other applicable regulatory body has opined on the acceptability of the adjustments contemplated to adjust FFO in order to calculate AFFO and its use as a non-GAAP performance measure. In the future, NAREIT may decide to standardize the allowable exclusions across the REIT industry, and the Company may have to adjust the calculation and characterization of this non-GAAP measure. Investment Grade Investment grade rating means an investment grade credit rating from a NRSRO approved by the U.S. Securities and Exchange Commission (e.g., Moody’s Investors Service, Inc., S&P Global Ratings and/or Fitch Ratings Inc.) or a non-NRSRO credit rating (e.g., Bloomberg’s default risk rating) that management believes is generally equivalent to an NRSRO investment grade rating; management can provide no assurance as to the comparability of these ratings methodologies or that any particular rating for a company is indicative of the rating that a single NRSRO would provide in the event that it rated all companies for which the Company provides credit ratings; to the extent such companies are rated only by non-NRSRO ratings providers, such ratings providers may use methodologies that are different and less rigorous than those applied by NRSROs; moreover, because PKST provides credit ratings for some companies that are non-guarantor parents of Company's tenants, such credit ratings may not be indicative of the creditworthiness of such tenants. Net Debt Total consolidated debt less cash and cash equivalents (excluding restricted cash). Net Debt (pro rata share) Total consolidated debt plus unconsolidated debt (pro rata share), less cash and cash equivalents (excluding restricted cash).
58 Notes & Definitions (continued) Net Operating Income (NOI), Cash NOI, and Same Store Cash NOI NOI is a non-GAAP measure which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as total revenue from real estate operations less property expenses, which includes operating property expenses, property tax expenses and management fees. Net operating income on a cash basis (“Cash NOI”) is net operating income adjusted to exclude the effect of straight-line rent and amortization of acquired above- and below- market lease intangibles adjustments required by GAAP. Net operating income on a cash basis for our Same Store portfolio (“Same Store Cash NOI”) is Cash NOI for properties held for the entirety of all periods presented. We believe that NOI, Cash NOI and Same-Store Cash NOI are helpful to investors as additional measures of operating performance because we believe they help both investors and management to understand the core operations of our properties excluding corporate and financing-related costs and non-cash depreciation and amortization. NOI, Cash NOI and Same Store Cash NOI are unlevered operating performance metrics of our properties and allow for a useful comparison of the operating performance of individual assets or groups of assets. These measures thereby provide an operating perspective not immediately apparent from GAAP income from operations or net income. In addition, NOI, Cash NOI and Same Store Cash NOI are considered by many in the real estate industry to be useful starting points for determining the value of a real estate asset or group of assets. The table below represents a reconciliation of NOI to Cash NOI for the interim periods presented in the "Selected Financial Data" on page 9. For the Quarter Ended 12/31/2022 9/30/2022 6/30/2022 (Unaudited, USD in thousands) Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Industrial Office Other Total Portfolio Revenue $ 15,945 $ 45,643 $ 14,305 $ 75,893 $ 15,095 $ 72,128 $ 14,107 $ 101,330 $ 14,807 $ 93,494 $ 14,772 $ 123,073 Operating Property Expense (1,083) (5,071) (3,203) (9,357) (638) (10,301) (2,777) (13,716) (602) (11,377) (2,356) (14,335) Property Tax Expense (1,235) (2,940) (1,890) (6,065) (1,005) (6,906) (1,826) (9,737) (1,031) (8,578) (1,873) (11,482) Management Fees (Non-Affiliate) (63) (312) (214) (589) (63) (547) (213) (823) (63) (746) (236) (1,045) TOTAL NOI 13,564 37,320 8,998 59,882 13,389 54,374 9,291 77,054 13,111 72,793 10,307 96,211 NON-CASH ADJUSTMENTS: Straight Line Rent (135) (4,784) 264 (4,655) (456) (2,239) (68) (2,763) (211) (2,666) 245 (2,632) In-Place Lease Amortization (93) (702) (128) (923) (87) (220) (129) (436) (102) (213) (117) (432) Deferred Termination Income (36) — (508) (544) — — (758) (758) — — (758) (758) Deferred Ground Lease — 433 — 433 — 490 — 490 — 510 1 511 Other Intangible Amortization — 377 — 377 — 377 — 377 — 372 — 372 Inducement Amortization — 79 — 79 — — — — — 107 — 107 TOTAL CASH NOI $ 13,300 $ 32,723 $ 8,626 $ 54,649 $ 12,846 $ 52,782 $ 8,336 $ 73,964 $ 12,798 $ 70,903 $ 9,678 $ 93,379
59 Notes & Definitions Normalized EBITDAre We use Normalized EBITDAre as a non-GAAP supplemental performance measure to evaluate the operating performance of the Company. Normalized EBITDAre, as defined by the Company, represents EBITDAre (as defined by NAREIT), modified to exclude nonroutine items such as acquisition-related expenses, employee separation expenses and other non-routine costs. Normalized EBITDAre also omits the Normalized EBITDAre impact of properties sold during the period and extrapolate the operations of acquired properties to estimate a full quarter of ownership. We may also exclude the annualizing of other large transaction items such as termination income recognized during the quarter. Management believes these adjustments to reconcile to Normalized EBITDAre provides investors with supplemental performance information that is consistent with the performance models and analysis used by management, and provides investors a view of the performance of our portfolio over time. Therefore, Normalized EBITDAre should not be considered as an alternative to net income, as computed in accordance with GAAP. Normalized EBITDAre may not be comparable to similarly titled measures of other companies. Normalized EBITDAre (Consolidated) Normalized EBITDAre (Consolidated) represents Normalized EBITDAre adjusted to exclude items related to any unconsolidated entities. We calculated Normalized EBITDAre (Consolidated) as follows: For the Quarter Ended (Unaudited, USD in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Normalized EBITDAre $ 58,383 $ 57,924 $ 64,350 $ 86,861 $ 80,230 Adjustment for unconsolidated joint venture (15,452) (12,791) — — — Normalized EBITDAre (Consolidated) $ 42,931 $ 45,133 $ 64,350 $ 86,861 $ 80,230
60 Notes & Definitions (continued) Operating Margin NOI/Revenue. Per Share Per share data represents basic and diluted shares and reflects the impact of the Company's one-for-nine reverse share split. Pro Rata Pro rata represents the Company's share of the unconsolidated joint venture. Same Store Same store portfolio includes properties which were held for a full period compared to the same period in the prior year. Unencumbered Assets Unencumbered Assets are properties not secured by a mortgage debt or included in the Revolver's borrowing base calculation. WALT Weighted average lease term (in years). This is the average remaining lease term for all leases combined, weighted based on Annualized Base Rent.
61 Disclaimer Disclaimer on Forward-Looking Statements This document contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The forward-looking statements contained in this document reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: general economic and financial conditions; market volatility; inflation; any potential recession or threat of recession; interest rates; the impact of the work-from-home trends; recent and ongoing disruption in the debt and banking markets; occupancy, rent deferrals and the financial condition of the Company’s tenants; whether easing of the pandemic, work-from-home trends or other factors will impact the attractiveness of industrial and/or office assets; whether we will be successful in renewing leases as they expire; future financial and operating results, plans, objectives, expectations and intentions; expected sources of financing and the availability and attractiveness of the terms of any such financing; legislative and regulatory changes that could adversely affect our business; our future capital expenditures, operating expenses, net income, operating income, cash flow and developments and trends of the real estate industry; whether the Listing will maximize shareholder value; whether we will be successful in the pursuit of our business plan, including any dispositions; whether we will succeed in our investment objectives; any relationship between the trading price of our common shares and our previously published net asset value; any fluctuation and/or volatility of the trading price of our common shares; risks associated with our dependence on key personnel whose continued service is not guaranteed; risks related to the disruption of management’s attention from ongoing business operations due to pursuit of requirements related to being a listed company; and other factors, including those risks disclosed in Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s most recent Annual Report on Form 10-K and Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. The Company cautions investors not to place undue reliance on these forward-looking statements and urges you to carefully review the disclosures it makes concerning risks. While forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. The forward-looking statements speak only as of the date of this document. Furthermore, the Company disclaims any obligation to publicly update or revise any forward- looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.